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

1. American Express

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. Table of contents
Contents
Contents........................................................................................................................................................3
Acknowledgement........................................................................................................................................4
Introduction ..................................................................................................................................................5
Marketing objectives ....................................................................................................................................7
Consumer Behavior study.............................................................................................................................8
Marketing strategies.....................................................................................................................................9
Recommendations......................................................................................................................................10

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. 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. 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. 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. 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. 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. 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