Case Presentation

on

Group:50
1

Backgrou
nd

Hallmark Cards at a
Glance
Message of congratulations and good cheer
have been exchanged for centuries. The
example of Hallmark greeting card systems.

The first greeting cards were Christmas

cards, invented in 1843 by a British
businessman too busy to write his
traditional Christmas letter.

1870- Expensive Christmas card were quite

popular among wealthy Americans.

At a Glance

Joyce C. Hall and Jacob Sapirstein are

regarded as the architects of the modern
day greeting card industry.

Hallmark publish greeting cards in more

than 30 languages and distributes them in
more than 30 countries.

The company produces 11,000 new card

designs and 8,000 reused designs each
year.

At a Glance

In addition, Hallmark markets thousands of

related items such as gift wrap, party goods,
Christmas ornaments, jigsaw puzzles ,
ribbons and writing paper.

Hallmark-branded products are also

available at an additional 39000 mass
merchandise outlets.

Hallmark Traditional Products

and Brands

The company markets greeting cards under

a number of different brand names ,
including:
Ambassador
Warm Wishes
Shoebox Greetings
Mahogany
Hallmark en Espanol
The tree of life
Hallmark Business Expressions

Hallmark online
1996Hallmark

launched its website

and initially the site contained corporate

information and soon expanded to allow
consumers to send their own e-cards (Some
for free & some for charge)
In Hallmark Stores.mht

1999Hallmark launched its consumer

website & visitors can choose from a
collection of about 600 free e-cards, which
are unique to the website.

Hallmark online
Hallmark

reported its 1999 web

traffic increased 200 percent, with
web sales jumping up 600 percent.
Free E-Cards, Photo Cards, Greeting
Cards, Cards with Sound, Invitatio
ns, Announcements and Business Gree
tings from Hallmark_com.mht

The Marketing
Problem
Nationwide, continuous fall of
dedicated card store.

Alienating risk with the

owners/operators of the Hallmark
Golden Crown shop

Long

run efficiency of web strategy.

Question:
1
Why do so many
consumers continue
to buy and send
greeting cards instead
of writing a letter,
sending an email, or
making a phone call?
Discuss your answer
in terms of the means
end framework.

Answer

Now a days consumer are

more
frequently buy greeting cards instead of
writing a letter, sending an e-mail or
making a phone call, because all these
thinks are time consuming and less
attractive.

Answer
Means-end frame
Brand

Hallmark
Card

Functional
consequence
Attributes
s
Greet
for a
Express
special
ing
occasio
emotion
n

Unique
design

Recogn
ition,
Ackno
wledge

Psychological
consequence
s

Values

Makes
friends &
family
happy

Happines
s

Quality of
choice

Social
recognitio
n

Question:
02
The typical decision making
process for buying a Hallmark
card is likely to vary in different
situation. Think about three
different occasion for buying a
card: a birthday, a graduation
and a wedding. How would
consumer knowledge and
involvement vary across these
situation ? Discuss how problem
recognition, search, and
evaluation might differ. What
types or level of decision making
would you expect in each
situation?

Answer
Decision making process
Problem Recognition
Search for alternative
solutions
Evaluation of
Alternatives
Purchase
Post purchase use reevaluation of chosen
alternative

Problem recognition
Wedding

card
Uncommon design
Think about price
Self-esteem
Where to search

Problem recognition
Birthday

card

Finding appropriate
message .
Card design according
to age.
Where to search

Problem recognition
Graduation

card

Formal or informal
Message
Card design
Where to search

Search
Looking

for availability
that what we want.
Go to near hall mark
shops.
For e-cards search
website.
Can ask for customized
cards.

Evolution
Evaluate

according to
choice criterion and
choice alternatives.
Wedding cards
Design
price
Brands

Birthday card
Message
Design

Evolution
Graduating cards
Message
Design
Color

Involvement level
Birthday

cards

Depends on the relationship.

Graduation

cards

depends on formal and informal

relationship.
Wedding

cards

Level of involvement is high.

Question:
03
Understanding how and
why consumers make
store choices (i.e. buying
a card in a Wal-Mart
rather than in a
Hallmark Gold crown
store) is particularly
important to Hallmark.
Discuss how store choice
interacts with and
influences choice of
Hallmark products and
brands.

Differences in Store Offer:

Answer

Hallmarks marketing strategy: putting

its products where consumers can easily
access them and make purchase
decisions.

1.

Independently owned specialty store: 8000

Mass Merchandise Outlets: 39000

2.

But Specialty store exclusively reserved:

Major Brands, special products and topof-the-line cards


1.

1.
2.

Answer
may
Preferring specialty stores
effect:
Fail to use the opportunity for mass scale
sales
Preferring other Outlet may effect:
Specialty Store owners
Overall market: may give competitors an
opportunity to grab the unreachable
market.

Answer
Interact and Influence Hallmark
Products:

Only the Brands Ambassador is available to the

mass merchandiser and other stores

Other brands: Shoebox and niche segmented

products: Mahogany, Hallmark en Espanol & Tree
of Life will not able to attract its target customers.

So these special brands may end up at declining

stage if market rate keep falling like this

Ultimately effect the profitability in the long run

Question:
04
Do you think Hallmark
should modify its instore distribution
strategy? What about its
web strategy? What
assumptions do you
make about consumer
decision making that
lead you to this
recommendation?

Consumer Decision
Making

Changing buying behavior:

Distribution of greeting

cards to mass merchandisers

& other location

Growing popularity of Internet
So customers found it easier to buy cards at store near
to them or send an e-mail.

In Store Distribution
Strategy
Problem
Changing shopping behavior made mass
merchandisers & other location preferred
over independently owned specialty stores
Effect
Market share for specialty stores decreased
32% by late 90s
But mass merchandisers keep the sales at a
growing rate

In Store Distribution
Strategy

Solution
1.

2.

Rather keep 75% of top-of-the-line cards

restricted in the specialty stores, let
merchandiser shops sell some of them
Make the brands for Niches Target Market
available in those areas where majority fall
under that market

In Store Distribution
Strategy

3.

Solve the aliening risk with

owner/operator of the Golden Crown
Store
Offer Personalized Card
Membership facilities
Restrict selling related accessories items
Offer other products for Hallmark: Crayola
crayons, plastic model kits, special
Hallmark Entertainment-exclusively
available in these stores

Web Strategy

So far working well with increasing web

traffic of 400%
But has to up to date time to time

Recommendation:
1.
2.

Special Offer for Web Members

Offer special Application for social
Networking Sites to continue with the
popularity base with the new generation

Question:
05
Marketing research
estimates men account for
only 15 to 20 percents of
greeting cards purchases
in the US. Furthermore
young consumers and
those over 50 dont buy as
many as those in middle
age. Why do you think this
is so? What can Hallmark
do to reach these
segments?

Young Consumers (Men)

Young consumers are not interested to buy
cards because:

They often have difficulty expressing their feelings.

They dont want flowery, girly cards because of that

they are not highly attracted to card designs, colors.

Less special offer.

They

dont seem to spend a long time reading

cards.

Young Consumers
(Men)
Marketing Strategy
Focus on more

attracted to
cards with embellishments.

Focus on shorter
Focus on card

messages.

design which
reflects their lifestyle and
express their feelings, but not
in a girlie way.

Young Consumers
(Men)

Marketing Strategy
Dont

provide critical word-of-mouth

advertising .

Focus

on cheap price .

Focus

on attractive advertisement.

Using

facebook to promote businessblog.

Middle Age Consumers

(Over
50)
Middle Age consumers are not interested to
buy cards because:

Language style, layout, word pictures and imagery often

different .

Their mind becomes less responsive to information that is

emotionally neutral, at least in the early stages of reacting to
an information-set.

They don't want unbidden guidance. much advertising is:

unbidden advice.

Midlife and older mind is more adept at ferreting out deeper

metaphorical and psychological meanings.

Middle Age

Consumers
(Over
50)
Marketing Strategy
Design cards

to focus on their language style,

layout, word pictures and imagery .

Reach out

and connect with new friends.

Focus

on connect across people, time, distance,

creating a memory that can last a lifetime.

Focus

on to create a memory that

change someone's life.

Middle Age

Consumers (Over 50)

Marketing Strategy
Focus

on cheap price.

Focus

on to inspire, encourage and

congratulate them.

Create
Focus

advertisement which attract them.

on to create a special romantic moment

Thank you