RedEnvelope’s marketing success

Only a year and a half after launching its brand name, RedEnvelope.com has achieved 40% brand recognition among its target market, Martin McLanan, COO, told the eTail 2001 conference. RedEnvelope started life as Gifts911.com in 1997, but changed its name in 1999 to re-position itself from a last-minute gift site to a more mainstream gift site. Its target market is households with incomes above $70,000 a year. RedEnvelope today has a customer file of 400,000. Its average ticket is $80. It has marketed itself through catalogs, print ads in upscale magazines, targeted e-mails and with portal agreements.