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“Live Without Fear”
Using Consumer Truth To Create Marketing History in Credit Cards
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THE CLIENT
A crowded market• In 2001, there were five mn credit card in circulation
in India• Market growing at 20- 25 % CAGR• Thirteen issuing banks already present• All types of cards- classic, gold, co-branded,
affinity…..
ABN AMRO- a late entrant• ABN AMRO a relatively small MNC bank
– Just 10 branches and 200,000 customers in India
• Low salience and no historical retail equity
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THE BRIEF
• To create a proposition so distinct and close to the customer’s heart that it would overcome challenges of being a late entrant in a crowded market, and create its own market
• To get to that something about the consumer that is unique and relevant and can be owned by ABN AMRO
Who should ultimately design the product?
The customer, of course…
- Philip Kotler
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Cultural analysis,
traditions & beliefs on
savings and finance
Understanding consumer
needs, attitudes and usage habits with credit
cards
Developing and fine-tuning
concepts for ABN AMRO
credit card
Disaster check of the
communication prior to launch
THE PROCEEDINGS
- RK Laxman
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THE PRACTICE
Focus Group Discussions
Couple Interviews
Study of Live Interaction with Products (SLIPs)
Depth Interviews
Triadic Interactions
Consumers are people first and then users of products
- Philip Kotler
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THE ARGUMENT: Cultural Context…
• Self-restraint and sacrifice of pleasure is revered
• Deep emphasis on saving and aversion to debt
• Savings needed to
Meet unknown contingencies
To show “respect” for one’s income
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• However, changing values and lifestyles are leading to increase in spending
THE ARGUMENT: Cultural Context…
Emphasis on “Controlled Spending”
“…jitni chadar hai pair utna hi failana chahiye..”
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• Seen as a loan, rather than a payment facilitator
• Promotes “unwanted” and impulse purchases
• Leads to overspending
THE ARGUMENT: Credit Cards…
“I should not” rather than “I cannot”
“shuru se hi seekha hai…haath nahin faila sakte kisi ke saame…”
A look at the motivators and barriers to credit card usage
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THE ARGUMENT: Motivators….
• Power of always having money in hand
– To deal with unpredictable situations
– Flexibility to spend as one desires
“you feel you don’t need anybody… you can do it on your own”
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Power of always having money in hand
Freedom to spend on anything… no restrictions
Can deal with unforeseen eventualities
Security- reduces unpredictability
Confidence
FEELS LIKE I AM IN CONTROL
THE ARGUMENT: Motivators….
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• Credit cards seen as a “temptress” and a “debt mechanism”
“credit card mein aap dekh nahin rahe ho.. Paisa.. Hota hai ne ki apne haathon se gin kar noton ka dena..”
THE ARGUMENT: Barriers….
15CREDIT CARDS
No track of expenses- no cash exchange, less consciousness Increase ‘wants’, desires’
Impulse purchaseRoute to indulgence
Accepted only in big shops… more expensive
Overspending- LESS CONTROL ON MONEY“Paise ke upar control hi nahin rahta.. Pata hi nahi chalta”
THE ARGUMENT: Barriers….
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• The barriers to subscription“it’s a sweet poison…a trap”
• The barriers to usage– Spend lightly, pay promptly“aakhir yeh udhar hi to hai na….”
Fear of overspending and not remaining within one’s limits…. leading to Loss of Control
THE ARGUMENT: Barriers….
THE RULING
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Basis various needs, 5 concepts were developed
We share here the concept that attracted maximum appeal.. and went onto become the Freedom Credit Card
THE RULING: Concept….
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“With a credit card one does not need to carry huge sums of cash in hand and plan day to day cash requirements.” The only problem is credit cards encourage impulse buying! Am used to living within my means and I feel credit cards will make me lose control over my spending
Introducing the new ACCESS card. It offers you some unique features that make the card the most convenient way of making payments. It also helps you be in control of all the unnecessary expenditure Convenient credit, easy control
THE RULING: Concept….
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• The facility of issuing cheques on your credit card - ……….
• The card itself is extremely easy to apply and use. Receive the card within 10 days of application or GET IT FREE! ………
• You could also check your transaction details by simply accessing any of the nearest ATMs using your card. ………
THE RULING: Concept….
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• You will receive alerts the moment the spending on your credit card exceeds the pre-set limit specified by you at the time of applying for the credit cards, through mobile SMS, OR e-mail OR a letter. This pre-set limit can be increased or decreased depending upon your own requirements
• A consolidated annual statement of your transactions will be available on request. All your transactions will be segregated under separate heads such as spends on clothing, food, travelling, petrol etc., which will allow you to analyze your spending habits. This will help you budget and control expenses in the future
THE RULING: Concept….
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• Compared to the ‘convenience’ features (cheque issuance, ATM usage) the ‘control’ features (alerts, pre-set limits, break up of expenses) found stronger appeal
• Convenience features were seen as relevant, but not unique…. “Hygiene benefits”
• Control features were seen as unique and highly relevant
Recommendation: emphasize control features and mention convenience features briefly
THE RULING: Reactions ….
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• Various names tested• ‘Access’ and ‘Freedom’ both liked
• ‘Freedom’ met with greater enthusiasm• ‘Freedom’ associated with
– Freedom from worries of overspending– Freedom to choose own limit– Freedom to purchase anything
THE RULING: What’s in a name….
THE CASE FILE
From “Temptress” to “Governess”
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THE CASE FILE: Unveiling The Freedom Credit Card
LIVE WITHOUT FEARThe Commercials
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THE CASE FILE: Kiosks
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THE CASE FILE: Drop Box
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THE CASE FILE: Customized Envelopes
THE TESTAMENT
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• 20,000 enquiries were generated within first 8 days of launch
• One of the fastest card ramp-ups
– 450,000 applications received & 50,000 cards issued within first 2 months
THE TESTAMENT
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• Card activity rates were at about 70% as compared to industry standard which was less than 60%
• Average card spends were about 50% higher than industry average
• Business was set to achieve profitability 2-3 years faster than any other player in Indian market
THE TESTAMENT
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Thank
You!