Market Analysis-Us Greeting Cards

Topics: Greeting card, American Greetings, Greeting cards Pages: 31 (7448 words) Published: February 2, 2007

Table of ContentsPage

1.0Company Overview03

2.0Business Segments and Company Products03

3.0Market Definition04

3.1Market Codes04
3.2Market Price and Greeting cards sales by category04
3.3Market Value05
3.4Market Forecast06
3.5Company Financials07
3.6Market Segmentation07
3.7Competitive Landscape & Market Share09

4.0Market Structure-Porter's Five Forces10
4.1Bargaining Power of Buyers10
4.2Power of Suppliers11
4.3Value Chain and Product Cycle12
4.4Threat of New Entrants13
4.5Threat of Substitutes14
4.6Competitor Rivalry14

5.0 Market Demand Drivers16

1.0 Company Overview

Founded in 1906, American Greetings Corporation and its subsidiaries operate predominantly in a single industry; the design, manufacture and sale of everyday and seasonal greeting card and other social expression products. Greeting cards, gift wraps, party goods, candles, balloons, stationery and giftware are manufactured and sold by American Greetings and/or its subsidiaries in the United States and through out the world, primarily in Canada, the United Kingdom, Mexico, Australia, New Zealand and South Africa. American Greetings is headquartered in Cleveland, Ohio and employs approximately 26,900 employees worldwide.

The major domestic greeting card brands are Carlton, American Greetings and Gibson. American Greetings Corporation services approximately 70,000 retail stores in the United States and 125,000 worldwide.

As of February 28, 2005, the corporation also owned and operated 542 card and gift shops throughout North America. The corporation's fiscal year ends in February.

In addition, AG Interactive Inc., (89.9% owned by the corporation) markets e-mail greetings, personalized printable greeting cards and other social expression products through the corporation's website,, and In 2005, AG Interactive launched its AG Mobile unit which specializes in distribution of ring tones for cellular telephones, graphics, games, alerts, and other social messaging products. The company also acquired K-Mobile in May, 2004 to bolster the mobile content business in the European Market.

American Greeting subsidiary, Learning Horizons, Inc. distributes supplemental educational products.

Design licensing and Character licensing are primarily done by another subsidiary AGC Inc. and Those Characters From Cleveland Inc. respectively.

The Hatchery, LLC, another subsidiary, also develops and produces original family and children's entertainment for all media.

Chairman Morry Weiss and his family control 25% of American Greetings' voting power. Weiss stepped down as CEO in 2003, but remains on the board. His sons, Zev and Jeff, have taken on the roles of CEO and president, respectively.

2.0 Business Segments and Company Products:

The main four Business Segments are Social Expressions Products, Retail Operations, AG Interactive and Non Reportable Operating Segments.

The main products are the following:

•Everyday and Seasonal Greetings Cards (Brands: American Greeting, Carlton, Gibson, John Sands, Plus Mark)

•Digital and Mobile Products (E-cards and Wireless content) Specialty Products are:

•AGI Schutz (retails display fixtures)
•Balloon Zone - Balloons
•Creatables - Paper-crafting products
•DateWorks - Calendars
•Designers' Collection - Stationery
•DesignWare - Party goods
•GuildHouse - Candles
•Heirloom Collection - Ornaments
•Learning Horizons - Educational products
•Sticketey-Doo-Da – Stickers


•Care Bears
•The Get Along Gang
•Holly Hobbie
•Mary Oku Yummy
•My Pet Monster
•Paintbox Studios
•Strawberry Shortcake
•Sugar Sonic
•Twisted Whiskers

3.0 Market Definition

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