Tiffany & Co: “Tiffany’s global retail operations once again

demonstrated the ability to generate strong operating earnings

growth despite weakness in certain individual country markets.
Our continued expansion throughout Asia and Europe should
contribute to increasingly consistent and resilient long-term
earnings growth,” 

Facilities Management
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 I. Introduction

Tiffany & Co. (colloquially known as Tiffany's) is an American luxury jewelry and
specialty retailer headquartered in New York City. It sells jewelry, sterling silver, china, crystal,
stationery, fragrances, water bottles, watches, personal accessories, and leather goods. Tiffany is
known for its luxury goods, particularly its diamond and sterling silver jewelry. It markets itself
as an arbiter of taste and style. These goods are sold at Tiffany stores, and through direct-mail
and corporate merchandising. Tiffany & Co. was founded in 1837 by the jeweler Charles Lewis
Tiffany and became famous in the early 20th century under the artistic direction of his son Louis
Comfort Tiffany. In 2018 net sales totaled US$4.44 billion. In 2019 Tiffany operated 326 stores
globally in countries such as the United States, Japan, and Canada, as well as Europe, the Latin
America and Pacific Asia regions. LVMH purchased Tiffany & Co for $15.8 billion in January
2021.

Tiffany’s long term strategic objectives include adding exciting new designs to
compliment the company’s existing core products, expanding the reach of marketing
communications, opening stores in key markets and enhancing the in-store experience for its
customers through dialogue between salesperson and customer. The company plans to introduce
entirely new designs collections periodically. The company is aiming to expand, refresh and
reinterpret existing collections in the coming years.

II. Executive Summary

The case analysis is focused in how Tiffany’s and Co. demonstrated their ability to
generate strong operating earnings growth despite having weaknesses in certain country markets.

III. Time Context

2006

IV. View Point

Michael J. Kowalski

V. Central Problem
Tiffany plans to enter into Indian market because of its ideal growth prospects.
The Indian jewelry sector is one of the strongest retail segments of India.
VI. Objectives
Must
 Convince consumers that authentic, not-traditional jewelry is affordable and more
 More fashionable and exclusive than locally produced jeweler
 Promote brand attributes: Quality, luxury and trust.
 Convince consumers that authentic, not-traditional jewelry is affordable and more
desirable than costume jewelry

Wants

 To increase its control over product supply

 Participants in industry events
 Be seen as a recognized player in the Portuguese and European jewelry industry
 Bringing modernization and design to the market

VII. Areas of Consideration - SWOT Analysis

Strengths
 Established relationships with suppliers
 Increased market with more accessible price points
 Strong brand recognition
 Standard engagement ring setting named a “Tiffany setting”
 Established relationships with suppliers

Weaknesses

 Dual brand perceptions: too nice for average consumer, but too commercial for
high end consumer
 Limited brand loyalty
 Tiffany can't excel abroad because other countries have just enough money
 Bulk sales are not suitable
Opportunities
 Growth in men’s market
 High growth opportunities in Asian and European markets
 They may use a well-known star or supermodel to advertise their brand.

Threats

 Too many competitors

 Diamond supply chain disruption because of local political conflicts
 Profession of imitations
VIII. Alternative Courses of Action

 Produce limited edition and high end Jewelries

Advantage - Tiffany’s timeless jewelry pieces are seen prominently on the world’s most
beautiful people.
Disadvantage - Expensive: Tiffany’s is a brand that is highly expensive probably more than what
it is worth for. However, because of the strong brand image, people are willing to pay for it but it
is losing its sheen in the long run and people are slowly losing their trust in the brand.

 Mature stage of product life cycle.

Advantage - It will attract more grown old who loves fashion
Disadvantage - Lack of appeal for millennial: Though an old name in the luxury business Tiffany
has been unable to capture the interest of youngsters and thus the millennial prefer to shop with
new generation luxury brands which have modern styles and are trendy.

 Ensure the long-term integrity of the company

Advantage – It secures the long term product designs of the company.
Disadvantage - Inability to move from its conventional mindset. The designs of Tiffany & Co.
are traditional American and the brand has been sticking to their old designs.

IX. Recommendation
 Mature stage of product life cycle.

Advantage - It will attract more grown old who loves fashion

Disadvantage - Lack of appeal for millennial: Though an old name in the luxury business Tiffany
has been unable to capture the interest of youngsters and thus the millennial prefer to shop with
new generation luxury brands which have modern styles and are trendy.

X. Detailed Plan of Action

 The company’s key growth strategies are to selectively expand its channels of
distribution in important markets around the world without compromising the long term
value of the tiffany & Co.
 Maintain the Tiffany’s blue box cafe on the fourth floor of its iconic flagship store
in New York City that has become an Instagram hotspot where influencers snap
and share photos of their own “Breakfast at Tiffany’s” experiences.
 Execute business plans and remain focus on achieving its goals on becoming
The Next Generation Luxury Jeweler.