Tiffany & Co.: Protecting Brand Image from Tarnish

Tiffany & Co.: Protecting Brand Image from Tarnish

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In 2004, Mike Kowalski, chief executive officer of Tiffany & Co., faced a major decision for the future of the Tiffany brand and franchise. After three rounds of price hikes, the highly profitable silver jewelry line, “Return to Tiffany,” witnessed price increases of 200%, which finally resulted in a reduction in the demand for Tiffany silver by the upper-middle-class consumer. The popular silver line had increased sales as well as equity for the shareholders, but at the same time, it was eroding the brand in the eyes of the core luxury consumer. Tiffany is left with the juxtaposition between increased profits and a tarnished brand image.

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