1. Article: WSJ- “Diamond Industry Makeover Sends Fifth Avenue to Africa”
Chapter 6: Product
Article: WSJ- “Diamond Industry
Makeover
Sends Fifth Avenue to Africa”
Problem Solving by Jamilah Bumpers

2. Overview of Article
Entering into new market to solidify the supply of their product
Capitalize on industry shift , luxury goods boom
CEO feared surging diamond demand hinder stock in its expanding retail network.
2002- invested in mine operators- began opening cutting and polishing plants in Canada, Belgium, South Africa, and Vietnam
Partnered with Botswana , worlds largest producer of gem quality diamonds in 1980’s
Opened a new factory in Gaborone, in
exchanger fort training locals to polish
diamonds, eventually gaining the right to
buy rough diamonds
New Arena- In house unit, Laurel Diamonds, 14% of company’s
workforce, cuts and polishes own diamonds
Supplies more than 50% of Tiffany’s diamonds this year

3. History and Brand of Tiffany&CO
Founded in 1837, New York stationery and “fancy goods” emporium
Since the opening marked their territory in the luxury arena, opened every article being marked with a non- negotiable selling price
Seller of tangible goods: Retailer Specializing in selling fine jewelry, Brand extension: luxury items, ie. timepieces, silverware, china, stationery
Publicly  Traded Company: TIF
Strong Brand Equity

4. Sample needs Features and Benefits
Product
Targeted
Segment
Need
Feature
Benefit
Luxury goods
Jewelry, timepieces,
tationary
Status –Conscious Customers
Engagement/Wedding Rings
Expansive inventory of diamond,gem, gold, silver, and platinum jewelry
Globally recognized brand,

5. Features and Benefits
Status conscious-Reputation as a glamorous jeweler for the wealthy, powerful and famous for over 150 years
Expansive inventory of diamond, gem, silver, gold and platinum jewelry.
Gifts for every occasion starting at under $100.
Items ship in signature Tiffany Blue box with optional personalized message.
Featured collections by Frank Gehry,
Paloma Picasso, Elsa Peretti and others.
Packaging : Items packaged in the
company's trademarked Tiffany Blue Box.

6. Problem
Global Market for diamond jewelry expected to fall 16% this year
Engagement Rings are Priced 10% lower than last year
Polishing plant in Botswana =weak link
Polishing Streaks
Angry Botswana workers
Staged 2-day sit-in, complaints to H.R.
Feelings of “clash of cultures”
“Prison-like” work environment
Bullied by production manager

7. Solution/Recommendation
Uphold agreement with govt.
Take on a philanthropic role similar to Simmons Jewlry Line
Diamond Empowerment Fund (DEF) is to raise money for the development and empowerment
of the people and communities in
Africa where diamonds are a natural
resource. The Diamond Empowerment
Fund is non-profit international organization
established by individuals and businesses
in the diamond industry and others who
are committed to empowerment of Africa.
Boost employee moral in Botswana plant

8. Solution/Recommendations
Current merchandise mix include key chains, selling less than the typical Tiffany price tag.
Capitalize on its lack of mining expertise in Botswana, and their large status- conscious customer base
Create a new product line
Take a Philanthropic stance on the good
will of opening a factory in Botswana,
employing local workers
Specifically for the diamonds that are
not of 100% perfect
Give back a portion of proceeds from this
new product line to rebuild town, employ
more locals
Branding or Co-Branding,Create
Botswana/Tiffany&CO branded boxes

9. Article: WSJ- “Diamond Industry Makeover Sends Fifth Avenue to Africa”
Chapter 8: Place
Article: WSJ- “Diamond Industry
Makeover
Sends Fifth Avenue to Africa”
Problem Solving by Jamilah Bumpers

10. Distribution
New Arena- In house unit, Laurel Diamonds, 14% of company’s workforce, cuts and polishes own diamonds
Entering into new market to solidify the supply of their product
Supplies more than 50% of Tiffany’s diamonds this year
180 Tiffany & Co. stores and boutiques
worldwide,
business-to-business accounts
and catalogs.

11. Major Links in the Value Chain
During the planning process, marketers analyze how value is added at each connection in the value chain.

12. Channel Levels Illustrated

13. Influences on Channel Strategy
8-17