GiftAmerica Experience

by Gaye Praml Fontoura

After a career in advertising and publicity writing in NYC, I was hired by a Mr. Levine, Advertising Manager of GiftAmerica in Upper Saddle River, NJ.  I was to be his assistant, writer of the newsletter, and publicity.  Actually, my responsibilities were rather vague.  I called on a Friday to say hello to him and he said he had just been fired but I should report on Monday anyway which I did.  I was greeted by Beth, his secretary, and ushered into a huge glamorous office overlooking the Ramapo Mountains alive with fall colors.  I was told by the president, a former Navy admiral, a wonderful man, that I was to "fill in" until they hired another advertising manager.  There was a merchandising manager executive with no experience whatsoever.  It looked like I was the only one with proper experience for the job.  So when the president asked me to write a job description, I called the American Management Association and of course, added my background from radio and tv stations, Allied Stores, Charles of the Ritz, Lanvin, Arpege, ad agencies, etc..  From the beginning, the other male executives at GiftAmerica were rather cold and would not have lunch with me, epitomizing the "old boy" network.  Needless to say, after three months they hired a preppy guy from Proctor and Gamble and I was ushered into a tiny  cubicle.

Although it fell on deaf ears, I told them that the people who purchased presents were primarily women not men.  All their ads appeared in men's magazines, football games and other tv shows that men watched.  With all their expensive research by J. Walter Thompson and Burson Marsteller, at the end they realized that I was correct and the president told me so, that women buy presents.  The gifts were so bad!  Pop corn poppers, toasters, flowers (that was OK), etc., the kind of things that banks give away.  J. Walter Thompson ran a full page ad in the NY Times which had this typo, "A handsome Jap robe for football games" (lap robe).  When I called the ad exec to tell him, he said, "Gaye, please keep this low profile."

The rest of the regular employees at Western Union were furious at us because of the amount of money draining from them and we were treated with hostility.  If I remember correctly, GiftAmerica cost Western Union 20 million dollars and made 5 Million dollars.  Little by little people were given their pink slips.  I was kept near the very end.  Finally, the Admiral came into my little cubicle with tears in his eyes saying I had to go and I had done a great job.  He gave me a great letter of recommendation and retired.  And that was my interesting GiftAmerica experience.


Subject: As I recall GiftAmerica--Rich Niedz, former Director of Quality Control

I was GiftAmerica's Director of Quality Control and followed in the footsteps of a thirty-five year WU veteran who was GiftAmerica's Vice President of Quality and retired from WU about a year after I had arrived.   The GA concept was wonderful.  GA was able to have a gift which was "especially selected", delivered anywhere in the US within four hours.   Upon my manager's retirement, I assumed his role.   My background was in product quality and development, plant, systems and salesperson audits.
 
When I was recruited from a retail organization, I was quite excited.   GA's concept was ahead of its time.   We were the "dot.coms" of our time.   Unfortunately, our customers did not know it.   Whether you were at home watching TV, at an airport, a florist or  drugstore, you were afforded the opportunity to select/buy a gift from some 25;  we could deliver it, gift wrapped anywhere in the US within 4 hours.   We had operators who manned 800 numbers in St. Louis, Missouri.
 
At that stage of my career, I was not well versed in market research.   Since then, my experienced has broadened.  As I look back, our market research was flawed; we had operations' persons who became de facto "marketing experts" because they thought they knew what consumers wanted as opposed to needed.   They never addressed the issues of identifying consumers' need.   Rather than assessing risk, testing markets, evaluating demographics, conducting psychometric studies, we selected those suppliers who were willing to consign products and tried to fit the product with the perceived need.   We had selected a national spokesperson who knew nothing of our service, nor was interested in learning about our service. 
 
For me it was an interesting experience.   One that I will never forget.  I met some wonderfully committed professionals.  Gift America was a terrific company as was  WU .   The experience has made me sensitive to market research.   I teach as an adjunct at  two local colleges and volunteer my services to budding entrepreneurs.   Thanks for the opportunity to share my experience.
Regards,
Rich Niedz