A Very Rigid Structure of Tiffanys - Case Study Example

Tiffany’s has exclusively targeted the luxury goods market; creating a situation by which only wealthy consumers are likely to purchase their goods or tacitly encouraged to shop at their stores.Solution a: Further “in house” differentiation and providing a higher percentage of the overall product line at reasonably affordable prices to a larger demographic.Solution b: Consider developing Tiffany sub-brands that would be offered to third-party vendors but still retain elements of the Tiffany's name and/or appeal.

Tiffany’s has thus far refused to provide licensing to its name outside its core competencies.Solution a: Tiffany’s should strongly consider developing its product line and seeking to invest a significant portion of profitability into research and development for new product lines.Solution b: Continue to rely upon the model of refusing to license but develop further “in house” brand production and development capabilities. The sale of “fine” jewelry accounts for only a small percentage of the overall sales and profitability for the firm; however, it continues to represent a lion’s share of the overall investment, research and development, and product space that such items receive within the Tiffany branded stores.

Solution a: Immediately shift focus away from this “fine” jewelry and attempt to provide more moderately priced offerings that a greater number of individuals can afford.Solution b: Leverage a new approach to product roll-out; one that is not dependent on an 18-month cycle. This will allow Tiffany to more effectively meet the needs of the target markets.Product:Tiffany’s is seen by consumer markets as representing extremely expensive pieces of fine jewelry; this somewhat reduces the degree and extent to which it can hope to engage consumers within other markets.

Solution a: Activate an aggressive marketing campaign that alerts consumers that Tiffany’s provides for the needs of a diverse group of consumers; not only those that are within the highest socio-economic category.