tiffany and co brand extension

Tiffany Hotel Tina Chang, Leticia Lopez, Lanyun Li

Tiffany Hotel The luxury hotel that makes your dreams come true.

Company Overview

Tiffany & co. History The 1830s in New York City were a time of dynamic growth and golden opportunity for anyone with a little capital and an abundance of imagination. In 1837 New York became the proving ground for 25-year-old Charles Lewis Tiffany and John B. Young, who opened a “stationery and fancy goods” store with a $1,000 advance from Tiffany’s father.

On their way to the new emporium at 259 Broadway, fashionable ladies in silks, satins and beribboned bonnets faced a gauntlet of narrow streets teeming with horses and carriages. At Tiffany & Co. they discovered a newly emerging “American style” that departed from the European design aesthetic, which was rooted in ceremonial patterns and the Victorian era’s mannered opulence. The young entrepreneurs were inspired by the natural world, which they interpreted in patterns of simplicity, harmony and clarity.

Charles Lewis Tiffany (1812-1902) Founder of Tiffany & co.

Company founder Charles Lewis Tiffany is seen here in his Union Square store at the age of eighty-seven, with Charles T. Cook, who assumed the reins of leadership after Tiffany died in 1902.

The ďŹ rst Tiffany & Co. store, located at 259 Broadway in New York, where the company was located from 1837 to 1847

In 1940, Tiffany & Co. moved to its current location at 727 Fifth Avenue, at the corner of Fifty-seventh Street. The granite and limestone building, with Art Deco inuences and stainless steel doors, is adorned with a nine-foot bronzed ďŹ gure of Atlas shouldering a clock.

Timeline ● ● ● ● ● ● ● ● ● ● ● ● ●

Tiffany first achieved international recognition at the 1867 Paris World’s fair. The company was awarded the grand prize for silver craftsmanship.

Tiffany was the first American company to employ the British silver standard (92% pure).

The Tiffany & Co. silver studio was the first American school of design.

By 1870 Tiffany & Co. had become the America's premier silversmith and purveyor of jewels and timepieces.

At the turn of the 20th century the company had more than one thousand employees and branches in London, Paris, and Geneva.

In 1878 Tiffany acquired one of the world's largest and finest fancy yellow diamonds from the Kimberley diamond mines in South Africa.

Initially published in 1845, the Tiffany Blue Book was the first catalogue of such spectacular jewelry to be distributed in the U.S. Since 1878, the signature Tiffany Blue® color has distinguished the catalogue’s cover, as well as the famous Tiffany Blue Box®, an icon of style and sophistication.

In 1886 Tiffany introduced the engagement ring as we know it today.

Having introduced major gemstones to the United Stated through purchases of the crown jewels of France and Spain, Mr. Tiffany’s enterprise was now the world’s diamond authority.

Louis Comfort Tiffany, the founder’s son, became Tiffany’s first art director.

Tiffany china set the stage for White House dinners and Tiffany jewels accented the elegant clothes of the world’s most glamorous women Tiffany has created the super bowl trophy since 1967.

Products and services Products: ● Jewelry ● High Jewelry ● Watches ● Fragrances ● Home and Accessories

Services: ● Personalization ● Cafe ● Jewelry treatment

Tiffany & co. Ownership ● institutional investors hold a majority ownership of TIF through the 98.78% of the outstanding shares that they control. ● This interest is higher than at almost any other company in the Specialty Stores industry. ● Other institutional52.60% ● Mutual fund holders46.18% ● Individual stakeholders11.66%

Tiffany & co. Current revenue Current Revenue: 2017 - 4 Billion USD Sales growth -2.51% Cost of goods 1.5 Billion USD

Channels of Distribution ● ● ● ● ●

The company operates in American, european and Asian pacific regions.

Tiffany stores are located strategically based on the demographics of the area to be served, consumer demand and proximity of other luxury.

The USA is the largest market of Tiffany and co.

The company largely distributes through its physical stores followed by its online stores, B2B and wholesale distributions.

Worldwide net sales rose 9% to $1.3 billion, resulting from growth in all regions and across all product categories; comparable store sales rose 3%. On a constant-exchange-rate basis, worldwide net sales rose 6% and comparable store sales were 1% above the prior year.

Current promotional activities Digital:

● With 7.1 million followers on Instagram, 9.4 million on Facebook, 1.58 million on Twitter, and 171,000 over on Pinterest, Tiffany & Co. is proving that there’s plenty of room for luxury on the world’s most popular social networks, and that no allure need be lost. ● When it comes to digital marketing and indeed to Tiffany’s business model it’s engagement that counts. ● The retailer has designed a purchasing process to make the user experience as exciting and engaging as possible most notably through its Engagement Ring Finder mobile app.

Current promotional activities The 4 P’s: Product: Tiffany & Co is majorly into luxury jewelry and specialty items.

Price Being a luxury goods manufacturer, the prices are as according to the affluent segment of the society.

Place: Tiffany was started in 1837 in New York and it is the official Headquarters. They established this as their flagship store in 1940, which was ahead of its time creation.

Promotion Tiffany & Co. promoted themselves on their goodwill they earned from the mail order catalog, the ‘Blue Book’, which is still prevalent in the 21st century since 1845. They had the first of its kind catalog which was in color that reached to over 15 million in 1994. They had their print media till the early 21st century active, but later they stopped promoting on print ads and all forms of newspaper advertising. Tiffany focused more on the engagement with the customers, and then focused their strategy towards digital media.

Market Analysis

Environmental factors affecting the business ● ● ● ● ● ●

Luxury fashion designer hotels Economic Political Social Technological Geographical

Size of the market

SWOT analysis of Tiffany & Co Strengths 1) 2) 3) 4) 5)

Branding: Because of the strong brand image, people are willing pay a high price of the hotel.

Rich History: Tiffany & Co established in 1883, which has more than a century and a half backing it.

Associate with the rich and famous High Brand Recognition Good reputation in the market

Weakness 1) 2)

Prices are expensive Limited bookings

Opportunities 1)

2)

Growth potential for international customers: Tiffany is a well-known brand, so tourists often purchased a Tiffany Product and even stayed in the Tiffany hotel as a tourist attraction.

Instagram famous: Because of the interior of the hotel are the tiffany blue, attract many Instagram famous to visit.

Threats 1) 2)

Competitors: The biggest competitor is Bvlgari Online retailers: Blue Stone or Carat Lane are taking over the market.

Key Competitors:

1. The Bulgari Hotel, London

Price range (1 bedroom): $695- $8920

2. The Armani Hotel, Dubai

Price range (1 bedroom): $496- $2179

3. Palazzo Versace, Gold Coast, Australia

Price range (1 bedroom): $449- $1799

4. Schlosshotel Im Grunewald Suite by Karl Lagerfeld, Berlin

Price range (1 bedroom): $425- $2437

Fendi Private Suites

Price range (1 bedroom): $714- $1156

Target Consumer

Negin ● ● ● ● ● ● ● ●

● ● ● ●

Gender: Female Age: 30 years-old Home: New York Status: In a relationship Education: Business Economics degree from UC Irvine Occupation: Owner of two famous bar, model, and influencer Year Income: 400,000 Free time: Travel around the world with her boyfriend and love taking good pictures because she is an Instagram famous. She meets up with her friends at their favorite restaurant, Jack’s wife, Freda.

Personality: Kind, sophisticated and always well-dressed Core Values: Fun, fashionable, and friendship Social Media: Instagram (5.2M), Snapchat, Facebook, Twitter Brands: Gucci, Chanel, Dior, Prada, Cartier, Tiffany & Co

“Why Tiffany Hotel?”

Tiffany is an American luxury jewelry brand, and it has already launched a home and accessories collection, and a cafe. To maximize customers’ experience and create a more cohesive connection between the brand image and the products from a variety of categories, Tiffany hotel is one of the solution.

“Welcome to Tiffany Hotel.”

(Based on the commodity price, rent in NY, and price from competitors) Superior, 1 King

$680/night

Premium Suite, 1 King Bed or 2 Twin/Single Bed(s)

$800/night

Studio Suite, 1 King Bed

$950/night

Deluxe Suite, 1 King Bed

$8500/night

A Tiffany Suite, 1 King Bed

“Our price (and the comparison).�

Price Range/Night

$12000/night

Tiffany Hotel (New York)

The Bulgari Hotel(London)

The Armani Hotel(Dubai)

$680-9000

$725-8950

$604-5446

“Where is the Tiffany Hotel?”

New York City, close to Fifth Avenue Flagship store.

Tiffany & Co. is an American luxury jewelry brand, headquartered in NYC. In addition, the The Blue Box Café is also located in NYC. From the background of the company to the plot from the movie Breakfast at Tiffany's, the fascinating stories of Tiffany always happen here, in New York City.

“Our employees.”

“Thank you for staying with Tiffany Hotel.”

Conclusion Tiffany hotel will open in New York - 5th Avenue, where every New Yorker, and every visitors know where to find. The hotel is beside the flagship store, so customers could go and enjoy the Tiffany breakfast for free.

Also, Tiffany, target customer that is from 21-35-year-old, especially target on tourists. Because of Tiffany’s high brand recognition, it will attract international customers to visit.

Tiffany Hotel can maximize customers’ experience and create a more cohesive connection between the brand image and the products. As a result, Tiffany Hotel would raise the sale of variety of products for the company as well as giving all the visitors and customers an exclusive experience were all the Tiffanys most famous trademarks will come together in one place giving the clients a luxurious experience that they will never forget.

Reference https://www.nytimes.com/2017/11/11/travel/tiffany-and-co-jewelry-breakfast-audrey-hepburn.html https://reservations.bulgarihotels.com/reservation/rateListMenu.mi?defaultTab=standard https://www.thetrendspotter.net/luxury-fashion-designer-hotels-suites/ https://money.cnn.com/quote/shareholders/shareholders.html?symb=TIF&subView=institutional https://www.marketing91.com/swot-analysis-of-tiffany-and-co/ https://www.ionsdesign.com/residential https://www.yellowtrace.com.au/the-calile-hotel-brisbane-richards-and-spence/ http://houseofturquoise.com/2015/09/natalie-clayman-interior-design.html http://www.fendiprivatesuites.com/en https://www.pinterest.com/tiffanyandco/happy-holidays-from-tiffany/2018/ https://investor.tiffany.com/news-releases/news-release-details/tiffany-reports-fiscal-2017-results https://www.grandviewresearch.com/industry-analysis/luxury-hotels-market