Tiffany’s Chocolate Campaign

Advertising & Communication Campaign

Advertising & Promotion

Fashion Institute of Technology

Amelia Izadpanah, Kayla Kelly, and Kendyl Vertoske

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Table of Contents

Executive Summary....................................................................................................................................... 3

Situation Analysis........................................................................................................................................... 3History............................................................................................................................................................ 3Product........................................................................................................................................................... 4Price................................................................................................................................................................ 4Place................................................................................................................................................................ 5

Target Market.................................................................................................................................................. 5Demographic Profile................................................................................................................................. 5Geographic Profile...................................................................................................................................... 5Psychographic Profile............................................................................................................................... 6

Communications Objectives........................................................................................................................ 6

Positioning & Creative Strategy................................................................................................................. 6Positioning Strategy.................................................................................................................................. 6P4c Ad............................................................................................................................................................. 8

Integrated Brand Promotion...................................................................................................................... 9Magazines...................................................................................................................................................... 9

People................................................................................................................................................................................. 9GQ........................................................................................................................................................................................ 9Lucky.................................................................................................................................................................................. 9

Consumer Promotion.............................................................................................................................. 10Valentine’s Day Facebook Promotion...............................................................................................................10Tiffany University...................................................................................................................................................... 11Fashion Week Competition................................................................................................................................... 11

Press Releases........................................................................................................................................... 12

Executive Summary..................................................................................................................................... 16

Works Cited.................................................................................................................................................... 17

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Executive Summary

Tiffany & Co. is a holding company that operates as a fine jeweler and specialty retailer,

whose merchandise offerings include an extensive selection of jewelry, timepieces, sterling

silverware, china, crystal, stationary, fragrances and accessories. Today there are more than 250

stores in the United States, Canada, Mexico and Brazil. Competition includes: Blue Nile and

Pandora. Tiffany & Co. is constantly striving to increase sales through expanding channels of

distribution, developing new products, and offering excellent customer service. Tiffany & Co.

plans to increase sales by extending their product lines even further by developing a luxury

chocolates collection, targeted towards a younger demographic.

Situation AnalysisHistory

Established in 1837, Tiffany & Co has existed for over 175 years and has set a high

standard for luxury international jewelers around the world (Parekh).  Today, the brand is

known for its high-end status, Tiffany blue box, and timeless jewelry. The majority of their items

sell as gifts and this transfers over to their marketing and advertising in which the main theme is

almost always linked to love.

Founder, Charles Lewis Tiffany, started Tiffany & Co., as a “stationary and fancy goods

store” with only $1,000 from his father (“About Tiffany & Co.”). He eventually discovered an

emerging “American style” by women who would pass by his store. By 1870, Tiffany & Co. had

become America’s premier silversmith and purveyor of jewels and timepieces. In 1886, Tiffany

introduced its engagement ring, which is popular today (“About Tiffany & Co.”).

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The company has been able to maintain its image by keeping a watchful eye on

competition, to protect the brand’s equity.  One method of control is to assure that Tiffany

products may only be sold in Tiffany retail stores, and not by other retailers or wholesalers.

Recently, Tiffany went after wholesaler, Costco, legally asking them to stop selling rings that

were falsely marked with a Tiffany print. Protection and image status of the brand is a very

important part of the company (Parekh).

The recession in the later half of the 2000’s effected Tiffany, but after the launching of

the Tiffany Key Collection the company was able to rebound, and has been doing well since.  Over

the past year Tiffany’s net sales and net earnings both rose 10% from the prior year. Their last

year advertising budget in the USA came to over 60 million on measured media (Parekh).

Product

Tiffany’s chocolates will come in milk, dark, and white chocolate. Each piece will be made

at our gourmet facilities, with added chocolate drizzle to replicate a gift box and bow. The target

market includes males and females 18 to 45. Our chocolates will be more affordable than any of

the current Tiffany products, so it will appeal to the younger demographic, with growing

discretionary incomes, who are looking for a special gift.

We are going to package the chocolates in the Tiffany Blue Boxes to keep the luxurious

branding that goes along with the Tiffany name. Tiffany & Co. shares, “Glimpsed on a busy street

or resting in the palm of a hand, Tiffany Blue Boxes make hearts beat faster, and epitomize

Tiffany’s great heritage of elegance, exclusivity and flawless craftsmanship.” This is why

packaging our chocolates in the blue box is so important to our customer and brand.

Price

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Our chocolates will be priced competitively against our major competitors such as Godiva

Chocolatier and Ghirardelli. For example, Godiva Chocolatier sells a 19-piece box of chocolates

for $22, while Ghirardelli has a 70-piece box for $27. Because of our luxurious brand recognition

among our consumers, we will price our chocolates slightly above the average specialty

chocolates:

9 piece box = $20 18 piece box = $30 25 piece box = $40

Place

The chocolate collection will be available in all of store locations, online, and able to be

shipped worldwide. To help promote our new product we will offer in-store free samples, an

exclusive launch party, along with several smaller promotional tactics. This report will go into

more detail of our positioning strategies, execution styles, and overall information of our new

product.

Target Market

Our target segments fall into two categories: the gift-givers and gift-receivers. Throughout

history our gift-givers have primarily consisted of males, while the gift-receivers have been

females, but today all genders have participated as a giver and receiver. In addition, we have

several affluent self-buyers who generally pamper themselves with luxury goods ("Segment

Explorer”).

Demographic Profile

Males, females 18 to 45 College students to graduates Income level: $75,000+ Dating, married, and occasionally single

Geographic Profile

Nationwide and international

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Major cities and some metropolitan areasPsychographic Profile

Order from websites like amazon.com, priceline.com, and target.com Enjoy traveling

o Cross countryo Europeo South America

Play fantasy sports Watch the latest television shows Watch soccer Read The New Yorker Own Toyota Yaris or Nissan Altima Hybrid Enjoy going to clubs and nightlife

Communications Objectives

The primary communication objective is to build awareness of the new product being

sold at Tiffany & Co. By branching out into chocolate, Tiffany is entering a new market that

consumers would not be aware of, so it is important to inform them of the new purchase options.

The second communication objective is to maintain the image of favorable attitudes.

Jewelry from Tiffany is connected with special occasions and love. The new product should

evoke these positive feelings and stay compatible with the Tiffany brand.

Positioning & Creative StrategyPositioning Strategy

To successfully target customers and reach the set communications objectives we have

created an advertisement. The positioning strategies implemented include:

Attributes and benefits

o We decided to persuade customers through details of the types of

chocolates available and an image of the chocolates to give them an idea of

what they could purchase and trigger their sense of taste. Most competitors

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with comparable target markets also use this approach, so we decided to

follow a similar marketing path.

Price/quality

o We also included key words such as “short-term,” “every moment, big or

small,” and “affordable,” and these will express the price to consumers by

making them realize they can easily purchase a Tiffany’s product for

anything

Appeal and Execution Styles

Emotional appeal

o The advertisement draws on consumer’s emotions by concentrating on love and

affection. These chocolate gifts are meant to appeal to these feelings through

making them available for “every moment, big or small,” so individuals can share

their love for others via this sweet snack. The advertisement also states, “make

your love’s moment memorable,” hoping that customers will see this is a special

gift.

Straight-sell or factual message execution

o Includes a picture of the product with basic information about the product,

focusing on its specific attributes or types of chocolates.

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P4c Ad

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Integrated Brand PromotionMagazines

People

People magazine has a broad audience of roughly 30,000 women readers and a little over

12,000 men readers. With such wide exposure our Tiffany’s candy will be seen by men and

women and even passed on through word of mouth to friends and family members who might be

intrigued to purchase our new product.

GQ

GQ magazine will be used to promote our product of Tiffany’s chocolate. The GQ target

market is men with a median age of 29 and median income level of $82,500, making this

magazine ideal for our products promotion (“GQ – Media Kit”). Slightly below 50 percent of the

readership accounts for married men, while roughly 52 percent are single (“GQ – Media Kit”).

Although this may seem as an issue, a majority of those single men would still have a reason to

purchase the non-committal Tiffany’s chocolates. GQ readers are known for their focus on

culture and style making them the type of consumer Tiffany is interested in attracting (“GQ –

Media Kit”).

Lucky

Lucky magazine is a consumer publication about shopping and style. The magazine is

targeted at mainly women, with about 94 percent of female readers ("Lucky – Media Kit"). In

addition, the median age is 38.1, and their income level is from $68,000 to $85,000. Therefore,

this magazines target market falls directly in line with our target for our Tiffany’s chocolates,

except for men. In addition, according to an MRI report on Fall 2012 Fine Jewelry, Lucky

magazine has readers that are 86 percent more likely to use or purchase fine jewelry (Lucky).

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Consumer PromotionValentine’s Day Facebook Promotion

Facebook is a widely used social networking site among our target market, and by

creating an easy to enter sweepstakes it will help reach our communication objectives. For the

sweepstakes we are going to randomly draw twenty people to receive a dinner at a five start

restaurant paired with our new line of gourmet chocolates for Valentine’s Day. The second part

of the promotion is that even if you enter you will receive a buy one get one coupon for the new

line of chocolates. The goal of this promotion is to bring new and loyal customers into stores and

increase sales.

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Tiffany University

Tiffany University will be a short-term pop-up shop located at major universities,

nationwide, including: Princeton University, Columbia University, University of Chicago, Duke

University, University of Pennsylvania, California Institute of Technology, Brown University,

Dartmouth College, Rice University, and New York University. These 10 schools were chosen

because they are known for being some of the top schools in the U.S., and they are located in or

near major cities. In addition, the pop-up shops will be at some of the best schools because as

post-graduates they will most likely have a higher income, compatible with our target.

The pop-up shops will launch the Tiffany’s chocolates to the younger target market, 18 to

24 year-old males and females. This promotional strategy will help increase brand awareness

among current non-Tiffany’s shoppers. The young college student will be our major focus for the

Tiffany’s chocolates because it is an affordable gift, while remaining a luxury brand.

Students will have a chance to sample the chocolates and compete in weekly contests to

win chocolate gift boxes and other prizes. Many of the competitions will utilize social media tools

such as Facebook, twitter, and Instagram. The weekly competition will encourage students to

tweet about Tiffany’s chocolates with #tiffanyu, and the winner will receive a free 25-piece box

of chocolates.

Fashion Week Competition

Starting January 15, 2014 every box of Tiffany’s chocolates will contain a card

encouraging recipients of the gift to tweet and Instagram photos of the chocolates using the hash

tag #tiffanychocolate. This hashtag will automatically enter them to win a Tiffany gift basket and

tickets to New York Fashion Week. The contest will close mid-way through the week, and the

winner will be randomly selected.

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Press Releases

Tiffany & Co.Contact: Director of Public Relations, Kayla Kelly(212) 633-0277 Office / (212) 479-3183 Home (212) 633-0202 Fax / kkelly@tiffany.com

FOR IMMEDIATE RELEASE

TIFFANY & CO. OPENS CHOCOLATE POP-UP SHOPS AT MAJOR UNIVERSITIES

NEW YORK, NY, November 17, 2013 – Tiffany & Co., the world-class fine jeweler, will introduce

the Tiffany’s chocolates to the top 10 major universities on January 1, 2014. The concept will be

called, “Tiffany University,” to connect with 18 to 24 year-olds. The universities include:

Princeton University, Columbia University, University of Chicago, Duke University, University of

Pennsylvania, California Institute of Technology, Brown University, Dartmouth College, Rice

University, and New York University.

The stores will include the 9 piece, 18 piece and 25 piece chocolate boxes, with the options of our

milk, dark and white chocolates.

There will be a weekly hash tag that will be promoted across all the campuses to boost brand

awareness as well as increase communication about the chocolates. Participants will be able to

share their hash tags on Twitter. There will be a social media contest where students will have to

share a tweet, incorporating Tiffany’s chocolates and a hash tag.

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Tiffany & Co.Contact: Vice President of Tiffany & Co., Kendyl Vertoske(212) 222-0277 Office / (212) 222-3183 Home (212) 222-0202 Fax / kvertoske@tiffany.com

FOR IMMEDIATE RELEASE

TIFFANY & CO. LAUNCH AN EXCLUSIVE VALENTINE’S DAY SWEEPSTAKES

NEW YORK, NY, November 17, 2013 – As Valentine’s Day is quickly approaching, Tiffany’s is

proud to announce their latest promotion. For the first time they are launching their Tiffany’s

Chocolates Valentine’s Day giveaway. This campaign is launched through their exclusive

Tiffany’s Chocolate Facebook page. Anyone can enter the contest by submitting an email and zip

code. On February 9, 20 people will be selected to win the grand prize of a luxurious evening

filled with decadent food and divine Tiffany chocolates.

Everyone that enters the contest will receive a buy 1 get 1 free coupon for Tiffany’s new line of

chocolates, just in time for Valentine’s Day.

Tiffany and Company is a jeweler and specialty retailer, whose merchandise ranges from an

extensive assortment of jewelry, to timepieces, sterling silverware, china, crystal, stationary,

fragrances, accessories, and now chocolates. Today, there are more than 250 Tiffany & Co stores

and boutiques serving customers around the world.

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Tiffany & Co.Contact: President of Tiffany & Co., Amelia Izadpanah(212) 222-2222 Office / (212) 222-2222 Home (212) 222-1122 Fax / aizadpanah@tiffany.com

FOR IMMEDIATE RELEASE

NEW YORK FASHION WEEK TIFFANY CHOCOLATE GIVEAWAY

NEW YORK, NY, January 4, 2014 – Tiffany & Co is proud to announce that it will be giving the

opportunity for one lucky winner to attend New York Fashion week and win a Tiffany’s gift

basket including the newly released product of Tiffany Chocolate.

Starting January 15th inside all boxes of Tiffany chocolate there will be cards encouraging

participants to tweet and Instagram photos of themselves eating Tiffany chocolate. Contestants

are then entered into the competition by attaching the hashtag #tiffanychocolate along with the

photo. The sweepstakes will run January 15th and close mid Fashion Week and a winner will

randomly be selected.

Tiffany is very excited about entering a new market with its recently launched chocolate gifts.

Just like all of its other products, these chocolates will showcase Tiffany’s high

- MORE -

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standard of quality. Like the jewelry these chocolates will be defined by its style and celebratory

themes. Tiffany is a company that celebrates love and special occasions. Many men and women

carry this love for fashion and Fashion Week represents the most important time of the year for

them. This years Fashion Week gift bags will include samples of Tiffany chocolate.

Founded in New York in 1837, Tiffany has been around for over 175 years, and it’s name is

synonymous for taste and prestige. While timelessness never goes out of style, Tiffany & Co

thinks it is important to celebrate the love affair many of us share for Fashion.

For more information about Tiffany & Co and its products visit www.tiffany.com

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Executive Summary

The goal of the IMC campaign for Tiffany’s chocolate is to raise awareness for the new

product while maintaining a consistent message about the company. This is demonstrated

through the target market and the consumer promotional events being offered. Social media will

play a key role to tap into the younger market and generate word of mouth about the new

product. Through the use of sweepstakes, Fashion Week and the Tiffany & Co college tour,

Tiffany chocolate will not only gain publicity but also will allow customers to sample the

chocolate and learn more about the high quality product and services the company has to offers.

The sales promotions offered will not only encourage consumers to try the product but will also

create traffic into Tiffany stores. Insuring that Tiffany’s chocolate is presented in a manner that

is up to the company’s high standards is crucial as Tiffany’s brand equity will play an important

role to new prospective consumers who have the potential to become loyal customers.

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Works Cited

"About Tiffany & Co." Tiffany & Co. For The Press  . Tiffany & Co., n.d. Web. 30 Nov. 2013. <http://press.tiffany.com/ViewBackgrounder.aspx?backgrounderId=33>.

"GQ – Media Kit." Condé Nast. Condé Nast, n.d. Web. 17 Nov. 2013. <http://www.condenast.com/brands/GQ/media-kit/print>.

"Lucky – Media Kit." Condé Nast. Condé Nast, n.d. Web. 17 Nov. 2013. <http://www.condenast.com/brands/lucky/media-kit/print>.

Lucky. Rep. N.p.: Kantar Media, 17 Nov. 2013. SRDS. Web.

Parekh, Rupal. "Tiffany & Co. Embarks on Global Agency Search." Advertising Age Agency News RSS. N.p., 4 Oct. 2013.

"Segment Explorer." PRIZM Market Segmentation Research, Tools, Market Segment Research,. PRIZM, n.d. Web. 17 Nov. 2013. <http://www.claritas.com/MyBestSegments/Default.jsp?ID=30>.

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