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Mastercard Case Study

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MasterCard- Case Study
Background Summary In May 1998, Meltem Tekeli, MasterCard’s Vice President for Global Promotions and Sponsorships, had already begun discussions with senior MasterCard staff on the renewal of MasterCard’s 1999-2002 World Cup and World Championship Soccer (WCS) sponsorship. When the results of the 1995-1998 WCS Sponsorship came in, it was clear that they had far exceeded those achieved in the previous rounds of their sponsorship of soccer. As one of twelve worldwide sponsors, MasterCard executives knew that their global payments franchise sponsorship of this event was a resounding success. With a cumulative audience of approximately 37 billion in 200 countries and territories watching the matches of the World Cup …show more content…

Strengths One of MasterCard’s major strengths was the success they gained from their sponsorship of the 1998 World Cup. By 1998, MasterCard had 364.6 million cards in circulation worldwide, a gross dollar volume of $651.6 billion dollars, and was accepted in 220 countries and territories. In the late 1990’s, MasterCard successfully released a new campaign, “Priceless”, with the slogan “there are some things in life that money can’t buy, for everything else, there’s MasterCard”. This campaign received outstanding results in 26 countries. In 1999, MasterCard decided to realign their marketing strategy because of the changing market. They decided to put their logo on the back of cards to attract major member banks. Within the industry, this was seen as a bold move. Citibank, which partnered with Visa, moved all of its credit card business to MasterCard because of the realignment strategy, which Visa refused to follow. MasterCard gained $100 million in dues from Citibank. MasterCard also worked with government authorities to track and decrease credit card fraud, which is a major strength for them. MasterCard teamed up with soccer legend, Pele, and made him their World Cup spokesperson. A major benefit for having Pele is the association consumers have between MasterCard and Pele every time they see his ad. Pele made 120 appearances in three years, and MasterCard received 1 billion media impressions worldwide.

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