Capital One Platinum MasterCard

“It’s the Only card you'll need”

Project Proposal

Project Group Loy Simpson Aranha Introduction of the product Positioning Target Market Manisha Rattan Price Place Promotion Vinshu Makkar Budget Objectives Summary

Agenda Product Snapshot Why Capital One MasterCard? Target Demographics Financial Highlights Income Sources Objectives Summary

• Cash back credit card that's exclusively for Costco members.

• Doubles as your Costco membership card.• Pay no annual fee• No limit on how much you can earn.• Get access to a higher credit line after making your

first 5 monthly payments on time

Product Snapshot

Why Capital One MasterCard?

• Accepted at 35.9 million locations, including 2.1 million ATM’s worldwide

• Zero liability protection • 3% on restaurants, 2% on gas, 1% on everything

else.• Additional perks such as free authorized users,

automotive features, travel benefits, and a lot more.

Who Is This Card for: Target Demographics

• People with Average Credit.• Costco members who eat at restaurants

regularly • Significant amount each month on fuel.• Frequent purchases and want to earn cash

back.

The major reason to choose an AMEX card was their long-time partnership with Costco.

Assure existing and new customers the opportunity to earn rewards despite the split.

The old card had an annual $4,000 limit in purchases

The best part, of course, is that the transition has no effect on your credit score.

How Does This Card Compare to the Old Costco Partner AMEX?

FINANCIAL HIGHLIGHTSCapital Budgeting for Platinum Credit Card Approximately $5 million would be the amount that we need to spend to capture

the Costco member Annual spending on fixed costs will remain constant Expenses of variable nature would fluctuate as per the budget in upcoming years

Promotional ExpensesBrand Retention Customer Maintenance

Brand Retention Customer Maintainence Promotion0

100

200

300

400

500

600

700

800

900

1000

274.6

411.9

686.5

312.2

468.3

780.5

355.908

533.862

889.77

Yearly Spending(in millions)

Expenses 2013Expenses 2014Projected Expenses 2015

Income Sources

Fees charged

from merchant

Cash Advance

fees

Interest payments

Objectives of Launching Platinum Credit Card

Opportunity to Capture 20-25% of market share by attracting Costco members.

Long term earnings from Interest payments. To increase the use of Capital one MasterCard to make it a preferred

mode of payment i.e. 60% or more in all Costco Stores by 2020. To provide the best and fast Customer service in resolving their

disputes by having a separate department in our existing Call Centre exclusively for Costco Members.

Product awareness by promotional strategies to increase the overall MasterCard usage by 25%.

Objectives of Launching Platinum Credit Card

To achieve the target of 2.5 percent of returns for Investors by 2020.

Collect customer information which will help in running Referral programs every year.

Brand Popularity

Tie up with At least 3 retail stores by 2018

Summary

About our product

Why we are launching this product?

Whom are we targeting?

Marketing Mix

Our objective