Was the strategy of product line expansion and the related pricing strategy by Tiffany & Co. appropriate given its luxury positioning? Justify your answer. 
 

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The leadership changes at Tiffany & Co., the jewellery line known for its signature blue boxes, are symbolic of the struggles and challenges that many luxury brands face today. Those struggles led to the firing of one CEO and the hiring of another in 2017. Since then, the brand has shown healthy increases in annual revenues and launched a new, modern jewellery collection.1 Luxury markets are defined largely by their prices, which are set high specifically to signal their exclusivity and high quality. But high prices limit market growth because only the "lucky few" can afford them. Furthermore, even wealthy shoppers may grow price conscious; overall luxury goods sales recently dropped for the first time since 2009. Several years back, in an attempt to reach more customers, Tiffany expanded its product lines, seeking to attract some customers who could afford to spend a few hundred dollars, but not thousands, on a beautiful trinket or gift for themselves or a loved one. The leadership changes at Tiffany & Co., the jewellery line known for its signature blue boxes, are symbolic of the struggles and challenges that many luxury brands face today. Those struggles led to the firing of one CEO and the hiring of another in 2017. Since then, the brand has shown healthy increases in annual revenues and launched a new, modern jewellery collection.1 Luxury markets are defined largely by their prices, which are set high specifically to signal their exclusivity and high quality. But high prices limit market growth because only the "lucky few" can afford them. Furthermore, even wealthy shoppers may grow price conscious; overall luxury goods sales recently dropped for the first time since 2009. Several years back, in an attempt to reach more customers, Tiffany expanded its product lines, seeking to attract some customers who could afford to spend a few hundred dollars, but not thousands, on a beautiful trinket or gift for themselves or a loved one.