Tiffany & Co. By: Jessica Silva, Nicole Koorndyk, Spencer Cooper, & Teresa Ruvalcaba.

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Presentation transcript:

Tiffany & Co. By: Jessica Silva, Nicole Koorndyk, Spencer Cooper, & Teresa Ruvalcaba

Background Information: ●Founded in New York City in 1853 by Charles Lewis Tiffany & John F. Young. ●Sought to become the leading competitor in the jewelry market by creating a brand that offers value, quality, superior design, & exclusivity ●Target those in the middle to high income bracket ●Strong brand name & customer loyalty through the infamous Tiffany Blue Box

Products: We will focus on Tiffany & Co.’s.925 Sterling Silver products ●.925 describes the purity of the silver ●Bracelets ●Necklaces ●Earrings ●Rings

Price Per Unit:.925 Silver WeightWorth in Dollars 1 Gram$ Grams$ Ounce$ Pound$ Kilo$

Sterling Silver Infinity Bracelet Weight = 14.3 grams $8.44$175 Sterling Silver Return to Tiffany with Large Round Charm Bracelet Weight = 29.6 grams $17.46$285 Sterling Silver Return to Tiffany Heart Lock Bracelet Weight = 22.8 grams $13.45$150 Bracelets: WorthPrice

Necklaces: WorthPrice Shopping Bag Pendant Weight = 4.8 grams $2.83$225 Tiffany’s Key Knot Pendant Weight = 9.9 grams $5.84$350 ID Clip Necklace Weight = 18.6 grams $10.97$250

Earrings: WorthPrice Heart Shaped Return to Tiffany Weight = 10 grams $5.90$150 Sterling Silver Bar Drop Earrings Weight = 11 grams $6.49$275 Circle Shape Script Earrings Weight = 9 grams $5.31$200

Rings: WorthPrice Sterling Silver Heart Ring Weight = 10.7 grams $6.31$250 Sterling Silver I Love You Band Weight = 15 grams $8.85$125 Sterling Silver Classic Tiffany Ring Weight = 19 grams $11.21$150

Price Elasticity: Price Elasticity of Demand (PED) measures how much a quantity is demanded for a product when the price changes for the product. PED = Percent change in demand for the product Percent change in price of the product

Price Elasticity Cont.: ●Tiffany & Co..925 Sterling Silver Jewelry IS Elastic ●If price goes up, quantity demanded will go down ○ There are many substitutes for Sterling Silver Jewelry from other brands and the jewelry is considered to be an expensive luxury good, not a necessity. ○ The jewelry has a long life span, meaning it is not often a regular purchase

●Tiffany & Co. prices are high which causes customers to be more aware and responsive to price changes Example: If we increase the price of the I Love You band from $150 to $160 Percentage change in demand of the Product = -9.24% Percentage change in Price of the Product = 5% PED = % change in demand of the Product → -9.24% Price Elasticity Cont.: % change in Price of the Product → 5% PED = %

Demand: ●A consumer’s desire and willingness to pay a price for a specific good or service ●Some factors that affect demand: ○ Price- amount of money given as payment for something ○ Competitors- a company in a the same industry that offers a similar product or service

Demand Curve: Price Quantity D2 D1

Reasons of Purchase:

What We’ve Learned...