Emma Haberl Professor Don Levy Winter 2020
Senior Capstone
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Abstract Retail is changing so much and brands that previously could get away without being lifestyle brands are suddenly being forced to find new ways to innovate. Tiffany and Co is not above this. This brand has a lot of prestige but is struggling to connect with a Gen Z and Millennial audience. Blue Box Bridal, a wedding planning service offered by Tiffany and Co. is the perfect way to connect this long loved brand with the Gen Z and Millennial target audience they crave. This capstone focuses on brand history and assessment of Tiffany and Co. and the strategy and implementation of Blue Box Bridal to Tiffany’s. In the strategy and implementation interior mock ups, media buys, an app and a book of services has been created to introduce a concise vision in to this well established luxury jeweler.
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Table of Contents 02 05 06 04 Abstract
Introduction
Description of the Problem
Company Overview
17 18 21 27 Blue Box Bridal Introduction
Description of the Project
Market Research
Blue Box Bridal Brand Overview
33 41 49 57 Launch Logistics
Space Renderings
Marketing Plan
Conclusion
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Introduction Something old, something new, something borrowed, and something Tiffany blue. When we think of a bride we think of opulence, white dresses and magical moments but we also think of rings. And when we think of rings, the pinnacle in jewelry design is Tiffany and Co. Currently, the furthest reach that Tiffany and Co has on that special day is in jewelry. While older generations resonate heavily with the brand, Millennial and Gen Z are familiar but not heavily shopping Tiffany’s as they are becoming hyperfocued on lifestyle brands. Imagine what weddings could be if one could quite literally be a Tiffany Bride? I would like to introduce to you Blue Box Bridal, a Wedding Package service by Tiffany and Co that allows brides to have all of the aspects of planning a wedding meticulously performed by a talented team at Tiffany’s. With Tiffany’s being recently purchased by LVMH, and with the 5th Avenue flagship store revamp underway, this is the perfect time to introduce a new lifestyle segment to Tiffany’s. It would be a wedding planning service like no other, with a princess treatment that is less Disney, and more Kate Middleton.
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Description of the Problem We know that currently, the furthest reach that Tiffany and Co has on that special day is in jewelry. But brand association with the company has the potential to go so much further than with just wedding rings and bands. Tiffany’s has the power to make a connection with customers that goes even further than buying the rings. Simplicity in wedding planning is becoming increasingly sought after, especially with Millennial and Gen Z, who do not want to spend a lot of time planning their weddings. These groups crave lifestyle brands and interesting brand experiences, which Blue Box Bridal would provide.
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About Tiffany and Co. A luxury jewelry and specialty retainer headquartered in New York City. It was founded in 1837 by Charles Lewis Tiffany but became famous in the 20th century for its sterling silver jewelry and diamonds. They are known for their iconic ‘Tiffany Blue’ boxes. Tiffany and Co. was recently purchased by LVMH for 16 billion dollars.
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Tiffany’s mission statement is... “To be the worlds most respected and successful designer, manufacturer, and retailer of the finest jewelry.” Charles Tiffany was the first jeweler to establish the diamond ring as a symbol of love. Romance is deeply rooted in the ideals of the company.
Mission Statement
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Brand History
2001
2000
1940
1878
Tiffany engagement setting is created. The diamond now appears to float on the band.
1961
Americans can buy diamonds in the US for the first time.
Tiffany flagship opens on 57th and Fifth Ave.
1886
1848
1837
First store opens in NYC and makes $4.98 on their first day.
Charles Lewis Tiffany purchases the Tiffany diamond, still on display at the flagship store receiving 300 visitors a day.
The Tiffany and Co. Foundation is established solidifying Tiffany’s commitment to conservation, sustainability, and the arts.
Breakfast at Tiffany’s debuts, an instant Hollywood classic. It was the first movie filmed at Tiffany’s.
“1837 Blue” in honor of the Tiffany Blue hue was created by Pantone.
2017
Current Events 2018 Released the first new engagement ring in a decade, Tiffany True.
2020 Tiffany’s began a 1.5 year renovation on the NYC flagship location.
Launched a luxury home and accessories collection. Blue Box Cafe opens at the Fifth Ave Flagship. Launched a fragrance collection.
2019 LVMH acquires Tiffany and Co. for 16.2 billion.
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Tiffany is the premiere luxury jeweler in the world by providing a physical and creative value to a trusted brand Iconic blue box sparks emotional connections with customers creating a strong favorable and unique association. Tiffany’s rejects 99.96% of the worlds diamonds, so when you get a Tiffany’s diamond, you are getting the best in the world.
Brand Positioning
Perceptual Map
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High Cost
Low Visibility
High Visibility
Low Cost
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Size Of the Business Net sales in 2018 totaled $4.44 billion USD. In the first half of 2019, Tiffany’s global sales dropped 3%. With LVMH purchasing the brand, it is expected to grow in the Asian and European markets.
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Channel of Distribution There are 321 Tiffany and Co. stores globally. There are 93 stores in the United States with the most successful being the New York flagship store. 6% of Tiffany’s sales are done online. On Instagram, Facebook, Pinterest, and Twitter the brand has acquired an engagement of over 20 million likes and follows.
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Pricing Strategy The pricing strategy that Tiffany uses is premium pricing. Tiffany has been pricing their products since the very beginning, a process that was not done by any other business in 1837. By putting a price on their goods instead of allowing bartering, Tiffany’s asserted the quality of their goods. In order to compete with some rival brands, Tiffany has launched some reasonably priced products and adopted affordable pricing for them.
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Weaknesses Strengths Rich History Customers have positive brand association Exquisite designs Association with the rich and famous High product quality
Expensive Inability to create beyond traditional designs Lack of appeal for millennial audiences Seasonality- 30-35% of sales are done in January/Feb
Threats Opportunities Growth in Asia Growth with Millennial and Gen Z Line extensions- like lifestyle additions and new product lines Smaller format stores to appeal to a broader audience
Competition from brands like Bvlgari, Cartier and Blue Nile Online retailers are taking over the market Slow economic growth in the US Overly aggressive expansion can push away old customers
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Competitor Analysis Brand Key Offerings Target Audience Distribution Channels
Diamond rings, Diamond rings, Diamond rings and sterling silver jewelry, sterling silver jewelry, sterling silver jewelry housewares, mens, and purses, and watches dining experiences.
Diamond rings, sterling silver and gold bracelets, watches, necklaces,
Men and women; gift buyers for special occasions
Women interested in high quality and high design
Mostly men, jewelry connoisseurs,
Men and women; focusing on a younger audience
321 stores, online retailing, selling on Net-a-Porter
300 stores, online retailing
No brick-and-mortar, online retailing only
Over 200 stores, online retailing
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WEDDING PACKAGE SERVICE FOR TIFFANY & CO., NEW YORK CITY
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Description of the Project The project that I created was a brand development project in the form of a wedding planning service for Tiffany and Co. Some deliverables for the project include: a Blue Box Bridal app mock up, book of services for the Blue Box Bridal boutique, motion media content for the Tiffany and Co. Instagram, social media strategy for the release of the service, and interior mock ups of both wedding spaces and the boutique in the 5th Ave flagship. In order to complete this project I did both primary and secondary research. Primary research was done in the form of polling via survey and secondary research was completed by researching Gen Z and Millennial interests in weddings as well as the Tiffany and Co. brand. From this research I was able to form some opinions on what this demographic is looking for in a wedding planning service, and cater this Tiffany’s brand development project to match my findings.
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Description of the Project Some of the strengths of this project are the brand values that support the message of Blue Box Bridal well. Tiffany’s is a storyteller for love stories, so weddings make sense for a company so deeply rooted in the idea of showy displays of love. Success in this service offering would to be fully booked or mostly booked up for the service. Ideally, a wedding would take place for Blue Box Bridal biweekly. The first year would roll out with 25 spots for weddings, and if the service is sucessful, the team has the potential to grow to accomidate more. Prestige and sparcity do play a role in all luxury brands, so it cannot be too attainable.
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Resource Review I did my research for this project using various wedding reporting websites, trend journals, and blogs about weddings. I was able to gather a lot of materials and first hand accounts on wedding planning and the struggles of those who are planning a wedding. I also conducted my own primary research through a poll on Instagram. I was able to get 237 responses on my poll to gather data and research. I conducted further research by speaking with some poll respondents.
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Market Research Millennials are planning their weddings really early. They think about them years in advance. . They are using their mobile devices for wedding planning in the form of apps like Pinterest. The average cost of a wedding in the US is $29,000, and that number is expected to rise as weddings become events that span larger than just the ceremony and reception. Customization has become very important to couples during both the ceremony and reception. Traditions are less important to this group.
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Market Research Millennials and Gen Z care about: Dressing up Dancing Traveling to a new place Decor at weddings Good food Brides dress and entrance Vows The look on the grooms face Bridesmaids dress Ceremony venue
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Things Millennials and Gen Z don’t care about: Escort cards Extra amenities Favors Bouquet toss Grand exit Flowers Table settings Dessert (they just want one cake)
Market Research
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Market Research Questions
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Market Research
My sample group of 237 Millennial and Gen Z individuals said that 71% of them plan on getting married. Only 17% of them said they did not plan to marry. The most popular ages to get married were 26, 27, 28 and 30. That tells me I need to be targeting 23-30 year olds with this service. By going a little lower than the desired age to wed, we can create an association between the Tiffany’s brand and those who will soon get married. Millennial and Gen Z use apps like Instagram and Pinterest when they are looking for wedding inspiration, so placing advertisements on Instagram and Pinterest would be appropriate.
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Of the respondents sampled, 34% of them said that they would like to use a service to plan their wedding.
Market Research The wedding packages should mostly appeal to people who are looking for all different size weddings.
Out of everyone polled, only 15 people or 7% were not familiar with Tiffany and Co.* *More poll results can be viewed on the supporting Excel document
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Blue Box Bridal Brand Overview
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Brand Positioning
Blue Box Bridal would be a leader in the experience wedding service industry. Provide a prestige experience associated with the Tiffany’s brand in a way that has never been done before. The brand will position itself as more luxurious than a wedding like a Disney wedding, but at the same time, it will be more attainable than some other wedding experiences.
Perceptual Map
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High Cost
Low Prestige
High Prestige
Low Cost
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Pricing Strategy The pricing strategy that Blue Box Bridal will use is premium pricing. Tiffany’s has long been known for using premium pricing, because their products are the best of the best. We know a Tiffany product is going to be top notch, in fact their diamonds are the top .04% of all diamonds in the world. Therefore, the wedding experience should not be decreased either. There will be discounts provided to those who have purchased their rings/and or bands from Tiffany and Co.
S WO T
Strengths
Weaknesses
Opportunities
Threats
Good understanding on target audience Tiffany’s is an established brand with a wide audience already The brand is already known for prestige in engagements, so it will be an easy transition to weddings
New York already has a lot of wedding planner options It is a lesser established service than others in NYC Wide range of services may decrease the quality level because of control Potentially could be seen by older generations as a brand devaluing
Can move to additional cities like L.A., Chicago, Denver, Austin, etc. Can expand into other wedding related services like Bridal gowns Can expand into other wedding aspects like proposal event planning.
Other brands that are interested in starting a wedding planning service Gen Z, which eventually will be the group having weddings, but they have just entered that age group therefore it is untapped.
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Competitor Analysis Brand Key Offerings Strengths Weaknesses
Full wedding package and planning service with a focus on the prestige and name of Tiffany’s.
Wedding package service at any Disney location (Disney World, Disneyland, Disney cruise)
Wedding planning services with a four person team in a custom setting based in NYC
Wedding package service that has both broad and small planning options
Good understanding Variety of destinations, Mrs. Taylor is a The option to have on target audience Disney’s positive respected and well them plan every and Tiffany’s is an brand image, well known planner and has aspect of the wedding established brand with respected for over 30 the means to get things or just sit for one a wide audience years done in NYC. session of advice. Not long established and could become confusing to existing customers of Tiffany’s brand.
Confusing online presence. Hard to navigate site.
Not a household name compared to other wedding planning services.
Potential customers have to call to get prices and service options. Many will not.
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Launch Logistics
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Service Price Range
The prices for the Blue Box Bridal service are broken down on the app and in the book of services shown in the boutique. Since it is subject to guest number and location as well as many other factors, the cost of a Blue Box Bridal wedding is subject to change with every single couple. Based off of numbers provided, the cheapest a wedding service based off of the average number of wedding guests in NYC, 139 people, would be $93,820 (that includes a 6.5% tax and 25% gratuity charge.)
Costing Markup Calculations
There is a 25% labor and gratuity charge on every service. Part of this goes to paying on-site staff and servers, but much of it is charges for the Blue Box Bridal team. There is also a slight markup on all services, which contributes to the booking.
Time and Action Calendar Research Service Development Competitor Analysis Store Renovations Production of Promotional Materials App Build Motion Media Logo Creation Staged Photoshoot for Promo Materials Photos of Atelier for App Flagship Store Reopening Introduction on Instagram Launch of Service In Store Instagram Announcement of Opening
JANUARY
FEBRUARY
MARCH
Time and Action Calendar APRIL MAY JUNE
JULY
AUGUST
SEPTEMBER OCTOBER
NOVEMBER DECEMBER
Oct. 1st Oct. 1st Oct. 15th Oct. 15th
The launch of this service will coordinate with the reopening of the Tiffany and Co. flagship location, scheduled to open 2021 in Q4. Assuming they would want to open it before holiday season, I listed the reopening as Oct. 1st. On Instagram, the brand will announce on Oct 1st the introduction of the Blue Box Bridal service. On Oct 15th, they will schedule press releases and officially launch the service and open the atelier in stores.
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Target Client Blue Box Bridal will be targeting 2330 year old Milennial and Gen Z men and women. It is someone who can afford Tiffany’s jewlery, and appreciate elegant style and use platforms like Instagram and Pinterest. They have a busy lifestyle. Another target client would be the parents of the engaged couple. Most likely, they will be paying for the wedding so targeting them through media channels in instore events will be critical.
Customer Profile Demographics Name: Jessica Mayfield Age: 27 Location: Midtown Manhattan, New York Occupation: Medical Information Director at Genomics Salary: 102k Psychographics Jessica and her fiancĂŠe Finneas got engaged last spring Interests: In her little free time, Jessica enjoys watching Netflix, going out to eat, and taking weekend trips Identifiers: She has an assistant screening calls, hates how stuffy her work environment is, and loves her Pinterest boards. She is a good saver and is a moderate Democrat. She loves walking her furbaby around Midtown and her favorite bar is Valerie. When she was in college she was a model, where she got a knack for the fashion industry.
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Customer Profile Demographics Name: Andrew and Jamie Duham Age: 64 and 61 Location: DUMBO Brooklyn, New York Occupation: Retired Salary: 280k combined Psychographics Andrew and Jamie Duham are the parents of Alyssa Duham who is engaged to her fiancée Allen. Alyssa’s parents are paying for the wedding, and they are long term customers of the Tiffany’s brand. Andrew and Jamie’s rings are Tiffany’s. They wanted to celebrate their daughters special day with Tiffany’s. Identifiers: They enjoy weekends away in the Tristate area, love their dog Toto, and have 3 other kids all with careers. They vote Republican and worked for the last 40 years before retiring. After all of their children are married, they plan on moving to Charleston, SC.
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Budget At Launch Development Production
Promotion
Employees Total
Budget for Blue Box Bridal Launch Quantity
Cost Per
Total
Service Designers
3 $ 70,000.00
$
210,000.00
App Development Atelier Redesign Mac Computers
1 $ 100,000.00 $ 400.00 5 $ 4,200.00
$ $ $
100,000.00 102,200.00 21,000.00
$ 5,000.00 $ 35,000.00 $ 3,000.00 $ 0.75 $ 3.00 $ 5,000.00
$ $ $ $ $ $
5,000.00 35,000.00 3,000.00 85,500.00 9,300.00 5,000.00
$ 80,000.00
$ $
240,000.00 816,000.00
188 sq ft
Motion Media Content Creation 1 Stagged Wedding Photoshoot 1 Photographer 1 Promotion on Instagram 114000 people reached Promotion on Pinterest 3100 impressions Physical Promotional Materials 1 Book for Ateiler Trifold Flyers for Engagement Ring Purchasers Materials for Interested Couples 3
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Blue Box Bridal Boutique Space The Blue Box Bridal Boutique will be located on the fourth floor of the flagship Tiffany and Co. store on 5th Ave in New York City. The boutique space will have couches and a desk for planning with the couples and family/friends. It is important to have a physical space for Blue Box Bridal, because the prestige of the brand depends on one on one interaction with clients. You can book appointments for the boutique through a form on the Blue Box Bridal app or at the 5th Avenue location.
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Space Renderings
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Interior of Blue Box Bridal Boutique
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Examples of a Blue Box Bridal Wedding Space
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Blue Box Bridal Wedding Space
A wedding ceremony space
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While clients would have full control over the set up, this is just one example of what a Blue Box Bridal wedding ceremony outdoors at one of the two chateau’s could look like.
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Marketing Plan
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Marketing Objective The marketing focus for Blue Box Bridal is going to be on two major social media platforms, Instagram and Pinterest. Both are heavy hitters in the wedding planning industry, where future brides and grooms go to save inspiration. Research found that many people aged 16-30 had Pinterest boards or saved collections on Instagram of wedding inspiration. If Tiffany and Co. were to buy focused and promotional advertisements on these platforms, it would increase the brand awareness. The brand has 11.4 million followers on Instagram and an engagement level of 10% on promotion content. It would cost $85,000 to reach these customers. Pinterest is far less expensive at around $9,300. This would help inform and create awareness with the brands targeted demographic.
Instagram Mockups It was really important that the aesthetic of the Instagram posts matched up with that of the preexisting brand. Since the only experiential service venture that Tiffany and Co. has gone into is in the form of Blue Box Cafe, I did research on how this was introduced into a feed full of jewelry. Playing off of the brands quirky use of motion graphics, the best way to present the brand service was with a short logo video with supporting imagery.
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Motion Media Content For Instagram
This is a video of the motion media content for the Tiffany and Co Instagram account, @tiffanyandco. Tiffany has been using video content heavily over the last year, therefore the introduction of the service only felt right with a short motion video. It can be viewed by hovering and clicking on the video, which will walk you through the app and its processes. It was created by Motion Media student Tyler Rispoli.
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Services Book for Boutique
This book will be located in the Tiffany and Co. wedding boutique. This is where couples and those who are helping plan the wedding go to meet the wedding planning team. Ideally, the team will consist of one leader and three other wedding planners. While the 6 E 57th St, New York, NY. flagship store is remodeled, they will create a space on the fourth floor for the Blue Box Bridal Boutique.
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App for Blue Box Bridal
The app for Blue Box Bridal will be used by those who are looking into the Blue Box Bridal Service, but have not met with the team at the 5th Avenue store yet. The app has a menu that features a home screen, about section, services offered, and pricing. It also features a schedule a consultation section, where potential clients can submit their interest into the service.
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App for Blue Box Bridal
This is a video of the app prototype for the Blue Box Bridal app. It can be viewed by hovering and clicking on the video, which will walk you through the app and its processes.
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Expanding Service Beyond NYC
Wedding Attire Extension
Blue Box Bridal Pop Up Events
By bringing the services to other major areas of the country, or even globally, the brand could potentially see an increase in sales and recognition. Places like London, Chicago, and Los Angeles could be potential expansions.
If the brand were to collaborate with an existing bridal or bespoke brand, it could create a memorable and additional way Tiffany’s could have reach in the wedding industry. Examples of appropriate brands include Tiffany’s x Vera Wang or Tiffany’s x Brioni.
It is not a surprise that younger generations enjoy experiential shopping, so shopping for services should be no different. The brand has potential to do pop up events at places like The New York City Wedding Expo or in the 5th Ave Flagship.
How to Expand Service Offerings
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The End
Conclusion and Lessons Learned The purpose of the creation of Blue Box Bridal was to explore the potential for Tiffany and Co. to enter further into events and lifestyle branding. The creation of a wedding planning service allows Tiffany’s to do this in a way that is exciting to a younger audience, while also still enticing and connecting with the existing customer. The existing customer will connect with the bridal service through the association of the brand with engagements and the celebration of love. Millennials and Gen Z are looking for experiences through brands and many can connect and are familiar with branded wedding experiences, like Disney’s. Possible next steps for Tiffany’s includes expanding service options beyond the NYC area, the creation of wedding attire, and pop up events that support the new service in wedding expos and in the flagship store. I learned so much about what those that are in the age demographic to get married are looking for, why experiential services are important to them, and how an established and well known brand can expand without devaluing themselves. It was a meaningful and important project.
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References DiGiovanna, Jessie Mooney. “What Millennial Wedding Guests Love and Hate Most About Weddings.” Brides, Brides, 15 Oct. 2019, www.brides.com/story/what-millennial-wedding-guests love-and-hate-most-about-weddings. Forrest, Kim. “10 Ways Millennials Have Completely Changed Weddings.” WeddingWire, Www. weddingwire.com, 7 Mar. 2019, www.weddingwire.com/wedding-ideas/millennials-change- wedding-traditions. Kent, Sarah, and Laure Guilbault. “LVMH Buys Tiffany in $16 Billion Deal.” The Business of Fashion, The Business of Fashion, 25 Nov. 2019, www.businessoffashion.com/articles/news analysis/lvmh-buys-tiffany-in-16-2-billion-deal. Lorie, Konish. “Younger Generations Say ‘I Don’t’ to High-Cost Engagement Rings.” CNBC, CNBC, 21 May 2019, www.cnbc.com/2019/05/20/younger-generations-say-i-dont-to-high-cost engagement-rings.html. Tuchscherer, Rebekah. “This Is Why Millennials May Skip Your Wedding.” USA Today, Gannett Satellite Information Network, 18 Aug. 2019, www.usatoday.com/story/money/2019/08/15/ weddings-expensive-and-millennials-know-best/1692119001/. Wahba, Phil. “Tiffany's Manhattan Flagship to Get a $250 Million Facelift.” Fortune, Fortune, 14 Aug. 2018, fortune.com/2018/08/14/tiffany-remodel/.“PDF.” May 2019. “Young Americans & Marriage Survey.” TD Ameritrade, TD Bank, May 2019, s2.q4cdn. com/437609071/files/doc_news/research/2019/Young-Americans-and-Marriage-Survey.pdf.
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