Problem Background
Chase introduced the Sapphire Reserve credit card in 2016, and it rapidly gained prominence among millennials. However, after a promising start, several new obstacles compelled the business to adjust to shifting market dynamics. Consequently, this analysis will examine the marketing obstacles that Chase faced after the release of the Reserve card. Specifically, I will investigate the causes of the company’s difficulties and recommend a strategy for overcoming them. This evaluation will provide important insights into how Chase can better serve its customers and maintain its competitiveness in a rapidly changing economic environment.
The Business Need of Chase
Chase, a well-known financial institution, faces a marketing challenge in its premium credit card market. The Reserve card, a product that in the past successfully attracted millennials in search of a unique experience, has gradually lost its exclusivity as the number of companies offering similar rewards has increased. Chase must develop a comprehensive and efficient strategy that will enable them to retain its established customers and attract new ones to maintain its market leader position. This would require a comprehensive analysis of current market trends, customer preferences, and their competitors’ strengths and weaknesses (Santana et al., 2017). By doing so, they can create a distinct and compelling brand image that will cohere with their target market and allow them to maintain a long-term competitive advantage.
Analysis
Branding
Chase has a great opportunity to stand out by developing a brand identity that is distinct, authentic, and relevant to its target market. To achieve this objective, the business should consider capitalizing on its existing brand equity and enhancing its current reputation for quality and dependability (Santana et al., 2017). Thus, Chase can leave a lasting impression on its customers and cultivate a devoted following. Targeted messaging is one method for developing a solid brand identity. Consistent visual branding is also essential for constructing a solid brand identity.
Product Innovation
Chase has a good chance to differentiate itself from the competition by emphasizing product innovation. To do so, the business must develop new features that meet the requirements of its target market. One strategy could be to provide customers with unique travel experiences. For instance, Chase could collaborate with luxury hotels to offer packages that include access to exclusive events or activities. This would provide customers with additional value while attracting new ones (Santana et al., 2017).
In addition, Chase could consider offering a customer loyalty program that rewards them for using their services. This would encourage users to keep using Chase rather than its rivals. Chase can establish itself as an industry leader and continue to expand its customer base by taking these steps.
Pricing Strategy
Chase must re-evaluate its pricing strategy to ensure continued market competitiveness. To attract a broader range of customers, the business should consider offering a variety of pricing plans. To draw buyers who are less interested in premium rewards, the company could, for instance, provide a lower-tier credit card with fewer services and a lower price.
In addition, Chase should conduct market research to determine its target customers’ particular wants and requirements (Santana et al., 2017). By doing this, the company can tailor its pricing plans to better meet its customers’ needs. Additionally, the company could work alongside other brands or businesses to offer bundled pricing options, enhancing the credit card’s perceived value.
Digital Marketing
Chase should invest in Internet marketing to reach its target audience more effectively. The company can conduct market research to determine the most effective platforms for reaching its target audience. Once the appropriate media have been identified, Chase can develop material that connects with its target audience. This can include customized videos, visualizations, blog posts, and other forms of content.
In addition to producing compelling content, Chase can utilize social media platforms to increase brand awareness (Santana et al., 2017). The company can use social media websites like Facebook, Twitter, and Instagram to interact with its target audience. Chase can build a robust digital presence and a loyal following by continuously sharing valuable content and interacting with its followers.
Recommendation
Based on the preceding analysis, Chase should prioritize product innovation and digital marketing to overcome the marketing challenge. The business should offer new characteristics and advantages aligned with its target market’s needs, such as exclusive event access and enhanced rewards. In addition, Chase should invest in digital marketing to more effectively reach its target audience and generate brand-building content.
To support this recommendation, we argue that product innovation and digital marketing are essential for establishing a solid brand identity and setting the company apart from its competitors (Santana et al., 2017). Chase can attract and retain new customers by introducing new features and perks. In addition, by utilizing online marketing, the company can more effectively reach its target audience and build brand awareness.
Limitations
This analysis provides recommendations based on the available information, which may not be exhaustive. It is always possible that some of the variables that could influence the company’s performance were overlooked or undervalued, although the analysis covered a vast array of them. Nonetheless, the provided recommendations should be an appropriate starting point for Chase as it seeks to enhance its operations and overall performance.
It is worth noting that applying these suggestions may necessitate substantial company resources and expenditures. For instance, if Chase decides to add novel services or goods, it may need to invest in new technology or hire extra personnel to support these offerings (Santana et al., 2017). Similarly, if Chase decides to enter market opportunities, it may need to invest in market analysis, marketing campaigns, and other resources to build a reputation there.
Reference
Santana, S., Avery, J., & Snively, C. (2017). Chase Sapphire: Creating a Millennial Cult Brand. Harvard Business School Case 518-024.