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

3. Process for Implementing a Research Project ÊIdentify the objectives ËAgree on budget, schedule, priority ¸Pick the methodology ÍDesign the sample ÎSelect a supplier ÏApprove a Project Agreement ÐField the research ÑAnalyze the data ÒShare the learnings ÓDecide & act Sponsor involvement 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.

4. 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.

5. 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

6. 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

7. 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.

8. 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

9. 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 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

10. 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

11. 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.

12. 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 theHallmark Intranet (Consumer Research’s “Voice of the Marketplace”) Sponsor involvement

13. 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

14. A Hallmark Case Study (the first part of the Project Agreement) Background Business Objective Research Objectives Methodology?

15. 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?

16. 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.

17. 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

18. 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?