An Analysis on Marketing communication of American Express Credit Card and

it’s competitors in Bangladesh

Prepared for Prepared By

M Maruf Hassan Monti
 Credit Card

A credit card is a small plastic card issued to users as a system of payment.

• cardholders can buy goods and services based on the promise to pay

• user can borrow money for payment to a merchant or as a cash advance to

the user

• sometimes cardholders can use it to make purchases through instalment

plan
 Amex - as a Company
American Express is a diversified global financial services company founded in 1850.
Amex operates in 130 countries around the globe. The company is best known for its
credit card, charge card, and traveler's cheque businesses brand in the world

Founded 1850
Headquarters New York City, United States

Area served Worldwide

Industry Finance, insurance, and travel
agencies

Products Financial and travel services

Website www.americanexpress.com
 Amex - as a Company
– Historically, American Express operated in the card business where
only they issued American Express cards on their network

– In 1996 American Express made a strategic decision to open up the

American Express network to other financial institutions and issuers

– Global Network Services (GNS) was set up in 1997 to manage and

grow this new line of business which is seen to be one of the growth
areas for the company

– GNS has no direct access to the customer – Amex serves as a network

– As of today, there are 110 partners on the network in around 130

countries. They are focused on strategic partnerships

– Amex is known for innovation and flexibility

 American Express Brand Attributes
The American Express brand is a unique and extremely powerful tool to attract
and acquire high spending customers.
BusinessWeek and Interbrand ranked American Express as the 22nd most
valuable brand in the world.
TRUST & INTEGRITY
by treating customers fairly & honestly
CUSTOMER COMMITMENT
providing superior service, benefits & extraordinary
support whenever required

WORLD-WIDE SECURITY
a “safety net” wherever customers are and
whenever they need help
SIGNALS SUCCESS
by helping customers reach their goals and by giving
them the tools to attain even greater
success
QUALITY
the highest quality in services & products,
outstanding value for price
 Amex-Launch in Bangladesh
• On 7th November 2009 City Bank introduced American Express Credit
Cards in Bangladesh.

• It was introduced to the national media on 7th November 11am at Westin,

Dhaka through ‘Meet the Press”. Top members of national media that
includes the Business editors from Press, Radio and Website were present
on that ceremony.

• The Grand Launch event was held at Radisson Water Garden Hotel on
the same day at 7pm in presence of Bangladesh Bank Governor and the
VIPs of the society.
 Amex Credit Card in Bangladesh

 
 

Gold
 Amex Gold and GB card Features
American Express Gold Credit Card features and benefits:

• Complimentary Companion Air Tickets to Kolkata

• Access to the American Express Airport Lounge
• American Express Fast Track channel at airport immigration
• Complimentary Dining at The Westin Dhaka
• 6% Cash Back at Nandan and Agora

American
  Express Credit Card features and benefits:
 
• Complimentary coach tickets to Cox's Bazaar
• Complimentary Theme Park Tickets
• 6% Cash Back at Nandan and Agora
• American Express SelectsTM
 Communication Strategy of Amex
ATL communications
•American Express Credit Cards were introduced in 2 major dailies of
Bangladesh with a clutter breaking ad which taken the market by
storm on 8th Nov 09

•The press ad was a 4 page jacket based on the History of American

Express heritage, Strategic benefits and the partnership between City
Bank and American Express hand holding and the Selects Privileges

•The selected news paper was Prothom Alo & The Daily Star; the
most circulated newspapers in Bangladesh

•Half page (80 CI) ads on 8 top newspapers has also been placed to
declare the introduction in Bangladesh on the same day
Newspaper Jacket Ad
American Express Heritage newspaper ad
Half page newspaper ad with
Strategic Benefits
 Generic Newspaper ads
Generic newspaper ads with the communication of card benefits
appeared on newspapers in 40 CI (columns-inches)
 Strategic Benefits Newspaper ads
All the strategic benefits 40 CI ads appeared on newspapers till Jan 2010.
American Express SELECTS
Newspaper ad
 Out of Home Communications
43 Billboards in 4 divisional city
Dhaka, Chittagong, Sylhet &
Khulna showed the American
Express heritage and City Bank
introduces AMEX in Bangladesh
form 7th November to 14th
January 2010
 Mega Signs

Mega signs at different part

of the city shown AMEX
and City Bank logo
subsequently under brand
the blue campaign.
 Mega Balloons
• Apart form the billboards
and mega signs 7 mega
balloons bearing City
and American Express
logos side by side form
8th Nov to 23rd of Nov’09.
 International Airport Branding
City Bank- American Express
branded the Hazrat Shahjalal
International Airport with

• 54 check in counter desks

•Arrival and Departure Immigration

counter desks and desk over head

•Fast Track channel for City Bank

American Express cardmembers

•Balaka Lounge with X stand

banners and tent cards.
(City Bank- American Express lounge will be in
operation from 16th of August)
 BTL Communications
•Out of 87 branches 50 prominent City Bank branches were branded with the
following branding materials.
Tent Card (Apply Today)
Glass poster (Product Benefits)
X stand banner (Apply Today)
Brochures with stand (Short product brochure)
•47 ATM booths were branded with

Glass Sticker
Over Head fascia
Sandwich poster inside the booth (AMEX heritage & Apply today)
ATM display shows Apply today
•More than 134 Q-cash ATM booths bearing cards acceptance sticker on the
front face of the booth.
 Strategic Partners POS branding
Amex has total 7 Strategic Partner as..
Dhaka Westin, Jet Airways, Baghdad Express, Nandan Megashop, Agora
Superstore, Fantasy Kingdom, Balaka Lounge at Hazrat Shahjalal Int.
Airport.
POP materials X-stand banners, Posters, Cards welcome decals and Tent
cards are placed at strategic merchant points.
 SELECTS Merchants Branding
with POP materials
All together 70 SELECTS merchants with 118 outlet.

SELECTS customized PoP materials:

X-stand banners
Menu Stand (dining only)
Wall poster
Tent card
Reserved sign (dining only)
Bill folder (dining only)
Co-signages & Light Box
 More brand building at BTL
•City Bank-American Express pro golf Championship 2010: City Bank &
American Express held a professional golf tournament to drive credit card
sales among the top notch of the society who were into golf playing
•US trade fair 2010: American Express
stall at US trade fair has also
contributed significantly
to promote the experiential marketing
activity of American Express
 More brand building at BTL
•The Genious of Valmiki - a musical drama: Amex made
their entry to the Art and Cultural arena of the country with
the sponsorship of ‘the genious of Valimiki’ the first
musical opera of the
country on March 12, 2010
• Evolution of Saris:
City Bank & American
Express showcased a
fashion show entitled
“ The Evolution of Sharis
in the subcontinent over
100 years”at Ahsan Manjil
 SWOT Analysis of American Express

SWOT Analysis
•Strong financial background
• Global brand-Heritage of 150
years
  STRENGTHS
  • Global reach & presence
•Strong brand equity
•2480 POS machine and 1760
merchant
 SWOT Analysis of American Express
SWOT Analysis
•Higher merchant rate
•Weak network(inability to work

  in offline )
WEAKNESSES
  •Sales team is not well
sophisticated
•Intl. Amex card is not accepted
in BD.
 SWOT Analysis of American Express
SWOT Analysis
•Credit card is becoming more
associated with lifestyle

  •Unsaturated market
OPPORTUNITIES
  •Socio-economic condition
 SWOT Analysis of American Express
SWOT Analysis
•Competition from other
financial institutions

  •Govt. intervention
THREATS
  •Possibility of new entrance.
(Visa/Master Card)
 Card Market

Credit card type

Visa user dominant due to demand

Master Card holders are present but in selected outlets

Competitive scenario summary

SCB gives standard service rest are rated poor

In terms of pricing SCB is high and rest are lower

 Competitors

•Standard Chartered Platinum Card

•Brac Bank VISA Gold Card

•EBL Platinum VISA Card

 Credit Card Users in Bangladesh

UCB, 21000 Amex, 2620

0
EBL, 23000

BRAC, 5500
0

SCB, 15000
0
 Benefits Of SCB Credit Card
•InstaBuys @ 0%
Instalment plan that allows carmembers to convert any
retail purchase over Tk. 3,000
•Free@18
Cardmembers can get 100% waiver on their next Annual
Fee by doing only 18 transactions during the 12 month period between 2
Annual Fee dates.
•Auto BillsPay
cardmembers no longer have to stand in long queues for paying their
monthly bills of Electricity,Mobile Phone Internet.
•Card Cheque
Card Cheque (Account Payee only) for payment to any person or
establishment within Bangladesh. .
 Benefits of EBL Platinum Card
•Lower Interest Rate: at 2.17% per month where a regular card is charged at
2.5% per month.
•Balance Transfer at 20%: able to transfer cardmembers current other bank
Card outstanding balance at 20% annual interest to their EBL Visa Platinum
Credit Card.
•Travel Accident Insurance: EBL Visa Platinum cardholders are
automatically entitled to a minimum coverage of BDT 10,00,000 for Travel
Accident Insurance.
•Emergency medical assistance: provides cardholder with contact details of
physicians, hospitals, clinics, dentists and dental clinics.
•Free First Card Cheque: cardholder enjoy a full-fledged cheque book
facility.
 Benefits Of BRAC Visa Gold Card

•Card cheque Facility: with a reduced interest rate of 27% against their
credit card limit
•FAST Rewards Program: allows carmembers to earn some points every
time whenever they spend their money through POS
•Balance Transfer: cardmembers have the option to transfer their current
outstanding balance at a much cheaper rate of 22% to their BBL Credit
Card.
•PayFlex: Installment program that allows Cardmembers purchase from
selected PayFlex partner outlets for 0% interest
 Competitive Scenario in Media

• Brac, UCB, Prime have limited media presence in Press, Magazines, FM

radio and TV

• Among the lot BRAC and EBL has come up with specific brand identity

• SCB’s business volume is high and the TA already know them as leader.
Their exposures include CSR, Golf, Magazines, presence in clubs and
outlets widely
 Communication of Brac Bank

Brac bank come up with ATL communication strategy

• TV ad
• Press Ad
Communication of Brac Bank
 Communication of Prime Bank

• A Bank with Difference

• Get more from life

• Spend in Style
• Free life insurance benefit package
SCB’s communication

– Prestige, Pride & Strength

– In welcome guide
• “You want a smooth life, we help you sail through it”

– In Rewards Catalogue
• “You choose the right partner, we reward the partnership”
 EBL Billboard

 
 
 Press Ad’s of EBL

 
 
 EBL

 
 
 Press Ads of EBL

 
 
 Recommendations

• Trained up Sales Team

• Card members should recommend new merchants
• New demand could be established by operating more in general
utility arena
• The existing service level can be enhanced (Full Travel Package)
  • The number of POS machines should be increased and network
 
coverage should be uninterrupted
• As Amex always focuses on strategic partners SELECTS should
add more partners with them.

.
 Recommendations

• Financial control through online to track all financial accounts

• Develop network service on POS machine
• Providing Superior Customer service
• Life Style Assistance for card members
• Need more activation for the card members to create word of
  mouth
 
• Need more BTL activities and taking advantages of ATL through
these.(e.g. The Genious of Valmiki, Evolution of Saris etc.)
• City Bank should motivate their card members through rewarding
them
• Should reduce income requirements of the card members.
THANK YOU
 ?
QUESTIONS