Transcript Practicum 4 Presentation

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
1 Gram
Worth in Dollars
$
0.59
20 Grams
$ 11.88
1 Ounce
$ 16.84
1 Pound
$ 269.51
1 Kilo
$ 594.19
Bracelets:
Sterling Silver Infinity Bracelet
Weight = 14.3 grams
Sterling Silver Return to Tiffany with Large
Round Charm Bracelet
Weight = 29.6 grams
Sterling Silver Return to Tiffany
Heart Lock Bracelet
Weight = 22.8 grams
Worth
Price
$8.44
$175
$17.46
$285
$13.45
$150
Worth
Price
$2.83
$225
$5.84
$350
$10.97
$250
Shopping Bag Pendant
Weight = 4.8 grams
Tiffany’s Key Knot Pendant
Weight = 9.9 grams
ID Clip Necklace
Weight = 18.6 grams
Worth
Price
$5.90
$150
$6.49
$275
$5.31
$200
Heart Shaped Return to Tiffany
Weight = 10 grams
Sterling Silver Bar Drop Earrings
Weight = 11 grams
Circle Shape Script Earrings
Weight = 9 grams
Worth
Price
$6.31
$250
$8.85
$125
$11.21
$150
Sterling Silver Heart Ring
Weight = 10.7 grams
Sterling Silver I Love You Band
Weight = 15 grams
Sterling Silver Classic Tiffany
Ring
Weight = 19 grams
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
Price Elasticity Cont.:
● 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 $160
Percentage 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%
% 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
D1
D2
Quantity
Reasons of Purchase:
What We’ve Learned...