Business Case Study Tiffany & Co.
Since then, Tiffany & Co. has used the colour extensively on promotional materials, including boxes and bags. Also known as robin’s-egg blue or forget-me-not blue, the colour was chosen during the heyday of turquoise gemstones in 19th-century jewelry. It was also a choice of Victorian brides, who typically present a turquoise, dove-shaped brooch to their attendants as a token of appreciation.
The Tiffany Blue is also protected as a colour trademark (Gorman, 2011). It is produced as a private custom colour by Pantone, under PMS number 1837. The number is derived from the year of Tiffany’s beginnings. As a trademarked colour, it is not publicly available or printed in the Pantone Matching System swatch books.
Tiffany Blue Box:
The Tiffany blue box is perhaps the most identifiable element associated with Tiffany and Co. As significant as the gift it wraps, the blue box conceals a cherished gift that promises quality, sophistication and superiority. Upon sight, most will feel a flutter of anticipation in their hearts. To ensure that the image of Tiffany’s will not be diluted, Charles Lewis Tiffany made a rule that these boxes can only be acquired with a Tiffany purchase.
The Tiffany setting is a 6-prong solitary engagement ring setting, and it remains one of the most iconic rings in history. Till today, it is still Tiffany and Co’s best-selling engagement-ring design (Vancouver Sun, 2013), and is a timeless gesture of love and commitment.
Social Media Platforms:
Tiffany & Co. reaches out to existing and potential customers through tapping on the world’s most widely-used social media platforms. They have a strong following, with more than 6 million “likes” on Facebook, and over 1 million on Instagram. With regular posts showcasing their latest products, they have established a strong online presence. They constantly update users on the latest happenings with the brand, making them feel more connected and closer to Tiffany & Co.
ii. Explain the resulting Brand Identity and Personality
Never seen without its crowning white ribbon, the Tiffany Blue Box is the seal to a customer’s Tiffany experience. The Blue Box goes a long way in enhancing the perceived value of a Tiffany product. Carrying the brand’s iconic bright blue shade, it even catches the eye of those standing a distance away, as if unable to contain the dazzling beauty it holds inside. It subtly announces which brand it belongs to without using a single word, and this silent association with the overall image and brand equity of Tiffany & Co. is what makes the box itself desirable and impactful in making the product even more desirable.
As a luxury jewelry brand, it can be observed that Tiffany & Co. presents itself as sincere and elegant to consumers through its marketing and packaging. It appeals to them with emotional benefits such as eternal love, romance, beauty and commitment. Thus, forging a personal connectedness and making them feel a sense of exclusivity.
iii. Explain the Brand Positioning (as desired by the brand owner)
When one thinks of Tiffany and Co., words like “wedding”, “engagement” or “gift” comes to mind. And since 1837, these are words that have been synonymous with the brand’s image. Through the use of the certain qualities in brand positioning, Tiffany and Co. has continued to position itself as the standard of quality and sophistication throughout its history, and effectively reach out to its upper-class consumers.
In most traditions, jewelry is typically presented on special occasions. But what is most apparent in Tiffany and Co.’s positioning is that it is a brand that consumers can go to for any occasion or gift giving moments, apart from engagements and weddings. This is reflected in its product lineup, which offers cardholders, watches, bags and perfume other than rings and bracelets.
Tiffany and Co’s target market can be divided into different segments. In terms of demographics, Tiffany and Co most effectively reaches out to the affluent or the middle-class who can afford to spend on occasion. These segments are targeted as they possess the disposable income to spend on the company’s products. The main segment of consumers in which Tiffany and Co would be most familiar to, would be those who are planning to propose, planning a marriage or consumers who are already married. As Tiffany and Co already has a storied reputation in the engagement industry, it is not hard for it to compete for market share as it already has an established place there, and is a preferred choice for proposals. In addition, it caters to the consumers needs for a quality engagement or wedding ring, and their wants for a luxurious product.
Further more, Tiffany and Co. utilizes psychographic segmentation by segmenting its customers according to their lifestyles, tastes, and personality. Hence, another target market would be women who aspire to be upper-class Tiffany’s women and indulge every so often, depending on their budget limitations or lack thereof. This is reflected in their numerous collections that can be categorized according to spending behavior, and personal taste in jewelry – be it simple (Elsa Peretti’s pure silver collection), or elaborate with more exquisite gems (Tiffany Jazz, Victoria and Legacy).
Next, Tiffany and Co. also utilises age segmentation by targeting the younger generation with collections such as the Tiffany Keys and Return to Tiffany – a more affordable collection that still bears the classic design and sophistication of Tiffany and Co. In terms of gender segmentation, it can be observed that Tiffany & Co.’s primary target market would be upper-class women. As such, their marketing strategies are typically tailored towards women although their men’s products constitute a portion of their profits. Women are the main influencers behind men, in the purchase Tiffany’s products. In fact, most of the company’s marketing and promotional efforts focus on these concentrated target markets as it is its niche and has been so for its history.
When viewed in whole, the above segmentation decisions are a brand and marketing strategy that works to maximize coverage of sales by touching on as many aspects of the market as possible to gain the most revenue and market share, while maintaining Tiffany and Co’s elite position in the jewelry industry and the market.
The exclusivity of Tiffany and Co. products is reflected in its price, and it adopts a premium pricing strategy for its products. This makes Tiffany and Co. less accessible, unlike a retailer like Lee Hwa jewelry or Citigems, and evokes associations of rarity, hereby placing it on a pedestal as a luxury product.
Customers may also get the impression that Tiffany and Co.’s products are priced at a higher range due to its history of fine quality. The ability to afford luxury products such as Tiffany and Co. is also seen as a status symbol. Hence, the general perception that comes from owning a luxury product or wearing expensive jewelry may make consumers feel good about themselves, and experience a sense of exclusivity.
Lately, however, Tiffany and Co. has come out with collections that are more affordable to the public. As mentioned above, Tiffany and Co. recognizes a growing demand for luxury products from middle-income individuals. Hence, it has introduced product lines including more sterling silver to appeal to such individuals and also a younger crowd.
Finally, the exorbitant price is also a result of value-added pricing by the brand, as it includes after-sales services that come with the product, such as polishing and a lifetime warranty. These help to enhance the consumer’s perception of the product’s quality and justify the high price of a Tiffany’s product.
The retail environment of Tiffany and Co. can be described as posh and upscale. Other than its flagship store in Ngee Ann City, Tiffany and Co. has based its premises at other high-class locations such as The Shoppes at Marina Bay Sands and Changi Airport, where other luxury brands can also be found. The geographical positioning of its outlets mirror that of its worldwide strategy – in reinforcing the brand’s image as a luxury product through association with others brands.
Also, outlets are not typically found at neighbourhood malls or factory outlets, but rather, the store itself. Finally, the interior design of the store features a unified design scheme and that is well-designed to reflect the premium quality of the brand. Conceptualised by architects and interior designers, the store is made of carved glass, marble, stainless steel, and Tiffany Blue. Such elements go towards creating an iconic environment that will be recognized and remembered for its multiple aspects of sophistication and elegance.
Points of Difference
Product packaging – Blue Box
Tiffany & Co.’s trademark packaging since its establishment has been the Tiffany Blue Box. Easily recognisable in its iconic shade of turquoise, the little Blue Box has become an effortless representation of the high-end jewelry brand. On its own it is regarded as a piece of art, hence, the Blue Box is not for sale and can only be taken out of the store if it holds a Tiffany product.
Today, it is also an icon of prestige and sophistication, representing years of history of coveted Tiffany products. The sight of the distinct blue package to a gift recipient is promise enough that an exquisite gift awaits.
In its years of existence, Tiffany & Co. has achieved something its competitors can only hope to attain – a strong brand image and presence in the industry. Although these other brands may have emulated the leading company to produce similarly elegant packaging, the emotions that the Tiffany Blue Box manages to elicit cannot be replicated.
Collaborations with renowned designers
Tiffany & Co. collaborates with acclaimed designers regularly to create new products and shake up their product offerings with exciting pieces. This practice is in line with their long-running tradition of nurturing talents in the field of design, and making jewelry of impeccable craftsmanship. Some famous designers that Tiffany has worked with include Frank Gehry, Elsa Peretti and Jean Schlumberger.
With Tiffany being a world-famous brand with a rich legacy, they have the top pick when it comes to choosing which designers they wish to work with, unlike competing brands who lack the reputation and expertise to attract top names.
Tiffany Diamond Certificate and Product Warranty
Each crafted Tiffany Diamond comes with a certificate that has grading and gemological information specific to the diamond. Besides that, Tiffany also offers lifetime services for every purchase made – including cleaning, inspection and ring sizing.
Its competitors pale in comparison – Blue Nile only offers a 30-day product warranty, and Pandora’s 1-year warranty is applicable only to manufacturer’s faults. Hence, Tiffany’s unbeatable service offerings prove that the company is dedicated to cementing their position as the leading, and quality jeweler.