The document proposes launching the Capital One Platinum MasterCard credit card exclusively for Costco members. It would provide cashback rewards of 3% for restaurants, 2% for gas, and 1% for other purchases with no annual fee. The target market is Costco shoppers who spend regularly on fuel, restaurants, and purchases. The objectives are to capture 20-25% market share among Costco members, increase MasterCard usage at Costco to 60% by 2020, and achieve a 2.5% return for investors by offering competitive rewards and good customer service.

1. Capital One Platinum MasterCard
“It’s the Only card you'll need”
Project Proposal

2. Project Group
 Loy Simpson Aranha
 Introduction of the product
 Positioning
 Target Market
 Manisha Rattan
 Price
 Place
 Promotion
 Vinshu Makkar
 Budget
 Objectives
 Summary

3. Agenda
 Product Snapshot
 Why Capital One MasterCard?
 Target Demographics
 Financial Highlights
 Income Sources
 Objectives
 Summary

4. • Cash back credit card that's exclusively for Costco members.
• Doubles as your Costco membership card.
• Pay no annual fee
• No limit on how much you can earn.
• Get access to a higher credit line after making your first 5
monthly payments on time
Product Snapshot

6. Why Capital One MasterCard?
• Accepted at 35.9 million locations, including 2.1 million
ATM’s worldwide
• Zero liability protection
• 3% on restaurants, 2% on gas, 1% on everything else.
• Additional perks such as free authorized users, automotive
features, travel benefits, and a lot more.

8. Who Is This Card for: Target
Demographics
• People with Average Credit.
• Costco members who eat at restaurants regularly
• Significant amount each month on fuel.
• Frequent purchases and want to earn cash back.

9. The major reason to choose an AMEX card was their long-time
with Costco.
Assure existing and new customers the opportunity to earn rewards despite
the split.
The old card had an annual $4,000 limit in purchases
The best part, of course, is that the transition has no effect on your credit
score.
How Does This Card Compare to the
Old Costco Partner AMEX?

13. FINANCIAL HIGHLIGHTS
Capital Budgeting for Platinum Credit Card
 Approximately $5 million would be the amount that we need to spend to capture the Costco
member
 Annual spending on fixed costs will remain constant
 Expenses of variable nature would fluctuate as per the budget in upcoming years
Promotional Expenses
Brand Retention
Customer Maintenance

14. 274.6
411.9
686.5
312.2
468.3
780.5
355.908
533.862
889.77
0
100
200
300
400
500
600
700
800
900
1000
Brand Retention Customer Maintainence Promotion
Yearly Spending(in millions)
Expenses 2013
Expenses 2014
Projected Expenses 2015

15. Income Sources
Fees charged
from
merchant
Cash
Advance fees
Interest
payments

16. Objectives of Launching Platinum Credit Card
 Opportunity to Capture 20-25% of market share by attracting Costco
members.
 Long term earnings from Interest payments.
 To increase the use of Capital one MasterCard to make it a preferred mode
of payment i.e. 60% or more in all Costco Stores by 2020.
 To provide the best and fast Customer service in resolving their disputes
by having a separate department in our existing Call Centre exclusively for
Costco Members.
 Product awareness by promotional strategies to increase the overall
MasterCard usage by 25%.

17. Objectives of Launching Platinum Credit
Card
 To achieve the target of 2.5 percent of returns for Investors by 2020.
 Collect customer information which will help in running Referral programs
every year.
 Brand Popularity
 Tie up with At least 3 retail stores by 2018

18. Summary
 About our product
 Why we are launching this product?
 Whom are we targeting?
 Marketing Mix
 Our objective