EXECUTIVE SUMMARYVisa is a global payments technology company that connects consumers, businesses, banksand governments in more than 200 countries and territories, enabling them to use electronicpayments instead of cash and checks.Visa has built one of the world’s most advanced processing networks. It’s capable ofhandling more than 20,000 transactions per second, with reliability, convenience andsecurity, including fraud protection for consumers and guaranteed payment for merchants.Visa does not issue cards, extend credit or set rates and fees for consumers. Visa’sinnovations, however, enable its bank customers to offer consumers more choices: Pay nowwith debit, ahead of time with prepaid or later with credit products.Governments around the world have switched to electronic payments instead of checks forbenefits payments and purchasing in order to increase efficiency and lower costs, savingtaxpayers money.Visa is giving more people in more places access to electronic payments. From the world’smajor cities to remote areas without banks, people are increasingly relying on electronicpayments along with mobile technology to use their money any time, make purchasesonline, transfer funds across borders and access basic financial services. All of which makestheir lives easier and grows economies.OUR HISTORYVisa has been at the forefront of electronic payments since its inception. From the firstrevolving credit card platform to neural networks and mobile payments, Visa has pioneeredthe growth and development of this fast-moving industry. Visa’s payment platforms areincreasingly the backbone of global commerce, enabling the swift and secure transfer ofvalue and information among financial institutions, individuals, businesses and governmententities.GLOBAL PRESENCEVisa is a global payments technology company that connects consumers, businesses, banksand governments in more than 200 countries and territories worldwide. Visa Inc.’sheadquarters are in the San Francisco Bay Area, and we have approximately 7,500employees around the world. We operate three data centers on two continents. Visa Europeis a separate membership entity that is an exclusive licensee of Visa Inc.’s trademarks andtechnology in the European region.Today, our network spans:
• 14,800 financial institution customers• 2.0 million ATMs (as of December 31, 2012)• 200 countries and territories• 2.1 billion Visa cards (as of December 31, 2012)Visa has built one of the world’s most advanced processing networks, capable of handlingmore than 30,000 transactions per second reliably, conveniently and securely. In the fourquarters ended March 31, 2013 our global network processed:• 82 billion total transactions• $6.5 trillion total volume• $4.1 trillion payments volumeOUR PRODUCT: COMMON CREDIT CARDHow Does It Work?A card that combines all Visa credit cards that a person owns within a one piece.Shopping: You enter the CCC Visa to the POS and select among the banks that you use, itdirectly takes out the money from the preferred one.Payment: Pay the total amount to your CCC Visa and distribute it to the cards that you usewhatever you like using your CCC app or CCC internet banking.OUR PURPOSE• To combine all the Visa credit cards with a person has from different banks in a singlecard The average credit cardholder has 3.5 credit cards. Including both cardholdersand non-cardholders, the average consumer has 2.7 cards each. (Source: "The Surveyof Consumer Payment Choice," Federal Reserve Bank of Boston, January 2010)• To make people’s life easier• To have a chance to make all the transactions in a single account• Easy to access mobile applicationsFor the company;● Stop the decrease in sales in credit cards and balance the sales with debit cards
● Visa credit: 261 million as of Sept. 30, 2011 -- down from 269 million, as of Sept. 30,2010Visa debit: 392 million as of Sept. 30, 2011 -- down from 399 million, as of Sept. 30, 20104P ANALYSISProduct Features: Credit Card with chip and payWavePricing: Regardless of bank fees + 10 euro service fee (price premium)Placing: First release for selecting the banks to co-operate in July 2013, public release withaccepting orders in February 2014 . Cards shall be accesible then from the related bankbranches and alternative channels.Promotion: Main bank programme ( Final customer eliminates the card fee of the mainbank, the most preferred main bank gets the %6 per cent of the total service fee)SEGMENT, TARGET, POSITIONSegment:Alternative banking and credit using solutions.Target Group: Credit card users which has more than one credit cards and looking forpayment solutions, and as a result, high consumption levels.Points of difference:It’s a unique solution that’s why it’s desirable and differentiable.Accessible from banks which makes it deliverable.Segment :Alternative banking and credit using solutionsSWOT ANALYSISStrenghts:• Innovation• Global interaction• Ease of use
Weaknesses:• High exposure to risk and fraud• Litigation risks• Little customer loyaltyOpportunities:• Emerging markets• The explosion of the Internet• Mobile payment• Strong customer trend to move toward the use of debit cardsThreats:• Regulatory issues• New competition with online payment offer• Consolidation in the banking industry - bigger, larger competitors• Cyber targeting
BCG MATRIXBoston Consulting Group (BCG) model is a technique developed by BRUCEHENDERSON of the Boston Consulting Group in early 1970’s. According to this techniquebusinesses or products are classified as low or high performers depending upon their marketgrowth rate and relative market share. It is very useful tool to identify the product line of anorganization.BCG model classified in four main.1.) Star 2.) Cash Cow 3.) Question Mark 4.) DogQuestion Marks – Visa is in new markets or a different type of work than the company hasbeen doing which shows potential because they are growing rapidly. Beware of the fact theycould consume a lot of cash while you are putting the processes in place to manage theseprojects. A question mark could prove itself and become a star, and eventually a cash cow. Ifthe question mark does not prove profitable within 90 - 180 days it may be wise to stoptaking on those projects.
Product/Market Expansion GridIan Ansoff has proposed a useful framework called the product/market expansion grid fordetecting new intensive growth opportunities. There are four strategies, one for each of thequadrants:Market Penetration StrategyWhen the product is in the current market, it can still grow. There are three majorapproaches to increasing current products market share:1. Encourage current customers to buy more.2. Attract competitors customers.3. Convince non-users to use the product.Market-Development StrategyWhen the current product is launched in a new market, there are three approaches todevelop the market:1. Expand distribution channels.2. Sell in new locations.3. Identify the potential users.Product-Development StrategyWhen a new product is launched in the current market, the intensive growth strategiescould be to:1. Develop new features.2. Develop different quality levels.3. Improve the technology.DiversificationWhen a new product is launched in a new market, diversification makes good sense asbetter opportunities are found outside the present business. The diversification strategiesare of three types:1. Concentric Diversification Strategy: Develop new products with the earlier technology fornew segments2. Conglomerate Diversification Strategy: Develop new products for new markets.3. Horizontal Diversification Strategy: Develop new products with new technology for oldcustomers.
CUSTOMER CHARACTERISTICSConsumers who purchase our product are seeking value and quality but with specificsocioeconomic backgrounds.Since we firstly target the consumers with a high level of buying power and a high frequencyof buying behavior, we analized lifestyle characteristics of some of the target groups.According to our observations, todays modern people who works at international companiesand called “plaza insanları” in public are potential consumers that will easily accept adoptand realized the need of this new product. Time is an extremely important component oftheir daily life. Need to be presentable in their job, morning coffees to be able to cope withthe work tempo, online shopping habit, having lunch mostly at AVMs, high competitionbetween collegeus, using car, making weekend plans usually popular places/ holidaydestinations, buying gifts each other at special days, high demand on cosmetics, books anddvd, membership to sports facilities... all these elements brings the “spending”. They dospend a lo,t they do spend internationally and thus they need alternative campaigns,promotions , disounts and advantages with different credit cards. At this point our commoncredit card is a star solution to bring all in one. Its all your choice which bank account you willchoose.Having this common card will be another way of showing their socio-economic level, andhow they keep up with trends. Todays marketing approach, in some cases, these issuesmight be more attractive than financial profit. So making the product a priviliged icon andoffering a few membership grades within premium alternatives is essential. Alternatives willreach other target groups such as individuals with lower income , retailers etc...
Concept TestStage in product development process where a detailed description of a product (and ofits attributes and benefits) is presented to prospective customers or users, to assesstheir attitudes and intentions toward the product.The concept test sought to answer the following questions:-How large is the potential for the Common Card?-Which features would make it more appealing?-How much are people ready to pay for this card?-Who is the target audience?-Can the card be digital?-What should be the purchase and upload channels and mechanisms?Positive Feedbacks-Safer than other payment options-Less prone to fraud-Good way to protect my personal information-CommonCard stands for high security control-Buying on the internet now accessible for all-It is a modern way to pay-Has a security code-A CommonCard can be used to pay on any internet site-Especially interesting when buying on a website from a different country
Key Barriers-I am afraid that this card will not be accepted on many websites.-I do not want to go through the effort of loading a card.-The way of paying seems complex. Even in payWave you have to select preferred bank.-I do not believe this card may become widely available.PEST ANALYSISEnvironmental analysis is critical important in any industry especially in the bankingindustry. This PEST analysis contains assessing influences on the following four aspects:POLITICAL ENVIROMENT: International Relations, Current Legislation, FutureLegislation…ECONOMIC ENVIROMENT: Consumer Credit, Personal Disposable Income, ConsumerSpending, Saving&LoanSOCIAL ENVIROMENT: The age of population, Habits&Customs, Consumption Ideas andTrendsTECHNOLOGICAL ENVIROMENT: Database System, Global Communication, ReplacementTechnologyGENERIC STRATEGIESCost differentiation: Visa owns %49.6 of the cards that in circulation, it’s the marketleader. So we will choose cost differentiation strategy and put a price premium since it’s anew product.