MasterCard - Serious rebranding a must for MasterCard

While Visa has been making a big splash with the launch of its new 'mini' card and American Express has been offering triple reward points to cardholders with a huge campaign, MasterCard has been virtually invisible amid this flurry of above-the-line marketing activity by its rivals.

MasterCard has been using radio and print ads to promote the ongoing '5D' promotion, through which cardholders can win S$10,000 (US$5,700) in prize money every week by matching special numbers on their monthly account statements with the 'winning' numbers.

The campaign is now towards the end of its 12-week run, but despite MasterCard's efforts, excitement levels have been muted.

When MasterCard ran its 'Priceless' campaign in 2000, it was a moment of brilliance, fuelling hopes that it would finally emerge from the shadow of Visa - particularly when spoofs of the campaign concept began circulating via email all over the world.

Through the campaign, MasterCard had positioned itself as an "everyday" card, as efficient and simple as paying for goods and services with cash.

But that space is already occupied by Visa, which has the highest number of members, chalking up the highest share of billings - 59 per cent share of card billings in Asia-Pacific.

As Visa launches its mini card in Singapore with United Overseas Bank, MasterCard claims that its version of mini cards was announced even earlier than Visa's - but it hasn't quite got its act together to get a bank to issue it yet.

And while Visa sponsors the Great Singapore Sale, MasterCard has picked up support for the less well-known Malaysian Mega Sale to drum up billings.

Visa's shadow is long, enhanced by its history of tying in member banks with exclusion clauses to the loud protest of American Express and other cards.

While MasterCard has benefited from being Visa's partner in forming alliances with banks, it is also trapped within Visa's shadow.

Try as it may, it has yet to emerge from it.

ADSPEND COMPARISON OF VISA, MASTERCARD AND AMERICAN EXPRESS
All Media - National Summary States: All Period: January to December of
2000, 2001, 2002
Media included: TV, Newspaper, Periodica, Radio, Cinema, R'Fusion,
Bus/Taxis, Posters Description
Total Media Sdollars                  2000           2001           2002
Visa                            16,201,442     13,566,759     14,475,767
Mastercard                      14,985,151     11,951,224     10,687,618
Amex                            10,467,404      3,758,663      6,499,834
Report Total                    41,653,997     29,276,645     31,663,220
Source: Nielsen Media Research.

In terms of share, the number of people using credit/charge cards in Singapore has remained stable in 2003 with a penetration of 47%.

Visa has the majoriry share.

VITAL SIGNS
                                           April-June 2003     % change
Gross dollar volume                  US$51.3 billion        -9.1%
Number of cards issued (Jan-June 2003)        116.4 million        +7.4%
Source: Mastercard International.

DIAGNOSIS - Francois de Riviere Partner/head of strategic planning Euro RSCG Singapore

If my numbers are right, Visa is the logo appearing on 80 per cent of Singapore's credit cards. But does it create any feeling of pride, does it come with emotional or functional attributes that make me prefer Visa over any other brand? Or is it simply the "default choice" I make because it doesn't matter?

If this is the case, MasterCard is in trouble. As a consumer, "I don't care" means I will not pay any attention, means that the brand propositions are so equivalent that there is no way I can differentiate them, and therefore prefer any of them.

I've already got airmiles from at least two airlines, I have enough petrol points to get myself a dozen coffee makers, I have access to a zillion mobile phone, cable TV, and supermarket perks. Is Amex offering me lobster? I'll wait for the next idiot to bring me a giant squid.

Credit card operators have lost the marketing game. Banks like Citibank have won it. I desire the Clear Card, and I don't give a @x!#* which credit card operator brings it to me. I want the coolness and the status attached to a Citibank card, and I don't care if it's a Visa, a MasterCard or whatever else. Credit card operators have become colourless and uninteresting.

And this could be MasterCard's unique opportunity, as Visa's situation is no better.

DIAGNOSIS - John Archer Regional creative director Bates/141 Indochina

There's no denying that MasterCard has bounded ahead with noticeable style in recent times to become something of a real player in the cash alternative stakes. Yet, the card still comes across as being in the "them" category, whereas Visa and Amex are comfortably for us.

Visa and Amex are clearly and uniquely positioned in the consumers' minds, but MasterCard has chosen to be "the everyday payment system". A viable alternative to cash and cash cards, which still account for 90 per cent of all transactions, is a shaky position to hold. In tough times, there's no substitute for cash.

Moreover, all credit/charge cards offer the option of a cash alternative.

The reality is that when you cloak yourself in the same mantle as a much used dollar bill, it might be time to carefully check for change.

Convenience aside, there is the unaddressed factor of prestige, which is inherent in every card purchase. Status is the foremost motivator in the Asian psyche. Visa and Amex know this and do it well.

Which brings us back to the priceless proposition. Can MasterCard afford to pun around or should they be taking a more considered look at money management?

TREATMENT

Riviere's prescription

- Make innovations and bring value to every single field, whether they be functional, emotional or social.

- Make MasterCard a lot more desirable than it is now. One of the ways to do that is to make it stand for something that consumers really covet.

- Brand it the same way that Intel has branded the most uninteresting, ugly, invisible piece of hardware in the world - the Pentium processor.

Archer's remedy

- Reposition the brand as one that offers a prestigious and respected payment vehicle. Forget levity when you're talking about my money.

- Tap the younger new money set. They're the ones who are going to get richer and richer. Leave businessmen and older punters to Visa and Amex.

- Concentrate on introducing and promoting programmes that are relevant and indicate an understanding of money matters.

- Take an honest look at the 'Priceless' campaign. At the very least, make it relevant to Asia.