However, Visa is facing increasing competition from MasterCard and specialist issuers. And the consensus among financial services marketers is that the brand is looking tired. Last year, according to industry body APACS (Association for Payment Clearing Services), the number of Visa cards issued in the UK increased by 4.8%, well below MasterCard's growth of 33.7%.
A major contributor to Visa's volume share is Barclaycard, the UK issuer with the most cards, which it supplies. But while Barclays' marketing budget is largely invested in its own brand, MasterCard partners such as HSBC invest heavily in MasterCard's consumer marketing, which is becoming more important. As one card marketer says: 'It is key that consumers are comfortable when they see the Visa or MasterCard brand when making purchases, especially abroad or online.'
Mastercard has ploughed millions into brand advertising and sponsorship.
Its association with Euro 2004 was led by a TV ad campaign starring former England footballer Bobby Charlton. Visa was an Olympics 2004 sponsor, but received little exposure at the event and did not support its sponsorship with TV advertising.
Visa is working to revitalise its brand. In July it hired PR agency Bite to create a 'brand workbook' for consistent messages across Europe. A month earlier it briefed Saatchi & Saatchi to develop a 拢10m UK relaunch campaign to break later this year.
We asked Mike Phillipson, former marketing director of credit card brand Smile and founder of integrated agency PWLC, and Paul Gordon, deputy managing director of financial specialist CCHM Ping, how Visa can re-engage consumers.
DIAGNOSIS 1 - MIKE PHILLIPSON FOUNDER, PWLC
For about five years in the early 90s, with the help of Saatchi & Saatchi, the Visa brand strutted around with an air of confidence. Then a few odd campaigns with Mel Smith followed, and things started to go downhill.
Now the brand seems to be wobbling. I would say the wobble is more akin to drinking a bottle of wine very quickly, than downing a bottle of whisky in one, but there are problems. With only a little print communication and sponsorship here and there, the financially savvy consumer is increasingly unsure what Visa stands for.
Consumer feedback suggests that people think Visa is big and safe, but this is no longer driving the time-starved public. Consumers would rather hear the suggestion that a payment solution provider gives you a more meaningful life. MasterCard has approached its marketing from this angle and segmented its audience sufficiently accurately. The result is that it is catching up with the Visa brand, which seems to have lost any engaging, emotional discriminating attitude.
REMEDY
- Consumers have moved on, so think about redefining the brand essence.
- Create a campaign that emotionally and rationally distinguishes Visa from MasterCard.
- Create a brand icon that can help signpost customers to your brand and your benefits.
- Behave more like an international brand without becoming bland.
- Communicate in the language of the new consumer. Break some rules.
DIAGNOSIS 2 - PAUL GORDON, DEPUTY MANAGING DIRECTOR, CCHM PING
In days gone by, Visa was always the stronger brand and the bigger player. It was the category generic. These days, the brand still carries a degree of certainty and reassurance, but feels like it's stuck in a time warp. I'm told Visa sponsored the Olympics and Rugby World Cup, but as a consumer, I can't say I noticed.
Conversely, MasterCard feels contemporary and relevant. Its sponsorships are highly visible and its ads are distinctive. The 'For everything else in life there's MasterCard' line is an insightful, sustainable property, and it has created a very strong consumer brand in what seems like just a few years.
Gaining distribution is the challenge for these brands, and once they have it, they rely on the card issuer to generate consumer demand. With 43m Visas in circulation, you are looking at huge revenues, so rumours of its demise are somewhat premature.
Unlike Visa, MasterCard recognises that some issuers give consumers a choice of card type. And these days, many would choose the brand with which they have the strongest affinity.
REMEDY
- Reclaim brand leadership. Visa can do this by making an ongoing investment in building a consumer brand that it as appealing as, but different from, MasterCard, and equally big and impressive.
- Update the stripy logo and brand identity. It is looking a bit tired and an overhaul would send out a strong signal of change.
- Don't change the name. There is nothing intrinsically wrong with it.