Tiffany & Co.
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Transcript of Tiffany & Co.
Tiffany & Co.
By: Jessica Silva, Nicole Koorndyk, Spencer Cooper,
& Teresa Ruvalcaba
Background Information:● Founded in New York City in 1853 by Charles Lewis Tiffany
& John F. Young.● Sought to become the leading competitor in the jewelry
market by creating a brand that offers value, quality, superior design, & exclusivity
● Target those in the middle to high income bracket● Strong brand name & customer loyalty through the infamous
Tiffany Blue Box
Products:We will focus on Tiffany & Co.’s .925 Sterling Silver products● .925 describes the purity of the silver● Bracelets● Necklaces● Earrings● Rings
Price Per Unit:.925 Silver Weight Worth in Dollars
1 Gram $ 0.59
20 Grams $ 11.88
1 Ounce $ 16.84
1 Pound $ 269.51
1 Kilo $ 594.19
Sterling Silver Infinity BraceletWeight = 14.3 grams
$8.44 $175
Sterling Silver Return to Tiffany with LargeRound Charm BraceletWeight = 29.6 grams
$17.46 $285
Sterling Silver Return to Tiffany Heart Lock BraceletWeight = 22.8 grams
$13.45 $150
Bracelets: Worth Price
Necklaces: Worth Price
Shopping Bag Pendant Weight = 4.8 grams
$2.83 $225
Tiffany’s Key Knot Pendant Weight = 9.9 grams
$5.84 $350
ID Clip Necklace Weight = 18.6 grams
$10.97 $250
Earrings: Worth Price
Heart Shaped Return to Tiffany Weight = 10 grams
$5.90 $150
Sterling Silver Bar Drop Earrings Weight = 11 grams
$6.49 $275
Circle Shape Script Earrings Weight = 9 grams
$5.31 $200
Rings: Worth Price
Sterling Silver Heart Ring Weight = 10.7 grams
$6.31 $250
Sterling Silver I Love You Band Weight = 15 grams
$8.85 $125
Sterling Silver Classic Tiffany Ring Weight = 19 grams
$11.21 $150
Price Elasticity:Price Elasticity of Demand (PED) measures how much a
quantity is demanded for a product when the price changes for the product.
PED = Percent change in demand for the product Percent change in price of the product
Price Elasticity Cont.:● Tiffany & Co. .925 Sterling Silver Jewelry IS Elastic
● If price goes up, quantity demanded will go down
○ There are many substitutes for Sterling Silver Jewelry
from other brands and the jewelry is considered to be an
expensive luxury good, not a necessity.
○ The jewelry has a long life span, meaning it is not often a
regular purchase
● Tiffany & Co. prices are high which causes customers to be more aware and
responsive to price changes
Example:
If we increase the price of the I Love You band from $150 to $160Percentage change in demand of the Product = -9.24%
Percentage change in Price of the Product = 5%
PED = % change in demand of the Product → -9.24%
Price Elasticity Cont.:
% change in Price of the Product → 5%
PED = - 1.85%
Demand:● A consumer’s desire and willingness to pay a price for a
specific good or service
● Some factors that affect demand:
○ Price- amount of money given as payment for something
○ Competitors- a company in a the same industry that offers
a similar product or service
Demand Curve:Price
Quantity
D2
D1
Reasons of Purchase:
What We’ve Learned...