Case Study focused on iconic luxury brand, Tiffany, detailing the relevance of its brand identity and what it has come to represent. Introduced social media initiatives to create awareness, engage audiences and build community. •The study also considered financial instruments for hedging overall risk under changing economic conditions.

1. BRAND CASE STUDY
LIZANNE ROBERTS I HARVARD UNIVERSITY

2. The Tiffany name, the company image and the robins-egg blue box are all elements that are rich representations of
the Tiffany & Co. brand. The heritage of Tiffany & Co. along with the quality and consistency in which they have so
flawlessly delivered beautifully-designed and hand-crafted jewelry, is what customers have come to associate with their
brand, offering the highest standard of excellence in the industry.
The Tiffany brand is a simple yet memorable visual identity
that extends into the brand experience. Their brand
embodies unparralled oppulance, one of a kind offerings
of consummate artistry, and emotional experiences that
are captivating and unforgettable. Tiffany & Co. is an
aspirational luxury brand that symbolizes dreams of
intimacy, mystery and sensuality and “inspires love”
(Eti, O. & DeBoer). It’s noteworthy brand strength is based
solely on the perceptions of its customers. Not only through
the masterful craftsmanship of their offerings but also in
taping into the sensory experiences and emotions of their
customers through storytelling, visual imagery and the idea
that love deserves to be celebrated (e.g. through the art of
gift-giving). “Tiffany understood the importance of owning
a brand that connects to consumers’ emotions, thence
effectively creating a virtual environment highly charged
of emotional sensibilities —based entirely on the concept
of love and romance”. (Yin)
Their commitment to artistry, craftsmanship, originality
and sophistication deeply align and are communicated
in their brand values. And their mission to being the
“world’s most respected retailer” (Kowalski) mixed with
truly exceptional customer service standards have also
embodied the foundation of their brand and contributed
to their success and a very devoted clientele.
The Blue Box
The blue box has become the iconic face of the Tiffany
brand, a truly powerful part of their brand identity and
an essential element of the brand experience. It is the
most widely recognized packaging in the world and
this magical box is symbolic of the perfection it holds
inside (Iconic Brands and Brillliant Experiences, n.p.)
Its proprietary robins-egg blue (the most protected color
in branding), its ownable signature white satin ribbon, its
trademarked blue-coated paper packaging and the Tiffany
name—elevate the brand to premium luxury status. The
blue box embodies dreams of exclusivity and prestige and
every detail of it’s contents do (and must continue) to align
with the exquisitely hand-crafted, artisan-quality jewelry
that it promises.
Any change to this highly coveted box, which can only
be secured with a purchase, would degrade the brand in
the minds of its customers and it would immediately lose
its value. In a market that is highly volatile and incredibly
competitive, Tiffany has been able to successfully leverage
the elegance, sophistication, authenticity and brand
mystique that its packaging represents.
What Is The Brand?
TIFFANY BRAND CASE STUDY I LIZANNE ROBERTS

3. Social Media Initiative Proposals
#WhatsYourTiffanyBlue?
Is it the crystal blue waters off the coast of Greece? The gorgeous
blue mosaic tiles of Morocco? The sensual blue doors of Monmartre?
Inspiring and captivating emotional experiences of the Tiffany
blue, this initiative would inspire users to ‘dare to dream’, take
an escape and share aspirational ephemera that taps into the
personal “sensory experiences” of the Tiffany blue, weaving
personal experiences into the brand narrative. This initiative
would promote brand engagement and foster a sense of brand
awareness and ownership via user-generated content. By lever-
aging the hashtag, users are connected to larger communities
which creates increased exposure to the brand. Engaging with
consumers in a truly authentic and personal way promotes
brand allegiance and loyalty, which ultimately impacts sales
and market share.
What was your first Tiffany?
Invite Tiffany’s top 50 hand-picked celebrity influencers to share
their “First Tiffany”.
Empowering top celebrity influencers to take on a central role
in growing the brand—as advocates, storytellers, and co-innova-
tors in telling their stories. Humanizing the brand by connecting
on a personal level leads to a deeper level of engagement and
brand loyalty. The success of this campaign is attributed to
engaging digital influencers, whom engage their own audience,
thus creating an exponential network of conversation and
building a bigger and stronger brand community.
Partner with UStream
Bring Tiffany to life in real time.
Partner with UStream to broadcast the Tiffany Fashion
Show at Paris Fashion Week. Previously accessible only to the
media and the socially elite, this would generate instant buzz,
encourage more connection to the brand and allow social
engagement in real time, opening up access up to a powerful
and growing demographic.
“My first Tiffany piece was in high
school. I had the necklace with the
heart with my initials engraved – I’m
a Southern girl!” – REESE WITHERSOON
INITIATIVE #1
INITIATIVE #2
INITIATIVE #3
Above: Santorini, Greece.
Retrieved from: http://hotelsandstyle.com/
hotel/grace-santorini/
Left: Location unknown. Retrieved from:
http://balancingthedream.blogspot.
com/2011/08/power-of-color.html
Reese Witherspoon quote: Retrieved from http://www.style.com/culture/
parties/2015/tiffany-and-co-document-journal-new-york-parties-041615
Driving brand engagement:

4. According to Tiffany’s 2014 Annual Report, worldwide net
sales in Asia-Pacific represented 24%, Europe 12% and
Japan 13% (Tiffany & Co. 2014 Annual Report, pg. 14-15).
To circumvent the sensitivity of sales based on changing
economic conditions, the firm might hedge their overall
operating risk with the use of two possible derivative
financial instruments:
Foreign Exchange Forward Contracts or
Put Options:
To minimize foreign currency exchange rate exposures
(particularly in the Japanese Yen, Euro and British Pound),
a forward contract would put forth an agreement to
exchange a given amount of currency at a predetermined
fixed rate — on a specified date, customized in terms of
amounts and maturities. For example, since Tiffany’s
exchange in the Japanese market is denominated in
Yen, they face the uncertainty of the dollar equivalent cash
flow if exchange rates fluctuate. A forward contract agree-
ment can be used as an effective risk management tool to
remove this uncertainty (of exchange rate fluctuations) that
are used when calculating financial performance and
protect against weakening local currencies. Essentially due
to the fact that there is an obligation to deliver the currency
at the maturity date under the agreed upon terms of
pricing. (Investopedia, n.p.)
Alternatively, if Tiffany’s expectation is that the U.S.
dollar may continue to strengthen, then they may consider
choosing to exercise a Foreign Exchange Put Option which
would allow for the right (but not the obligation) to sell a given
amount within a specified time. In this instance, Tiffany
would have estimated or assumed that the Japanese Yen
would fall below the terms stated before the expiration date.
For example, if the Japanese Yen falls (as the U.S. dollar
strengthens), a Put Option would gain in value and thus
be a great hedging strategy for Tiffany.
As we are currently seeing a strengthening in the U.S.
dollar against foreign currencies, the translation of these
foreign currency-denominated transactions could potentially
decrease consolidated net sales and profitability. “Certain-
ly these effects are difficult to predict, anyone or more of
them could lower the company’s revenues, increase its costs,
reduce its earnings and disrupt its business” (Tiffany & Co.
2014 Annual Report, pg. 24-25). And while these options
offer some level of risk involved, they do mitigate a portion
of exposure to overall operating risk.
Hedging Risk
TIFFANY BRAND CASE STUDY I LIZANNE ROBERTS
References
Eti, O., DeBoer, L. (2012). The greatest love stories between consumers
and brands, pg 18. Retrieved from: http://lup.lub.lu.se/luur/
download?func=downloadFile&recordOId=2796756&file-
OId=2796764
Iconic Brands and Brilliant Experiences, n.p. (2014).
Retrieved from: http://www.brilliantlens.com/be-brilliant-
blog/2014/10/07/tiffany-co
Investopedia, n.p. (2015). Forward contract. Retrieved from:
http://www.investopedia.com/terms/f/forwardcontract.asp
Kowalski, M. (2010). Corporate Responsibility Report, pg3.
Retrieved from: http://www.tiffany.com/csr/aboutreport/
2010_CSR%20Report_FULL_052912.pdf
Tiffany & Company 2014 Annual Report, n.p. (2014). Retrieved
from: http://www.shareholder.com/visitors/DynamicDoc/
document.cfm?DocumentID=3163&CompanyID=TIF&zid=
cce484aa
Yin, Z., Ling, S., Yie, Z. (2012). Love Knows No Boundaries.
Retrieved from: https://brandtiffanyandco.wordpress.com/
love-knows-no-boundaries/
Image above: Retrieved from http://www.tiffany.com