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Running Head: MARKETING PLAN, TIFFANY & CO.

Tiffany & Co.

Marketing Plan

NAME OF THE STUDENT:

INSTRUCTOR’S NAME:

COURSE TITLE:

DATE:
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Running Head: MARKETING PLAN, TIFFANY & CO.

Abstract

Marketing is very critical business function and its effectiveness is reflected in the sakes volume.

A company expects to generate revenue from sales and the increase in sales implies increased

revenue. Due to this sensitivity and relevance of marketing, companies do not take chances in

this business function. To come up with the most effective marketing strategies, a marketing plan

is necessary. During the development of a marketing plan, there are various consideration that

must be put in place to assess the current position of a company in the market place in respect to

competitors. This paper is a development of a marketing plan for Tiffany & Co. This is a

company that makes jewelries (Shityko, Scherbakov & Suruntovich, 2016). The paper assesses

different marketing aspects that should considered to determine the best marketing strategy at the

market place. The paper is broken down in different sections of analysis to determine the actual

position of Tiffany & Co. these sections are situation analysis, customer analysis, competitive

analysis, SWOT analysis, marketing objectives, financial and implementation of marketing.

Keywords:

Proficiency, authenticity, jewelries, accessories, millennial, elegant, emotive selling

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Introduction

The success as a company is a factor of many inputs which rely on both internal and

external environment. The ability of the management to understand how these fields affects the

performance of a firm and how it alters the actual decision by potential customers in essential.

To gain insights on how different factors affects sales at the market place aids in development of

the marketing strategy that will enable a firm to record more sales and gain more popularity from

marketing campaigns. To understand what affects marketing and consequently sales, firms

conduct an in-depth industry search to gain insights about customers, competitors and the

position of a firm in its industry of operation. Having a clear insight and the knowledge about the

market aids in development of a marketing plan that can be relied upon for the purpose of

strategic marketing. A marketing plan is hence developed from compilation of the results

collected from the industry research comparing and contrasting different variables of demand

and supply at the market place. Below is industry search of Tiffany & Co. which is hence the

marketing plan for the company. Tiffany & Co. is a company that is based on jewelry and hence

operates in beauty industry. Its marketing plan from industry search is as follows.

Situation Analysis

Situation analysis is the process of assessing threat ad opportunities that are in a firm’s

industry of operation. This is necessary because it reveals the level of competition for resources

inputs in the industry and the position of a firm in comparison to other direct competitors.

Tiffany & Co.’s marketing plan is dependent on many factors that include market supply

structure, market drivers, market trends and market growth.

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Market supply structure

The market supply structure is analysis of other players who work in like with a

company. There are different companies that Tiffany & Co. is dependent on for the purpose of

supply of raw material and supply of consumption force. These can be categorized into two large

supply players, termed as selling industries and buying industries. The market supply structure

for Tiffany is dependent on other secondary and tertiary industries which help the company to

remain in production. For the selling industries, these are industries from which Tiffany gets

their raw material from. They are players in other industries who supply different component that

are combined together to make a single piece of jewelry. Most of this sellers are in mining

industry because jewelry are made from precious stones which are mined underground. This

players who are in this industry who support the day to day operation of Tiffany & Co. are:

Gold and silver mining companies, which supply Tiffany & Co. with gold and silver.

These as raw material is widely used for coating purposes of any kind of jewelry to increase its

value through look and appearance. In other cases, gold and silver is used to make pure golden of

silvery jewelry to suit different tastes and preferences of consumers in beauty industry. The

second selling industry used by Tiffany & Co. to outsource raw material is copper, lead, zinc and

nickel minding companies. These as inputs are used to make bracelets and chains among other

jewelries. Tiffany & Co. also depends on precious stones mining companies, as they use these

precious stones to make pendants among other jewel commodities attached to other jewelries.

Tiffany & Co. limited also outsources phosphates and other minerals that are used to strengthen

jewelries to increase their value and utility through durability.

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To reach their customers, they rely on different industries to act as distributors of the final

finished commodities. Tiffany & Co. sells to direct consumers who prefer to consume directly

from the source. The major reason why a person might prefer to buy direct from Tiffany & Co. is

in cases where one needs customization of their jewelry. Dealers in wedding services are the

second industry that form a certain percentage to the potential market of jewelries from Tiffany

& Co. These buys on behave of bridal parties with an intention of offering the best wedding

jewelry experience. Tiffany is not in all cities across the world and this is a hindrance against

reaching customers in same markets. Therefore, for wide distribution of their jewelries, they sell

them to wholesalers dealers in the line of beauty of jewelries in particular. These can supply to

jewelry retailers like watch details who have more contact to actual and the end user of jewelries

from Tiffany & Co. There are some end users who prefer to do their shopping under one roof

and hence if they cannot find a jewelry outlet under such a roof, they might never make an effort

to acquire such. Therefore, to reach these market segment, Tiffany & Co. sell to departmental

stores who in turn sells to end users on retail basis.

Market drivers

Needs and wants compels consumers to make actual purchase. The feeling of utility

absence compels customers to buy from the marketplace to satisfy their missing demand and

hence increase quality of life through satisfaction. The prices of gold and silver is the first driver

that affects the cost of production for Tiffany & Co. When this cost is very high, the company

has to use cheaper marketing strategies to cut down expenses. When these prices are not high,

the company is left with more on the expenses budget allocation hence intensified marketing. Per

capita income, which can increase or decrease. When the per capita income decreases, people

have more disposable income to fulfill their discretionary needs. Therefore, a slight marketing
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information lures a potential buyer to make an actual sales. Tiffany & Co. is hence relived from

too much marketing expenses and only users to create awareness to reach more customers.

However, when disposable decreases, the company has to lure potential customer into making

actual purchase. This implies the need to use cheaper marketing options but yet strategic

marketing strategies to lure customers and reveal why they should make actual sales.

Marriage rates is the third driver and consequently, a direct factor that impacts

performance of Tiffany & Co. during marriages ceremonies, jewelries are widely used to make

the day colorful and ultimately, signifies vows signed between the bride and the groom. Increase

in the rate of marriage implies increasing potential customer for Tiffany & Co. To reach these

customers, Tiffany & Co. need to market among younger generation because these are people

who are likely and obviously start new families through marriages. Decrease in marriage rates

implies less demand fir jewelries and consequently, reduced potential customers for Tiffany &

Co. The household earning which symbolized economic status is a family also symbolizes their

likelihood to spend on jewelry. It is arguable that jewelries are not needed for a living and hence

not everyone will buy them. Some people will feel they are unnecessary and hence will o sped on

them. Therefore, for Tiffany & Co. to make substantial sales from their marketing, they must

strategy market segment of probably people who earn significantly high earning in the

households. These people are likely to buy more than spending more to market jewelries to

people who come from low income earning households.

Market trends

For a substantial period of time, prices of gold and silver have been reducing and

significantly the prices of jewelries. This has consequently implies low return to players forcing
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some to exit from the industry (Pereira, Teah, Sung & Teah, 2019). This reduced the marketing

budget allocation because of reduced competition which implies need to intensified marketing.

There are players who have been shifting to the fine jewelry which is characterized by high

income individual. This creates has been leaving Tiffany & Co. with a larger market share shared

previously with these exiting players. This has been changing marketing information and

consequently, marketing budget allocation for Tiffany & Co.

Market growth

Of late, the beauty industry has not been performing that well and hence companies have

been going for options which assures the decreased expenses. Therefore, less is being allocated

for marketing to remain profitable even in the face of decreasing sales. Take for instance the

industry of industry stores, which have fallen by 2.4% from $30.2 billion as at 2019 from 2014.

The revenue for Jewelry manufacturer has also decreased by 3.3% to $7.3 billion during the

same period of time.

Customer Analysis

Customer analysis if an important functional area in a business that helps in identification

of target customers followed by the assessment of how their satisfaction is met with a rand in

question. For Tiffany & Co., customer analysis can be broken down into the following section:

Demographic analysis

Tiffany & Co. target women majorly because they are the major consumer of jewelry.

Therefore, marketing is features ladies more frequently than they feature a man in the marketing

content. Moreover, the company aims at reaching young men who have proved to be end users of

some jewelries. These when they consume they buy luxurious brands of luxury jewelry because
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they are from the population demographic of high income earners. It is not usual to find a young

man sending heavily on jewelry if they are from middle or low income earning households.

Besides, the marketing information that the public is fed with is aimed at reaching young men

who live independently. This are majorly in their youthful stage and have certain preference and

taste on beauty products. Therefore, they have potential of consuming jewelries just like ladies

do. Men living independently have higher disposable income to spend on discretionary products.

Therefore, identifying these market segments is necessary to avoid spending on marketing in

segments which do not have potential customers to consume jewelries.

Market psychographics

People’s consumption is a factor of their psychology and the psychological cognition that

one develops in a certain brand either in term of brand name, pricing among other factors affects

one decisions to pay. There are several market psychographics surrounding Tiffany & Co. and

they affect consumer’s decision to make actual purchase. Consequently, these market

psychographic affects marketing information that Tiffany & Co. relays to the members of the

public with an aim of reaching potential customers.

Charging high prices is likely to be prohibitive among customers in the future. There is

the need to make marketing impact the mentality that the perceived prices are not prohibitive but

rather charged due to high quality. This way, people will consume marketing not from the

perspective of being overcharged but rather from the perspective of being offered with quality.

The second market psychographics is high likelihood of the market being concentrated with

young generation (ATAVUTIPAKORN, 2016). These are people with high demand of jewelries

hence possibility of market expansion in future. Therefore, there is need to increase marketing
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create awareness and have attention of new customers who are being introduced in the jewelry

consumption behaviors.

Currently in the market, existing customers seems to shop for brand rather than jewelry

themselves. People have that mentality of associating certain brad with quality and of course

durability. Therefore, irrespective of prices charged, people will still consume these brands to

satisfy their needs for jewelry. This identifies the need for Tiffany & Co. To make their brand

name to stand out in the market place. This is to withstand existing and future direct competitors

and to retain their consumers even at the verge of decreeing industry performance. There is a

30% of unrealistic customers who exist in the market place but are still in jewelries. Tailoring

marketing information to reach out to this potential customers is necessary as would assure

increased market share for Tiffany & Co.

Market behaviors

Customer’s sensitivity is increasing and they demand for reassurance before actual

purchase. Through marketing, Tiffany & Co. should tailor information passed in a way that

customers feel assured that their needs will be are attended to in cases where they are

disappointed by purchase from Tiffany & Co. Customers at the marketplace are also opting for

authentic products and hence, they are avoiding buying from outlet dealers. To impact

authenticity, Customers sensitivity is increasing and they demand for reassurance before actual

purchase. Through marketing, Tiffany & Co. should tailor information passed in a way that

customers feel assured that their needs will be are attended to in cases where they are

disappointed by purchase from Tiffany & Co. should ensure that they identify who are their
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distributors from whom customers can get genuine jewelries from. If a customer is not satisfied,

they express remorse and consequently, decides never to buy from a dealer anymore.

Market needs

People in the market place are more sensitive with logo at any given time they need to

make a purchase. People look deeply at the logo of the brand they are purchasing from because

consumers are more logo-centric in today’s market. The marketing information in case of visual

platforms should accompany the logo for Customers sensitivity is increasing and they demand

for reassurance before actual purchase. Through marketing, Tiffany & Co. should tailor

information passed in a way that customers feel assured that their needs will be are attended to in

cases where they are disappointed by purchase from Tiffany & Co. This would help customers to

identify the brand with the logo and hence maintain loyalty over habitual consumption of

jewelries from Tiffany & Co.

The consumption behavior today is also characterized by immerse feeling of customers.

Marketing should therefore create this feeling to the target market. This would lure them to make

more actual sales from Tiffany & Co. and consequently remain loyal to consumption of jewelry

made by Tiffany & Co.

Market segmentation

The exercise of market segmentation is necessary in marketing as it allowed diving the

market place in smaller ground characterized by existing and potential customers. For Tiffany &

Co., market segmentation is based on more accessible market niches. These are niches that are

characterized by women and young men. Moreover, the marketing is tailored to reach customers
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from high and medium earning households, these are families who can afford regular and

luxurious jewelries from Tiffany & Co.

Competitive Analysis

To come up with the right marketing content, there is the need to understand your

competitors. This ranges from direct competitors and those who deal with similar products that

can offer almost the same purpose and feel as what a company offers. For Tiffany & Co., there

are different players who can be assessed o basis of what they offer, how they distribute to their

customers, how each of these competitors performance at the market place and in terms of the

target audience.

Product line competitive analysis

Tiffany & Co. competes directly in their market of operation with Zele Corporation, Kay

Jewelers Jared, Richemont, Coach, Kate spade and Stuart Weitzman. These either deals with

direct or substitutes jewelries as those offered by Tiffany & Co. Their breakdown of what they

offer at the market place is as follows:

Tiffany & Co. itself is known for their beauty brand which include jewelries, fragrance,

home accessories and watches. Tiffany & Co. compete with Zele Corporation and Kay Jewelers

Jared who sells bridal accessories, fashion and watches among others. They also compete

directly with Richemont who are majorly known for watches and jewelry. There are other

players who have also diversified in the beauty and accessories industry although their brands are

not so common in the jewelry and accessories industry. These compete with Tiffany & Co. even

though on indirect basis but being in the same market, there is a certain market share that they
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compete. They include Coach, Kate spade and Stuart Weitzman. They offer women handbags,

men’s accessories, women’s accessories and other jewelry related accessories.

Channel of distribution

On basis of competition that is posed at distribution level by direct competitors, different

competitors uses different channels to reach to the existing and potential end users. For Tiffany

& Co., this is an established firm in the industry boasting ownership of 321 stores from where

their customers can buy from. This also stands out as an independent distributor for their

jewelries and accessories. Tiffany & Co. is also involved in retail for some market segment and

uses online segment to reach more customers virtually (Cowley-Cunningham, 2016).

Signet offers distribution competition to Tiffany & Co. on basis of retail distribution and

online selling. They have 3,334 stores, which is a big difference from store outlets of Tiffany &

Co. others like Richemont and Tapestry Inc. poses competition against Tiffany & Co. in retail

business, wholesale sector and online sector. To survive this stiff competition, Tiffany & Co.

should assess which of this competition is the biggest threats and which does not really count. In

this case, Tiffany & Co. should identify their competitive strategy to outdo other players.

From the statistical figures of 2018, different firms in this industry performed and

claimed different market share due to effectiveness of their distribution competitive. Among

them, Signet was leading, followed by Tapestry, Tiffany & Co., Hezberg Diamond Shops and

Claire’s stores were the last in terms of distribution sales. With regard to the audience target by

players in this industry, different players poses competition to Tiffany & Co. in different arrays

of approach. Tiffany & Co. serves bridal ceremonies as their primary customers and gift

presenters as their secondary customers. Richemont’s primary customers are people with high
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income and bridal ceremonies from part of their secondary market. Signet is a direct competitor

of Tiffany & Co. because they serve bridals as their primary customers and target their secondary

market among people who earn between $35,000 and $150,000 on annual basis. For Tapestry,

they serve young generation as their primary market and uses cost focus as their competitive

stagey to serve customers who are cost sensitive.

SWOT Analysis

SWOT analysis helps market to assess and understand the business environment they are

operating from. For Tiffany & Co., the SWOT analysis for the company helps to understand the

business environment in terms of which are their strengths I the industry, weaknesses,

opportunities available and threats to worry about.

Strengths

One of the greatest strength about the company is their success in terms of global market.

The company has 307 operating stores all over the world. The selling channels that the company

uses is another factor that has been a strength for the company. The independent distributors and

internet catalogues has proved to trigger the need to buy in customers hence increased and sales

consistency.

The company has also relied on the new environmental standards establish their strengths

in the industry. Take or instance the Tiffany box that is used for packaging, this can be recycled

implying they are eco-friendly. The company has also established global sales as their strength,

in this case, 53% of the sales that the company records are from global market. This implies that

even under the face of still competition in the U.S market, the fir can still remain profitable

because the U.S market accounts for less than half the sales revenue of the company. The
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company uses labor force mainly from U.S labor market. This creates a picture than the first is

there for welfare of immediate society. This increases customer’s loyalty and employee’s

commitment thus low employee’s turnover rate. To be particular, 97% of the labor supply comes

from U.S residents. The company has been practicing executive customer care serves. This has

increased customers satisfaction hence building reputation of the company.

Weaknesses

Tiffany & Co. has been facing weaknesses despite the success and reputation that the

company has had at the marketplace. One of the most noticeable weaknesses is that Tiffany &

Co. has not been able to make significant sales I emerging markets. The company relies on their

existing customers implying in case of shift in their taste and preference, the company can have

very troubled performance. Termination of big corporation has also stand out as weakness for

Tiffany & Co. Take for instance the termination of agreement with swatch in 2013 on 20 years

licensing and distribution. Such termination almost brought Tiffany & Co. operations into

standstill.

The company has also been weak since 2011 when the rate of inventory turnover

decreased. Since then, the company has never made sales as fast as they made before. This is a

weakness in that the company is not enjoying huge profits and less storage expenses of finished

goods as they did before the fall in 2011. The company is also weaken because it does not allow

in-house credit. This has been denying the company the ability to make actual sales to customers

who would prefer buying on credit basis.

The company is also weaken in term of the online market share that they claim in

comparison to competitors. This equally applies to the watch market as there are other very still
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and solid companies that Tiffany & Co. have not been able to cope with the sales volume of their

watches. The company is not known to put emphasis on personalized order like Cartier among

others who are direct competitors. This denies the company the market share that wants to

consume tailored jewelry to suit their unique specifications. Although the company has been

producing strong silvery jewelries, the company has kept their brands limited. The company has

not diversified in as many jewelries as possible and arguably, limited consumption market.

Opportunities

There are many opportunities that are emerging for Tiffany & Co. and they are signals

that things might turn for better for Tiffany & Co. from the market analysis, the industry is likely

to growth by 13.6% by the year 2021. This will consequently lead to more customers introduced

into the market hence increased sales revenue and market share. By 2022, the per capital income

is likely to increase hence increased DPI among existing and potential consumers. This implies

to ore available cash to consume on discretionary commodities like jewelries. The price of gold

and silver is also expected to decrease from ores (Lakshmanan, Ojaghi & Gorain, 2019). This

implies decreased costs of obtaining gold as a raw material. The company will hence incur less

expenses decreased expenses on raw materials which could be reflected in the income and the

prices that Tiffany & Co. charge to their biggest buying industries. The projected population

growth from 2015 to 2022 is also a signal they there will be more customers entering market and

equally, emerging markets. This is an opportunity of Tiffany & Co. to sell big and increase their

return and possibly, market share. Tourism is on its rise and consequently, the need for that

lousier self-treatment. People therefore spread big on jewelries for their touring expedition. The

young generation is also projected to grow by 2022. These are the main consumers and end users

of jewelries hence possibility of market expansion for Tiffany & Co.

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Threats

The biggest threat has been emanating from specialty retailers. They record more sales

more than parent companies. Moreover, Tiffany & Co. has been facing threat of online customer

share, because rivals have established more online presence than Tiffany & Co. regulation in

foreign market economies has also been a threatening the performance of Tiffany & Co. due to

fear of breach of such legal regulation that can have licensing of Tiffany & Co. revoked in

involved countries. The changing political environment is also a threatening factor for Tiffany &

Co. This has been daring drastic destruction of some foreign market for Tiffany & Co. due to

abrupt chances of civil relations.

Moreover, less people are opting for marriage and singlehood has become a norm. The

decreasing rate of marriages implies less demand for jewelries for bridal occasions of gift

purpose to once lovers. The economy is also moving from worse to the work globally. This

decreases people’s DPI to spend on discretionary commodities. This has increased opportunity

cost and commodities like jewelry are left out to satisfy consumption of other essentials. Besides,

the USD appreciation projection is bond to weaken the buying capacity of these currencies. This

consequently will reduce the buying power of customers from this nation and hence reduced

foreign return for Tiffany & Co.

Marketing objectives

The marketing objectives for Tiffany & Co. are few but they are all oriented at increasing

Customers experience and hence sales volume of Tiffany & Co. the first marketing objectives is

to increase customers in-store experience. Through the marketing information, Tiffany & Co.

communicates to customers how interactive their stores are. This information is necessary as it
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exposes customer on how they can engage more with attendants to express what they need and

how they need their needs served. This special relationship between customers and attendants

increase the satisfaction that customers derive from in-store purchase activities. The second

objectives for marketing is to establish more stores in strategic location. Through marketing,

Tiffany & Co. should be able to assess the feedback of customers about how accessible Tiffany

& Co. jewelries are in their location. From this feedback, Tiffany & Co. should be able to

identify the best location to establish more store outlet where end users can purchase their

jewelries.

The third marketing objective for Tiffany & Co. is to create awareness of the new stores

that have been established in different locations. Establishing more outlets and stores is not

enough if potential and existing customers will not be made aware of existence of such stores.

Therefore, the establishment t of new stores is complete if it if followed by creating awareness of

their existence. This is what marketing is meant for Tiffany & Co. to create awareness about

customers for new stores near their residential or commercial places. Creating awareness of the

new stores increase customers curiosity to try the new stores to assess the in-store experience

they will receive from these stores. If they like how they are served and how their needs are

attended to, they become regular shoppers from such stores.

The third objective of marketing for Tiffany & Co. is to enhance the relevance of the

information that is featured in different prices of marketing strategies. Depending on

demographics and the stage of development of a company, different information should be

communicated through marketing. For Tiffany & Co., marketing is to enhance that they remain

relevant to serve the need of customers and they remain grounded to be in line with evolving

needs of customers at the market place.

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The fifth objectives why Tiffany & Co. is so sensitive in marketing is their urge to remain

consistent in improving the design of through brands. Refinement of brands gives it a new look

and elegant feel to the end user. Through marketing, Tiffany & Co. should be able to introduce

customer on how different brands have been refined and how these refinement increases

customers experience. Without education on purpose or refinement, customers might fail to

acknowledge the relevance and the reason to keep on changing brand design (Serdyuk &

Votchenko, 2019).

Marketing strategies

There are different strategies that should be used simultaneously in marketing for optimal

relevance of marketing communication. Ignorance of any of these strategies can mean poor

performance of Tiffany & Co. in certain market segment. Therefore, to approach all market

segment strategically, different strategies are used simultaneously. For Tiffany & Co., the best

marketing strategies are marketing to the target markets, positioning marketing and marketing

mix strategy.

Target markets

The primary market for Tiffany & Co. are millennia who are looking for unique jewelries

with luxurious feel. Therefore, marketing information is to enhance these millennial gets

awareness of different designs of jewelries and accessories that they can get at Tiffany & Co.

Tiffany & Co. also serves customers from high earning households who wants their status

defined by their jewelries. Therefore, marketing information should be tailored to associate

jewelries from Tiffany & Co. with status and luxurious feel. This way, such customers would get

lured to buy from Tiffany & Co. as a way of defining their status.
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Moreover, Tiffany & Co. sells largely to women who are between 18 to 35 years and

these majorly come from high-middle income earning household. Marketing should thus be

tailored to identify with these women and their spouse as well. This is because most of these

ladies do not make actual purchase themselves but their influence their male spouse to buy for

them. Marketing should also be tailored in a way that can be consumed by elderly generation

past their youthful stages. This is because this market segment has proved to be consumers

especially for luxurious brands, not for themselves but for gifting purposes.

Positioning

As a marketing strategy, there is a nothing that Tiffany & Co. has been determined to

maintain at the market place. Position marketing is used to create and emphasis on certain image

which existing and potential consumers can use to identify the dealer or rather players from

whom they consume from. Marketing information and content is used to refer accessories from

Tiffany & Co. with luxury feel and quality. Therefore, people who identify themselves with the

best from the market are likely to consume from Tiffany & Co. due to marketing information

which references anything from Tiffany & Co. to be of luxurious nature and high quality hence

durability. Moreover, the company has been determined to remain refining their design and

through marketing, the company has been creating awareness and knowledge of refinement and

innovation. Therefore, to reach customers who would like to identify their consumption with

innovation and unique styling, marketing should feature this information to reach and lure these

customers in making actual sales from Tiffany & Co.

The company has also been position their brands to engagement functions and

ceremonies. Therefore, as a marketing strategy helps customers with engagement motives to

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consume from. This strategy has helped them to reach and maintain large customer base looking

for luxurious feel of jewelries and accessories symbolizing their engagement and marriages.

Marketing mix

This is a third strategy of marketing, it has been used and should be continually used by

Tiffany & Co. to remain competitive in the industry of operation. This is a strategy of marketing

comprises of different factors with Tiffany & Co. should modify to make their preference ore

solid at the marketplace hence more competitive to existing and potential customers. These

factors are:

Product

Tiffany & Co. has been making specialty jewelry products, this as a marketing strategy

has been used ton impact specialty feel for anyone who buys any jewelry or accessory from

Tiffany & Co. The strategy of marketing ensures that customers do not feel subjected to

uniformity over what they consume but a room is left for each customer to decide the specialty

of their consumption partner. The company also produces and sell customized water bottles,

watches, designed silver wear and even leather premium leather wears. This is a marketing

strategy impacts personal feel in every consumer who is looking for customization. Tiffany &

Co. uses sophistication in production to impact an elegant feel for the final product. This

marketing is necessary in impacting customer’s feel of consumption and satisfaction improved

what they previously consumed. The unique way they Tiffany & Co. wraps customer purchases

is also a marketing strategies in a way. It encourages customers to should from Tiffany & Co.

and get their accessories and jewelries shopped wrapped in a luxurious and elegant feeling blue

boxes.
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Price strategy

This is a marketing strategy is used to lure certain consumers in a given income bracket

to consume a given product. As a marketing strategy should be used differently among different

consumers in the market place. There are those people who identify their personality to that of

affluent people and hence, they only consume more to impact the feeling of their affluence in

their immediate society. There are other consumers who might not have much to spend but at

least can risk to spend significant amount at times, and these are majorly from middle income

earning households.

As a marketing strategy, Tiffany & Co. uses pricing to attach the feeling of affluence to

their jewelries and accessories. Affluent people in the society are known to consume almost the

most expensive brands at the market place. Since Tiffany & Co. associated their accessories and

jewelries to luxury, prices charges are felt to be affluent in nature. This lures people to spend and

but from Tiffany & Co. and impact affluence in their personality.

Affordability has almost been used as pricing marketing strategy. The strategy should be

maintained because it helps increase the revenue, especially from the middle class income

earner. These are the largest group in most market and hence optimizing their sales can guarantee

increased revenue. This strategy is effectively and fruitful for Tiffany & Co. as has proved in the

future. Take for instance the affordable but still affluence feel price that has been charged by

Tiffany & Co. ranging from 430 to $60. This has enabled Tiffany & Co. to increase sales

revenue and hence the marketing strategy should be maintained for increases sales in future.

Promotion strategy
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Most people purchase from their emotion to satisfy their needs of urgencies. Although

this is risky, people still shop out of their emotions because this is when a need seems to be at its

climax. This is the reason why Tiffany & Co. has been impacting emotive selling in online

platform. This strategy should be used and intensified to impact different emotions for different

accessories and jewelries that are offered by Tiffany & Co. Ability to create this emotions among

existing and potential users can increase cash receipts for Tiffany & Co. Consequently, this can

increase the rate of inventory turnover for Tiffany & Co. which is a signal of success in

operations of Tiffany & Co. in comparison to direct competitors.

The ring finder app is another promotional marketing strategy that has been success for

Tiffany & Co. This marketing strategy should be entirely embraced to feature all accessories and

jewelries that are available from Tiffany & Co. making this app as interactive as possible impacts

customers online purchase experience like it would have been the case in in-store purchase

experience. This as a promotional marketing strategy should feature simple online platform for

users across different demographic statistics to use and hence locate differently what they are in

need of from Tiffany & Co.

People consumption behavior are evolving and print media is being abandoned with time.

This signifies the need to put less emphasis in print media marketing for Tiffany & Co. and opt

to optimize online and visual display marketing. Tiffany & Co. has put this in the front line in

marketing target and should be entirely embraced. Digital marketing is the new form of

advertising used by competitors and hence the need to take chances. Remaining behind can cost

Tiffany & Co. customers and consequently, reduced sales volume. Tiffany & Co. has established

goodwill karting through online catalogue and this as a marketing strategy should be increased to

uphold competitive image for the company.

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Place strategy

For a company to gain a significant a reliable market share, place as a marketing ic

strategy really counts. It determines the types of customers a company will be serving in terms of

their economic capability. Tiffany & Co. have taken chances and should utilize more strategic

location to p=optimize sales globally. The official headquarters is one is the strongest place

strategy Tiffany & Co. established. Basing this official headquarters in New York was and is still

essential in maintaining the image of luxury feel for their jewelries and accessories. The

company should hence establish more outlets in big cities like new where there are people with

substantial disposable income to consume from and from where people can feel affluence when

making their purchase.

Tiffany & Co. has also taken chances on how they have been establishing their stores in

major cities. The same strategy should be used to go deeper into global market. Tiffany & Co.

should consider establishment a store in also every capital city of countries with developed

economy. This can increase the sales volume that Tiffany & Co. makes from global market and

consequently net worth of the company.

This marketing strategy can make the solid establishment of Tiffany & Co. as a

multinational corporation company and hence increase their impact at the market place, the

company can have high likelihood to control the power of supply in terms of prices charged by

gold, silver and precious stones miners. Increased strategic location in capital cities would also

help to reach more income earners because most of them operate at capital cities. This would

hence generate an increased dependent on high income earners and consequently, increased feel

of luxury and affluence of jewelries and accessories made by Tiffany & Co.
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Running Head: MARKETING PLAN, TIFFANY & CO.

Service strategy

Companies impacts different images to customers due to the proficiency of staffs

employed by an organization. This strategy when used strategically increases customer’s loyalty

and frequency of their shopping habits. Locating stores I ‘high streets’ impacts the feeling of

high services from a store. This strategy has been in use for Tiffany & Co. and should be

intensified. This is to attack the feeling of high quality service and professionalism from staffs in

these stores. This could increases customers traffic visit with an intent of trying out the quality

and the professionalism of the services they will receive from serves and attendants in such

stores.

Regular training of employees is also necessary to impact the service strategy of

marketing. Training of employees impacts them with knowledge and skills on how to deal with

different customers and how to handle different personalities. This impacts competence of

employees and hence their prowess. Moreover, training employees fosters the effectiveness of

service marketing strategy in perspective that they, they administers master class customers

service. Tiffany & Co. should hence remain grounded to motivate employees through training

programs to enhance their competence and commitment.

The return policy is another service marketing strategy that is used by players at the

market place. This is available in cases of fault purchase from a store in cases of dissatisfaction

from purchase, this kid of service marketing impacts the feeling of concern in customers and

they feel that they buyers from whom they consume from value their money. Tiffany & Co.

using this strategy increase the relationship between customers and the company. Customers
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could not feel like they are being overcharged due to the notion impacted by the policy but

instead, it could foster increased satisfaction after a purchase.

Financials

If the marketing strategy that a company has in place can be effective, sales forecast

should be able to predict cash flow that the company will have in future. Enacting above

identified strategies in Tiffany & Co., it could lead to a more realistic sales forecast. However,

there are many underlying factor in the u=industry which Tiffany & Co. operates from. This

factors makes sales forecast to drift even if he above identified marketing are effective. To be

particular, the performance of the industry is expected to decrease due to different adverse events

in the global economic field and political fields.

The snapshot above is a representation of forecast of performance of sales and different

financial statements elements for Tiffany & Co. up to 2023. From the above snapshot, there is

high likelihood that Tiffany & Co. will have consistent average sales volume of above $400
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million. However, operating profit is expected to decrease by the end of 2020 given many

underlying events that are happening across the globe. One of them is the Covid-19 outbreak that

has brought almost everything into a standstill. The trend is likely to continue even in 2221 but

by 2022, the company is likely to have increased sales operating profit as a factor of strategic

marketing strategies when market stabilizes once again.

Consequently, due to reduced operating profit, Tiffany & Co. is likely to suffer decreased

net income at the end of 220 and 20201 consecutively. However, Tiffany & Co. will enjoy

increased net profit by the end of 2022 after global economy has recovered and probably

stabilized from Covid-19 pandemic. The same results will be reflected in both net and operating

margins. They will both fall in 20202 and in 2022 but there is likelihood of improvement in

2022.

Marketing Budget Forecast

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From the snapshot above, has been incurring gradually almost uniformly on their budget

for marketing from 2015 to 2091. This can be related to fair economic performance hence people

have been responding to marketing information and strategies by making actual purchases.

However, as of 2020, the marketplace is badly performing globally. To remain competitive firms

will have to incur more on advertising to lure people to consume even in this bad economic

times. The marketing budget of Tiffany & Co. is expected to heat the highest of $500 million by

the end of 2020 and at least $550 million by the end of 2021. By this time, the economy is

expected to start performing better. Therefore, the budget will start coming back to the normal

average of $320 million by the end of 2023.

Implementing this marketing plan

1. Setting realistic expectation

There is what is expected to be achieved after an organization has advertised their brands

at the market place. The expected is a positive impact in the organization which is expected to be

reflected in the sales, of an organization. However, there are some expectation that cannot be

achieved under a realistic market place. This kind of expectation hinder the success of marketing

efforts by an organization. Moreover, unrealistic expectation can kill the morale of sales and

marketing department because they can feel like they are way too far from realizing the set

objectives by the organization. Tiffany & Co. should therefore ensure realistic goals and

objectives is the first thing done in the implementation of the above marketing plan. Realistic

objectives can be set using past data on firms performance. These objectives can slightly be

above or below what has ever been recorded by Tiffany & Co. Anything that is above within this

range is therefore unrealistic expectation.

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2. Team building and resources acquisition

After these realistic expectations have been predetermined, it is necessary to ascertain

who will be behind realization of the set goals and objectives. This are people who will lay

different roles in the marketing efforts with a common goal of increasing market share and

consequently, sales volume. At this stage, different roles are assigned to different people

according to their specialization. This stage calls for specialization and division of labor to

ensure that any participants who is allocated any role of proficient in the field of marketing that

they have been allocated. If these stage is not done carefully, Tiffany & Co. could find its

marketing ineffective. Ineffective market communication is wastage of time and resources

because the cost incurred is not earned back from the marketplace.

After the team participants have been identified, it is import to ascertain how much

financial resources each should be allocated. This is necessary because it helps in a breakdown of

the marketing budget allocated. After resources have been acquired, they distributed

proportionately to the kind of responsibility each of this participant is mandated to.

3. Thorough communication

Marketing is at times intended to create awareness, remind customers, and encourage

customers to continue consuming or simply informing customers about refinement and changes

to the previous brands. Therefore, the team involved need to understand what is intended at by

marketing communication. This helps participants to align themselves and their skills to meet the

purpose of marketing. Communication of all marketing derivable acts as a foundation of

knowledge to participants of why they should realize the set goals and objectives. Moreover,
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Running Head: MARKETING PLAN, TIFFANY & CO.

communication of the plan helps the marketing participants to know the role played by each

other and how they can collaborate some tasks while discharging their marketing duties.

4. Building tasks and timeline

After the team has been identified, responsibilities issues and acquired resources

allocated, the stage follows. This is where the management should develop the task for each of

the participant and the timeline within which each of these tasks should be achieved. This stage

is critical because is enables strategic approach to each task assigned. This acts as a guideline ion

how duties should be discharged. This is necessary to avoid prolonged marketing functions or

sort term marketing function. Either of these cases can lead to undesired results for Tiffany &

Co. Therefore, task and timeline development enables transiting from one marketing function to

another.

5. Drawing success tracking dashboard

For all developed tasks of the project, the success of each is when the deliverables have

been attained. These derivable are the intention why the marketing was done. Therefore, to

ensure that each marketing function has been attended to sufficiently, having a tracking

dashboard is necessary. This is a dashboard which the progress of marketing should be reflected

on. From the dashboard, it is possible to ascertain if the progress is behind predetermined

timeline, ahead or is in line with the predetermined dashboard. This dashboard can be used to

forecast the overall marketing success by analysis how the marketing is progressing in line to the

predetermined progress captured in the dashboard. Where progress of marketing is lagging

behind, the manager have the opportunity of impacting changes to ensure everything is optimally

performing to realize the common end goal of different marketing strategies.

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Running Head: MARKETING PLAN, TIFFANY & CO.

6. Regular monitoring of marketing performance

With the dashboard in place, it remains the duty of the manager at marketing depart to

keep watch on the progress of the marketing efforts. From this regular monitoring, the manager

should be able to identify signal of marketing poor performance, signals of effective marketing

efforts and should be able to give feedback to the marketers involved. From regular monitoring,

the manager should also be able to assess which participant is lagging behind or which marketing

strategy seems to be inappropriate in certain market segment. This should pave way of enacting

changes of improvement to derive maximum benefit from the marketing business function of

Tiffany & Co.

7. Impacting flexibility and adapting to future changes

During the process of monitoring the performance and the progress of marketing, some

variables might be identified to be deviating from he expected way. This can signal failure of the

marketing efforts and hence the need to modify such variables. Modifying in this case implies

changing either the dashboard or input that is deviating. This establishment of change is very

critical because if Tiffany & Co. cannot adapt, then such changes with not impact any

improvement in the progress of marketing. Ability to adapt to such changes is impacting

flexibility to accommodate unexpected changes to remain focused in marketing function.

8. Giving feedback on marketing performance

Feedback is as important as any other stage of implementing the above drawn marketing

plan. This is the communication of the observed progress of the marketing department. This

communication is very important because it motivates participants either to work harder or to

maintain what they are doing. In cases where marketers are poorly performing, giving them
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feedback enables them to identify what they are doing wrongly. This is perfect opportunity to

improve their weaknesses and hence performance. In cases where markers are performing in a

recommendable way, giving them feedback motivates them as they feel appreciated. They are

triggered to work harder to realize set objectives within the set timeline.

Conclusion

From the research done, the position of Tiffany and Co. has ben revealed to be as

discussed above. From the industry analysis, the key suppliers are players in the mining industry

and key buyers are wholesale industry, retail industry and consumer industry. The key market

drivers have been discovered to be marriages, prices of gold and silver, household earing and

consequently, per capita income. From the market trends analysis, the industry is expecting a

downfall due to unstable global economic field.

From customers analysis, it clear that the primary market for Tiffany & Co. who are

customer are in their youthful stage and gender wise, most of them are females. From the

perspective of class target, Tiffany & Co. target high and medium income earners for sales

revenue. From the competitive analysis, Tiffany & Co. faces stiff competition from other players

in the same industry. Hey compete on basis of accessories offered, pricing, distribution and the

target audience. These makes the industry so competitive because different players uses any of

these parameters as their generic competitive strategy. From the SWOT analysis, the company’s

big strength is established reputation and outstanding brand name. The biggest weakness as has

been revealed is poor online existence in comparison to other players. The biggest opportunity

for the company are emerging markets to consume discretional products while the major threat is

poorly performing political and economic fields.

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The major marketing objectives is to keep customers aware of refinement and redesign of

brands. From these analyses, it has been clear that the best marketing pan should feature a

marketing mix strategy. This strategy should be based on product marketing, pricing strategy,

place strategy, promotional strategy and service strategy.

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REFERENCES:

Shityko, G., Scherbakov, I., & Suruntovich, N. (2016). Jewelry house Tiffany & Co.

Cowley-Cunningham, M. B. (2016). How Marketing Communication Has Changed in the Digital Age: A

Case-Study of Tiffany & Co.'s' Iconic Marketing Formula'. QQI-Marketing Campaign Audit-

Diamond Industry-Digital Marketing Certification Programme DkIT (Permission to use Images

from Tiffany & Co, New York).

Serdyuk, A. V., & Votchenko, E. S. (2019). Econometric modeling techniques for boosting brand

competitiveness (based on jewelry industry). Экономика: вчера, сегодня, завтра, 9(7-1), 160-

169.

Lakshmanan, V. I., Ojaghi, A., & Gorain, B. (2019). The Economics of Gold and Silver. In Innovations and

Breakthroughs in the Gold and Silver Industries (pp. 157-173). Springer, Cham.

Pereira, B., Teah, K., Sung, B., & Teah, M. (2019). Building blocks of the luxury jewellery industry:

conversations with a CEO. Asia Pacific Journal of Marketing and Logistics.

ATAVUTIPAKORN, M. V. (2016). A STUDY OF YOUNG FEMALE’S ATTITUDE TOWARDS FINE

JEWELRY IN BANGKOK (Doctoral dissertation, THAMMASAT UNIVERSITY).

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Appendix:

Below figures compares the performance of Tiffany & Co in relation to industries average. The

figures act as a guideline on where the company is below or above industry average.

Company Industry

Price/Earnings (TTM) 27.89 15.57

Price/Book (MRQ) 4.66 0.49

Price/Cash Flow (MRFY) 19.00 7.41

Dividend Yield 1.81% 0.00%

Net Profit Margin (TTM) 12.23% 5.69%

Return on Equity (TTM) 17.39% 18.62%

Debt to Equity (MRQ) 0.57 43.31

MRQ = Most Recent Quarter

TTM = Trailing Twelve Months

MRFY = Most Recent Fiscal Year

Note: Company and S&P 500 ratios relating to share price calculated daily; all others calculated weekly or
in accordance with company earnings announcement. Industry medians calculated weekly.

Growth Rates

Company Industry SP500

This Year -21.35 -36.70 NA

Next Year 40.44 34.00 -5.35

Last 5 Years 3.20 -3.10 7.40

Next 5 Years 10.00 9.00

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Company Industry SP500