Tiffany And Company

I. Introduction

The Tiffany & Company is introducing a new product line by the name of Tiffany's Essentials. The line will offer authentic luxury designer handbags along the lines of Gucci, Chloe, Dior, Fendi, Prada and many more. As concept of luxury changes, marketers of high-end products are wrestling with the challenges of maintaining exclusivity while obtaining higher sales. Having a well-known name as Tiffany and Company we have no limitations to create luxury pieces for the luxury lifestyles. The following paper will emphasize our product, our target market and our marketing objectives as to how we will market our handbag using a vital marketing mix. It will also provide our major competition in both the diamond industry as well as the luxury handbag industry. The problems and opportunities involved in creating Tiffany's Essentials will also be acknowledged.

II. Situation Analysis

A. Background Research

Tiffany & Co. was first established on September 18th, 1837. The company was originally opened at 259 Broadway in New York City as Tiffany & Young (named after Charles Lewis Tiffany and John B. Young) and was known for selling stationary and fancy goods. Their total sales for the grand opening were $4.98, a considerable amount of money for this particular time period. The distinctive shade of blue that everyone tends to associate Tiffany's with was also established in 1837. "The color was adopted for use on Tiffany & Co. boxes, catalogues, shopping bags, brochures, as well as in advertising and other promotional materials," (Tiffany & Co.). In 1845 the first Tiffany's catalog was established. This is a tradition that Tiffany's continues to use today as a well of advertising. In 1853 Charles Tiffany takes control of the business and changes the name of the company to strictly Tiffany & Company. Tiffany & Co., became known for it's unique silver and also supplied the Union Army with many of the supplies during the Civil War, including: swords, flags and surgical implements. In 1878 "Charles Tiffany purchases the Tiffany Diamond, one of the world's largest and finest fancy yellow diamonds," (Tiffany & Co.). In 1886 the famous "Tiffany Setting" was introduced. This consists of a 6-prong diamond solitaire engagement ring. In 1926 "Tiffany's standard of purity becomes the official standard for platinum in the United States," (Tiffany & Co.). In the year 1940 Tiffany & Co. decides to move its headquarters to its current location at Fifth Avenue at 57th Street in New York City. In 1963 the first store located outside of New York City opens up in San Francisco, California. In 1972 "Tiffany & Co. establishes its presence in Japan with the opening of a Tiffany boutique in the Mitsukoshi Department Store," (Tiffany & Co.). In 1986 Tiffany & Co. opens a store in London, with intent to expand their stores across the globe. Tiffany & Co. currently designs, manufactures and sells jewelry, watches, and crystal glassware. It also sells other timepieces, sterling silverware, china, stationary, writing instruments, fragrances, leather goods, scarves, and ties. You can purchase any of these items at any Tiffany & Co. stores located throughout the world.

B. Product Life Cycle

The new line designed by Tiffany & Co. is in its introduction phase, due to the fact that it is a brand new product. As the line continues to be advertised, and more consumers are aware of the new products the life cycle of the invention will continue into the growth stage, and then onto the maturity stage. The goal for Tiffany & Company's new line is to never make it to the decline stage of the product life cycle. This can be done by brand loyalty and possible slight changes in the product to make the product in the product awareness cycle once again.

C. Distribution Strategy

Because of the fact that the distribution strategy for a company is an important aspect in the overall business of a company, this portion of the product and overall company was deeply investigated. The actual distribution of our new line of handbags is exclusively sold from Tiffany & Co. stores located internationally around the world. You are unable to buy Tiffany's items at any other stores, such as department stores or discount stores. The others involved in the distribution chain include: wholesalers, brokers, dealers, and retailers. This also becomes easy to resolve because of the fact that Tiffany & Co. is responsible for designing, manufacturing, and selling all of their own products.

D. Price Strategy

Based on the research done on Tiffany & Co. items, it has been concluded that by looking at other possible competitors, the size of the bag, and carat weight of the diamonds on the bags, our line of handbags will range from $10,000.00 to $30,000.00. Tiffany's is known for their high class items which makes many consumers willing and able to spend the money on expensive items, making this items affordable to many of Tiffany's loyal customers.

E. What are the distinctive features and competitive advantage(s) of this brand?

The fine jewelry market is highly competitive, but even more so among upscale luxury brands. The top tier rivalries of Tiffany and Company are: Hermиs, Bulgari, Cartier, Richemont, and LVMH. Other competitors include: Asprey, Bulova, Chanel, Fortunoff, Gucci, H. Stern, Movado Group, Rolex, Van Cleef & Arpels, and Yves Saint-Laurent Group ("Tiffany & Co.").

A critical way to compete for customers within the industry greatly depends on the quality of merchandise, presentation and assortment of a company's merchandise along with customer service, marketing techniques and overall brand image. Also, many companies compete for brand exclusivity and also face competition from suppliers for certain resources.

There are numerous distinctive features and competitive advantages of the Tiffany brand. For starters, Tiffany's has a strong brand name and image; this will set their product line apart from their competitors. Tiffany is one of the leading brand names in the fine jewelry market, and will soon become one of the leading names in the luxury handbags market. It is one of the world's premier jewelry designers and retailers. The Tiffany brand was ranked 96th in the top 100 global brands list published by www.stores.org in 2006 ("Tiffany & Co."). In 2006, BusinessWeek-Interbrand valued the Tiffany brand at $3,819 million ("Tiffany