Future Use of Internet Technologies of Hallmark Cards - Essay Example

Hallmark Cards Introduction Many companies across the world have invested in the use of internet technologies to reach a wider audience s while doing business. However, there are some companies such as Hallmark that have recorded profit due to their usage of internet technologies (Canzer 2006 p. 97-99). Companies therefore need to identify the basis for the use of internet applications that suit their business needs. Further, companies must be able to identify indicators of the effectiveness of a particular internet technology. The need for a well formulated internet technology strategy is crucial and mandatory. However, the suitability of such company driven technological initiatives will depend on how the effectiveness of the internet applications in meeting the set goals and objectives (Smith and Kidd 2000, p 45-50). The internet has basically changed commerce (Smith and Kidd 2000, p 45-50). The most basic forms of communication such as written and verbal communication between a business and its consumers and suppliers have been changing. Electronic communication, in the form of the internet, keeps on changing the commercial activity for consumers and businesses. E-commerce can therefore be defined as the sharing of product and service information, developing and improving human business relationships, while transacting business over the internet (Canzer 2006 p. 97-99). Hallmark Company Analysis Hallmark was founded in 1910 and is currently the world’s most well-known producer of greeting cards. Hallmark creative artists produce several designs for greeting cards and other products each year. The greening cards and other products are produced in 38 dissimilar languages and are sold to more than 100 countries in the world (Regan 2009 p. 150-159). At hallmark, an advertising e-business model is based on earning revenues in exchange for the placement of advertisements on the firm’s website. Just like traditional media such as television, newspaper and radio, advertising in the internet involves advertisers’ support of distributed online entertainment or information likely to be accepted by consumers, who see advertising as the cost they have to incur to receive free content online. The internet provides Hallmark with the opportunity to create unique design and interaction with the targeted audience (Pierce 2005 p 18-23). The advertising model in the internet has necessitated the entry of small production studios and small entertainment artists who seek to get advertising revenues as well as to put up for sale their products online. There are no limitations to internet advertising, and virtually everyone with an advert that can entice the audience to begin easily. Another factor that determines the success of the advertising for most organizations such as Hallmark is the level of traffic produced by the website offering whatever content it happens to be. The distribution channel used by Hallmark website encourages visitors to email greeting cards for free of charge. These bring recipients of the hallmark’s website to view their cards free of charge, thereby informing them of the website, and the company’s products and services (Lenz 2000 p 87-95). E-market Analysis Hallmark cards can be used by everyone. Greeting cards can be used by friends as well as relatives to pass greetings to each other. Customers who wish to send their birthday wishes to friends can order the cards from hallmark. Hallmark has various cards including E-cards that can be sent through emails, birthday cards, gift cards, greeting cards, cards designed by customers and wedding cards for wedding anniversaries. Hallmark has got an email address that enables customers to mail cards their loved one wherever and whenever they like, in addition, the company gives the customers an opportunity to design and order cards of their choice. In their attempt to develop a new production line of cards, Hallmark had to make use of BPR to design a cross-functional team approach in order to ensure that their product would be in the market at least eight months ahead of the program. This led to a lot of benefits in Hallmarks business; there was increased market share which translated into more profits (Pierce 2005 p 18-23). Hallmark’s main aim was not just to avail commodity products to its customers but also to help customers set up full-line shops. In the 1950s when the company executives discovered a collection of exciting party decorations in the market, they developed the ‘plans-a-party’ line of paper party products. The following years saw similar roll-outs of playing cards, stationery, calendars, among other new products into the market (Lenz 2000 p 87-95). Hallmark’s vibrant extension of its services ensured those newer products and more sophisticated reproduction and distribution facilities to the market. In an attempt of keeping up with demand from customers, Hallmark had to open ribbon production plants at Lawrence, Kansas, in 1958. The facility was capable of improving production capacity; it created about 2million feet of ribbon per week. Hallmark had to improve on excellence of products because customers did care about the product name of the cards they sent and would select a high excellence option over a lesser one, even if it costs a little more (Lenz 2000 p 87-95). Business to Business Analysis Hallmark engages in business with other customers, distributors and suppliers. The company sells all sorts of cards to customers. Any customer who is willing to engage in business with hallmark is invited to open stores where they will sell hallmark cards. Customers can also own a hallmark gold crown store. Hall mark encourages other businesses to work with it in the terms of business. They give retailers an opportunity to sell hallmark cards in their store. However, hallmark no longer allow unsolicited vendors to issue their cards. Hallmark also sells its cards to businesses that need its cards in bulk. Hallmark leaders discovered that a singular focus on line stores would not yield enough profits to the company; it would also not serve the company in its long term plans. In the 1950s other major competitors such as the mass market discounter, were gaining reputation in the market. Other competitors such as Woolworth’s, kresge’s, Newberry’s and Ben Franklin serve customers who are concerned in value and convenience. The competitors were too strong to be overlooked. Hallmark therefore developed a new brand to cater for them. The company’s creative designers came up with Ambassador Cards as a separate entity within the company, with its own sales force and marketing, design and editorial staffs (Regan 2009 p. 150-159). Web Design Analysis Hallmarks website has been professionally designed. The web site has been decorated by the various cards that are produced by the organization. Customers can immediately identify the cards that suit their tastes and preferences by looking at the cards displayed. The website links and menus have been well organized into shop, in stores, ideas, offers, shopping location, e- cards, personalized cards, party plates and many more colorful and attractive links. In addition, the writings on the website are visible, they have been written using visible fonts and designs that are attractive to customers. All these contribute toward making the website is easily accessible to customers. Customers can access the website through the Facebook sign up and login link. Hallmark is also available through twitter. Customers can email or ask a question to the hallmark customer service through the website. Further, the website gives opportunity to customers to by and send cards online. Customers can by cards through PayPal, MasterCard and visa by placing their orders online; they can also view the status of their order by entering their email and a confirmation number. Their shipping and delivery costs have also been included in the website. Through promotion research, companies can be sure they are listening to the voice of customers. Marketing research involves preparation, gathering and analyzing data crucial to marketing decision. The outcome of marketing research is often sent to the management. In most cases, the information collected includes customer likes and dislikes, product perceived benefits, and consumer lifestyles. In the case of hallmark cards, they use marketing research to test messages, cover designs and the size of the cards. Hallmark’s creative staffs are aware of which types of cards will sell best in the market place (Reynolds 2001, p. 165-170). The traditional Hallmark cards are largely replaced by on-line cards or mass emails. At the start, most consumers considered this method as being bad, they saw the company as being lazy to write personalized cards. Few years later, the majority of consumer’s adopted the method. Changes in technology changed people’s attitudes towards hallmarks products in appositive way. Globalization and the need to have a wider market were made possible by rapid changes in technology (Lenz 2000 p 87-95). Hallmarks group’s decision to the challenge of other competitors of providing a top quality product to the mass consumers was to keep production values the same while at the same time employing relative techniques employed in other product lines. The Ambassador line of products comprised of designs that had earlier been used in hallmark stores three to four years earlier. The current competitors such as American Greetings, CSS industries, and Taylor Corporation produce similar products to hallmark’s at the same price thus challenging Hallmark’s market base (Reynolds 2001, p. 165-170). The idea proved to be successful. There were increased sales each year. The Ambassador project proved that Hallmark could reach several market sections and not lose the brand name that it had achieved over its first 50 years of existence in business. In the year 2006, hallmark introduced anew women’s lifestyle publication. The magazine, according to hallmark, contains unique editorial point of view that are centered on home, food, decorating, relationships and entertainment. Apart from venturing into greeting cards business, hallmark ensures that it diversifies on different businesses such as hallmark magazine (Hall, 2006, par 5). Conclusion For one decade, hallmark has had success by using different business vehicles. Just as in the past, hallmark will continue to diversify in its products and come up with new creative ideas and use different means to display its messages to the customers. Its motto “it’s much stronger motivation for success than getting rich” ensures that the company carries on with its reputation of being dedicated to product quality. References “Joyce C. Hall, Hallmark Founder (1891-1982).” 802, 24 April 2006. Canzer B. (2006) E-Business: strategic thinking and practice. London, Cengage Learning. Harris L. (2003) E-Business Fundamentalls. London, Routledge.. http://pressroom.hallmark.com/joyce-c-hall.html. Lenz V. (2000). Emotion marketing: the Hallmark way of winning customers for life. New York, McGraw-Hill. Pierce N. (2005). Hallmark Keepsake Value Guide, Tracker Edition 1973-2005. New York, Bangzoom Publishers. Regan P. (2009). Hallmark: A Century of Caring. New York, Andrews McHeel Publishing. Reynolds, J. (2001). Logistrics and Fulfillment for E-Bisiness: A Practical Guide to Mastering Back Office Functions for online commerce. New York, Focal Press. P Smith B. and Kidd P. (2000). E-Business: key issues, Applications and Technologies. New York, IOS Press. Read More