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The
Australian greeting card market is valued at an estimated $600 million dollars
in annual retail sales. Per capita consumption has grown 10% over the past five
years, from approximately 20 to 22. The
market is clearly in its growth phase and has considerable potential to increase
when compared to sending rates in other mature English speaking countries. For
example, each year, 32 cards per person are purchased in the USA, and more than
50 cards per person are purchased in the UK. |
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Hallmark
is the largest greeting card company in the world and has maintained a
leadership position through a total commitment to quality - in people, product
and state of the art production techniques.
In Australia, the Hallmark brand dollar share for greeting cards has
grown to 32% due to the strength of the product offering and distribution in
high profile retail stores. Hallmark
has a history of investing in its brand name and is top of mind with consumers,
enjoying 97% prompted awareness and 54% unprompted awareness.
These results are far higher than Hallmark’s nearest competitor. |
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Joyce
C. Hall, founder of Hallmark Cards Inc., lived the American dream. Born
August 1891, in David City Nebraska, Hall overcame both poverty and a lack of a
formal education to become the
architect of his industry. Though
J.C.Hall became a wealthy man, profit was never foremost in his thoughts. In his
autobiography ‘When you care enough’ Hall wrote “If a man goes into
business with only the idea of making a lot of money, chances are he won’t.
But if he puts service and quality first, the money will take care of
itself...” This is still the philosophy of the company today. In
1910, when he was 16, Joyce and his two older brothers pooled their money and
opened the Norfolk Post Card company. Hall headed to Kansas City where he began
selling the cards out of shoe boxes to drugstores, book stores and gift shops.
In 1915 the Hall’s entire inventory was destroyed by fire. Instead of folding,
the Halls began creating and producing their own designs. Known
as the Hall Brothers Inc until 1954, today Hallmark Cards Inc is one of the top
privately owned corporations in America with annual sales in excess of $3.6
billion. Hallmark
came to Australia in 1955. The original staff consisted of 5 people with a range
of eight everyday cards and sixteen Christmas designs. In
1992, Hallmark began distributing product to New Zealand.
In 1995, Hallmark Australia began exporting greeting cards and other
related products to Japan and other markets in the Asia Pacific region. Hallmark
Australia now employs approximately 250 people at its Scoresby head office and a
total of 650 people Australia-wide. The
company embarked on a major branding campaign in 1980 running 90 second
commercials shot in Australia. This campaign cemented Hallmark’s brand
positioning and strong brand recognition. In
1997, Hallmark developed a long term strategy to grow the greeting card market
through advertising and promotion. |
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Hallmark
Australia produces a range of products that help people to express their
feelings with their families and friends. Hallmark’s products enrich
people’s lives and enhance their relationships.
Hallmark’s extraordinary brand equity and the degree to which consumers
relate to the company and its products are the result of a rich blend of product
variety, creativity, innovation, high quality and value. The
perceived strength of the product is one of the key factors in retailers’
ranging decisions. The company
undertakes considerable investment in market research to ensure an enhanced
understanding of local consumers’ needs.
This results in the delivery of products of unmatched quality, innovation
and value to sustain product differentiation and competitive advantage. Hallmark
effectively leverages the strength of its worldwide creative resources to
deliver new and improved products to the market that meet the needs of local
customers and consumers. Combining
this resource with strong “power” licensed properties, (e.g. DisneyTM,
Looney TunesTM, Sesame St.TM and BarbieTM), and selective international niche
ranges further strengthens its image, and assists in driving retail space
acquisition. Hallmark’s
core competency is in greeting cards and wrapping paper.
It is known for its wide range of classic, cute, humorous and innovative
ranges of Everyday and Seasonal cards, together with leading edge imagery in
wrapping paper and related gift products. An example of Hallmark’s dedication
to innovation is the release of its Laser Cut cards, which are created using a
laser light process, adding a brand new dimension to the greeting card market. In
macro terms, the market is driven by two core consumer segments - ‘traditional
enthusiasts’, who favour classic or traditional cards (i.e. “hearts and
flowers”), and ‘young optimists’ who prefer cards that reflect their
unique lifestyle and aspirations. Understanding
these two consumer profiles has helped Hallmark to position product ranges to
meet the diverse needs of both segments. More
importantly, research is updated on a regular basis to ensure that emerging
trends or changes in society are reflected in the evolution of the company’s
product ranges. |
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Hallmark
resources designs from around the globe in order to offer the widest possible
range of products to Australian consumers. As
a worldwide greeting card company, Hallmark has always held a very high level of
brand recognition and preference. Over recent times, Hallmark has stepped up its
marketing activities to promote brand insistence, with the aim of driving
consumers into outlets that range Hallmark cards. The advertising communicates
the message that the Hallmark logo represents the highest quality in greeting
cards. If you have sent a Hallmark card, then you really ‘care enough to send
the very best’. |
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In
1997 Hallmark Cards Australia began a comprehensive Marketing strategy to build
brand equity and to grow the greeting card market. There has been a consumer
marketing and promotion ‘vacuum’ in the Australian greeting card market as
greeting card publishers have devoted significant resources to trading terms.
Hallmark’s marketing activity aims to fill that consumer marketing
‘vacuum’ and thereby grow per capita consumption of greeting cards. The
launch campaign consisted of a mix of Seasonal Television Advertising and
in-store promotion, extended length cinema commercials and a print campaign. All
four elements were designed to grow brand equity by associating the emotional
attributes of the brand to the high quality and large variety of
product. The
objective of this campaign was not only to grow the greeting card market as a
whole, but to drive consumers in-store to seek out Hallmark products. The
program was designed to reach core consumer segments with a consistent message. The
first aspect of the campaign was Seasonal Television Advertising with
specifically targeted commercials aimed at the high purchasers of the season.
The ads were screened over a one week period prior to the season in high rating
programs, such as ‘Seinfeld’ and ‘Mad About You’ for Valentine’s Day.
The commercials were also tagged with details of the seasonal in-store promotion
to drive consumers to specifically seek out Hallmark product. The
seasonal promotions have linked the Hallmark brand name to other well-known
brand names. This has been
enormously successful, in terms of favourably influencing consumers’
perceptions of the Hallmark brand and increasing sales of Hallmark products. Cinema
advertising was selected to reach a specific target audience and to co-ordinate
with other elements of the marketing mix to maintain a strong advertising
presence throughout the whole year. Print
advertising was selected to provide continuity and to tie the emotion of the
card sending situation to actual Hallmark product. This
three pronged campaign represented an ongoing and long-term commitment from
Hallmark Cards Australia to grow the greeting card segment and the Hallmark
brand in this country. The
objective of Hallmark’s 1998 campaign was not only to grow the greeting card
market as a whole, but also to increase brand awareness and build brand
preference. Hallmark surprised
Australian audiences by taking on the solus sponsorship of the 1998 TV Week
Logie Awards, which linked well with the brand in terms of recognising
achievements, celebration and sending congratulations.
The Logies sponsorship also enabled Hallmark to communicate to its
primary consumer audience, women aged 24-55 years, leading up to and during the
event, with a strong presence on TV and in TV Week magazine. Hallmark
launched its continuity campaign in April, 1998, which consisted of advertising
on television and in women’s magazines. Although
the ads specifically targeted two identified consumer groups; Traditional
Enthusiasts and Young Optimists, the primary message was consistent, that
Hallmark understands relationships and the importance of communicating emotions.
Hallmark's
presence on television will be increased in 1999, with new locally produced ads
appearing on popular TV shows throughout the year. |
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For
almost half a century, Hallmark Cards Australia has understood the “very
best” ways to help people communicate their feelings and emotions with product
that consistently reflects quality and caring.
Hallmark
stands by its slogan ‘When you care enough to send the very best’ by
demanding excellence and innovation in all areas of the business as a means of
attaining and sustaining leadership in the market. The
overriding philosophy is that all products and services must enrich people’s
lives and enhance their relationships. Creativity
and quality in concepts and products underpin this commitment.
This is delivered through the efforts of the company’s most valuable
resource - its people. |
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| At any one time during the year, Hallmark Cards Australia has around 25
million greeting cards in its warehouse in Scoresby, Victoria. |
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| The most popular greeting card of all time features purple pansies in a
wheelbarrow - with 27,935,724 individual units of the card being sold since
before World War 2. It is still in Hallmark’s range today. |
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Hallmark Inc. employs the world’s largest creative staff - numbering
about 700 persons. |
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Hallmark International has major subsidiaries all over the world,
including offices in the Asia Pacific region, Canada, Europe, Latin America and
the United Kingdom. |
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Hallmark is in the business of personal expression. |
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Hallmark is the manufacturer of all DisneyTM, Warner BrosTM and BarbieTM
cards. |
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