Sapphire Brand Analysis Marketing Essay

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Week 5 discussion 2: Analysis of the Sapphire BrandThe Sapphire Reserve brand is a favorite among credit card holders, particularly younger customers. Card holders benefit from a range of travel credits, travel insurance protections, and exclusive access to airport lounges across the world, in addition to a number of statement credits. This text analyzes some crucial aspects of the Sapphire brand to determine how it relates to the product development and the diffusion process.Factors the Placed the Sapphire Brand in a Class of its OwnThe Sapphire Reserve brand took the industry by storm in the first month(s) of its release. Reports indicate that demand for the credit card was so high that the company ran out of both the metal card and the packaging used to ship it within a few days of the product’s launch (Pilcher, 2016). In less than a month, the company had depleted supplies and materials that had been projected to last two years, forcing the issuance of temporary plastic cards to thousands of customers (Pilcher, 2016). Despite its hefty annual fees amounting to $450, the Sapphire brand had several attributes that helped to offset the high annual fees and place it in a class of its own. These included a signup bonus of 100,000 points (worth around $1,500) that applied after the customer spent $4,000 in the first three months, triple points on dining and travel worldwide, access to more than 900 airport lounges across the world, and an easy-to-use $300 travel credit every year (Pilcher, 2016). The Sapphire points were also worth more when redeemed for travel than any other Chase credit card (Pilcher, 2016).The Sapphire credit card also stood out for its style. Product style has to do with the outer appearance or visuals of a product, which serve to create aesthetic value for customers (Kotler et al., 2019). The Sapphire card has a weighty metal core, unlike competing brands that are mostly made of plastic (Pilcher, 2016). The Sapphire cards are thus heavier, with sleek designs, designed to help users get noticed whenever they plunk their cards on the table to make payment (Pilcher, 2016).

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Industry Dynamics using the Introductory Phase that Increased the Product’s AttractivenessThe Sapphire brand was introduced just after the 2008 financial crisis, which had a significant effect on the credit card industry. Credit card issuers had accumulated million in losses amidst sharp increases in the number of people who could not pay their bills due to job losses and other financial hardships. To offset the losses, many credit card companies raised their interest rates, reduced some perks in the high-end cards, and increased their monthly payments even for customers who always paid their bills on time. In response to the crisis, Congress, in 2009-2010, passed the Dodd-Frank Wall Street Reform regulations with the aim of preventing a recurrence of the events leading to the 2008 financial crisis. The Sapphire brand was thus introduced at a time when customers in the industry were facing financial hardships due to the recession and needed a credit card issuer capable of offering more perks for less (premium strategy). The Sapphire brand appealed to credit card customers due to the value generated from its unmatched signup bonuses, annual travel credits, and triple points on dining and travel.Product and Service Extensions of the Sapphire Preferred Brand since the 2009 IntroductionThe Sapphire brand has made a series of product and service extensions from the Sapphire Preferred launched in 2009, as evidenced in the Sapphire Reserve launched in 2016. One of the significant extensions has been in the area of rewards, where the Sapphire Reserve allows customers to earn 3 point per dollar on dining and travel, up from 2 points per dollar in Sapphire Preferred. The brand has also increased its redemption bonus for points redeemed for travel – points in Reserve are worth 50 percent more when redeemed for travel or other eligible purchases, up from 25 percent in Preferred (Frankel, 2021). Another notable improvement on the Sapphire Preferred was the introduction of a $300 annual statement credit for reimbursement for travel purchases charged to a customer’s account each anniversary year (Frankel, 2021). There has also been an extension of priority pass….....

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