This document contains information about Tiffany & Co., including the names of four MBAE students analyzing the company, Tiffany's history and products, financial overview, and analyses using various business frameworks. It discusses Tiffany's brand strength, revenue streams from jewelry sales, and potential threats from competitors like Blue Nile. Porter's Five Forces, demographic trends, mass customization, and Christensen's disruption theory are applied to understand Tiffany's position and recommend expanding their target market.
8. Brand Overview 1880 Tiffany originated its six-prong setting with the first diamond setting the diamond away from the band, Expanding the diamond’s brilliance. Permitting light to shine through the setting Innovation Introduction of lower-priced items to create an “ Aspiration Brand”
9. Brand Overview “ We believe that the Tiffany blue box and the Tiffany & Co. brand have developed into one of the best-known symbols for quality, prestige and value in retailing, and that the value of this brand will continue to increase over the long term” (Kletter, 1999, ¶16) The Tiffany Experience Focus is on customer service 6 – 8 weeks training for store representatives Training on how to prepare the Blue Box
10. Business Model - Financial Overview Revenue Streams: 87% of Net Sales Jewelry 13% of Net Sales Timepieces, tableware and all other products Sales Mix by Geography: 57% of Net Sales Americas 33% of Net Sales Asia Pacific 10% of Net Sales Europe Tiffany & Co. Brand Jewellery Sales by Type FY08 Tiffany & Co. Brand Jewelry Sales by Type FY08 Type of Jewelry Description Average Price Percent of Total Sales A Gemstone jewelry and band rings $3,300 27% B Diamond rings and wedding bands $3,000 20% C Non-gemstone gold or platinum based jewelry $700 11% D Non-gemstone silver based jewelry $200 30%
17. Dent’s Demographic Analysis TIF’s Main Revenue Source: Engagement Rings -Average U.S. Marrying Age : Men 27.8, Women 26.0 -Next Boom? Per Dent will be 2023 (population median age of 48) -Per Dent’s theory: TIF’s spike in growth happened in 2003 (when the population was getting engaged) -Solution; TIF should be Lean and Innovative -New Target Market; TIF should also target an older demographic to meet the needs of the next large boost in population
While known best for their diamond jewelry, Tiffany has begun integrating more lower-priced items into their collections in an attempt to attract younger, less-affluent consumers. These products consist of more sterling silver, which includes the increasingly fashionable “ Return to Tiffany & Co.” engraved collection of bracelets and necklaces designed as chains with circular or heart-shaped dog tags. With prices starting as low as $175, this collection has become popular among male customers buying for their wives or girlfriends as young women continue to aspire to own something from the brand (Chee Kee, 2004, ¶8)
knock off market (high end on line jewelry without the high price) (men are the majority of the buyers, yet 86% of advertising is to women)
Tiffany moved from Focused Differentiator to Broad Differentiator with the introduction of the return to Tiffany silver line in 1995
* DO WE NEED A CHART which explains what Co-opetition is? See sales force model
Dent’s theory His model shows 80 year cycles of how the economy moves through periods such as inflation and innovation, to growth and boom, to deflation to a maturity boom. He shows the correlation between the waxing and waning populations, and the respective economic growth or decline as a result of those demographic trends. Dent uses centuries of economic data to show these historic correlations in an effort to show the validity of his predictions.
Can I personalize or customize a Tiffany gift? For non-business account holders, customization of items ordered online is limited to the engraving of three initials on selected gifts. Business account holders have more customization options and access to extensive customization services through our business gift consultants. Contact our Gift Consultants to discuss additional engraving, etching and embossing options available when you make a purchase through one of our stores or by calling, 800-770-0080.
Clayton Christensen - The Innovator's Dilemma Blue Nile cut deals with loose diamond suppliers to provide large diamonds on a consignment and proceeded to design a site that offered Internet savvy consumers an information intense environment from which to shop; all in the convenience of their office or home. Blue Nile cut deals with loose diamond suppliers to provide large diamonds on a consignment and proceeded to design a site that offered Internet savvy consumers an information intense environment from which to shop; all in the convenience of their office or home. Few people would tell you to pay a lot more than necessary for a mounting, or a diamond, for that matter. The truth is that only a relatively few individuals do shop and buy at Tiffany & Co for diamonds and/or mountings. Those who do shop there would likely not shop elsewhere. To them, the money is well spent and they are content. Just look at the success Tiffany & Co. enjoys. For the majority, the opposite might well be true. Saving a buck and buying right are smart options for nearly everyone to look at. A small minority do not need to examine these options or choose not to. That is real freedom of choice. Is a BlueNile purchase the equal of Tiffany & Co? I think the answer would very much depend if you consider yourself a part of the majority or of the minority I have mentioned above.
