Executive Summary

• The Products
• The Golden Age
• The Mid-Eighties Price War
• Greeting Cards as Social Expressions
• Seasonal vs. Everyday Cards
• Occasion vs. Nonoccasion Cards
• Traditional vs. Alternative Cards
• The Proliferation of Situations
• The Market
• Retail Sales Reach $7.3 Billion in 1997
• Unit Sales Drop to 7.1 Billion
• Limited Scope for Growth
• An $8.3 Billion Market by 2002
• Table 1-1: U.S. Retail Sales of Greeting Cards, 1993.... 2002 (dollars)
• Seasonal Cards Account for 57% of Unit Sales
• Christmas Cards Make Up 37% of Unit Sales
• Alternative Category Share Is Substantial
• Per-Capita Consumption by Age Bracket
• The Marketers
• Hallmark Claims 42% of Market
• Figure 1-1: The U.S. Greeting Card Market: Marketer Shares, 1997 (percent): Hallmark, American Greetings, Gibson Greetings, Recycled Paper Greetings, Other
• One-Stop Shopping Alters the Market
• Marketers Nurse the Virtual Marketplace
• Micromarketing
• Value Pricing and Value Added
• The Alternatives Proliferate
• Licensed to Sell
• Ethnographics
• Photo Frenzy
• Pet Profits
• Cards for Chefs
• Hallmark the Big Advertising Spender
• Distribution and Retail
• Forward Contracting and Mass-Market Control
• Figure 1-2: Unit Share of Everyday Card Sales by U.S. Retail Channel, 1997 (percent): 4 Retail Channels
• The Hallmark Question
• Top Seasonal and Non-Seasonal Occasions
• The 65%-20%-80% Formula
• Mass-Merchandiser Sales Grow with Sector
• Marketers Underwrite Drugstore Health
• Supermarkets Commit to Greeting Card Fray
• The Consumer
• Two-Thirds of Adults Purchase Greeting Cards
• Women Carry the Market
• Hispanic Males Are Better Customers
• Women Age 35.... 65 Are Core Purchasers
• Egalitarian Purchasing Patterns..So Far
• Employment Status a Key Factor
• Professional Women and Internet Purchasing
• Scope and Methodology
• Market Parameters
• Report Methodology

The Products

• Introduction
• Scope of Report
• Definition of Greeting Card
• Historical Notes
• Turn of the Century Trailblazers
• The Post-War Boom and Boomers
• The Mid-Eighties Price War
• Greeting Cards as Social Expressions
• Product Characteristics
• The Classic Format
• Production Values
• Counter vs. Boxed Cards
• Personalized Greetings
• From Kiosks to CD-ROMS
• Internet and E-Mail Cards
• Cause Cards
• Other Specialty Cards
• Seasonal vs. Everyday Cards
• Table 2-1: The U.S. Greeting Card Market: A Seasonal Card Calendar, 1998 (type of card, calendar date, and demographic orientation)
• Occasion vs. Nonoccasion Cards
• Traditional vs. Alternative Cards
• Beyond Alternative
• Regular vs. Temporary Lines
• The Proliferation of Situations

The Market

• Figure 3-1: U.S. Retail Sales of Greeting Cards, 1993-1997 (dollars)
• Market Size and Growth
• Retail Sales Reach $7.3 Billion in 1997
• Table 3-1: U.S. Retail Sales of Greeting Cards, 1993-1997 (dollars)
• Unit Sales Drop to 7.1 Billion
• Table 3-2: U.S. Unit Sales of Greeting Cards, 1993-1997
• Market Composition
• Seasonal Cards Account for 57% of Unit Sales
• Figure 3-2: Share of U.S. Unit Sales: Seasonal Cards vs. Everyday Cards, 1997 (percent)
• Christmas Cards Make Up 37% of Unit Sales
• Seasonal Card Unit Sales Decline by 4%
• Table 3-3: U.S. Unit Sales of Selected Seasonal Greeting Cards, 1994 vs. 1997 (percent and numbers): 12 Card Types
• Alternative Category Share Is Substantial
• Card and Gift Stores Claim 34% of Everyday Unit Sales
• Table 3-4: The U.S. Greeting Card Market: Unit Share of Everyday Card Sales by Retail Channel, 1993-1997 (percent): Card and Gift Stores, Mass Merchandisers, Drugstores, Supermarkets, Other
• Women Make 85%-90% of Greeting Card Purchases
• 55.... 64 Age Bracket Ahead in Per-Capita Consumption
• Table 3-5: Per-Capita Consumption of Greeting Cards by Age Bracket, 1996 (number): From Age Under 18 to Age 65+
• 65 or Over Group Claims 21.7% of Total Consumption
• Table 3-6: Unit Share of Greeting Card Sales by Age Bracket, 1996 (percent): From Age Under 25 to Age 65+
• Mountain States Account for 24% of Supermarket Share
• Table 3-7: Supermarket Share of Everyday Greeting Card Sales by U.S. Region, 1997 (percent): 9 U.S. Regions
• Factors to Market Growth
• Limited Scope for Growth
• Aging of America Is Good News
• Table 3-8: Projections of U.S. Population by Core Greeting Card Consumer Age Brackets, 1997.... 2002 (number and percent): From Age 45 to Age 65+
• Per-Capita Trends Less Positive
• Table 3-9: Per-Capita Consumption of Greeting Cards: By Age Bracket, 1994 vs. 1996 (number): From Age 18 to Age 65+
• Marketing to Grandparents
• The Generation X Factor
• Ethnic Consumers in the Demographic Limelight
• Table 3-10: Share of U.S. Population by Ethnic Origin, 1997 vs. 2002 (percent): 5 Ethnic Origins
• A Better Breed of Ethnic Cards
• Other Alternative Cards Also Spur Market
• Marketers Highlight Everyday Cards
• Wider Retail Exposure Expands Sales
• The Mass-Market Emphasis
• The Impact of Micromarketing
• Getting Time on Their Side
• Corporate Bedfellows Spawn Profits
• Forward-Contracting and Master Distributorships
• One-Stop vs. Specialty Shopping
• Discounting and the Bottom Line
• Paper Costs, Retailer Payments, and Product Prices
• The Role of Post Office Policies
• Adding E-Mail to the Equation
• Internet and Software Greetings
• Women and the Internet
• Corporations as Online Customers
• Figure 3-3: Projected U.S. Retail Sales of Greeting Cards, 1997-2002 (dollars)
• Projected Market Growth
• An $8.3 Billion Market by 2002
• Table 3-11: Projected U.S. Retail Sales of Greeting Cards, 1997-2002 (dollars)
• Unit Sales to Stabilize at 6.8 Billion
• Table 3-12: Projected U.S. Unit Sales of Greeting Cards, 1997-2002

The Marketers

• The Marketers
• Over Eighteen Hundred Marketers
• A Top-Heavy Market
• Table 4-1: Selected U.S. Greeting Card Marketers
• The Competitive Situation
• Hallmark Claims 42% of Market
• Figure 4-1: The U.S. Greeting Card Market: Marketer Shares, 1997 (percent): Hallmark, American Greetings, Gibson Greetings,
• Recycled Paper Greetings, Other
• Big Three Balance of Power
• One-Stop Shopping Alters the Market
• Hallmark: A Leader in a Shifting Environment
• Ambassador: A Brand Without a Slogan
• Just Scream Hallmark
• Hallmark Breaks Through
• American Greetings: One-Stop Shopping Meets Full-Service Supplier
• The All New American Way
• Gibson: On the Rebound
• Mergers and Acquisitions
• The British Are Coming
• Other Marketers, Other Markets
• The Direct Marketplace: Flexing Muscle or Elbowing In
• Competitive Focus: The Virtual Marketplace
• Marketers Nurse the Virtual Marketplace
• The Hallmark Connection
• American Greetings Signs On
• Gibson Online
• Greet Street Greeting Cards
• Offers on the Internet
• Competitive Profile: Hallmark Cards, Inc
• Company Overview
• Divisions, Subsidiaries, and Affiliates
• A Leader in Advertising
• Hallmark Cards and the Computer
• A Well-Scrubbed Corporate Culture
• Hallmark Card Lines; Crown Brand Boasts Wide Spectrum
• Table 4-2: Hallmark Crown: Representative Greeting Card Lines
• Hallmark's Ambassador Card Lines
• Table 4-3: Ambassador: Representative Greeting Card Lines
• Competitive Profile: American Greetings Corp
• Company Overview
• Domestic and Foreign Affiliates
• Revenues Breakout
• Mass-Market Concentration
• Advertising Promotes Everyday Cards
• Computer Greeting Cards
• Those Characters from Cleveland
• Greeting Card Lines
• Table 4-4: American Greetings/Forget Me Not: Representative Greeting Card Lines
• Competitive Profile: Gibson Greetings, Inc.
• Company Overview
• Affiliates and Acquisitions
• Sales Figures Reflect Corporate Woes and Wins
• Restructuring and Outsourcing
• The Relativity Program
• Greeting Card Lines
• Table 4-5: Gibson Greetings: Representative Greeting Card Lines
• Competitive Profile: Recycled Paper Greetings
• Company Overview
• An Alternative Background
• 98% Funny
• Freelance Artists and Greeting Card Lines
• Table 4-6: Recycled Paper Greetings: Representative Greeting Card Lines
• Competitive Briefs
• Andrews McMeel Universal
• Table 4-7: Andrews McMeel Universal: Representative Greeting Card Lines
• Blue Mountain Arts, Inc.
• Table 4-8: Blue Mountain Arts: Representative Greeting Card Lines
• Cyn's Creations
• Table 4-9: Cyn's Creations: Representative Greeting Card Lines
• EthnoGraphics
• Table 4-10: EthnoGraphics: Representative Greeting Card Lines
• Healthy Planet Products, Inc
• Table 4-11: Healthy Planet Products: Representative Greeting Card Lines
• Leanin' Tree, Inc.
• Table 4-12: Leanin' Tree: Representative Greeting Card Lines
• Marian Heath Greeting Cards, Inc
• Table 4-13: Marian Heath: Representative Greeting Card Lines
• Peaceable Kingdom Press
• Table 4-14: Peaceable Kingdom Press: Representative Greeting Card Lines
• Renaissance Greeting Cards, Inc.
• Table 4-15: Renaissance: Representative Greeting Card Lines
• Marketing and New Product Trends
• Micromarketing
• Value Pricing and Value Added
• Green Marketing
• New Products Are Industry Lifeblood
• Alternatives Proliferate
• Licensed to Sell
• Table 4-16: The Big Three Greeting Card Marketers: A Matrix of Selected Licenses (Hallmark, American Greetings, and Gibson)
• Special-Technology and Novelty Cards
• Romance, Relationships, and Retro-Victorian
• Ethnographics
• Age-Group Targeting
• Spirituality in America
• Photo Frenzy
• Less Is More: Blank and Short-Copy Cards
• Nostalgia Is Back
• Pet Profits
• Cards for Chefs
• Business Cards
• Table 4-17: The U.S. Greeting Card Market: Selected Recent and New Product Introductions
• Consumer Advertising and Promotion
• Hallmark the Big Advertising Spender
• American Greetings Ups the Stakes
• Gibson Joins Fray
• Consumer Advertising Positioning
• Working the Hallmark Slogan
• Shoebox Campaign Revived
• The Hallmark Hall of Fame
• The Gold Crown Card Program
• Computer Products Advertising
• Other Consumer Promotions
• Examples of Consumer Advertising and Promotions
• Trade Advertising and Promotion
• Trade Advertising Crucial for Most
• A Variety of Positionings
• Big Three Advertisements
• The Role of Trade Shows
• Examples of Trade Advertising

Distribution And Retail

• At the Distribution Level
• Distribution Methods
• Micromarketing of Inventories
• Marketer Policies and Retailer Payments
• Forward Contracting and Mass-Market Control
• Minor Marketers and Musical Chairs
• At the Retail Level
• Ranking of Retailers
• Figure 5-1: Unit Share of Everyday Card Sales by U.S. Retail Channel, 1997 (percent): 4 Retail Channels
• Spectrum of Retailers
• Average Unit Price at $1.03
• Table 5-1: The U.S. Greeting Card Market: Average Unit Price, 1993-1997
• Margins Average 50%
• The Well-Stocked Store
• The Wheel of Promotion
• Everyday Discounting of Counter Cards
• Boxed Cards Go Begging
• Added Visibility Brightens Sales
• Retail Focus: Card and Gift Stores
• A Sector Under Pressure
• The Hallmark Question
• Gold Crown Card Success
• Recycled Paper Greetings and ROCS
• American Greetings Tests the Waters
• Specialty Marketers for Specialty Outlets
• Something Different
• Top Seasonal and Non-Seasonal Occasions
• Verse vs. Price
• Retail Focus: Mass-Market Outlets
• The 65%-20%-80% Formula
• One on One
• The Menu of Marketer Services
• Card Departments Allotted Up to 300 Linear Feet
• High Margins + High Turns = High Profits
• Stores-Within-a-Store, Boutiques, and Theme Parks
• Location, Location
• The Mass Market Goes Alternative
• Seasonal and Special-Occasion Promotions
• The Outposting and Cross-Merchandising Advantage
• The Couponing Option
• Mass-Merchandiser Sales Grow with Sector
• Marketers Underwrite Drugstore Health
• Supermarkets Commit to Greeting Card Fray
• Card and Party Discount Outlets
• An Expanding Range
• Retail Focus: Alternative Venues
• The Internet as Outlet
• E-Mail and Computer Software Prices
• Channel Conflicts?
• The Home as Outlet

The Consumer

• Consumer Overview
• Two-Thirds of Adults Purchase Greeting Cards
• Women Carry the Market
• Hispanic Males Are Better Customers
• Women Age 35.... 44 Are Largest Purchaser Segment
• Egalitarian Purchasing Patterns..So Far
• Employment Status a Key Factor
• Professional Women and Internet Purchasing
• Women Dominate Purchasing Across Card and Retailer Types
• Ethnic Purchasers by Card Type
• Reprint: Simmons Consumer Survey
• Note on Reprint
• Simmons Market Research Bureau Data
• 71% of Adults Are Purchasers
• Table 6-1: The U.S. Greeting Card Market: Purchasing Indices of Selected Demographic Groups, 1994 (U.S. Adult Population)
• Indicators and Resisters for Overall Market
• Purchasers by Gender: 79% of Women, 63% of Men
• Indices for Women Remain Consistent Across Income Levels
• Employment Status Is Most Significant Factor for Women
• "Post-Married" Women Are Prime Consumers
• Employment Status Also Most Significant Indicator for Men
• Other Indicators for Male Consumers
• Table 6-2: The U.S. Greeting Card Market: Demographic Characteristics Favoring Purchase, 1994 (U.S. Adult Population): All Adults, Females, Males Purchase by Card Type
• Table 6-3: The U.S. Greeting Card Market: Seasonal and Everyday Card Usage Levels by Amount Purchased, 1994 (percent): 11 Types of Cards
• 66% of Adults Buy Birthday Cards
• 65% Buy Christmas, Hanukkah, or New Year's Cards
• Table 6-4: The U.S. Greeting Card Market: Holiday Card Usage Levels by Amount Purchased, 1994 (percent and number)
• 73% of Women, 56% of Men Purchase Holiday Cards
• 41% Buy Mother's Day/Father's Day Cards
• 37% Buy Valentine's Day Cards
• 35% Buy Wedding/Anniversary Cards
• 30% Buy Get Well Cards
• 27% Buy Sympathy Cards
• 20% Buy Graduation Cards
• 19% Buy Friendship Cards
• 19% Buy Easter Cards
• 16% Buy Thanksgiving Cards
• 12% Buy Halloween Cards
• Table 6-5a: Demographic Characteristics Favoring Purchase of Birthday Cards: All Users vs. Heavy Users, 1994 (U.S. Adult Population)
• Table 6-5b: Demographic Characteristics Favoring Purchase of Holiday Cards: All Users vs. Heavy Users, 1994 (U.S. Adult Population)
• Table 6-5c: Demographic Characteristics Favoring Purchase of Mother's Day/Father's Day Cards: All Users vs. Heavy Users, 1994 (U.S. Adult Population)
• Table 6-5d: Demographic Characteristics Favoring Purchase of Valentine's Day Cards: All Users vs. Heavy Users, 1994 (U.S. Adult Population)
• Table 6-5e: Demographic Characteristics Favoring Purchase of Wedding/Anniversary Cards: All Users vs. Heavy Users, 1994 (U.S. Adult Population)

Table 6-5f: Demographic Characteristics Favoring of Purchase Get Well Cards: All Users vs. Heavy Users, 1994 (U.S. Adult Population)

• Table 6-5g: Demographic Characteristics Favoring Purchase of Sympathy Cards: All Users vs. Heavy Users, 1994 (U.S. Adult Population)
• Table 6-5h: Demographic Characteristics Favoring Purchase of Graduation Cards: All Users vs. Heavy Users, 1994 (U.S. Adult Population)
• Table 6-5I: Demographic Characteristics Favoring Purchase of Friendship Cards: All Users vs. Heavy Users, 1994 (U.S. Adult Population)
• Table 6-5j: Demographic Characteristics Favoring Purchase of Easter Cards: All Users vs. Heavy Users, 1994 (U.S. Adult Population)
• Table 6-5k: Demographic Characteristics Favoring Purchase of Thanksgiving Cards: All Users vs. Heavy Users, 1994 (U.S. Adult Population)
• Table 6-5L: Demographic Characteristics Favoring Purchase of Halloween Cards: All Users vs. Heavy Users, 1994 (U.S. Adult Population)
• Reviewing the Gender Gap: A Closer Look at Indicators and Resisters
• Reviewing the Gender Gap: A Closer Look at Employment and Occupational Factors
• Table 6-6: The Gender Gap: Greeting Card Purchasing Indices by Employment and Occupational Status, 1994
• Reviewing the Gender Gap: Usage/Heavy Usage Across Card Types
• Table 6-7: The Gender Gap: Overview of Usage by Greeting Card Type, 1994 (percent): 12 Types of Card

Appendix II Addresses Of Selected Marketers And Sources