May 6, 2013 Celenia Arroyo, Brandon Dye, Alyssa Orozco, Lareka Reed & Kassandra Vitogiannis
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Table of Contents
Executive Summary
Page 3
Background
Page 4
Tiffany & Co. Timeline
Page 5
Situational Analysis Summary
Page 6
Primary Research
Page 7
Survey Research Objectives
Page 7-8
Sampling Plan
Page 8
Survey Data Collection Methodology
Page 8-9
Final Sample Conclusion of Results
Page 9 Page 10-11
Management Recommendations
Page 12
Appendix
Page
14-21
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Executive Summary
The purpose of this research is to see how college aged student view Tiffany & Co. and jewelry in general. We have ask questions on how often they purchase and wear jewelry. The group want to see how many of the respondents have purchased from Tiffany & Co. and what their thoughts on the products and the service were. In addition, the team also wanted to know how many of the respondents will be willing to become a future Tiffany’s customer. We conducted an online survey through Survey Monkey and cross tabulated the results.
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Background Information
Tiffany & Co. has a strong brand identity that gives consumers the luxury brand perception of Tiffany’s products. Tiffany & Co is known for their extraordinary design in the products, the impeccable craftsmanship of their jewelry, and the professional customer service that customers experience. They adhere to a social and economical responsibility when obtaining metals and crafting their jewelry. (tiffany.com) Tiffany & Co. has brand recognition and also has brand loyalty. Even with these strengths they lack in advertisements and promotions for their products. TIffany & Co. has a great opportunity to reach new markets and increase product awareness, especially in the college age demographic. Their threats in obtaining this market is the economic state and the price of their products.
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Situational Analysis Summary
● Two of Tiffany’s top competitors are Blue Nile Inc. and Zale Corporation. Primary advertising is done through the newspaper and magazine ads and also digital media advertisements. ● In 2011, Tiffany’s spent $234,050,000 on worldwide advertising. Zales, one of Tiffany’s biggest competitors, stays competitive by the the visual marketing and the use of media outlets in print advertising as shown previously. ● As with Tiffany, promotional and marketing strategy are shown with in store displays, sponsorship airplanes customer experience, print, and the symbol of the blue box. ● The Zales brand capitalize on television and print advertising. This most common form of marketing allows them to highlight their strengths and their brand identity of fine jewelry and competitive price. ● As the other fine jewelry competitors have a very similar strategy to Tiffany’s, Zales is one of the only brands to utilize media advertisements, such as television, and even price promotions. ● Zales offers coupons, price rollbacks and price matching. Sterling Jewelers have a similar strategy when it comes to companies like Kay Jewelers and Jared. They focus on television advertisements that highlights their fine jewelry while offering their promotions. On companies websites for Zales and Sterling, their homepage consists of seasonal discounts for jewelry that can be given for the holidays or any special occasion.
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Primary Research Information The type of research our group conducted involved focus groups and survey research. The first research conducted was the focus group. The focus group was done with a small group of college students, answering questions about jewelry and then specifically Tiffany jewelry. The advantage of focus groups are that they are fast and easy to conduct. Focus groups also gain insights by observations. Moderators are able to measure non-verbal communication such as body language, social interactions, tone of voice, and facial expressions. Our objectives for the focus group was to gain insight on college student’s purchasing behavior of buying jewelry and their view of Tiffany. Below are the conclusions from the focus group. Attached at the end of the report is a copy of the moderator’s guide. ●
Majority of the panelist wear and purchase jewelry for themselves while one out of ten did not wear jewelry. They all would rather shop in store and the experience is important when buying jewelry.
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The females on the panelist wear earrings and rings. Their jewelry does not have any meaning, but their purpose is to be trendy.
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If they do purchase jewelry for others, it is during the holidays and special occasions such as birthdays, Valentine’s Day, and Mother’s Day.
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The panelist were familiar with the brand Tiffany, especially their engagement rings. They associate the brand as expensive, high class, bling, the image of the little blue box, and the high quality of their products.
Survey Research Objectives The second type of research method that was conducted was an online survey. After the focus groups, our team focused on the objectives listed below to measure our findings from our survey. 1. How do college age students view the brand name Tiffany? 2. Do college age students aspire to purchase Tiffany’s jewelry? 3. Is the brand name important enough to consumers to pay more for Tiffany’s 7
products? 4. Would college age students rather shop online or in store? 5. How important is the in store experience? 6. How often do college students purchase jewelry?
Sampling Plan Our goal for total respondents is 100 people that qualify for the survey. By achieving this goal, our group of five decided to split up the work by each member contacting at least 20 people that will take the survey. The respondents of the survey will qualify if they wear and purchase jewelry. Since every respondent may not qualify for our survey, every group member plans to reach an extra 5-10 people for a total of 25-30 people in total. This way, we can look at about 125 surveys and have a better chance of reaching our goal of 100 qualifiers. In order to select people for the sampling frame our group will conduct all the surveys online by using Survey Monkey. The survey was available on Survey Monkey on April 10, 2013 and results were analyzed on April 26, 2013. The reason for using this website is to use the convenience method for non-probability sampling. Convenience method is used best since this is a class project and there is little time and no money being spent to get our research. Some limitations by using this method is getting enough qualifiers when using our social network.
Survey Data Collection Methodology The survey method used was an online self-administered survey using Survey Monkey. The survey questionnaires were distributed online by using our social network. For our study, our goal was 100 completed surveys in which the respondents are qualified and have finished the questionnaire. Our team chose this because of the convenience in this classroom project. An online survey allows us to collect larger amounts of data in a short period of time. We did 8
not have the resources such as time and money for this project. Survey Monkey allows us to analyze the quantitative data and compare different questions. The advantages for using this method is the convenience of distributing the survey out to our social network online by using social media, email, or text. The disadvantages of this non probability survey is that a portion of the respondents will not be qualified. Also because this is self-administered, the survey will available to our social network, but they determine whether or not to complete the survey. The respondents or non-respondents may look at the topic to determine if they are interested to take the survey.
Final Sample The demographic of our survey takers consisted of lower income individuals. These men and women thought of Tiffany & Co very highly. By looking at the graph below, one can see that the majority of our survey takers were in the 19-22 year old age bracket.
Conclusion of Results The final number of completed interviews our team had conducted was
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eighty-seven. The team had conducted over one hundred surveys before the numbers were narrowed down to qualified respondents who completed our survey. Our team looked into the relation between gender and purchasing for self or other, gender and what people were inclined to buy, income and what people have purchased and finally, purchase history and future buying thoughts. A very important factor in the jewelry industry is how often people are buying. The majority of the surveyors purchase fine jewelry every several months; this is very exciting for us to hear! In addition, another surprising outcome was the reaction to the preference of shopping online and in stores. 72.41% of our respondents preferred to shop in store than online. With the rise of online shopping generally, this is interesting. The in store experience is very important to our Tiffany & Co shoppers. 56 out of 87 respondents rated the importance of the in store experience as a four or five on a five point scale. With this information, Tiffany & Co should spend more time focusing on reaching their customers in person rather than their website. Customer’s service plays an important role in consumer’s behavior, and Tiffany should gear customers into their store. The numbers make it clear that purchasing jewelry several times a year is part of the norm. (Graph provided below) About sixty five percent of our surveyors feel it is necessary to add a new piece of fine jewelry to one’s collection.
About seventy five percent of our qualified surveyors, enjoy the in store experience.
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They would not have it any other way. Along with our brand comes meaning, and that is what the audience of Tiffany feels. About sixty percent of our survey takers have meaning behind every piece of jewelry. How sentimental! When asked about the meaning behind the Tiffany Blue Box, forty percent of consumers responded that the first word that came to mind was ‘expensive.’ Finally, the Tiffany audience is familiar with and shops for rings. From this information, we can take that jewelry products and engagement rings are highly talked about and advertised, and that is something we can work on.
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Management Recommendations Tiffany & Co. has experienced a drastic increase in sales, net profits, and great returns on investments to stockholders within the past year. These numbers had not been seen since before the hit of the recession. As the economy positively over turns and the help of Tiffany’s new marketing campaigns, Tiffany has again become a top competitor of the less expensive (discounted) options such as Zale’s, Jared, and Sterling Jewelers. The very distinct brand recognition that Tiffany has built has allowed the company great space and options for marketing and advertising, however in the coming years, Tiffany will need to launch a new research campaign for the new generation of millennial in order to answer three major questions that will become a concern for the future of the company. 1) How will technology and cyberspace positively and negatively affect future sales? 2) Are millennials aware of the brand as past generations? 3) Which promotional outlet(s) should receive the most marketing and advertising dollars, and how will this affect the Tiffany brand? Companies are increasingly moving into larger internet marketing campaigns from the more traditional avenues such as radio, print and television smartly following the market, and Tiffany should follow suit. Tiffany should invest in new digital media strategies for the future in an effort to stay competitive. Our group’s suggestion for global expansion was met with a new flagship store in Paris. Where this is a great start, a store in other great fashion forward cities such as, Tokyo, Milan, and London could prove to be quite rewarding. Tiffany has always been known to create timeless pieces of precious and delicate jewelry, but a new line of ever changing trends for the younger markets could increase sales and generate a new market of buyers by selling less expensive pieces inspired by seasonal or yearly fashion trends. This idea does not have to be found in all Tiffany stores but in the lowering grossing stores that could use new sales
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boosting ideas. Tiffany has the potential to continue to be a leader in the fine jewelry industry as long as the company stays current, socially responsible, and aware of market changes.
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Appendix SWOT Analysis Strengths -Brand loyalty -Quality products
Weaknesses -Expensive Pricing -Lack of media advertising
-Brand recognition -No sales promotion -Domestically made -Limited stores -Innovators -Environmentally friendly
Opportunities -International expansion
Threats -Economic state
-New product lines
-Price competition
-New markets
-Counterfeits
-Increase product awareness
-Raw materials cost
-Celebrity endorsements
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Moderator’s Guide
I. Welcome A. Welcome! Thank you for so much for taking the time to attend and participating in our focus group. We hope to gain valuable information from you all today.
II. General Question A. Do you wear jewelry? B. What type of jewelry do you wear?
III. Category Questions A. Have you purchased jewelry for yourself or someone else? a. Describe the occasion, did the jewelry have any meaning behind it? B. Which jewelry stores have you visited? C. Which jewelry stores would you describe high end and why? D. Where do you shop for your jewelry? E. What are your favorite high-end jewelry brands?
IV. Product Questions A. Have you been to a Tiffany’s jewelry store? B. What do you know about Tiffany? C. What is the first word that comes to mind when you hear Tiffany jewelry? D. “Tiffany & Co. aspires to have traceability of all materials used in our products to ensure they meet our environmental and social standards.”
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a. Knowing Tiffany has strong business ethics and sourcing, would that make up for the price of their products? F. Would you purchase Tiffany’s jewelry in the future? G. Would you rather buy Tiffany’s online or in store?
V. Meeting Unnecessary needs A. Would you rather have a Tiffany’s ring or a larger diamond ring at a low price from a different brand? B. Are you familiar with the “Blue Box?” C. Would you buy or want a TIffany’s ring to receive the ‘little blue box’ or because of the brand name?
VI. Conclusion A. Thank you for participating in our focus group today and giving us your thoughts about the product.
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Questionnaire
1. How often do you purchase jewelry? 1-2 Times a Week
Monthly
Every 2-4 Months
Semiannually Annually
2. Do you purchase jewelry for yourself or others? Yourself
Others
Both
Neither
3. Where do you mostly purchase your jewelry? Tiffany & Co.
Zales
Kay Jewelers
Forever 21
Other (please specify)___________
4. Are you more inclined to shop online or in store? Online
In Store
5. On a scale from 1-5, how important is the in store experience? Not Important
1
2
3
4
5
Very Important
6. How many times a week do you wear jewelry? 0
1-2 times a week
3-4 times a week
5-6 times a week
7 times a week
7. How much do you spend in jewelry? $0
$1-50
$51-100
$101-150
$151+
8. Does your jewelry have any meaning behind it?
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Yes
No
9. What word in your opinion, best describes the Tiffany blue box? Prestige/Opulence
Expensive
Quality
Love
Other (please specify)_________
10. What product are you more inclined to buy from a Tiffany store? Rings or other jewelry products
Decorative pieces
Eyewear
Silverware
Other (please specify) ____________
11. Have you purchased anything from Tiffany? Yes (skip to question 14)
No
12. Why have you not purchased from Tiffany? Too Expensive
Not Enough Options Window Shopping
Social Responsibility Reasons
Not Interested
Other (please specify) __________
13. On a scale from 1-5, how likely would you consider purchasing jewelry from Tiffany? Will Not Consider
1
2
3
4
5
Will Definitely Purchase in Future
14. What did you purchase from the Tiffany store? Rings or other jewelry products Silverware
Decorative Pieces
Eyewear
Other_________
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15. How satisfied were you in your in store experience? Very Satisfied Satisfied
Neutral
Dissatisfied
Very Dissatisfied
16. How satisfied were you with your purchase? Very Satisfied Satisfied
Neutral
Dissatisfied
Very Dissatisfied
Did Not Buy Anything from Tiffany
17. What is your age? 18 or under
19-22
23-30
31 or over
18. Are you male or female? Male Female
19. What is your annual income? $0
$1-1000
$1001-$10,000
$10,001-$20,000
$20,001+
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Sampling Plan How our group chose the sample was based on between the ages of 19-30. The respondents of the survey will qualify if they wear and purchase jewelry. Our goal for our total respondents is 100 people that qualify in the survey. By achieving this goal, our group of five decided to split up the work by each member contacting at least 20 people that will take the survey. Since every respondent may not qualify for our survey, every group member plans to reach an extra 5-10 people for a total of 25-30 people in total. This way, we can look at about 125 surveys and have a better chance of reaching our goal of 100 qualifiers. In order to select people for the sampling frame, the respondents must qualify by wearing jewelry, purchasing jewelry, and between the ages of 19-30 years old. Our group will conduct all the surveys online by using Survey Monkey. The survey was available on Survey Monkey on April 10, 2013 and results were analyzed on April 22, 2013. The reason for using this location is to use the convenience method for non-probability sampling. Convenience method is used best since this is a class project and their is no time or money being spent to get our research. Some limitations by using this method is getting enough qualifiers by using our social network. Our survey is an online self-administered survey using Survey Monkey. The survey questionnaires will be distributed online by using our social network. For our study, our goal is 100 completed surveys in which the respondents are qualified and that have finished the questionnaire. Our team chose this because of the convenience in this classroom project. An online survey allows us to collect larger amounts of data in little time because of its convenience. We do not have the resources such as time and money for this project. The advantages for using this method is the convenience of distributing the survey out to our
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social network online by using social media, email, or text. Some disadvantages are that because this is a non probability survey, we know that all the respondents will not be qualified. Also because this is self-administered, the survey will available to our social network, but they determine whether or not to complete the survey. Another disadvantage is that respondents or non-respondents may look at the topic to determine if they are interested.
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