MBA – Marketing – Tiffany Marketing Project – Stakeholders and messages
MBA – Tiffany Marketing Project – Stakeholders and messages
PROJECT:
Please help Tiffany & Co. launch a new line of expensive jewelry based on designs done in gold with semi-precious stones designed by JAR. This needs to include not only how you would communicate with customers but also employees, who are the brand ambassadors, and investors, who have become anxious about the future as the stock price slid from more than $108 in late 2014 to just below $80.
Tiffany is known for its robin’s egg blue boxes, telling the purchaser or receiver of a gift that he or she has elegant taste. However, the last few years have been challenging for the company. More importantly, the company has analyzed its customer base and finds that its most profitable customers tend to be between 65 and 75, who buy jewelry only occasionally. Young millennials are no longer interested nor able to afford the gold jewelry it currently carries. What Tiffany needs are more customers between the ages of 40 and 65 who want to splurge on jewelry that signals they have arrived. This age group has the highest number of Americans making more than $100,000 per year (the top 10% of income).
In early 2000, the company came out with a less expensive line of silver jewelry priced at $50+, which damaged its brand. It dropped the cheap silver line several years ago. However, the company recently introduced a new silver jewelry line but with a higher price point (>$250) to appeal to 30 to 40 year olds. This new jewelry line is for a different clientele: a customer willing to pay anywhere from $5000 to $15,000 on something unique that conveys status. Tiffany has always had top designers such as Jean Schlumberger, Elsa Peretti and Paloma Picasso, but the look of their jewelry has become less distinctive over the years. Since the company needs to attract new customers at higher price points, it is critical to Tiffany’s success that it find a unique designer who can entice the target customer to buy two or three items a year. The CEO stated recently that he expects with its new product line to rekindle sales and EPS growth.
Joel Arthur Rosenthal, known as JAR, is a very illusive and extremely high end custom jewelry designer (see his designs on the right). He has an international reputation with the jet set types. In the past, he only created his unique items for existing customers or ones who had been referred to him by existing customers (such as Elizabeth Taylor, Elle Macpherson, Barbara Walters, Ann Getty, Mary Pinault and Jo Carole Lauder). Although the reclusive designer was reluctant to develop the new line, Tiffany CEO Frederic Cumenal persuaded him. He gave him enormous latitude with the designs, construction of the pieces, and sales and marketing efforts. JAR will develop only ten pieces a year. These will be made in limited number in India. The CEO has asked the communications team to determine how it should launch the estate jewelry line to enhance the Tiffany brand (while not alienating less well- off customers), to engage its employees during a time when the company has had to close stores and reduce staff, and to persuade investors that the upfront investment will result in an overall improvement in the results by 2018.
What we are looking for is for you to demonstrate that you have understood the materials provided below and can apply the SUCCESs factors in your examples. You should do significant research on JAR and Tiffany before you start to give you a strong understanding of the designer and the retailer.
INSTRUCTION
The project is due on Sunday, February 12 at noon USA Central Time Zone. You will need to submit the following:
A. A stakeholder map which places the company’s stakeholders into one of the four quadrants and a description of why you put them there;
B. A two-page plan to launch the exciting, new Tiffany/JAR pieces including your umbrella message and sub-messages for customers, employees and investors; and
C. An example of one of the ways you will communicate your message to 1) customers, 2) employees and 3) investors for the launch of the new line. These should be no more than one page for each of the three stakeholders.
The quality rating is based on how well you have grasped the concepts from the materials PROVIDED, and how you demonstrate those concepts in your stakeholder map, plan, and examples.
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NOTE: For a plan template, please see below:
EXAMPLE:
• Objective: To generate awareness among 10% of the target customer group
• Strategy 1: To introduce the JAR by Tiffany line to the top high end fashion magazines resulting in at least five features with photographs
• Tactic 1: Issue press release announcing this partnership
• Tactic 2: Invite editors to an opening of Tiffany’s flagship store to see the latest collection and meet the designer
• Tactic 3: Provide JAR by Tiffany pin to leading fashion models at Met Gala
• Strategy 2: To sponsor three top charity balls in NYC and provide JAR by Tiffany pins as top charity auction prizes
• Tactic 1: Contact Metropolitan Opera to discuss opportunity of being the primary sponsor
Etc.
INTERNAL COMMUNICATION
