Brand Consultation Tiffany & Co. Brandon Palmer Eric Chowaniec Eric Ballman

Presentation Agenda About Tiffany and Company Direct and Indirect Competitors Primary Research Recommendations

Tiffany & Co. Brand Overview One of the leading competitors in the jewelry industry Merchandise includes jewelry, timepieces, sterling silverware, fragrances, and accessories Jewelry makes up most of net sales and key products are Diamond rings, sterling silver bracelets, and necklaces

History of Tiffany Founded by Charles Lewis Tiffany and John B. Young in Brooklyn, New York in 1837 Company supplied ceremonial swords, flag, surgical tools Redesigned the Great Seal of the United States one-dollar bill At the end of nineteenth century became known for 127 carat Tiffany diamond

User Profile Upper-Middle class Mostly Women Affluent Self Buyers between the ages of 20-35 70% Gift-Giver 30% Self-Buyer

Tiffany & Co. Current Marketing Strategy HardWear campaign Lady Gaga Rebranding towards millennials Reference groups

Direct Competitors KAY Jeweler Strengths Years of Experience Using many sales tools to enhance in customer assistance Advertise in many different forms of media Weaknesses Needs to increase retail presence Global Penetration is low compared to competitors

Indirect Competitors Blue Nile Strengths Low price Ability to customize jewelry Category Killer Weaknesses Lack of Physical Store Low Visibility

Tiffany & Co. Strengths and Weaknesses Positive brand image Well known for its’ sterling silver jewelry & blue box 70 stores and also through 100+ international stores Weaknesses: Limited product range Expensive Low market share BRANDON

Political & Social Influences Decreasing marriage rate Decrease in industry revenue Trump Tower 14% drop in sales Flagship store generates 8% of total sales BRANDON In recent years, the marriage rate has declined significantly, resulting in a decrease in industry revenue since most jewelry stores make money from engagement rings Tiffany & Company’s flagship store is located directly next to the Trump Tower. Tiffany experienced a 14% drop in sales as a result of the recent election. Protest pushed away a lot of customers. Their flagship store generates 8 percent of the company’s total sales, therefore its location has a huge impact on the company

Primary Research Target Segment: Young Adults Demographic: College females, aged 19-22. 1st group (VA & North East), 2nd group (VA) Research Objective: Determine how young adults perceive Tiffany & Company and to improve the condition of the company as a whole BRANDON -Demographic was college females aged 19-22 2nd group (all from VA) 1st group (VA & North East) -we decided to conduct two focus groups targeting young adults since it is one of Tiffany & CO.d market segments --However, our primary objective is to improve the condition of Tiffany & Company as a whole.

How Focus Group Perceived Tiffany & Co. Brand image Engagement rings, expensive, blue box Brand personality “Imagine you were in the mall and saw a woman carrying a bag from Tiffany& Co.. How would you describe this person?” Sophisticated, upper-class, successful, preppy Brand awareness Aided recall: got all, but Blue Nile Unaided recall: Zales, Tiffany & CO., Kay, David Yurman, Blue Nile, and Pandora BRANDON -Brand Image: Expensive brand, known for engagement rings carefully wrapped in Tiffany’s famous blue box. -Brand personality: We asked a situational question, “Imagine you were in the mall and saw a woman carrying a bag from Tiffany and Company. How would you describe this person?” -they described the woman as someone who is sophisticated, upper-class, as well as successful. -Brand awareness: -Unaided recall: Zales, Tiffany & CO., Kay, David Yurman, Blue Nile, and Pandora -Aided recall: got all, accept Blue Nile (only 1 girl got it right) -Attitudes: -Higher price compared to competitors Next Slide Quotes -Agreed they weren’t going to purchase anything from Tiffany anytime soon -They said it was a highschool trend to feel preppy and once they got to college money became a big factor so they are purchasing more affordable jewelry to keep up with trends Competition -Blue Nile is mostly known for their engagement gifts and high quality -Pandora is known for their charm bracelets and crown in their logo They also thought of pandora as a high school trend that faded out -They thought of Jared has a middle tier brand -They thought of Kay as having a romantic slogan and being more upper class than Jared Attributes: -First asked the girls what they looked for in jewelry (long-lasting, reasonably priced, stylish, and good quality) -We then ask them to rate 3 attributes on a scale from 1-10, 10 being most important (price, style, quality) Price and style were the most important to the girls.

Attitudes Towards Tiffany & Co. Higher price compared to competitors Tiffany brand isn’t in style “For me I would get a piece of Tiffany jewelry every year, but that was when I was younger.” “There is no line of affordable things we would ever buy or is trendy, it’s all like pieces you would get as a gift.” BRANDON This is one of the videos we showed them and asked for their opinions on the video. -They thought that it’s just a stereotypical white girl and typical silver jewelery, exactly what they thought of the brand. They told us that a new advertisement with a reputable spokesperson could influence girls their age -These quotes from our focus group help show that Tiffany & Company isn’t something they want or are going to buy unless they receive it as a gift -Brand Image: Expensive brand, known for engagement rings carefully wrapped in Tiffany’s famous blue box. -Brand personality: We asked a situational question, “Imagine you were in the mall and saw a woman carrying a bag from Tiffany and Company. How would you describe this person?” -they described the woman as someone who is sophisticated, upper-class, as well as successful. -Brand awareness: -Unaided recall: Zales, Tiffany & CO., Kay, David Yurman, Blue Nile, and Pandora -Aided recall: got all, accept Blue Nile (only 1 girl got it right) -Attitudes: -Higher price compared to competitors Next Slide Quotes -Agreed they weren’t going to purchase anything from Tiffany anytime soon -They said it was a highschool trend to feel preppy and once they got to college money became a big factor so they are purchasing more affordable jewelry to keep up with trends

How Focus Group Perceived Competitors & Attributes Blue Nile: Engagement gifts & high quality Pandora: Charm bracelets & crown in their logo High school trend that faded out Jared: Middle-tier jewelry Kay: Romantic slogan & more upper-class than Jared Attributes considered when purchasing jewelry: Long-lasting, reasonably priced, stylish, & good quality Scale (1-10): Price (8), Style (7.5), Quality (6.75) Competition -Blue Nile is mostly known for their engagement gifts and high quality -Pandora is known for their charm bracelets and crown in their logo They also thought of pandora as a high school trend that faded out -They thought of Jared has a middle tier brand -They thought of Kay as having a romantic slogan and being more upper class than Jared Attributes: -First asked the girls what they looked for in jewelry (long-lasting, reasonably priced, stylish, and good quality) -We then ask them to rate 3 attributes on a scale from 1-10, 10 being most important (price, style, quality) Price and style were the most important to the girls.

Recommendations More celebrity endorsements Introducing a subsidiary Focus more on gift-givers Slight discounts

Celebrity Endorsements Commercials and over the long-term Need to be well-liked Malia Obama Young, smart, and is very well-known (as our ex-president’s daughter) College student Someone to look up to Criticism Yet received much more appraisal than criticism Chelsea Clinton & Ivanka Trump Focus groups agreed she would be the best candidate

Adding a Subsidiary Great way to reach the millennial market segment according to focus groups Only receive Tiffany products from family members or significant others On special occasions, such as birthdays or holidays Focus more on college and high school students Price range would be more in the $100 to $200-dollar range More affordable, without taking away the luxuriousness Should focus on silver and gold jewelry, as they are trending today

Focusing more on Gift-Givers 70% of Tiffany consumers buy products to give to others Majority of products sold are gifts for others’ special occasions Television commercials for men Number of TV ads needs to increase around special holidays Christmas, Hanukkah, Mother’s Day, and New Year’s Competitor advertisements increase during over holidays Men are clueless TIffany needs to show them why they are better!

Discounts Would remove the classy feeling of wearing Tiffany Price is biggest obstacle Lowering would take “Tiffany” out of Tiffany & Co. Brand image would be damaged Certain discounts would not change consumer opinions Subsidiary Student discounts Parents can still purchase with student ID Ethics Reward for pursuing a higher education Focus groups were positive this would increase sales NO ADVERTISING Would remove the classy feeling of wearing Tiffany

Questions?