MK9707 MSc Marketing 

Assignment Sample MK9707 MSc Marketing 

1. Introduction

Tiffany and company are one of the best jewelry brands in the USA. It deals in jewels, timepieces, luxury tables, and personal and household accessories. It was founded in 1837 by Charles Lewis Tiffany. All its jewelry products are placed in a blue box which is recognized as the symbol of celebration of life’s most precious moments and an ultimate gift. The company has more than 100 showrooms in seventeen countries to continue the tradition of the company’s excellence. The company uses a blue box as part of its unique branding. It is the company’s registered trademark. Tiffany’s jewelry products are worn by many Hollywood celebrities, athletes, politicians, and industry leaders.

Tiffany gives special focus to its unique design which is not a surprise as the company is always famous for its uniqueness and innovative ideas. Louis Comfort Tiffany who was the son of Charles Lewis Tiffany was regarded as one of the best painters and designers of American decorative art. His birth took place in New York in 1848. Tiffany earned many prizes, honors, and international status at the universal exposition in Paris (Pei Ling & Shu Min, 2019).http://MK9707 MSc Marketing Tiffany has a wide variety of glass made of eclectic colors and techniques. It is top in class. Tiffany came to an idea where the glasses discarded after the production of stained glass were integrated, and put together to make decorative lamps. Tiffany was highly influenced by the Japanese art form which includes nature in all its art forms mainly. Later Tiffany allocated this nature-based design to its own jewelry pieces.

1.1 Background

Tiffany and co. have a lot of subsidiaries under it. Jewelry retailing is its major function under the main subsidiary Tiffany and company. Its product portfolio includes an extensive selection of jewelry (83% of net sales in 2006),http://MK9707 MSc Marketing as well as timepieces, sterling silverware, china, crystal, stationery, fragrances, and accessories. Product designing, manufacturing, and retailing are done by other Tiffany and company and other subsidiaries. This company has always kept the luxury and the high fashion change at the first place of their action which has made this brand highly valuable and thus has experienced a quite high price of the products as compared with other brands (Ttiffany.com, 2022).http://MK9707 MSc Marketing The brand has always provided a detailed and fine analysis of its high-class craftsmanship and this has made them able to create their brand as luxurious as their products. The organization has not only maintained its activities by providing luxurious goods but has also supported different philanthropic activities that help in protecting the environment as well (Ttiffany.com, 2022).MK9707 MSc Marketing, For example, the company has granted approximately $20 million for granting coral and marine conservation purposes.

2. Brand audit analysis

2.1 Sustainability

From early on Tiffany functioned on the belief that in order to expand your business you need to give back to society what you took from it. In order to be successful, you need to have a strong purpose of responsibility towards the community (Franken & Schütte, 2022). http://MK9707 MSc MarketingThe company actively participates in environmental protection. Tiffany and co. the foundation provides funds to non-profit organizations working towards environmental protection and education. The foundation’s environmental program is also responsible for responsible mining, the protection of natural resources, and coral reef conservation.

Following are the areas covered by its Environmental protection practices-:

  1. Responsible Mining
  2. Coral Reef Conservation

The foundation does research as well as employs volunteers for community work for the protection of coral reefs.

  1. Land Protection

It also employs various land protection strategies. Communities in which the company operates will be supported by it.

2.2 Channels/Distribution

The company’s major revenues consist of retail sales and direct business-to-business supply in the U.S market. Also, it has Tiffany and co. boutique and outlets stores outside the U.S. Also some of B2b, Internet and wholesale sales of TIFFANY & CO. products outside the United States; Direct Marketing (7% of fiscal 2006 sales) consists of Internet and catalog sales of TIFFANY & CO. products in the United States; and Other (5% of fiscal 2006 sales) consists of worldwide sales of businesses operated under trademarks or trade names other than TIFFANY & CO. (i.e., LITTLE SWITZERLAND and IRIDESSE). Others also include wholesale sales of diamonds obtained through bulk purchases that are subsequently deemed not suitable for Tiffany’s needs.

The key areas in its strategies include expanding the business through majors like controlling the product supply, increasing sales by innovating and selling new jewelry designs, direct diamond sourcing, and internalized manufacturing of jewelry without compromising the values. It has strong PR activities that it uses to maintain its image and maintain awareness among the customers. It provides the best shopping experience through its services.

2.3 Products and target audience

The products sold by Tiffany are-: Diamond, silver, colored stone, gold and platinum jewelry, Bridal jewelry, engagement rings, Chyna, timepieces, silverwares, fragrances, stationery, crystal, and accessories. Jewelry is the most prominent one among all the products that Tiffany and co. produces. Due to its large variety of product offerings, the company is able to target most markets.

Its products are mainly targeted towards the customers with extra high income having knowledge about metals and precious stones. Therefore, its market is quite filtered. It advertises life’s precious moments and celebrations as a way to market its products as they are symbols of these occasions. Seventy percent of the jewelry products are purchased by women and the other 30 percent are purchased by women who are self-dependent income earners (Rosen, Samuel, and Tunick, 2003). U.S Census Bureau Data states that the income of women is more than ever before. Their income rose from 21,477 in 1970 to 30,240 dollars in 2001 (Silverstein & Fiske, 2003). http://MK9707 MSc Marketing They are starting to marry after much longer now in their life leaving them with increased savings (Rosen, Samuel, and Tunick, 2004). Therefore, Tiffany has started advertising the right-hand ring to mark the symbol of power and independence for young women. Whereas the ring on the left hand symbolizes love and commitment (Young,2004). http://MK9707 MSc Marketing

Tiffany has collaborated with famous designers like Elsa Peretti, Frank Gehry, and Paloma Picasso. Tiffany has also branched into selling pen stands, paperweights, household, and living items. Design not only differentiates and converts but also coordinates and conveys messages through signs and symbols. While it may not be entirely related, it can be argued that Tiffany as a design and brand coordinator attaches certain meanings to its jewelry, hence indirectly associating status symbols with the consumer. Examples of prestige, classiness and sophisticated chic are easily associated with the client that has opted to purchase Tiffany jewelry. Not only does it communicate certain messages, but it also enhances his or her social standing in the class structure.

2.4 Competitors

Tiffany & Co have a number of competitors in their business run that has created a strong competitive environment as well as a threat to the company to stay in the market. The company has secured a position of second in terms of CEO score on comparably, whereas they have placed themselves at 3rd position in terms of diversification of their products (Comparably.com, 2022).http://MK9707 MSc Marketing It has secured the fourth position for price ranking, product quality, and also in case of customer service. Therefore, it is completely visible that the company needs to focus more on all these aspects in order to be at the top position in a competitive run. Tiffany & Co. is world famous for its top branded diamond jewelry. Their cutting, quality, and captivating fire and brilliance cannot be compared with any other brands. However, still, the brand has been ranked in the fourth position in terms of its product quality (Comparably.com, 2022).http://MK9707 MSc Marketing A list of different competitors of the company is Cartier, BVLGARI, Buccellati, Harry Winston, Swarovski, LVMH, Worthy, Chow Tai Fook, and many more. As per consumer survey analysis, the brand has scored 4.1 and has been beaten by Worthy, Chow Tai Fook, and LVMH ahead. However, the brand has high consumer loyalty and for this reason, when consumers have been asked how far they would like to recommend this brand against their competitors, they have placed it in the second position just after LVMH (Comparably.com, 2022).http://MK9707 MSc Marketing

Tiffany & Co also has a high pricing range that makes it difficult for the consumers to afford the jewelry easily. In terms of price ranking, the brand has been placed again in the fourth position after Worthy, Chow Tai Fook, and LVMH. In short, it can be observed that LVMH has been one of the greatest competitors of the brand and it has also posed a high threat to their existence in the market (Comparably.com, 2022). http://MK9707 MSc Marketing It is obvious that consumers would prefer a brand that has a high-quality range along with sustainable price ranges. However, as per the report, it can be observed that Tiffany & Co. has a higher price range as compared with LVMH, Chow Tai Fook, and Worthy (Comparably.com, 2022).http://MK9707 MSc Marketing Therefore, there is a higher chance that the consumers would switch to these brands for price factors and this is one of the major threats put by LVMH on the company. Despite all these facts, vertical integration and traceability are two pillars of the competitive advantage of this brand. The company believes in the fact that every great luxury house must have its own designs and the company has followed this tradition since its establishment (Comparably.com, 2022).http://MK9707 MSc Marketing Along with this, the company has provided high traceability throughout its supply chain process ensuring both social and environmental responsibilities and thus providing a high competitive edge (Jewellermagazine.com, 2021). http://MK9707 MSc Marketing

2.5 Advertising

As discussed earlier, Tiffany advertises precious moments, occasions, and celebrations to attract its customers to buy its jewelry products. Blue Box packaging is its signature that helps it differentiate from other brands. It tries to create an emotional bond between the customers and the company. Advertisement is one such key way to attract the consumers to the process and therefore, the majority of the brands used to attract their consumers with emotional bonds and in that respect, Tiffany & Co. has shown their aspect for getting more consumer traffic in their process. Whenever a gift receiver is presented with the blue box, it initiates a feeling of excitement and happiness within them. The company has used its goodwill as the main weapon for promotion and advertising strategy. Goodwill helps in the creation of brand loyalty for the company which has given the company extra competitiveness by attracting more consumers in the process. They have used their Bluebook catalogs as the major promotional tools. In the year 1845, this company was the first to have colors in their catalog book and this made them so famous at that time (Jewellermagazine.com, 2021).http://MK9707 MSc Marketing

The company has its own printing house but now the company has changed its advertising skills and has stepped into the digital world for interacting with the customers and to get more benefits from them. The company has focused more on its content strategy while displaying its antique pieces of jewelry in front of customers. Being a luxury brand, it was quite challenging for Tiffany & Co. to sell its products at once while purchasing (Jewelryshoppingguide.com, 2022).http://MK9707 MSc Marketing However, due to their strong content strategy and exclusive design capabilities they have garnered millions of followers on social media. The company has also used augmented reality features which help the customers to try the products in practice with the help of the camera. Tiffany has the diamond ring app where the company provides the opportunity to try the rings on the fingers with the help of the phone’s camera. This helps the customers to experience the same thing that they can get from the offline store (Jewelryshoppingguide.com, 2022). http://MK9707 MSc MarketingThus emotive selling strategy of the company has made it possible for the company to grab the attention of a number of customers.

2.6 Brand challenges

The rating of Tiffany dropped from number 18 in 2016 to number 98 in 2017 among U.S brands. Tiffany is experiencing a decline in its emotional connection with its customers (Danziger, 2018).http://MK9707 MSc Marketing It is suffering damage to its reputation. It is falling behind the evolutionary trend. Hence, in order to create some brand loyalty and brand awareness the company needs to understand the consumer demand more accurately. For example, the marketing team of the company needs to analyze what are the main challenges the consumers are facing while dealing with this brand and they need to solve those disputes immediately for getting back the consumer’s trust again. The areas in which Tiffany and co. are struggling are innovation, workplace, and citizenship. It has created an image in the mind of the public that it is related to the roots (Danziger, 2018). http://MK9707 MSc MarketingIt may not be showcasing the modernized image and may portray more of a traditional image. Also, it has not been able to successfully capture the digital platforms. Its analog blue box experience is still due to be transferred into the digital experience. The store of Tiffany and Co. which is located on 5th avenue still continues “Breakfast at Tiffany” from the 1960s. In the age of the modern era, the audience expects to engage with brands digitally, especially after the pandemic crisis. Regaining the decline in reputation by capturing the digital world is the main challenge and opportunity for the brands. Some of its competitors have successfully captured the digital platforms and are able to communicate the identity of the brand more conveniently.

2.7 Workplace issues

Tiffany is known for being too stiff under the collar. It is too polished, perfect, and aloof, it needs to loosen up a little bit and be more real. It needs to be more open and transparent in its work culture. On the other hand, its competitor Rolex is doing a great job on this (Glassdoor.com, 2022).http://MK9707 MSc Marketing Workplace issues used to put an adverse impact on the overall activities of the company which can be observed in the case of Tiffany & Co. Different survey report has shown that the company is quite unethical in terms of single labor law. They do not perform any major action for harassment, or discrimination against employees within their system (Glassdoor.com, 2022).http://MK9707 MSc Marketing A diverse work environment with the chance of equality is the most important criterion that any employee used to look for. This also put a strong impact on the customers regarding how the company is dealing with their employees. In this case, the inactive nature of the company in such cases has put a negative impact on its activities. It can be observed that if any employee has any issue in their workplace they have to move to a higher level, sometimes beyond their regional HR level for getting proper justice from the management team. This simply shows that the internal system of the company is more fragile where the management has very little concern for their employees and this affects the company’s internal strength as well as its productivity level (Glassdoor.com, 2022).http://MK9707 MSc Marketing

2.8 Citizenship concerns

While Tiffany has worked on environmental and sustainability issues through Tiffany and co. foundation by providing funds to the non-profit organizations working on this front, it fails to stand for a social cause and humanitarian efforts. Tiffany needs to work beyond its image as an expensive and luxurious brand. It should also focus on creating a humanitarian standing and focus on providing the communities with a better future. Tiffany & Co. have a higher price range which dimities the customers to buy any product and swift their choices regarding brand selection. In order to get more customer traffic, the company needs to work hard on creating a humanitarian standard. For example, the company can put some social work to get into the views of the entire community. Today’s consumer highly prefers companies that have high CSR approaches and thus it would give them extra benefits in the line of competition (Ismail, 2021).http://MK9707 MSc Marketing

Its competitor Rolex has employed tennis star Roger Federer as its brand ambassador. Federer is an inspiration for millions of children from deprived households. The brands that focus more on power, elite Ness, and prestige as their reputation have to bear a toll on their customer loyalty in the future. Tiffany’s image is interpreted as more of a brand for elites and the powerful class. It is lacking behind the larger macro trends. Whereas Rolex has been successful in communicating its brand story and values. It has earned a reputation as a good citizen and honest brand (Danziger, 2018).http://MK9707 MSc Marketing

3. Brand opportunities & recommendations     

3.1 Femvertising

After the consumers buy a luxury product there may arise a guilty conscience, it can be handled by attaching some social cause to it, therefore a concept called advertising which portrays women’s empowerment can be showcased and add more value to the product (Akestam, Rosengren and Dahlen,2017).http://MK9707 MSc Marketing Women are an important target audience in the luxury goods category. The term advertising was first coined by SheKnowsMedia in the year 2004 with Dove’s real beauty campaign; this concept of current digital promotion tool empowers women’s talent and highlights their strength in front of the world. This has been one of the major promotional tools that can attract a large number of consumers to their line (Ismail, 2021). http://MK9707 MSc MarketingFemales are no doubt the best option for luxury goods products and thus to create an emotional link with the brand would easily help the company to get more value from its target audience. For example, Libresse’s #BloodNormal campaign in the year 2017, and Nissan’s #SheDrives are some of the most exclusive advertisements that have made the world rethink about the constant stereotypes. In Nissan’s advertisement, the company used one woman from Saudi Arabia to drive the car which shows the demand for creating equality for everyone and asking for freedom movement for every person in this world (Auld & Renckens, 2021).http://MK9707 MSc Marketing Tiffany & Co. needs to perform some innovative steps that can break the societal stereotype. For example, not only highlighting the supermodels for their promotional purpose but also the real women of life to advertise their products can help in raising the message that each and everyone is equal for the company irrespective of their social position, income statement, and many more. The company can show how important it is to take care of yourself, dress, or fulfill your own dreams in this current era (Cartier, Ali & Krzemnicki, 2018). http://MK9707 MSc MarketingThey can highlight the women’s dream of having luxurious jewelry; exclusive diamonds by their own capability would help to uphold the women’s position and to strengthen their economic power.

3.2 Mitigating workplace issues

There is no direct connection between mitigating workplace issues with the brand audit. However, still workplace issues play a vital role in brand value, brand productivity, and also in creating a positive image of the brand. Employees are the internal power that mainly plays the major role in handling all productivity. As mentioned by Kakadiya & Chaurasia (2021), employees are as important as consumers for getting a high competitive edge. Employee satisfaction creates a better internal environment which promotes greater productivity. Along with this, the creation of a diverse and free work environment provides the scope of discussion and thus helps in generating innovative ideas. A diverse work environment always helps in getting higher innovative and creative ideas in the corporate field. Different success stories of large organizations have shown that diversity has brought success to the company’s platform. For example, Amazon, and Google has higher diversity with employee beneficial environments which have helped the companies to grow securely (Kakadiya & Chaurasia, 2021). http://MK9707 MSc MarketingA bureaucratic work environment and less flexibility are one of the major issues within Tiffany & Co. Hence, it is the sole responsibility of the managers to create a better work environment where every employee can peacefully balance their personal and work life as well (Rana, Singh & Chauhan, 2021).http://MK9707 MSc Marketing Along with this the management system in the company needs to be universal, that is there must be a two-way direction of flow of information which would provide scope to lower employees regarding expressing their views and also to put forward their issues in front of management. A more strong strategic HR management system is recommended for Tiffany where the HR managers would be more active with the employee’s condition and would take immediate steps to mitigate those issues effectively (Shah & Sidhpuria, 2018). http://MK9707 MSc MarketingStrong strategic HR management helps in identifying the issues easily before it becomes unmanageable. It can be observed that a healthy work environment always leads to a high production level. Therefore if the company ensures strong strategic HR management in action, this would help to create a healthier work environment. This, on the other hand, can easily focus on brand marketing and satisfying the consumers.

3.3 Enhancing brand value and brand reputation

One of the major issues that have been addressed in the work process of Tiffany & Co is that they have lower interaction with the consumers. Consumers are the most important and vital pillar of brand marketing and therefore it is highly important to understand the need of the consumers first for getting a higher competitive edge. The CEO of LVMH company mentioned in an interview that Tiffany & Co thought of them as American just because they have operated in the US for more than decades and also have fluency in English (Jewellermagazine.com, 2021).http://MK9707 MSc Marketing However, still there is a major gap in their understanding of the American people’s mindset. In order to enhance brand value, brand presence, and brand image, the foremost important strategy is to understand the consumer’s mind and to design the products based on their demand. Therefore the company needs to work more on its marketing strategies for improving its customer experience. They need to monitor consumer choice and in this case, Artificial intelligence can be an effective method to understand their shopping trend (Mugobo & Jeremia Manzi, 2021). http://MK9707 MSc MarketingThe company can track the shopping pattern or the selection pattern by the customers with AI and this would help to understand the changing demand of the consumers and thus to keep on track with the flow.

Tiffany & Co. have their own digital platform where they have used augmented reality for the customer to experience the products just like in offline mode. There they can use AI as well for studying the trends of shopping or searching patterns of the customers for understanding their mindset easily. Advertising can help in attracting more women to their brand as this would deal with one of the most sensitive content in the current world which is women empowerment. Tiffany & Co need to make their product more unique as there are already different competitors in their line of competition. This can also help in enhancing their brand value and getting higher consumer loyalty.

3.4 Improvement in product innovation strategy

Innovation is the constant strategy that is used by companies to get a more competitive advantage and also to stay in the line of business for the long term. The jewelry business has changed throughout this year along with the current consumer trends and modern liking patterns of customers. It can be observed that there is an increase of approximately 3.9% in sales from the year 2012 to 2022. Covid- 19 has enhanced the consumer’s confidence level for buying products online and relying on suppliers regarding online jewelry transactions (MAHALAKSHMI & LISSY, 2022).http://MK9707 MSc Marketing However, for this purpose, Tiffany needs to understand the shopping trend or the demand pattern of the millennial, generation Z customers as well because they are the future of the market.

Most young customers do not prefer heavy jewelry for their daily use purposes. They love colored stones with lightweight designs but must have a uniqueness in their looks. In the case of both professional and personal looks, the colored pop gemstones added extra chic and eclectic looks to the person. Mixing of metal patterns is not a new trend in the jewelry business but it has been restored again in the current era (Dhaliwal, 2022).http://MK9707 MSc Marketing Therefore the company can mix their style pattern for example; a combination of pearl with diamonds or colored stone with high shine metals can be effective to meet this standard. Many young customers also prefer enamel jewelry which is mainly available in black and white colored diversity. Therefore, Tiffany & Co need to break their stereotype of only diamond jewelry or traditional design and needs to flow with the current working trends for their product innovation strategy. They need to focus more on unique patterns for getting the top position in the market.

3.5 Recommendation regarding promotional platform

Tiffany & Co has successfully stepped into the digital market platform for its promotional purpose and has not bounded its work within the offline mode. They have designed their app with augmented reality where the customers get the chance to try the products effectively like they get the chance in an offline store (Franken & Schütte, 2022).http://MK9707 MSc Marketing The company needs to focus more on its target customers which are women for its promotional platform. Currently, there is a massive change in the promotional strategy. Most of the brands have used faces of normal women rather than any celebrities in order to show how down-to-earth they are. Therefore, the company can target some mediocre homemakers as their promotional faces. There is a massive issue regarding the high price of the products by Tiffany, therefore the company needs to lower its price range for grabbing the attention of all levels of people in society (Pozharliev et al. 2021).  http://MK9707 MSc MarketingAlong with this, the company can run social media contests which would help to get free promotion of the company through their loyal customers. They can also provide several incentives and rewards to their customers who have already made a free referral to their friends or near people.

3.6 Recommendation regarding sustainability

Tiffany & Co have always shown their sustainability approaches in the jewelry business. Customers always prefer sustainability or environmental benefits as the most searched criterion before price. Therefore, the company needs to pay serious attention to the quality of the products and the sustainable values that the company is spreading throughout society. For example, motivating the customer towards recycling gold materials can be effective (Mugobo & Jeremia Manzi, 2021).http://MK9707 MSc Marketing Customers would be encouraged to bring their old pieces of jewels to the store in order to make new ones. In return they would get some benefits of discount vouchers in return; therefore it would help in saving the natural resource gold or any other precious metals. Along with this, the company needs to take part in several environmental protection campaigns and socially beneficial work for getting more sustainable support from customers. Maintaining better workplace culture would motivate the employees in performing more wonderful actions and supporting diamond origin areas are some of the top sustainability trends that the company can follow (Shah & Sidhpuria, 2018).http://MK9707 MSc Marketing

4. Conclusion

This entire report has shed the light on the brand audit of Tiffany & Co. This company is renowned for its luxurious goods that have grabbed the attention of consumers for more than years. The report has critically discussed their current sustainability strategies, their promotional methods, their channels and distribution process, and many more in-depth. Along with this, a detailed analysis has been performed on the competitive advantage of the company. Based on all these thorough discussions, suitable strategic recommendations have been provided that cover their sustainable approaches, current promotional techniques, and creation of a better workplace environment. It is highly important to understand the current changing trends including changing consumer demand in order to get a good position in the market and a competitive advantage.

Reference list

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