Download Diamond Empowerment Fund

Chapter 6: Product
Article: WSJ- “Diamond Industry
Makeover
Sends Fifth Avenue to Africa”
Problem Solving by Jamilah Bumpers
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Entering into new market to solidify the supply of their product
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Capitalize on industry shift , luxury goods boom
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CEO feared surging diamond demand hinder stock in its expanding retail network.
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2002- invested in mine operators- began opening cutting and polishing plants in Canada,
Belgium, South Africa, and Vietnam
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Partnered with Botswana , worlds largest producer of gem quality diamonds in 1980’s
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Opened a new factory in Gaborone, in
exchanger fort training locals to polish
diamonds, eventually gaining the right to
buy rough diamonds
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New Arena- In house unit, Laurel Diamonds, 14% of company’s
workforce, cuts and polishes own diamonds
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Supplies more than 50% of Tiffany’s diamonds this year
 Founded in 1837, New York stationery and “fancy
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goods” emporium
Since the opening marked their territory in the luxury
arena, opened every article being marked with a nonnegotiable 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
Product
Targeted
Segment
Need
Feature
Benefit
•Luxury goods
Jewelry,
timepieces,
tationary
•Status –
Conscious
Customers
•Engagement/
Wedding
Rings
•Expansive
Globally
inventory of
recognized
diamond,gem, brand,
gold, silver,
and platinum
jewelry
 Status conscious-Reputation as a glamorous jeweler for
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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.
 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
 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
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 statusconscious 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
Chapter 8: Place
Article: WSJ- “Diamond Industry
Makeover
Sends Fifth Avenue to Africa”
Problem Solving by Jamilah Bumpers
 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, www.tiffany.com,
business-to-business accounts
and catalogs.
During the planning process, marketers analyze how value is added
at each connection in the value chain.
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