On Which Customer Segments Should Capital one Focus?

On which customer segments should Capital One focus?

Both old and new customers. Offer better rates and rewards and services to the customers of other banks (The card can let customers of other companies transfer what they owed on higher-interest cards to a card with a lower introductory rate.) and also focus on new customers, telling them advantages of using credit cards (rewards and miles) and informing them about their low interest rates, no interest or penalities for paying on time, and fraud protection (because that is what usually a new customer is worried about), kind of educating them on using the credit card smartly and wisely. Please see attached document.

What value proposition should Capital One be signaling to these segments?

For a company to be successful, its value proposition should be its commitment to deliver a specific combination of resulting experiences, at a particular price, to a group of target customers, more profitably and better than the competition. It is critical to define and support the value proposition in such a way that the customers will pay more for your product than the competition's, or that substantially more customers will desire your product over the competition's.

Capital one's value proposition should be:

1) COme up with different types of credit cards to suit the needs of different consumers.

2)Offer competitive interest rates and rewards

3) Round the clock faster and reliable online customer service

4)$0 Fraud Liability.

5)flexible payment options

6) different cards for different income levels with interest corosponding rates.

What advertisements should be used to deliver these messages, and what customization efforts were needed?

Canadian ads should focus on couple of points:

Other banks and bankers are out to get your money

Saving money is not always the best option, spending it intelligently is.

As with their US ads, they should continue to make their ads funny and should continue to use "whats in your wallet" and "great value without the hassle" since they are already so famous in US and people in Canada have heard about them too.

In general, customers are attracted to credit card issuers largely on the basis of price, credit limit and other product features and customer loyalty is often limited. SO CO should try to show these aspects in their ads and should also show that CO like others is not trying to cheat them, or trying

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