Price & Promotion Analysis

5 Pages 1291 Words

In these modern times of technology many companies have to use different strategies to compete with online shopping. Hallmark is one of them. There are many people who send cards and gifts and flowers online. Hallmark themselves have a web site that you can purchase cards, gifts and flowers. But Hallmark must also support their franchised stores. So they have to come up with ways to bring the customers into the stores. They use print, television, direct mail and internet to do this.

They started a couple of years ago, when along with other retail stores offering the “Hallmark Gold Crown Card”. This was a courtesy card to their customers and it could be used in any Gold Crown Hallmark store in the United States. This gave the customer points for cards they purchased and dollar amount spent. Then every three months they send you dollar amount coupons in the mail to use in the store on any Hallmark product. You also get a $5.00 coupon for your birthday. If you make suggestions and Hallmark likes the idea they will send you a $20 coupon. Everyone loves getting mail that has coupons attached and can be used for money. So when a Gold Crown Card holder sees a Hallmark mailing they know they are getting something good inside.

The card has increased the customer traffic but they needed another way to draw more. So they started offering promotions at different times during the year. They usually coincided with the current holiday. Right now the current promotional items are for two types of bunnies for the Easter holiday. Valentine’s Day there was a heart shaped box with three scented candles in them. At Christmas there were holiday plates and Christmas books for the children. The promotional items are appealing to the customers. Other promotional items might be: card holders, stationary items, potpourri, candle holders or even puzzles or games. They can be given as gifts or kept for oneself.

A Hall...