CAPITAL ONE: LAUNCHING A MASS MEDIA CAMPAIGN
Why are we advertising?
* To create more awareness and communicate a position in the Canadian marketplace * To change negative attitude of Canadian consumers towards credit cards * To correctly deliver the message to Capital One’s target audience group and thereby increase revenues and reduce defaults Who are we talking to?
The target customers are prime and subprime customers. It started with 9.9 introductory offer which is priced very low. This seemed very attractive to revolving prime customers. Low interest rates are always attractive to revolvers than transactors. Previously subprime customers were ignored and Capital One is offering products to them which were not available earlier. Further Capital One didn’t rely on reward programs or partner in Canada. Reward programs are generally desired by super prime costumers. What do they think about the brand now?
Up until now, Canadians primarily knew Capital One as a price player. But because of U.S. advertising spillover few of them are aware of it as “great value without the hassle.” What should they think after seeing the ad?
The target audience should feel that Capital One offers a great value and hassle free transactions. Subprime customers should be able to feel that they are no longer ignored and new offers have come for them and that they can also have credit cards now. Prime revolvers should be able to think of replacing their primary card with Capital One because of its low cost or other rewards. Others should feel Capital One is more convenient and it offers better service than other banks. Proposition/ USP?
* Offering the lowest rates in the country, much below its competitors * Constantly provide new products to perfectly align to the needs of select customers Substantiation
In print ads, substantiation can be done by comparing different credit card services as shown in Exhibit 10. This will help customers in evaluating different...
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