Strategy Research Paper ObjectivesHallmark traditionally has Essay

Strategy Essay, Research Paper


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Hallmark traditionally has been viewed as the company to utilize & # 8220 ; when you care adequate to direct the really best, & # 8221 ; which Hallmark would wish to maintain in the heads of the mark market, but besides use to increase gross revenues for non-holiday seasons. Hallmark believes with uninterrupted marketing attempts they can appeal to more adult females to purchase cards for all occasions throughout the twelvemonth.

Marketing Aim

Hallmark has developed the following selling aim for the twelvemonth 2001. In fixing this aim, Hallmark has estimated the cost of mundane cards at $ 0.99 per card.

During the calendar twelvemonth for 2001, Hallmark will increase its dollar market portion by two per centum points, from 40 % to 42 % in the $ 7 billion ( volume ) recognizing card class.

Ad Aim

The overall end of this run is to increase trade name consciousness among adult females age 18-34, who are employed full or portion clip or are full clip pupils. Hallmark will utilize its new advertisement run to convey this new image.

From January 1, 2001 to December 31, 2001, Hallmark Greeting Cards will try to do 10 % of the 22.8 million females age 18-34, who are employed full or portion clip and have graduated high school aware that Hallmark Greeting Cards is merely every bit of import for day-to-day usage as it is for seasonal vacations.

Media Aims

Target Market

Concentrate message bringing toward current users of recognizing cards, with primary accent on adult females, age 18-34, who are employed full or portion clip, or full clip pupils. This gives Hallmark an estimated mark market of 22,425,000.


Recommend a publicity aimed at adult females in the mark market in hopes that they will buy Hallmark cards for all occasions throughout the twelvemonth.

Reach and Frequency

During an mean month of advertisement, reach 40 % of the mark market at an mean frequence of 9.


Increase competitory weight degrees throughout the twelvemonth every bit good as puting heavy advertisement in the 2nd and 4th quarters ( specifically the months of April and November ) in an attempt to work in concurrence with normal seasonal additions in purchase.


Conduct a national run, with accent in the West part, where there is a high concentration of current Hallmark users. The West part includes the undermentioned provinces: Arizona, California, Colorado, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, and Wyoming. Besides aiming metropolitan vicinities, which accounts for 83 % of mark market.


Achieve all of the above aims every bit expeditiously as possible within the overall media budget of $ 9 million. This $ 9 million is lone portion of a larger advertisement budget of $ 50 million.

Media Strategy and Tacticss

This subdivision contains the scheme and tactics Hallmark will utilize in the calendar twelvemonth 2001. Here, the recommended media types are identified for Hallmark in order to present its message to the 22.4 million in the mark market. Again, the selected mark market is adult females, 18-34, who are employed either full or portion clip, or are full clip pupils.

In the yesteryear, Hallmark has targeted all adult females 35+ , since they fall in the largest card-consuming section of the market. In order to make this audience, Hallmark has chiefly utilized telecasting, magazine, and newspaper media types. For Hallmark in 2001, a different strategic attack is recommended from old media programs. Since Hallmark is aiming a younger audience, different media types are suggested to more efficaciously make that audience. The media types recommended for 2001 are wireless, newspaper, magazines, every bit good as outdoor.

Hallmark has traditionally used telecasting and magazines as the primary media types for advertisement. However, for the 2001media program, wireless will replace telecasting in order to more efficaciously make the new mark market.


Scheme When looking at the quintile index of wireless compared to other media types, wireless is a really effectual agencies to make the coveted mark market of adult females age 18-34 employed full or portion clip, or are a full clip pupil. The quintile index for wireless thrust clip reveals that out of all adult females, those ages 18-34 are more likely to be heavy users of this medium and 12 % more likely to be an above norm user. This means that Hallmark s mark market of adult females age 18-34 is 24 % more likely to be heavy and above norm users of wireless during drive clip that the mean adult female. Radio mid-day terciles support wireless as being a extremely effectual medium to make the mark market. The terciles group consumers into high, in-between, and low users of wireless. The indexes show that out of all adult females, those ages 18-34 are 14 % more likely to be high users of wireless ( SMRB ) . So given both quintile and tercile indexes, wireless proves to supply an effectual sum of exposure to Hallmark s mark market.

Aside from being extremely effectual in making Hallmark s mark market, there are several advantages of utilizing wireless as a media type. First and first, wireless ranges light Television viewing audiences. This is ideal for Hallmark because information shows that adult females age 18-34 had comparatively high indexes in the lightest user quintile for primetime and overseas telegram Television.

Radio is besides an effectual medium in obtaining a high frequence. This goes manus in manus with Hallmark s aim of raising frequence degrees in order to increase trade name consciousness. Another advantage of wireless as a medium is flexibleness in footings of both clip and geographic location. Although wireless will be used nationally, geographic flexibleness allows Hallmark to use topographic point markets, which play a important function in puting accent in the Western part.

There are nevertheless, some disadvantages involved with utilizing wireless that should be noted. First, wireless has been criticized for being a background medium and incorporating fugitive messages. Hallmark will minimise these disadvantages with strong creative. Another disadvantage of wireless is that many markets have so many Stationss that the audience becomes fragmented. Here, Hallmark will minimise atomization of its mark audience by choosing those radio formats with the highest degrees of mark market listenership.

Tacticss Both web and topographic point market wireless will be used by Hallmark in 2001 accounting for % of the entire media budget which is $ 136,884. From that sum, $ 64,572 will be used for web while $ 73,312 will travel to descry market wireless. Hallmark has selected Adult Contemporary as the format in which the ads will be aired. This format has been selected because it was found to be the most popular format among the mark market ( SMRB ) . Spots for web wireless will be purchased Monday through Friday as good both Saturday and Sunday. The daypart the ads will run in will be from 6 a.m. to midnight for weekday every bit good as weekends. This daypart has been chosen because research reveals that 93 % ( 21 million ) of adult females in the mark market listen to radio between 6 a.m. and midnight ( SMRB ) . For local markets, Hallmark has selected the Los Angeles country to run ads Monday through Friday. The Los Angeles market has been chosen because it represents an ideal metropolitan West seashore venue.

Table 1.

Radio Daypart Cost per topographic point Entire Cost

Network Mon.-Fri 6 a.m.-mid $ 2,348 $ 28,176

Sat.-Sun 6 a.m.-mid $ 3,033 $ 36,396

Local Mon.-Fri 6-10 ante meridiem $ 3,199 $ 38,388

Mon.-Fri 3-7 p.m. $ 2,827 $ 33,924


$ 136,884


Scheme From January through September 1999, magazine outgos for Hallmark Greeting Card ranked 2nd highest among all media vehicles used. Magazine quintiles for adult females age 18-34 found they are 16 % more likely to be heavy users of magazines. Quintile index besides found adult females age 18-34 are besides more likely than the mean adult female to be the 2nd hig

hest users of magazines ( SMRB ) . This makes magazines an first-class media type to make the 22.4 million in the mark market.

Magazines have many advantages that satisfy the demands of Hallmark s media aims. Since magazines appeal to a really choice audience, Hallmark has chosen its vehicles to straight make the mark market. Today, there are many single and specialised magazines that appeal to all types of people ( there are presently over 20,000 magazines in circulation ) . The consequence being Hallmark can farther make the more defined mark market of adult females age 18-34 who are employed full or portion clip, or are full clip pupils.

Magazines are able to reproduce an advertizement that has first-class colour quality, which enhances the strength of the message. Besides, magazines have a really high pass-along audience, which increases the ad exposure over clip. This will non merely assistance in run intoing reach aims but besides allow Hallmark to go on to construct merchandise range long after the run officially ends. In add-on, magazines have controlled circulation, which maximizes the ability to specifically make the 22.8 million in the mark audience and minimise waste.

Unfortunately, magazines are no different from other media in that they do show some disadvantages. First, magazines are slightly limited in footings of geographic flexibleness. Another challenge confronting the usage of magazines are early shutting day of the months. Many magazines require the ad be placed several months in progress, which can do the ad seem dated. The fact that most magazines are published monthly can give a deficiency of immediateness. It should besides be mentioned that even with a great print advertizement, Hallmark faces the challenge of interrupting through the jumble within a magazine since advertizements account for 70 % of magazine content. Despite these challenges, high selectivity, quality reproduction, long life, and high pass-along audience brand magazines an first-class medium to present Hallmark s message.

Tacticss As a consequence of the effectivity of magazines to make the mark market, magazines will account for $ of the entire media budget, or % . Hallmark has selected seven national consumer magazines. Six of the magazines are monthly publications, which include Cosmopolitan, Glamour, Good Housekeeping, Mademoiselle, Redbook, and Woman s Day. The 7th magazine, Soap Opera Digest, is a hebdomadal publication. Hallmark will put full-page, four-color ads in all of the magazines with the exclusion of Cosmopolitan. Cosmo will jump months continuously with Good Housekeeping throughout the twelvemonth with ads being placed on the back screen. For evaluations, every bit good as cost per topographic point, figure of interpolations, and entire cost per vehicle, refer to Postpone 2. The magazines were wholly selected as the consequence of high readership of the mark market ( SMRB ) .

Table 2.

Magazine Rating Cost per topographic point # of Insertions Total Cost

Cosmopolitan 24.9 $ 156,600 6 $ 939,600

Glamour 20.7 $ 99510 6 $ 597,060

Good Housekeeping 18.6 $ 192,260 6 $ 1,153,560

Mademoiselle 10.9 $ 56,666 7 $ 396,662

Redbook 13.1 $ 88,000 4 $ 352,000

Woman s Day 16.9 $ 165,315 2 $ 330,630

Soap Opera Digest 13.4 $ 31,355 8 $ 250,840

Soap Opera Weekly 8.6 $ 11,040 8 $ 88,320


Strategy The 3rd media that Hallmark will use is newspaper. Newspapers have long been the chief media beginning for information. Today, this medium now battles with local overseas telegram, wireless, and magazines for a portion of advertizers outgos. Reports show that in 1999, from January through September, a sum of $ 57,000 was spent in newspaper advertizements entirely by Hallmark Greeting Cards.

In relation to the recommended mark market, newspaper quintiles show that adult females age 18-34 are 18 % more likely to be heavy users of newspapers. The quintile studies that adult females age 18-34 are 22 % more likely to be above mean users of newspapers ( SMRB ) .

The usage of newspaper is advantageous to run intoing the aim s standards. Newspaper guarantees mass range within the West part. The trade name and class development index for this part is above norm. This fact displays first-class gross revenues potency for the Hallmark trade name. With newspaper projecting a local accent, many of the mark market will read the paper to maintain up with the events that are taking topographic point. By puting advertisement with local events, the impact of non-seasonal purchases will increase. Another benefit of newspaper is the sense of immediateness. The figure of day-to-day interpolations in the newspaper will carry through the high frequence aim. Besides, newspapers provide editorial association. There are specific subdivisions in the newspaper that focal point on the mark market recommended.

Disadvantages of newspaper are publicizing jumble. Sixty per centum of the newspaper is compiled with advertizements. The cost of purchasing national coverage is highly high. Since newspapers are normally discarded after holding been read, there is a little base on balls along audience as a consequence. It is besides hard to organize for national bargain, but the parts are specific. Newspapers meet the media objectives that must be accomplished, despite the disadvantages they possess.

Tacticss Newspapers will account for % of Hallmark s entire media budget which is $ . Both national and local newspapers will be used in 2001. The bulk of newspaper disbursement will be national which is $ while local will stand for the staying $ For national, Hallmark has selected USA Today to run in the heavy months ( April and November ) . The local newspaper, the Los Angeles Times, will besides run Hallmark ads in these heavy months.

Table 3.

Newspaper Cost per topographic point # of Insertions Total Cost

USA Today $ 15,000 12 180,000

Los Angeles Times $ 98,721 12 1,184,652


Strategy The concluding medium in this media program is out-of-door, which has ne’er been used by Hallmark Greeting Cards. While Outdoor will have the smallest sum of the media budget, it will congratulate the other media types nicely. The usage of outdoor is a new manner to successfully make the mark market and work in concurrence with the media program.

Harmonizing to the Outdoor quintile indexes, adult females age 18-34 are 10 % more likely than the mean adult female to be heavy users and 4 % more likely to be above mean users. This means the 22.8 million adult females in the mark market are 14 % more likely to be heavy or above mean users of Outdoor than the mean adult females ( SMRB ) . This makes Outdoor an attractive new manner for Hallmark to make its mark audience.

There are several advantages for utilizing Outdoor as a media type. First of all, Outdoor allows bringing to multiple family members at the same time, every bit good as potency for high frequence. In add-on, Outdoor is a comparatively cheap medium which can be used to direct people while they are going. Outdoor offers first-class geographic flexibleness, which once more is ideal for concentrating on specific parts ( West ) .

However, a major disengagement of Outdoor is the short continuance and inclination of messages to be fliting. Another disadvantage of Outdoor is the high jumble environment in which the advertizement message bringing and limited control over demographic proving are two disadvantages of Outdoor. These factors could hold a definite consequence towards this media type.



Hallmark will profit greatly to utilize a uninterrupted scheme in their advertisement. A uninterrupted scheme is good due to the fact that the timing aim is to increase competitory weight degrees throughout the twelvemonth. Hallmark will aim all quarters within the calendar twelvemonth, with most accent on the 2nd and 4th quarters. The 2nd one-fourth was chosen due o the fact that Easter, Mother s Day, Father s Day, graduations, and nuptialss all autumn under these months. The 4th one-fourth was chosen because of the seasonal vacations.