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Facultad de Administración

International Marketing - A

Consultancy Document on Final Project

Teacher: Carla Pennano

Angel Amador

Maria Fernanda Flores

Rafaella Zumaran Rendon

Sheyla Quispe
2023-1
INDEX
About
Why we chose VISA
Marketing strategy
Internationalization
International positioning
Market segmentation process
Suggestions for brand expansion
1. Brief introduction to the brand: year in which it was "born", history of the
brand, in which countries it is present and other interesting data.
Storytelling.

The story of how Visa was born is attached to the actual first introduction of credit
cards. It was back in 1958 when BankAmericard was launched as the first one
ever, by the well recognized Bank of America. It was an activated paper card with
a $300 limit that was sent to nearly 60000 people in California . Its usage in the
USA became so popular that, eventually, encouraged the firm to expand globally,
launch debit cards and in the inbetween of all the transformation process,
became Visa (a word that would be easy to say in every language). Its success
formed the International Bankcard Company (IBANCO) and the payment card
started rolling out on a worldwide scale.

Visa, as a brand, with its iconic blue and yellow logo was “born” in 1976, because
that’s the year when the name was first introduced to society. A little while after
that episode, back in the 80s ATM’s appeared, reinforcing the use of bank cards
and allowing the user cash access 24 hours a day.

Over the years, as their operations expanded and with plenty of innovations in the
way, they became the global payment technology company we all know. One of
the major innovations with such a significant advance in technology was not a
while ago, with the introduction of contactless technology, where a card chip
could be read by holding it near a point of sale, thanks to NFC or Near Field
Communication technology. Eventually this feature would evolve until it could be
used with smartphones and wearable devices in order to be read by terminals.

Nowadays, Visa is present in over 200 countries and territories around the world,
which makes it the largest and most recognized payment network. It operates
through a vast network of financial institutions, merchants, and cardholders,
facilitating billions of transactions every year. Visa's global presence and
acceptance make it a preferred choice for consumers and businesses alike,
enabling seamless and diverse payment experiences almost everywhere.

Today Visa operates with innovation as the foundation of the brand and uses it in
order to keep on providing new technologies to build better user experiences.

2. Why did you select this brand? What interested them about the brand and
its international marketing strategy?
We as a group selected VISA because of three main reasons: The new branding
campaign that the company developed around 2021 called “Meet VISA”, the
unconventional business model that VISA follows and the way they approach
their international strategy being a company that more or less gives the same
products and services all around the globe.

Talking about the first point, in july 2021 VISA introduced the world “Meet VISA” a
new mark identity with focus on reintroducing the VISA brand to everyone,
everywhere. Aligned with the brand business model, the campaign tried to give
the world a modernized look of the iconic brand. As stated by Lynne Biggar
(Global Chief Marketing Officer) the mission is to ensure that the brand is seen as
much more than just a credit card; they want to be acknowledged as a trusted
network that drives people forward. The rebranding consists of giving VISA a
simpler but strong look, making the visual identity of the brand accessible to the
mind of their users all around the world. On the campaign, they changed the VISA
brand mark, choosing a logo that have more movement than their last one, the
symbol is now simpler and represents a lot more: Access, equality and inclusion,
the color palette is optimized for digital impact and presence, the typography is
now more approachable than before and the photography now used on their
communication is centered on the customers living their day by day and showing
off all the ways of using the VISA network provides.

Visa was also selected as a brand of interest due to its strong international
marketing strategy. One key aspect is Visa's focus on creating a universally
recognized brand identity. The brand's iconic logo, featuring the blue and gold
colors, is instantly recognizable worldwide. This consistent branding approach
helps build trust and familiarity among consumers across different markets. It’s
important to take into account that VISA is one of the largest brands all around
the world at the network that they have created.

3. How standardized/adapted do you think this brand's marketing strategy is


and why? What would you change and what would you keep about their
marketing strategy and why?

Visa's marketing strategy leans towards standardization with adaptability. The


brand maintains a consistent global image and brand identity, as seen in its logo
and overall messaging. However, it also adapts its services and offerings to suit
the unique requirements of different markets. This balanced approach allows Visa
to maintain a strong global presence while catering to local preferences and
regulations.

If I were to make changes to VISA marketing strategy, I would emphasize further


customization based on local market nuances. This could involve deeper
collaborations with local partners and a stronger focus on understanding and
addressing specific market needs. By tailoring its offerings even more closely, Visa
can strengthen its position in each market and enhance its value proposition to
consumers and businesses.

4. What internationalization model do you think this brand uses? What phase
are they in? Do they export directly or do they have offices in different
countries, etc.?

Visa, as a global payments technology company, has been involved in


international operations for many years. It has a well-established
internationalization model that enables it to operate in numerous countries
around the world.

● Visa has followed a combination of approaches to its international


expansion.
● Visa relies primarily on partnerships and collaborations with local financial
institutions and payment processors in different countries.
● Visa leverages the existing infrastructure and payment networks of these
institutions, extending its reach and acceptance on a global scale. By
partnering with local entities, Visa is able to leverage local expertise,
regulatory knowledge and market insights, which are crucial to successful
internationalization.
● Visa maintains regional offices and subsidiaries in a number of countries to
support its operations and strengthen its presence. These offices are used
for market research, business development and relationship management
with local partners. This helps Visa to address the specific needs of each
market, tailor its products and services accordingly and foster closer
relationships with stakeholders.

5. From your point of view, how well positioned is the brand globally? Support
your answer with the international positioning theory taught in class.
Visa is exceptionally well positioned globally. It managed to positionate in a
worldwide scale, thanks to the implementation of marketing strategies that will be
explained in the next few lines.

In the first place, we had to analyze its market segmentation mainly because of its
wide range of product offerings. This includes credit cards, debit cards, prepaid
cards, commercial cards, and mobile payment solutions. The detail on every
product development is owed to the different customer segments Visa’s trying to
satisfy, varying preferences, using different patterns and financial requirements.

On the other hand, Visa’s collaborations with financial institutions and


organizations allow co-branding that is often designed to appeal to specific
target segments. As an example, airline and hotel rewards cards are gaining
more popularity and offering loyal customers to the brand.

Nonetheless, Visa works on developing innovative marketing strategies related to


each segment and country they are trying to reach. Has launched different type
of solutions focused on specific merchant categories. They have programs that
would support small businesses or even provide contactless payment options to
big industries, all over the world. These efforts are translated in every campaign
and tailored message or promotion offered to approach the market and generate
engagement.

On the path of contributing its market with all those innovations, Visa has
obtained a prestigious place in the marketplace. Its constant success came to
obtain some important competitive advantages which include brand recognition
and trust, strong partnerships, technological innovation and fraud prevention.

Continuous innovation and adaptation is key to keep on evolving according to


emerging market needs and changes. This flexibility is important to maintain a
position ahead of the competence in market trends and consumer demand,
having in mind that it competes with strong global payment networks such as
Mastercard, American Express and other regional payment systems.

6. How do you think the brand segmented and selected which markets to
enter and why? Support your answer with the international segmentation
theory taught in class.
Visa's market segmentation and market selection are guided by the principles of
international segmentation theory. In this case it is very important to take in
consideration basic information about the industry, such as the way money is
used at each place, how advanced technology is in the financial market and
which banks control the industry there. Also, the brand identifies key segments
based on factors such as demographics, legal regulations, the trust in foreign
companies, consumer behaviors, economic indicators and monetary regulations.
It considers the payment preferences and needs of different customer groups,
ranging from individual consumers to large corporations.

According to their international segmentation strategy, Visa uses diverse


segments between countries. This strategy is for those companies that have
different groups of consumers but sell the same product and for brands that use
a different strategy depending on the country they are working at the moment.
Visa takes this strategy because now they are installed in more than 200
countries, the word “Visa” is almost a world currency. It’s not possible for them to
focus their operations in just one country, but they have to adapt. They've been
doing this and we can notice it, knowing that it connects more than 160 currencies
all over the world. As said, they select markets based on various criteria, including
market potential, economic stability, regulatory environment, and strategic
partnerships. It seeks out markets with growing economies, high levels of digital
adoption, and a conducive business environment for electronic payments. By
entering such markets, Visa can tap into new customer segments and drive
growth.

7. If you were the General Managers of the company, what other countries
would you enter and why? Which countries would you leave and why?:

Infrastructure and technology: Companies consider the availability and quality of


infrastructure, such as Internet connectivity, mobile penetration and digital
payments infrastructure. Countries with strong digital infrastructure are more
likely to be attractive for the expansion of digital payment solutions.

Competitive landscape: Companies analyze the level of competition and market


saturation in a given country. They may choose to enter markets where they have
a competitive advantage or where there is room for differentiation and growth.
Partnerships and alliances: Companies may explore partnership opportunities
with financial institutions, technology companies or local government entities.
Collaborations can help leverage local expertise, distribution networks and
regulatory knowledge.

Visa has a global presence in North America, Asia, Europe and South America.
With Visa cards, the user has access to more than 1.9 million ATMs in 200 countries
around the world.

The countries we do not recommend entering are Syria, Afghanistan and North
Korea. Syria has been immersed in a civil war that has created a very unstable
and violent environment. The country's infrastructure has been destroyed and
security conditions are extremely precarious. Also, Afghanistan has endured
decades of conflict, including occupation by militant groups and the involvement
of international forces. Security remains a major concern, and the political and
social climate is extremely unstable, and finally due to its nuclear program and
human rights violations, North Korea is under international sanctions. Political and
economic conditions are extremely restrictive, and market access is scarce.

8. What do you think are the brand's marketing mix strategies? From your 4P's
analysis, what would you change and what would you keep and why?
● Product: Credit card, debit card, and electronic payment solutions are
among the payment processing services that Visa principally provides.
They also offer a variety of value-added services, including data analytics,
risk management, and fraud protection. Visa's product strategy is focused
on providing consumers and companies with safe, practical, and
dependable payment options.

Change suggested: Given the quickly altering payment landscape and new
technology, Visa ought to think about enlarging its range of products to
incorporate cutting-edge options like mobile wallets, contactless transactions,
and cryptocurrency integration. This would aid Visa in remaining competitive and
adjusting to shifting consumer preferences.

● Price: As a provider of payment processing services, Visa bases the


majority of its pricing strategy on the transaction fees it charges
businesses to process payments. The charges typically represent a
percentage of the transaction value. The goal of Visa's pricing strategy is to
achieve a balance between making money and keeping prices low in the
market.

While Visa's price strategy is generally effective, they could consider


experimenting with more flexible pricing structures in order to attract and
maintain small and medium-sized enterprises. Offering tiered pricing plans
depending on transaction volume or providing bespoke pricing solutions to
specific businesses could be examples of this. Such adaptability would
enable Visa to meet the different needs of businesses while also fostering
long-term relationships.

● Place: Visa operates in a business-to-business (B2B) environment, working


with financial institutions, merchants and payment processors around the
world. They form alliances with banks and financial organizations to offer
Visa-branded cards, extending their global reach and acceptance. Visa's
extensive network means that its payment services are widely available
around the world.

Suggested change: Visa should focus on growing in new markets and


regions with low card adoption rates to strengthen its market presence.
Visa can reach new customer segments and increase usage of its
payment solutions by strategically targeting these areas. Investing in
partnerships with local payment processors and financial technology
companies can also help businesses to have a stronger presence in these
regions.

● Promotion: Visa uses a range of marketing strategies to promote its


products and services. Advertising campaigns, sponsorships of important
sporting events, and collaborations with influencers and celebrities are just
a few of their promotional strategies. To stand out in the crowded market,
Visa stresses its brand values of security, trust, and convenience.

Change suggested: In the current digital era, Visa should devote a sizable
amount of its marketing resources to social media and digital marketing
channels. They would be able to connect with a larger audience in this way,
especially younger groups that are more engaged online. Utilizing
user-generated material and interacting with customers through
interactive marketing can also assist boost customer engagement and
enhance brand loyalty.

9. Final conclusions

In conclusion, Visa is a globally recognized brand that has established a strong


presence in the international market. Its success can be attributed to its
consistent brand identity, adaptability to local markets, and extensive network of
partnerships. They combine standardization with customization, even though the
core message of their communications is standardized, the solutions their offer
should be to, there are some countries that have more cards and benefits variety.

Visa's internationalization model includes establishing local offices and


operations to facilitate market penetration and support local stakeholders. If they
are planning to enter even more countries, something they should be aware of is
that fintechs are growing and banks want to stop outsourcing. Visa must study
which countries really need their services. They must continue selecting markets
based on segmentation theories and target countries with market potential,
digital adoption, and favorable business environments.

According to their positioning strategy, Visa has to take advantage of how well
positioned they are against Mastercard or AMEX in order to create more powerful
messages. The brand is well positioned globally, leveraging ownership, location,
and internalization advantages.

In summary, while Visa has been successful in its marketing mix strategies, there
are a few suggested changes to consider. These include expanding product
offerings to embrace emerging payment technologies, exploring flexible pricing
models for small and medium-sized businesses, expanding into untapped
markets, and increasing digital marketing efforts. By implementing these
changes, Visa can maintain its market leadership and adapt to evolving
consumer preferences.

Finally, as a personal approach, it is very important to know where, when and how
to enter different markets. It's not only for growing, each decision must be
covered. As General Managers, we would enter emerging economies with growing
digital payment adoption, while carefully assessing market potential and
regulatory challenges. Overall, Visa's global success stems from its commitment
to innovation, secure payment solutions, and collaborative partnerships.
10. References

Visa vs Mastercard, cuando la rivalidad es de plástico. (2015, July 14).


Expansión.com.
https://www.expansion.com/empresas/2015/07/14/55a568ae46163f6e608b45a1.h
tml#:~:text=Visa%20nace%20en%201958%20cuando,convertirse%20en%20MasterC
ard%20en%201979

Frankel, R. S. (2021, July 27). When Were Credit Cards Invented: The History of Credit
Cards. Forbes Advisor.
https://www.forbes.com/advisor/credit-cards/history-of-credit-cards/

Acerca de Visa. (n.d.). Visa.


https://www.visa.com.pe/acerca-de-visa.html#:~:text=Nuestro%20recorrido%20e
mpieza%20en%201958,fusionaron%20para%20formar%20Visa%20Inc

What we do | Unlocking opportunities for everyone. (n.d.). Visa.


https://www.visa.com.my/about-visa.html

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