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...