Tiffany & Co. Strategic Initiative

The New Strategic Initiative

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Ericka McGriff Punya Chanana 2 Sofia Molinaro Tenielle Adderley

TABLE OF CONTENTS

05

EXECUTIVE SUMMARY

08

MARKET ANALYSIS

16

COMMUNICATION & PROMOTIONAL PLAN

20

THE NEW STRATEGIC INITIATIVE

26

THE CREATIVE BRIEF

41 FINANCIAL PLAN

44 CONCLUSION

46 3

APPENDIX

“ONE SHOULD EITHER BE A WORK OF ART OR WEAR A WORK OF ART.” - Oscar Wilde

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Founded in 1837 in the city that never sleeps, New York City, on the idea of rich heritage, legendary jewels, and milestones, Tiffany & Co. is all about defining style and celebrating the world’s greatest love stories. Arriving with the vision of redefining glamour and style around the world, founder Charles Lewis Tiffany, had an extraordinary passion for bringing the most beautiful diamonds into the world to New York City.

Through the years as time develops and new trends come and go, Tiffany has to find a way to reach the new generation. For the 21st century, that’s the hipsters, the young entrepreneurs, the broke but creative minds who are taking over, also known as the generation of millennials’. To reach this consumer, Tiffany has to have a certain presence, whether it be overtaking social media, or eye catching advertisements, the missing link is remembrance. By initiating #The1961 Tiffany is giving something to get something.

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EXECUTIVE SUMMARY

Overview of Retailer

1837

1870

1900

Tiffany opens its doors on September 14, 1837 at 259 Broadway in New York.

In 1878, Charles Lewis Tiffany purchases a 287carat fancy yellow diamond.

It was cut to 128.54 carats and named the Tiffany Diamond.

Louis Comfort Tiffany, son of Charles Lewis Tiffany, becomes the company’s first official design director in 1902.

6

1910 The venerable Tiffany flagship store opens its doors at the corner of 57th Street and Fifth Avenue

1960 Audrey Hepburn embraces Tiffany’s New York style in “Breakfast at Tiffany’s.”

7

2012 In 2012, Tiffany & Co. celebrates 175 years of legendary style.

Scope & Size of the Market

In this day and age it is important to consider one of the most dominant generations of the time, millennials. Brands should begin to look at the millennial customers and specifically create a brand personality that mirrors that of the millennials themselves. This is the gap being fulfilled with cafe, 1961. By discovering ways to mirror the millennials, Tiffany & Co. is discovering new technological and personal ways to dominate the market.

Long Term Success

The long term success of this new strategic initiative will attract more attention from a younger consumer demographics, bringing in higher profit margin with increased revenue, to give Tiffany & Co. security when it comes to capturing and keeping the attention of this new target market. The new initiative reaps income not just from the creation of your own jewelry through the Bespoke Tiffany server, but also from the selling of delectable goods such as salads, and other sorts including desserts.

Tiffany and Co.’s business model will be adapted to the changing digital environment, incorporating the latest from today’s digital world. Geotagging, that will be constantly featured in Times Square, will also keep the company relevant and fresh in the consumer’s mind.

Future Competition

Introducing a bistro styled restaurant at Tiffany & Co. can open many doors for new customers and higher profit margin. This initiative will also capture the attention of competitors in the jewelry industry looking to have a step up within the minds of millennials. Our top competitors with the potential to incorporate this initiative are Cartier and Pandora. Cartier was a top suggestion due to its capital income and price points. Cartier is a high priced jewelry company who may also wish to incorporate a new incentive with an affordable line to attract a younger consumer. This strategic initiative can be easily incorporated into Cartier’s business model with the ease of access to capital, space, and product design. Pandora showed itself as another potential competitor to this new strategic initiative because it is constantly introducing new jewelry pieces that are more and more affordable. Introducing a small cafe style to Pandora will give consumers an added incentive to stay in the store longer. Tempting them with treats and small desserts will increase the foot traffic time at Pandora by far longer than their regular store traffic. 1961 will strive to keep up with competitors by constantly updating the Bespoke Tiffany server, allowing consumers to be able to create something new each time they purchase an item, and ensuring great customer service through the cafe, as well as staying committed to the sustainable, pure creation of our jewelry and diamonds.

8

MARKET ANALYSIS

“THE BEST THING TO HOLD ONTO IN LIFE IS EACH OTHER” - Audrey Hepburn

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Current Placement There are 4 direct competitors with Tiffany & Co. that serve as the company’s key players in the market. This selection was based on prices, product categories, aesthetics and accessibility.

Founded in 1860 on the idea of high precision watchmaking in Switzerland. Chopard has become one of the most prestigious jewelry companies known around the world. They offer various product categories including watches, jewelry, engagement, and accessories.

Prices range from $200 to $5,000

Originating in Rome, Bulgari was founded as a jewelry shop in 1884 by Greek silversmith Sotirio Bulgari. Operating for over 100 year their products range from home, jewelry, watches, accessories, fragrances and gifts.

With the highest prices out of all 4 competitors.

Founded in 1932 on high quality craftsmanship, Harry Winston is an American luxury jeweler and producer of Swiss timepieces. A wholly owned subsidiary of the Swatch group.

Their product categories include jewelry, wedding, and timepieces. You must call to request prices.

Formed in 1847 and is one of the world’s largest luxury goods company. Well known amongst consumers and its brand identity symbolizes craftsmanship, elegance, quality and excellence. Prices range from $300 $80,000 Their product categories include jewelry, watches, fragrance, bags and accessories.

10 MARKET ANALYSIS

HIGH ACCESSIBILITY

LOW PRICES

PERCEPTUAL MAP

LOW ACCESSIBILITY 11 MARKET ANALYSIS

HIGH PRICES

12

Target Customer Identification

Percent of Population: Age 25 – 34: 17.3%

Millennial Newcomers: 1.6% (2015 data)

Millennials express themselves through brands and want brands to have much more than just a logo. They want brands to have a personality that they like and can relate to. Half of the millennials want to have that emotional connection with a brand and 40% are willing to pay extra for a brand or product that reflects the image they wish to convey about themselves. Almost 60% of millennials say that the brands they buy reflect their style and personality(BCG Perspectives). In today’s generation, in order to reach millennials, brands have to use technology and be social media savvy. Millennials’ passion for discovering new brands, high-quality goods, and a company’s heritage make them natural luxury consumers. They love a good back story and have a strong desire for authenticity. But for them to justify a purchase, luxury items or experiences must have a functional, performance-oriented reason for its higher cost.

The existing customer who shops at Tiffany and Co. is between the ages of 30-60. They buy from Tiffany based on their purchasing decisions on motives and lifestyle. The younger Tiffany customers turn to its product for when an event is coming up such as, an engagement, wedding, anniversary, or birthday. While, the older demographic go in to add a new piece to their already established diamond collection.

Our target customers are the “quality versus quantity” millennials. They are the thinkers leading healthy conscious lives, and making mature consumer choices all while being open-minded with their decisions and intrinsically motivated.

13 MARKET ANALYSIS

Demographic Information Gender: Female Age: 26 Occupation: Fashion Editor at Vogue Income: $40,000 annually Location: Brooklyn, New York Education: Parsons BFA graduate

Elise Social Media Activity Instagram: active hourly Snapchat: active hourly Facebook: active every 2 hours

Leisure Time Likes: traveling, Sunday brunch & avid shopping Favorite Shopping Spots: Chloe, DVF, and Suno Enjoys: Watching romance and comedy films

Purchases from Tiffany Color by the Yard Earrings in Sterling Silver Pink Sapphire retailed at $525 14

Demographic Information Gender: Male Age: 30 Occupation: General Surgeon Income: $150,000 annually Location: Manhattan, New York Education: Harvard Medical School Graduate

Social Media Activity Instagram: active hourly Facebook: active hourly

Leisure Time Likes: rooftop bars & golfing on the weekend Favorite Shopping Spots: Armani, Burberry, Cartier Enjoys: watching comedies, and reading novels

Alexander

Purchases from Tiffany Watch: 2-Hand 37.5MM retailed at $3,000

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Current Communication & Promotional Activities

Store With nearly 300 stores worldwide, Tiffany and Co. sells a variety of jewelry products catering to both men and women.

Email Once a customer subscribes to Tiffany and Co’s newsletter, they will receive frequent updates, promotions, and current campaigns.

Social Media Tiffany and Co. is on six social media platforms all integrated with each other through hashtags like #tiffanyandco #tiffanyengagement #tiffanybluebook #tiffanysetting.

Website With about 2.7 million monthly visits to their e-commerce platform, Tiffany and Co captures their customers attention by presenting them with an experience similar to one they receive in store.

App Tiffany and Co’s Ring Finger App is the most easy to use app.

It let’s a person find their perfect match with a ring before purchasing it.

Catalog Since, 1845, the infamous Blue Book is a place where Tiffany and Co. capitalizes on the opportunity to showcase their high-end jewelry in the comfort of their customer’s homes.

16 COMMUNICATION & PROMOTIONAL ACTIVITIES

Current Distribution

Tiffany and Co operates in four specific regions; Americas, Asia-Pacific, Europe, and Japan through their company-operated stores, company website, business-to-business, and wholesale. In the America’s region, which is their most profitable segment, Tiffany and Co.’s POS consists of 95 U.S. stores, 11 in Canada, 11 in Mexico, and 5 in Brazil, with a total of 122 Company-operated stores. The corporate sales volume for Tiffany and Co. is of $4,249,913,000, which consists of a worldwide net sales increase of 5% due to the growth within all the four regions. Tiffany and Co. currently has three licensing agreements with Luxocttica Group, Peretti designs, and the Swatch Group. The Luxottica licensing agreement allows for the distribution of eye wear under the Tiffany and Co. brand name.

17 COMMUNICATION & PROMOTIONAL ACTIVITIES

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Omni-Channel Strategy

Tiffany and Co.’s current omni-channel strategy includes the brand being connected with their consumers via multiple channels such as Instagram, Facebook, Twitter, their Mobile App, Pinterest, Google+ and YouTube. As you can see below, we have measured their top three platforms; Instagram, Facebook, and Twitter by comparing their current statistics to the future analytics. The growth rate percentage was analyzed by measuring how their statistics will grow in the span of 1 year. Based on a minimum of 12,000 people downloading their Ring Finder App, we predicted it to grow to 18,000 by 2017. With our strategic initiative, we expect for Tiffany and Co. to grow tremendously, especially with their store visits, we expect a 50% increase as 1961 will put Tiffany and Co. in a spotlight.

Current Current

Future

Twitter

3M

5M

Instagram

8M

Facebook

1M 3M

Ring Finder App

Future

12K

200%

10M 66.66% 25% 18K

38.50%

19 COMMUNICATION & PROMOTIONAL ACTIVITIES

Strategic Initiative Objectives

By introducing our strategic initiative we are striving to fill the gap in the Tiffany & Company’s business model that is missing the new generation. Building a revolutionary café Tiffany & Co. wants to amplify consumer engagement by targeting millennials’ to increase foot traffic, sales, and brand awareness within the generation.

Gap in Market Place

Tiffany & Company’s current CRM strategy is focused on the older generation, the baby boomers and the generation X’s of the world. By implementing our new initiative Tiffany reaches the millennials’ and Generation Z. With a strategy to launch new designs, implemented in their current CRM strategy, Tiffany is beginning to invest in its brand image, all while enhancing the in-store experience for shoppers. By doing this they begin to focus on elevating their already global luxury brand, while striving to better engage the customers via a consultative approach focusing on the enhancement of visual merchandising, and social media presentations. This strategic initiative focuses on Tiffany’s missing presence of the millennial, by implementing more commercials, and social media presence they become more modern in terms of how they begin to market themselves. The end result is strengthening their consumer engagement by targeting millennials, while increasing foot traffic in the store.

Objectives Strategic Intent: To increase our presence by targeting the millennial & generation Z. Benefits: Changing the idea of how Tiffany is perceived to the modern customer.

Transformation: Updating the perceptions of the Tiffany & Co. brand to transform it to something that can relate to the younger generations.

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21

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New Initiative Tiffany & Co. is launching this strategic initiative, to reach millennials’ by introducing Bespoke Tiffany and a technologically advanced cafÊ, 1961, to increase the brands market share and sales within the next five years.

Initiative Justification In order to appeal to the millennial generation, it is important that we invest in that customer. Tiffany will be introducing state of the art technology to attract and retain this customer with a focus on a cafe, 1961, a partnership with HD, and Bespoke Tiffany, this initiative will result in increased revenue.

23 THE NEW STRATEGIC INITIATIVE

Technology & Implementation

To reach the millennial, we chose four technological products that will be incorporated in the 1961 cafe to better drive our initiative. These products will be the link to our initiative by merging together two markets, the millennial and the heritage within Tiffany & Co. By using Tiffany Bespoke, geo-tagging, interactive touch-screens, and BLE beacon service, we allow the customer to create a heighten Tiffany & Co. experience.

Tiffany Bespoke: Customized curation makes a product feel more personal. As millennials are the next “Generation DIY.” This technology will be giving a hands-on experience for the “Don’t care how, I want it now-ers.” Custom made products gives the brand more loyalty.

Customization helps companies gain insights from customized designs and fine-tune products to stay one step ahead of the competition.

Who’s doing it: We got our inspiration from Kendra Scott’s Color Bar. Tempted to select from different filters, like the jewelry, metal, color, and stone- the part of experimenting is what makes it such a memorable experience for the customers.

Geo-Tagging: Geotagging involves “tagging” a geographical location to something like a status update, a tweet, a photo or something else you post online. Many retailers collect data on certain locations, and interested parties find it easier to see what kind of audience a location draws, making it easier to learn more about audience behavior at different locations.

Who’s doing it: Facebook, the largest social networking site, let’s a person “check in” to a place when they post a status update. With the option of picking a nearby place or searching for a specific one from the drop down menu, that location becomes public to your friends along with the status post.

Interactive Touchscreens: “Interactive retail displays help to drive customer engagement, according to Digital Signage Today, engagement builds customer confidence and brand loyalty.” These touch screens can make a person explore different components within the tablet, i.e. explore the apps. By interacting with a screen, an opportunity for interacting with the brand and retailer is created, which keeps both at the forefront of the customer’s mind. By interacting with the brand, customers are provided with a specific experience that allows retailers to build a relationship with the customer while increasing sales.

Who’s doing it: The brand New Balance, has kiosks and iPads in the store allowing customers to access the product catalogue, check stock, and help with sizing issues. This interactive technology makes the shopping experience easier.

Bluetooth Low Energy (BLE) Beacon Service: Beacons are small battery powered devices that can communicate by Bluetooth with smart phones and other mobile devices. BLE avoids the cost of WiFi, the inaccuracy of GPS, and is both cost- and energy-efficient to run.

“Beacons enable brick-and-mortar retailers to engage with their customers in the right place, and at the right time” (Buchholz, 2014). Beacons can also provide powerful analytics to stores, showing retailers in-store traffic patterns, such as where and how long customers dwell while shopping in-store.

Who’s doing it: Big beauty retailer, Sephora, is using Beacons in stores nationwide to deliver real time, personalized alerts to customers who opt-in. Shoppers can receive things like birthday alerts, loyalty program updates and be24notified when new trainings are happening in-store.

Tech Implementation Within 1961

Tiffany and Co. will be implementing Tiffany Bespoke, geotagging, interactive touchscreens, and BLE Beacon Service throughout the café. In 1961, the customer will have the opportunity to explore each of these services to enhance their experience, giving them a matchless breakfast at Tiffany’s.

Venue

Interactive Tablets

Our initiative runs on the idea of connecting heritage to the growing force of the millennials. Having the cafe be located on the rooftop of the Fifth Avenue store in New York City, was the most fitting choice, because it solidifies the idea that started on the concept of having breakfast at Tiffany’s. We will develop a cafe to enhance the luxurious experience an individual gets when they walk into Tiffany and Co. For our customers to be able to communicate effortlessly with the servers and diamond specialists in The 1961, we will have the BLE Beacon service as a bell button on every table. Information regarding food allergies can be sent to the restaurant’s staff seamlessly. This bell button will not ring out loud but will go to the server rooms and diamond specialist rooms and notify on their screens if someone is calling them. This technology will give a professional and soundless experience to our customers.

The technology used in Cafe 1961 was developed exclusively to use within the cafe, based on the idea of comfort, ease, and modernization for our customers. The handcrafted tables include a built in touchscreen tablet that lets the customer view it from a 360 degree angle, it can be pulled to the side, front, and straight up from the table, and comfortably pushed back down into the table creating a comfortable space to enjoy the luxurious food offerings available. The HD touchscreen can be found at each customer’s seat with the options to view the heritage on Tiffany, view and order from our exquisitely crafted menu, explore the Cafe 1961 collection made specifically and exclusively for the cafe, view the iconic movie, as well as get the chance to have your own piece made by a diamond expert, with the option to shop from any previous collections made

by Tiffany.

Times Square

Tiffany Bespoke

To make the experience even more one of a kind, we have incorporated the iconic Times Square into our initiative. Once a customer has made their one of a kind piece of jewelry they have the option of going to our social media wall to take a photo of them wearing their jewelry. Upon departure they receive an alert notifying them to go to Time Square for the chance to see their name and face in lights, all with the use of advanced geotagging.

For our initiative we have employed a jewelry bar, we give our customers the opportunity to make one of a kind, personalized pieces ranging from $300$3,000 exclusively from the Audrey and George Collection. They can choose from the option of four earrings, three necklaces, five rings, four bracelets, and three watches, specifically made for the cafe, to design their own pieces all at the comfort of their table.

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Launch Operations Pre-Launch Operations The pre-lunch will take place a year before the actual launch of 1961. This is so the interior design can be fully completed with furnished tables and chairs by the end of September. The hiring of a tech team and construction team will take place during these months as well, in order to get the entire technological and interior function setups going. The hiring of the café chef and staff as well as a preferred selection of the staff will occur during the September month, so that trainings can start taking place for the hired staff during the month of December. Lastly, all application of licenses, partnerships, permits, and approvals for 1961 will be executed during the month of December. The entire construction with builders and electricians will work around a four month period for everything to be fully constructed and functional, as well as, electronically.

Launch Operations The actual launch will start exactly a year later following the pre-launch setups, by September 2016. Initially there will be a sneak countdown that will occur five days prior to the launch party, where it will be advertised on social media so that all the customers are aware of the time and day of the launch party and actual day of the launch. The launch party will happen the night before the actual opening, on September 16th, where an open customizable bar will be available for all customers. The pre-launch party is to be able to give customers a sneak peak and feel of what the actual opening will be like, also to attract new customers that are unaware of the opening. Tiffany’s 1961 will open on September 17th, where there will be a DJ playing, as well as drinks, and an appetizer buffet to welcome customers, specifically millennial’s with such young and fresh atmosphere. The face of the campaign, Gigi Hadid, will pose with the press with Audrey and George Collection jewels during the entire opening, so customers can see the new collection being worn on. Following the opening press images from the opening night party and actual launch will be advertised on social media with Tiffany hashtags, to increase the 1961 customer awareness.

26 THE CREATIVE BRIEF

Post-Launch Operations Following the launch activities, 1961, will be advertised through the promotional book, featuring the new initiative that Tiffany is taking through the technology innovative approach, as well as, the newly introduced collection. Follow ups with customers will be made through mailing tags, where the customer will receive a 10% discount on the next customer jewelry purchase. This strategy will entice customers to come back to 1961 and purchase a custom made piece of jewelry. A live feed on the Tiffany website will be available for customers that miss their photo being featured on Times Square through the geotag for 1961, ensuring the customer receives their picture. The café location will attract a higher millennial demographic as well as fit a younger customer aesthetic through the incorporation of technology throughout the café.

Key Performance & Indicators Data will be collected and analyzed during the launch event to help determine the success of the initiative. This will help to determine if the initiative is wholesome, or if it could use some more room for improvement. Data such as purchases, traffic, number of interactions, social media interactions, and jewelry pieces made will be collected during the event.

Key Vendors & Suppliers Our key suppliers of our technology will be HP. Our programmers and system coordinators will be conducted by our partnership with Google and their “Art, Copy, Code”, which was an initiative created to explore new ways in which technology can help build brands in a digital world.

HP is our primary provider of technology because they have shown to be one of the top providers of touch screen computers. The computers used will be the HP Envy 14” that retails at $639.99. To partner and work with Google’s Art, Copy, Code would be a great step in helping our initiative prosper.

27 THE CREATIVE BRIEF

LAUNCH OPERATIONS ACTIVITY PLAN 2015

PRE - LAUNCH August

September

October

November

December

Interior Decor Advertising Hiring Staff Team Hiring Construction Team Hiring Tech Team Staff Selection Application of Licenses/ Partnerships Restaurant Chef Insurance Staff Training Building/Construction Social Media launch TECHNOLOGY Contact Group Order Tablets/Screens Hiring Tech Team Wall Screen Development Tablet Screen Development Tablet/Screen Software Configuration Times Square Software Configuration

LAUNCH OPERATIONS ACTIVITY PLAN 2016 Social Media Launch Sneak Countdown Launch Party (Sep. 16th Night) Launch/Opening (Sep. 17th) Advertising (Promotional Book) Follow Up (Mailing Discount) Live Feed on Website Cafe TECHNOLOGY Staff Tech Training Staff Training Testing Technology Testing Software Updates

LAUNCH August

September

28

POST-LAUNCH October

November

December

29

Integrated Promotional Plan Integrated

Integrated

Integrated

This integrated promotional plan is meant to show the major platforms that are integrated within the Tiffany & Co. brand. Their social media and app are integrated by their use of hashtags, content, and the audience they both reach. The email and catalog are integrated through similar content, advertising campaigns, text featured, and are subscription based. The store and the website are integrated because they become platforms giving the customers the opportunity to purchase products. When the customer uses Tiffany’s social media effectively there is a visible increase in their store and online purchases.

30 THE CREATIVE BRIEF

COMMUNICATION & PROMOTIONAL ACTIVITY PLAN

PRE-LAUNCH

LAUNCH

August

October

September

Social Media Hashtag Campaign Facebook Promo Instagram Promo Twitter Promo YouTube Video Promo Times Square Post

Online Collection Campaign (Website) Times Square Live Feed (website) Newsletter Countdown (Opening) Promotional Book Blue Book

Outside Sources Follow Up Blue Book

31 THE CREATIVE BRIEF

POST-LAUNCH November

December

Mock Times Square Campaign 32

Twitter Campaign

Facebook Campaign

Instagram33Campaign

“FOOD IS THE COMMON DENOMINATOR THAT BRINGS PEOPLE TOGETHER” - James Beard

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1961

Apps

Menu

Bespoke

Breakfast at Tiffany’s

Store

T to T

Social Media Live Feed

Weather

Paparazzi

Camera

Heritage

Legacy Stories

Mock Tablet Layout Menu to choose from a variety of light h’oeuvres.

A customizable jewelry bar.

A map that shows the route from Tiffany and Co. to Times Square, New York.

Tiffany and Co.’s latest feeds on social media.

Walk through Tiffany and Co.’s history.

Seen on: celebrities, influencer’s and VIPs. Album of customers’ love stories.

35 THE CREATIVE BRIEF

Bespoke tiffany Style

Metal

Bracelets

Rings

Earrings

Watches

Size

Carat

Checkout

Tiffany enchant

Bangle Bangle

Circle Edge Cuff

Infinity

Heart Toggle

The scrolled iron gates of opulent estates and secret garden inspired this ornate collection.

- Sterling silver - Size large - Narrow - Fits wrist up to 6.75�

QUANTITY

1

ADD TO SHOPPING BAG

Zoom In

Save Item

$500 Share your design:

Mock Bespoke Tiffany Layout

How It Works: First the customer selects the style of jewelry, in either gold, silver, or rose gold, followed by the size, they then select the stones they want to use (dragging them on the item to fill the specific spots if necessary) from textured and patterned to clear and sparkly, the possibilities are endless. Before they finalize their purchase they have the option of seeing it on someone, on different skin tones, and hand shapes, without the hassle of being unsure of how it will fit in the end.

36 THE CREATIVE BRIEF

The Audrey & George Collection Bracelets

Heart Toggle $375

Color by the Yard $200

Love Bracelet $175

Pierced $175

Earrings

Year Round $225

Open Heart $225

Pearl $200

Quadrifoflio $250

Rings

Atlas $350

Elsa Heart $250

Elsa Peretti Open $225

Palomas Crown $225

Enchant ring $250

Watches & Necklaces

Martin $3,000

Stanley $4,750

Alan $3,500

Elsa Tie 37$225

Venezialuce $225

Heart Bar $200

1961 Moodboard 38

Mock Menu Layout 39

40

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“THAT’S RIGHT. I’M JUST CRAZY ABOUT TIFFANY’S!” - Holly Golightly

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Financial Sales Forecast

Today’s society is addicted to technology and are becoming more reliant on it day by day. Millennials are at the forefront of this initiative and therefore the implementation of new technology, such as, touch screens within a cafe will entice this generation to spend more, bringing in the most sales. The entire cost of technology, which the highest and main component of our initiative , relates to $44,314.56, it accounts for a total of forty-seven screens. The total to put our initiative into play would equal to $1,121,617.26 which we predict with the success of 1961, Tiffany & Co. would earn back that much plus more in about 6 months to a year. We expect the cafe would double the profits with the use of tablets, geotagging, and customization Tiffany & Co. would raise their net sales and result in a profit for the company in 1 to 2 years. Our highest costs only account for an annual event and technology implementation, the event will bring more brand recognition and loyalty from our target customer, the millennial, which will result in benefiting Tiffany & Co. in the long run by generating more sales. With our new initiative we forecast Tiffany will double in profit post the launch, as well as, successfully closing the ‘gap’ they are missing by triumphantly reaching millennial customer. To invest 1 million dollars into a strategy we expect to make a million dollars plus in 1 year tops, is successfully doing exactly what we hoped this initiative would, as well as, bridging the gap between the millennials and generation X at the same time.

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HUMAN RESOURCES Store Manager Employees Construction Workers 60 days IT Workers 30 days Electricians 30 days Total Human Resources Cost

TECHNOLOGY HP Tablets OLED Transparent Screens Samsung LED Screens Times Square Screen

UNITS

HOURS

COST PER UNIT

TOTAL COST

1 10 5 2 3

9 8 8 4 4

$28 $20 $16 $55 $30

$56,000 $416,00 $38,400 $13,200 $10,800 $534,400

UNITS

COST PER UNIT

TOTAL COST

42 2 3 1

$639.99 $4,029 $2,699 $0

$ 28,159.56 $8,058 $8,097 $0

Total Technology Cost

INVENTORY Cafe

$44,314.56 UNITS

COST PER UNIT

TOTAL COST

6

$117.65

$705.9

3

$212.53

$637.59

3

$532.20

$1596.6

Complimentary 6

Complimentary $88.86

$0 $533.16

Long Chair

24

$199

$4,776

Bench Chair Chandelier Table Lights Floor Pot Plants Hosts desk Cashier Dessert Cart

1 3 12 3 1 2 2

$149 $93.80 $135.15 $63.99 $174.24 $99.99 $225

$149 $281.40 $1621.80 $191.97 $174.24 $199.98 $450

Monarch Specialties Two Top Tables Monarch Specialties Four Top Tables Monarch Specialties Six Top Tables Plates (China Set) Booth (chair)

Total Cafe Cost

$11,317.64

44 FINANCIAL PLAN

UNITS

COST PER UNIT

TOTAL COST

Carts Walk in Fridge & Freezer

3 1

$89.99 $10,000

$ 269.97 $10,000

Dishwasher Sinks Sink (smaller)

1 1 1

$2,188.01 $669 $72.99

$2,188.01 $6691 $72.99

Counters

1

$199.99

$199.99

Prep stations

3

$2,226.72

$6,680.16

Stoves

1

$2,744.99

$2,744.99

Pots/Pans

3

$119.99

$359.97

Chef Cutlery

2

$299.99

$599.98

Employee Uniforms (yearly)

10

$350

$3,500

Food

Comp

Comp

$0

Wine

Comp

Comp

$0

Drinks

Comp

Comp

$0

Kitchen

Total Kitchen Inventory Cost

$27,285.06 UNITS

COST PER UNIT

TOTAL COST

1

$350,000

$350,000

Times Square

$0

$0

Geo Tagging Live Feed

$0

$0

$200

$30,000

PROMOTIONAL Gigi Hadid Face of Campaign

Jewelry (launch party)

150

Total Promotional Cost

LAUNCH PARTY (7pm-11pm)

$380,000 UNITS

MINS/HOURS

COST PER UNIT

TOTAL COST

Performer The Weekend

1

30 minutes

$100,000

$100,000

DJ- Hannah Bronfman

1

Night

$10,000

$10,000

Lighting Package

1

$1000

$1000

Decorations Package

1

$500

$500

Paper Work / Permits

1

$800

$800

Tiffany Blue Box

1

$10,000

$10,000

Photographer

2

$250

$2,000

4

Total Launch Party Cost

$124,300

TOTAL COSTS

$1,121,617.26

45 FINANCIAL PLAN

By finding a way to merge the gap between the current Tiffany & Co. customer and the young millennial, we have created the perfect strategic initiative to enhance the customer’s experience and capitalize on the stores integration.

The opportunity for success lies in not reinventing Tiffany and Co., but by growing their market into rising the millennial. By keeping to Tiffany’s aesthetic, we bring to them a lavish rooftop experience, The 1961, tech-savvy cafe.

This store will help in showing a growing market for the brand that can help in improving the shopping experience by developing some more opportunities to better capture the thinker.

46 CONCLUSION

47

Appendix 48

HISTORY

Tiffany was established in 1837 by Charles Lewis Tiffany and John Young. Tiffany & Young, with $1,000, opened a small “fancy goods” store 259 Broadway st., in New York city. Inspiration was driven from the natural world around them, and they worked on a characteristic of simplicity, harmony, and clarity, traits that are still seen throughout the company and its services and products today.

In 1878, Charles Lewis Tiffany purchased one of the world’s largest and finest yellow diamond from the Kimberley Diamond mines located in South Africa. The diamond was so astonishing, Mr. Tiffany named it “The Tiffany Diamond”, and that marked the company’s legacy of craftsmanship. His world breaking shock that got him the name of Diamond King, came when he purchased the crown jewels that belonged to France & Spain.

Tiffany’s flagship store is located at the corner of fifth avenue and 57th street, New York, NY. The company opened its doors for business on October 21st, 1940. The world renowned store is featured with Art Deco influences, and granite and limestone. They have a brand personality that is high end, elegant, sophisticated and well respected amongst consumers.

MARKET OVERVIEW Size of the Jewelry/Accessories Industry

Tiffany & Co’s main product category is jewelry, however the company also sells products such as timepieces, leather goods, sterling silver goods, china, crystal, stationery, fragrances, and accessories. With its main category being fine jewelry, Tiffany & Co falls under the jewelry and accessory industry.

The jewelry and accessories industry is a highly competitive industry and makes up approximately 42% of total consumer spending. Companies who fall under this industry sells products ranging from jewelry to silverware and clocks. Demand in this industry is driven majorly on a consumer’s disposable income. Whether a company makes a profit or not depends on merchandising and the effectiveness of that brand’s marketing.

Larger companies in this industry can reap the advantages of economies of scale in purchasing, whilst smaller jewelers compete with large chains by attempting to establish favor amongst consumers. Diamonds and diamond jewelry account for this industry’s largest share of a company’s jewelry sales. Other outlets that bring in revenue are the sale of watches, silver flatware, and gift ware.

Inamo, a restaurant in London, implements interactive, ordering touchscreen tables, expanding the customer services markets which are beginning to broaden their horizons and step into the world of technology.

Like many fashion retailers, fashion owned cafe’s and restaurants are finding ways to attract the millennial all while staying on brand. Fashion house icons Ralph Lauren and Roberto Cavalli respectively introduced cafes’ which mimic the brand are retailers who can engage in this type of initiative, by implementing touch-screens, live feeds, or interactive screens within their establishments. They can easily adopt our initiative into their business model and effectively reach the new millennial market.

49 APPENDIX

MARKET OVERVIEW

- Wide Product Offerings

- Consumer spending fueled by emotions

- Strong Brand Identity

- Becoming Obsolete (out-of-date)

- Iconic Blue Box

- Decline in foreign spending

- Brand Equity

- Increase in the US$

- Counterfeit Goods

- Growth in the Asia-Pacific luxury markets

- Increased Competition - Slower Economic Growth - Irrelevant amongst Millennial compared with competitors

- Product Line extensions - Rise in weddings amongst Millennial - Updating store spaces to enhance consumer experiences

STRATEGIC INITIATIVE

By implementing a new strategic initiative Tiffany & Co. has reach the new millennial.

Its simple come join us and enjoy a free meal on us, when you purchase a piece for the exclusive Breakfast at Tiffany’s collection only sold at 1961. While you wait for your custom piece to made enjoy the interactive touchscreen table with options to explore the legendary heritage of Tiffany & Co., order (and view menu) from a variety of exquisite breakfast items, shop & explore the exclusive collection as well as existing collections, make your own, and of course view the iconic movie, all at your table/lap while you’re engulfed in the world of Tiffany. Upon your departure expect a sweet alert advising you to take a 15 min walk, 10 min taxi, or 12 min NQR, F, E subway ride to the historic Time Square for the ultimate surprise...to see your name and face in lights on the big screen!

50 APPENDIX

NET SALES

- Worldwide net sales rose 5% to $4.25 Billion - Worldwide net sales rose 7% due to sales growth

51 APPENDIX

Statistics of Tiffany & Co. Fifth Ave. Store Location

5th avenue is not only home to Tiffany and Co. but also many other luxury brands like Armani, Cartier, Salvatore Ferragamo etc. The people who reside around the 5th avenue are the Urban Uptowners with a household income of more than $150K. They are mostly white singles with no children and are around 23-70 years old.

ADDRESS: 727 5TH AVE NEW YORK, NY 10022

CURRENT COMMUNICATION & PROMOTIONAL

At the moment Tiffany and Co. spends approximately $284 Million or 6% of revenues on brand advertising, which accounts for catalogs, newspaper, magazines and digital media campaigns, which allows brand awareness through the diverse advertising channels. Magazines being Tiffany’s main advertising platform, they constantly feature their campaigns on high-end magazines like Harpers Bazaar, Esquire, and Elle. Especially through their social media presence, the brand encourages customers to spark conversation and engage with the brand. Hashtags have encouraged the Tiffany customers to share through social media platforms, by posting pictures with hashtags which generates a flow of brand-related content through social media by allowing the customer to take part in the experience.

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CURRENT CUSTOMER PROFILE Mature Millennial (Self- Buyer) Demographics: Mid 30’s Married, no children Graduate Plus Editor at Business of Fashion Makes $60,000 annually

Shopping Habits: Consumer choices directed towards “finer things in life” Fashion conscious and enjoys wearing her furry coats Goes to Tiffany to buy a $1,000 bracelet

Psycho graphics: Innovator (Self- oriented) Likes to sip on some Petrus from Paris Spa with friends on weekend is a must for her Oldie Goldies (Retirees) Demographics: Early 70’s Married, 2 children (married and settled) Graduate Plus Retired

Shopping Habits: Have high resources and “want everything” First in and first out of trend adoption Goes to Tiffany to buy a $150,000 diamond necklace

Psycho graphics: Experiencer (Spontaneous) Gets manicures done every weekend Very social, goes to Ladurée restaurant often The Achiever (Gift-Giver) Demographics: Early 30’s Single Graduate Plus Architect Makes $70,000 annually

Psycho graphics: Achiever (Goal- oriented) Like to be private with his life Passion for cars Shopping Habits: Productive consumer choices Goes to Tiffany to buy a $12,000 engagement ring

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CURRENT PLACEMENT / DISTRIBUTION

Sales for the America’s region consisted of $2.0 Billion, a 48% of the worldwide net sales, instead the Asia-Pacific region consisted of $1.0 Billion, a 24% worldwide net sale.

The Asia-Pacific region, which is Tiffany’s second most profitable segment instead holds 73 POS company-operated stores, with Europe and Japan holding a total of 94 POS all together.

Number of POS: 289 Tiffany and Co. operated stores, Tiffany.com, and catalog. On the other hand, the Europe and Japan region sales comprised of $1.2 Billion total, with a 25% worldwide net sale all together. Leaving 3% of the worldwide net sales to the merchandise sold to independent distributors and a 6% of the worldwide net sales accountable for the Tiffany e-commerce sales transactions. Tiffany currently is the only licensee for the privileges to make and sell jewelry that are designed by Elsa Peretti, where she retains ownership of the copyrights for her designs and trademarks. The license agreement with the Swatch Group company instead manufactures and distributes Tiffany and Co. brand watches worldwide.

SALES Tiffany & Co spends 6% of revenues on advertising 2012

2013

2014

2015

$250 Million

$253 Million

$283 Million

$284 Million

6.6% of total sales

6.3% of total sales

6.7% of total sales

6.7% of total sales

CURRENT CRM ACTIVITIES

Tiffany and Co. is dedicated to provide their exceptional customer service at anytime for their customers, whether it is via email, telephone, or in stores with acknowledgeable professionals. To ensure that the customers are receiving the right services, the brand owns a Customer Fulfillment Center warehouse that is based in New Jersey which allows for direct-to-customer orders to ensure superior shopping experience. The company provides customers with 24/7 assistance for product ordering and finding for perfect gifts over telephone or emails, where specialists help select designs that reflect the client’s lifestyle, activities or hobbies. Through Tiffany’s exceptional customer service, they are reinforcing customer loyalty, by providing them with special membership discounts or guaranteed free shipping over a certain amount.

54 APPENDIX

INTEGRATED PROMOTIONAL PLAN Tiffany 1961 will regularly be advertised on all social media platforms, to ensure that millennial’s are informed with the latest updates taking place at 1961. To keep the millennial customer as informed as possible, new product releases, promotional discounts, and events will strongly be advertised through social media; Facebook, Instagram, Twitter, and YouTube. By focusing on this communicational platform rather than magazine campaigns, our millennial customer will have a greater understand and awareness about Tiffany’s innovative initiative. The “build your own” custom piece of jewelry will be advertised through behind the scenes videos that will be posted on the Tiffany YouTube channel and then shared through the social media pages to show the millennial customer how their custom piece is created just a few steps from where they are seated to enjoy their meal. As a second option, the customer can receive the video at their home upon request, with a catalog inside featuring coming soon additional products to the custom made line. After the custom piece is made the millennial customer can have a picture of themselves featured in Times Square with the piece of jewelry, which will be feature through the geotagging connectivity. These engaging advertising strategies will draw the millennial customer closer to the brand, ensuring their loyalty and the sharing of brand awareness through other millennial customers.

INITIATIVE PRE-LAUNCH, LAUNCH, & POST LAUNCH OPERATIONS Pre-Launch: The face of 1961, Gigi Hadid, will be a part of our five day countdown leading up to the grand opening of the cafe. There will be social media posts, as well as live feed countdown on the website and sneak peaks on the company’s newly formed Snapchat account.

E-invites will be sent out two nights before the official launch of the party to an exclusive list of a-listers and bloggers.

Launch: Doors to 1961 will open promptly at 7pm, Friday September 16th, 2016. Set up will begin six hours before the event for rehearsals and positioning of the Tiffany blue and white spotlights. A Tiffany blue carpet will lead up to the doors of Tiffany & Co. Fifth Avenue, New York location with a Tiffany & Co. backdrop for paparazzi exclusive shots. In the center of the streets at the front of Tiffany’s New York showroom will be a giant Tiffany blue box. Food prep will begin at 3pm with a chef special appetizer, two select salads from the menu, and two select entrées. The dessert cart will be open all night for guests to enjoy. DJ Hannah Bronfman will start playing at 6:30pm through the end of the night, and performance by Zayn Malik will start at 8pm, with three song performances. The night of the party will be a pre reveal to our Bespoke Tiffany customizable bar, where guests will be allowed to create anything no more than $250 with access to purchase from previous existing collections. Gigi Hadid will be there to show guests what she has pre created as well as sharing it on Tiffany & Co’s social media feed and Snapchat.

55 APPENDIX

3D MODEL PROCESS IMAGES

56

57 THE CREATIVE BRIEF

58

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