Abstract
Tiffany & Co. is a jewellery company in the United States. It commands a significant market share in the industry, making it one of the market leaders. It was founded in 1837 by Tiffany Charles and John Yong. The company operates in multiple locations, including Malaysia, the United States, Austria, the United Kingdom, South America, Europe, and Canada. Tiffany & Co. has a market share of $4.4 billion. Its jewelry divisions make up approximately 60% of the overall product portfolio. The company’s product portfolio comprises nine product categories, including jewelry, personal accessories, leather, water bottles, watches, crystal, tableware, stationery, and decorative. Jewelry categories include necklaces, pendants, rings, earrings, fine watches, bracelets, and brooches. The paper recommended several things that Tiffany & Co. should improve its competitiveness and generate more income. The company should introduce multicultural and cross-cultural designs in Asian countries such as China and India. Expanding to these markets expands its market share and, ultimately, the revenue collection. The two countries have the highest demand for jewelry and watches. The company should also produce products for the elderly and disabled. Lastly, Tiffany & Co. should focus on offering cheap and affordable products to lower- and middle-class consumers.
Desorption of the Company and Product Audited
Tiffany & Co. is a large jewelry firm founded by Tiffany Charles and John Yong. It began operating its business in 1837. It started as an organization dealing with stationery and fancy items in an emporium in Connecticut, Brooklyn, and the United States. In 1837, the firm shortened its brand name to Tiffany & Co. Under Tiffany Charles’ control, it emphasized the sale and manufacturing of jewelry. The firm’s headquarters are in New York, United States, with over 14,000 workers. In the U.S., the firm has a significant market share within two primary industries: watch sales and online jewelry, and manages sales, jewelry manufacturing, and online jewelry (Tiffany & Co., 2024). Its largest leading market share is jewelry manufacturing, accounting for 8.1 percent of its total sales revenue.
The company enjoys a broader market share recognizable to its target jewelry customers. Tiffany & Co. has a market revenue and share of $4.4 billion. It strategically has multiple distribution centers for easy access by the target consumers. Under its Chief Executive Officer (CEO) Anthony Ledru and Chief Management Officer Andrea Davey, the firm operates in the jewelry, diamonds, and sterling industries (Tiffany & Co., 2024). Its vision is to be the most respected and successful world retailer, designer, and manufacturer of the finest and highest-quality jewelry.
Tiffany & Co. enjoys the benefits of an iconic brand in the luxury world. Currently, its jewelry chain has multiple operations in Malaysia, the United States, Austria, the United Kingdom, South America, Europe, and Canada. The jeweler usually makes approximately 60 percent of its products from cheaper, more cost-friendly versions like rose gold, silver steering, and other non-jewelry items outsourced to multiple contractors. The firm sells various products to the target consumers by attaching different price tags, reducing consumer exploitation by retailers and other outlets that irregularly change their prices.
Tiffany & Co. has over nine product divisions or brands other than the primary division (jewelry), including personal accessories, leather, water bottles, watches, crystal, tableware, stationery, decorative, and arts. Jewelry categories include necklaces, pendants, rings, earrings, fine watches, bracelets, and brooches. There are also gift versions like anniversary gifts, wedding gifts, personalized gifts, online exclusives, gifts for Tiffany Blue, and gifts under and over $1,500 (Tiffany & Co., 2024). There are also gifts for babies, homes, and couples. Another offering category is engagement and love, including engagement and men’s engagement rings, Tiffany rings, a diamond guide, and Life of Service. Fine watches are women’s and men’s watches, Patek Philippe, and more. Home accessories include leather goods such as bags, belts, small leather goods, stores and scarves, sunglasses, and table items like barware and glassware, tea and coffee, flatware, and trays. The decor is for home products accessible to households.
The variety of product choices available at Tiffany & Co. allows consumers to select products based on their preferences. It gives customers a good and appealing shopping experience. The firm’s products are high-quality and durable, which people will enjoy and take credit for. Luxury and exclusivity in products are also available for higher- and middle-class buyers (Tiffany & Co., 2024). These products offer iconic designs and a timeless elegance experience.
Tiffany & Co. should focus on offering cheap and affordable products to lower- and middle-class consumers. The firms concentrate on luxury categories, ignoring the lower-class market segment. Products for lower-class consumers will account for a good market share and generate more significant profit margins. The other change is introducing cross-cultural designs as they gain popularity in different parts of the world, including Asia, Europe, and Italy. Producing more goods in this category will help Tiffany & Co. make more profits. India and China, in this case, are good examples of countries where the company must focus on and develop multicultural and cross-cultural designs. The two cultures are the leading consumers of jewelry and watch products. For example, China is a top consumer with $90.1 billion in revenue, and India is the second with $78.6 billion.
Market Segmentation Audit
Market segmentation involves dividing the target market, both existing and potential, into different segments based on consumer buying behaviors, preferences, tastes, and needs. Market segmentation helps a firm better understand its target audience and develop and tailor its product designs to meet their needs. It will allow Tiffany & Co. to identify segments likely to yield more sales and earn a more extensive consumer base (Dutt, 2023). Tiffany & Co. can segment its consumers based on demographics such as gender and age. The approach will help the company leverage the segregation advantages. A firm can also segment the target market based on external, situational, decision-making, and internal influences.
External Influences
External influences help Tiffany & Co. segment the target market demographically based on gender, age, social status, income, and specific roles such as professionalism and studying. The existing Tiffany & Co. market segmentation falls under some of the above subcategories. Geographically, Tiffany & Co. sells its products in the United States and other parts of the world. It offers products in Malaysia, the United Kingdom, Austria, Europe, South America, and Canada. The firm, which operates in different countries across the continent, can widen its customer base and make more sales and profits. That means an objective business expansion into global markets improves its market share and revenue generation. Consequently, this approach would be a significant milestone towards becoming the global market leader.
In terms of gender, Tiffany & Co. focuses on both men and women. However, more focus is put on women because they are the largest consumers of jewelry products. The various beauty products the company offers for women include necklaces, pendants, rings, bracelets, fine watches, decorative earrings, and bags (Harvey et al., 2021). Women also buy home decor and accessories such as décor and tables. Men mainly purchase watches and items like necklaces, bangles, and belts. Tiffany & Co. understands women’s power in its products, so it capitalizes on and invests more resources in this market segment.
The other target market segment is luxurious, high-class, and sometimes middle-class consumers. This market segment prefers status, iconic jewelry, and other luxury products. Still, Tiffany & Co. focuses more on high-class women who like iconic and elegant beauty from the wealthy and upper-middle class in this market segment. The majority of its revenue comes from the jewelry segment. It also sells its products to high-class men, who attribute the product’s quality to its price.
Similarly, the company focuses on middle- and pre-teen consumers, especially women. Female consumers under this age like to spend their resources buying beautiful and expensive goods. Some of them purchase luxury products because they want recognition. The other segment is for accessories and home items. These market segments prefer using coffee and tea tables in their homes.
Tiffany & Co. also offers products for students and professionals. Students who like watches for tracking their time purchase high-quality products. The company offers a variety of watches from which they can choose based on their needs and preferences. Professionals who love matching their official clothing with fine watches are part of the company’s segment. They also buy watches to keep track of their time while at work.
Internal Influences
Internal influences are reasonable considerations for marketing segmentation for Tiffany & Co. This category includes consumer attitudes towards products, lifestyles, and other aspects like self-concepts. Tiffany & Co. focuses on customers who care about status and lifestyles. For example, middle-aged and pre-teen women love lifestyles and symbols of status. People who like to be recognized and seen as belonging to the wealthy and upper class will buy luxuries and expensive products to gain recognition. Women and some men above 50 pursue personal status goals to gain recognition by possessing Tiffany & Co.’s iconic products. Another category of customers is those who love eco-friendly products. Tiffany & Co.’s products, from manufacturing, packaging, and distribution, take care of the environment by practicing sustainability and environmentally friendly practices.
For this reason, eco-conscious consumers would prefer products from Tiffany & Co. The company uses renewable energy sources for production and manufacturing to reduce carbon emissions. The firm can gain a more extensive customer base by providing product offerings for this category.
Situational Influences
Situational influences entail grouping users according to particular situations. Firms sometimes design products to fit specific situations, like weddings and other occasions. Tiffany & Co. also capitalizes on this segment to widen its customer base, increase sales, and maximize profit. For example, the company produces rings for engagements and weddings, whereby consumers purchase them to facilitate the requirements for the wedding event. There are also gifts and products for anniversaries and weddings (Ma, 2022). Users only buy these goods during the designated social events they are indicated to. People can also purchase gift products for birthday parties and graduation ceremonies.
Decision Process Influences
Decision-making processes involve dividing the target audience based on consumer loyalty and evaluation criteria. Some customers prefer the durability of products, while others buy the product due to the variety of pleasing colors. Likewise, some users continuously purchase products because of their quality. Tiffany & Co. offers products in attractive colors and models. Consumers who like beautiful products with excellent colors purchase from Tiffany & Co. The firm also offers durable and high-quality goods, giving customers an exceptional purchasing experience. These categories offer the company a competitive advantage as they help build a solid customer base based on trust and loyalty (Patrick & Monga, 2020). These customers become frequent buyers who refer others to Tiffany & Co., enabling it to expand its customer base and market share.
Product Positioning
Product positioning is how companies think about a product and other competing brands. Managers determine the desirable and appropriate position for their market segments. It can be the memory of the products or services created in the minds of consumers. The positioning also helps to determine the idea and core product category the firm wants to produce for each market segment. Tiffany & Co. positions itself as an iconic luxury brand focusing on delivering unique customer experiences with a solid brand and product identity, and users associate its name with exclusivity, elegance, and sophistication. The company constantly focuses its heritage and history on craftsmanship, durability, and high quality in its marketing efforts to make it a desirable and trusted brand (Patrick & Monga, 2020). It has iconic packaging that associates its products with elegance and luxury.
Marketing mix
Product
Tiffany & Co. has over nine product categories, including jewelry and other offerings such as personal accessories, leather, water bottles, watches, tableware, stationery, and decorative arts (Harvey et al., 2021). The jewelry category is the primary offering and includes necklaces, pendants, rings, earrings, fine watches, bracelets, and brooches. The company also offers gift categories, including anniversary gifts, wedding gifts, personalized gifts, and online exclusives. Another offering category is engagement and love offerings, including engagement rings, Tiffany rings, and a guide to diamonds. Home accessories include leather goods such as bags, belts, small leather goods, stores, scarves, and sunglasses; and table products such as barware and glassware; tea and coffee; flatware; and trays. The decor is for home products accessible to households.
Different high-quality and iconic products are available at Tiffany & Co., allowing consumers to select products of their choice. The product variety offers consumers a good and appealing shopping experience. The firm’s products are durable, something that attracts and retains customers. Luxury and exclusivity in products are available for higher- and middle-class consumers. These products offer iconic designs and a timeless elegance experience. Tiffany & Co. inclines its brand toward the purchasing power of buyers. They wrap their items using Blue Box’s original style, making them valuable.
Pricing
Tiffany & Co. offers products at different prices based on the item category. Its prices range from affordable silver jewelry for the middle, upper, and some lower classes to high-end and iconic diamond pieces. Tiffany & Co., through its market segments, attracts affluent and aspirational consumers. Its premium product prices usually contribute to perceptions of quality and exclusivity. Tiffany & Co. is dedicated to manufacturing multiple luxury items offered in local and global markets. Tiffany & Co. product prices range between $35 and $60 and exercise price discrimination based on individual consumers’ social status.
Place/Distribution
Tiffany & Co. has multiple distribution centers in different locations, including New York City and Virginia. These distribution centers help the company reach a wide range of markets. The company has also established its distribution centers in the United Kingdom, Madrid, Malaysia, Manchester, South America, and Canada (Patrick & Monga, 2020). The decision to establish a distribution center in a particular locality is informed by its strategic position and the population.
Promotion
Tiffany & Co. gears its promotional efforts towards enhancing brand recognition by creating awareness to evoke the target audience’s sense of purchasing desire. The firm combines digital and traditional marketing strategies to reach its target audiences. Tiffany & Co. advertises its products online through its website, app, and other social media platforms, including Facebook, Twitter, and Instagram. It has millions of social media followers. For example, the company has over 9.5 million followers on Facebook, 13.30 million on Instagram, 1.7 million on Twitter, and 299000 on Pinterest (Pitman, 2021). The company can convert such a large number of followers into leads and potential customers. The company also uses high-end fashion magazines to showcase its products. It also leverages partnerships and influencer collaborations to engage younger customers.
Customer Satisfaction and Commitment
Tiffany & Co. continuously produces iconic, high-end, and quality products that serve the needs of different market segments. Customers have a variety of tastes and preferences to choose from among multiple luxurious and appealing products. The firm also ensures its products are readily available and accessible through established distribution channels. Other than physical locations, customers can purchase company products online, saving on costs (Pitman, 2021). There are also numerous offerings for occasions and situations such as weddings, engagements, and anniversaries. Availing nearly all categories of products, including jewelry, accessories, gifts, bags, and other iconic offerings, builds trust that ultimately leads to repeat purchases. Customers, including men, children, women, teens, and adults, get products according to their tastes, preferences, and needs.
Recommendations
There are several recommendations for Tiffany & Co. The first is introducing multicultural and cross-cultural designs, a product category gaining popularity in different parts of the world, including Asia. Producing more goods of this type will aid Tiffany & Co. in expanding its customer base. India and China are good examples of countries for which the company must focus and develop multicultural and cross-cultural designs. The two cultures are the leading consumers of jewelry and watch products. For example, China is a top consumer with $90.1 billion in revenue, and India is the second with $78.6 billion.
The second recommendation is to produce products for older people. It is undeniable that Tiffany & Co. has fashionable designs that are desirable for adolescents and young adults. Another recommendation is to offer cheap and affordable products desirable to lower- and middle-class consumers. The firms concentrate on luxury categories, ignoring the lower-class market segment. Products for lower-class people will also account for a good market share and generate profits.
Conclusion
Tiffany & Co. is a jewelry company in the United States. It commands a significant market share in the industry, making it one of the market leaders. It operates in multiple locations, including Malaysia, the United States, Austria, the United Kingdom, South America, Europe, and Canada. The jewelry category makes up approximately 60 percent of its products. Tiffany & Co. offers over nine product categories, including jewelry, personal accessories, leather, water bottles, watches, crystal, tableware, stationery, and decorative items. Jewelry categories include necklaces, pendants, rings, earrings, fine watches, bracelets, and brooches. The paper recommended several things Tiffany & Co. should improve on its competitiveness and generate more income. The company should introduce multicultural and cross-cultural designs in Asian countries such as China and India. Expanding to these markets expands its market share and, ultimately, the revenue collection. The two countries have the highest demand for jewelry and watches. It should also produce products for the elderly and disabled. Tiffany & Co. should also focus on offering cheap and affordable products to lower- and middle-class consumers.
References
Dutt, A. (2023). Tiffany & Co. cut Canada’s largest yellow diamond. Globe & Mail (Toronto, Canada), P2-P2.
Harvey, M. H., Achi, A., Beyazit, D., Bincsik, M., Byck, J., Canby, S. R., … & Stergar, C. D. (2021). Collecting Inspiration: Edward C. Moore at Tiffany & Co. Metropolitan Museum of Art.
Ma, Y. (2022). The Research on the Marketing Strategies of Luxury Brands and its Extension—Taking Tiffany & Co. as an Example. BCP Business & Management.
Patrick, V. M., & Monga, A. S. B. (2020). Building and growing luxury brands: Strategies for pursuing growth while maintaining brand coherence. In Research Handbook on luxury branding (pp. 117-137). Edward Elgar Publishing.
Pitman, G. M. (2021). Are Diamonds Forever? Tiffany & Co.’s Fight to Protect Its Name. Wake Forest J. Bus. & Intell. Prop. L., 22, 81.
Tiffany & Co. (2024). Tiffany & Co. Tiffany & Co. U.S. | Luxury Jewelry, Gifts & Accessories Since 1837. https://www.tiffany.com/