Brand Extension Concept - Tiffany & Co.

LUXURY BRAND MANAGEMENT

Tiffany & Co.

Tiffany & Co.

Assignment Brief:

Mapping Brand Extension possibilities and devise strategies for an International Luxury Brand, based on understanding of Brand heritage and future.

Introduction Tiffany & Co. is already changing its marketing strategy, introducing new products and expanding its online presence to appeal to millennial and Gen Z shoppers. The core competencies of Tiffany and Apple as two brands are aligned to a great extent. Hence, the strength of this collection Tiffany x Apple and our proposed brand extension into tech-accessories is humongous.

Please Note:

This is a hypothetical brand extension proposal for a possible collaboration between Tiffany & Co. and Apple Inc. All branding and conceptualization is part of an academic project.

About Tiffany & Co. They are known for pristine craftsmanship and exquisite collections of couture jewelry on earth.

Craftsmanship: Tiffany is renowned for the

exceptional craftsmanship and elegance of its engagement rings.

Gemstones: Tiffany engagement rings can

feature an array of gemstones diamonds, sapphires, and tanzanite.

Reputation:

Tiffany

&

Co.

such

has

synonymous with exceptional inventiveness, and luxury.

as

been quality,

The Tiffany logo is constituted of forthwith recognizable wordmark. It is an example of elegance, affluence and love.

Their position is deeply rooted in an emotional connection between consumer and brand. It is reinforced by cultural references, cinema and celebrities.

Tiffany believes in maintaining its luxury prices, Offers no discounts, Provides free shipping with any online purchase.

The Tiffany client usually has a strong interest in fashion, shopping, and luxury products. Thus the average price, depending on the product, tends to stay well above $1,000. Tiffany Jewelry price ranges from $125 - <$20,000.

History & Legacy In 1837, Charles Lewis Tiffany and his friend John B Young opened a small stationery and fancy goods store in New York City which came to be known as Tiffany & Co. Located on Broadway, the store quickly established itself as the go-to emporium for fashionable ladies in search of jewels and timepieces with a clean American style that represented a distinct departure from the opulence associated with the Victorian era.

In 1877, he purchased a 287-carat fancy yellow rough diamond and had it cut to reveal the 128.54-carat Tiffany Diamond, one of the world’s most famous gemstones. Tiffany Yellow Diamond has only been worn by four women

throughout history.

Tiffany & Co. The pioneer of American luxury

Tiffany began publishing their legendary Blue Book in 1845. A catalogue of the world’s finest jewels featuring the iconic Tiffany Blue® color on its cover since 1878.

Tiffany Blue Box is regarded as the

most recognizable and coveted packaging in the world, the color, box and white satin ribbon are all trademarked, as is the term Tiffany Blue Box. In 1886, Tiffany introduced a new engagement ring design which highlighted brilliant-cut diamonds by lifting the stone off the band into the light. This famous ring was named the Tiffany® Setting. To this day, it is the most sought-after symbol of true love, and the standard in engagement rings.

Tiffany & Co.

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Brand Extension PROPOSAL

Tech Accessories Earpod Jewellery Jewelry for EarPods has recently emerged as a category of its own.

This is the brilliant piece of jewelry, you have always missed without knowing. it It touches on our constant need to be digitally plugged in. EarPods and headphones have become our unconscious adornment of choice, and as we come to rely on these sound devices more and more, so our jewelry must adapt and assimilate.

Need for the product EarPod accessories revolutionize the way one wears and styles EarPods. They wrap and clip onto EarPod headphones to stop them from falling out of their ears and getting lost. These not only keep the pod in place, but they can also double up as earrings on their own. The new range will bring fine jewelry finesse to hearing devices and headphones. Tech brands perpetuate a very male-centric design perspective and this presents an alternative.

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Moodboard This Visual/Mood board reflects the

timeless

superlative

beauty

craftsmanship

and of

Tiffany along with the uber-chic and

tech-savvy

approach

of

apple towards the future. It also exhibits

the

lifestyle

and

choices of the customers we are going to target for this collaboration. It gives a pellucid idea about our brand extension, which is smart, elegant as well as sumptuous.

Target Consumer Customer Profile

MARIA MENEZIS FASHION MODEL/ WRITER/ACTOR

Age - 20 Gender - Female Marital Status - Unmarried Country - Brazil

Habits - Movie enthusiast, Avid Reader, Art lover Lifestyle - Loves partying, lextrovert Interests - Loves Bollywood, Classic literature, Fashion Values - Loves family, values relationships, values cultural heritage.

Salary - $ 215000 / year Occupation - Freelance Fashion Model, Actor Home Environment Currently stays with parents , mostly stays in rented apartment or motels while working Education - Completed High school. Trying to persue Acting.

Target Consumer Customer Profile

ELDA MUHADRI ENTREPRENEUR / BLOGGER

Age - 24 Gender - Female Marital Status - Unmarried Country - U.S.A

Habits - Shopping, Cooking, Binge-watching on Netflix Lifestyle - Loves travel, Promotes Body positivity Interests - Fashion, Food Values - Loves family and friends, values professionalism,

Salary - $ 320000 per year Occupation - Runs a retail store and earns from the Travel blog Home Environment - Stays with Family Education - Graduate in Business studies

Proposed Product Mix This will be a limited edition exclusive collaboration with Apple and the range will have around 8-10 designs.

Material used will be 18K gold in yellow, rose gold, white gold colors.

Few designs will have diamonds and few have pearls as well. The finish will be high polish.

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Strategic fit of Brand extention

For Tiffany, this co-branding will be another attempt to inject modernity and freshness into a brand famed for its perennial appeal and a DNA founded on tradition and heritage. This limited partnership with Apple keeps Tiffaany very much at the cutting edge of luxury – while playing to their traditional strengths of precious goods.

For Apple the partnership will be a clear vision where Apple wants to present EarPods not just as a tech product but as a fashion product as well.

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The original Apple Tech Gadgets like Earpods are a bit of a utilitarian affair, but add a touch of Tiffany savoir faire, and the famous halo effect of two cool brands briefly coming together as one, and the results are extremely attractive.

Tiffany & Co's global brand value from 2010 to 2021 (in billion U.S. dollars)

Strength behind Extension Brand Equity

Tiffany & Co. and Apple are two global brands with high valuation and loyalty. Be it the little blue boxes and bags or the little Source: Tiffany & Co.: brand value worldwide 2010-2021 | Statista. (2021). Statista; Statista. https://www.statista.com/statistics/985289/tiffany-and-co-brand-valueworldwide/

apple

halo

effect,

these

brands

have

successfully

resonated with affluent customers worldwide.

Solid Execution

Both Tiffany and Apple have consistent financial performance, with innovative strategies. The graphs here reflect the premium position these brands hold in the market.

Highly Profitable

Tiffany and Apple have a net profit margin of 18.49% and 25.88% respectively which are very high. Thus, this strategic collaboration would definitely prove to be a highly successful Source: Apple: brand value 2021 | Statista. (2021). Statista; Statista. https://www.statista.com/statistics/326052/apple-brand-value/

move for both brands.

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despite narrow fallout, they have bounced back successfully

X Performance:

Commitment to quality, style & great craftsmanship Excellent service delivery Exclusive image tarnished by Imitation Imagery: The range will be packed in complementary Tiffany robin blue box which will also feature the Apple logo.

Luxurious & cool factor combined Salience:

Very good brand recall for both Tiffany & Apple, hence Tiffany x apple products can be easily recognized Strong position in gift and premium tech accessories category

Brand Equity

Resonance Judgements

Performance

Feelings

Imagery

Salience

Positioning This collection is a paramount maneuver in repositioning the brand for their existing customer and the Gen Z consumer segment.

The position is accordingly rooted in a invigorating connection between consumer and brand. It is a hybrid between its traditional touch and fresh new concepts strengthened by new pop references and celebrities.

This collection will be known for flawless, fresh and multi-use accessories for the modern go getters Gen-Z consumers, who don't compromise on exquisite collection and quality.

Tiffany X Apple collection adds a to scintilla of glam and luxury to everyday items while retaining their essence as a brand.

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HIGH END

X

CLASSSIC

FASHIONABLE

LOW END

To transpose their traditonal jewelry image for this collection, they have partnered with Apple, for coming through as a savvy and accommodating brand within customers.

As it is directed about Gen Z consumer segment, it will be focused on change, self love, modernity and corporate social responsibility.

In 2021, the Tiffany & Co. brand was valued at approximately 5.5 billion U.S. dollars. In comparison, the brand's valuation was 4.1 billion U.S. dollars in 2010.

It will be considered as Tiffany's intellectual property a crucial part of the overall brand valuation analysis, Tiffany & Co. certainly places significant emphasis on its branding-specific assets in the larger scheme of its overall brand value. Tiffany, with trademark rights proving essential to the competitiveness and success of the company’s business.

The collection will incorporate luxury into everyday life of the consumers, and will posture for a strong self expression statement, as the millennials believe in individuality.

Pricing Strategy Tiffany X Apple's co-branded, limited edition extravagant collection will be sold at select Apple stores and Tiffany boutiques starting at $600 and will go up to $2800.

Tiffany X Apple with its multiutility functionality will be perceived as innovative and precious in the current market context. A premium price will not only emphasize the features of the products but also act as a barrier to the entry of new players in this segment.

Tiffany x Apple products are based perception

on of

customer value.

It

inculcates a number of both tangible

and

intangible

benefits

with

a

clear

understanding of elasticity of demand advantage.

and

competitive

Tiffany x Apple employs this pricing

strategy

where

it

launches a new product range either at initial or at eventual margin to get a foothold in the segment.

Tiffany proposes

X

Apple

product

customizable

and

Versatile products this leads customers to pay Premium prices.

Digital Strategy Tiffany in the past had mixed social media responses. Thus, to magnify the online presence, this collaboration would be of great help as Apple already has a sturdy presence over the digital platform. And, this being a Gen Z booster collection, going digital would be a smart move. So, the strategy for this is going phygital.

Tiffany @ Facebook

Tiffany @ Twitter

Tiffany @ Instagram

One month analysis: Source: unmetric. (2019). Social Media Analytics & Intelligence Dashboard by Unmetric. Unmetric. https://unmetric.com/brands/tiffany-&-co#pricing‌

Promotional Strategy Ad Campaign Tagline: Tiffany At Every Step

This campaign, “Tifanny At Every Step” celebrates “An American take in luxury. It's much less self-conscious. It's more for every day” and features content creators of Gen Z. It will talk about modern needs for modern consumers, women empowerment, working women, and multitasking.

Tifanny like always can use emotive selling for this campaign too.

Tiffany can launch Instagram and Snapchat Filters just like its mobile app "Ring Finder".

Each image can be as sophisticated as it is beautiful, and the accompanying copy often twinkles with poeticism.

Responsiveness with constantly following the conversation surrounding the industry will be the core of the campaign.

Tiffany at every step

AD CAMPAIGN

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Tiffany has recently discontinued its daily print ad within the New York Times. But Tiffany can plan for more impactful print ad packages. They can continue to keep their ads in printed media such as Hola and Quién.

Offline Store Promotion Another part is offering a great in-store experience at flagship stores of Tiffany and Apple at 5th Avenue.

If a customer was here a month and a half, tiffany calls them for a followup because it’s the most traditional way to do it and it works with certain audiences. Tiffany’s team calls it “personal touches. Tiffany may design a great strategy, but if the salesperson does not connect with the consumer, everything’s lost.

The next instore strategy Tiffany can use is to Make every corner of the store Instagram post/story-worthy, since we are inviting Gen z to the store. With the advent of social networks, such as Instagram, these experiences need to be differentiating, visual, and shareable.

Although visual merchandising has always been one of the strengths of Tiffany outlets, this new trend goes beyond this. It consists of “creating a perfect visual moment” that really comes to life in a photo.

It can be great content for the lifestyle bloggers and Instagram fans, but it can also be a fantastic way of getting people to promote your space and your brand.

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Conclusion Millennials and Gen Z value inclusivity and expect luxury brands to be accessible in their outlook.

Accessible luxury can still be exclusive.

Limited editions, localized products, and unexpected collaborations are the ways brands can do so.

Millennials and Gen Z choose brands that understand who they are and what they need and want, especially being a generation of experience and not of possession.

With our proposed collection and exclusive collaboration with Apple, we are aiming to cater to the modern needs of the modern consumer.

References AJ Agrawal (2016). How Tiffany & Co. Built A Marketing Empire. Forbes. [online] 9 Aug. Available at: https://www.forbes.com/sites/ajagrawal/2016/01/04/how-tiffany-and-co-built-a-marketing-empire/? sh=2db69ae41c30 [Accessed 5 Oct. 2021].

Tiffany.com. (2021). The World of Tiffany | Tiffany & Co. [online] Available at: https://www.tiffany.com/world-oftiffany/ [Accessed 5 Oct. 2021].

AJ Agrawal.

(2016, August 9).

How Tiffany & Co. Built A Marketing Empire.

Forbes. https://www.forbes.com/sites/ajagrawal/2016/01/04/how-tiffany-and-co-built-a-marketing-empire/? sh=4cf54c581c30 Glenn, S. (2017, May 11). Tiffany & Co. Iconic Strategy for Success: Diamond Retailer Case Study. ToughNickel; ToughNickel. https://toughnickel.com/business/Tiffany-Co-Iconic-Strategy-for-Superior-Success-Diamond-RetailerCase-Study unmetric. (2019). Social Media Analytics & Intelligence Dashboard by Unmetric. Unmetric. https://unmetric.com/brands/tiffany-&-co#pricing ‌Fast Company (2019). How Tiffany’s Is Keeping Up With Millennials | Fast Company. YouTube. Available at: https://www.youtube.com/watch?v=ZNMqdhoZ2UM [Accessed 9 Oct. 2021]. eTail Virtual Summit & Expo. (2020, January 23). How Tiffany & Co. Built a Diamond Digital Marketing Strategy.

ETail Virtual Summit & Expo; eTail Virtual Summit & Expo. https://etaileast.wbresearch.com/blog/tiffany-codiamond-digital-marketing-strategy

Thank You

Tiffany & Co.