BRAND CASE STUDY

LIZANNE ROBERTS I HARVARD UNIVERSITY

The Tiffany name, the company image and the robins-egg blue box are all elements that are rich representations of

the Tiffany & Co. brand. The heritage of Tiffany & Co. along with the quality and consistency in which they have so

flawlessly delivered beautifully-designed and hand-crafted jewelry, is what customers have come to associate with their

brand, offering the highest standard of excellence in the industry.

The Tiffany brand is a simple yet memorable visual identity that extends into the brand experience. Their brand embodies unparralled oppulance, one of a kind offerings of consummate artistry, and emotional experiences that are captivating and unforgettable. Tiffany & Co. is an aspirational luxury brand that symbolizes dreams of intimacy, mystery and sensuality and “inspires love” (Eti, O. & DeBoer). It’s noteworthy brand strength is based solely on the perceptions of its customers. Not only through the masterful craftsmanship of their offerings but also in taping into the sensory experiences and emotions of their customers through storytelling, visual imagery and the idea that love deserves to be celebrated (e.g. through the art of gift-giving). “Tiffany understood the importance of owning a brand that connects to consumers’ emotions, thence effectively creating a virtual environment highly charged of emotional sensibilities — based entirely on the concept of love and romance”. (Yin) Their commitment to artistry, craftsmanship, originality and sophistication deeply align and are communicated in their brand values. And their mission to being the “world’s most respected retailer” (Kowalski) mixed with truly exceptional customer service standards have also embodied the foundation of their brand and contributed to their success and a very devoted clientele.

The Blue BoxThe blue box has become the iconic face of the Tiffany brand, a truly powerful part of their brand identity and an essential element of the brand experience. It is the most widely recognized packaging in the world and this magical box is symbolic of the perfection it holds inside (Iconic Brands and Brillliant Experiences, n.p.) Its proprietary robins-egg blue (the most protected color in branding), its ownable signature white satin ribbon, its trademarked blue-coated paper packaging and the Tiffany name—elevate the brand to premium luxury status. The blue box embodies dreams of exclusivity and prestige and every detail of it’s contents do (and must continue) to align with the exquisitely hand-crafted, artisan-quality jewelry that it promises.

Any change to this highly coveted box, which can only be secured with a purchase, would degrade the brand in the minds of its customers and it would immediately lose its value. In a market that is highly volatile and incredibly competitive, Tiffany has been able to successfully leverage the elegance, sophistication, authenticity and brand mystique that its packaging represents.

What Is The Brand?

TIFFANY BRAND CASE STUDY I LIZANNE ROBERTS

Social Media Initiative Proposals

#WhatsYourTiffanyBlue?Is it the crystal blue waters off the coast of Greece? The gorgeous blue mosaic tiles of Morocco? The sensual blue doors of Monmartre?

Inspiring and captivating emotional experiences of the Tiffany blue, this initiative would inspire users to ‘dare to dream’, take an escape and share aspirational ephemera that taps into the personal “sensory experiences” of the Tiffany blue, weaving personal experiences into the brand narrative. This initiative would promote brand engagement and foster a sense of brand awareness and ownership via user-generated content. By lever-aging the hashtag, users are connected to larger communities which creates increased exposure to the brand. Engaging with consumers in a truly authentic and personal way promotes brand allegiance and loyalty, which ultimately impacts sales and market share.

What was your first Tiffany?Invite Tiffany’s top 50 hand-picked celebrity influencers to share their “First Tiffany”.

Empowering top celebrity influencers to take on a central role in growing the brand—as advocates, storytellers, and co-innova-tors in telling their stories. Humanizing the brand by connecting on a personal level leads to a deeper level of engagement and brand loyalty. The success of this campaign is attributed to engaging digital influencers, whom engage their own audience, thus creating an exponential network of conversation and building a bigger and stronger brand community.

Partner with UStreamBring Tiffany to life in real time.

Partner with UStream to broadcast the Tiffany Fashion Show at Paris Fashion Week. Previously accessible only to the media and the socially elite, this would generate instant buzz, encourage more connection to the brand and allow social engagement in real time, opening up access up to a powerful and growing demographic.

“My first Tiffany piece was in high school. I had the necklace with the

heart with my initials engraved – I’m a Southern girl!” – REESE WITHERSOON

INITIATIVE #1

INITIATIVE #2

INITIATIVE #3

Above: Santorini, Greece. Retrieved from: http://hotelsandstyle.com/hotel/grace-santorini/Left: Location unknown. Retrieved from: http://balancingthedream.blogspot.com/2011/08/power-of-color.html

Reese Witherspoon quote: Retrieved from http://www.style.com/culture/ parties/2015/tiffany-and-co-document-journal-new-york-parties-041615

Driving brand engagement:

According to Tiffany’s 2014 Annual Report, worldwide net sales in Asia-Pacific represented 24%, Europe 12% and Japan 13% (Tiffany & Co. 2014 Annual Report, pg. 14-15). To circumvent the sensitivity of sales based on changing economic conditions, the firm might hedge their overall operating risk with the use of two possible derivative financial instruments:

Foreign Exchange Forward Contracts or Put Options:To minimize foreign currency exchange rate exposures (particularly in the Japanese Yen, Euro and British Pound), a forward contract would put forth an agreement to exchange a given amount of currency at a predetermined fixed rate — on a specified date, customized in terms of amounts and maturities. For example, since Tiffany’s exchange in the Japanese market is denominated in Yen, they face the uncertainty of the dollar equivalent cash flow if exchange rates fluctuate. A forward contract agree-ment can be used as an effective risk management tool to remove this uncertainty (of exchange rate fluctuations) that are used when calculating financial performance and protect against weakening local currencies. Essentially due to the fact that there is an obligation to deliver the currency at the maturity date under the agreed upon terms of pricing. (Investopedia, n.p.)

Alternatively, if Tiffany’s expectation is that the U.S. dollar may continue to strengthen, then they may consider choosing to exercise a Foreign Exchange Put Option which would allow for the right (but not the obligation) to sell a given amount within a specified time. In this instance, Tiffany would have estimated or assumed that the Japanese Yen would fall below the terms stated before the expiration date. For example, if the Japanese Yen falls (as the U.S. dollar strengthens), a Put Option would gain in value and thus be a great hedging strategy for Tiffany.

As we are currently seeing a strengthening in the U.S. dollar against foreign currencies, the translation of these foreign currency-denominated transactions could potentially decrease consolidated net sales and profitability. “Certain-ly these effects are difficult to predict, anyone or more of them could lower the company’s revenues, increase its costs, reduce its earnings and disrupt its business” (Tiffany & Co. 2014 Annual Report, pg. 24-25). And while these options offer some level of risk involved, they do mitigate a portion of exposure to overall operating risk.

Hedging Risk

TIFFANY BRAND CASE STUDY I LIZANNE ROBERTS

ReferencesEti, O., DeBoer, L. (2012). The greatest love stories between consumers

and brands, pg 18. Retrieved from: http://lup.lub.lu.se/luur/download?func=downloadFile&recordOId=2796756&file-OId=2796764

Iconic Brands and Brilliant Experiences, n.p. (2014). Retrieved from: http://www.brilliantlens.com/be-brilliant-blog/2014/10/07/tiffany-co

Investopedia, n.p. (2015). Forward contract. Retrieved from: http://www.investopedia.com/terms/f/forwardcontract.asp

Kowalski, M. (2010). Corporate Responsibility Report, pg3. Retrieved from: http://www.tiffany.com/csr/aboutreport/ 2010_CSR%20Report_FULL_052912.pdf

Tiffany & Company 2014 Annual Report, n.p. (2014). Retrieved from: http://www.shareholder.com/visitors/DynamicDoc/ document.cfm?DocumentID=3163&CompanyID=TIF&zid= cce484aa

Yin, Z., Ling, S., Yie, Z. (2012). Love Knows No Boundaries. Retrieved from: https://brandtiffanyandco.wordpress.com/ love-knows-no-boundaries/

Image above: Retrieved from http://www.tiffany.com