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With the rise of online technologies and mobile applications, the gift-giving industry has become
a more personalized and meaningful experience, and the stakes are higher for gift receivers as
well as recipients, as there are many online tools which help one pick out the best present to give.
The following report will outline the pain points of current gift givers and receivers, and how
these problems can be potentially resolved. The comprehensive research of the gift giving
industry was done through secondary research, competitive analysis, voice of customer, and
focus groups.
Market Research
Secondary Research
Secondary research revealed a few emerging trends in the gift giving industry. These trends were
the increase in personalized gifts, the weight placed on individuals relying on customer reviews,
and the growth in online shopping. The increase in popularity of personalized gifts can be
attributed to the great access to handmade goods. With websites such as Etsy.com and Ebay.com
providing individuals a marketplace to sell their homemade goods, demand has expended. These
e-commerce websites connect consumers directly to the artisans and designers that create these
gifts. The consumers that buy handmade gifts are more concerned over the quality and
uniqueness of the product they are receiving rather than the price they pay. Additionally,
consumers are beginning to use rating and review systems to their advantage to communicate
with others about their experience with products they have purchased. Many consumers will not
consider buying a product under a four star review. The use of rating and review systems allow
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consumers to have a better expectation of the product they will receive and decide if they will
make a purchasing decision. Finally, the biggest trend was the increase in ecommerce and online
shopping. According to Forrester Research about 190 million U.S. consumer will shop online
this year. Additionally, Amazon accounted for 60% of the total U.S. online sales growth from
2015 to 2016 (Stevens). Amazon now dominates the U.S. online retail industry and holds 43% of
online sales (Intelligence). Online shopping has become the source for consumers to
communicate with other consumers, find the cheapest prices for products, and purchase goods to
Our VOC interviews were designed to have the customer tell a story about their experiences
when buying gifts. We asked questions to identify what the interviewee liked and disliked about
their experiences in order to identify their needs. Our goal for the interviews was to provide us an
We interviewed eight women ranging from 35 to 54 years old. The interview took place in
person and over the phone. We began by asking the interviewees how they currently buy gifts
and which mediums they use (retail versus online). One trend that appeared by asking this
question was that the interviewees would research the products online, find a retail store that sold
the product and then purchase the product in the store. We then asked what they wanted to
accomplish when buying gifts. We discovered that making a thoughtful purchase that the
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recipient would enjoy was critical. The frustration stems from the difficulty that results when
trying to gage what a recipient would like to receive for a given occasion.
After conducting our VOC’s we created an affinity diagram (Appendix C) to organize the needs
discovered in order to improve the concept. We grouped the needs into 3 bundles (attributes):
security, seasonality, and layout design. In security we addressed the concern over displaying the
cost of items purchased. When sharing such data with others, personal finances and disposable
income is potentially hinted at. Under seasonality we indicated the potential of increasing the
longevity of the app, as the women interviewed mentioned heavily gift shopping during the
holiday season. Lastly, the affinity diagram notes that an issue with the current product being
proposed by Beth and Nicole is not a user friendly application as it is exclusive to organization
Focus Group
The purpose of our focus group was to supplement our findings in our VOC’s. Our focus group
consisted of six women ranging in age from 21 to 55. The participants were students,
stay-at-home moms, and employees of the University. We conducted the focus group in a study
room in the University library. We followed a six step procedure while conducting the focus
group to assess the current product and allow us to develop our plan to suggest improvements.
1) First we started by asking the group if they typically organize their gift giving process
and if yes how do they do so. All six participants responded yes and said they used lists
on their iPhone, a notebook, or Excel Spreadsheets. We then asked if they had any
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problems while using this current method. All the participants responded that they have
detailed discussion of the main features of the application. The features discussed were
budgeting capability, links to outside sources, assigning gifts, and creating “circles.”
During the discussion the concept was said to be, “too complicated” and “lacked unique,
3) Next we had the participants evaluate features on a scale from 1-7. Budgeting capability
on the app scored an average of 2.4. Links to outside sources for gift ideas/buying
averaged 1.8. Ability to assign gifts averaged 4.6. Creation of certain “circles” averaged
4.2.
4) Then the group was asked how much they would be willing to pay for this app. Four
respondents answered that they would not pay, one responded $0.99, and one recommend
a free lite version and a paid premium version priced at $1.99 for more features.
5) The group was then asked if there were any extensions that would enhance the product.
The responses included, an option where you can buy in retail instead of online, a certain
database to determine whether the size is actually in stock at a nearby store, and ability to
6) The group was then asked what modifications would make the product more attractive.
The group responded by reiterating the extensions and suggested a slight pivot in the
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Competitive Analysis
Featured Competitors
Karma, an iPhone and Android smartphone application, allows users to buy and send gifts to
friends and family. When using the mobile application, the user will first experience a
“Spotlight” page where upcoming birthdays and anniversaries are highlighted. Then, the user
sends a gift as well as a card message that is also cross-functional with Facebook. Using an
e-Commerce platform, Karma also allows users to exchange unwanted gifts from the same
vendor, or they can choose to donate the money used to purchase it to charity.
Wrapp is a unique gift giving application that utilizes social media profiles and metrics to predict
what the gift receiver may want. More specifically, Wrapp looks at the gift receiver, how
valuable they are to Wrapp partners, and displays a number of potential gift card options. Wrapp
gives this gift card for free, but users can add onto the monetary value. Wrapp takes a fee when
the card is redeemed, and also helps brands collect data on their connections, which is how
Giftly is a mobile application for iPhone and Androids and is focused on exchanging gift cards. It
allows users to buy gift cards from any company in the United States listed on Yelp. When a
Giftly recipient pays for the item, they use normal methods, using their own cash and credit card.
Giftly then verifies that the user is at the company business via phone location applications, and
immediately reimburses the designated amount to the registered credit card, debit card, or PayPal
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account. This instantaneous reimbursement process is only possible if the user has location
Direct Competitors
The following competitors are similar to MyFamilyGiftList’s concept of gift organization. They
are all extremely similar, and are therefore grouped together. Santa’s Bag is a mobile application
that keeps track of what each person wants and how many gifts that have been bought already. In
addition, the application has a budgeting tool and is linked to Amazon and other other
e-Commerce stores where the user can compare prices. Another mobile application, Christmas
Gift List is password protected and integrates Google Drive to back up users’ information on the
application. It organizes the user’s buying progress and budget. The Christmas List has a easily
readable interface, and includes an interactive progress report and budget list. One of its key
features is the user can add people to their tasks. Giftplanner markets itself as a budgeting
organization tool for gifts which can be used for all holidays, events, and birthdays. The
bookmarklet feature which adds items instantaneously to the gift list is also a plus. Lastly,
Christmas List Snowball is a mobile application for iPhone and Android phones and shows a
summary of the user’s budget and money spent. It also organizes which gifts need to be bought.
Indirect Competitors
Some indirect competitors include applications that have coupons and track prices, which can
save the user money when buying gifts. RetailMeNot Coupons, GroupOn, and ShopAdvisor are
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all applications that give discounts for the user and these added benefits could drive the user to
Gift-giving has started to become on-demand. Gyft is a iPhone application that sends gift cards
instantly to people online and keeps all this information on the application, solving the problem
of losing track of gift cards. Next, Sesame a collection of presents, and can immediately deliver
these presents to a friend or family member’s doorstep. Their motto is, “ a boutique gift shop on
your phone.” Lastly, On Demand Delivery allows users to deliver specific products or services to
people immediately and Give-A- Gift is an application that allows users to immediately send and
Strengths
MyFamilyGiftList’s strongest functionality is the user’s ability to create and enter social circles,
which help organize and facilitate gift collaboration for groups. With its strong focus on team
participation, gifts are not duplicated and coordinating with other group members about gift ideas
is seamless. After the gift exchange, if a user does not enjoy their present, there is a
reimbursement option within the application which allows them to exchange their product.
Moreover, MyFamilyGiftList also includes functionalities which help the user individually
organize their gifting tasks. For instance, the application includes a budget that the user can edit
and also review for reference. MyFamilyGiftList also allows users to directly buy gifts from a
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particular store or website. They can also track their packages that are ordered through the
MyFamilyGiftList makes the gift selection process for users more efficient and effective. The
application has a search engine that allows users to look for the best price type option and has the
Weaknesses
MyFamilyGiftList requires all participants to actively utilize the app in order to have an efficient
gift giving system. If one family member or friend does not install the app, participants run the
risk of giving duplicate gifts. Additionally, we are quick to assume that everyone has an iPhone
or a computer. This, however, is not the case. While some baby boomers may have access to this
technology, they may not all be familiar with how to use an application interface. Given that the
current demographics for MyFamilyGiftList are females between the ages of 35 and 75, we run
the risk of being unable to tap into the older female market.
At this stage, we are unsure of the means MyFamilyGiftList aims to take to achieve a return on
investment. If this is a paid app, customers will be dissuaded from using it. Nicole and Beth may
want to consider integrating a “pay to use” method. This would require a user to pay to unlock
the full capabilities of an app. Revenue (advertisements designed to send customers to other
applications) seems possible once the app is fully developed. These features will not be
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The budgeting feature allows one to track his or her spending. This, however, may potentially
cause complications. For example, if a budget is capped at $25, and this is not the desired
spending value (it may be too high, it may be a low price point) for some, they are pressured into
MyFamilyGiftList’s “social circles” feature permits groups to plan presents collectively. This
effort is intended to mitigate any duplication of presents. We have taken this notion and applied
it elsewhere, as our VOC and focus group results showed us that MyFamilyGiftList’s format (or
intended user interface) does not ultimately address a pain point in the market.
Based off of our research, we have come to understand that individuals (irrespective of age) wish
to provide people with a meaningful, personalized present. Gift-giving is difficult, but when
searching for a personal present, it gets even harder. Based off of the research collected in our
VOCs, the primary intention behind purchasing a gift is to make the recipient feel truly
appreciated. That being said, the pain point is the absence of a tool to simplify the gift selection
Using MyFamilyGiftList’s “social circles” concept, and considering our newly defined pain
point, we came up with Gift Generator (for the purpose of our report, we changed the name
created by Nicole and Beth to better align with the product outlined below). Gift Generator, an
application, allows users to build a profile with information such as shoe size, likes/dislikes,
preferred shops, pastimes, and social causes individuals are passionate about. The profile would
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include the option to list your home address. This would allow an individual to input a direct
address when purchasing a gift for a friend or family member. That being said, when asked if she
would use an organizational tool for gift giving, one of our VOC respondents said that her
answer would be contingent on the intrusiveness of the app. Personal addresses fall under the
privacy category. Therefore, the address will only be available to those in your gift giving
“circle.” Settings will permit one to choose whether they wish to display their address to the
individuals in the circle. Upon creating or joining a social circle, Gift Generator would curate
options for you based off of your friend’s or family member’s profile preferences. Each item
suggested will have several alternatives so the purchaser can take into account discounts,
location of store, etc. The same notion applies for services. All external links will be from secure
and reputable websites. This will enhance the credibility of Gift Generator.
This adapted concept tackles logistical problems. It is no longer necessary for a consumer to
stress over decisions such as sizes and duplication (as the app will not list suggestions that other
friends in the social circle have already purchased). Our VOC results indicated that consumers
shop heavily for presents during the holiday season. This positions MyFamilyGiftList as a
seasonal business. Gift Generator is not a seasonal app. Push notifications on the application will
social circles. Alerts will also be published for upcoming holidays or events that oftentimes call
for gift giving activities: Mother’s Day, Father’s Day, Valentine’s Day, and graduation.
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Conclusion
MyFamilyGiftList’s concept of organizing and budgeting gifts was a small part of the grander
problem of giving meaningful and individualized gifts that didn’t break the bank. Through both
primary and secondary research and techniques like VOC, and focus groups, our team found that
gift exchange market. This information shaped the Gift Generator concept. The new concept is
positioned as a year-round product (that extends beyond the Christmas shopping market) catered
towards a larger demographic (that is not gender specific). Primarily, however, it allows for
customization and delivery of meaningful presents. This allows the revised concept to fill gaps in
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Works Cited
Stevens, L. (2016, June 08). Survey Shows Rapid Growth in Online Shopping.
https://www.wsj.com/articles/survey-shows-rapid-growth-in-online-shopping-146535858
Intelligence, B. (2017, February 03). Amazon accounts for 43% of US online retail sales.
http://www.businessinsider.com/amazon-accounts-for-43-of-us-online-retail-sales-2017-2
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Appendix A: VOC Questions
1. Could you tell me a bit about yourself -- what is your profession, how old are you, what
is your marital status, do you have children?
2. How do you buy gifts now? What do you use for buying gifts? Where does this fall
flat?
3. What would you like to achieve in buying gifts?
4. Best and worst experiences in buying gifts.
5. At which point in the year would you say you most engage in gift giving activities?
6. Could you walk me through the steps you take during these seasons when buying a
gift?
7. Who do you usually purchase gifts for? Friends? Family?
8. What are your biggest frustrations in buying someone a gift? Especially during
holidays.
9. What is the best part of buying a gift?
10. Does your family divide gift giving responsibilities? (If no, how do you organize your
gift list?)
11. How do you keep track of who you’ve bought gifts for?
12. Where do you typically purchase gifts? (online, brick and mortar)
13. Do you typically purchase digital gift cards or tangible items?
14. Do you own a smartphone or computer?
15. Would you consider yourself technologically savvy?
16. Do you use technology for gift giving?
17. Would you use an organization tool for gift giving?
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Appendix B: Focus Group Questions
Product Concept
Price Points
How much would you be willing to pay for this app?
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Appendix C: Affinity Diagram
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