Sony Card Due, via Visa And Citibank - credit card

Brandweek, Sept 7, 1998 by Terry Lefton

Sony is close to launching a co-branded credit card that would combine its powerful brand with the muscle of Visa the biggest credit-card brand, and Citibank, the largest credit-card issuer. The move comes after a slowdown in the once-dynamic co-branding market as delinquencies and profit pressures have forced many big programs to reformulate their value-added offers, as General Motors has, or to sell their entire portfolio, as AT&T did with its once-pioneering Universal Card.

Ads and direct mail for the no-fee Sony Card, expected to hit in mid-month, are being handled by Young & Rubicam, N.Y. Y&R handles most of Citibank's ads picked up global branding assignments for Sony earlier this year, and is vying for Sony's $40 million domestic ad account. Possible tagline: "The only card that works as hard as you play."

There was no word yet on the precise value-added offer Sony and Citi will use, but the points/reward system is expected to encompass all things Sony, including music, movies, video game hardware and software, and other consumer electronics items.

In as price-sensitive a category as consumer electronics, any incremental loyalty affinity would be welcome. "Retailers like Circuit City in that category have become as important, if not more, so I would think any kind of customer loyalty device would be a help [to Sony]," said long-time credit-card marketer Bill Keenan, who now runs consultancy The Convergence Group, Hockessin, Del. As for Citibank and Visa, Sony could help with some retail connections, he said.