1. No category

Tiffany & Co.
By: Brandie Wong, Tawny Brodie,
Bri Castro, & Margaret Rissman
1
About Tiffany & Co.
Tiffany & Co. was founded by Charles Lewis Tiffany and Teddy Young in New York in 1837. The store
initially sold stationary and fancy goods. It was known as Tiffany, Young and Ellis in lower Manhattan. In 1845,
Tiffany, Young and Ellis began selling “real” jewelry. The name changed to Tiffany & Co. in 1853 when Charles
Tiffany took control. Charles Tiffany bought one of the largest and fanciest yellow diamond followed by the
purchase of the French Crown Jewels. By doing so he established his shop for America’s source for ultimate
luxuries and was known as “ The King of Diamonds”. Tiffany acquired customers that were and are unique and
unexpected such as magnates, socialites, heads of state, celebrities, the affluent, seek out collectibles and turn
to Tiffany. Since 1860, Tiffany trophies have been at the center of American sports as well as championship
rings honoring the highest achievements in sports. Athletes have been competing for this honor over 100 years.
In 1867, Tiffany first achieved international recognition at the Paris Exposition Universelle. Tiffany & Co. added
china, silverware, timepieces, and other luxury goods during the 1940’s. In the late 1980’s, Tiffany ventured into
the fragrance business. Tiffany for Women and Tiffany for Men. Tiffany & Co. has managed to cement their
position through out history as the leading competitor in the jewelry industry and creating a luxury brand that
is timeless and exudes superior quality, craftsmanship, exclusivity, and worth.
Tiffany & Co. Image
•
•
•
•
•
Female ages 28-54
Educated
Affluent
Upper upper class to upper middle class
High net worth
•
•
•
Strong interest in fashion, shopping and
luxury products
Technically savvy
Urban
2
PROMOTION ACTIVITIES
Spring 2012
Advertisements:
Tiffany provides many advertisements to their
consumers including billboards, magazine advertisements,
and internet advertisements. They are consistently
releasing advertisements for new collections and new
products such as house ware and fragrances. Tiffany does
collections for Fall, Winter, Spring/Summer and for each
season something new is out for them to advertise.
Typically, they advertise new collections like the
collections shown on the slide.
This year, Tiffany’s advertisements were both on
engagement rings and house ware. The main
advertisement was on engagement rings. For the fall
season Tiffany’s usually uses warm colors for their
advertisements and this year was no different. The
company is very traditional and uses repetition for their
advertisements. A good example of repetition is their
winter season advertisements. Every year consumers see
the new holiday collection and a corresponding
advertisement. Spring is habitually different then the
other seasons because it is combined with summer.
Tiffany’s always focuses on one of the seasons and this
year it was spring. This spring season the company
focused on a classic spring wedding, using bright colors
and having the models give the impression of having fun.
Fall 2011
Winter 2011
3
http://www.youtube.com/user/OfficialTiffanyAndCo#p/c/92DD5FB78BCC2BC8/4/T4jBlJV9SzU
PROMOTION ACTIVITIES
Special Events:
Having special events can definitely
benefit the brand and promote the brand’s
product. Tiffany & Co is no different then any
other company when throwing a big bash for
promotion and interacting with other
companies and consumers. The biggest party
Tiffany’s had this year was their party for
Fashion’s Night Out. The event’s main purpose
was to show off their Tiffany Era collection.
They actually chose one part of the collection
which was the 70s Disco Theme. Throwing
events such as this one can definitely help
promote the brand and also bring in more
customers and knowledge of the brand.
In September, Tiffany’s
Fifth Avenue flagship store
hosted a disco-themed
party to celebrate
Fashion’s Night Out & the
new Tiffany Era Collection.
The outside of the building
had live models displaying
the new collection in the
windows. There was a
special performance by
Leighton Meester & Check
in the Dark. Also, the
party’s deejay was DJ Kiss.
Public Relations:
Co-host Anne Hathaway in
Tiffany’s 94-carat, $10
million Lucida® Star
CFDA/Vogue Fashion Fund &
The Duchess of Cambridge
diamond necklace,
presents The Duke of Cambridge Tiffany & Co presented their grant
diamond earrings and a
a Tiffany-designed trophy to him to two young jewelers. Both received
diamond ring at the 83rd
& his team after they won The checks up to $150,000. The money is
Academy Awards® in L.A.
used to help their independent
Foundation Polo Challenge. Held
companies grow. Each had to submit
In Santa Barbara.
http://www.youtube.com/user/OfficialTiffanyAndCo
a lengthy application to enter.
#p/c/92DD5FB78BCC2BC8/2/toLhlBsZgls
Public Relations is mainly about the
company’s image and how they promote
their product. For example, Anne Hathaway
wore Tiffany & Co. jewelry to The Academy
Awards and not only is she a celebrity, but
she was also the host so the main focus was
on her. Tiffany’s is a luxury brand and using
celebrities definitely maintains that image.
Another example is sponsorship. This year,
Tiffany’s designed a trophy for a polo match,
and Kate Middleton presented the trophy to
the winning team, which was her husband
Prince William’s team. Another example of
having a good public image is giving back.
Tiffany’s teamed up with Vogue to provide
two grants to up and coming jewelers to
help start their image. All of these examples
help Tiffany’s with their image, which 4is the
main reason of public relations.
Tiffany & Co.
•
•
•
•
•
•
•
•
Recognition of brand
Visual identity- Tiffany blue box and color
Icon for luxury
International reputation as a premiere jeweler
“Classic” store positioning
Brands advertising reinforces the brands
association with luxury, sophistication, style and
romance, while other advertising is primarily
intended to increase demand for particular
products.
Public Relations-significant aspect, image
enhanced by charity sponsorships, grants &
merchandise donations
Tiffany engages in retail promotions & media to
maintain consumer awareness
•
•
Target a more fashion forward
consumer in promotion
Expand media coverage in
Men’s magazine
•
•
•
•
•
•
•
•
•
•
•
•
•
Spending less on promotion &
advertisement
Regularly advertises primarily
in newspapers & magazines &
periodically conducts product
promotional events
Management currently
anticipates a decline in
advertising spending
Limited media
Lacks word of mouth (buzz)
Business seasoanlity
Challenging economic global
economy
Decline in marriage rate
Consumer attitude on spending
Competitors increased budget on
advertisement & promotion
Decline in sales & remain flat
Foreign currency will weaken U.S.
dollar requiring to raise prices or
shrink profit margins outside the
U.S.
Lose exclusivity license
arrangements with Ms. Peretti & Ms.
5
Picasso
Major Competitors
Tiffany & Co. was
founded in 1837 and gained a
well-known, respected brand
name. This company is well
known for their Tiffany blue
color and usually advertises
with presents implying
consumers to buy as a gift.
Tiffany’s main promotion is
when a consumer sees the
color; they know it is Tiffany’s.
They focus more on their image
rather than the product. This
company is consumer-oriented.
Tiffany’s has celebrities wear
their products to sell the
product for them. They hold
trunk shows to see which
product will sell.
Blue Nile was founded in
1999 and is the largest, wellknown online retailer. Like
Tiffany’s, it is known and
recognized for their color,
midnight blue. Blue Nile focuses
on engagement rings and believes
that it should not be complicated
because diamonds are beautiful
and simple. They have a simple
brand name and simple slogans to
match their simple jewelry. Their
jewelry is not bold. This company
uses consumer-oriented sales
promotion to have the consumer
try, buy and become loyal
consumers.
Bulgari began in 1884
and with their fine jewelry has
gained their loyal consumers.
Their inspiration is from the
“timeless beauty Greek and
Roman art” (Jacques & Kepos,
2010). They seem to use
models to constantly show
their product. They want their
consumers to imagine
themselves in the product.
Bulgari promotes their
product with a distinct Italian
look. Bulgari is a bold look
that is elegant and starves for
the attention.
Tacori promotes their
product through slogans and
ads making their simple, but
elegant jewelry into meaning
more for the consumer than just
a simple piece of jewelry. An
example would be this ad
shown above; with the slogan
“Adorn her like a Queen.” They
try to get a creative message
across with pictures covered in
jewelry with their simple
slogans just like the product
they sell. They tie in passion,
seduction, glamour, sweet love,
temptation, and several more.
They create strong reasons for
why their product must be
bought.
Comparison
All of these companies advertisements and promotion is simple and sweet. They get right to the point and want
consumers to see their classical and elegant look. All companies have evolved with time by furthering and advancing their
promotion with technology. Tiffany and Blue Nile have facebook, mobile apps, and blogs, while Tacori and Bulgari. do not have
mobile apps quite yet, but are in the process. They all have their own website to advertise their products.
6
Tiffany & Co. Evaluation
Promotional Activities:
The target markets for engagement rings specifically are young women age 20-35. Tiffany’s does an
excellent job strategizing where and when to promote engagement rings to the young women consumers. For
example, young women like to watch Award shows to view and enjoy what the celebrities are wearing. Many
times Tiffany’s lends out some of their jewelry to certain celebrities to display on the red carpet, knowingly that
the media would ask the celebrity what brand of jewelry they are wearing. This year, host Anne Hathaway wore
10 million dollars worth of jewelry on the red carpet. Along with Anne, other popular celebrities wore Tiffany’s to
big awards shows as well such as Minka Kelly, Angelina Jolie, Natalie Portman and Lea Michele. Tiffany’s
strategy is well thought out because young women like to view what celebrities are wearing for inspiration and
for entertainment.
Competitors like Tacori apply their advertisements towards young women by using other items that young
women would be quick to find irresistible. On the other hand, Bulgari has an exotic image to their brand that
young women like to imagine themselves in. Blue Nile’s strategy is very clean and simple similarly to Tiffany’s.
Tiffany’s strategy is to promote tradition and simplicity, which has been effective for many years. The reason
these companies are successful is because they have their own image and are consistent to maintain their
reputation.
Conclusion:
Known for their iconic blue boxes, Tiffany does an excellent job with keeping a distinct visual identity apart from its
major competitors Tacori, Blue Nile, and Bulgari. Tiffany exerts its luxury brand by showcasing its timeless fine jewelry.
Because this is how Tiffany is recognized, they should continue to keep the blue boxes as well as their classic pieces.
Although the company is already successful, it does have some weaknesses. The first is limited media. To reach a larger
target market, Tiffany needs to find other means of promotion in addition to the ads they already have in magazines and
newspapers. The second is that Tiffany usually makes the most sales during the popular seasons where proposals occur,
which is spring and fall. In order to further maximize the sales of engagement rings in the spring, Tiffany should include
incentives to attract more customers who are not already loyal to its company. Complimentary Tiffany gifts in the
signature blue box can be given to the customers who purchase an engagement ring.
7
Promotional Plan
Promotion Objectives/ Goals:
To increase sales during spring season by
offering free gift with purchase.
Promotion Activities to Achieve the Goals:
To gain more loyal customers than Tiffany already
has, the company should have an incentive for purchasing
an engagement ring from their store. When a customer
buys an engagement ring, they should be able to choose a
free Tiffany box from a selection of other less expensive
Tiffany items. The customer will enjoy picking his or her own
blue box and the surprise of opening it will reveal the item
they get to take home for free. This promotional objective is
an effective way to gain customers, because every one
wouldn’t mind a free gift with purchase. By word of mouth
this incentive will spread across the nation, increasing sales
during the spring season.
8
Promotion Plan
“Add a little
sparkle,
To blossom
your love.”
9
Justification
Our group promotional plan will work because when one person receives a free Tiffany &
Co. gift they will tell their friends and family their experience and will be personally advertising
for the company by word of mouth. This will be better than the current practice because it is a
new way to gain consumers; possibly the ones that normally would not choose Tiffany and
usually their main competitors. Tiffany & Co. will be doing more for their consumers and these
consumers will notice their the company thriving to make their customers happy and satisfied
with each gift they receive from Tiffany & Co.
Advertisement
There are three ads: a billboard, magazine, and online ad. They are different
advertisements, but have a unifying theme. All of these ads have the company logo. Our first
ad is a billboard ad that’s slogan is: “Diamonds are the seeds to endless love.” It is a Tiffany &
Co. box with an engagement ring inside surrounded by seeds in the ground to symbolize
growing love. The second ad is in a magazine with the slogan: “Keep your love growing.” This is
a cherry blossom tree growing and engraved with a heart. Inside the heart is T&C engraved
which is made to represent Tiffany and Co.; the love for the company, but also the love for
others. The third and last ad is an online advertisement with the slogan: “Put a little sparkle to
blossom your love.” This ad is the Tiffany blue color background with a cherry blossom
blooming and inside the blossom is the engagement ring which is representing a new beginning
to love.
10
References
Jacques, D., & Kepos, P. (2010). International directory of company histories.
(Vol. 106, pp. 82-87). New York: Gale Cengage Learning.
Grant, T., P. (2006). International directory of company histories. (Vol. 78, pp.
396-401). New York: Thomas Gale.
Jacques, D., & Kepos, P. (2011). International directory of company histories.
(Vol. 121, pp. 76-80). New York: Gale Cengage Learning.
11
Appendix A
Billboard Ad
12
Appendix B
Magazine
13
Appendix C
Online Ad
14