MARKETING PLAN: OOAK (ONE OF A KIND)

KAYLI CHEN

RIVERDALE COLLEGIATE INSTITUTE

MARKETING
BMI3C1-04
MS. BURBANK
FRIDAY, MAY 29TH, 2015
 Executive Summary

As of current day, Hallmark and American Greetings are the largest competitors in the

greeting card industry, with a total market share of 75%. However, OOAK (One of a Kind) is

believed to have the potential to compete alongside these major companies. Two of their

largest goals consist of raising the popularity of DIY projects/products (150,000 “likes” on

Facebook over the course of 1 year), as well as raising a total of $80,000 for local charities over

the timespan of 2 years. Their target market mainly consists of teenagers and adults (ages 14-

35) with a low-mid income level. In terms of sustainable advantages, OOAK makes use of cost

advantage, as well as niches. In terms of non-sustainable advantages, OOAK makes use of

promotion, quality, design features, benefits of use, and placement. The company hosts many

workshops in the community and while doing so, they also look for potential employees. Their

slogan is “creativity in your hands”. In terms of pricing, OOAK uses the methods of competitive

pricing (when the price of a product or service is based on what the competition is charging.),

psychological pricing (when the price is of a product is based on the theory that

certain prices have a psychological impact), and purchase discounts (an offer from the supplier

to the purchaser, to reduce the price of a product). Their largest channel of distribution is E-

commerce and they sell directly to the customer. Since their target market is experienced with

electronic communication, many of their advertisements are found on social media sites, such

as Facebook, Twitter, Instagram and YouTube. The official launch of their store will be on June

28th and will feature a special visit by Taylor Swift, as she is an endorser of the company.

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 Table of Contents

Goals and Strategies 3

Consumer Profile 4

Competitive Market 6

Marketing Strategies – Product 8

Marketing Strategies – Price & Place 9

Marketing Strategies – Promotion 11

Appendix 13

Target Market Poster 14

Promotion Timeline & Cost Breakdown 15

Promotional Activities 16

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 Goals and Strategies

OOAK (One of a Kind) is a Canadian gift shop that sells handmade/personalized cards for

various events and promotes DIY projects. The cards may be bought before or after assembly

and there are many tutorials available for customers to view. The company hosts many

workshops in the community and while doing so, they also look for potential employees. They

are a member of the greeting card industry, which is currently dominated by Hallmark Cards and

American Greetings. Both of these competitors use multiple marketing strategies, such as the

use of coupons/discounts and endorsements. They also make use of the internet, as well as

partnerships. In Canada, the industry makes a revenue of $559 million per year.

One of OOAK’s current goals is to reach a total of 150,000 “likes” on Facebook over the

course of 1 year. By doing so, they will be able to raise the popularity of their DIY products. In

order to accomplish this goal, the company plans to host multiple workshops within the

community, such as schools. They also plan to purchase online advertising spots on popular

social media sites, such as YouTube. Furthermore, the company plans to hold online giveaways

on their Facebook page, while ensuring that they post regular DIY tutorial videos/tips & tricks.

OOAK’s second goal is to raise $80,000 for Save the Children and other local charities

over the course of 2 year. In order to accomplish this goal, the company plans to ask for

donations on their Facebook page, as well as during workshops. The company also plans to

place donation bins around the store. Moreover, the company plans to donate a portion of sales

to charity. The current value that is being considered is 10%.

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 Consumer Profile

In terms of demographics, the target market for OOAK mainly consists of teenagers and

adults (ages 14-35). Young children and the elderly are not included within the target market

because they do not usually worry about purchasing gifts for other people and therefore, would

find no appeal in the product. With regard to gender, both men and women are in the target

market, as there are many different versions of the product that would appeal to both sexes.

Additionally, the product is targeted towards people with a low or mid income level, since it is

not expensive (generally $2-$8 per card/gift). The product would be desired by people with

many family members, as they would able to purchase/create gifts for loved ones fairly easily.

Moreover, the product is targeted towards consumers with an Americanized culture. This is due

to the fact that in Canada, gifts/cards are often exchanged between friends and family. As a

result, gift shops have become very useful and popular.

In terms of psychographics, the target market of OOAK mainly consists of people who

live a very busy/fast paced lifestyle, but still wish to be creative. This is due to the fact that many

people do not have enough time to create presents from start to finish and because of this,

make use of gift shops. Additionally, the product is meant for people who believe in family

bonds, friendship, and love. This is due to the fact that people who are very loving will often

attempt to purchase meaningful gifts for their family or friends. Furthermore, the product is

targeted towards people who celebrate religious holidays. This is because of the fact that they

often purchase gifts for various occasions. The product is also meant for people who think that

gifts should be meaningful and are supportive of DIY products/handmade gifts. In terms of

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geographics, the target market of OOAK consists of urban and suburban areas. This is due to the

fact that the consumers in urban/suburban areas are the most exposed to gift shops.

This target market has been chosen due to various reasons. For example, the target

market is very large and because of this, provides many opportunities for sales. Furthermore,

the target market is experienced with electronic communication, which is a large aspect of

OOAK’s marketing plan. Additionally, the target market was chosen due to the fact that it covers

a large group of people with a common interest (arts & crafts). According to Maslow’s hierarchy

of needs, humans seek for acceptance and love. As a result, many customers seek for products

that will in return, provide them with a stronger relationship. Due to this reasoning, customers

will be motived to purchase products from OOAK, as they will provide the consumers with

happiness and a sense of love. Likewise, customers will be motivated to purchase the product

because it is unique, time efficient, cheap, and creative. Finally, in terms of motivational

theories, customers will be emotionally and socially motived to purchase products from OOAK.

This is due to the fact that humans seek for happiness and love, which ultimately creates an

emotional motivation to purchase gifts for other people. Similarly, humans want to strengthen

their relationships with friends/family, which results in a social motivation

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 Competitive Market

OOAK is a member of the greeting card industry, which is an oligopoly. An oligopoly is a

state of limited competition, in which a market is shared by a small number of producers or

sellers. In the greeting card industry, Hallmark and American Greetings are the largest

competitors and share 75% of the market. Every year, approximately 6.5 billion greeting cards

are sold and approximately $7-$8 billion are made in retail sales. In Canada alone, the industry

makes a revenue of $559 million per year.

In terms of sustainable advantages, OOAK, Hallmark, and American Greetings share

some similarities. For example, they are capable of filling many of the niches that are available

within the greeting card industry. Some of the niches include: custom business greeting cards,

doctors, humor, addiction recovery, pets, artwork, oddities, character licenses, specialty die-cut

greeting cards, and specific professions. Furthermore, both Hallmark and American Greetings

have customer loyalty. American Greetings was founded in 1906 and Hallmark was founded in

1910. Since then, both of the companies have flourished and gained customers who constantly

make returning purchases. However, despite lacking customer loyalty, OOAK is able to recover

sales with their cost advantage and unique business aspects. For example, every single card that

is made by OOAK is one of a kind and holds a sentimental value. This is not easily copied by

other companies, especially larger ones. Moreover, a large majority of the materials used by

OOAK are recycled and thus, create products that may be sold for a cheaper price.

In terms of non-sustainable advantages, OOAK, Hallmark, and American Greetings also

share many similarities. For example, the companies are currently hosting promotional events.

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Hallmark is hosting an event where customers save 20% on personalized card orders when using

the code BLOOM20, American Greetings is hosting an event where customers save 50% on

party supplies when using the code FROZEN50, and OOAK is hosting an event where customers

receive 2 birthday cards for the price of one. In terms of design features, both Hallmark and

American Greetings offer personalized cards with recordable video/talking. OOAK on the other

hand, offers cards with special slots for secret messages and/or pictures. As for placement, both

Hallmark and American Greetings offer international purchases with their printable e-cards,

whereas OOAK hosts many workshops that take place in local schools/community centres and

attempt to make sales while providing information. In regards to quality, Hallmark offers laser

cut cards with premium paper and OOAK offers handmade cards that are one of a kind. Finally,

in terms of benefits of use, OOAK donates a portion of the money earned towards local charities

and thus, creates a sense of accomplishment for the customers.

In conclusion, despite having very strong competitors, it is believed that OOAK has the

ability to compete well in the greeting card industry. This is due to the fact that OOAK has

sustainable advantages such as niche and cost advantage, as well as non-sustainable advantages

such as promotion, quality, design features, benefits of use, and placement.

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 Marketing Strategies – Product

OOAK (One of a Kind) is a Canadian gift shop that sells handmade/personalized cards for

various events. The company strongly promotes DIY projects/products and uses online

communication as a method of marketing. The cards may be bought before or after assembly

and there are many tutorials available for customers to view (on their Facebook page and

YouTube channel). The company hosts many workshops in the community and while doing so,

they also look for potential employees. Their slogan is “creativity in your hands”.

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 Marketing Strategies – Price & Place

In terms of price, major competitors typically charge $3-$8 dollars for a single card.

However, OOAK rarely charges more than $5. This method of pricing is known as competitive

pricing, which is when the price of a product or service is based on what the competition is

charging. Another method of pricing that is used by OOAK is psychological pricing, which is

when the price is of a product is based on the theory that certain prices have a psychological

impact (e.g. $3.99). The third method of pricing that is used by OOAK is purchase discount,

which is an offer from the supplier to the purchaser, to reduce the price of a product.

Occasionally, OOAK sells 2 cards for the price of one.

OOAK is advantaged in the sense that their product is cheap to make. On average, it

costs the company less than $1 to create a card. Since this value is so low, the mark-up is 300%.

This means that the sales price is approximately $4. Over the time span of one year, it is hoped

that a profit of $200,000 will be made. The target market will consist of teenagers and young

adults with a low-mid income level. It is assumed that customers will find the price of the

product worthwhile, due to the fact that each card is handmade and one of a kind.

In terms of distribution channels, there are a few possibilities for OOAK to consider. It is

guaranteed that OOAK will sell directly to the consumer and through E-commerce. This is due to

the fact that OOAK has a store located in Toronto, as well as an online shop. However, it is also

possible for OOAK to sell to retailers, wholesalers, or importers. Moreover, it is possible for

OOAK to make sales through television ads. It is, however, unusual to see television ads for

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greeting cards. Some of the channels of distribution that will not be used by OOAK consist of

vending machines, catalogues, and telemarketing.

The selected channels of distribution will reach a large number of consumers, as many

people use the internet on a daily basis. Furthermore, the local market for greeting cards is

fairly large and customers typically make purchases on impulse. The product is not a seasonal

item, and thus, will result in revenue all year round. Moreover, the product is approximately 5"

by 7" and weighs less than an ounce. This is an advantage for OOAK, as distribution will be a

simpler task. Lastly, the product does not spoil, which is also an advantage for OOAK.

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 Marketing Strategies – Promotion

The target market for OOAK mainly consists of teenagers and adults (ages 14-35). Due to

this reasoning, many of the appropriate media venues will consist of online websites. For

example, Facebook, Twitter, Instagram, Snapchat, and YouTube will be very important aspects of

the marketing plan. This is due to the fact that teenagers and adults from the current generation

tend to check social media websites very frequently. On April 1 st, the company’s Instagram

account, YouTube channel, and Facebook page will be launching. This will mark the beginning of

OOAK’s entrance into the greeting card industry and will also assist with creating a good first

impression for the target market by displaying creativity.

Additionally, on April 10th, advertisements will be launched on the various social media

sites that were previously mentioned. This will help with increasing the number of followers on

the social media accounts owned by OOAK. In turn, this will assist with accomplishing the

company’s goal of raising the popularity of DIY projects/products. On April 18th, OOAK will also

be posting a mini web series called “MakeShift” on their YouTube channel. During the episodes,

customers will be given a preview of the many different cards that will be sold in stores, as well

as tutorials and step by step instructions on how to make them. On occasion, some videos will

feature hidden codes that allow customers to enter for a chance to win their very own DIY kit,

curtesy of OOAK. This will further popularize homemade gifts, as well as OOAK as a company.

In terms of prices, YouTube advertisements cost 10 cents per view, and Facebook

advertisements are priced at a dollar per day, with the option of paying more money in

exchange for larger ads. Relatively speaking, these prices are rather low in comparison to the

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prices for billboards, commercials, and magazine advertisements. A single billboard is priced at

$500, a commercial is typically priced at $200 to $1,500 ($342,000 for national), and a magazine

advertisement is typically priced at $500 to $20,000 ($500,000 for national). In order to target

those who do not use the internet, magazine ads will be launched on May 1st. Moreover,

billboards will be launched on May 18th, and television commercials will be played from June 1st

to June 27th. By launching these advertisements, the anticipation for OOAK will continue to

build. The target market will also be encouraged to attend the grand opening.

On June 28th, the grand opening/launch of OOAK will feature a special visit by Taylor

Swift, as she is an endorser of the company. Since Taylor Swift is a fan of homemade cards, she

will be able to increase the popularity of the company very easily. During her visit, various

activities and workshops will also be held to promote the creation of unique, handmade

products. The grand opening/launch has been specifically placed on June 28 th due to the fact

that school will be over and students will be able to attend the event. On July 1 st, a video of a

tour of the store will be posted on the company’s YouTube channel. This is to ensure that the

attention of the target market is on OOAK. Additionally, on July 18th, the company will begin to

visit local community centres. During the visits, members of the community will be asked to

make donations towards local charities and will also be given an opportunity to make their very

own cards with the assistance of OOAK employees. Moreover, they will be given a coupon that

offers 20% off their next purchase of greeting cards. This community tour will increase the

awareness of the company and will also help with accomplishing their goal of raising $80,000

for Save the Children, as well as other local charities.

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Appendix

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Target Market Poster

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 Promotion Timeline & Cost Breakdown
Cost Breakdown
Promotion Price
YouTube advertisements $20,000
Facebook advertisements $10,000
Billboards $10,000
Commercials $342,000
Magazine advertisements $100,000
Workshops $2,000
Contests/Giveaways $4,000
Taylor Swift endorsement $500,000
Total $1,000,000

Timeline

April: 1 – Instagram account, YouTube channel, and Facebook page launch

10 – Instagram, YouTube, and Facebook ads launch
18 – Mini Web Series release
May: 1 – Magazine ads launch
18 – Billboards launch
June: 1 – Commercials launch
28 – Grand Opening (Taylor Swift visit, activities for kids, giveaways, coupons)
July: 1 – Store tour video releases
18 – Community tour begins

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 Promotional Activities

URL: https://instagram.com/ooak_company

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