jump to navigation

Tiffany & Co – A Split Personality April 28, 2009

Posted by ross277 in Uncategorized.
Tags: , ,
trackback

How can Tiffany move into the 21st century?

In my recent visit to Tiffany and Co, I encountered a firm suffering from a profound personality disorder.  On one hand, Tiffany was extremely proud of its history, expensive goods, and weighty brand caché.   On the other hand, Tiffany has recently been expanding its portfolio to include less-expensive, more aspirational goods such as keys and charms.   Unfortunately, Tiffany’s service and store design failed to reflect this shift in product.

Tiffany’s product line is changing with the times.   Tiffany’s service is not.  How can the firm reconcile these two?

Exhibit “A”:  Old Money – Welcome to Tiffany & Co.  You are here for an experience.  This experience will involve the opening of your wallet as wide as possible.  It will also involve the warm, comforting reminder of your your own wealth.  You may feel slightly dizzy – don’t worry, this is to be expected.  You are here to impress someone.  He or she will be impressed.  Welcome to “the club.”  Would you like to look at our diamonds?  Or are you more interested in platinum?

Exhibit “B”: New Wealth – Baubles.  Charms.  Aspiration.  For only a few hundred dollars, you can wear our brand™ around your  wrist.  Impress your friend without breaking your bank.  Don’t worry, you’ll be back.

The Problem: Tiffany & Co. sells the customer Exhibit B in the same way that they sell the customer Exhibit A.   They sell charms – essentially an introduction to wealth – in the same way that they sell a $10,000 necklace. Tiffany cannot have its cake and eat it too.  If they’re going to make $150 charms part of their brand, they they better damn well know how to sell them.  That’s what our team sought to explore.

Advertisements

Comments»

1. Lara - April 29, 2009

Tiffany & Co has become absolutely arrogant in their ridiculous pricing. While I like some of the Tiffany diamond offerings, I feel like a fool opening up my wallet that far for them. Do I have the money to buy these baubles? Yes. But part of the reason I have the money is that I don’t allow myself to be robbed by stores like this. Tiffany, Tiffany… your jewelry is nice, but not nearly worth the astronomical prices you charge. If you want to stay afloat in these challenging times, it might be time to review your approach to selling.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: