Brand Strategy: Situational Assessment for Tiffany & Co.

TIFFANY & CO. Situational Assessment Presentation Ellie Winslow & Shelby Robinson Professor Kendall Brugger Brand Strategy 15 October 2020

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183 YEARS 1

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2 World Wars

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53 U.S. Presidential Elections 3

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12 Astronauts Walked on the Moon 4

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Countless Changes

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TIFFANY & CO.

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“An international icon of legendary style, bold artistry, and innovative design.�

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World of Tiffany, Tiffany & Co. 2020

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Brand Platform 8

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Personality Exclusive & Iconic

Value Proposition Innovative jewelry design and expert craftsmanship with incredible efforts in sustainability.

Purpose & Vision Provide consumers products that look the best, are the best, and are sourced the best.

Positioning High Quality High Price

World of Tiffany, Tiffany & Co. 2020

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Brand Reality Not everyone can afford a $20,000 dollar ring, but those who can have the best experience getting it, now owns an iconic and timeless design, and knows that the item is the highest quality possible and sourced sustainably.Â

Friction Leader in diamond traceability and can trace 100% of their rough diamonds to known mines and sources.

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Market Share 5.2%

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Our Sustainability Pillars, Tiffany & Co. 2020

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Jewelry Stores in the US. IBISWorld, 2020

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Introduction

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Competition 11

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High Cost

Direct Competitors

High Quality

Low Quality

Pandora • High quality, affordable prices • Specializes in charms and bracelets • Satisfies desire for customization

Low Cost

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Cartier Careers 2019, Cartier, 2019

Cartier • High quality, high prices • Specializes in bracelets and rings • Creativity, freedom, and excellence 1

Indirect Competitors JC Penney, Dillards, Amazon, Nordstroms, Walmart • Low budget, lower quality • Varying products, not specialized in jewelry • Offers more online buying options & are not as experience based

Unexpected Threat

Standard Threat

Apple • Modern definition of luxury retail • Apple Watch is the direct competition

Blue Nile • High Quality, High Price • Online market unlike Tiffany

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Audience 13

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Demographics

Psychographics Awareness Perception

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The Indulgers

The Status Seekers

30-39 year-old singles Environmentally conscious White US women $100,000 a year personally

21-29 year-old singles Status conscious Mainland-Chinese women Family income $100,000/yr

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Buys to indulge and make themselves feel more confident.

Grew up seeing Tiffany’s as a gifted status symbol 1

Iconic, special and desirable

The Subtle Signals of Wealth, WGSN, 2017

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Buys to display wealth and stand out from the crowd.

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Grew up seeing Tiffany’s as an expensive global American brand.

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Expensive, recognizable, quality

China Luxury Report 2019, McKinsey & Company, 2019

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Loyalists Jewelry lovers who value quality, price, status, and sustainability.

Haters Individuals who find no value in impractical and expensive goods.

They find the jewelry industry outdated and would much rather spend their hard earned income on something of use, not a flashy trinket.

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Communication 16

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Personality Tiffany communicates to their audience by clearly defining themselves with a classic, sophisticated style, while highlighting romance, luxury, sustainability, and excellent customer service.

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Tiffany & Co. Annual Report 2020, Tiffany & Co. 2020

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11.6 million on Instagram 10 million on Facebook 1.6 million on Twitter 260.58 million on Pinterest

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Differentiator Their commitment to, and vocalization of sustainability has made Tiffany’s stand out.

Relevant Messaging Current topics are discussed, charities are donated to, and collections are made for impactful events.

Tiffany Blue 1837 Blue is an official patented Pantone color and is one of the most recognizable and iconic shades.

Visual Identity Consistent, strong, steady, lasted through the years and cultural shifts. Relies on nostalgia but with modern relevance.

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Introduction

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Culture 20

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Social There is a shift in perception of the industry they’re in.

Luxury retail jewelry are not practical, they are expensive, and the traditions of jewelry giving are outdated. This cultural social factor is by far the biggest threat for the brand.Â

Economic There will always be a percentage who can afford luxury jewelry, but the social aspect of where they spend their money is a factor. Additionally, in times of crisis, unnecessary spending is the first to go. During the pandemic, that means jewelry.

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Introduction

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Political Tiffany’s is a global brand who source their products globally.

Turmoil in any country will affect them greatly. The influence of the French and American government is also what caused the downfall of the LMVH acquisition.

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Technology Technology is the biggest point of growth. New ways of ordering, testing, awareness channels, and customer service, and of course for quality and innovation are evolving every day.

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Tiffany Sinks 11%‌ Market Insider, 2020

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Introduction

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Next Steps 24

Introduction

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183 YEARS 25

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It is our job moving forward to try and figure out how to combat the human problem of shifting cultural perceptions, and business problems of loss of income, and accompanying acquisition failure.

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Works Cited The World of Tiffany. (2020) Tiffany & Co. https://www.tiffany.com/world-of-tiffany/ Our Sustainability Pillars. (2020) Tiffany & Co. https://www.tiffany.com/sustainability/ Number of Tiffany & Co Stores by Region Worldwide in 2019, by Region, (2019). Statista. https:// www.statista.com/statistics/857587/number-of-tiffany-and-co-stores-by-region-worldwide/ #:~:text=The%20luxury%20jewelry%20retailer%20Tiffany, 326%20stores%20around%20the%20world.

Hiner, J. (2020, June). Jewelry Stores In The US. IBIS World. https://my-ibisworldcom.ringlingcollege.idm.oclc.org/us/en/industry/44831/major-companies Luan, et al. (2019, April). China Luxury Report 2019, McKinsey & Company. https:// www.mckinsey.com/~/media/mckinsey/featured%20insights/china/ how%20young%20chinese%20consumers%20are%20reshaping%20global%20luxury/mckinseychina-luxury-report-2019-how-young-chinese-consumers-are-reshaping-global-luxury.ashx The Subtle Signals of Wealth. (2017 September 15). WGSN. https://www.wgsn.com/content/ board_viewer/#/75276/en/page/1 Winck, B. (2020 September 9). Tiffany sinks 11% after Louis Vuitton- owner LMVH calls of $16 billion takeover deal. Market Insider. https://markets.businessinsider.com/news/stocks/tiffany-stock-pricelouis-vuitton-lvmh-scraps-takeover-deal-lawsuit-2020-9-1029573748# 2019-2020 Annual Report, (2020) Tiffany & Co. https://investor.tiffany.com/financial-information/ annual-reports Cartier Careers, (2020) Cartier. https://www.careers.cartier.com/

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