Mastercard

Marketing Management – DSM 201
Marketing Transformation at Mastercard
• This entire case deals with Mastercard trying to penetrate market by global credit card market in 2014, compared to Visa’s 45.6% (40.96
different kinds of medium, so that they can improve their reach & be a billion) share.
trusted firm both by banks & merchants. • Mastercard were responsible for providing cards & transaction services
• The timeline the case ran between 2013-17. for its partnered banks
• M.V. Rajamannar (Raja), Chief Marketing Officer (CMO) of Mastercard • The marketing department excelled at creating high-quality, engaging
joined the firm in 2013 & he is the one who planned & implemented a advertising.
plan named Marketing Plan. • The Priceless ad campaign, which was introduced in 1997 and featured
• The global marketing budget had declined from 10% of revenue in 2013 vignettes of human interaction that concluded with the lines,
to 7.5% of revenue in 2016, even though the company had experienced • “There are some things in life money can’t buy. For everything else,
30% growth during that period. there’s Mastercard.”
• Mastercard CEO Ajay Banga, he was ready to invest more into • Raja had an understanding Marketing primarily focused on branding,
Marketing,he wanted to focus on driving the business rather than but nobody quite understood if and how it drove business.
focusing on brand metrices. • He wanted to improve marketing mission so that they can get into
• Raja had envisioned transforming marketing at Mastercard from a people’s mind & start trusting it & give a boost
purely branding, advertising, and sponsorships platform into a more • Marketing 1.0 - the superior nature of your product.
comprehensive function for serving Mastercard’s commercial • Marketing 2.0 was about emotions, as their initial Priceless advertising
objectives. did.
• York, Mastercard operated a worldwide payments system that • Marketing 3.0 was data-driven: we used data and algorithms to target
processed transactions in 210 countries and 150 currencies. consumers with precision, relevance, and timeliness.
• In 2016 the firm earned $4.1 Billion as profit on $10.8 billion of their • Marketing 4.0 we are entering a new era of connected consumers that
investment, from more than 1.6 billion debit & credit cards. has been brought by the digital revolution and the social media tsunami.
• The 2016 Nilson Report named Mastercard the world’s second largest
payments network, with a 29.9% (27 billion) share of the $90 billion
Prepared by Katuri Sriram – Msdsm Batch 1
Marketing Management – DSM 201
Marketing Transformation at Mastercard
• Creating Priceless Possibilities: • 4. Media— which vehicles will be used to convey the message?
1. Priceless Cities • 5. Money - how much will be spent in the effort?
2. Priceless Surprises • 6. Measurement - how will impact be assessed after the
3. Priceless Causes campaign?
4. Priceless Specials CONCLUSION
5. Priceless in Action • Going through all the exhibits here are some conclusions we
• Mastercard’s Singapore team illustrated the seven-step digital can derived into
engine with a Priceless Special in which it partnered with actor • Bringing actor Hugh Jackman as a face to its business has given
Hugh Jackman to target Asia-Pacific consumers a boost in their usage transactions in Singapore, we cannot
1. Emotional spark conclude that it will be giving high profit or margins but there is
2. Engagement. a sudden jump.
3. Right merchant, right offer. • Even though they must pay a huge amount for a contract for 2
4. Optimizing offers. years but Mastercard can make profit during & after the bond
5. Amplification. as they are successful getting public used to it. It’s worth
6. Network effect. investing
7. Incremental transactions. • Banks and merchants continued to spend a large portion of
• Priceless Cities: Boston their marketing budget on traditional promotions, such as
• Priceless Causes: Stand Up To Cancer discounts or airlines miles, to attract consumers— yes, he can
• Formulating the Integrated Marketing Communications (IMC) make his point strong to invest in priceless as from the exhibit 7
Program there is data that there has been growth in various segments in
• The “Note on Marketing Strategy” set out the 6M’s model for which they are operating
communications planning, i.e., • Through this priceless platform he can implement & market so
• 1. Market - to whom is the communication to be addressed? many things like promotions, discounts, coupons, its going to
• 2. Mission - what is the objective of the communication? be a set a new trend in the market & will attract more
• 3. Message - what are the specific points to be communicated? customers to it.
Prepared by Katuri Sriram – Msdsm Batch 1

Mastercard

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Marketing Management – DSM 201

Marketing Transformation at Mastercard

Prepared by Katuri Sriram – Msdsm Batch 1

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