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Background and Problem
Marketing Strategy Development
-General marketing strategy
-Strong brand name
Tiffany is one of the leading brand names in fine jewelry market. It is one of the world's premier jewelry designers and retailers. The Tiffany brand is ranked 82nd in the top 100 global brands list published by Business Week in 2006. BusinessWeekInterbrand valued Tiffany brand at $3.819 million in 2006. Apart from Tiffany, the company owns trademark registrations for Tiffany & Co, Tiffany Blue Box and the color, Tiffany Blue, for a range of product categories in the US and other countries. The company's leading brand name provides it with an edge over its competitors.
A broad range of offerings
The company offers a broad range of offerings including a selection of jewelry, as well as timepieces, sterling silverware, china, crystal, stationery, fragrances and accessories. The company is not only known for its broad range of diamond offerings, but for other precious and semi precious stones. Tiffany also refeshes its product range at regular intervals. The company's latest Blue Book for instance, showcases itslatest jewelry collections. It is also developing a niche product line of jewerly made from titanium. Tiffany also comes out with periodic collections to stimulate customer interest. The Plasma Picasso collection has, as its central attraction, items with more colored gemstones and gold. A broad range of offerings enable Tiffany to meet a wide range of customer needs.
-Improving operating margin
Tiffany recorded a better operating margin in fiscal 2006. The company's operating margin improved to 16% in 2006, from 13.4% in 2005. The company's operating margin of 16.8% during 2002-2006, is also higher than the industry average of 10.5%. In recent years, Tiffany has developed its infrastructure at a signficant cost to support its domestic and international expansion.
-2006 Tiffany annual report
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