Tiffany Marketing Strategy through Segmentation, Targeting and Positioning - Essay Example

 Tiffany Marketing Strategy through Segmentation, Targeting and Positioning Introduction Tiffany and co. Company may need to apply some competitive market skills to enhance its performance further. This is indicated in the manner in which the company segments its customers, and targets them as well as its relative position as compared to other competitors. Being an international company, it may apply these methods in getting more customers into its side as will be noted in the subsequent sections. Profiling the situation –the prospective client company (Tiffany & Co) and their product and market details Tiffany and co Company deals in jewellery as well as accessories. It does its advertisements online and catalos. This includes the use of social sites and websites that provides detailed information to customers on their product of interest. As such, the company has done well over the past years, which have seen it develop strong grounds in the international markets. According to Philip (2006), the company involves in a variety of jewellery such as watches and designers collections. These may be classified as accessories or even gifts depending on the intention of the client. During seasonal events, tiffany does advertisements as per the season as well as producing relevant products in the market for their clients so as to enable them to have better choices to make availed by the variety. For instance, at present, we have the festive season where people intend to offer gift for Christmas to their loved ones. The company has a provision of this within their coverage of products. According to Garrod and Fyall (2005), a proper consideration of this may be seen in their advertisement as viewed in various websites and social sites. Catalogues have also been released providing relevant information on the products available for the season. For the remainder of their products, more details are availed to the customers so as to enable them make informed choice before going ahead for a purchase. Iman (2002) maintains that being an international company, the internet mode of advertisement works well for it. However, there is need for diversion in advertisement modes so as to improve the extent of coverage in targeting more clients. As a there is need for the company to establish market segmentation as will be realised in the subsequent sections. According to Bennett and Wilhelm (2001), this will be enhanced through various means together with targeting of specified segments and ensuring proper positioning of products in the market place. Theoretical description and analysis of the principles and practices of the process of market segmentation, targeting and product positioning In order to give a clear insight of this section, it is crucial to have an understanding of what is meant by a market. According to Sherma (2005), a market refers to a setup within which, two or more people involve themselves in transactions of commodities as such the parties become either buyers or sellers. The marketers are charged with the responsibility of making their products known to their customers. Schaus (2010) maintains that this may begin with the knowledge of the brand. This must be well communicated to those who use it at last. As such, similar strategic promotions by an organisation may not be a possibility amongst individuals since requirements and demand varies for every individual. This calls for segmentation, targeting and positioning so as to become competitive in the markets. According to Borowsky (2011), the initial stage involves segmentation which is a process of product promotion. This is a process of dividing individuals into groups of similar thinking and preference. These segments involve individuals with similar inclination for the same product or brands and may respond similarly in the case of market fluctuations. In essence it is grouping of individuals in the markets. Targeting becomes the second process. After establishing the various segments, it is important for an organisation to devise marketing schemes for the segments in line with their preferences as defined when doing segmentation. Wright (2007) maintains that the organization literally targets them so as to woe them to its products. This process involves devising various market plans in targeting products in various markets. Sherman (2011) argues that positioning comes as the last stage in the process of the cycle. After deciding to target the market, the organization must create an image in the minds of customers about its products. Positioning is the creation of an image on a first impression to the customer, which may be carried over to other customers in a positive manner. According to Zimmerman and Blyth (2010), the targeted audience are given a perception on the product so as to have a positive mind on the product. Applying these principles and practices in the context of Tiffany and co. Company These principles may be applicable in tiffany and Co Company as methods of widening their market. It has been evident from the company’s profile that the market targeted is mostly the elites or rather the well financially endowed individuals. Durkin (2005) maintains that this means that other less financially able segments are left out of the market. As such, the company misses out on maximum derivations of profits from the markets. This indicator may be supported from the advertisements made as well as the prices availed on various products. The variety caters for only medium to high spenders but not low scale spenders. According to Best (2006), the segmentation applied is not sufficient to enable the company maximize on the available market. This would mean that a change in strategy would be better for its operation and Excellency in performance. Havaldear (2010) argues, other than segmentation, the advertisement made by the company through journals and internet may not be sufficient to reach a large number of customers. Hence, targeting methods should be improved so as to see the company rise to greater heights. Other product promotion methods may be devised to target the segments that comprises of low price preferences of customers. Brandley (2005) argues that positioning in the competitive market may also include ensuring that all the regions covered are well informed of the products. Identifying the competitors and dealing with each situation separately rather than on a general consideration would be applicable to tiffany and Co Company. As such, all the procedures in marketing strategy comprising of segmentation, targeting and positioning would be applicable to the company in improving its general performance. Recommendations for Tiffany and co. Company on why they should undertake these steps in the context of their overall strategic marketing planning Tiffany and co. Company is an international organization that may be expanded further with a more precise coverage of the segmentation, targeting and positioning cycle. More customers could be reached through the processes mentioned above. According to (Shaw 2007), Further segmentation of customers should be made, a more detailed targeting should also be ensured as well as proper positioning so as to hook-up more customers. This may result in improvement of the general performance of the company. Segmentation that should be done in the company must look into the customer’s ability to buy certain products. Hykiel (2007) maintains that, as far as the advertisements are done, only the elites are given consideration. Further segmentation in the markets may ensure a wide margin of coverage hence more customers will be received by the company. According to Krishna (2005) on the same note, the company produces products which may be too expensive for every willing buyer to afford. As such, more segmentation based on product pricing as well as giving a variety may work better for the organization According to Viardot (2004), targeting is mostly applied during advertisement and production. Tiffany and co Company should ensure that they produce a variety of products with varied qualities and prices so as to ensure that the various segments are covered. Dasgupta (2011) argues that after producing the variety, advertisement should be made in such a way that it is directed to the segments formed. Seren (2010) maintains, for instance, cheaper jewellery may be advertised through the social sites for the younger population who may be interested in buying them as gifts for their loved ones. This is because, the younger population mostly used the social sites and have little to spend in jewellery and related staff in most cases. The company should also ensure proper positioning of its self in the competitive markets. According to Rao (2011), The way to ensuring this is by launching of proper advertisement methods to be applied in the process of marketing so as to with the hearts of all the customers. This would see unto it that it competes favourably as compared to other competitors in the market. Sandhusen (2000) maintains that smaller firms are the most components of competitors as they tend to target to hook-up the non elites in the markets. This must be applied among the marketing strategies of the company so as to see it fully dominating the markets. Conclusion From the above discussion, it becomes apparent that segmentation, targeting and positioning are important aspects in being competitive in the markets. This means that, the methods may be much applicable to tiffany and co. Company that deals in jewellery and related products such as gifts and accessories. The company embraces internet and journals as the methods of advertisement. Diversifying their products, segmenting their customers and targeting the specific targets which may be cut out are the way to go. Reference Bennett, J A & Wilhelm, J 2001, Introduction to Travel and Tourism Marketing, Juta and Company Ltd. South Africa. Best, K 2006, Design Management: Managing Design Strategy, Process and Implementation, AVA Publishing, Lausanne Switzerland. Blyth, J & Zimmerman, A S 2006, Business to Business Marketing Management: A Global Perspective, Cengage Learning EMEA, Stamford. Borowsky, A 2011, Adidas Marketing Strategy - An Overview, GRIN Verlag, Germany. Brandley, F 2005, International Marketing Strategy, Financial Times Print. Int, UK. Dasgupta, D 2011, Tourism Marketing, Pearson Education India. Durkin, D M 2005, the Loyalty Advantage: Essential Steps to Energize Your Company, Your Customers, Your Brand, AMACOM Div American Mgmt Assn, New York. 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