1.0 Executive Summary

Tiffany & Co. is including a limited and affordable jewelry line, prices ranging from $100-$350, to its existing quality products. Our objective is to attract millennials, which consist primarily of our target market. In order to compete in this competitive market, our strategy is to develop an affordable and great quality product line that can penetrate the millennial market. This will allow sales representatives to up sale our product line once customers walk in the door. We will also open Tiffany and Co. boutiques in selected department stores such as Nordstrom and Neiman Marcus. This will allow Tiffany and Co. to take advantage of the foot traffic and exposure of being in a big department store. Lastly, we will launch a campaign with model Kate Upton, to promote our new line as well as our signature pieces. Our main objective is to increase sales by attracting the millennial generation with our campaign and affordable pieces.

The main financial objectives are: the first year we predict a 3 percent increase in gross profit of roughly 897 million dollar net earnings, our second year objective is to produce a 4 percent increase of 1.26 billion in gross profit. Our market strategy is to increase our financial earnings by producing a limited affordable jewelry line, and increase exposure with our boutiques expanding our market segment.

2.0. Situation Analysis

Tiffany & Co. was founded by Charles Lewis Tiffany and John B. Young in Brooklyn, Connecticut in 1837 as a "stationery and fancy goods emporium." Overall, in recent years sales of Tiffany & Co. jewelry have slowed due to high competition from stores such as Blue Nile and Pandora. Tiffany and Co. needs to reevaluate who their target market segment is and find a way to compete with these up and coming stores.

2.1. Market Summary

Tiffany & Co.'s market consist of customers worldwide that enjoy luxury jewelry and specialty items such as china, crystal, stationery, fragrances, water bottles, watches, home decor, and personal accessories. The segments that are being targeted are gift-givers and affluent self buyers. Gift-givers consist of 70% of their market, and affluent self buyers consist of 30%.

Tiffany & Co.'s target segment would be millenials. There are 75.4 million millennials, which would boost sales tremendously. These purchasers would be able to choose from a wide variety of products currently offered. Millenials are expected to buy from Tiffany's limited line items, which would still bring in a significant amount in sales due to a large number of transactions. Along with the limited line, the new boutiques would also bring in sales due to their catchy appearance and expertise sales associates.

2.2STRENGTHS, WEAKNESS, OPPORTUNITIES, AND THREATS (SWOT) ANALYSIS

Tiffany & Co. has strengths that can be used for future success, as well as many weaknesses that have challenged the company to be part of the trend. Its opportunities consist of being able to relate and attract a younger demographic that might not be able to afford their luxury items. Another threat is Tiffany & Co.'s exposure, which leaves an open door to its competitors.

Strengths. Tiffany & Co. has the potential of working on two strengths:

1. New Product development. In the past two years, Tiffany & Co. has been working hand by hand innovating its inventory by giving customers more choices when it comes to products. In this case, Tiffany & Co. not only will depend only on jewelry, but also on home accessories giving the company a new fresh face.

2. Profitable Inexpensive Jewelry. The company has potential success in the area of inexpensive jewelry. This keeps the company's margin in a balance with its overall revenue intake.

Weakness. For the last couple of years, Tiffany & Co. has tried improving its strategy against competitors and changing the company's image, while trying to stay marketable with its competitors. However, it still has two major weaknesses:

1. Difficulties with Strategy Planning. Latest strategy planning has been a negative result causing the company to react and enforce new techniques in marketing.

2. Attracting new customers. Since Millennials have been a new trend to the market, Tiffany & Co. created a new line that has been trying to fit a high demand for these new customers, but still lacking in creating a new target.

Opportunities. Tiffany & Co. can benefit from trendy opportunities that can boost the company's goals towards the future by targeting millennials and offering products at affordable prices.

1. Expand Social Media Campaign. Tiffany will take advantage by promoting our campaign with Kate Upton, which will showcase our limited line. We will advertise on social media pages such as Instagram, Twitter, and Facebook in order to attract millenials.

2. Production and Revenue. In December 2017, Tiffany made an exclusive license and agreement with Luxottica Group ( MTA, LUX). This eyewear company will represent Tiffany creating a higher demand for its products.

Threats. As other businesses, Tiffany & Co. has a risk within the market. Being creative is a crucial part in order to accomplish future goals for the company.

1. Innovative and Originality.Tiffany and Co. must be innovative with new products in order to be competitive in originality and pricing when dealing with its competitors.

2. Maintaining Good Customer Services. Communication is a key aspect in keeping the company's image in good standing with its customers.

2.3Competition

There are a few different competitors that Tiffany and Co. has in the current marketplace. There are other traditional brick and mortar jewelry stores such as Zales or Robbins Brothers in virtually every town mall or shopping center that drive customers away from Tiffany and Co. The other brick and mortar stores offer almost identical jewelry to Tiffany and Co. but depending on the actual price point the consumer wants there are many other options to Tiffany and Co.

With the influx of consumers turning to online mediums such as Amazon or Etsy these less traditional stores have become competition for Tiffany and Co. where it was only a few years ago if someone wanted to buy quality jewelry brick and mortar stores were basically the only options available. These online stores provides a convenience factor that is very hard to compete within the marketspace.

2.4 Product Offering

The company has been composed of a range of exclusive jewelry products for the upper class. Tiffany jewelry is not only well made, it is a status statement which women can show off and wear with pride. Tiffany & Co, now offer a variety of different accessories such as watches, earrings, bracelets, rings, necklaces and other home accessories. One of Tiffany & Co.'s most popular product is, "Return to Tiffany" necklace which can vary from around $150 to upwards of 1,000 dollars.

2.5Distribution

Tiffany & Co. owns majority of the mines in which they gather their diamonds, gemstones and precious metals. Once the diamonds or precious metals are mined, they are processed in Tiffany & Co. workshops, where they are distributed to Tiffany & Co. retail stores and where the consumers can purchase these goods. This 100% sourcing and tracing, assures consumers with high quality and ethically sourced products. It is widely known that Tiffany no longer distributes and mines ruby gemstones due to inconsistencies with ethically trading these precious gemstones. Because of this exclusive distribution, Tiffany ensures it is the industry leader in the jewelry trade and allows itself to retail their products at a high price.

As an independent luxury retailer, Tiffany continues to ensure it contains an exclusive image with its choice of retail locations. Tiffany & co. retail locations are selectively distributed around the globe and are placed only in the established Central Business Districts of the world and popular shopping centers.

3.0 Marketing Strategy

3.1 Objectives Our objectives for the first and second years of market entry is to make Tiffany & Co. a profitable and revenue generating company again.

First Year Objectives We are looking to see a two percent increase in revenue with net earnings gravitating toward 454 million dollars over the fiscal year.

Second Year Objectives Our second year objectives are to see a three percent increase in revenue with net earnings reaching about 467.62 hundred million dollars over the fiscal year. This will put Tiffany & Co. at the same net earnings reached in the year 2015.

Our objective is going to be repositioning the TIffany & Co. brand as more affordable for the everyday middle class individual instead of the just the elite. This strategy is going to be achieved by starting a brand new marketing campaign that signals TIffany & Co. is still selling superior jewelry, yet for cheaper prices. We will conduct several surveys of potential customers to receive feedback on whether or not our campaign is helping or hurting our brand.

3.2 Target Markets

Tiffany & Co.'s marketing strategy is based on advertising affordable unique stylish pieces. Our primary consumer target are millennials who look for timeless chic accessories to express their style. Our secondary consumer target is high earning professionals who look for unique luxuries pieces that showcase their status. Our primary segment can be described by age 18-35, where our secondary segment would be 35 and older.

Our primary target buyers are women of a middle to upper-middle socio-economic position. These women, between the ages of 18-35, follow certain fashion and social trends. They love to treat themselves to luxurious items and expect to receive them as gifts if not purchasing themselves. So, even though men are involved in the purchasing of Tiffany's products, women remain to be the main influencers. A secondary business target are women of upper-middle to upper class. They are of a mature age, between 35-50+, and generally in metropolitan or the immediate surrounding areas. Our products are generally purchased for special occasions, such as engagement and wedding rings, anniversaries, birthdays, and graduations. Because of this, we are able to reach a wide range of target markets.

3.3 Positioning

Based on many characteristics, we are positioning Tiffany & Co. in a category for its unique style, luxury, innovation, quality, and making conscious decisions about the environment. Tiffany & Co.'s marketing strategy will focus primarily on engagement rings and varios affordable designs that reach a wide range of customers. This will position Tiffany & Co. in a separate place and trying to garner a specific share of the market that other jewelry stores may overlook. This also positions Tiffany & Co. above the lower end stores that are not primarily focused on quality but maintaining a certain price point for customers. This positioning provides Tiffany & Co. with the ability to focus on a market section that combines price point and quality which will be able reach more of the population than other jewelry providers.

3.4 Strategies

Marketing strategies are explained into three category strategies, in which it describes Product, Pricing, Distribution, and Marketing Communication.

Product

By focusing and expanding on smaller pieces such as charms, bracelets, necklaces, and earrings, Tiffany & Co. will be able to expand its market to younger individuals, such as millenials, who previously might not have been able to afford certain

products. All items will still be packaged in the signature Tiffany Blue Box, and warranties on all products will be covered for up to one year. This unique line will focus on adding newer pieces attracting a wide range of customers looking for unique to pieces to showcase their style. While still carrying our high end products for our elite market segment.

Pricing

Tiffany & Co. will offer a limited amount of products with a price range of $100-$350. This will attract an influx of customers that would originally not shop at Tiffany & Co. due to the high price. Once the customers enter our stores, our sales strategy will be to upgrade their sale to our higher price items. This will increase revenues as well as establish a relationship with our customers insuring brand loyalty. Having products offered at this price range will allow TIffany & Co. to compete with the rest of the market without diluting the brand. Tiffany & Co. will also start an incentive program for their sales representative to initiate higher sales.

Distribution

The channel strategy of distribution is to try and expand the visibility of the smaller less expensive line of products to a market segment of millennials that would not have bought Tiffany & Co. products before. Trying to expand the visibility of this line of products through online mediums will give Tiffany & Co. a brouder customer market. By adding boutiques stores to Nordstrom and Neiman Marcus, where customers would be able to have a first hand look at the new product line, would give Tiffany & Co. more visibility .

Marketing Communication

By connecting and informing customers through a variety of media channels, Tiffany & Co. is providing a unique perception to new and existing customers. The focus will be on reinforcing the Tiffany & Co. brand through our new marketing campaign with Kate Upton. By using catalogs, magazines, billboards, and a strong focus on digital and social media,Tiffany & Co. will regain recognition. Research on media advertising and shopping patterns will help us come up with a strong campaign. By focusing on ads showcasing our products in a more relatable way, attracting millennials, this strategy will build our target customer. The focus on our signature Tiffany blue box, which has become synonymous with the brand, will continue.

3.5 Marketing Mix

In order to put Tiffany & Co. back on the path of consistent growth each quarter, we are going to implement three new drastic changes to the company. First, we are going to add a new line of products ranging from 100-350 dollars. Secondly, we are going to add small boutiques inside of expensive retail stores throughout the country such as, Nordstroms and Neiman Marcus. Finally, our third step is to start a new advertising campaign centered around a young female celebrity, Kate Upton. Below is our six-month implementation process to achieve our stated objectives.

January- In January we are going to start our marketing campaign that will inform the public of our new line of Jewelry. This advertising campaign is going to cost around 100,000 dollars, which will pay for the spokesperson, commercials and other miscellaneous expenses. This marketing campaign is going to be predominantly television and social media based. Furthermore, our target audience is going to shift towards a millennial and young workforce.

February- Next, we are going to begin implementing our new limited line of jewelry to our online website for our innovators and then adding to it stores across the country. We are going to use this line of jewelry for a six month trial period in order to see how sales and revenue adjust. According to our calculations starting an entire new line of jewelry is going to cost around 200,000, yet will increase the depth of our product line.

March- In the third month we are going to begin construction and implementation of our new boutique stores located in premier retail locations. We want to implement these boutique stores in wealthy high end areas throughout the country. The goal is to get a potential client that would not normally go into a Tiffany & Co. store. Each one of these stores is going to cost roughly 35,000 to complete. If we want to build twenty stores throughout the country it is going to cost around 700,000 to complete.

April- In order to incentivize selling of our new line of jewelry we are going to implement incentives for the top salesman at each branch throughout the country. Continue the advertising campaign and keep trying to upsell customers that come in store.

May- Transition our advertising campaign to now focus on all of the products that Tiffany & Co. has to offer not just the new line.

June- Conduct surveys throughout the country from customers that have purchased an item or a client that is a Tiffany and Co. shopper that decided not to purchase a product. Find out how successful the limited-affordable line of jewelry we implemented was throughout the last six months.

3.6 Marketing Research

Conducting research on our target market is going to allow us to find out which type of jewelry people find most desirable. We will conduct focus groups, market surveys and phone call interviews to help us develop our new line of jewelry. We will also be measuring potential customers brand awareness towards our competitors such as Blue Nile and Pandora. Finding out what clients think about our competitors is going to help us market more effectively through advertisements in the future. Lastly, we are going to provide incentives for customers to fill out a survey based on the product they purchased, which will allow us to comprehend market reaction to our product.