The launch of the Chase Sapphire Reserve credit card was enthusiastically received by

Millennial consumers, a cohort that had previously eluded JPMorgan Chase and its competitors.
With the one year anniversary of the launch approaching, managers are focused on retaining
customers attracted by a one-time signup bonus of 100,000 reward points and on acquiring new
customers now that the bonus had been reduced to 50,000 points. So the company must ascertain
how many enthusiastic consumers and would remain to Chase Sapphire Reserve credit card,
renew their cards for another year, and pay an annual fee of $ 450. Because of the decrease in
bonus sign-on points from 100,000 points to 50,000 points, it will have an impact on the number
of new customers. They also refocusing on the remainder of the Chase Sapphire product porfolio
to assess differentiation among the products to ensure they did not cannibalize each other and to
identify other new products that could address the needs of customer segments to capitalize on
the momentum of the reserve launch.

Credit card business is currenty a promising business and on the other hand it is also
difficult to manage. More and more competitors are entering the credit card industry. They are
included in all segments, starting from the middle, affluent and HNWI segments. They are
included in various existing consumer segments, so competition is quite tight. Every player in
this industry must be able to provide an attractive and diverse product selection, but still in
accordance with each of the needs of the target segment. One problem that is present in this
research is how to create products that do not cannibalize each other. Firstly, firm had to
determine the specific markets each product fits into and analyze the potential market demand
for a proposed new product in terms of the potential net income the product represent. Next, firm
should identify the preferential features of each product with the goal pf identifying the features
that set your product apart from all others, including the firm’s own existing products. Firm need
to prioritize which markets are best-suited for the introduction of new products that ate
sufficiently differentiated from firm’s existing products so firm would decrease the possibility of
cannibalization. Lastly firm need to assess their competition and evaluate different marketing
strategies using the information obtained from the previous steps. The things mentioned above
can help companies to avoid cannibalization between the products they make.
Then to discuss in more detail about the product and the most appropriate positioning for
the consumer and the best value proposition that can be formed by the company, first the
company need to create a good positioning, there are 6 steps that a firm could do to create the
best positioning :
1. Determine firm’s current brand positioning
2. Determine firm’s competition from market research, customer feedback and social
media
3. Conduct competitor research
4. Identify what makes our brand unique
5. Create firm’s positioning statement
6. Does the positioning statement work?
The steps above are easy steps to determine the right positioning for each product made
by the company. Then for the company’s value proposition, the Chase Sapphire itself is able to
make a very good value proposition as stated, “for today’s savvy affluent consumer, Chase
Sapphire is the new, next generation rewards card that combines the premium service and travel
benefits high-end consumers expect with practical features, so that they can always get more of
what matters most “. Henceforth, company can continue to use the current strategy to create a
value proposition, only company need to differentiate the value proposition between one product
and another, so that there is no bias.
While the marketing team thinking about how to manage Chase Sapphire portfolio going
forward, there are several strong brand associations around Chase Sapphire – this includes
modern, more contemporary, understands me, understands the way I travel, and not my father’s
credit card – this associations was shining with wealthy consumers. By further understands the
consumers and creating a product that supports, Chase sapphire get consumers’ loyalty. Hence, it
is important to keep as the DNA that understanding what consumers really need is important,
while they still have to widening the gap between them and Reserve.