CASE STUDY 5 |
EXECUTIVE SUMMARY Since 1910, Hallmark has been providing its customers with quality greeting cards for all manner of special occasions throughout the year. Whether for someone’s birthday or anniversary or for an official holiday like Christmas, Hallmark’s greeting cards are known all over the world for being the perfect card for the perfect moment. However, after more than 100 years in operation, Hallmark is beginning to face a number of market problems. The rapidly advancing field of technology has forever changed the way people interact with the world, and the consumer shopping experience is no exception. The advent of mobile apps, e-cards and the like has impacted Hallmark’s position in the market, resulting in a decrease in store visitations as well as a reduction in overall sales. Hallmark faces a challenge—connect with an aging customer base, through the integration of new technology, in a way that reminds them why Hallmark has been the world’s leading producer of greeting cards for more than 100 years. After conducting the necessary research, Valence has compiled two media plans, including strategies and recommendations, for Hallmark’s 2014 campaign. While it’s true that the United States as a whole is familiar with and has purchased Hallmark greeting cards, the brand’s strongest BDIs and CDIs are contained within two census regions—the Northeast and the Midwest. It is for this reason that Valence has chosen those two regions as the core targets of Hallmark’s campaign. In addition, Valence has designated Hallmark’s primary target audience as women 35-44 and women 55+ for the campaign. These women enjoy spending time at home with their families, are physically active, like to indulge their children and believe that opportunities should be seized when presented. Valence believes that these women’s ideologies align perfectly with Hallmark’s brand message, that is, conveying sentiment to and spending time with loved ones. Valence recommends a combination of traditional and nontraditional media for the 2014 Hallmark campaign. Indices show that primetime television and the Internet would be the most effective media to utilize when advertising to this target audience. Therefore, Valence has developed a campaign that will spin a transmedia narrative, telling a story that can be shown across all chosen media. The campaign will be broadcast with a pulsing schedule; advertising will be heaviest during the months of February, May, June, November and December to coincide with large holidays such as Valentine’s Day and Christmas. The overall goal of the campaign is to generate as much as 85 percent brand awareness and to increase Hallmark’s U.S. market share by five percent. Valence expects the campaign and recommended media plan to reach at least 45 percent of the target audience by year’s end and to have an average frequency of four.
THE CHALLENGE While Hallmark has been one of the worldâ€™s foremost producers of greeting cards and sentimental gifts, the company has been struggling of late. The age of technology has impacted Hallmark in a way that has resulted in a decrease in store visitations as well as overall sales, causing the company to lag behind competitors such as American Greetings. How can Hallmark reconnect with its customers in a way that helps them remember the brandâ€™s value and gets them to purchase more greeting cards?
Hallmark’s overall sales have been declining in recent years. Valence intends to find a way to not only reach Hallmark’s target audience but to increase the company’s sales by four percent.
Sex: Female Age: 35-44, 55+ Interests: • Spending time at home with family • Indulging children • Physical activity and fitness • Taking advantage of opportunities • Buying quality goods Media Used: • Primtime TV • the Internet • Radio
AGE OF TARGET AUDIENCE Hallmark’s core target audience is not the most proficient in the realm of social media; however, they are quite familiar with traditional means of advertising. Valence will have to consider the implications that social media integration could have on Hallmark’s campaign and if the target audience will respond positively to social media activity.
ADVERTISING OBJECTIVE Due to the age of Hallmark as a company, Valence has placed the brand on the border of the maturity and decline stages of the product life cycle. Therefore, it is in Hallmark’s best interests to remind consumers why they should purchase Hallmark greeting cards for all of their special moments.
SOCIAL MEDIA & ELECTRONIC COMMUNICATION Technology has made it incredibly simple to communicate with others; nowadays it’s the main form of communication around the world. Rather than taking the time to write a personalized message or letter or buy a card, people are simply typing on people’s walls on Facebook, tweeting at them or just sending them a text. Hallmark needs to show customers that these forms of communication are not as meaningful and can easily be forgotten over time.
E-CARDS The rise of e-cards has not been kind to Hallmark stores. Because of their convenience, people are opting to simply send e-cards to loved ones rather than going to a store and purchasing a traditional card from a Hallmark retailer. Valence believes that, with the right brand message and tone, consumers can be driven back to Hallmark stores everywhere.
BRAND RESONANCE American Greetings is a major competitor, and in fact consumers have recently been choosing its brand over Hallmark. Consumers need to see that Hallmark greeting cards are more than just cards, they’re a tangible link to those special moments in life.
REGIONALITY & SEASONALITY
Valence recommends two main regions be targeted for the purposes of this campaign: the Northeast and Midwest. The brand’s BDI and CDI are both quite high in these regions—BDI for the Northeast and Midwest sit at 111 and 143, respectively, while CDI for these regions is 106 and 114, respectively—making the market defensive. Valence does not recommend implementing a new campaign, one that takes the brand’s message in a different direction, in areas that are not as loyal to the brand or product category. The campaign is expected to connect with consumers in these regions well enough that the message and concepts should spread across the nation, in-
creasing both BDI and CDI in the South and West. Hallmark’s campaign will not be strictly seasonal. Rather, Valence advises a pulsing strategy be implemented. Advertising will be heaviest during the months of February, May, June, November and December to coincide with the major holidays in those months (Valentine’s Day, Mother’s Day, Father’s Day, Thanksgiving and Christmas). Advertising will be lighter for the remainder of the year for special events and occasions, such as birthdays, graduations, weddings and showers.
THE CAMPAIGN: For the longest time, greeting cards
LASTING MOMENTS TM
have been branded as the precursor to a gift that is traditionally given on special occasions; but in reality there is so much more potential to greeting cards that is being overlooked. It is this aspect of greeting cards that is the focal point of the Lasting Moments™ campaign. As Hallmark’s newest campaign, Lasting Moments™ will brand greeting cards in an entirely new light, as a means of giving someone a tangible link to a special moment that can be referred back to at any time. The spoken word is fleeting, wistful and can be easily forgotten. The written word,
however, can sometimes last forever. Valence has developed two different media plans for Hallmark to choose from. One strictly uses traditional media, while the other combines TV with a variety of social media outlets. Lasting Moments™ will highlight the various moments in people’s lives in which they were given a card that they kept for years to come. It will give consumers the opportunity to relate to the campaign on a personal level, allowing them to see just how important Hallmark can be in making special moments last.
OPTION 1: STRICTLY TRADITIONAL
Through the use of traditional media, Valence has set a goal for the campaign to reach, roughly, 30 million people (30 percent) by year’s end within the Northeast and Midwest regions, with an average frequency of seven.
Media & Vehicles
Valence discovered that Hallmark’s target audience consumes traditional media more than any other form and therefore selected primetime TV, outdoor, and radio as the core media vehicles for Hallmark’s campaign. The findings can be found in the appendices, page 16.
Hallmark’s target audience is familiar with traditional means of advertising.
Traditional media is expensive.
COPY TESTING $5 MILLION
RADIO $3 MILLION
Traditional media allows Hallmark’s message to get out faster.
OUTDOOR $8 MILLION
TV $34 MILLION
With no social media presence, brand interactivity will be low. The campaign might be met with skepticism; some like the way greeting cards are branded already.
OPTION 2: TRADITIONAL WITH DIGITAL
Hallmark’s best chance of increasing brand awareness lies with a campaign that combines traditional and digital media. Through the implementation of various social media platforms, the company has a unique opportunity to expand its reach nationwide, despite the fact that only two regions are being specifically targeted for the purposes of this campaign. Valence expects to reach 45 percent of Hallmark’s target audience with an average frequency of three.
Media & Vehicles
Two main forms of media will be utilized for the purposes of this strategy: TV and Internet. Hallmark will be very active on Facebook, Twitter, Instagram and Pinterest, interacting with consumers through each of these platforms on a daily basis. Through the use of social media, Hallmark will be able to generate a great deal of buzz surrounding the Lasting Moments™ campaign. In addition, Valence will script, produce and shoot a series of TV commercials, to be aired during primetime, that weave a story of Lasting Moments being created by people everywhere. Consumers will see these moments on TV and Hallmark will encourage them to share their #LastingMoments with the brand on social media. Hallmark will select a number of consumers throughout the year to receive Care Crates™ as an incentive to share their #LastingMoments with the world. Hallmark will tailor each individual Care Crate™ to the moment being shared. These will give consumers something to talk about and generate buzz surrounding the campaign, thereby increasing Hallmark’s percentage of “earned” media; they will also help form a meaningful connection between consumers and Hallmark, giving them a way to interact directly with the brand. The findings can be found in the appendices, page 16.
MEDIA MIX FACEBOOK $120,000
The campaign interacts with consumers in a way that’s never been done before, bringing in new buzz about the brand. It gives Hallmark a chance to give back to consumers. Ideally, this campaign will be very cost efficient, generating impressions via word of mouth and social media. Care Crates™ will give consumers something to talk about.
CONS: Primetime TV ad space is costly.
TV $40 MILLION
TWITTER $90,000 INSTAGRAM $65,000
CARE CRATES $9,660,000
Care Crates™ will require teams to be hired for production and transportation.
CONCLUSIONS & EXPECTED OUTCOMES Valence recommends the strategy that combines traditional media with social media and believes the Lasting Momentsâ„˘ campaign will resonate with consumers in a way that brings Hallmark to the forefront of peopleâ€™s minds when they think of greeting cards. Hallmark can expect the campaign to have a reach of 45 percent and an average frequency of four. In addition, the company should see an increase in overall sales by four percent, U.S. market share by five percent and brand awareness by 86 percent.
$2,600,000 $4,400,000 $5,200,000 $40,000,000
$3,250,000 $5,500,000 $8,500,000 $50,000,000
Total $3,250,000 $3,000,000
FLIP ME THIS WAY!
Opening Scene: Open to young woman in coffee shop, sitting at table. Camera pans across room, we see a young man sitting across coffee shop discreetly glancing at her, clearly trying to work up courage to approach her. Man finally gets up and goes to her, asks her out, gets rejected and leaves coffee shop. Scene 1: Same opening scene in coffee shop, we can tell it’s a different day because of different outfits. Man tries again, gets the same outcome.
Scene 2: Same opening scene, different clothes. Camera pans across coffee shop, we see the young man’s table is empty. Perplexed, young woman gets up and approaches table; she’s confused because the young man is always there. She finds card on table, opens it to find message from man with his phone number. Scene 3 Cut to a few years later, same woman standing alone in bedroom. Opens dresser drawer, removes same card she found that day in the coffee shop, reads message, smiles. Camera shows close up of left hand as she closes the card, we see an engagement ring on her finger. Fade to black. Hallmark.
We loved Tina Mullen’s #LastingMoments so much we had to share her post with our fans. We hope the Care Crate we just sent you in the mail shows how happy we are for you!
Grandma’s cooking up her famous pumpkin pie for Thanksgiving. I’ve been waiting all year for this! Ready for that food coma. #lastingmoments #loveher #yum
Examples of how our Lasting MomentTM campaign will be used through social media
Indices for gender
Quintile indices for TV primetime
Quintile indices for radio drivetime
Quintile indices for outdoor
Indices for age
Quintile indices for Internet
1. Experian Simmons. (2011). Spring 2011 NHCS Adult Study 06-month [Data file]. Retrieved from http://oneview.experian.com 2. Franzen, C. (2013, Sep 04). Sorry for your loss: Hallmark struggles to update its card empire. The Verge, Retrieved from http:// www.theverge.com/2013/9/4/4579832/sorryfor-your-loss-hallmark-struggles-to-updateits-card-empire