Capital One Case (Logic for marketing strategy/final project) Business Problem: - new to market (US based) - small

player / low brand awareness / low share (23 million active accounts, $0 in 1996 to $2.4 billion in outstanding balances in 2004; assumed $3,000 in debit card = 800k customers, share = 800k/23 million = 3%) - monoline -> credit card only (have to make money here!) - competitors (visa/mc, big 6 banks, full line of products, credit cards used to acquire customers, but are not a major source of profit, physical bands, lower cost of capital) - trend toward multiple financial service relationships - summary: small entrant in a market that is dominated by entrenched competitors Marketing Objective: - acquiring customers - growth -> quantify Target Market: - alts: 1) acquire new customers (new to cc, and new to c1), 2) grow share of wallet (existing customer) - IBS: identify accurately the low-risk revolver (enables them to service the full range of customers) - targets new low risk, new to credit card Communication Objective: 1) ad campaign 2) brand equity: awareness, knowledge (differentiation, associations, emotions, beliefs) 3) consumer behaviour (open direct mail piece) *VITAL (only way you will get a ROI) - c1 is a company I can trust, therefore I should open the mail piece - c1 is a company that I can trust, therefore I should phone the 1-800 number Creative Strategy (very difficult): - depends on brand and value proposition - these things are the strategic guidelines for your advertising or pricing decision - must be consistent with the brand - value = quality/price (lower APR, no hassle, predictable price structure, price protection, etc.) Which execution do you recommend? Why? - none of the ads are breakthrough (not dramatically different than average) - hand in my pocket, changed it to youve got bankers