CHASE SAPPHIRE:CREATING A

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MILLENNIAL CULT BRAND

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Section A

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Ankita Misra (18PGDM004)

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Chandan Kumar (18PGDM015)
co rc Niharika Gupta (18PGDM026)
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Rishabh Semwal (18PGDM036)
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Somya Mittal (18PGDM048)

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 introduction

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• the J.P. Morgan, Chase Sapphire Reserve was introduced in August 2016.

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• Card awards three points per dollar spent on travel and at restaurants. All other purchases

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will get you one point per dollar.

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• Chase considers flights, cruise lines, hotels, car rentals, trains and taxis to be part of
‘travel’.

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• Restaurants include anything from fast food to fine dining, cafes, and pizzerias.

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• All of the points you earn are worth $0.015 when redeemed for travel through the ultimate

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rewards website.
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• The Chase Sapphire Reserve charges $450 per year, compared to the $595 on the J.P.
Morgan Reserve Card.
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 The U.S. Consumer Credit Card Market
➢ The industry experienced 1.1% annual revenue Market Share of
Companies
growth between 2011-2016

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➢ And expected to grow 4.5% annually between

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2016-2021
➢ Industry profit margins had dropped from 31% inn

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2011 to 25% in 2016 due to lower interest rates,
increased competition, greater regulation, and

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security/technology costs.

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➢ Costs to acquire a new cardholder ranged from

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➢ American consumers held 636 million credit cards
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and 38% of households carried credit card

revolving debt
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 Market Segmentation

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DEMOGRAPHIC BEHAVIORAL PSYCHOGRAPHIC

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Age group- young adults Annual Fee-$25-$550 Prosperous and Content-Strong

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(18-26yrs) credit Ratings

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Rewards-Cash Back on
Assets/Credits- Wealthy Purchases Deal chasers-Amortize cost through

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Affluent
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Proprietary Rewards on Purchases rewards
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Emerging Cobranded Rewards on Purchases Financially Stressed- Card Debt
Interest Rates or APR Recovering Credit Users- Wary
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Credit Lines users

Credit Worthiness Self Aware Avoiders-Credit Cards
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Risky
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 Product design strategy

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• Reflects the brands DNA – Strong rewards, premium travel redemptions and customer

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service.

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• Successful customer expectation – flexible product that allowed them to set their own rules
and that provided convenience , relevance and choice.

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• New approach for marketing and communication- ditched the traditional way of marketing

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and adopted new ideas such as approaching celebrities and using social media as a medium.
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 SWOT ANALYSIS
STRENGTHS: OPPORTUNITIES:

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•Chase sapphire Reserve reached its 1yr goal in •Target AFF/HNW Customers
2weeks •Creating a millennial cult brand

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•Ranked #1 or #2 credit card •Expanding market

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•Highest rated mobile banking app

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•Largest ATM network
•Customer service

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WEAKNESS: THREATS:
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No weakness. As it is new in market and doing really •AMEX Plantinum Card
well. • Citi Prestige credit cards
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 J P MORGAN CHASE

JP MORGAN Banking

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CHASE SAPPHIRE Travel and
Dining

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Small Business

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CHASE INK
Owners

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Cash backs co rc
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CHASE FREEDOM
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CHASE SLATE
Financials
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 QUESTIONS:
• Assessment of the Chase Sapphire Reserve Card? Is it a good product for JP Morgan Chase? For

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the Sapphire brand? Why or why not?

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• Why has Chase been so successful in acquiring new customers? Do you think this success will

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continue over time? What changes would you make to their customer acquisition strategy over

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time?

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• If you are a competing credit card company, how would you respond to the Chase Sapphire

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Reserve card? How should Chase be prepared for the competition?

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• How successful do you feel Chase will be at retaining customers in their second year of the
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Sapphire Reserve card? Should they make any changes to their offering or strategy to improve
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customer retention?
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Thank You

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