...History of the Company The 1830s in New York City were a time of dynamic growth and high taste for fashion. With this in mind; Charles Lewis Tiffany and John B. Young saw an opportunity and in 1837 opened Tiffany & Young, a “stationery items and fancy goods” store with a $1,000 advance from Tiffany's father. That same year, the visionaries introduced their signature Blue Box which became the symbol of the company. Opposite of the opulence and extravagant taste of the time, Tiffany and Young were inspired in nature, offering clean and harmonious patterns creating a new “American Style” expressed on silver hollowware, flatware and later jewelry. In 1845, Tiffany published its first “Blue Book” catalog, which is still being published today showcasing its collection of fascinating couture jewelry, custom- designed pieces and most breathtaking jewels. Tiffany was the first company to introduce the 925 sterling silver standard of purity and mostly because of the efforts of Charles Lewis Tiffany; this ratio was adopted by the United States Congress as the American sterling silver standard. The company was awarded the grand prize for silver craftsmanship at the Paris Exposition Universelle in 1867, making Tiffany the first American design house to be honored by a foreign institution. By 1900 Tiffany & Co. had become America's leading supplier of jewels and timepieces as well as luxury personal, table, and household accessories. Tiffany’s reputation was not limited to the United...
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...the Tiffany Story Tiffany & Co. is created by Charles Lewis Tiffany and John B. Young (then known as Tiffany & Young, a stationery and fancy goods emporium at 259 Broadway in New York). All items were marked with a non-negotiable selling price, which was a first at that time. The first day’s sales total $4.98. 1837: Introduction of the Tiffany Blue Box The well-known shade of blue was chosen to symbolize the company’s renowned reputation for quality and craftsmanship. The colour is well known globally and widely used on Tiffany & Co. boxes, catalogues, shopping bags, brochures and in their advertising mediums. Today, it has become Tiffany & Co’s trademark colour. No box can be taken out of a Tiffany & Co. store except with an article which has been sold by them. This adds to the exclusivity of the brand. The tradition of the famed Tiffany Blue Box has endured over the years as its contents are unsurpassable in quality and design. 1845: The First Blue Book The first ever Tiffany catalogue is published. This tradition still continues at present day. 1851: The Heritage of Tiffany Silver Tiffany becomes the first American company to use the 925/1000 sterling standards which is later adopted as the United States Sterling Standard. Tiffany’s silver designs also start capturing attention worldwide. 1853: Tiffany & Co. is “Officially” Named Charles Tiffany assumes control of the company and renames it. 1867: Tiffany & Co. at the Paris Exposition Universelle Tiffany & Co...
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...Buying Patterns 10 2.6 Product Offering 11 2.7 Keys to Success 11 2.8 Critical Issues 11 3.0 Marketing Stragegy 12 3.1 Mission 12 3.2 Marketing Objectives 12 3.3 Financial Objectives 12 3.4 Target Markets 12 3.5 Positioning 12 3.6 Marketing Mix 13 4.0 Financials 14 4.1 Break Even Analysis 14 4.2 Sales Forecast 14 5.0 Controls 14 5.1 Implementation 14 5.2 Contingency Planning 15 1.0 Executive Summary Tiffany & Company was established in 1837 as a quality jeweler. They use only the highest quality of resources, such as their trademark platinum, to handcraft classic everyday pieces as well as trendy special occasion pieces. While Tiffany & Company is a high end jewelry retailer, there is something for everyone within the various collections. Based in New York City, Tiffany & Company has become a household name within the United States. The eye-catching robin’s egg blue box has become a symbol of the sentimental collections representing beauty, strength, durability, style, and class. Tiffany & Company jewelry has a long-standing history of being associated with the special occasions in the lives of...
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...relevant factors of the macro-environment that affect the attractiveness of the U.S. jewelry industry? Specifically, are general and industry economic conditions and socio-cultural factors favorable to Tiffany & Co.’s business situation? According to the PESTEL Analysis, the strategically relevant factors are: political factors, economic conditions, socio-cultural forces, technological factors, environmental force, and legal/regulatory factors. Economic conditions and socio-cultural factors have not been favorable to Tiffany & Co. Economic hardships and the recession have led to revenue declines between 2006 and 2010. Retail jewelers in the U.S. were affected by these poor economic conditions and stores dropped from 62,000 in 2007 to 56,000 in 2011. In 2006, the price of gold increased from $600 per ounce to $1,600 in 2011. This resulted in the industry average profit margin to decrease to 5.1 from 2006 – 2011. In term of socio-cultural factors, the aging population, and the reduced number of weddings has affected the industry average profit margin. Consequently, the number of weddings in the U.S. has dropped from 2.3 million per year to 2 million between 2001 and 2010 and dropped again in 2009 and 2010. 2. How strong are the competitive forces confronting Tiffany & Co. and other retail jewelers? Which once of the five competitive forces is the strongest? Do a five-forces analysis to support your answer. Threat of Entry: The threat of entry is strong because to...
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...One of the world’s largest brands in the market of luxurious jewelry is the successful American brand Tiffany& Co. In the following analysis, the customer-driven marketing strategy including the market segmentation, targeting, differentiation and positioning are the ones I would propose in case I would take on the position of the leading marketing manager in the specific company, mostly focusing on a specific product, the famous diamond rings. 1. Suggest how to segment the market. The topic of segmenting the market is not an easy task to accomplish and it could be better defined as a compilation of multiple factors. Therefore, Tiffany& Co. should try through multiple variables to see which give the best segmentation opportunities. We are discussing the case of consumer marketing, so the major segmentation variables are geographic, demographic, psychographic and behavioral. The analysis of each category is vast, but it would be more advisable for the specific brand to narrow the analysis into the most concrete level as to reach our goal more accurately, which is no other but the utmost accurate market segmentation. Tiffany& Co. can segment its customer market based on geographic criteria, in other words divided into different geographic units, such as nations, regions, states, counties, cities or even neighborhoods. Being a brand originating by the United States of America, it could be argued that it targets solely the specific geographic market. This is...
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...The macro-environment can be the reason of the desirability to jewelry sales on the attractiveness of the US jewelry business. The US jewelry industry is mainly focused in the Southeast and Mid-Atlantic regions, which account for 45 percent of total industry sales. These concentrations are directly reliant on population and per capita income. The higher these two are, the more concentrated the retail merchants will be in that particular area. Tiffany & Co. produced their jewelry focusing on demographics areas with higher annual incomes. As noted in the case, Tiffany & Co. targets the more affluent population. Social forces have also affected the attractiveness of the US jewelry industry. The Tiffany & Co. focuses on the character of its goods produced to meet the customer’s needs and desires. Wealthy Americans are still willing to spend top dollar on the Tiffany brand because they know the recipient will see that much more value when it is given to them in the little blue box. Tiffany’s competitors focus on a much wider range of consumers to sell their jewelry. Signet Group operates in the jewelry retail segment through Jared and Kay Jewelers. These two subgroups have targeted two different sets of customers. Kay Jewelers based in mall locations and targets households that have a lower annual income and Jared targets a more luxurious retail segment. The threat of new entrants in the jewelry industry is low. There is no single dealer owning in excess of 10% of the total market...
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...I. PENDAHULUAN Tiffany & Co didirikan di New York pada tanggal 18 September 1837 oleh Charles Lewis Tiffany dan Teddy Young dan pada awalnya merupakan pusat perdagangan stationery dan barang – barang mewah yang berpusat di 727 Fifth Avenue, New York City, USA 10022. Saat ini Tiffany & Co adalah perusahaan internasional yang bergerak di bidang retail, design, manufaktur dan distributor barang – barang luxury seperti perhiasan terutama berlian tetapi kemudian memperluas produk line mereka ke arah jam tangan, china ( barang pecah belah ), kristal, silverware, dan barang mewah lainnya. Pada tahun 1979, Tiffany & Co diambil alih oleh Avon Products, Inc dengan harga sekitar $ 104 juta dalam bentuk saham yang kemudian memperluas pangsa pasar Tiffany kearah pasar menengah yang lebih besar dari sebelumnya. Strategi diversifikasi ini menyebabkan kenaikan penjualan dari $ 84 juta pada tahun 1979 menjadi $ 124 juta pada tahun 1983 dan selain itu terjadi juga kenaikan biaya operasional dari 34% pada tahun 1978 menjadi 43% pada tahun 1983. Pada bulan Agustus 1984, Avon berencana untuk menjual Tiffany, dan tawaran paling menarik datang dari management Tiffany sendiri yang setuju untuk membeli kembali saham Tiffany dan gedung pertokoan Fifth Avenue dengan harga $ 135.5 juta. Pembelian dengan LBO ( leveraged buy out ) dimana semua equity dibagi ke 3 investor group yaitu 20% dimiliki oleh management, 49.8% dimiliki oleh Investcorp, the Bahrain and London , dan 25.7% dimiliki oleh General...
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...Tiffany & Co. Facing Exchange Rate Risks 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 risks of exchange rate fluctuations between time of purchase from Tiffany and time of cash settlement that were previously borne by Mitsukoshi. Historical data warned Tiffany that the yen/dollar exchange rate could be quite volatile on a year-to-year and even month-to-month basis. Although a continued strengthening of the yen against the dollar was observed from 1983 to 1993, there was evidence that the yen was overvalued against the dollar in 1993, and thus a distinct probability that the yen may eventually crash suddenly. Managing Tiffany’s yen-dollar exchange rate risk. The predicted depreciation of the yen would have a potentially negative impact on Tiffany’s financial results. There are three main types of foreign exchange exposures are (1) transaction (short-term), (2) economic (medium to long term) and (3) translation exposures. For a company like Tiffany which has sales in numerous countries, there are a continuing series of foreign currency receivables and payables. Thus, Tiffany should have a foreign currency hedging program to cover...
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...Key issue: Tiffany and Co concluded an agreement with its Japanese Distributor, Mitsukoshi Limited. Tiffany & Co Japan assumed management responsibilities of the operation of 29 boutiques and was now responsible for millions of dollars of inventory that was previously sold wholesale to Mitsukoshi Limited. Tiffany & Co Japan now faces the risk of foreign currency fluctuations previously borne by Mitsukoshi Limited. Tiffany & Co Japan must now make the decision between basic hedging alternatives: Entering into forward agreements to sell yen for dollars or purchasing a yen put option. Exposure As Tiffany & Co’s receivable cash flows are now denominated in ¥ due at future date the firm now faces the foreign exchanges risks with uncertainty of the dollar equivalent of cash flows. Tiffany & Co. now face transaction, translation and operating exposures. Transaction exposure risk is observed in Tiffany’s deferred payment to Mitsukoshi of $25 million as this denominated in USD and cash inflows from Tiffany Japan will be denominated in yen. Translation risk represents foreign assets on financial statements as of July 30 1993 Tiffany & Co showed $7.7million in foreign assets. The most significant exposure that Tiffany will experience is operating risk due to the high amount in ¥ inflows. Tiffany & Co. will need to limit this exposure hedging these inflows in the medium term; however major currency movements will be factored in to the retail price in the...
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...THE MAIN STRATEGIC PROBLEMS PROBLEM: ‘Tiffany’ was very focused on their brand name. In most of the cases it is very good for a company and for Tiffany it would be right decision as well but the management preferred to do it starting from the bottom point. In my opinion, it was wrong decision. The company put very high prices on jewelries which do not have very high value according to the materials, and furthermore the company did not have the name what would attract people to buy its products. The company had chosen fundamental strategy to keep their name up and make it more famous. The second strategic fault, in my view, was the licensing the Tiffany brand to an Italian fashion-eyewear manufacturer – it means they have no control over the products which are produced by other company, so most probably the quality also will not be the same. It can be the reason for sales to fall down. Solution 1: I think they should have licensed the name for other sphere of production – this point would assure people that the products they used to buy from Tiffany are still made by the same way, and quality is going to be saved as usual. Solution 2: I would enhance the range of the products, and at the same time to have a control over of their quality. I think, in this case the sales would go up with the income. Recommendation: In my opinion the second solution would be better for this case. According to the Tiffany’s history: in most of the times the company was making decision exactly...
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...The Tiffany & Company Case Analysis Introduction. Tiffany & Co. holds the leading position in the fine jewelery industry with a deep history since 1837. Tiffany's market cap was appropriately US $4.4 billion and has become one of the most well known companies in the world. In 2007 Train Fund become the largest shareholder of the company. He believed that Tiffany was undervalued and stated that it wants to help the company “improve its earnings per share by addressing strategic issues and various operations” in response, the company began to consider different actions to increase shareholder value. 1. Strategic problem statement: Problem of growth. This growth strategy was called “Growth without Compromise”. Company facing a problem between maintaining company reputation and culture with the vision of the main shareholder of the company. 2. Tactical problem statement: The main point – don't lose the brand. The company faced with the new environment and need to find the way how to improve its earning without putting the company into a risk of being a stock market. Identification of issues: Issue 1. Valuable brand with long history. Issue 2. Shareholders and Company: The conflict between shareholders and company management decision of to which path Tiffany should take. The shareholders want Tiffany to rapidly grow and move forward in order to generate more profitable revenue by suggesting options that goes against Tiffany Growth without compromise...
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...the movies, and among top executives at Tiffany & Company. Members of several action groups question the ethics of obtaining diamonds from sources that are enmeshed in bloody conflict. As we take a look at the market, when most women are buying or receiving a diamond, probably do not give much thought to where the stone came from. Furthermore, whenever a man purchases a ring for his lady, how often does he think to ask the jeweler where the stone originated? In recent years, there has been a large movement to pressure jewelers, such as Tiffany & Co. to be more socially responsible in ensuring that their diamonds are not blood diamonds. The major issue that Tiffany & Co. faces in regards to these so-called blood diamonds would be classified as an issue of social responsibility. Tiffany & Co. admits openly that it has a responsibility to society to keep from supporting the atrocities that are committed by such groups as the Revolutionary United Front (RUF), who are from Sierra Leone, who act in conflict-stricken countries around the world, who uses the diamond trade to fund their wars, often terrorizing the innocent populations of their own countries. Tiffany & Co. could now use Thorne et. al.’s “Framework for Ethics and Social Accountability” (2008) in order to meet these social responsibilities. However, one major blockade could come in the vicinity of accountability. For example, Michael Kowalski, chairman and CEO of Tiffany & Co. argues that tracking the exact location...
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... Queensland Date Issued: 02 – 10 – 2013 Mr Charles Tiffany 727 Fifth Avenue New York City, USA 10022 Dear Charles Tiffany, After your request to our Marketing personnel, I hereby release the finding of our report that outline the most relative and effective channel structure for Tiffany & Co. This report provides a detailed look at the channel design decision paradigm. This report suggested alternate channel strategies and evaluated each. It also gives some added recommendations from the Marketing Department. Our researches suggest that the best channel design structure follow is Vertical Channel Structure and Multi Channel Structure. Thank you for choosing out marketing team to complete the research. We enjoyed the opportunity that we received from your business. Please do not hesitate to ask any of your concern or questions. Regards, Thi Nguyen Marketing Consultant Prepared For: Charles Tiffany Company: Tiffany & Co. Date Submitted: 11 – 10 – 2013 Student Name: Thi Nguyen Student Number: U1004604 EXECUTIVE SUMMARY This report has been authorized by Mr. Charles Tiffany from “Tiffany & Co”. The report was commissioned to outline the most effective channel structure for Tiffany & Co. Analysis, study and make recommendations to change to the channel design chose for the company. The finding indicated that a number of changes should occur if Tiffany & Co. wants a more effective and efficient distribution channel...
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...global retail sales amounting to $150 billion. Tiffany & Co. currently is the leader within the jewellery industry. Tiffany recognized the growing number of consumers demanding luxury at mid-level prices and decided to use this trend to its advantage by introducing items at a lower cost to be more appealing to these middle-income families. 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 jewellery consumers today. However, with all of Tiffany’s current success, some analysts worry that the company may be devaluing their luxury image with the introduction of lower cost products, as this contradicts their “exclusiveness”, which is part of their brand. In order for Tiffany to not dilute its luxury image with its attempts to make the blue box accessible to the lower end the company must focus on assuring customers that the quality of their products have not lessened even though the cost has. This proposal discusses the fine jewellery sector within the luxury goods industry, focusing on Tiffany & Co.’s (“Tiffany”) position among its strongest competitors and fine jewellery consumers. The paper opens with an overview of the specialty retail industry and current trends within the specific sector of fine jewellery. The document progresses by describing the corporate structure of Tiffany, specifically the company’s products, financial...
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...Since 1983 Tiffany & Co. has been dedicated to provide their consumers with one main design, sustainability. They know that their customers expect nothing less than top quality in jewelry and services and Tiffany's has done just that for the past twenty-four years. Recently Tiffany's has developed a new goal to search the mines for more environmentally friendly materials that will maintain their image of top quality while “obtaining precious metals and gemstones in ways that are socially and environmentally responsible.” The adopted strategy that Tiffany & Co. has adopted is assuring the integrity of their sources while maintaining strong leadership at promoting responsible business practices. 自1983年蒂芙尼公司一直致力于为他们的消费者有一个主要设计，可持续性。他们知道，他们的客户期望比珠宝及服务最优质的无外乎和Tiffany的已经做到了这一点，在过去24年。最近Tiffany的开发了一个新的目标搜索的矿山更环保的材料，将保持高品质的图像，而“获得贵重金属和宝石的方式是对社会和环境负责。”所采用的策略，蒂芙尼公司有采用的是确保其来源的完整性，同时保持强有力的领导是促进负责任的商业实践。 In July 1993, Tiffany & Company reorganized its Japanese distribution channel by repurchasing its inventory from its Japanese distributor Mitsukoshi Limited. As a result of this action, Tiffany would assume the responsibility of establishing yen retail prices, holding inventory in Japan for sale, and controlling local Japanese management. Tiffany would be able to have control over retail price in Japan where historically had higher price. Under the previous arrangement, Tiffany contracted Mitsukoshi as the principal retailer in Japan and the transaction of wholesaling to Mitsukoshi...
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