PowerPoint Presentation

Case Study

In 1891, created the first internationally accepted Travelers Cheque.

Express Shipping Company

Travel Service Company

Global Payment Company

Issued first charge card in 1958.In 1967, one-third of the total profit came from its charge card business.60s and 70s stepped up its marketing efforts.

CREATED A FEELING OF PRESTIGE AND MEMBERSHIPAmerican Express was perceived as a status symbol signifying success and achievement.They collected a higher annual fee than its competitors.

Dont Leave Home Without It!

90s New Ad campaign Do More was launched to communicate the transformation that had taken place during the 1990s.Rebranded their Small Business Services division as Open: The Small Business Network

Continuous Membership Rewards Program

CREDIT CARD REVOLUTIONBLUE

Centurion Black

American Express secured a huge legal victory against VISA and MasterCard in 2004.Now, the company could pursue relationships with any and all banks.This acquired them 26 million more customers.

VISA: Introduced debit cards that subtracted money for purchases directly from a cardholders bank account.MasterCard: Created Priceless ad campaign, which became a ubiquitous pop culture reference point.

Two new marketing campaigns in 2000s

ARE YOU A CARDMEMBER?

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.

Top 5 most popular cards from 2009Platinum CardPreferred Rewards Gold CardStarwood Preferred Guest Credit CardGold Delta Sky Miles Credit CardPreferred Rewards Green Card

Despite disappointing financial results, they were named:15th Most Valuable Brand in the World.One of the top 30 Most Admired Companies.

Q1. 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. It has evolved over time and became a larger known brand and has been used by most consumers. It 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.

Q2. 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 and get some more corporate companies since corporations will be a great profit and bring a lot of business.

Q3. 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.

Summary

American Express Journey

Evolution of Card Begins

New Ad campaign begins

Credit Card Revolution

The Competitors

Two New Marketing Campaigns

DISCLAIMERCreated by Saurabh Parihar, IIT Kanpur. During a marketing internship by Prof. Sameer Mathur, IIM Lucknow.