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Barclaycard was the second largest credit card brand in the UK when the recession hit in 1991. But just three years later, it overtook the powerful Access credit card to become and remain the brand leader. By the end of the decade, the Access brand no longer existed.
Background
Credit card penetration growth had leveled off, and the introduction of debit cards and financial deregulation in the late 1980s had increased the number of competing cards.
Barclaycard was losing share of market turnover and share of new card holders. Their profits were thus cut in half in 1989, and the brand made a loss in 1990. The company decided that they needed to re-examine their product, positioning, and communication.
Changes
To start, the credit card was re-engineered. An annual fee of 8 pounds was introduced. To offset this cost, new cardholder benefits were established: Purchase Cover (100 day insurance on any item purchased with a Barclaycard) and International Rescue (assistance and advice when travelling abroad). These benefits had only been available before from exclusive, high-fee charge cards, such as American Express. This upgrade strategy was not matched by competing cards, who also added annual fees.
The product relaunch was not supported by any advertising at first. In May 1990, the company wrote to its customers with a brochure explaining the new package, accompanied by a telephone contact to answer any questions.
Advertising
Since 1981, Barclaycard ran advertising featuring Alan Whicker. Its new advertising, however, would use Rowan Atkinson as bungling secret agent Richard Latham, accompanied by his able assistant Bough.
According to AdMap, "although equipped by Q with a Barclaycard, Latham always dismisses its usefulness and so is repeatedly left without support or protection when things go inevitably go wrong." Three commercials were made in the first year which touted different benefits of the card. By the end of 1995, 14 TV ads had been made showcasing eight different product stories.
The media budget for 1991 was more than double that of the previous year. This was needed to establish the new creative idea quickly, to support three bursts at key periods of the year for credit card usage, and to promote the three new 60-second commercials. The first ad introduced the new campaign, while the other two highlighted the new product benefits. Access, meanwhile, cut their media spend in half. These changes in ad spend continued for the next five years.
Results
In a 1996 public poll, Barclaycard was voted the third best liked advertising campaign in the UK. Awareness had grown quickly and had soon replaced memories of Whicker. By the end of the first year, ad awareness more than tripled, while awareness of Access halved.
The ads communicated the new product messages successfully, which allowed Barclaycard to pull away from Access and towards Amex. Its share of cardholders grew and by 1993, it had overtaken Access as the brand leader.
Barclaycard's long-term decline in share of turnover was reversed. Econometric modelling showed that advertising was increasing total turnover per Barclaycard Visa card by around 3% each year.
In the meantime, Access added an annual fee, but did not improve their product. Its advertising was inconsistent, advertising investment remained low, and it continued to lose share of card holders and turnover. By 1996, the formerly largest credit card brand was no more, as it was sold to Mastercard, which axed the Access name.
Source: WARC, 01/2009
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