Saturday, February 23, 2013

Chapter 4. The Marketing Environment

Being a high-quality and luxurious company, Tiffany & Co. mainly is targeting a specific section of the population, which is represented by upper-middle and upper-upper classes of males and females whose income is high enough to shop for high-end products.

Speaking about age groups, Tiffany's consumers consist of a few generations such as Generation X, baby boomers and Generation Y. Having its own values and interests, each generation is motivated to shop in the stores for its own reasons. For example, generation X has sufficient funds to shop for high-end products representing the group's lifestyle as well. Baby boomers like to purchase high-quality products despite their limited income. Meanwhile, generation Y buys Tiffany's products to follow the celebrity trends.
Having a reputation of one of the finest jewelers in the world, Tiffany & Co. has a strong image and position, which provides the company a steady balance sheet. While women are the main users of the product, the company constantly works on new strategies to expand the market by introducing more products for the male gender. Now, the company sells men products - jewelry, cuff links, accessories, leather goods, watches and fragrances. 
Also, Tiffany & Co. is opening new stores outside of the US expanding its radius globally. For the past 15 years it opened about 80 foreign locations, plus more than 60 in the territory of the US. International sales bring almost half of the company's revenues from outside of the Americas. Tiffany's foreign sales are mainly focused in Europe and Asia. David Schick, who is an analyst for Stifel Nicolaus & Co. in Baltimore, says that the company's foreign stores are more profit-making because they are smaller and situated in a very populated areas which bring more sales per square foot.
Tiffany & Co. focuses its marketing on a specific target markets as it specializes in an explicit area and satisfies wants of a limited group of people. For this reason, the company is very wise about where to open new stores, how to evaluate its products to match with its exceptional image and how to sell retaining its high-end customers.

Tuesday, February 12, 2013

Chapter 3. Ethics and Social Responsibility

Like any other company, Tiffany & Co. is responsible for creating an ethically healthy environment and it believes that its moral obligation to preserve the natural beauty which is so inspirational to the company.
The Tiffany & Co. Internal Audit Department ensures that the company runs in agreement with laws, regulations and company policies. The company Code of Business supplies principles which are expected to be followed and performed in the corporate duties.

Certain expectations are set for employees by the company Business Conduct Policy. The policy restricts an acceptance of any kind of payments such as bribes or gifts. If any ethical issue occurs, an employee can report it anonymously.

The Board of Directors, which is elected by the company stockholders, is in charge for delinquency of the company's strategy and operations.

Corporate Social Responsibility

In 2009, a Corporate Social Responsibility Committee was founded by the Boards of Directors to review and evaluate Management's goals and practices for social responsibilities.

Alaska's Bristol Bay
Tiffany & Co. has promoted a number of significant policy decisions. As an example, the company stands for the environmentally responsible mining standards. It works with nongovernmental organizations (Earthworks and Human Rights Watch) to strengthen responsible mining practices. It was the first jeweler to grasp the goals of Earthworks No Dirty Gold Campaign in 2005 which set up ambitious social, human rights and environmental standards of the extraction of gold that retail jewelers can use when they seek responsible mining sources.
In 2009, Tiffany & Co. put an advertisement in National Jeweler magazine to bring attention in the jewelry industry about Pebble Mine in Bristol Bay, Alaska, which is home of the world's most productive salmon fishery. Plus, same year  the company devoted its store windows to an "Under the Sea" theme to show its concern for coral conservation. The company stopped selling coral products to preserve a vital element of our ecosystem.

Supplier Responsibility

The Tiffany & Co. Social Accountability Program protects basic human rights by scanning its suppliers' performance which includes hours of work, wages and benefits, health and safety, harassment or abuse, disciplinary practices, discrimination and environmental protection.

Monday, February 4, 2013

Chapter 2. Strategic Planning for Competitive Advantage

Tiffany & Co is one of the finest jewelry retailers which has a 175-year history and tradition. Nowadays, Tiffany operates more than 250 stores and boutiques world widely, and it serves its customers with pride and excellence. A great success that the company achieved over the years of existence is connected to a skillful and well though out strategic planning.

SWOT Analysis:

Strengths: Tiffany & Co has a strong direct selling strategy. It has developed several direct distribution channels which are direct sales in Tiffany stores and boutiques, online and catalog sales. Tiffany offers a wide variety of products which meets a wide range of customer needs. Besides jewelry, the company offers products such as timepieces, china, sterling silverware, crystal, stationery, fragrances and accessories. Tiffany has earned a strong brand name in the fine jewelry market that gives the company a great reputation. Strong balance sheet gives Tiffany an opportunity to increase its offerings and expand geographic coverage.

Weaknesses: The fact that the company's main customers are upper and upper-middle class is highly dependable on economic status. If a recession occurs, the company will incur significant losses.

Opportunities: Tiffany is constantly working on expansion strategy. Since 2007 the company has opened new stores in locations such as Japan, Korea, New Jersey, Hong Kong, Las Vegas etc. New stores will develop the company's geographic radius and boost its market scene.
Also, online shopping became very popular that benefits Tiffany in sales growth tremendously. Besides its convenience for customers, online shopping enhances the company's margins by cutting down its operating expenses.
Growth in men's market gives to Tiffany new opportunities to grow. Tiffany & Co. designs new products for men such as men's jewelry and accessories that is expected to boost the company's revenues.

Threats: Because of counterfeit goods appearance, Tiffany stands to lose its brand equity. Also, it may create customers complaints that will harm the company's image.