...Marketing Excellence—American Express Jeff Rock Abstract The paper discusses the expansion of American Express into new market segments. The positioning and timing of this gives the business distinct advantages over competitors. The core business is as strong as ever and continues to deliver value to consumers and profitability to the company. The brand is well placed and will likely increase in value with the addition of under an unserved market segments. Marketing Excellence—American Express 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 (AmEx) has expanded services over the past few years which expands lines of business and positions the company very well. The following excerpt from a Business Week article illustrates a major move to establish a new funding stream in banking. “American Express (AXP) has partnered with Wal-Mart Stores (WMT) on its newest product, a prepaid debit card, Bluebird, that’s now on sale in 4,000 outlets nationwide. AmEx has calculated the gains are worth the risk to its gilded brand. If Bluebird proves popular, it won’t just capture more swipe fees for AmEx. It will also accelerate a remarkable, and largely overlooked, shift: American Express is no longer just a charge-card company. AmEx has become a bank—offering a growing list of services that now includes savings accounts...
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...Introduction It is crucial for a contemporary organization to have a marketing department that understands their crucial role in being able to market their product successfully and therefore profitably. The two major organizations discussed will be Lipton and American Express. Here, there will be a discussion of the two contrasting products; a 500ml bottle of Lipton Peach Ice tea and an American Express Platinum Credit Card. These two products will be compared and contrasted to one another in terms of product description, classification and segmentation. Product Description When a marketer sells a product, they must take into consideration the three levels of a product; the core, the actual and augmented. Kotler et al. (2007) describes the ‘core product’ as core benefits which act as problem solving services that consumers are buying when they attain a product. The ‘actual product’ is a combination of the product’s features, styling, quality, branding and packaging. And lastly, the augmented product is the additional consumer services and benefits which are included to increase competitiveness. With Lipton Peach Ice Tea, the core product is that it is a drink; a benefit to quench thirst. It also has a core benefit of social acceptance, as there may be a perception that those who drink Lipton Peach Ice Tea are ‘cool’. Also, the ice tea is convenient as it is easily bought and managed. The actual product features of the Lipton Peach Ice Tea are that it is a refreshing...
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...Visit the American Express web site (www.americanexpress.com) to learn more about the different cards that American Express offers. Select three of the macro environmental forces discussed in the chapter. How do the different card options reflect the changes in those forces? • The three macro environmental forces are the following: Demographic Environment: American Express issued their first card back in 1958. They only had one card for everyone. But as time changed, population increased and so did the consumer needs. American Expressed produced different cards to meet consumer needs. American Express offers many different card options for personal and business use, as well as cards geared towards the young, and wealthy. Economic Environment: American Express has adjusted its marketing trends with the changing economy. They generally do not influence any law, it is continuously changing, therefore becoming flexible in order to adapt to the changing environment and customer demands. They have developed cards for personal use, travelling, business purposes and this gives customers a vast choice to choose for their different spending types. Technological Environment: Although there may be competition and rivalry in a market, Globalization means that there is always the threat of substitute products and new competitor. With a wider environment and constant change, the marketer’s need to compensate for changes in culture, politics, economics and technology. American Express has given...
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...Corporate Governance at American Express By Ahmet Emre Kuzudisli BUS 707 – Corporate Governance 8130 Boone Blvd Suite 240 Vienna, VA 22182 (571) 721-0934 aemreku@gmail.com Instructor: Dr. Shawn P. Richmond Washington Baptist University, Fall 2014 ABSTRACT This project will serve as a research and report of corporate governance at American Express. The company, founded in 1850, is 124 years and is ranked #67 on Fortune’s list of Best Companies 2014 (Fortune, 2014). There are so many perks of working at American Express such as paid 28 day vacation, Hyatt legal services and educational assistance. After one year employees are able to get 6 weeks of paid vacation following the birth or adoption of a child. TABLE OF CONTENTS Introduction 4 Corporate Background 4 Products/Services 4 Vision/Mission Statement 4 Rank/Industry 4 Jobs/Pay 4 Benefits/Health 4 Board of Directors 4 Analysts 4 Creditors and Credit Rating Agencies 4 Securities and Exchange Commission Reports 4 Risks 5 Corporate Citizenship 5 Conclusion 5 References 6 Introduction This paper will serve as a report on American Express, one of the best companies for employees in 2014. The corporate governance at American Express is highly professional and impressive this is why they are ranked #67th position in all over the world in 2014. This paper will represent how this well-oiled machine works...
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...American Express Strategic Planning FIN/370 April 23, 2015 American Express Strategic Planning A large part for any success of a company is planning. Effective strategic planning is necessary for any company to acquire financial growth and American Express shows to investors and the public they are able to achieve such success. Their “closed-loop” and “spend-centric” business models show they remain competitive with bankcard networks because they acquire and handle all aspects of credit card transactions from the cardholders end and the administrative end. “Closed-loop” allows for this company to monitor spending habits and to build algorithms and analytical tools which allows American Express to offer special deals to prospective clients and existing cardholders. “Spend-centric” deals with ways to generate revenue by using attractive finance rates and fees which in turn encourages cardholders to spend more than bankcard holders (American Express Company, Form10-K). Financial planning affects American Express uses Global Network & Merchant Services (GNMS) to incorporate merchants using the Closed-loop network and be able to offer multi-channel marketing programs to merchants worldwide. By doing this, American Express broadens their capabilities to acquire new merchants accepting the American Express card and acquiring new cardholders allowing for more purchases, loans, and fees. Their presence is seen in places that otherwise would be unattainable solely in...
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...Costco and American Express terminate a 16 year old business partnership Costco, a wholesale retail giant and American Express, a financial services corporation, recently announced that they would be ending their contract. According to the terms of their agreement, American Express was the sole credit card accepted at Costco. Additionally, American Express and Costco had issued a co-branded TrueEarnings credit card, which could also be used at other stores. After March 31, 2016, customers will no longer be able to use American Express credit cards in Costco. The TrueEarnings credit card will also be discontinued [1]. From a marketing perspective, this could have several consequences for both firms. What are the implications for each company's brand with this decision? American Express’s brand image has been adversely affected with the termination of its contract with Costco. There are several factors that contribute to the same. • Low confidence of Costco in American Express’s brand: The termination of the contract, albeit from a financial perspective, implies that the exclusivity that American Express had commanded has ceased to exist. Costco clearly sees no benefit in being associated with American Express’s brand, which may result in declining confidence among American Express customers, particularly those associated with the TrueEarnings card. • Declining status symbol: An erstwhile force in the credit card industry, American Express currently faces stiff...
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...Table of Contents 1.0 Marketing Strategy 1.1 Objectives 1.2 Target & Segmentation 1.3 Positioning 2.0 Strategies 3.0 Marketing Mix 3.1 Product 3.2 Pricing 3.3 Distribution 3.4 Marketing Communications 3.5 Customer Service 4.0 Recommendations 5.0 Plan of Action 6.0 Bibliography 1.0 Marketing Strategy Westpac: THE ASIA PACIFIC INVASION Westpac have been servicing the Pacific Rim since 1901 with rapid support for its growth strategy of servicing Australian and New Zealand customers with links to Asia, and Asian customers with business interests in Australia and New Zealand. With Capital Market Sales and Foreign Exchange capabilities established in Singapore in 2004, Westpac Group Asia was extended to include Corporate and Institutional Banking in 2005, and most recently, Syndicated and Leverage Finance and Asset Finance. Westpac Singapore and Hong Kong offices have a strong focus on private banking for affluent customers with ties to Australia and New Zealand. While most of these Westpac Institutional Bank operations are headquartered in Singapore to cover the continent, the geographic footprint has continued to expand, incorporating Shanghai and Hong Kong Branches in China and Representative Offices in Mumbai, Jakarta and Beijing. (Westpac Group, 2011, Westpac History, 07-06-2011, URL: ) While Westpac began to seriously look at the Asian market by 2005, it was only through the form of corporate banking and as they have positioned themselves...
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...Introduction The American Express Company (American Express) was established in the year 1965 as an international finance and travel business company. The main products and services of the company include credit cards and travel related cards and services which are provided to various consumers all over the world. American Express Company has an operating subsidiary called American Express Travel Related Services Company, Inc., (TRC). Both these companies are bank holding companies. The four basic segments in which the company offers services to its clients include U.S. Card Services, International Card Services, Global Commercial Services and Global Network and Merchant Services. The various products of the company include credit card products, consumer and business travel services, stored value products like traveler’s cheques, prepaid cards, network services, expense management products and services, marketing information products, fee services, fraud prevention services, customized products for clients. At the end of the year 2010, the company has acquired Accertify Inc., a company which provides services to traders regarding online frauds and not present card transactions. The paper discusses in detail the various products and services provided by the company Global Network and Merchant Services The Global Network and Merchant Services (GNMS) division functions an international all-purpose and common objective charge and credit card network for the cards issued under...
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...Citibank: Launching the Credit Card in Asia Pacific (A) Case Study, BEP 430 Marketing 20030059 Dong-ock Kim1, 20030071 Min-geuk Kim2, 20040054 Keehyung Kim3, 20040535 Yohan Jo4, 20076006 Huang Qiuling5, 20076035 Dorjsuren Bayarmaa6 Marketing Team A1 2 3 4 5 6 erst_licht99@hotmail.com1, kmg0702@hanmail.net2, keehyoung@gmail.com3, zukjimote@gmail.com4, sharlin_huangqiuling@hotmail.com5, gordok_88@yahoo.com6 Professor: Wonjoon Kim Date submitted: May 18, 2007 TO: Rana Talwar, head of Citibank’s Asia Pacific Consumer Bank, Citibank FROM: Dong-ock Kim, Min-geuk Kim, Keehyung Kim, Yohan Jo, Huang Qiuling, Dorjsuren Bayarmaa RE: Citibank: Launching the Credit Card in Asia Pacific (A) DATE: May 18, 2007 As you know, rapid growth of Asia-Pacific economy was incredible in several years. It could be a good chance for Citibank’s growth, so Citibank has started to branch banking business since 1978. Actually, performance of Asia-Pacific branches is not bad. In 1988, Citibank earned $69.7 million, but Citibank does not satisfy with its performance. Citibank’s goal is $100 million until 1990. For this goal, Citibank launched the most innovative service such as telephone banking service. And now, Citibank is planning to launch a new product credit card. Acquiring card customers means that Citibank has more opportunities to crosssell product line: Auto Loans, Ready Credit, Deposits, and Mortgage Power, Citibank’s core products. But many of Citibank headquarters have doubts...
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...to assist the nonprofit organization in raising fund or to benefit the society by supporting a cause. P.R. Varadarajan and A. Menon (1988) have seen Cause Related Marketing in the early stages but absolutely in a projective way. They defined Cause Related Marketing as the process of formulating and implementing marketing activities that are characterized by an offer from the firm to contribute a specified amount to a designated cause when customers engage in revenue-providing exchanges that satisfy organizational and individual objectives. Kevin Keller and Philip Kotler (2006), in agreement with Varadarajan and Menon Cause related Marketing is that marketing activity that links the firm’s contributions to a designated cause to customers’ engaging directly or indirectly in revenue producing transactions with the firm. On the other hand, "Cause marketing is the action through which a company, a nonprofit organization, or a similar entity markets an image, a product, a service, or a message for mutual benefit of the entity and the cause," writes Marconi in the first chapter of the book Cause Marketing. Barone, Miyazaki and Taylor (2000) noted that there are actually two approaches to cause related marketing. The direct approach, described above by Varadarajan and Menon, links the size of donation to sales of particular products. An example of this is Bashundara Tissue, recently the commenced a new baby diaper and baby tissue, at eve of the launch, they enunciate to donate tk. 1...
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...Read the case study given below and answer the questions at the end of the case. Brand ambassador : employing real customers to get the word around. People love talking about things that make them happy - including their favorite products and brands. For example, if you really like an airline - they fly with flair and get you there at a reasonable price or you just love your recently acquired Sony camera - it is too good to keep the knowledge of the experience to yourself. In the old days, you would have chatted up these brands with a few friends and family members, but these days technology allows you to spread the word about products and brands experiences to thousands of other consumers. In response, Marketers are now working to harness the new found communications power of their everyday customers by turning them into influential brand ambassadors. Companies like Sony, Microsoft and McDonald's are now developing a new breed of brand ambassador programs that organize and multiply consumer to consumer interactions about their brands. These programs employ everyday consumers who are passionate about their products to act as part PR agents and part sales reps. MS-61 3 http://gyansagar.co.in Marketers select their brand ambassadors very carefully, based on customers' devotion to a brand and the size of their social circles. Once selected, the ambassadors are trained with real brand knowledge to go along with their passion for the brand. The ambassadors...
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...Visit the American Express Web site (www.americanexpress.com) to learn more about the different cards that American Express offers. Discuss the target market and positioning strategies for each. * How has American Express been able to maintain a competitive advantage throughout the many years of existence? * How has American Express been able to help consumers shift their attitude toward usage of the card? Is American Express taking a proactive approach to managing its marketing environment? How? Halfway down the homepage of the American Express website, there are four credits cards offered. The ones that are offered include personal cards, small business cards, corporate cards, and prepaid cards (American Express, 2015). There is actually a short quiz you can take with only three questions. I took it in less than 10 seconds and it told me that the Blue Cash Everyday Card as well as the TrueEarnings Card from Costco would be my best fit. In my wallet, you will actually find the Blue Cash Everyday Card. There are three featured personal cards available, but when you click on “View All Cards” there are a lot more with company partners and features. The quiz asks about preferred benefits, what form you’d like the rewards, and your total annual income. Until this assignment, I did not know there was a difference between a charge card and a credit card. Whatever card a consumer chooses would depend on their spending habits, what they prefer as their rewards, and which...
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...in the hospital for weeks. At that point someone told her about the Ronald McDonald House. The Ronald McDonald House is a safe place to stay within walking distance from the hospital; it is like a hotel with a dorm set-up that has rates based on your income. The Ronald McDonald House if mostly funded by donations. One way to donate is through cause marketing by buying a Happy Meal. Cause marketing (also referred to as cause-related marketing) is a type of marketing that involves the cooperative efforts of a “for profit” business and a nonprofit organization for mutual benefit. According to adage.com, the field of cause marketing began in 1983, when American Express raised money for the restoration of the Statue of Liberty. Adage.com states that “During a 3 month period, American Express offered to contribute one cent for each card transaction and $1 for each new card issued and backed the offer with a substantial media campaign.” An article on about.com entitled Cause Related Marketing: What you Need to Know goes on to say that “the results are now legendary. The Restoration Fund raised over $1.7 million and American Express card use rose over 27%. New card applications increased 45% over the previous year”...
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...Starwood Hotels and Resorts Worldwide, Inc. An American hotel and leisure company headquartered in Stamford, Connecticut It owns, operates, franchises and manages hotels, resorts, spas, residences, and vacation ownership properties under its nine owned brands. * Westin * Sharton * Four Points by Sharoton * The Luxury Collection * W Hotel * St. Regis * Le Meridian * Aloaf, a vision by W Hotel * Elements by Westin Started out as starwoods lodging, formed by real estates of starwoods capitial to take advantage of the tax break. Starwoods lodging owned a numbers of hotels around north America In 1994 the Westin hotel company was bought over, from japan Aiko company In 1998 Starwoods buy over the Sharton, Four points by Sharton and The Luxury collection from ITT 1995 Starwoods launched the W Hotel 2005 Sept Starwoods launched The Loaf, based on W Hotel, cater to business travelers In 2005, Starwood purchased the Le Méridien brand Starwood began selling a number of its company-owned hotels, instead focusing on becoming a management company and franchiserfor its current and future hotel brands Starwood also has customer contact centers (CCC) all over the world. A new CCC was just opened in Wichita, KS. This makes it 10 CCC worldwide.( Austin, Texas; Fall River, Massachusetts; Lancaster, California; St. Thomas, Ontario, Canada; Cork, Ireland; Singapore; Tokyo, Japan; Guangzhou, China; and Gurgaon, India) WESTIN Starwood's largest...
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...Questions Q1. Visit the American Express Web site (www.americanexpress.com) to learn more about the different cards that American Express offers. Discuss the target market and positioning strategies for each. Ans. American Express offers its customers with four broad categories of cards : * Personal cards * Small Business Cards * Corporate Cards * Prepaid Cards Personal Cards These cards cater to almost all the segment from teenagers to retired personnel. This category has vast variety of 21 different cards catering to different individual needs. These card cater to people who like to shop , travel , dine in at restaurants.The card target to teenagres to housewives to business corporates. The cards are positioned as per the requirements for eg Starwood Prefferd card gives point for people to redeem at flights and hotel Small Business Cards The business card offers features as Membership reward points, Travel rewards and flexible payment options. The card has features that provide special reward points on usage at advertising in select media, purchases for shipping, purchases for gas station. It positions with the business requirement of a company. Corporate Cards These are customised cards with specific features to meet the needs of the manager , frequent business travelers and executives. The card has features like online tracking tool which held to manage expenses track spending history and manage the resources.The cards helps to manage cost, maximise...
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