This article about the card ran in today's New York Times
A Credit Card Marketing Deal
By STUART ELLIOTT
REMEMBER the commercials decades ago from Contadina that asked, "Who put eight great tomatoes in that little bitty can?" Now, the Bank One Corporation, the Walt Disney Company and Visa International plan to spend an estimated $125 million to $150 million to determine whether consumers will accept three big-brand logos on one little bitty credit card.
The card, called the Disney Visa Credit Card from Bank One, enables holders to rack up points redeemable for Disney Dream Reward Dollars. But the three companies, which will formally announce their partnership today, are entering a crowded field of co-branded credit cards that already includes a directly competitive card from J. P. Morgan Chase, MasterCard International and the Vivendi Universal Entertainment division of Vivendi Universal.
For Disney, the entertainment giant that has struggled in recent years, the card is another tool to try to forge closer ties with its current customers. And such efforts known as customer relationship marketing or loyalty marketing are a crucial component of campaigns by advertisers during tough economic times. Marketing research shows it is generally more expensive to attract a new customer than to persuade a reliable customer to buy another stuffed animal, visit another resort or see another movie.
"We've never had such a credit card before," said Peter E. Murphy, senior executive vice president and chief strategic officer at Disney in Burbank, Calif. "It's part of the increasing levels of sophistication in our customer relationship marketing efforts.
"Disney is the magic, the pixie dust," he added, "that provides the customer relationship and the rewards."
The multimedia advertising, marketing and promotional campaign for the Disney Visa card is being handled by agencies including Leo Burnett Worldwide in Chicago, part of the Publicis Groupe; the Gardner-Nelson Project in New York; and Ketchum, part of the Omnicom Group. The campaign, to run for the next two to three years, will test the power of what Madison Avenue calls co-branding, which unites two or more marketers in peddling one product. Examples include the Eddie Bauer version of the Ford Explorer, Hidden Valley Ranch flavor Wavy Lay's potato chips and Betty Crocker SuperMoist German Chocolate Cake Mix with Hershey's chocolate as an ingredient.
But if one plus one equals three, according to the legions of supporters of synergistic pitching as a marketing tool, what does one plus one plus one equal other than too much information to absorb from a 30-second commercial, a print ad or a brochure?
"Disney, Visa and Bank One all on one card?" Alan M. Siegel, chairman and chief executive at Siegelgale, a corporate identity consultant in New York, asked rhetorically. "That's a bit much.
"It will probably work," he added, "but it's just a little crazy with all those brands on a teeny card."
Needless to say, Tom O'Donnell, senior vice president for relationship marketing at the Bank One Card Services division in Wilmington, Del., which offers more than 1,200 co-branded or other affinity cards, disputes that assessment.
"Co-branding, bringing brands together to work for customers, is our lead strategy for credit cards," Mr. O'Donnell said. "The three brands will fit together perfectly.
"With Disney, we have an opportunity to push into a new dimension, offering travel awards, cash awards to families," he added. Bank One has co-branded cards with marketers like
Amazon.com, Marriott International and the United Airlines division of the UAL Corporation. Another triple-branded card, combining Bank One, Visa and Starbucks, is being introduced in the fall.
"The notion of a co-branded credit card is not new," said Steve Gardner, co-founder of the Gardner-Nelson Project, the Bank One agency that created the TV and radio commercials to introduce the card, which will start Monday.
"Consumers are familiar with the concept," he added. "We'll just try to keep each role clear."
The initial television spot shows children uncharacteristically encouraging their parents to buy broccoli and gasoline and even to get them haircuts. The goal, of course, is for the adults to charge those purchases with the Disney Visa card. The commercial ends with a girl who asked for broccoli, confiding to Mickey Mouse at a Disney resort, "You don't want to know what I had to do to get here."
For Disney, the reaction to the card, which replaces previous relationship-marketing programs like the Magic Kingdom Club, is crucial. The company is eager to reinforce ties with its best customers at a time when it faces numerous business challenges. A soft economy, the increase in gasoline prices and the uncertainty about war in the Middle East could lead millions of tourists to postpone or cancel vacation trips to
Disneyland or Walt Disney World or aboard
Disney cruise ships.
"This allows us to give more to our best guests," Mr. Murphy said, using the Disney jargon for customers. The card, he said, provides them "with special offers, no annual fee and no blackout dates on redeeming rewards."
And it enables Disney to keep up with its rival Vivendi Universal, which is spending an estimated $100 million to $125 million, according to the trade publication Advertising Age, on its multiyear marketing deal with J. P. Morgan Chase and MasterCard. The licensing fee being paid by MasterCard to Vivendi Universal was estimated at $10 million; the fee being paid by Visa to Disney may be twice that.
Mr. Siegel, the identity consultant, said that while the card "is a way for Disney to generate sales volume," it also offers Bank One and Visa "some positive rub-off" from the Disney image. Indeed, Mr. O'Donnell at Bank One Card Services said his company expected the Disney Visa card to be "our fastest-growing program ever," with 100,000 consumers already preregistered for cards.
Disney's skill in generating hoopla should quickly add to that number. Among today's bicoastal series of events to introduce the card is a scheduled appearance at the New York Stock Exchange by Mickey Mouse, joining Michael D. Eisner, chairman and chief executive at Disney, and Jamie Dimon, chairman and chief executive at Bank One, to ring the bell that opens trading.