Using 10 key components, Brand Strength measures the ability of the brand to create loyalty and, therefore, to keep generating demand and profit into the future. This is conducted with competitive benchmarks in mind, and the competitive strengths and weaknesses of Tiffany & Co. are used to derive a score and eventually, a Brand Discount Rate.
We discovered through further research that the first 4 factors: Clarity, Commitment, Responsiveness, and Protection, are internal determination factors of Brand Strength. On the other hand, the remaining 6 factors are external determination factors.
Tiffany & Co. is clear on what she stands for in terms of values, positioning and propositions. From the brand’s marketing and branding strategies, it is evident that the brand knows what kind of image they want to portray to consumers. The company’s advertising and branding material all celebrate special moments in life, especially love. And to further promote the idea of love, the company recently launched an interactive website called “What Makes True Love”, to encourage public participation and engagement to share their special moments. However, in the Singapore landscape, it seems that Tiffany & Co’s true values and promise is not communicated as effectively as it is internationally. Singaporeans generally do not understand that the brand is about true love. Instead, most Singaporeans view Tiffany & Co. as a luxury jewellery brand suitable for special occasions, but do not understand what the brand is really about.
There is a strong commitment internally to the brand as shown by its long history and branding strategies which it has kept consistent throughout the years. There is little or no major structural changes in the organization and its beliefs about the brand. Over the years, the brand has shown a steady image, which they continually try to improve upon.
Tiffany & Co. was given a lower score for this aspect, simply because it still lags behind in terms of its ability to respond to market changes and trends. For example, there has been many competitors sprouting up in Singapore, but in terms of reactions such as “Go on the Offensive” or “Go on the Defensive”, Tiffany & Co. has been seen to “Do Nothing”. In addition, its adoption of technology in Singapore is still considered slow compared to its international counterparts. Tiffany & Co. Singapore has yet to adopt an e-store strategy and has remained purely brick-and-mortar for purchases. Furthermore, although Tiffany & Co. has a broad product range; the brand does not regularly come up with new products to suit market changes and challenges. The brand in Singapore has a limited product range, and marketing materials may not be suited for the local culture.
Tiffany & Co has many patented products – for example, the colour Robin Egg Blue and their “Return to Tiffany” locks. These help customers easily recognize the brand, as they are now trademarks of Tiffany. The brand name also has legal protection. Tiffany has also copyrighted designs that renowned designers have done for them. However, we recognise that there are counterfeit goods and imitations all around, but this is not within the control of the brand as they have already taken extensive steps to protect themselves legally in all aspects. Therefore, we still assign a perfect ten score to this component.
Tiffany & Co.’s pricing and product quality match; and these factors are relevant to their target segments. The brand provides a relatively good fit with their identified consumers’ needs, desires, and decision criterias. From Assignment 1, it is stated that consumers see Tiffany as a credible company that is consistent in providing exemplary service and high-quality products at a reasonable price.
Tiffany & Co. is soundly based on an internal truth and capability due to its strong heritage and legacy. In addition, Tiffany & Co. has enjoyed global popularity and is able to deliver to customers’ expectations.
Tiffany’s unique Robin Blue packaging alone allows it to be differentiated from its competitors. Tiffany banks on the intangibles (brand name, packaging, service, concept of their advertising) in order to differentiate themselves.
Marketing strategies are generally quite similar throughout all touch points. Tiffany & Co. Singapore widely uses social media (e.g. Facebook, Twitter, etc) to interact with its consumers and has a strong focus on their “What Makes True Love” campaign. However, based on first-hand experience, we discovered that the store experience in Singapore does not resonate with its flagship New York store. It seems that the store in Singapore (in terms of environment and variety of products) is very different from its stores in New York and Japan. This is probably an area that Tiffany & Co. Singapore has to work on.
While Tiffany & Co. is active on its social media platforms, it is still not talked about widely in Singapore. The brand only comes to mind if big news of them occur, or only on various celebratory occasions (e.g. weddings and birthdays). In terms of positive opinions, we found that most Singaporeans think that Tiffany & Co. products are expensive in Singapore, and would rather go overseas to acquire them at a cheaper price.
The brand is generally recognised by its consumers; but with regard to in-depth knowledge and understanding of its distinctive qualities and characteristics, it seems that Tiffany & Co. falls short in this aspect. From our findings in Assignment 2(b), Tiffany & Co. seems to only be known because of its brand but not its brand values. This is especially true for male Gift-Givers who do not resonate with the brand values.
From the 10 components above, our brand strength is determined to be 78 and therefore, we will use a discount rate of 6.8480% in our brand valuation.