Tiffany has established themselves as not only the leader in the fine jewelry market, but also as an example of the company that is able to increase the value of their products through effective marketing and attention to details. Tiffany’s attract a specific type of target market, which is people who possess certain characteristics. The most important quality of a successful salesperson is having a great capacity of product knowledge. Customers are looking for a reliable person who is able to answer all of their questions.
Salespeople should always be aware of the advantages and disadvantages of competing brands, as well as their own. Tiffany’s target market can be divided into five common market segments. These five segments are demographic, geographic, psychographic, benefit, and usage-rate segmentation. Tiffany’s targets white collar adult males and females of all nationalities and religions with a flexible income to spend on luxury items. The social classes between these various groups of women range from middle to upper-middle class to upper-upper class.
Women are the primary users of the product, but the company also services other businesses. Their products are priced from affordable to expensive. Many Tiffany products are purchased to symbolize a special moment in an adult life like an engagement, wedding, anniversary, birthday, or retirement. The psychographic segmentation is represented by the customers that can appreciate and desire Tiffany products. Even the simple Tiffany Blue Box, which contains the purchase, is a symbol of the classic look.
The benefit sought by Tiffany customers is a product that gives the consumer enduring value. A piece with the Tiffany name symbolizes exceptional quality and style that will endure the lifetime. Coach has many advantages the company has over Tiffany. Just like Tiffany’s, Coach also is known for the high quality product which makes the product basically sell itself. Both companies share many of the same strengths for example, they both have a strong direct selling strategy. They know what audience they want to attract and they both target the same kind of customer.
Even though Tiffany’s is more known for their jewelry and Coach for their handbags, they both have broad offerings. Unlike Tiffany’s, Coach has more opportunities for men products such as accessories, shoes, and fragrances. Also unlike Tiffany’s, Coach has stronger online sales and Coach does not decline cash flows. If the company just works harder on what Tiffany’s needs improvement in, Coach can actually become top of the food chain. With over 730 store locations, Coach is continuously growing with high demand.
Coach earnings rose also 3% as stronger international sales helped to maintain margins. Sales in China, which the company has called its largest geographic growth opportunity, climbed nearly 40%. In the latest period, total North American sales increased 8% to $784 million and the region’s same-store sales were up 5. 5%. International sales also rose 15% to $362 million. Sales were up 1% in Japan, on a constant-currency basis. International sales are a very important aspect for your business and that is a weakness that Tiffany & Co contains.