CASE 3:

Chase Sapphire: Creating a Millennial Cult Brand

1. Managing product portfolio (Minimize Cannibalization)
To minimize cannibalization, a proper differentiation between Chase preferred and Reserved categories is
required. They were clearly differentiated in their offerings. Chase reserve gave the extra perks like
airline, hotel, hotel elite status etc for its higher annual fees of $450.The redemption values and points
earned were also different.

2. Remove Churners or how to convert Churners into profitable customers

● For millennials, it was about accumulating experiences so increase the number of travel and hotel
partners for collecting points.
● Points for every third transaction when using Lyft or Uber that could be redeemed during the next
trip to avoid churning.
● Creating personalized offers during birthdays and anniversaries on card.
● Extra cashbacks or points after two years from the date of issue that can be availed for the next
three months.

3. How to captivate people to pay Annual Fee for Rs 450?

On top of the 100K point signup bonus, the card also comes up with a $300 travel credit per calendar
year. Since it is a calendar year, $600 of travel credit during first year would make up for the$450 fee.