Question

1- Choose one of the major credit card companies, e.g., Citi, Chase, Capital One, etc. How does your chosen bank use its variety of credit card programs to build relationships with the right customers? Provide at least one specific example in your response.

2- Based on your choice in Questions 1, what are the main variables your chosen bank has focused on to segment its markets? Which of the segmentation variables do you like the most?

3- Now, based on the above, develop a brand new credit card for a specific target market segment of your choice. First, describe your chosen target market segment. What are the unique consumer needs of your choice segment? Finally, specify the key features of your new credit card program. Explain how it differs from existing credit card programs and how this new card could meet the unique consumer needs of your choice segment

Answer 1

Part 1

The chosen credit card is CITI credit card. The choice of CITI credit cars=d is made due to CITI being the market leader in the credit card operations sphere and due to CITI coming up with various credit card programs to foster and build relationships with the right customers.

CITI has launched various credit cards to cater to the needs of the various classes of customers, for eg CITI reward credit card for the students, the citi business world master card for businessmen and women to purchase and get attractive deals on flight bookings other business dining privileges

Part 2

The CITI group for its credit card division segmented its customers into 4 segments.
Segmentation basis classes of customers
1. Platinum Customers - these customers are the most paying customers for the business and hence they are the top priority for the bank
2. Gold Customer - These are the customers who are slightly less profitable than the platinum customers but still are a profitable proposition for the bank
3. Iron Customers - These are the customers which are least or very less profitable for the bank however these customers are required to maintain the banks' market share and to maintain the cost per customer at sustainable levels. the bank aims to convert such iron customers int gold or platinum with their strategy.
4. Lead customers - these are the customer which have been attached to the credit card operations of the bank however they are loss-making and the bank aims to cut away from such segment of the customers in order to maintain profitability.

Segmentation by types of card
1.Business cards - these cards are made for the business individuals, provides a discount on flight booking and dining options
2. Student card - these cards are made for students and provide attractive discounts on gas, book purchase etc

Part 1

The chosen credit card is CITI credit card. The choice of CITI credit cars=d is made due to CITI being the market leader in the credit card operations sphere and due to CITI coming up with various credit card programs to foster and build relationships with the right customers.

CITI has launched various credit cards to cater to the needs of the various classes of customers, for eg CITI reward credit card for the students, the citi business world master card for businessmen and women to purchase and get attractive deals on flight bookings other business dining privileges

Part 2

The CITI group for its credit card division segmented its customers into 4 segments.
Segmentation basis classes of customers
1. Platinum Customers - these customers are the most paying customers for the business and hence they are the top priority for the bank
2. Gold Customer - These are the customers which are slightly less profitable than the platinum customers but still are a profitable proposition for the bank
3. Iron Customers - These are the customers which are least or very less profitable for the bank however these customers are required to maintain the banks' market share and to maintain the cost per customer at sustainable levels. the bank aims to convert such iron customers int gold or platinum with their strategy.
4. Lead customers - these are the customer which have been attached to the credit card operations of the bank however they are loss-making and the bank aims to cut away from such segment of the customers in order to maintain profitability.

Segmentation by types of card
1.Business cards - these cards are made for the business individuals, provides a discount on flight booking and dining options
2. Student card - these cards are made for students and provide attractive discounts on gas , book purchase etc
3. Traveler cards - These card are for traveler providing forex services to the travelers

The best segmentation of the card is on the basis of the customer since this is the most meaningful level to evaluate a card

Part 3
New Card - Platinum Traveller credit card for business

The card target the most profitable platinum and gold customers, it provides both forex, travel tickets and dining options to business travelers along with lounge access to various airports

The card differs from other cards in a way that it will lead to combining of all the required schemes of various cards into one single card.

- These cards are for traveler providing forex services to the travelers

The best segmentation of the card is on the basis of the customer since this is the most meaningful level to evaluate a card

Part 3
New Card - Platinum Traveller credit card for business

The card target the most profitable platinum and gold customers, it provides both forex, travel tickets and dining options to business travelers along with lounge access to various airports

The card differs from other cards in a way that it will lead to combining all the required schemes of various cards into one single card.