“Live Without Fear” Using Consumer Truth To Create Marketing History in Credit Cards

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  • Live Without FearUsing Consumer Truth To Create Marketing History in Credit Cards

  • *THE CLIENTA crowded marketIn 2001, there were five mn credit card in circulation in IndiaMarket growing at 20- 25 % CAGRThirteen issuing banks already presentAll types of cards- classic, gold, co-branded, affinity..

    ABN AMRO- a late entrantABN AMRO a relatively small MNC bankJust 10 branches and 200,000 customers in IndiaLow salience and no historical retail equity

  • *THE BRIEFTo create a proposition so distinct and close to the customers heart that it would overcome challenges of being a late entrant in a crowded market, and create its own market

    To get to that something about the consumer that is unique and relevant and can be owned by ABN AMRO

  • Who should ultimately design the product? The customer, of course- Philip Kotler

  • *Cultural analysis, traditions & beliefs on savings and financeUnderstanding consumer needs, attitudes and usage habits with credit cardsDeveloping and fine-tuning concepts for ABN AMRO credit cardDisaster check of the communication prior to launchTHE PROCEEDINGS- RK Laxman


  • Consumers are people first and then users of products- Philip Kotler

  • *THE ARGUMENT: Cultural ContextSelf-restraint and sacrifice of pleasure is reveredDeep emphasis on saving and aversion to debtSavings needed toMeet unknown contingenciesTo show respect for ones income

  • *However, changing values and lifestyles are leading to increase in spending

    THE ARGUMENT: Cultural ContextEmphasis on Controlled Spendingjitni chadar hai pair utna hi failana chahiye..

  • *Seen as a loan, rather than a payment facilitatorPromotes unwanted and impulse purchasesLeads to overspending

    THE ARGUMENT: Credit Cards

  • A look at the motivators and barriers to credit card usage

  • *THE ARGUMENT: Motivators.Power of always having money in handTo deal with unpredictable situationsFlexibility to spend as one desires

    you feel you dont need anybody you can do it on your own

  • *Power of always having money in handFreedom to spend on anything no restrictionsCan deal with unforeseen eventualitiesSecurity- reduces unpredictabilityConfidence THE ARGUMENT: Motivators.

  • *Credit cards seen as a temptress and a debt mechanism

    credit card mein aap dekh nahin rahe ho.. Paisa.. Hota hai ne ki apne haathon se gin kar noton ka dena..THE ARGUMENT: Barriers.

  • *CREDIT CARDSNo track of expenses- no cash exchange, less consciousnessIncrease wants, desiresImpulse purchaseRoute to indulgenceAccepted only in big shops more expensiveTHE ARGUMENT: Barriers.

  • *The barriers to subscriptionits a sweet poisona trapThe barriers to usageSpend lightly, pay promptlyaakhir yeh udhar hi to hai na.THE ARGUMENT: Barriers.


  • *Basis various needs, 5 concepts were developedWe share here the concept that attracted maximum appeal.. and went onto become the Freedom Credit Card

    THE RULING: Concept.

  • *With a credit card one does not need to carry huge sums of cash in hand and plan day to day cash requirements. The only problem is credit cards encourage impulse buying! Am used to living within my means and I feel credit cards will make me lose control over my spending

    Introducing the new ACCESS card. It offers you some unique features that make the card the most convenient way of making payments. It also helps you be in control of all the unnecessary expenditure Convenient credit, easy control THE RULING: Concept.

  • *The facility of issuing cheques on your credit card - .

    The card itself is extremely easy to apply and use. Receive the card within 10 days of application or GET IT FREE!

    You could also check your transaction details by simply accessing any of the nearest ATMs using your card.

    THE RULING: Concept.

  • *You will receive alerts the moment the spending on your credit card exceeds the pre-set limit specified by you at the time of applying for the credit cards, through mobile SMS, OR e-mail OR a letter. This pre-set limit can be increased or decreased depending upon your own requirements

    A consolidated annual statement of your transactions will be available on request. All your transactions will be segregated under separate heads such as spends on clothing, food, travelling, petrol etc., which will allow you to analyze your spending habits. This will help you budget and control expenses in the future THE RULING: Concept.

  • *Compared to the convenience features (cheque issuance, ATM usage) the control features (alerts, pre-set limits, break up of expenses) found stronger appeal

    Convenience features were seen as relevant, but not unique. Hygiene benefitsControl features were seen as unique and highly relevantRecommendation: emphasize control features and mention convenience features brieflyTHE RULING: Reactions .

  • *Various names testedAccess and Freedom both liked

    Freedom met with greater enthusiasmFreedom associated withFreedom from worries of overspendingFreedom to choose own limitFreedom to purchase anythingTHE RULING: Whats in a name.

  • *ProductAttributeBenefitPersonal ValueCredit cardAlerts Control mechanism Flexible credit limit.Functional BenefitEmotional BenefitFocus on ways to restrict spendingCredit cards move from the domain of temptation to act as the conscienceSecurityTHE RULING: Means-End Theory.


  • From Temptress to Governess

  • *THE CASE FILE: Unveiling The Freedom Credit Card

  • LIVE WITHOUT FEARThe Commercials

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  • *THE CASE FILE: Kiosks

  • *THE CASE FILE: Drop Box

  • *THE CASE FILE: Customized Envelopes


  • *20,000 enquiries were generated within first 8 days of launch

    One of the fastest card ramp-ups450,000 applications received & 50,000 cards issued within first 2 monthsTHE TESTAMENT

  • *Card activity rates were at about 70% as compared to industry standard which was less than 60%

    Average card spends were about 50% higher than industry average

    Business was set to achieve profitability 2-3 years faster than any other player in Indian marketTHE TESTAMENT


  • *THE VERDICT: This is a Consumers taleThe battle very often is not one of generating insights from the consumer, the battle is in holding faith in what the consumer wants, and in single-mindedly working towards fulfilling that need, by weaving all aspects of the offering around it.

  • *Thank You!