Initiating a Research Effort The Process at Hallmark Cards, Inc.

Initiating a Research Effort

The Process at Hallmark Cards, Inc.

Process for Implementinga Research Project

Identify the objectives Agree on budget, schedule, priority Pick the methodology Design the sample Select a supplier Approve a Project Agreement Field the research Analyze the data Share the learnings Decide & act

Sponsorinvolvement

is needed here

It’s important to be clear on

who the sponsor is. Sponsors

need to own the research,

& partner with research in making key decisions.

• Business Objective -- What is the business issue that we are trying to address? (The sponsor communicates this.)

Examples:

– Bad: Let’s do 6 focus groups in Chicago next week.

– Good: How can we attract consumers back to the card shop?

1. Identify the Objectives

Sponsor involvement

• Research Objective -- What research measures need to be collected to address the business objective? (Research communicates this.)

Examples:

– Bad: We’re going to do a concept test.

– Good: Determine what motivates consumers to select retail stores for greeting cards.

• The sponsor needs to communicate the …– Budget: What is the budget available for this research? – Schedule: When does the sponsor need the results, given the

decision date?– Priority: How important is this research vs. other priorities?

• This discussion will influence research methodology.

2. Agree on the budget, schedule & priority

Sponsor involvement

3. Pick the Methodology

• Research determines the best method for collecting the data.

• Common research tools:

Qualitative Explore attitudes & “whys” behind behavior; not projectable

• Focus Groups • In-depth Interviews• Ethnography

Quantitative Quantify attitudes/behavior; projectable

• Purchase Diary • Tracker/A&U/Omnibus • Panel Test/Price sensitivity • Product Preference Test • Perception Analyzer • Department/Exit Interviews• Merchandising Test• Sales Analysis• Market basket analysis • Retailer survey• Brand extension

4. Design the sample • Screening:

– Category Usage?• Users• Non-Users

– Representative Sample vs. Target Consumers?• Representative Sample -- More projectable in forecasting retail viability & helpful in benchmarking over time• Target consumers -- OK if objective is fulfilling a niche need

– Demographics?• Age• Gender• Socio-economic

• Sample size:– Qualitative -- Generally <50– Quantitative -- Varies from ~150 to >1,000, depending on the method, budget, & need to drill down at a

low level.

• Research recommends this to the sponsor.

5. Select a supplier

• The Research Analyst communicates the research design specs to potential suppliers.

• The Research Analyst selects the supplier.

• Tips:– Low cost doesn’t always = best– Trusted, preferred suppliers can be a great help– Word-of-mouth is an important criteria

6. Approve a Project Agreement

• A Research Project Agreement is prepared by Research & signed by the sponsor. It contains …

– Background– Business & Research Objectives– Method/Screening – Success measures– Schedule – Cost – Signatures (research, sponsor)

• Why?– Helps manage expectations– It’s the sponsor’s opportunity to review/approve the

research plan

BUSINESS RESEARCH PROJECT AGREEMENTPr oject Name Pr oject No. Researc h T eam /Contact P erson Phone No. Mail Drop

B usiness Objectives

Remarks

Cost Estim ate

Research Analyst / Date Research Manager/ Date

Researc h RequesterPhone No. Mail DropRequesting De par tm ent

B ackground

Researc h Objecti ve s

T est Method

Research Team/Su pplier

Reque ster/Date General Manager/Date

Year Codes Payroll Non-P ayrol l Total

Oth er Hallm ark Divis ion

TOTAL

T ime li ne

St art :

Analysis:

Topline:

Report:

7536

#203

Ellen McKeever

7429/4793

#204Hallmark Everyday Cards

Everyday Card Total Product Solution Test

Everyday C ards Te am

Suppli er (E & L)

1995

1995

PD - ED

PD - ED

$4, 000 $4 ,500

$104,000

9/29/ 95

10/ 23/ 95-11 /16/95

11/ 10 (rep onl y)

12/ 11 / 95

$500

$104,000

$108,500$104,500$4, 000

95ED070

Determine consumers’ product preference and satisfaction with Hallmark brands and American Greetings brands of everyday greeting cards.

1. Determine consumers’ product preference and satisfaction with Hallmark brands and AG brands of everyday greeting cards . Key measures : - Hallmark brand vs. AG, Inc. (Carlton, AG, FMN) A . Crown vs. AG, Inc. ED Counter (Carlton, AG, FMN) B. Shoebox vs. AG, Inc. alternative humor (Marketplace, Just My Style, 78th Street) - Ambassador brand vs. AG, Inc. (Carlton, AG, FMN)2. Determine consumers’ satisfaction with their overall shopping experience in stores carrying Hallmark brands and AG brands.3. Assess consumer perceptions of product and store attributes for Hallmark brands and AG brands when shopping for ED cards.

• Respondents will be screened to have purchased greeting cards before in the two stores where they are asked to shop.• Respondents will be able to keep the card that they like the best for each sending situation that they shop for.• The test will be in the field from 9/29/95 to 10/21/95.• Product preference topline will be available 11/10 for total ED Cards , and 11/17 for alternative humor.

ED Card Team:Bruce Priday & Mark Morgan

In 1995, Hallmark Cards implemented a new methodology for measuring product preference -- rep lacing mock card shop stud ies with “total product so lution” stud ies, where consumers would be pre-recrui ted to shop both a Hal lmark Card, Inc. store and a re ta il outle tcarrying a key competitor. After the shopping trip, respondents would evaluate their overall product and store preference.

Rep. Sample: Phone recru it 300 qualified ED card buyers (85% female, 15% male) to shop for up to 6 everyday card needs in bothHallmark, Inc. (200 HMK and 100 AMB) and AG, Inc. stores. Respondents will b ring card purchases to a central location

faci lity for an interview. The study will be fie lded in 5 markets. An estimated 1,200 cards wil l be purchased for bothHallmark, Inc. and AG, Inc.

Humor Sample: 150 al ternative humor card buyers (75% female, 25% male) wil l be mall intercepted, and screened to purchase at least 3a lternative humor cards among 10 typica l cards purchased. Respondents wil l shop for up to 4 ED a lternative humorcard needs in both a Hal lmark and an AG, Inc. store. Respondents will b ring card purchases to a central location faci lityfor an interview. The study w ill be fie lded in 3 markets. An estimated 300 cards wil l be purchased for both Shoebox andAG, Inc. alternative humor brands.

Sponsor involvement

Look for what’s missing

“Many can tell how to improve what’s proposed or what’s gone amiss. Few are able to see what isn’t there.”

- Donald Rumsfled, Defense Secretary

7. Field the Research

• Qualitative– Sponsor’s role:

• Provide input for the discussion guide• Provide stimulus, as needed • Attend the qualitative research• Identify others who should attend• Debrief after the session

• Quantitative – Sponsor’s role:

• Provide input for the questionnaire• Provide stimulus, as needed• May need to help with the set up (e.g., mock shop, merchandising test)

Sponsor involvement

8. Analyze the Data

• Research works with the supplier to analyze the data and build a presentation.

• Topline learnings can be provided to the sponsor prior to the full report.

• Sponsors can preview the report prior to the presentation.

9. Share the Learnings• Qualitative & Quantitative

– When possible, sponsors should attend the presentation, ask questions, & discuss business implications.

– Consider getting an edited video tape from qualitative groups. This can be a powerful tool, but it adds cost and it’s time consuming.

• Documentation:– Research distributes a 1-page abstract with key research learnings.

– Past research reports are available on the Hallmark Intranet

(Consumer Research’s “Voice of the Marketplace”)

Sponsor involvement

10. Decide & act

• Research offers fact-based recommendations linked back to the Business Objective, & consults with the sponsor to interpret and leverage the research learnings.

• It’s the sponsor’s primary role to decide how to implement the research learnings and recommendations.

• Ask …– Were the objectives achieved?– Now what do we do about the research learnings?– Who else would benefit from seeing the results?

– Note: the more strategic the research, the more time it generally takes to apply the learnings to our business.

Sponsor involvement

A Hallmark Case Study

(the first part of the Project Agreement)• Background

• Business Objective• Research Objectives

•Methodology?

Background

As part of Hallmark’s Card Category Growth initiative, a study was needed to explore deeper the overall equity of greeting cards, as well as the hurdles, substitutes, and threats to card sending. What do heavy card givers really appreciate about giving cards? Do light card givers recognize/ appreciate the same things about the process?

Business Objective

Identify new consumer insights into the equity of greeting cards that could be applied to a campaign to enhance the Greeting Card Category.

Research Objectives• Explore current hurdles to category growth,

particularly among light card givers• Understand the substitutes to card sending• Explore the equity of greeting cards relative to

other communication choices• Understand the role that cards play in

consumers’ everyday lives• Explore the impact of card sending among

recipients of cards

Questions:

• What would you - as researchers - need to know to get at the issue at hand?

• What qualitative methodology(ies) might you recommend to Hallmark?

• What else should be included in the research plan?

• How would you proceed with analysis?