Pro Concepts/Theories of Fashion Professor Donald Levy 11/29/2016 Presented By: Caroline Mickley, Heta Patel, Nanthitha Shanmuhasundaram & Radhika Chopra
Executive Summary This report was commissioned to examine the sales volume and merchandising mix of Tiffany & Co. in order to suggest a potential brand extension. The luxury market has experienced a steady decline over the past several years with a 9% decline in sales for Tiffany & Co in 2015 alone. Further analysis revealed that the luxury market as a whole experienced a decline. Tiffany’s, however, has been consistently meeting or exceeding sales goals in the 2016 fiscal year leading to the belief the market is stabilizing. This initial decline for Tiffany & Co could be in part to the lack of customization, lack of discounts and lack of website offerings; however, these issues cannot be fixed without changing the core competencies of the business. Therefore, we have another solution to increase market share and overall profits. The potential brand extension for Tiffany & Co is wedding attire. This extension coincides with the target customer of engagement rings and wedding jewelry. This report gives a detailed description of the target consumer, competitors, potential design aesthetics, as well as a pricing strategy and simplified marketing plan for the bridal product launch.
TABLE OF CONTENTS Company Summary Overview & Timeline Management Structure Current Products & Services Target Market & Customer Profile Environment Factors Channels of Distribution Revenue & Sales Volume Competitors - Products, Price, Service & Distribution Current Promotional Activities & Expenditures Future Growth Plans Market Analysis PEST Analysis SWOT Analysis Perception Map Key Players - Product Mix, Price, Service & Distribution Target Consumer Demographic Segmentation Lifestyle & Psychographic Segmentations Customer Profile 5Ps Strategy for Proposed Extension Overview & Moodboard Bridal Collection - Golden, Diamonds & Platinum Veils & Belts Distribution Channels Store Layout & Services Promotion Srategy - Events, Advertising, Social Media & Marketing Conclusion Sources
Tiffany & Company is an American luxury jewelry and specialty retailer, headquartered in New York City. They sell jewelry, timepieces, sterling silver, china, crystal, stationery, accessories, fragrances, leather goods and watches. Tiffany is renowned for its luxury goods and is particularly known for its diamond jewelry. Tiffany markets itself as an arbiter of taste and style. “Seeks to enrich the lives of customers by creating enduring objects of extraordinary beauty that will be cherished for generations.” Type : Public Traded As : NYSE TIF S&P 500 Component Area Served : Worldwide
Industry : Retail Headquarters : 727 Fifth Avenue New York City, New York, U.S. 10022 Website : www.tiffany.com
Over the Years : Marketing & Strategies
1837 : Recognised Customer Base | Fixed Price, Cash Only
1886 : Introduced the 6 Prong Diamond Solitaire Engagement Ring
1887 : Purchased French Crown Jewels
1837 : THe Blue Box “One thing money cannot buy.”
1845 : First Blue Book
1878 : Purchased Tiffany Diamond, Cut from 287 to 128.54 carat to emphasise on quality
1877 : Police Medal of Honor, Yankees adopted the logo in 1909
1902 : Louis Comfort Tiffany launches Art Jewelry, included precious colored stones
1926 : USA officially adopts Tiffany’s standard of purity for Platinum.
1851 : USA adopts Tiffany’s Sterling Silver Standards
1862 : Supplied swords to Union Army during American Civil War
1940 : Opened Fifth Avenue Store ‘Palace of Jewels’
1955 : Gene Moore created dramatic window displays
1979 : Paloma Picasso joined Tiffany
1990 : Recession - How to Buy a Diamond
1956 : Jean Schlumberger joined Tiffany
1974 : Elsa Peretti joined Tiffany
1999 : Lucida new 6-prong setting
1967 : Produced the NFL Super Bowl Trophy
1961 : Breakfast at Tiffany’s
1969 : Return to Tiffany Collection
2000 : THe Tiffany & Co. Foundation
1968 : White House china for President Johnson
2012 : 175 years of legacy
Current Ownership Structure & Management Tiffany & Company (TIF) is a holding company that operates through its subsidiary companies. The company’s primary subsidiary is, Tiffany & Co. whose principal merchandise offering is jewelry. Jewelry represented 90% of the company’s total revenue in fiscal 2015. They engage in product design, manufacturing, and retailing activities. The Tiffany & Co. Foundation supports nonprofit organizations dedicated to the education and preservation of design in the arts and environmental conservation. Chief Executive Officer Senior Vice President (Strategy & Business Development) Senior Vice President (Global Human Resources) Senior Vice President (Global Category Marketing) Senior Vice President (International) Senior Vice President (Secretary and General Counsel)
Frederic Cumenal Jean-Marc Bellaiche Victoria Berger-Gross Pamela H. Cloud Philippe Galtié Leigh M. Harlan
Senior Vice President (Diamond and Jewelry Supply) Senior Vice President (Chief Brand Officer)
Andrew W. Hart Caroline D. Naggiar
Senior Vice President (Global Operations & Customer Services)
John S. Petterson
Current Product & Services •
•
Tiffany’s products range from wedding bands, rings, bracelets, necklaces, earrings, brooches, charms, watches, china, crystals, stationery to fragrances. Tiffany houses a massive collection of precious metals and gems such as, platinum, gold, diamond, silver, gemstones/precious stones, titanium, rubedo metal & Pearl. Services: They offer a variety of services including personal shopping and a concierge services for guests. They also offer engraving which can be used in conjunction with all of their products.
Target market & customer profile Tiffany caters to both genders, but their main clientelle comprises of women. While the brand caters to all age groups, the customers between the age of 28 and 54 years tend to buy more products. The customers belong to the upper middle class (and have a graduate degree) with a minimum salary of $50,000. Tiffany products can be bought throughout a person’s lifecycle : childbirth, birthdays, engagement, wedding, anniversary and retirement. • • • • •
Psychographic Segmentation - Attitude & Interest (a Tiffany customer lives or aspires a life with Glitz and Glamour. Reads Cosmopolitan and is socially active.) Values - A Tiffany customer values Reliability, Credibility and Dependability. Lifestyle - The customers live an affordable and aspirational life. Behavioral Segmentation - Benefits (Customers purchase products as a symbol of Prestige and Beauty.) Usage - Tiffany products are generally bought to mark or symbolize a period in one’s life.
Environment Factors Affecting the Business • •
•
Corals are being compromised and along with that comes lack of supply chain transparency. This lead to Tiffany’s elimination of coral from it jewelry collections, since 2002. Depletion of natural resources has lead the industry into sourcing more precious metals from highly ecological locations, that have been untouched till now. Thus, Tiffany doesn’t purchase metals from those locations. Contamination of watersheds due to extraction and mining activities related to precious metals, has lead to poisoning of water bodies around the world.
Channels of Distribution Tiffany uses 2 channels of distribution. They have 302 brick-and-mortar stores around the world. The E-commerce is targeting 13 countries using tiffany.com, and its collaboration with Net-A-Porter has allowed it to extend its access to another 157 countries. Europe - 41 152,000 gross sq. ft. International (29 countries) UAE - 5 8,000 gross sq. ft. Geographic Segmentation Japan - 56 152,000 gross sq. ft. National (124 stores) Asia - 81 216,000 gross sq. ft.
Revenue & Sales Volume Current Revenue from October 2015 to July 31 2016 is $3,974,800 (in thousands). The actual revenues have been above the estimated over the past three quarters. We believe that this signifies growth in the company. Net sales: (in millions) (accroding to regions) Americas Asia-Pacific Japan Europe Total reportable segments Other Total
Years Ended January 31, 2016 $ 1,947.0 $ 1,003.0 $ 541.3 $ 505.7 $ 3,997.1 $ 107.8 $ 4,104.9
Net sales (in millions) (according to segments) Statement, fine & solitaire jewelry Engagement jewelry & wedding bands Fashion jewelry
Years Ended January 31, 2016 $ 910.8 $ 1,170.2 $ 1,716.1
All other Total
$ 307.8 $ 4,104.9
Competitors - Products, Price, Service, Distribution Product mix
Blue Nile
Cartier
DeBeers
Diamond, Platinum, Gold, Silver, Gemstones, Pearl, Tungsten, Palladium, cobalt, and Tantalum. Engagement rings, Wedding bands, Rings, Bracelets, Necklace, Earrings, loose Diamonds.
Diamond, Platinum, Gold, Gemstones, pearl. Engagement rings, Wedding bands, Rings, Bracelets, Necklace, Earrings, Brooches, Charms, Watches, Accessories.
Diamonds with Gold or Platinum base. Also use fancy colored diamonds. Engagement rings, Wedding bands, Rings, Bracelets, Necklace, Earrings, Watches. The brand has a separate high-end line which follows choose online and buy it in store.
All jewels are present online.
Not all jewelry products are present online.
Price range
Starts at $35 for low line products. $600 to $100,000 (depends on customization).
Online $1500 to $130,000 Store - $1500 onwards. (instore products are more costly than online.)
Online $2500 onwards.
Service
Jewelry customization with engraving options, View your diamond physically before it is set, Free shipping (many countries) – products delivered in 1-9 days, Free gift packaging & gift cards during purchase, Lifetime warranty and cleaning services, Returns are allowed within 30 days, Blue Nile credit card, allows payment in installments over time, With every referral purchase by your friends will earn you $100, Shipping to Military locations.
Customization of jewelry only in store, Free cleaning and service, Free shipping, Watches have the warranty for 2 years, International Guarantee.
Customization of jewelry only in store, Free cleaning and service, Free shipping, Diamond education.
Distribution channels
E-commerce (only personal website), Physical Stores – only 5 all in the USA.
E-Commerce (only personal website) – selling to 62 countries, Physical Stores – in 62 countries.
E-commerce, Physical Stores – in 8 countries, Wholesale of diamonds under the name ‘Forevermark diamonds’.
Popularity / Established countries
Global presence.
Well known all around the world for its luxurious jewels and watches.
Well known in Asian and African countries.
Product mix
Pandora Gold, Silver, glass, manmade stones, enamel, leather, birthstones, and crystal.
Signet Diamond, Platinum, Gold, Silver, Gemstones, Pearl, Tungsten, Palladium, cobalt, and Tantalum.
Charms, Bracelets, Necklace, Engagement rings, Wedding bands, Earrings. Rings, Toe rings, Necklaces, Charms, Bracelets, Earrings, Watches. All jewels present online. Not all jewelry stores are present online. World’s largest retailer of diamonds.
Tiffany & Co. Platinum, Gold, Diamond, Silver, Gemstones / precious stones, Titanium, Rubedo® metal, pearl. Engagement rings, Wedding bands, Rings, Bracelets, Necklace, Earrings, Brooches, Charms, Watches, Accessories.
Owns Zales, kay jewelers, Jared The Galleria Of Jewelry, H.Samuel, Ernest Jones, Peoples and Piercing Pagoda. $5 to $70,000 since they own many brands, price varies for each brand. Customization of jewelry, Free shipping 2-day shipping, Cleaning and servicing of jewels.
Online stores don’t have all products.
Physical stores – 302 stores around the word. E-commerce – in 13 countries. E-commerce via Net-A-Porter.
Price range
$25 to $3000 (depends on customization).
Service
Jewelry customization, Free 3-day[G1] shipping and free returns.
Distribution channels.
E-commerce (other online retailers too) Physical Stores – in 5 countries.
Physical stores – 5000 approx. E-commerce.
Popularity / Established countries
Popular in the US, Asia, and Europe
Presence in Europe and the USA with little role in Asian countries
Perceptual Map
Current promotional activities & Expenditure All the advertisements are based on a single campaign. 2016’s campaign was titled “Legendary Style” and was directed by Grace Coddington, former vogue USA’s creative director. It was shot using two models (Natalie Westling and Christy Turlington) along with two actresses (Elle Fanning and Lupita Nyong’o). Tiffany & Co. broke its tradition by using an actress as the face of the brand for the first time in history. The campaign was incorporated into many advertisement forms. Advertising, marketing, public and media relations costs spending accounts for 7.4% of the worldwide net sales for 2015. This $302.0 million encompasses the costs of media, production, catalogs, internet, marketing events, and visual merchandising costs of in-store and window displays along with other related costs.
Traditional Advertising • •
•
Billboard advertising – The billboard is highlighted using tiffany blue. It includes a small message and a piece of jewelry. Catalogs – The catalog had a change from its traditional look. The product was not featured on a blue background, instead, it was zoomed into focus along with the model to enhance the feel of the product. The Blue book – This is the infamous book of Tiffany’s showing all the new couture and classic collections before it is launched into the stores. This book cannot be obtained by all for free, it is
only given to loyal customers. The book used to be available to all decades ago now it is a mystery to most.
Digital Advertising A tactic that Tiffany & Co. uses in all its advertisements are the emotion involved in the purchase or gifting of the jewelry. It rather ignites the want in people for the jewelry since one imagines themselves in that occasion of happiness. • TV Ads – These ads are released and aired based on seasons. Tiffany has five different ads minimum in a year. This year the advertisement titled ‘will you?’ was aired for the Valentine season and will continue until the next valentine’s day. The advertisement titled ‘I will’ revolves around the purity of the diamond and its craftsmanship – it runs throughout the year and is the main advertisement. ‘Make the world sparkle’ is the 2016 Christmas ad. Tiffany also has ads for work accessories - Love not like - love your life, watches – A New York Minute and Tiffany east-west. The blue box in the advertisement is another key factor Tiffany uses to instill its name into customer’s mind. Instead of using 2 product lines in an advertisement Tiffany uses the blue box to represent all of its product lines. This acts as a tool to help customers visualize any product they wish to buy from the brand. • Social Media - One of Tiffany’s forte now seems to be their active updates on social media sites like Facebook, Twitter, and Instagram. The also use these platforms to answer customer’s questions and promptly provide them with the links to their answers. • Online – the brand uses a mobile app that allows people to click a picture of their hand and see how the rings look on them. The allows customers a feel of connectivity to the product.
Future Growth Plans Partnership with Net-A-Porter. • Tiffany, in April 2016 announced that they would sell selected jewelry on Net-A-Porter. As of May 2016, Net-APorter started selling Tiffany jewelry on their site, making it the first time ever that Tiffany sells jewelry beyond its omni-channels. • This partnership will benefit Tiffany & Co. in the long run since Tiffany’s online website is available only in 13 countries while Net-A-porter supplies to 170 countries. This will allow Tiffany to expand its reach and ensure their products are accessible to a larger geographical mass. • This also helps Tiffany tap into various countries without having to process any legal work. • In 2015 Tiffany’s E-commerce sales accounted for 6% of its revenue. Since the percentage of E-commerce in the case of Tiffany & Co. is less compared to other retail brands, this collaboration will help tiffany increase that percentage as well as its whole revenue. Going sustainable and environmentally friendly. • The brand changing all its blue box and bags to the sustainable eco-friendly material. They are devising a method to ensure all the boxes and bags are made using recycled paper or sourced from responsibly managed forests. • They have a 2020 greenhouse gas reduction goal of 15%. They have changed their flagship stores along with a few to LEED fixtures to reduce energy consumption. They have set a goal to procure 100% electricity from renewable sources. Growth increased double fold. • Tiffany plans to increase the number of stores by double in the USA by the next 15 years. • The brand is looking to entering new countries that they don’t sell to. The partnership with Net-A-porter would give them the idea of the countries to invest in depending on the sales value from those 170 countries.
Tiffany is a brand known for its high quality, luxury wedding jewelry. It is well established and has garnered a loyal customer base. Since the brand has expanded it wings completely when it comes product range of jewelry, we propose an expansion that would help tiffany widen its product mix by adding a new category of product - bridal gowns.
Market Analysis Size of The Market As of January 2016, Tiffany & Co. has 302 (1,250,000 gross retail square feet) retail stores worldwide. The United States having 124 stores and accounting for 47% of the net sales, with 720,000 gross square feet is the power hub of Tiffany & Co. The flagship store in New York City has a gross retail square foot of 45,500 with sales per square foot of $5413.06.
PEST Analysis POLITICAL The reinstatement of the new government in the USA will affect the economy positively or negatively. If the economy becomes unstable it might affect certain factors like purchasing power, cost cutting on weddings etc. However, since bridal gown is a priority, customers will most likely refrain from cost cutting on bridal gowns as it is perceived as a ‘need’ and not want. Certain trade policies between countries will be revised after the new government takes charge. This will have an impact on the supply chain, raw material sourcing and selling of products. ECONOMIC Analysts and economists were hoping that USA would escape velocity (economic lift-off) by the end of 2016. However, that has not been the case. The economy is still unstable with the country struggling to break 2.5 percent full year growth. A strong US dollar, weakening economies, geopolitical tensions and a decline of the price of oil has reduced the purchasing power in key growth markets like Asia and European countries. The average spending on a wedding in 2015 was $31,213 which is a 3% increase from 2013. This rise in spending will include a higher spending on wedding dresses. SOCIAL Millennials are officially the largest, most diverse generation in the U.S. population, according to a report by a council of Economic advisors. This combined with the $300 billion wedding industry has created wide opportunities for brands to invest and reap profits. Soon it will be the millennials’ turn to get married and with the extension of the brand, Tiffany can benefit in the future. Status and ego boosting is our society’s biggest problem. However, this benefits business all around the world. With people wishing to out buy each other, bridal wear designers can reap the profit. Every bride wants to buy an expensive dress than her friend or acquaintance to boost their status and ego. TECHNOLOGY Technology can either be a destruction or a boon to industries. While technology has been the cause of the decline in wedding invitation business, it has benefited business like wedding dresses and wedding decorations. When a budget for $31,213 is set and the couple realizes it is much classier to send an E-invite, the budget allocated for the invitation will simply be added to the wedding dress or decorations. Technology has been constantly developing and this has benefited logistic companies, manufacturers & retailers. With faster and quality assured sourcing brands will be able to provide better quality products at a shorter time. Technologies have made making an intricate garment less time consuming and relatively easy. Technology is also the reason for globalization. • This has allowed brands like Tiffany & Co. source material faster and better. • Brand awareness is increased – brides posting their pictures on social media with the Tiffany & Co. tag.
SWOT Analysis
S• Established brand with worldwide popularity – easy to • • • • • • •
W • Bridal gowns are a new venture – many established brands
market the extension product. The brand name is affiliated with luxury – customers crave • to own a product carrying the name Tiffany & Co. • Three price categories – targets a wider customer market. Currently, the brand already caters to the wedding market – easy to gather analysis the success of wedding gowns. Ahead of its competitors – providing the whole wedding ensemble (from jewelry to clothing) under one roof. The significance of the Blue box – anything in the blue box is worth buying. Established e-commerce site. Hired an already established designer – loyal customers of the designer will be Tiffany’s customers.
exist in the market. Small product range compared to competitors Single designer oriented – customers might want an option of many designer labels under one roof.
large sum on wedding gowns. Increased e-retailing opportunities through the brand site or other e-retailers like Net-A-Porter (venture into new countries). Tapping into new product categories in the wedding industry. Chance to offer multiple wedding services under one roof. A chance to test brand loyalty and customer awareness. Use new political reforms to their advantage – legalization of same-sex marriage.
Political changes – affect trading eg. Brexit. Increased competition.
O T • Flourishing wedding industry with customer’s investing a • Recession. • • • • •
• •
Core competencies and Competitive advantage 1. 2. 3. 4. 5.
Offering the whole wedding ensemble package for the bride under one roof and label. Well established and well known brand that has garnered customer loyalty. Offering a wide range of prices, $2,500 to $25,000. Tailored to perfection since the gowns are tiffany made and not purchased from other labels and altered. Easily accessible geographical location around the world.
Perceptual Map
Key Players Kleinfeld Established in 1941 as a fur business and slowly transitioned to a bridal wear destination. Now located in Manhattan, Kleinfeld offers dresses from 79 worlds, famous designers. It is the world’s largest bridal store and it brings in new exquisite dresses from all over the world all most every day. There is a show on TLC titled ‘say yes to the dress’ which revolves around Kleinfeld. Wedding gown, Evening gowns, Plus size gown, Accessories, Jewelry, Wedding invitations, Men’s attire. (Names like Zuhair Murad, Marchesa & Amsale are available)
Bridal Reflections A family owned business established in 1973 in New York. Bridal Reflections salon offers dresses from over 50 designers in and around the United States of America.
Lovely Bride Founded in 2010, Lovely Bride stocks the collections of 14 famous designers from different parts of the world. The stores in each of the 11 cities apart from the flagship store in NYC is owner-operated (franchise). All the bridal gowns are made to order after the design is picked.
Bridal gown,Plus size gowns, Bridesmaid dresses, Flower girl gowns, Bridal accessories, Evening wear. (Names like Ines Di Santo, Victor Harper, & Cristiano Lucci are available)
Bridal gowns, Bridesmaid dresses, Evening dresses for brides, Plus size gowns, Magazine. (Names like Christos, Sarah seven, & Leanne Marshall are available)
Price range
Bridal - $3,500 and up for special order gowns. Bridal - Off the rack is priced at $660 and up.
Bridal - $1,000 -$20,000 and up.
Bridal - $1,500 - $7,000 and up.
Service
Personal alterations, Custom modification of gowns, Guide on how to choose a wedding dress, Provide owners personal mobile number for emergencies during after store hours, Hotel blocking (to stay) while visiting Kleinfeld, Cleaning and preservation of gowns.
Personal alterations, CusClothes are made to order, tom modification of gowns. Custom modification of Wedding dress preservagowns. tions.
Distribution channels
One store in New York City. 3 locations in New York Web site to view designs. City for convenience. Web site to view designs
Bridesmaid and bridal evening dresses are available for online purchases. Stores are present in 12 major cities around the USA.
Popularity
Well known in the USA.
Gaining popularity in the USA.
History
Product mix
Well known on the east coast of the USA.
History
Product mix
Price range
Service
Distribution channels
Popularity
Mark Ingram Atelier Founded in 2002, Mark Ingram Atelier is a high-end bridal salon carrying 18 world famous designer labels. It caters to big celebrities and New York’s Elite.
Ines di Santo
Amsale
Vera Wang
Ines di Santo is a fashion designer who specializes in Haute Couture Bridal and Evening gowns. The co-designer is her sister Veronica Di Santo-Abramowicz. Bridal gowns, Evening gowns
The Flagship salon is located on Madison Avenue, New York City. Amsale Aberra started her business in 1985 and worked out of her New York City loft apartment. Bridal gowns, Bridesmaids dresses
In 1990 Vera Wang opened her own design salon in NYC since then she has been designing bridal gowns for top celebrities like Kim Kardashian, Ivanka Trump & Chelsea Clinton. She has expanded her product mix greatly. Bridal gowns, Eyewear, Fragrance, Evening gowns, Cocktail dresses, Bridal accessories.
Bridal - $3,000 – $10,000
Bridal $2900 - $6900 and above (depending on the line and design chosen)
Alteration of bridal gowns after choosing a design. Modification of bridal gowns.
All gowns have to be customized. Modification of gowns.
Sold in over 18 countries. Apart from her flagship salon in NYC, her collections are sold in top retail stores around the world.
Available in 51 countries. Sold in the brand’s private store as well as top retail brands such as Bergdorf Goodman Bridal and popular retailers in other countries.
Strong hold in the USA and Asian markets.
Has a worldwide presence and popular throughout.
Bridal gowns, Evening dresses, Wedding invitations. (Carry names like Oscar de la Renta, Carolina Herra, & Christos Costarellos) Bridal - $5,000 – Luxe line (low 20,000 priced) – $2,400 – $5,500 Couture bridal $6,000 - $30,000 Custom made gowns Customization of are available, Perbridal gowns, Personal alterations, sonal alterations, Custom modification Modification of of gowns. gowns. Provide expert companies for other wedding affiliated process (make-up, gown preservation, floral designs). One store in New Available in York. different bridal retail stores in the USA and 14 other countries, Atelier (store) in Toronto, Canada. Sold through selected online retailers like Nordstrom Well known in New Very popular in York and nearby Europe and the states. USA.
Target Consumer A. DEMOGRAPHIC SEGMENTATION • • • • •
Female 25-50 Years Single / Married Salary of $60,000 College educated
B. LIFESTYLE/PSYCHOGRAPHIC/ BEHAVIORAL SEGMENTATION • • • • • •
Esteem Seekers Strivers Traditionalist Single/ Vow Renewal College Educated Well-Traveled
ASPECTS • • • • • • • •
Esteem seekers; Acquisitive and materialistic, aspiring to what they see are symbols of success, including things and experiences. Strivers; Attach importance to image and status, as a means of enabling acceptance by their peer group, at the same time holding onto traditional values. Traditionalists: Risk averse, guided by traditional behaviors and values, quiet and reserved, hanging back and blending in with the crowd. Marital status; Single, married Education; College educated Traveler Future Plans; Getting married
CUSTOMER PROFILE A young to middle age female who is engaged. This customer is a woman who is a professional that travels though the world at her leisure but has a large enough disposable income to purchase items on her own. She keeps up with the latest trends, but prefers the classically chic.
5Ps Strategy For Proposed Extension Tiffany is a brand known for its high quality, luxury wedding jewelry. It is well established and has garnered a loyal customer base. Since the brand has expanded it wings completely when it comes product range of jewelry, we propose an expansion that would help tiffany widen its product mix by adding a new category of product - bridal gowns. Our collection of bridal gowns will align with the aesthetics of Tiffany; classic, elegant, handcrafted to perfection with timeless legendary style. High-quality fabrics and design, with the best craftsmanship, constitutes the products of Tiffany. Tiffany has a wide pricing strategy, with products ranging from $125 to millions of dollars. Keeping this in mind, Tiffany’s bridal collection will also be sold at three price categories - $2,500 to $5,000, $5,000 to $10,000, and $10,000 to $25,000. These prices give Tiffany an opportunity to cater to different customer classes.
Digital Moodboard for the Collection
The collection is set to be launched at the Tiffany & Co. Gala next year, and will be sold at the Tiffany store in New York City. The Location is the most viable option since New York houses the middle-class to the elite. The store is also the largest owned by Tiffany thus, allocating display space for all its collection would be easy. It will also determine the success of this extension, and give an idea of how to expand into other geographical locations.
THE GOLDEN RANGE The bridal gowns from the gold line are crafted using fabrics like Georgette, Satin, Duchesse Satin, Cotton linings, rayons, illusion and Organdy. The surface embellishments would consist of man-made stones and machine embroideries. The gowns would be priced at $2,500 - $5,000 and will be the affordable range of the bridal collection. The collection is priced at a lower range, but will offer elegant and classic designs that can be customized to a bride’s wishes.
A wide surplice front combined with an asymmetric silhouette creates an extravagant look. The thick border trim on the sleeveless flounce empire line gown is made for the modern bride of today.
This high low flared dress with a sweetheart off shoulder bodice is for the ‘cool’ bride. With a highly structured bodice and well defined princess line, this bride will surely rock!
$ 3,000
$ 3,500
This column dress with a court train & bateau neckline gives a classy minimal look. The scallop detail embellished with crystals on the shoulder adds to the beauty of the gown.
This vintage Duchesse lace wedding dress is truly for the royal bride. It features fitted full-length sleeves on a straight floor length silhouette.
$ 4,200
$ 4,600
A flared floor length dress made in schiffli lace will start the evening on a magical note. The gown even features a functional pocket on the side and a beautiful court train. $ 5,000
THE DIAMOND RANGE The Diamond line of Tiffany’s bridal collection is priced at $5,000 - $10,000. It is a bridge line that will house gowns made from fabrics like Velvets, Tulles, Taffeta, Silk Mikado, polyester, organza and Silk Gazar. Surface embellishments consist of minimal hand embroideries, machine embroideries, stones, beadings, etc. The gowns are customized to the bride’s choice and are very classy yet modern.
This beautiful box-pleated ballgown has a well defined waistline with a princess line. The floor length dress is made on Alencon lace and has a court train.
This asymmetric floor length flounce dress is beautifully embellished. Made with English net, it has spaghetti straps and a wide neckline.
$ 8,500
$ 9,800
This five-tiered peplum dress with an empire silhouette has paillettes embellished on the top. The deep back will end at the small of the bride, with a big bow. Floor length, the garment has a deep straight V neckline. $ 7,500
This exquisite off shoulder floor length gown features three-dimensional floral surfacing on fabric. Organically done on the corset, this A line flared dress is stunning. $ 9,200
The Platinum Range This is the high-end, completely hand crafted, customized gowns that use fabrics like Silk, expensive gold lined lace, and Velvet. The gowns from the Platinum line are made of 2 to 3 layers of silk with gold or silver hand embroidery. These gowns will be priced between $10,000 to $25,000. These can be customized to meet the needs of a bride.
This fitted gown with a floor length mermaid skirt has beautiful white hand embroidry in a chantilly pattern on English net. The sleeveless dress, with a curved V-neck also features a court train. $ 15,000
A flared A-line gown with a straight deep V-neckline. The sleeveless wedding dress is made with silver thread woven fabric. With intricate applique work on the bodice, this floor length gown is bound to make heads turn at the wedding! $24,800
With a deep scallop V neckline, this tiered dress is truly inspiring. The floor length gown has a delcate surface embellishment of seed pearls. The flared A line dress with spaghetti straps, also features an interesting geometric back design. $ 22,500
Options for Veils
Veil & Belts Tiffany is a brand known for its high quality, luxury wedding jewelry. It is well established and has garnered a loyal customer base. Since the brand has expanded it wings completely when it comes product range of jewelry, we propose an expansion that would help tiffany widen its product mix by adding a new category of product - bridal gowns. Our collection of bridal gowns will align with the aesthetics of Tiffany; classic, elegant, handcrafted to perfection with timeless legendary style. High-quality fabrics and design, with the best craftsmanship, constitutes the products of Tiffany. Tiffany has a wide pricing strategy, with products ranging from $125 to millions of dollars. Keeping this in mind, Tiffany’s bridal collection will also be sold at three price categories - $2,500 to $5,000, $5,000 to $10,000, and $10,000 to $25,000. These prices give Tiffany an opportunity to cater to different customer classes.
Options for Belts
Distribution Channels The main channel of distribution is through Brick-and-Mortar store (New York). The store will house bridal gowns along with selected veils and bridal belts. The allocated space for the bridal section will be located on the third floor, which is occasionally used as exhibit area. New York being the home of Tiffany & Co. has an emotional value. Every collection that Tiffany has launched is available in the New York store, making it appropriate to launch the bridal collection in the flagship store as well. The other distribution channel will be through Tiffany’s website, however, the designs will not be available for sale on the website. The product falls under Tiffany’s existing product segment – wedding jewelry. Offering a new line consisting of the bridal gown and accessories help widen the segment, and offer the whole bridal package (jewels, dress and accessories) under one roof. Tiffany’s plan is to hire a well-known designer; who’s specialization is ‘Bridal wear’.
Store Layout, Planning & Services Veils Shelf
Mannequins
Footwear Rack
Belts Shelf Layout for the Proposed Store
Service being offered are: 1. 2. 3. 4. 5. 6. 7. 8. 9.
Wine and edibles to munch on while shopping. Customization of garment. If required multiple alterations. Dress preservations after the big day. Reservations at hotels while customers come to shop in New York. Personnel style associate till the wedding day. Heels and other accessories would be available at the store for trial. Free shipping with insurance. After purchase of a gown, chauffer assistance available for trial sessions.
Packaging 1. Wrapped in the infamous Tiffany Blue Box – with name engraved. 2. Tipped with a bottle of champagne.
Mannequins
Lifts
Changing Room
Front Desk
Changing Room
Statement Jewlery
Partition Bridal Gowns
Mirror
Workshop
Bridal Gowns
Sitting Area
Store Interiors - Ambience
Promotion Strategy
Events
Collaborating up with a profound designer will be a feather on hat. Someone like Josep Font, Creative Director for Delpozo, to lead the creative aspect of the line. Josep Font, with his creative vision to run a business along with a knowledge of Bridal gown aesthetic will be a needed face for the line. With him coming on board it will add new dimensions to the already existing customer base.
Host a gala celebration, featuring the new collection. Their celebrations generally have celebrities like from around the world including Reese Witherspoon, Diane Kruger, Jessica Biel, Naomi Watts and Eve Hewson. A kaleidoscope color ambience, music and dance setting the mood for an extravagant fashion show with models walking the ramp in the new collection.
Endorse a Celebrity Wedding – Victoria’s Secret Angel and billionaire co-founder of Snapchat are the perfect example of 21st century romance. Australian model Miranda Kerr and multi-billionaire Evan Spiegel’s wedding will be covered by all media channels and will be a talking point for a long time. News featuring a celebrity like her wearing the new collection will give the required noise for the launch.
Advertising Traditional advertising • Catalogs – Catalogs play a huge role in providing customers a detailed look into the collection and hence it will be a very important medium of advertisement. It will play a humongous role in educating customers about Tiffany Bridal collection. •
The Bluebook – The prestigious Bluebook of Tiffany will carry the new collection giving the customer an insight into the upcoming extension. A sneak peek that will get the customers excited and the collection will be a part of the Bluebook here and henceforth.
Digital advertising • TV Ads and online Ads – Keeping in mind the advertising strategy of Tiffany, we would strike an emotional chord with the customer. Depicting not just the product but also instigating an aspirational lifestyle.
Social Media Marketing •
It is very important to be active on social media with the generation relying on it for inspirations and research. Sites like Facebook, Twitter, and Instagram are popular platforms to connect with customer.
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The page will reinforce the exclusivity of the brand, share images of celebrities and prominent figures decked in our collection. In addition to official press photos, Tiffany’s Facebook page also shares images taken using Instagram, giving its followers an intimate, behind-the-scenes look into the brand, and the people behind its success. We will not restrict the social media to showcasing its exclusive air, but also encourage high levels of engagement from the followers.
Samples of Proposed Advertisements
Conclusion Tiffany’s began with a dream to bring quality products at a fair and valuable price. This company has slowly grown into an international brand with a stronghold in Asia and the United States. This success has its due in part to the quality of each and every handcrafted product. The introduction of the bridal line will not only increase sales but also taps into the company’s largest revenue producing market, engagement rings, and wedding jewelry. The bridal collection from Tiffany & Co is bound to turn heads, but the best part of this experience is the luxurious quality and craftsmanship you have come to expect, will be included in every garment . We wouldn’t want your wedding day to go without something (Tiffany) blue now, would we?
Sources • http://www.vogue.com/fashion-shows/bridal-spring-2017/lela-rose • http://studio.sachinandbabi.com/bridal#/ss17-bridal-look-book/ • http://www.isabellearmstrongny.com/spring-2017/ • http://studio.sachinandbabi.com/bridal/#/bridal-fw17/ • http://studio.sachinandbabi.com/bridal#/ss17-bridal-campaign/ • http://www.verawang.com/EN/wedding/bridal-collection/spring-2017• http://www.brides.com/gallery/wedding-dress-trends-for-spring-2017 • https://finance.yahoo.com/quote/TIF/financials?p=TIF • http://files.shareholder.com/downloads/TIF/3276948707x0x885037/6532A4C0-AED6-477E-8F4A-5D7A6E989D31/Tiffany_127515_003_BMK_WEB_2015AR.pdf
Pro Concepts/Theories of Fashion Professor Donald Levy 11/29/2016 Presented By: Caroline Mickley, Heta Patel, Nanthitha Shanmuhasundaram & Radhika Chopra