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IT'S IN THE CARDS

KANSAS CITY, Mo. -- Giant Food, Landover, Md., is the first chain in the country to complete the installation of the Expressions From Hallmark brand to date.With its decision to convert, Giant, along with other leading grocery accounts, is hoping to turn around a flat greeting-card market.Other supermarkets in the process of converting all or some of their stores to the Expressions line include: American

KANSAS CITY, Mo. -- Giant Food, Landover, Md., is the first chain in the country to complete the installation of the Expressions From Hallmark brand to date.

With its decision to convert, Giant, along with other leading grocery accounts, is hoping to turn around a flat greeting-card market.

Other supermarkets in the process of converting all or some of their stores to the Expressions line include: American Stores, Hy-Vee Food Stores, King Soopers, Kroger, Randalls Food Markets, Safeway, Schnuck Markets, Tom Thumb and Wegmans Food Markets, said Steve Hawn, Hallmark's marketing vice president for the supermarket team. Some Wal-Mart and Kmart stores also are going with the line.

Although greeting-card dollar volume has been increasing, up 3.8% to $7.04 billion last year, according to estimates from Hallmark Research, unit volume is soft. Unit volume was off by 0.9% to 6.6 billion from the previous year.

Last year Hallmark Cards announced a major change in corporate strategy by creating a new branded greeting-card line with its name, Expressions From Hallmark.

The brand, which will debut at the annual Food Marketing Institute convention in Chicago next week, began shipping to supermarket chains in January.

"The industry can't give itself a glowing report card right now in terms of growth. Growth has come through price, not units. In the long run I hope this [new strategy] is what helps breathe additional life into the category," Hawn told SN during a preview of the line at corporate headquarters here.

It's the company's first new branded card line since Ambassador was launched in 1959. With this move, Hallmark releases its name from the almost exclusive domain of its Gold Crown specialty card business to mass-market retailers. The company now begins pursuing a three-brand marketing approach with Hallmark cards and its two mass-market brands -- Ambassador and Expressions.

"With two programs now available to mass-market retailers, we can satisfy all the needs a supermarket might have in developing different marketing strategies," Hawn stated.

By the end of the year, 6,000 mass-market stores will be merchandising Expressions From Hallmark, and half of them will be grocery units, said Hawn. Drug accounts carrying the line will remain minimal, representing 5% to 10% of Expressions' business.

There is virtually no conversion cost to supermarkets that change over to Expressions, according to Hawn. Hallmark does the installation and supplies the fixtures and signage. However, Hallmark is looking for grocery accounts that have made a commitment to the category. One indication of commitment is space. The average Expressions department in supermarkets is running more than 100 square feet, Hawn added.

Hallmark also is looking for a retail partner to market the Hallmark brand. "More than ever, we want to work with the retailer to make sure we are promoting the brand in their stores and shout out to consumers through rotos and a variety of media that they can now find their brand of choice at their favorite supermarket," said Hawn.

Besides growing the category, Hallmark hopes to take market share away from its competitors by leveraging the equity and consumer recognition of the Hallmark name.

It also will take market share away from its Ambassador brand, which is presently a $1.7 billion business, said Hawn. "We have created a competitor for Ambassador. It will reduce the volume we do with Ambassador," he said, noting that Ambassador should eventually level out to $1 billion.

The difference Hallmark executives see between those buying Ambassador cards and those motivated to buy Expressions is one of price and convenience vs. quality and convenience.

"With Expressions we are appealing to somebody motivated by brand, and different varieties and selection of cards," said Hawn.

Hallmark executives can easily bombard a prospective retailer with brand-awareness statistics that tout consumers' high recognition and preference for products carrying the Hallmark name. Recognized by nine out of 10 consumers, Hallmark Cards is one of the most preferred brands in America, along with Mercedes-Benz and Disney, according to a 1996 EquiTrend survey that executives like to quote.

"Every company has to pick its strategy and our company has decided brands are important. We want to develop a brand image and brand expectations," said Hawn. "We've spent billions in the last 50 years advertising the Hallmark name."

The heavy investment in promoting the Hallmark name is another factor that distinguishes Expressions from Ambassador. Hallmark says it will spend $175 million on its national brand-insistence advertising campaign this year, which will affect Expressions.