TIFFANY & CO. IN CHINA
Presented by Agata & Dan!
PRESENTATION OVERVIEW
Hello, and Thank You For Your Time
• • • • • • • • •
SWOT Analysis ! Target Audience Demo/Psycho ! Young & Restless consideration/overview ! SLEPT Considerations and Message Track ! PR Campaign Theme! Three objectives of the campaign ! Three marketing Strategies ! Three tactics for each strategy ! Bibliography !
TIFFANY & CO. – Company Overview
INTRODUCTION
Industry: Jewelers. Known for diamond jewelry.! Founded: September 18, 1837! Headquarters: New York, NY! Operations Worldwide ! Production Locations: New York, Rhode Island, and Kentucky ! Different company brands: Tiffany; Tiffany Blue Box; Tiffany Blue!
Products include:! • Solitaire Jewelry! • Engagement Jewelry! • Silver and Gold Jewelry! • Designer Jewelry! • Wedding bands! • Sterling silverware! • Crystal! • Stationary! • Fragrances! • Accessories!
- Tiffany & Co. expanded in growth markets throughout 2013, opening 28 new stores world wide with six of those being in China. !
!
!
!
Source: http://www.interbrand.com/en/best-global-brands/2013/Tiffany | http://www.mediapost.com/publications/article/220174/ogilvy-mather-worldwide-wins-tiffany-co-accou.html! MarketLine Company Profile Tiffany & Co. Reference Code: B1CB015C-C875-4B50-974A-4AF51070676E Published 31 Dec 2013. !
SWOT Analysis STRENGTHS ! ! • Well known Western Brand and brand color. The brand name is synonymous with quality and luxury ! • A modern and elegant line of jewelry that should attract Y&R audience! • Varied product offering that can appeal to all kinds of tastes and genders !
WEAKNESSES ! ! • New player in the Chinese market ! • Lack of communications tailored to the Chinese ! • White color in the brand could lead to misinterpretations! ! !
THREATS !
OPPORTUNITIES ! !
! • The demand for diamonds in China is growing and growing as is the custom ! • The Luxury market in China has had 32% CAGR between 2006-2011! • No current communications tailored to China means that there is an opportunity to create new impact through specific marketing!
• Counterfeit market in China ! • Competition from established jewelers such as The Diamond Trading Company ! • Supply chain and logistics while hopping through local Chinese legal hoops for product approval ! ! !
Opportunity - A Growing Love for Diamonds CAGR for diamonds in China has been 32% since 2005. !
China's bridegrooms may not be quite so convinced as their demanding brides, but the wives-to-be usually win in the end, conceded Yu Peidi, 27, a salesman in Shanghai, who proposed to his now-wife in 2011.! ! "Women are always getting together to compare, telling friends and colleagues that their husband has bought them such and such a diamond ring. Just talking about having a diamond seems to keep them happy," he said.!
Sources: MarketLine Company Profile Tiffany & Co. Reference Code: B1CB015C-C875-4B50-974A-4AF51070676E Published 31 Dec 2013. ! THE GLOBAL DIAMOND INDUSTRY Portrait of growth from AWDC and Bain & Company: http://www.bain.com/Images/ BAIN_REPORT_Global_diamond_industry_portrait_of_growth_.PDF!
The Weakness / Opportunity
A lack of tailored communications provides Tiffany’s with a chance to start fresh with more purpose
Target Audience - Demographics Adults ages 20-35! ! An Urban demographic who with high HHI living in Tier 1 cities! ! Trendsetters ! ! Up to date with fashion and western brand names ! !
Target Audience – Psychographics § Purchasers of ‘badge brands’ that show status! ! § More modern and aware of tends (since Tiffany’s is a new brand in the Chinese marketplace) ! ! § They use social media to keep up with friends and family! ! § They find time to shop! ! § Starting a new chapter in their lives with engagements & starting their own families !
With a focus on life stages and life events
• Promotions / Success at work" • Engagements " • Having a child" • Celebrating other major life achievements " • Bringing good face and happiness to their family " "
Target Audience – Travel
§ Our audience travels for business in addition to traveling for pleasure once a year. !
!
§ Because of this they have access to Tiffany’s stores in hotels and airports with spare time to shop and browse!
Target Audience – Young and Restless Considerations
!
!
!
-Traditional values VS. new expectations! -Migrant workers are struggling with branching off from traditions that were taught by their parents! -They want to excel in life! -Some go back home, others continue to work on their careers and ! start new lives in the big cities.!
Message Track and SLEPT Considerations Problem: There’s a heavy emphasis on ritual, traditions, and family in China, but the ritual of diamond engagement rings has only reached 50% penetration in China’s urban middle class. Additionally, while Tiffany’s has some brand recognition in China, it is a new player that hasn’t been in the market for very long. ! ! Solution: Encourage the modern Chinese middle class to embrace this new ritual by linking it to the tradition of family, and having good face while still being a forward thinking ‘modern’ Chinese person. !
Social Considerations - ! ! The family unit in China is paramount and almost every action taken ties back in to protecting your family, projecting your family’s status and bringing your family good face. ! ! Economic Considerations -! ! Urban Chinese Consumers have the money to spend on things if they believe that those purchases will lead to good face and success or the image of success. ! !
Call To Action:Tiffany’s is the brand of jewelry to invest in for urban Chinese consumers who want to acknowledge old traditions while embracing new ones leading to good face for you and your family. !
PR CAMPAIGN THEME
Embracing Family Traditions, old and new.
“True love has a beginning but it has no ending.� - tiffany.com
Our aim is to emphasize family and traditions as much as possible in our communications!
Brand Value Proposition For Tiffany’s & Co.
!
Reason to Believe ! ! Embracing established traditions while creating your own brings good face to your family !
Reason to Choose ! ! Platinum design is more modern, western and iconic ! Incredibly established brand internationally with ! New York City appeal and reputation !
Reasons to Consider! ! Elegant, Diamond Centric Design! High Quality / Ethically Sourced ! Well Known Western Brand !
Campaign Objectives • To increase Tiffany’s sales in China! • To establish Tiffany’s as the brand of jewelry in China that celebrates love and family traditions both old and new! • To increase the awareness of Tiffany’s in China as a desired brand to own ! • To establish Tiffany’s as the owner of platinum jewelry in China to where people will immediately associate platinum diamond bands to Tiffany’s. We’re going to embrace the Tiffany’s elegant and unique style since we believe it will resonate stronger with the up and coming middle class and the Y&R urban population in China. !
Campaign Strategies
• Outreach through tradition media channels including news, television and celebrity PR ! ! • Social media engagement and digital advertising/storytelling! ! • Traveling Pop-Up Store / Events / Concierge Service !
Campaign Tactics – Traditional Media and PR • Work with Fan Bingbing on advertising and event promotions ! • • • •
Hollywood Red Carpets! Featured women in Advertising (Paid) ! “If someone asked me to marry them, I would want a Tiffany’s ring. ! Ring on right hand and additional jewelry throughout her appearances !
• Public Relations! • Articles allowing press and media full access to Tiffany’s CEO for interviewing during trips to china ! • Tour of Tiffany’s popup stores ! • Fly specially chosen media people to New York to tour the Tiffany’s and Co. Headquarters and production facilities !
Advertising - Telling the story of wedding traditions across four generations with Tiffany’s • First generation man gives his wife to be an engagement ring which leads up to wedding bands, all from Tiffany’s ! • The engagement ring is passed onto their second generation son when he proposes to the woman he loves ! • The second son has a son and when he gets engaged his grandparents give him their wedding bands ! • When the third generation son’s daughter is born the mom and daughter get matching charm bracelets with the Chinese characters for Love and Protect on the baby’s bracelet. ! • When she succeeds on her exams and gets into a great university her father buys her a Tiffany’s necklace.! • She is wearing the necklace when she meets the man who she will eventually marry ! • When she falls in love her new fiancée proposes to her in the Tiffany’s show room and presents her with a new diamond ring ! • When they’re married her grandfather gives her the original wedding rings from her great-grandfathers original wedding.!
19!
Tiffany’s Pop-Up Store
!
• Concierge professional jewelry service that finds just the right piece that suits your personal style. Also allows for conversation and relationship building with potential customers ! • Travels through tier 1 and 2 cities with scheduling and promotions broadcasted through social media ! • Location based advertising through mobile so users in upcoming locations will receive specific ads and promotions via their phones in advance of the store arriving in their city !
Celebrating the Engagements as they happen
"(In China) we now have more and more young people making their declarations and proposal ceremonies within our bridal rooms," said Stephane Lafay, Tiffany's head of Asia Pacific and Japan, who said couples were attracted to the romantic image of the jeweler's well-known "little blue box".!
Campaign Tactics – Social Media • Tiffany’s & Co Mobile App! • Virtual Jewelry Try On with full catalog of product offerings ! • Tracker of where the pop up store is going next! • Countdown for when it’s coming to the city nearest you ! • Social media integration ! • Ad purchasing on Sina Weibo and RenRen. ! • Social media outreach on Weibo and RenRen (Facebook) ! • Request videos and pictures of loved ones presenting their significant others with Tiffany’s boxes. ! • Tiffany Stories created and told across social media platforms! • Tiffany’s on WeChat is the place to talk about diamonds and dreams with friends!
We want Tiffany’s to become a celebrator of engagements, weddings and other magical moments in the lives of our customers. Our aim is to achieve this through smart use of social media in China. !
"Women are always getting together to compare, telling friends and colleagues that their husband ! has bought them such and such a diamond ring. Just talking about having a diamond seems to ! keep them happy," he said.!
In closing
We believe by embracing traditions both old and new and becoming a celebrator of family and traditions. Tiffany’s will be more than just another player in the jewelry market. Tiffany’s will become an integral part of the stories and traditions of their customers families. !
THANK YOU
BIB PAGE • SWOT Analysis Sources ! • S1- Coach Presentation / Preference for internationally well-known brands is still rising. “Not just as a reaction against counterfeit goods, but also as a quality assurance, the Chinese consumer is buying more big-name international brands. frog’s survey of Chinese consumers found that 63.5% of participants prefer foreign brands.Numerous other sources have shown that this is apparent mostly in the luxury goods sector, but in major cities is manifested across other industries, such as ready-to-wear, nutrition, and household goods.” http://designmind.frogdesign.com/articles/building-brands-in-china.html#2! • S2 - (Tom Doctoroff, Billions, “Gold, no less expensive than diamonds, is suffering stagnant sales , largely because of it’s musty associations, (i.e. my father’s old Oldsmobile)” ! • S3: http://english.cri.cn/7146/2010/08/23/2001s590283.htm “Making Fashion Sense in China.” “"I have to say that ever since I came to China three years ago; Chinese people are more courageous when it comes to fashion. The best thing about Chinese people is they aren't afraid of trying, which is something that you see where in Europe where I'm from a lot."However, others say this fearlessness leads to some odd combinations in fabrics or patterns being lumped together in very strange ways with various color combinations or trips to the dumpling shop in flannel pajamas.”! • W1 - Haagen-Dazs is another case in point. While Chinese consumers are prepared to pay a premium to lick at the American ice-cream brand in public, they would most likely not buy a tub to eat in front of the television at home, he noted. For new entrants to the market, this means having to spend big on media to quickly position their brands in the minds of consumers. And as media costs are high in China, only those with big budgets should consider competing there. https://globalconnections.hsbc.com/singapore/en/articles/retail-china-challenge-brand-building-china! • W2 - http://www.tiffany.cn/! • W3 - http://provideocoalition.com/shullfish/story/psychology_of_color - White is associated with mourning in China. !
• O1 http://www.diamonds.net/News/NewsItem.aspx?ArticleID=46710&ArticleTitle=Analysts+View+Chinese+Demand+as+Strong+Opportunity+for+Tiffany ++ “Given the continuing urbanization/Westernization of the Chinese population, growing affluence, and low diamond penetration, we believe this market will remain ripe for growth over the long term.”! • O2 - Sources: MarketLine Company Profile Tiffany & Co. Reference Code: B1CB015C-C875-4B50-974A-4AF51070676E Published 31 Dec 2013. THE GLOBAL DIAMOND INDUSTRY Portrait of growth from AWDC and Bain & Company: http://www.bain.com/Images BAIN_REPORT_Global_diamond_industry_portrait_of_growth_.PDF ! • O3 - http://www.tiffany.cn/
! • T1 - http://luxurysociety.com/articles/2014/01/4-challenges-facing-foreign-luxury-brands-in-china From counterfeits to trademark trolls, intellectual property violations are a huge problem for luxury companies whose success relies on brand perception. When it comes to fakes, the bigger the brand, the more there are, and too many counterfeits can dilute its image.! • T2 - ! • T3 -!
Additional Sources
•
On Confucius - http://www.confucius-1.com/teachings/!
•
“Confucius's teachings strongly emphasized the importance of following ritual. He said: "Look at nothing in defiance of ritual, listen to nothing in defiance of ritual, speak of nothing in defiance or ritual, never stir hand or foot in defiance of ritual." (Analects 12.1)”!
•
http://www.sacred-texts.com/cfu/eoc/eoc09.htm!
•
"It is said in the Book of Poetry: 'A happy union with wife and children is like the music of lutes and harps! When there is concord among brethren, the harmony is delightful and enduring. Thus may you regulate your family and enjoy the delights of wife and children!' The Master said, 'In such a condition parents find perfect contentment.'" (Doctrine of the Mean, C. xv., v. 2, 3.)!
!
• Sources: MarketLine Company Profile Tiffany & Co. Reference Code: B1CB015C-C875-4B50-974A-4AF51070676E Published 31 Dec 2013. ! THE GLOBAL DIAMOND INDUSTRY Portrait of growth from AWDC and Bain & Company: http://www.bain.com/Images/BAIN_REPORT_Global_diamond_industry_portrait_of_growth_.PDF! • Article about diamonds and engagement rings in China with some quotes from Tiffany’s. http://www.reuters.com/article/2013/09/16/us-china-diamonds-idUSBRE98F0YU20130916 “ Stephane Lafay, Tiffany's head of Asia Pacific and Japan, who said couples were attracted to the romantic image of the jeweler's well-known "little blue box”.! • PolicyMic article detailing the origins of Diamond Marketing and DeBeers company messaging http://www.policymic.com/articles/51981/how-a-clear-worthless-stone-with-a-brilliant-marketing-campaign-conquered-the-world! • Average age of urban marriages is 27 - www.chinadaily.com/cn/2012-02/27/content_14704461.htm! • CEO Interview availability as a great idea for building relationships and media buzz - (Source: Sara Granack, Grainger)! (By 2022 20% of china’s middle class will make up 75% of the urban consumer (luxury) population. (Liza Lin, Bloomberg Online))! Source: http://www.interbrand.com/en/best-global-brands/2013/Tiffany | http://www.mediapost.com/publications/article/220174/ogilvy-mather-worldwide-wins-tiffany-co-accou.html! MarketLine Company Profile Tiffany & Co. Reference Code: B1CB015C-C875-4B50-974A-4AF51070676E Published 31 Dec 2013. !
Rubric • Apply ideas & Concepts to develop the THEME! • Present a Logical Message Track! • TIE message track to essence of brand; include 5Ws! • Media outreach given Chinese SLEPT Characteristics! • Objectives made sense! • Strategies aligned with objectives! • Tactics were do-able! • Answer the Golden Qs using data analysis, reasoning & critical thinking! • Identify all SWOTs! • Support Determination with data/info from research! • Biblio was thorough; evidence of abundance of sources; accurate citation style. ! • List 5 varied sources in addition to HBR, YT & Billions ! • Eliminate Errors including typos, punctuation, spelling, and grammar. ! • Evidence solid production values in its presentation! • Appear to know its stuff! • Demonstrate teamwork! • Present for 15-18 minutes ! 28!
Confucianism • Teamwork and team spirit! • Sense of unity, sharing, brotherhood and relationship! • respect others, especially elders! • invest in lifelong personal networks! • Accumulate wealth and contribution to society! • Leisure is not a priority ! • Character Integrity and justice! • Leads with example and integrity! • Self discipline, self reliance, self sufficient and hard working ! • Self Assertion is not encouraged.!
29!