Marketing of Tiffany

Powerful Essays
EXECUTIVE SUMMARY

The luxury goods industry quickly rebounded following the United States economic downturn in 2001, partly due to the increasing trend of middle-income American consumers demanding luxury at every level. Within the luxury industry, the jewelry sector is largest with global retail sales amounting to $150 billion.

Tiffany & Co. (“Tiffany”) currently holds the leading position within the jewelry industry with a 19 percent share of the $50,000-plus jewelry industry. Tiffany recognized the growing number of consumers demanding luxury at mid-level prices and decided to use this trend to its advantage by appealing to these middle-income Americans. Tiffany did this by adding less expensive items to its collection, including more sterling silver, which appeals to younger women as some items retail for as low as $100.

With 2002 revenues of almost $190 million, analysts believe Tiffany’s earnings will continue to increase through future store expansion, which management hopes to increase by 5 percent annually. This would total 173 worldwide stores by the end of 2007.

Upon realizing the strength of its brand and the image its blue box portrays, Tiffany also plans to continue launching new product lines, taking advantage of the growing popularity of branding among jewelry consumers today.

However, with all of Tiffany’s current success, some analysts worry that the company may dilute its luxury brand image with its attempts to make the blue box accessible to the lower end. Tiffany, therefore, must focus on assuring its affluent customers that the quality of its products and service has not lessened even though its brand has become more affordable.

This research proposal discusses the fine jewelry sector within the luxury goods industry, focusing on Tiffany & Co.’s (“Tiffany”) position among its high-class competitors and fine jewelry consumers. The paper begins with an overview of the luxury goods industry and current trends within

You May Also Find These Documents Helpful

  • Better Essays

    Shauna Brown Marketing Project – Part Two Principals of Marketing Dr. Sarah Williams, Instructor October 28, 2011 How the Economic Environment Impacts Tiffany & CO Economic environment consists of the totality of economic factors, such as employment, income, inflation, interest rates, productivity, and wealth that influence the buying behavior of consumers and institutions (businessdictionary, 2011). Tiffany & Co contributes to the economic growth of the community around them by opening…

    • 1368 Words
    • 6 Pages
    Better Essays
  • Good Essays

    Tiffany & Co Marketing Plan

    • 5305 Words
    • 22 Pages

    MARKETING PLAN I. Executive summary………………………………………………………………………3 A. History of Tiffany & Co……………………………………………………………....3 II. Current marketing situation ………………………………………………………………7 A. Market overview……………………………………………………………………..7 i. Market demographics and needs…………………………………………….6 ii. Market trends and target market growth…………………………………….10 B. SWOT analysis………………………………………………………………………11 i. Strengths ………………………………………………………………………

    • 5305 Words
    • 22 Pages
    Good Essays
  • Best Essays

    Tiffany

    • 2904 Words
    • 10 Pages

    Developing Luxury Brands Nikita Richards Serena Gossain March 13th 2015 Kamilla Ismailova S00806778 Summary The report examines the brand identity of Tiffany & Co in order to comprehend the underlying reason behind the global success of the company. In order to main this position the Tiffany has decided develop a new product range along with the openings of three new stores in an attempt to preserve the global position of the brand. This report draws attention to the…

    • 2904 Words
    • 10 Pages
    Best Essays
  • Powerful Essays

    Tiffany case

    • 1391 Words
    • 6 Pages

    Tiffany & Co. is a world famous retailer, designer, manufacturer, and distributor of luxury fine jewelry. It was founded in New York City in 1837 by Charles Lewis Tiffany and John Young. In 1979, the company sold to Avon Cosmetics who change the market strategy form luxury jewelry to less expensive items in next few year. Until 1984, the company sold to a group of investors, it had reinstate the exclusivity and luxury again. Now, it has been growing to one of the top luxury goods and jewelry retailers…

    • 1391 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    tiffany

    • 1776 Words
    • 12 Pages

    Tiffany & Co. Transaction and Economic Exposure Tiffany & Co. Facing Exchange Rate Risks SI S Following Tiffany & Co. Japan’s new retailing agreement with Mitsukoshi Ltd. in July 1993, TiffanyJapan was now faced with both new opportunities and risks. With greater control over retail sales in its Japanese operations, Tiffany looked forward to long-run improvement in its performance in Japan despite continuing weak local economic conditions. However, Tiffany was now also faced with…

    • 1776 Words
    • 12 Pages
    Good Essays
  • Good Essays

    Tiffany and Co

    • 1326 Words
    • 4 Pages

    1837 Charles Lewis Tiffany and John F. Young opened Tiffany & Young, with $1,000 in backing from Tiffany's father. This store was located on Broadway and was opposite of Manhattan's City Hall Park. The first store sold stationery and a variety of "fancy goods," including costume jewelry. Unlike other stores of the time, Tiffany featured plainly marked prices that were strictly enforced to, sparing the customer the usual practice of haggling with the owner or sales man. Tiffany also departed from…

    • 1326 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Tiffany & Co.

    • 2492 Words
    • 10 Pages

    TIFFANY & CO. ® Introduction Tiffany & Co. is a leading US luxury jewelry company. For more than 150 years, Tiffany & Co. have been designing exquisite jewelry that highlights the incomparable beauty of diamonds. The designations TIFFANY ® and TIFFANY & CO. ® are the principal trademarks of Tiffany, as well as serving as trade names. Through its subsidiaries, the Company has obtained and is the proprietor of trademark registrations for TIFFANY ® and TIFFANY & CO. ®, as well as the TIFFANY BLUE…

    • 2492 Words
    • 10 Pages
    Powerful Essays
  • Good Essays

    Tiffany & Co

    • 974 Words
    • 4 Pages

    I. EXTERNAL ENVIRONMENT A. Societal Environment 1. Economy • Low-negative growth in economy/financial markets (T) • Reduced discretionary spending on goods that are, or are perceived to be, luxuries (T) • Unsettled regional/global conflicts e.g. military and/or terrorist activities (T) • Weak economic conditions in Japan (T) • Global competition (T) • Wholesale market for high quality cut diamonds will provide continuity of supply and pricing (O) • Soft employment market (T)…

    • 974 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Tiffany Case

    • 632 Words
    • 2 Pages

    Tiffany & Co Case Study Background Tiffany & Co. was founded in 1837 in New York City by Charles Lewis Tiffany and John B. Young. After decades of development, the company has grown to an internationally famous designer and retailer of fine jewelry, diamonds, timepieces and other luxury accessories. In July 1993, Tiffany made a decision to directly operate sales in Japan, rather than profiting from medium corporation Mitsukoshi. According to this decision, Tiffany will pay Mitsukoshi 27% of net…

    • 632 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    tiffany&co

    • 549 Words
    • 2 Pages

    Tiffany http://www.bdc.ca/Resources%20Manager/study_2013/consumer_trends_BDC_report.pdf http://www.sbctc.ctc.edu/docs/education/workforce/environmental_scanning_trend_doc.pdf http://prezi.com/aneu_hnhouba/copy-of-copy-of-tiffany-and-co-product-presentation-the-glamazons/ http://investor.tiffany.com/overview.cfm http://investor.tiffany.com/overview.cfm http://wenku.baidu.com/link?url=wlVOIXzaSB9Q1IMEXFiySIW5RAPYvXHJQg8lnr9R44zgLgFkSZLeTtxZA3Y33qWaUBdeZSniV53Gx5wN4H4y6GVhjBy1A1VLSm9bDm66U63…

    • 549 Words
    • 2 Pages
    Satisfactory Essays