Richard Fairbank: Capital One Advertising Strategy For Canada

The founder of the company, Richard Fairbank ,believed that technology and information can be powerful together to deliver superior financial services. The company had success in early years with their information technologies. Capital One’s main focus was issuing credit cards. They entered the Canadian market and they achieved huge success because of availability of credits and low interest rates. Customers divided to three different segments base on their default risks. They were Sub-Prime, Prime and Super Prime.Super prime customers has low risk default and Sub-prime customers has higher risk default. That’s why , Canadian retail banks offers credit cards only to higher risk default customers which are Prime and Super Prime. In each segment, customers divided to two groups. These are transactors and revolvers. Transactors try to avoid any interest charges and they pay their credit balance on time. On the other hand, …show more content…
They aimed to increase the awareness and change the customers perceptions towards their financial services. But he faced with some problems while making this new advertising campaign. He should define the advertising strategy to successfully deliver the main message and he should decide the customer segment that the campaign will focus on. Capital One should not use the same advertisement strategy for each country. Because different markets needs different strategies. So, they should customize a unique advertisement for Canada. An effective advertising strategy can be seen on television and this may be much more successful rather than direct mailing. Also , they should focus on prime and super prime customers because they had been targeted by retailer banks. Lastly, Capital One may use reward programs; customer’s switch their primary cards because of the reward programs offered by credit cards. So, using these programs can work for the