2.1ABOUT FINANCIAL CARDS3
2.2ABOUT THE CORPORATE CARD3
3.BACKGROUND OF AMERICAN EXPRESS COMPANY5
4.CORE AND SECONDARY TARGET AUDIENCE6
4.1CORE TARGET AUDIENCE6
4.2SECONDARY TARGET AUDIENCE6
5STRENGTHS IN MARKET SEGMENTATION7
5.1SMALL SCALE BUSINESSES7
5.2MEDIUM SCALE BUSINESSES7
5.3LARGE SCALE BUSINESSES8
6BRAND POSITIONING VERSUS ITS COMPETITORS9
6.1PUBLIC’S PERCEPTION OF AMERICAN EXPRESS’S BRAND9
6.1.3Best membership benefits and services10
7COMPETITIVE PRICING AGAINST OTHER COMPETITORS11
APPENDIX A Comparing American Express’s Benefits with Its Competitors13 APPENDIX B Comparing Membership Reward Points14
APPENDIX C Qualitative Questionnaire15
This report entitled – ‘Business Research of American Express Company’ is a group assessment task for 332BUS, Business Research, Coursework 1.
‘If we could first know where we are, and whither we are tending, we could then better judge what to do, and how to do it. — Abraham Lincoln (1861-1865), the sixteenth President of the United States
The author selected American Express Company, a leader in its industry, and attempts to conduct a business research of it as part of Coursework 1. This is accomplished by:
➢ Establishing its core and secondary target audience definition; ➢ Researching its strengths in market segmentation distribution; ➢ Identifying its brand position versus that of its competitors; ➢ Determining its competitive pricing versus that of its competitors; ➢ Designing a qualitative questionnaire.
The content of this report is made for the purpose of XXXX University BA Program, Business Research. The data presented is intended solely for academic purpose & based on assumption. The students shall not be liable for any future un-authorized or improper use of the information.
The authors have chosen to focus on American Express’s financial card division in Singapore and in particular, their corporate card solutions for this assignment.
The reasons for choosing this market on are:
➢ The financial card market in Singapore is a competitive one, with players offering varieties of offers and rewards to expand their card base.
➢ Global travel and entertainment spending has increased (Visa U.S.A. Inc. 2007) and it would be beneficial for financial card companies to concentrate on corporate cards in particular.
2.1ABOUT FINANCIAL CARDS
The term “financial cards” refers to credit cards and charge cards.
Charge cards are used to charge their purchases with full payment at the end of the month. Late fees are charged if payment is not received on time. No interest is charged.
Credit cards, on the other hand, allow the customer to receive credit as long as a minimum sum (which is normally a percentage of the outstanding amount) is paid every month. The outstanding amount has to be within a credit limit which is usually 2 times the card users’ salary. Interest will be charged on outstanding balances.
2.2ABOUT THE CORPORATE CARD
Corporate cards are issued to businesses for their employees to cover mainly travel and entertainment (T&E) expenses. Corporations apply for cards for their employees When it comes to payment, corporate cards fall into two categories: individual payment cards and company payment cards. Employees issued with an individual payment card are responsible for submitting their own expense reports and paying directly for any charges. With company-payment cards, the employer picks up the tab for all company-sanctioned charges.
American Express counts among its local competitors as Citibank, Standard Chartered, and Hong Kong & Shanghai...