1、Business Proposal for Tiffany in ChinaContentExecutive summaryCompany descriptionProduct/Service introductionMarket analysis-S.W.O.T. Company Analysis Customer Analysis Competitor Analysis-P.E.S.T.Strategy and recommendationsMarketing plan-4PAppendixExecutive SummaryObjectiveThis business proposal f

2、ollowed is commissioned firstly to uncover why the market share of Tiffany has been so small in China in terms of internal reasons such as the ideal of Tiffany and the product and service it offers to Chinese market; external reasons such as Tiffanys competitors in China, the characteristics of Chin

3、ese customers, and the overall climate of purchasing jewelry in China. Secondly, the proposal helps to recommend ways to increase its share in Chinese market both through advertisement and promotion.ProblemTiffany is a global company, however, only has a presence in relatively few cities in mainland

4、 China. It reveals the first and foremost barrier that Tiffany is not given much publicity in China. Moreover, the market and consumption environment in China is changeable and complicated, and characteristics of consumption differ in various regions in such a large country. This diversity leads to

5、companys increased marketing costs when providing different marketing strategies. Meanwhile, Tiffany is supposed to face the challenges from strong competitors in the jewelry market, such as Cartier, Bvlgary, and Chow Tai Fook Jewelry Co.SolutionIn order to popularize our product in China effectivel

6、y, we are going to paint a picture with two brushes at the same time. On one hand, we will take advantage of advertisement, exhibition, combined with promotion tactics and marketing strategies to promote our products, such as providing special discount for marriage anniversary or launching spec

7、ial payment plan on jewelry for certain group of people. On the other hand, we will increase the number of Tiffanys branch stores, especially in some developing cities and tourist cities. Only if we do work along both lines, can we expand Tiffanys market in China effectively and profoundly.BenefitIt

8、 is demonstrated:l Tiffany embraces higher brand recognition by opening more stores;Tiffany will magnetize a tremendous number of consumers by implementing effective promotion tactics;l Tiffany will manage to leapfrog rivals through efficient marketing strategies and unique products selling in the C

9、hinese jewel market;l Tiffany will eventually adopt a noble and graceful company image and emerge as a dominant player in the jewel market of China.Company DescriptionTiffany Company was founded by Charles Lewis Tiffany and Teddy Young in New York City in 1837 and has long been well known for its lu

10、xury goods, especially jewelry. It managed to market itself as an arbiter of taste and style. As part of its branding, it is strongly connected with its colour Tiffany Blue, which is a registered trademark. It designs, manufactures, and sells jewelry, watches, crystal glassware and other stuff like

11、timepieces, sterling silverware, china, stationery, fragrances, and accessories. Many of these products are sold under the Tiffany name at Tiffany stores throughout the world as well as through direct-mail, corporate merchandising, and its website. Tiffany started to open branch stores in the early

12、years of the new millennium under the Temple St. Clair and Iridesse monikers. In Jan 31, 2011, it conducted its businesses through five segments: Americas, Asia-Pacific, Japan, Europe and Others. At the same date, it opened 233 branch stores and boutiques. The U.S. is Tiffanys largest market today.

13、Excluding the New York stores, Tiffany has opened more than 50 branch stores in the U.S. Japan is the second largest market by now, accounting for over twenty percent of its net sales. In China, it has already had 28 branch stores16 in mainland, 10 in HK, and 2 in Macao.Product/Service introductionP

14、roduct introductionAccording to Baidu and Wikipedia website, the company launches hundreds of new products every year. And many of them have been proved to be masterpieces, and they sell well in China. The following products are the most successful products.Tiffany Celebration Ringl The product has

15、been popular over 100 years, and it has become a symbol of the company. As a result of its popularity, the designers of our company have never stopped to provide new styles of rings to customers.l In China, the ring is very popular among rich customers. As Chinese value celebrations, they prefer to

16、use diamond rings to show their taste and wealth.l With a powerful brand, rich history and excellent quality, the ring has become a symbol of elegancy and wealth.Tiffany Zelligel To attract more Chinese consumers, Mr. Picasso, Tiffanys best designer, designs the masterpiece for customers.l With colo

17、red enamel, carnelians and other gemstones, the jewelry shows a kind of glamour. By gold and silver, the designers create full three-dimensional fabrics. Because of its great quality, the product is always used as adorn in workplace and it is also used in banquet.l In additional, it sells well in Ch

18、ina market. It has gained many admirers in China as Chinese customers like to show their richness and personality. Taking our products, many stars show in Award parties. Their choice shows the great quality of Tiffany Zellige.Tiffany Keyl It is said that the product has been inspired by a key in Tif

19、fany, which was designed by some experienced goldsmiths. The old key not only shows classical flavor, but also seems tiny and alive. With the old key as a model, our designers provided another masterpiece for customers.l Rose gold, diamond and platinum are the keys to art of jewelry, and Tiffany key

20、 is a good example of this art. Its pendant and ornament show a kind of historical taste.l Chinese customers admire this product but they are hesitated to buy Tiffany Key. But as more promotion is sent to Chinese customers, the sales volume is increasing.Tiffany Heartl Tiffany Heart is the symbol of

21、 love and understanding. Designers in Tiffany were inspired sweet love, so love is showed in every part of their product. Heart shape, diamond and bracelet show the great tenderness between lovers.l The product has beautiful form and fashion style. Because of the quality, it is used as adorn in work

22、place and banquet. In these situations, it shows the love in its owners heart.l Tiffany Heart is very popular in China market as young Chinese get richer. For their education and taste, they prefer to Tiffany Heart as their gift for their spouse. As a result of it, the sales volume of Tiffany Heart

23、is expected to increase in the next few years.Service introductionTo increase Tiffanys market share in China, efforts has been made to encourage Chinese customers purchase through attentive service. The service includes three parts. The first is giving the staff in branch stores more training. The s

24、econd is Hot line service. In addition, as many people in China buy Tiffanys products, some after sale service, another part of our service, has been made to retain the customers. Therefore, Tiffanys market share grows rapidly. Professional trainingThe first part is giving the staff in branch stores

25、 some necessary training. As a result of it, the customers get the impression that our companys service is for ladies and gentlemen.l Etiquette training is prepared for the staff in branch stores. After several months training every year, the staff becomes more patient and friendly. Their smile and

26、greeting makes guests feel welcomed. With good memory and elegant jewelry, the customers are more royalty to Tiffany branch.l The staff gets some other professional training every year. When Chinese customers go shopping, they get much useful information from the salesclerks. Such as what kind of je

27、welry is suit for them and how much the jewelry is. Without professional training, the staff cant answer these questions accurately.Hot line serviceHot line service to the customers is another important service. On the phone, the customers get useful information about our companys product. Some cust

28、omers dont want to buy jewelry, but the information on the phone interests them and retains them. Besides, the service is convenient to the customers in the cities with no Tiffany branch stores.After-sale serviceThe third part is providing after-sale service. To improve the reputation of our company

29、, Tiffany offers after-sale service which is really a potent measure of retaining consumers from other brands.l Cleaning service is very important for the customers. As people always take the jewelry with them, it is common that the rings and necklaces become dirty and stained. Through clearing serv

30、ice, Tiffanys branch is known by more customers and more customers are retained to our company. l Maintenance is another necessary service for the customers. With repair and maintenance, the company gets demand of the customers and the market trends and the data from customers is useful for our impr

31、ovement of our product. In a word, the service is a quality assurance.Market AnalysisCompany AnalysisS.W.O.TAccording to Official Report of the World Luxury Association 2011 Blue Book, jewels account for the largest proportion of luxury purchases (2.76 billion US dollars) in the Chinese market, whic

32、h witnesses an upward trend of investment made by Chinese consumers. The fact that China has become the worlds second-largest luxury consumption power has spurred the well-known jewelry brands, such as Tiffany, to battle for market shares in China. Overall, this marketing plan is designed to examine

33、 the expansion of Tiffany in China.Strengthl With a powerful brand, rich history, high reputation and excellent service, Tiffany is one of the worlds most extravagant luxury giants.l Tiffany takes full account of the product diversity and provides the customers with refined craftwork of unique style

34、 in TIFFANY BLUE BOX® and the color TIFFANY BLUE®. According to the information collected on the official website, Tiffany is a jeweler and retailer whose principal merchandise provision is fine jewelry. It also sells timepieces, sterling silver goods (other than jewelry), china, crystal,

35、stationery, fragrances, personal accessories and leather goods. Tiffanys products are not limited to fine jewelry, but also providing timepieces, sterling silver goods, which attracts a various consumers.l Tiffany is a global corporation which also runs stores in China (14), Hong Kong (8), Taiwan (6

36、), and Macau (2). Therefore, the company is gaining a certain market share in China.Weaknessl The company is global, but has a presence in relatively few cities in mainland China. The distribution channels of the company are mainly built within the major cities, like Beijing and Shanghai.l Some pote

37、ntial consumers do not know the existing stores; not to mention the newly-opened stores. Therefore, the brand recognition or brand identity needs broadening.l Tiffany is not given much publicity in China. Seniors with the strong purchasing appetite and disposable incomes are not familiar with the br

38、and.Opportunityl Chinese luxury market is growing fast, leading to the booming jewelry demand in China. China has become the second-largest luxury purchasing power in the world.l The middle-west cities (Chengdu, Changsha, Wuhan, Kunming and so forth) have developed rapidly during the last decade and

39、 the economic growth there continues to speed up. The phenomenon indicates the potential markets.l The younger consumers, born in the 1980s, are gradually becoming the main buying force in Chinese market. They pursue fashion and brand and they are more willing to embrace western cultures and product

40、s.Threatl Tariffs, consumption taxes and value-added taxes are set on the imported luxury goods, which also include transportation and distribution costs. The store prices therefore are higher than prices abroad or online, at which the smart Chinese investors are more willing to buy Tiffany. The new

41、 opening stores are likely to face a colder market.l The market and consumption environment in China is changeable and complicated and characteristics of consumption differ in various regions of such a large country.l The company faces challenges from global and local competitors. For example, Chow

42、Tai Fook Jewelry Co., the Chinese Luxury Super brand, leads the first place of annual jewel market shares in mainland and Hong Kong. Tiffany cannot afford to ignore the challenges from local business.Customer AnalysisAs a luxury brand in China, Tiffany mainly has three groups of people consuming its

43、 items- people with wealth, people with high income, and white- collars.People with wealth mainly refer to the entrepreneurs and the high-ranked administrative staff in government offices. In most cases, they are over 40, male, living in well-developed cities such Beijing, Shanghai, Guangzhou and Sh

44、enzhen. This group of people usually has a number of social activities to attend. When they socialize, they need something to embody their success, power and social status, which, to some extent, helping them meet more wealthy people because people tend to make friends with those who are of the same

45、 social status. Besides, this group of people usually has a happy family, and as husbands, they are willing to consume jewelries for their wives. Furthermore, within the strong economy ability, they consume expensive items in a quick way.People with high income are those celebrities, businessmen or

46、businesswomen, and entrepreneurs. The difference between them and the first group of people is that all of them are relatively young and they have just become rich. Their ages range from 25 to 40. The reason why they buy luxury items is that they need something to prove that they have become rich an

47、d successful. Meanwhile, wearing luxury brands （famous western brands）might help them get involved in upper- class or make more upper- class friends. Also, they make consuming decisions in a relatively short time.For the third group of people- white collars, they are mostly female aged from 25 to 40

48、 who have relatively low consuming capacity compared to the other two groups. However, they are fashion followers, as luxury items are also a symbol of fashion, they are willing to save money in other aspects in order to buy the luxuries items. In this way, they cannot make a quick decision.The tren

49、d of buying luxury brands in China is that more and more people especially young people will accept the brands and be willing to buy them due to the consumption culture- “Mianzi consumption” which refers that Chinese people usually prefer to buy some luxury items to show off rather than buy practica

50、l ones. In addition, with the standard of living improving, people's consuming capacity is also getting higher. The market of luxury goods in China will definitely be expanded.Competitor AnalysisAccording to Official Report of the World Luxury Association 2011 Blue Book, the fact that China has

51、become the worlds second-largest luxury consumption power has spurred the well-known jewelry brands, such as Bvlgary, Cartier and other famous jewelers to battle for market shares in China. In addition, Chinese brands, such as Chow Tai Fook Jewelry Co, are also trying their best to expand their mark

52、et share.CartierCartiers Strategiesl Cartier pays attention to the second-tier cities to expand its Chinese market share. As Cartier has 32 stores in large cities, they plan to expand their China market in second-tier cities. In 4 to 5 years, Cartier plans to double its stores in China.l Cartiers de

53、signers provided more Chinese style jewelry for China, such as Le Baiser du Dragon. The jewelry is very popular with Chinese customers and its brand image is enhanced.l Cartier, the world-famous jewelry brand, targets the women consumers as more Chinese women have the ability to afford the jewelry.C

54、artiers Strengthl With a powerful brand, rich history and excellent service, Cartier has a high reputation among the middle class in China cities.l Cartier entered the Chinese market many years ago and they have built a sophisticated marketing system. As one of the first jewelry companies entering t

55、he China market, Cartier has built more than 30 stores in China. With a long history in China, Cartier has the confidence to face challenges from Tiffany and other new comers.Cartiers weaknessl Most of Cartiers stores choose to cooperate with sales agents in mainland China. The distribution channels

56、 of the company restrict the development of these companies.BvlgaryBvlgarys Strategiesl To attract more Chinese consumers, Bvlgary and other brands provide low price for consumers in China. According a CEO in Far East region, Bvlgary jewelry in China costs 10% higher than Bvlgary jewelry in Hong Kon

57、g.l Bvlgary also provides new jewelry to Chinese customers. Every year, Chinese customers share the new-style Bvlgary jewelry with global customers.l Bvlgary also gets its stores into its world marketing system. In this way, Chinese customers enjoy the first-class service in the world.Bvlgarys Stren

58、gthl Bvlgarys low price attracts many consumers in second-tier cities as they prefer to the price rather than the qualities of the products.l As the new style of Bvlgary jewelry, its reputation is known among Chinese customers. As some Chinese customers value European jewelry, they prefer to Bvlgary

59、 jewelry.Bvlgarys weaknessl For high end market, low price may make the consumers worry about the quality of the product. As the jewelry is a symbol of wealth for them, they seldom care about the price.Chow Tai FookChow Tai Fook Jewelry Co.s strategyl Chow Tai Fook Jewelry Co targets special consumers. As a Chinese bra