American express
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Transcript of American express
BY: MEGHNA KHANDELWAL
ISM DHANBAD
"Don't leave home without it"
• Began as a 19th-century express
shipping company.
• Grew into a travel services company.
• Evolved into a global payments
company.
• In 1891, created the first
internationally accepted "Travelers
Cheque".
• Issued first charge
card in 1958.
• In 1967, one-third of
the total profit came
from its charge card
business.
• 60's and 70's stepped
up its marketing
efforts.
• American Express was perceived as a
status symbol signifying success and
achievement.
• They collected a higher annual fee than its
competitors.
CREATED A FEELING
OF PRESTIGE AND MEMBERSHIP.
• 90's New Ad campaign "Do More"
was launched to communicate the
transformation that had taken place
during the 1990's.
• Rebranded their Small Business
Services division as "Open: The
Small Business Network"
• Continued
membership
rewards program
• Blue
• Centurion black
Two revolutionary new credit cards
VISA: Introduced debit cards that
subtracted money for purchases
directly from a cardholder's bank
account.
MasterCard: Created "Priceless" ad
campaign, which became a ubiquitous
pop culture reference point.
American Express secured a huge
legal victory against VISA and
MasterCard in 2007.
Now, the company could pursue
relationships with any and all banks.
This acquired them 26 million more
customers.
Two new marketing campaigns in the 2000s
Top 5 most popular cards from 2009
• Platinum card
• Preferred Rewards Gold Card
• Starwood Preferred Guest Credit Card
• Gold Delta SkyMiles Credit Card
• Preferred Rewards Green Card
• Global economy collapse in 2008-2009
resulted in dumped financial results.
• Stock price fell by 64%.
The company changed its core strategy of
who they targeted.
Despite dissapointing financial
results, they were named
•15th "Most Valuable Brand in the
World".
•One of the top 30 "Most Admired
Companies".
•Evaluate American Express in terms
of its competitors.
•How well is it positioned? How has
it changed over time?
•In what segments of its business
does American Express face the
most competition?
•American Express is well positioned
because it has been around longer than its
competitors.
•Has evolved over time and became a
larger known brand and has been used by
most consumers.
•Faces the most competition by the other
credit card companies when it comes on
how much they charge and who can get
the cards that they are offering.
Evaluate American Express
integration of its various businesses.
What recommendations would you
make in order to maximize the
contribution to equity of all its
business units? At the same time , is
the corporate brand sufficiently
coherent?
They are doing good at integrating
all of their businesses. They have
credit cards for the middle classes
and wealthy. They offer a lot of help
to small businesses. They need to
concentrate on keeping up with all
small businesses ans get some more
corporate companies since
corporations will be a great profit and
bring a lot of business.
Discuss the company's decision to
grow beyond its core affluent
consumer base. What did this do for
the company and the brand?
American Express got new
customers by deciding to grow out of
what they were originally targeting.
They got what the needed, that is
various small businesses. This has
helped them gaining the new
consumers by offering rewards, the
brad is now more then ever known
and wanted.
RECAP
Growth of American Express during the 19th and
the 20th centuries. "Travelers Cheque"
Charge Card
Status Symbol
"Don't leave home without it"
"Do More"
"OPEN: The Small Business Network"
New Credit Cards
Competition Faced
Marketing Campaigns
Q & A