Porsche MasterCard To Get Upscale Hooks

It isn't really odd that Porsche would join car marketers such as General Motors in issuing a co-branded credit card. What was surprising to some attendees of the American Banking Association's BankCard show in Philadelphia is that the German performance carmaker's forthcoming card from First USA will be issued as a MasterCard, not the traditionally more upscale Visa. Industry sources said the exact value proposition has not been finalized, but will not include a cash rebate on the purchase of a car, as with GM's MasterCard, but rewards in the form of Porsche-emblazoned accessories and services bundled with MasterCard's recently launched World Card, an upscale product that offers concierge service and no pre-set spending limit. A similar co-branded card program in Germany offers free parking at some airports, plus a free car wash while the auto is parked. The card is expected to be launched early next year.

Share and perception measures are at historic highs, says Visa USA president Carl Pascarella. So what's on the marketing agenda? Like everyone else, Visa is trying to figure out its Internet role.

"After three decades of building, we have a pretty powerful brand," he said. "But the Internet presents a whole new set of problems as far as branding, and the first payment brand that gets it right stands a chance of being the default payment system on the Web. So we haven't really come up with an answer yet, but we do know its importance."

Government payment and discount houses are other areas Visa and its issuers are targeting for growth. What needs to shrink, though, is the industry's direct-mail solicitations, up to a mailbox-busting 3 billion pieces in the U.S. last year. Declining response rates "tell us we have to work on two things: the delivery channel itself and the actual value propositions," Pascarella said. Airline cards (among the few hank cards that still get away with charging annual fees) remain popular for their simple, yet meaningful, marketing.

Dean Witter is trying to better exploit its ubiquitous but underused Discover card by abandoning celebrity-oriented ads for a new campaign using "real" people who feel real good after purchasing with Discover--say, a big-screen TV buyer who ascends to heaven. "We hope people can relate to this more, and this still gets our cash-back message across," said marketing svp Lisa Lampert. The "back to basics" strategy downplays Novus, a more diverse portfolio of product offerings aimed at countering the incursion of co-branded cards, and augments "It pays to Discover" with "Discover the Feeling."

Long-time agency DDB Needham, N.Y., handled, but show attendees wondered for how much longer, with a new top team now running operations and marketing there.

COPYRIGHT 1998 BPI Communications, Inc.
COPYRIGHT 2000 Gale Group