Tiffany & Co Market Analysis

Running Head: TIFFANY & CO. MARKET ANALYSIS

Tiffany & Co. Market Analysis

Tia Bell, Colton Black, Bradley Dowdy, Lily Kounlavong, and Amber Yarbough

Middle Tennessee State University

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Table of Contents

Tiffany & Co………………………………………………………………………3

Product…………………………………………………………………………….4

Pricing……………………………………………………………………………..8

Place……………………………………………………………………………….9

Promotion………………………………………………………………………...11

Target Marketing/Segmentation Analysis………………………………………..12

Marketing Recommendations…………………………………………………....13

References………………………………………………………………………..15

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Tiffany & Co.

Tiffany & Co. has a long, rich history of providing luxury and adornment for countless people for nearly two centuries. In 1837 Charles Lewis Tiffany and John F. Young opened their first store on Broadway across from Manhattan’s City Hall Park with a $1,000 loan from Tiffany’s father. They began selling stationary and other “fancy goods”. Tiffany spearheaded the concept of having clearly stated and nonnegotiable prices. In 1841, J.L. Ellis became a contributing partner becoming Tiffany, Young & Ellis. Their success in 1845 led them to add the sale of jewelry and also expand their stationary to the largest selection in the city. Over the next two years they added watches and clocks, perfumes, skin and hair care products, dinner sets, and belts to name a few. Ellis’ new capital allowed Tiffany to travel to Paris as a buyer and later opened a branch store there. Tiffany brought sterling silver to the US and bought out his partners in 1853 he officially deemed the company Tiffany & Co.

During the Gilded Age that followed the civil war Tiffany had trouble finding enough products to keep up with demand for jewelry and silver wear which by now Tiffany had cornered those markets. 1868 Tiffany opened its London location and the company was incorporated. It also began integrating by buying John C. Moore’s silver manufacturing which he had been contracting with since 1852 to now exclusively produce for Tiffany. By now Tiffany had reached international prestige after winning the gold medal for jewelry and grand prize for silver wear at the Paris Exposition in 1878. It then began jeweling for most of the monarchies across Europe. However, the focus for Tiffany was still the up and

coming wealth in the US. In 1887 Tiffany acquired its most precious jewel dubbed the “Tiffany Diamond”, a 128.5-caret canary diamond that was the largest and purest canary diamond ever mined estimated at 22 million.

In 1902 Charles Tiffany dies leaving the company to Charles Comfort Tiffany, his eldest living son. In 1914 sales rose from 7 million to 17.7 million by 1919 not wavering in stock price of $600 between 1913 and 1929. The stock market crash in 1929 hit the company hard. Sales dropped 45% in 1930, then another 35% in 1931, and another 45% in 1932. They laid-off employees every year between 32-39, except for 36 and 37. They lost a million a year through the decade, but never stopped paying dividends dipping into

their reserve funds. In 1940 Tiffany moved to its’ final and permanent location at Fifth Avenue and

57th street. Throughout the 1950s Tiffany soon began recouping profit. Walter Hoving became chair and president in 1956 and began reporting to the majority shareholder (General Shoe Corp.). Hoving later formed a group of investors and bought out Tiffany

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from shareholders having a 51% share of the company in 1961. He left his mark on the company cutting products that he thought were unworthy of Tiffany’s attention, such as; men’s diamond rings, leather goods, antiques, brass and pewter. He also held Tiffany’s first discount sale to empty the vault of “gaudy and vulgar” pieces. He then focused on amplifying existing products by expanding the jewelry workshop staff from 8 to 60 and collaborated with famous stars and celebrities such as Elsa Peretti, Angela Cummings, and Paloma Picasso. Tiffany’s profits rose from $173,162 in 1955 to $1.7 million by 1966. That year about 65 percent of Tiffany's volume came from jewelry, 18 percent from silver, 14 percent from china and glassware, and the remaining three percent from stationery (engraved, not printed) and specialty items (Press, James).

Sales continued to soar through the 1970s. In 1978 Tiffany was sold to Avon Products Inc. for $104 million in stocks. Hoving retired in 1980. Avon turned Tiffany into a department store to the detriment of the customer. Revenue fell 11.1 percent between 1979 and 1983. Avon then sold Tiffany to investor group led by William R. Chaney in 1984. Under new management the company shifted its view and began reassuring high-class customers that Tiffany will return to its original prestige. Tiffany went public in 1987. Earning them $103.5 million, which went to pay off their entire debts accrued from Avon’s time.

Tiffany’s “Blue Book” is their mail-in catalogue that Charles Tiffany began publishing in 1845. It has presented Tiffany’s product lines every year since and continues to symbolize Tiffany’s dedication to brilliant work and artistry. It is known for more than just selling Tiffany products it is also selling the lifestyle Tiffany is providing for its customers. By 1994 The Blue Book alone accounted for $15 million in sales revenue.

In 2000, The Tiffany & Co Foundation was established. Tiffany took on the duty to not only provide the highest quality products but also support the environment and the people in it. They support charities

and nonprofits all over the world that support safe and responsible mining, coral and marine conservation and urban parks. Tiffany & Co. believes in a Societal Market philosophy. Tiffany believes that as a corporate citizen it has a responsibility to maintain a safe and healthy environment and should practice business that coincides with this philosophy. This applies to every step of operation from mining raw material to the sustainability of that iconic Blue Box by sourcing recycled paper materials. They want to leave the world as beautiful and abundant as it was found if not better.

Product

Tiffany’s product line includes jewelry and accessories for men and women. Tiffany & Co has many other merchandise offerings such as china, crystal, and stationery. The jewelries that they sell are necklaces and pendants, bracelets, rings, earrings, charms, brooches, engagement and wedding bands. The accessories that are also produced are fragrances, key rings, writing instruments, sunglasses, and silver. As for the men’s

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jewelry and accessory, there are also cufflinks and watches. However, the watches that Tiffany offers, also offers to women as well. Tiffany’s have a product depth that gives consumers the option to buy from any of the brands’ products in their line.

Tiffany’s products can be a selective distribution in many major cities that they want to put their products at. Yet, they also have exclusive distribution intensity. To clarify, a selective distribution intensity is that their products are in the store near the area of the consumer and available to be bought. The exclusive distribution intensity is that a particular item or product is sold only at a few locations in a given geographic area. For example, Tiffany’s china and crystal are sold exclusively at Tiffany.com, on the New York flagship, and select Tiffany’s stores. Since the brick and mortar stores provide a wider selection of jewelry and accessories offerings, the china and crystal are sold at only specific Tiffany’s stores. Their china ranges from piggy banks to household items such as vases. Crystal is made for household purposes of home décor such as champagne flutes to candlesticks.

To start off with the jewelry, necklaces and pendants are produced in many different ways. For instance, Tiffany’s necklaces can be produced as chains or with the actual accessory included in the necklace. One example of their necklace would be the “key” necklace that has a heart on top of the key. When consumers see this kind of product, they would think that the person giving this necklace to their significant other has the “key to their heart.” The price for their necklaces and pendants ranges from $60-$157,000 depending on which kind of product a consumer is buying.

Tiffany’s bracelets come in a variety of color, diamonds, and styles. A consumer can buy bangles, cuffs, and chain wrist bracelets that are offered in the various metallic like gold, rose-gold, silver, and diamonds. What is unique about their bracelets are that the bracelets are made in different forms of shapes. Their cuffs are fine example of their design quality; it provides the perfect amount of curve needed for a cuff to wrap seamlessly around the wrist, but in the middle it is stopped at the end forming a “T”. The price range for their bracelets are $135-$145,000.

Rings can hold so much more meaning than just a fine piece of jewelry. Rings can become of a symbol. For Tiffany, they have their own category of just the simple rings and engagement/wedding bands that will also be discussed. A simple silver ring, engraved with the words “I love you,” can be bought for the minimum of $125. What is special about this particular product is that it gives meaning to the consumer buying it for their significant other when that ring says it all for them. The price range for

their rings starts off at $125-$22,500.The most classic earring that any women can wear from

Tiffany’s is the diamond and pearl earring for that elegant look. In their Tiffany Victoria Diamond collection, the shape of the diamonds is unique in shape that allows “the stones to play off each other’s glorious sheen.” Tiffany’s has added a more diverse range of earrings for the consumers. They have added unique

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styles of earrings in their appearance, color, and design. The price range for their earrings begins at $125-$64,000.

Tiffany’s charms are similar, but different from their competitors like Pandora. The charms that Tiffany’s produce are more like key charms in a way, because the top of the charm has a little hole where it would be able to slide through a charm bracelet. In regards to competition, Tiffany and Pandora’s products price range for charms are very different. Pandora’s charms can be bought for under $100- depending on which charm and what kind of materials it is made from while Tiffany’s charms start off at $75. To be precise, Pandora’s charms are started off at $35; that is a $40 difference by brand name.

Another jewelry that Tiffany provides are brooches. Brooches are meant to wear on the top of a blazer, dress, or suit for men and women. Tiffany’s brooches designs are unique like their cuffs and bracelets. However, their brooches may not be the most popular item bought, with changes trends Tiffany’s brooches are less sought after in recent years. Gwyneth Paltrow, an American actress, wore Tiffany’s butterfly brooch. The price for that specific brooch was not listed on Tiffany’s website, due to it being an expensive and custom piece. The price range for their brooches starts off at $475-$22,000.

Tiffany’s most popular product would be their engagement rings. An engagement ring from this prestigious brand indicates that the consumer is attached to the brand and had been eying the product for a while. Tiffany’s engagement rings generally don’t dip below $1,000; instead their classic collection starts off at $12,600. The price ranges from many thousands, because the quality of the materials and the diamond are not the

kinds that a consumer can just get anywhere. Brides’ dream of being proposed to with a little blue box by their Prince Charming. Also, when buying their engagement rings, a certificate of the ring and diamonds authenticity is issued after the purchase of the ring, which includes a warranty included. This is to help the consumer understand how much Tiffany’s care for their quality not only to engagement rings, but also the quality of the symbol long afterwards.

Fragrances are also sold from their product lines. Tiffany does not really emphasize their fragrance, since they are primarily focused on the jewelries and accessories. The price for a 1.7oz bottle starts off at $60 while a .25ounce bottle costs $140. There is not much information about their fragrance since there are only a total of 3 fragrances for men and 4 fragrances for women.

Key rings were introduced for consumers as a less expensive Tiffany product to include more people in the Tiffany lifestyle. Just like their fragrances, they do not emphasize as much for the key rings category. These are more of their impulse buys.

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They offer many unique key rings for different types of consumers to match any personality. A plain silver key ring costs you a $100 and $290 for a heart key ring.

Tiffany’s writing instruments, such as pens, are also included in the wide range of products they offer. The pens were produced for professional-business workers that still like to keep their luxury brand in their hand whenever possible. Each pen is costs differently based on appearances, material and inks. A simple retractable pen costs $70 and a retractable sterling silver pen costs $245. They are trying to offer the finest quality products that can be included in any part of a persons’ life.

A fun accessory for time in the sun is Tiffany sunglasses. Their glasses are not always the most popular product to be bought in comparison to others. Tiffany’s offers both men and women sunglasses with different frames, colors, lenses, and styles. A consumer would be able to choose from a variety depending on their preferences. The lowest price that Tiffany’s

sunglass starts at $230 and the highest price at $500. According to Tiffany’s, “Tiffany sterling silver is part of a rich heritage of

innovation and design.” Tiffany’s silver studio won top awards at the great world’s fairs of the late 19th century. Tiffany also originated the .925 sterling silver standard of purity in the United States, later adopted by the nation. Tiffany’s sterling silver is one of their most popular products they offer.

For men, cuff links were designed for men’s French-cuff dress shirts. These are typically found on a traditional tuxedo or formal suit. Tiffany’s not only focused on women, but men as well and produced a fancy accessory for them as well. Their cuff links comes in a variety of color and design to match his lifestyle. Simple sterling cuff links cost about $200. A diamond bar in 18k white gold with diamonds costs $7,000.

Watches, remain the most expensive accessory Tiffany offers. The watches are meant for both men and women with a variety of style to suit any customers’ needs. Tiffany’s also has diamond encrusted watches to give many women the feeling they are shining brighter than the diamond themselves. For men, a stainless-steel mechanical movement watch lets a man feel like he’s James Bond. The price range for their products on watches are $2,500-$30,000. It all depends on which product the consumer is going to buy for the price to go up a little higher than listed.

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Pricing

Tiffany & Co. key demographic is high-class woman and men from the ages 35-50+. The people that are amazed by this product are really into fine pieces of jewelry and expensive brands and keeping up with fashion. These types of people buy luxury products but the average price is depending on the product. Most of their products vary from prices from promo sales of $500-$1,000. The value of a Tiffany & Co. product provides timepieces that withhold silverware, China, crystals, fragrances, and accessories. The company is also engaged in manufacturing and retailing activities. The products of the high-end jewelry market tend to be inelastic. The lifestyle Tiffany provides to its consumers cannot be sold at a discount. If you cheapen the products, you cheapen the brand. The prestige and exclusivity that comes with Tiffany products are valued just as much as the product itself. Price point will not deter the Tiffany customer too heavily.

Our biggest competitors are Blue Nile and Pandora. Blue Nile is the largest online retailer of diamonds in the United States, offering more than 60,000 diamonds on its website. Blue Nile is using no intermediaries and offering products four times cheaper than their rivals. They have proven to be a highly successful in its business model, with Forbes and article online said that naming Blue Nile its favorite online jeweler. The other competitor, Pandora, is a fast growing and unique jewelry company that offers consumers the opportunity to design their own distinctive fashion creations.

Tiffany & Co. also promotes honest and ethical conduct. The discounts average out to be $16 off the product being a first time customer. Prices on Tiffany.com are subject to change without notice. The website does not provide coupons and the product price does not change. Once a product is put on display the cost of it stays the same. As with all high-end goods, you buy not only a product but, (sometimes more importantly) a brand. When you buy name brand items sometimes it can become a collectable or it can be se sold to another consumer for a fair or high price bid. Tiffany, like all luxury goods retailers, invests heavily in marketing and advertising to create an image associated with sophistication, style, affluence, superior quality and exclusivity. If you shop at Wal-Mart you are part of the masses, which means that Wal-Mart jewelry selection is not really a high-end place to try and buy or find a fine piece of jewelry. If you shop at Tiffany, you are part of the elite group of people that expect quality and excellence with every purchase.

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Net sales of Tiffany & Co. worldwide from 2011 to 2015, by product segment(By million U.S. dollars)

This timeline shows the net sales of Tiffany & Co. worldwide from 2011 to2015 divided by product segment. In 2013, the net sales of Tiffany & Co.'s fashion

jewelry segment amounted to approximately 1.6 billion U.S. dollars. (Statista)

Place

Tiffany’s customers can look for their product in stores (brick and mortar) and online at Tiffany.com. In the United States, there are a total of 93 stores in 28 states that Tiffany has to offer its’ customers. The states that have more than 5 stores are California, Florida, New Jersey, New York, and Texas. Of course, Nashville, TN was also listed on their website of having a Tiffany’s store at Green Hills Mall. The distribution channel that Tiffany’s uses for their product are the Retailer Channel. It is a route from the producers, to the retailer, and to the final consumer. Tiffany’s is an online distribution channel as well, because they have a website where consumers can also buy its products. Yet, for the most expensive items, a customer will have to call Tiffany’s New York

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flagship store on Fifth Avenue to speak to a representative about the specific product and price. Due to the brand being a prestigious brand, Tiffany’s products prices can be a result of inflation. Inflation is a “measure of the decrease in the value of money, expressed in the percentage reduction in value since the previous year” (Lamb, Hair, McDaniel). For example, a bracelet, in their Return to Tiffany Collection that costs $150, is available throughout the stores and its website. Consumers can find that product easily, but for a product like a seahorse clip brooch from their Tiffany &Co. Schlumberger Collection is not available on its website. A consumer would, again, have to call customer service to check the availability of the product.

Tiffany’s does not sell their products elsewhere; that includes department stores like Macy’s, Dillard’s, BELK, and JC Penny. If a Tiffany’s product were to be sold in Macy’s, that would mean a Tiffany’s product would be cheaper than the price sold at an official Tiffany retailer. Tiffany wants to keep up their brand equity; “the value of a company or brand name” (Lamb, Hair, McDaniel). Selling in department store or third party retailer would damage the brand equity by cheapening the prestige of the brand along with the loyalty of the customer that expect and demand the highest quality and exclusivity from Tiffany & Co. A competitor of Tiffany’s, Blue Nile, is an online retailer of diamonds with no brick and mortar stores. They sell their products online like Tiffany, but with no physical store in the United States. Tiffany & Co. sells their products in their brick and mortar stores and its website, covering a broader range of customers and offering the prestige and exclusivity Blue Nile cannot provide.

Not only are their stores in the United States, they also sell their products and services all around the world. These countries, precisely by regions, include the Asia-Pacific, Japan, Europe, and the United Arab Emirates. The Asia-Pacific region reported 24% (2015) (Tiffany Company Profile) of their sales from the Internet and wholesale operations. Under this region, countries and cities included are Australia, China, Hong Kong, Macau, Singapore, Taiwan, and Thailand. Japan reported 13% (2015) (Tiffany Company Profile) of their sales from the Internet, business-to-business, and wholesale operations. Europe only reported 12% (2015) (Tiffany Company Profile) of their sales from Internet operations. The countries involved in this region are Austria, Belgium, Czech Republic, France, Germany, Ireland, Italy, The Netherlands, Russia, Spain, Switzerland, and the United Kingdom. Lastly, the United Arab Emirates reported 3% (2015) (Tiffany Company Profile) of wholesales of Tiffany & Co merchandise to “independent distributors for resale in certain markets and wholesale sales of diamonds obtained through bulk purchases that are not suitable for Tiffany’s needs as well as earnings received from a licensing agreement” (Tiffany Company Profile). The U.S sold Tiffany’s products from the Internet, catalog, business-to-business, and wholesale operations. The countries involved were the United States, Canada, Mexico, Brazil, and Chile.

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(Tiffany & Co. Annual Report 2015)

Promotion

Thanks to some impressive digital marketing efforts and deep engagement with online consumers, Tiffany & Co., a premier jeweler since 1837, has reached audiences in a new way and is cutting a swath among aspirational brands marketing on the Internet. Reported that 50% of luxury purchases are now influenced by what shoppers found online. Tiffany is leading the way, with top competitors like Blue Nile and Zale’s and Jared as well. Zale’s and Jared’s have more aggressive promotional strategies but Tiffany & Co. is still in the lead on sales. Tiffany’s has a strategy called the power of emotion. Tiffany is impressing consumers and consumer researchers alike, not just through its gorgeous website touting its elegant wares, but by tapping into the sentiment involved in purchasing fine jewelry, particularly engagement rings.

Tiffany offers their products through the retail marketing channel which has worked for the company since the beginning. E-Commerce has also been on the rise for Tiffany & Co. This gives them a direct and broad connection to the consumer and makes service to them the top priority through any means. This is what the Tiffany customer is looking for. Being able to meet Tiffany’s design team and consultants to help make your dream piece come to be is just one specialty service they offer their elite customers.

Tiffany uses a combination of traditional and non-traditional media advertising. You can find print ads for Tiffany in the pages of Vogue, Harper’s Bazaar, Elle, Vanity Fair to name a few publications. These are magazines that Tiffany’s target market is most likely to pick up and look through. They also have advertisements in major cities like New York on various modes of public transportation. These women tend to be very conscious of the high fashion world. Tiffany over the years has made itself an empire by

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not following the standard but setting the standard. In recent years they have shifted from traditional advertising to non-traditional advertising.

Their latest campaign, “Sparkle the world” celebrates “love in all its forms” for the celebration of Christmas it also features real-life couples, including couples and a child and elderly people to indicated that this product is made for all generations. Emotive selling seems to work for Tiffany, with a reported 25% increase in sales after the launch of their former “What Makes Love True” and their engagement ring finder mobile app. The App is being invented to target the younger generation; this focus is for people with smart phones and last minute shopping for the consumers. The app, updated in the second half of 2015, lets users choose styles, carat weights this strategy is perfect for people who have a specific preference on what they want and are looking for in a custom diamond piece. Since the app was invited in 2014 a lot of consumers took to social media to expand the product from Twitter to YouTube, Instagram and Facebook Tiffany’s & Co. has an expanse of products posted via social media to show off the purchase.

Target Market/Segmentation Analysis

Tiffany & Co has made a major stamp on the luxury jewelry industry since it’s conception in 1837. It originally made luxury stationary, flatware, porcelain, etc. then later turned its focus solely to fine jewelry. In the last 150 Tiffany has done everything it can do to broaden its market to as many people as they could possibly reach. They are divided into two major categories; Gift-Givers and Affluent Self-Buyers. Based on purchasing power Baby Boomers and Generation X are the major target segments that Tiffany is selling to.

The primary target buyers are women of an upper middle and upper class socioeconomic position. They are followers of fashion and adhere to aspirational brands. They are of a mature age, between 35-50+, and generally in metropolitan areas or the immediate surrounding areas. These women love to treat themselves to luxurious things and expect to receive them as gifts if not purchasing themselves. The products are generally purchased for special occasion mementoes such as wedding rings, birthday gifts, baby showers, graduations, etc. Tiffany is trying to reach almost every bracket of the market while still retaining the aspirational and luxury brand they have for 150+ years. With the advancement of technology and the Internet Tiffany is connecting with people of a much younger age bracket than they have before. Their presence on social media and other websites is broadening their audience to a more tech savvy demographic, generally millennials.

The primary consumer is not the only target for Tiffany. The spouses, partners, family members and anyone else in their circle of friends of the primary target are the

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secondary buyers of Tiffany brand. A large majority of the products purchased are for others to receive as gifts.

The Tiffany customer is purchasing an experience and a lifestyle on top of the material product. Tiffany strives for excellent customer service, which is something the customer looks for and seeks out. They have personal shoppers on hand for any shoppers’ advice and needs while in the store. This is something that makes Tiffany stand out from its competitors. The customer at Tiffany is looking for classic yet bold style that has stayed true to the brand since its conception.

Tiffany is a very strong brand and well established however, there are still competitors that are fighting for the same market share as Tiffany’s. Blue Nile is one of the largest competitors that Tiffany has. They are an online diamond retailor. They have a very direct connection to the customers but have a lack of physical stores that prohibits their range in the market. Also their lack of physical stores limits their customer service capabilities for involvement in the customers purchasing decisions. Customers are looking for a shopping experience and that is something Blue Nile can’t provide for as well as Tiffany.

Marketing Recommendations

Based on our analysis of Tiffany & Co. we have come up with two marketing recommendations: 1. Sell an inexpensive line under a different name and our second recommendation is to have trunk shows that involve meeting with designers from all around the world at major events. To be precise, our first marketing recommendation is to increase sales in products that are under $500 by 15% within 3 years. This will establish a new product line under a new name in China and the United States due to their increasing demand and economies. There are multiple reasons behind the choice to sell products of $500 or less in retail value under a different name; Frosting by Tiffany's. The first is to strengthen brand value. Now, only the highest quality and price tag items will carry solely the Tiffany name. This further separates Tiffany from all other luxury brands and sets an economic standard with the sale of its merchandise. Devil's advocate will say that this change in brand name will bring about cannibalization and lessen the value of all products under the $500 value. This is what we want. We chose this specific price point because all products at this and under it have a very low sales margin. The idea is to create a larger volume of sales in those products to satisfy the low margin, while further increasing the brand of higher price items, which have a much higher margin. These products would not be sold at official Tiffany & Co. locations. This would be the exact damage to the brand equity we are trying to avoid. We would be able to set up our own section in various department stores or third party retailers we chose to sell in and we could still stand out as a luxury brand in that environment broadening our market share even more. These products would be targeted to a younger and lower income bracket demographic than the standard Tiffany & Co brand.

Our second marketing recommendation is to increase brand value and move the company forward in creative marketing by instituting 5 major events that exemplify Tiffany’s luxurious nature. This will bring an increase in the market share of luxury goods by 3% within the next 3 years. A large portion of profits in the luxury goods sector

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comes from the top percent of the world population, the wealthiest people in the world. Tiffany's does not just sell designer jewelry, but they sell a lifestyle, an accent of luxury that cannot be achieved any other way. These "trunk shows" will not be an ordinary event, but one of mass proportions. We will put on enormous galas that allow guests to wear the most iconic and expensive pieces for that evening. Men and women alike will dawn themselves with their finest clothes when they attend these events. Every aspect will scream luxury from the chairs people sit in, the food they eat, to the bathroom towels with which they wipe their hands. Furthermore, they will be able to meet and talk to the people who designed the jewelry they are wearing. This not only shows the world what Tiffany's & Co. represents as a brand, it also creates social buzz. These events provide great publicity for the brand but also perpetuate the brand’s prestige and privilege that make other customers aspire to be a part of that group. For example, if a group of women go out and one woman boasts about her new piece of jewelry and speaks of its quality and service she received when she bought it, the other women in her group are much more likely to buy from the store their friend recommends. This works because Tiffany's target market is the wealthy, and the social circle of the wealthy. The social buzz of these events will make them an annual destination for the rich and famous, which will in turn wear and advertise Tiffany's products, without us ever having to pay for celebrity endorsements.

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References

Lamb, Hair, and McDaniel. (2016). MKTG: Principles of Marketing. Boston, MA: Cengage Learning

The Statistics Portal. (2016). [Graph illustration shows the Net Sales of Tiffany & Co. Worldwide from 2011 to 2015, by product segment]. Retrieved from https://www.statista.com/statistics/314433/global-net-sales-of-tiffany-and-co-by-

product-segment/

Tiffany & Co. Annual Report. (2016). [Graph illustration shows the Net Sales and Earnings of Tiffany & Co]. Retrieved from

http://files.shareholder.com/downloads/TIF/3067552980x0x885037/6532A4C0- AED6- 477E-8F4A- 5D7A6E989D31/Tiffany_127515_003_BMK_WEB_2015AR.pdf

Tiffany & Co. Company Profile. (2016). Retrieved from http://investor.tiffany.com/overview.cfm

Tiffany & Co. History. (n.d.). Retrieved November 8, 2016, from http://www.fundinguniverse.com/company-histories/tiffany-co-history/

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http://www.fundinguniverse.com/company-histories/tiffany-co-history/

http://investor.tiffany.com/overview.cfm

http://files.shareholder.com/downloads/TIF/3067552980x0x885037/6532A4C0-%09AED6-%09477E-8F4A-%095D7A6E989D31/Tiffany_127515_003_BMK_WEB_2015AR.pdf



https://www.statista.com/statistics/314433/global-net-sales-of-tiffany-and-co-by-%09product-segment/

https://www.statista.com/statistics/314433/global-net-sales-of-tiffany-and-co-by-%09product-segment/

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Tiffany & Co Market Analysis