KEY PURPOSE

 Increase Amex’s Card Member

Acquisition Rate
 Increase Amex’s “share of wallet” with
existing card member
 Reset the cost base
 Steps to be taken so as to bring
uniqueness to it’s services and bring a
creative change in membership reward
services.
KEY PROBLEM
 The key problem which is much prevalent
here is of understanding and developing a
market offering or Market mix for the
consumer.
 Due to rise in competition, changed market
trends and so company needs to rethink
about it’s current market offering and
strategise accordingly.
 If the company needs to maintain it’s
stronghold in market, it needs to reconsider
it’s Market Mix.
UNDERSTANDING THE CONSUMER
 Understanding of the consumer and the
market here becomes very much imperative
in this case.
 These questions are what we need to answer
in order to understand the market.
 Do consumers shift easily to other available
substitutes ?
 What are the main drivers of the market ?
 The consumers in the given market expects
more and better loyalty programs for
themselves.
 They prefer Loyalty programs which cater to
their needs and help them save money.
 Yet the consumers do value the brand Amex
for other concerns such as services etc.
 Hence, though the consumers value
Membership reward programs but still they
also give preference to other considerations
such as services.
 The market here is driven then not only by
the game of more and more reward points.
 The connect which the Marketing Mix of the
company can create with the customer, that
ensures customer satisfaction.
 Even though the consumers believed that
they didn’t get anything unique in the
Membership reward programs, still they were
satisfied with the product.
SOLUTION
 PRODUCT COMPONENT
The company needs to make programs which
can cater to the needs of a wide range of
customers. They must go for customised
program making plan so that they can suit to
the needs of individual customers. Customer
waste a lot of their time in deciding about the
program that suits them best. Helping them
out in this regard may help them acquire new
customers and increase their share of wallet.
 PLACE COMPONENT
 The company needs to increase their
avenues and the ways in which customers can
redeem the reward points.
 Valuation is subject to change and customers
believe that such value change easily changes
with time.
 Provided that company provides more
avenues to use their card, this may act
positively on customers psyche.
 PRICE COMPONENT
 Company need not to wage a price or reward
war with other competitors.
 There must not be huge fluctuations in the
price for price is not the main market driver
here.
 Price component here does not involves
much change in the given case.
 PROMOTION COMPONENT
 Company can seek to partner with premium
hotel chains, top notch restaurants, Movie
halls etc. so as to grab more of customer
attention.
 Go for promotional techniques which can
build an emotional connect with customers
such as printing of some memorable picture
on the card.
REDUCING COST
 Cost can be reduced by the way of entering
into non-conventional promotional
techniques.
 Amex’s main source of expenditure belongs
to marketing and promotional activities.
 Entering into partnerships with other brands
and products would give company wide
visibility as compared to competitors.
 This would also help them to cut marketing
budget and thereby reduce cost.
INNOVATION IN MR
 Company can bring in innovation in MR by
building customised royalty plans.
 Building customer centric plans will help
them to achieve uniqueness in services.
 Increasing avenues so as to use the card more
would in turn help them grab more customers
with less costs.
 Separating themselves from competition, the
non monetary benefits of Amex’s cards will
be the major contributing factor of it’s
success , as in past.