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American Express
Submitted to Sir M.A Butt
Student name Zafar Ullah
Subject Consumer Behavior II
Reg. No 15 11 31 40 26
Email zafarullahsha...
Table of contents
Contents
Contents..........................................................................................
Acknowledgement
First of all I am indebted to Almighty Allah the creator of universe
and holy prophet Muhammad (SAW) the s...
Introduction
American Express Corporation launched its charge card as substitute to bank cards. Initially
the color of car...
Strength
I. Some segment of people are loyal too
II. Amex is maintaining good relations with
suppliers and vendors.
III. A...
Marketing objectives
To hold a strong brand Image that customers loves to.
Applying the marketing techniques to capture a ...
Consumer Behavior study
Why consumers choose American express card has certain factors its brand image which is create
and...
Marketing strategies
Target Audience.
Elite class CEOs executives who want quality and convince along with good brand that...
Recommendations
Be more efficient and effective
Cut the rates to attract more customers
Make strategies to beat Master car...
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American Express company Analysis

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American Express Case analysis including SWOT analysis Target Audience 4ps, company detail recommendations, segmentation

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American Express company Analysis

  1. 1. American Express
  2. 2. Submitted to Sir M.A Butt Student name Zafar Ullah Subject Consumer Behavior II Reg. No 15 11 31 40 26 Email zafarullahshar@iba-suk.edu.pk
  3. 3. Table of contents Contents Contents........................................................................................................................................................3 Acknowledgement........................................................................................................................................4 Introduction ..................................................................................................................................................5 Marketing objectives ....................................................................................................................................7 Consumer Behavior study.............................................................................................................................8 Marketing strategies.....................................................................................................................................9 Recommendations......................................................................................................................................10
  4. 4. Acknowledgement First of all I am indebted to Almighty Allah the creator of universe and holy prophet Muhammad (SAW) the source blessing for all human kind. I am thankful to Sir M.A Butt who enabled me to analyze this with his best of efforts and I am also thankful to Preston University a quality education institute
  5. 5. Introduction American Express Corporation launched its charge card as substitute to bank cards. Initially the color of card was purple but later it launched in gold green and platinum the customers gave an overwhelming response to American express card due to its novel and unique characteristics. That is why today American express has more than 34 million customers worldwide in 130 countries opted by more than 3 million establishments. Advertising by AmEx has went always successful and created the prestige image and targeted suitable segment. Its adverting has major role in creating its brand image which is enough to compete in market has edge over competitors. American express advertisement has played a vital role clearing the concerns about qualifications of customers and has always motivated to be part of valuable American express premium member. They don’t only motivate customers but they also provide faster process because they have employed 800 employs to foster the process. This proves that promised value with customers is also provided in real terms. Response from customers tells that advertisement campaign went very successful and met the expectations of company. Amex started its marketing campaign from early 1970s and first campaign was ‘Do You Know me ?’ this campaign went successful because it showed the well-known fames names and company claimed that they got recognition after being member of American express card. Here they played the trick that they made promise that every member of American express will have same prestige once they become member of Amex These all tactics are successful with in United States but not much successful in foreign markets like Japan and Europe, whereas in these markets more potential for credit cards is found. The reason behind lagging behind is that merchants say that Amex charges 4% more than the bank cards. The higher price charges is maintain the brand image but it also keeps away its targeted segments so this not less than a threat for American express because day to day markets are becoming more competitive and effective. Other companies who already captured markets so switch the customers from these companies to American express is not much easy .Among these countries and compared to European countries Japan has more established and competitive market and rapid player. The company aims to provide higher value to its customers but in order to maintain its brand image it should also widen its services which are relevant to upper class it should also maximize the approaches to reach customers directly and fell customers continue in their contacts. Its target it elite class so to be best substitute of wallet cash they should minimize the gap between uses of cash needed for elite class.
  6. 6. Strength I. Some segment of people are loyal too II. Amex is maintaining good relations with suppliers and vendors. III. Amex management is maintaining good relations with industrial bargaining agents IV. Amex is financing strong operating system at par with high standards Weaknesses I. Amex has not understood the consumer behavior in exhaustive manner II. They are not using other powerful techniques like situational ways III. Amex is facing cash as main competitor IV. Amex needs improvements in defining the mission and vision and corporate goals V. Amex needs to re visit the contracts of marketing strategies and deeply reflect on four Ps of marketing VI. HRM department needs improvements Opportunities I. Economic conditions are reasonably favorable II. Amex has to take care of legislation III. USA government has constant policies related to plastic cards industry IV. Amex is mobilizing all the efforts to make best use of technology V. Amex is enjoying dominant position in upper scale segment against competitors Threats I. Plastic card industry is facing passing of new legislations /laws II. Technological transformation is taking place and plastic cards are also been affected III. In the industrial context Amex position is weak in competition.
  7. 7. Marketing objectives To hold a strong brand Image that customers loves to. Applying the marketing techniques to capture a big market share To have a dominant position when it comes to plastic money More consideration on quality conscious as possible to customers as possible Attract customers who are not price conscious Widen the range of services to be provided
  8. 8. Consumer Behavior study Why consumers choose American express card has certain factors its brand image which is create and reinforced by different effective marketing campaigns and this card is widely acceptable at different platforms like McDonalds, Nueplex cinemas and Shoney’s family restaurants etc. The strategies for and tactics behind the success of Amex include High price. Customers who pay $50 for American express card perceive higher value in return whereas ordinary bank cards charge $15-20 as subscription fee. Higher prices paid by customers give them a thought that feel well because they are premium member of American express. Another factor is Quality and quality is directly linked with the price. Customers who pay more feel more qualitative and special. This card is also usable for 1400 travel agencies around the globe so it is considered as more qualitative and superior that is why customers don’t cry for higher price being charged. But American express provides cards to customers from above average elite class to college students who have better savings and earnings. 3rd factor behind the success is limited supply. This card is not for everyone but the company wants to maintain its brand image by giving the higher value to those who want quality not quantity. 4th factor is qualifying for this card is kept systematic. Customer’s call is received withed 7 seconds and customer can know for status in 48 hours about qualification. In order to maintain the brand image corporation has tried to make it limited to upper scale only so that they can have better services because American express customers are quality conscious not price conscious. Amex continually wants improve its services that’s why they spend huge amount of money on research and development.
  9. 9. Marketing strategies Target Audience. Elite class CEOs executives who want quality and convince along with good brand that depict their status. Segmentation Psychographicaly Demographically Geographically Brand lovers Quality conscious Who want to be differentiated Status oriented Gender Both genders Age students- Executives Ethnicity All Domestically in USA Internationally more than 130 countries. Marketing Mix Strategies Price Product Promotion Channel High price charged than average market price Amex is not for everyone. Less supply of cards to make it more valuable TVCs Digital Marketing Print Ads Billboards Website UAN Franchises Helpline
  10. 10. Recommendations Be more efficient and effective Cut the rates to attract more customers Make strategies to beat Master card and Visa Card Provide cards to the middle class with fresh name Explore more and untapped markets Have long run plans Provide gifts and other incentives program for potential customers

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