KANSAS CITY, Mo. - Some supermarket chains may begin merchandising a new brand of greeting cards with the Hallmark name on the back beginning next year.
The brand, Expressions from Hallmark, was announced here late last month. It is Hallmark's first new brand in 37 years, and represents an important strategy shift by the company in allowing the Hallmark name, the flagship brand for the many specialty retailers, to be sold in mass-merchandise outlets.
"It's a huge overriding strategy change for Hallmark, and the move is based upon consumer research," said Mindi Ellis, marketing media relations, Hallmark Cards.
Ambassador Cards launched in 1959, has been Hallmark's only brand merchandised by 22,800 mass merchandisers and food stores. Some major drug chains, however, have been allowed to merchandise Hallmark Cards as well as Ambassador Cards.
Conversion to the new brand, which includes a broad card line, gift wrap, stationery and gift items, is expected among chains now selling competitive card lines and from those chains that value brand equity. "This is for someone who really values greeting cards and brand equity. The whole consumer awareness of brand will be important," said Ellis.
Regardless, retailers must meet certain criteria if they want to merchandise the Hallmark brand, said Ellis. Those most likely to get the brand will have a strong commitment to the greeting card category in terms of square footage, location of department, marketing and promotion, she said.
Ellis added that the new brand will have its own look, with new merchandising and fixtures distinct from Ambassador. Both Expressions from Hallmark and Ambassador Cards will be managed separately, and have different pricing structures.
The decision to market a new Hallmark brand was based in part upon a survey of 2,000 consumers that indicated a high level of awareness and preference for the Hallmark name.
Ellis maintains that the new brand will not cannibalize on the business generated by Ambassador Cards or Hallmark Cards, but in fact increase the category and Hallmark's market share. The brand also is being introduced to meet consumers' need for convenience in buying Hallmark cards by making them more widely available, she said.
