Tiffany & Co Marketing Mix (4Ps) & Marketing Strategy
Marketing strategy of Tiffany & Co through marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion).
Tiffany & Co Product Strategy:
Tiffany & Co is majorly into luxury jewelry and specialty items. It has a wide product range in its marketing mix which includes watches, customized water bottles, personal accessories, designed silver ware, china ware and premium leather goods. As we can infer, Tiffany & Co focuses on affluent class people and the brand is associated with style, elegance, exclusivity and sophistication. They have a unique The Blue Box style of wrapping and presenting their products which they claim to melt the hearts of the people as they receive it. Tiffany have specially handcrafted engagement rings, for bride and groom, wedding rings, exclusive huge list of jewelry collection, also products manufactured under the famous designers worldwide, bracelets, gift cards, bands, studded watches and premium fragrance perfumes. They have diversified their products to baby items, pet items, accessories, frames, decorative sets, eye wear, textiles, custom made key rings and may more. Tiffany & Co positioned itself as a provider of all luxury goods to the premium segment of the society. They have made to order products which are specially designed by the designers which gives customers a sense of exclusivity.
Image: Wikimedia
This concludes the product strategy in Tiffany & Co marketing mix & strategy.
Tiffany & Co Price/Pricing Strategy:
Below is the pricing strategy in Tiffany & Co marketing mix strategy:
Being a luxury goods manufacturer, the prices are as according to the affluent segment of the society. But Tiffany & Co.
aimed to expand their revenue by expanding low price products in the market. The price was as low as $30-$60. This helped to increase sales by increasing the volumes sold. The pricing strategy in its marketing mix was a step by step increase in prices over a period of time. They had prices of all the expensive products at the same price for continuously 2 years, thereby focusing on the low priced goods. Tiffany & Co have increased revenue from the high priced goods, by offering discounts, promotional material and increased online presence.
Read more about Tiffany & Co
Tiffany & Co Place & Distribution Strategy:
Following is the distribution strategy in the Tiffany & Co marketing mix:
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. The interiors, floorings and window displays were best in class and it became a Hollywood attraction as a location set in movies. Later they started expanding their retail outlets at selected locations, in 1990 in Virginia, which became the largest Tiffany & Co. store outside the US. Similarly, they have their stores at prime locations, Heathrow Airport in the United Kingdom, Melbourne in Australia, Manchester, Madrid, Sydney and many locations across the globe. Each store served as connect with the customer and were designed to its best in style, offered several products, gave the customer an elite feeling. In India, Tiffany & Co. have its stores at two locations only; one in Ahmedabad, Gujarat and the other in Chennai, Tamil Nadu. The company operates in 22 countries worldwide, and has approximate sales of $3.7 billion as of year 2012.
The majority share of sales, approximately 50% takes place in the US.
Tiffany & Co Promotion & Advertising Strategy:
The promotional and advertising strategy in the Tiffany & Co marketing mix is as follows:
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. As every product is available online, they created their digital presence. Being a luxury brand, it was a challenge to sell their product which may be a once in a while purchase for customers. They had their content strategy so well, that they garnered millions of followers on social media. There was a plenty of room for luxury brand to expand their business online. The key aspect of their online presence was the augmented reality feature. Tiffany have an application Engagement Ring Finder app which displays several suitable ring options to the consumer after it puts her finger under the phone camera. This helped customers to get what they desired especially in luxury segment without having visited the store. Emotive selling is their main strategy in selling products online. This completes the marketing mix of Tiffany & Co.
About Tiffany & Co:
Tiffany & Co is an American firm which dates back its inception long ago more than 170 plus years in 1837 and it majorly deals in luxury jewels and specialty items in retail format. The founders were Charles Tiffany and John Young. Headquartered in New York City, US Tiffany & Co serves worldwide it products. It is a publicly listed company in NSE, with over $3 billion in revenue and employing 20,000 workers under it.
Initially they were into retail business of variety of stationery items, later shifted their focus on jewelry items. It is associated the US government and made changes to the Medal of Honor on behalf of the United States Department of Navy.
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