MARKETING

ASSIGNMENT 2

CRED, a Bangalore-based fintech startup founded by Kunal Shah, made a remarkable

entrance into the Indian market by focusing on a specific group of customers: people
who use credit cards and have good credit scores. The company gained widespread
attention for its unique value proposition and clever use of social media and
influencer marketing to build a strong brand and create a loyal customer base. Before
CRED’s emergence, the Indian credit card market was largely unexplored regarding
targeted services and brand recognition. Credit card users were often treated the same
by financial institutions, with limited offers and engagement opportunities. CRED
recognized an overlooked market of users with high credit scores and set out to
redefine their credit card experience.

CRED’s marketing strategy took an unconventional turn with its advertisement

featuring Rahul Dravid, a cricketing legend known for his calm and disciplined
image. The ad was quite different from usual celebrity endorsements, as it portrayed
Dravid in a humorous way. This unique approach captured attention and generated
significant social media buzz. CRED used the power of influencer marketing by
collaborating with popular social media personalities and celebrities. These
influencers promoted CRED’s services and engaged with their followers, sharing
personal experiences and creating a sense of trust and authenticity.

CRED introduced a gamified rewards program encouraging users to pay their credit
card bills on time. This unique approach made bill payments enjoyable and created a
sense of accomplishment, fostering customer loyalty. CRED used its app and social
media platforms to create an exclusive user community. Members enjoyed access to
curated experiences, offers, and privileges, making a sense of belonging and
exclusivity.

CRED’s innovative marketing strategies had several significant outcomes: influencer

collaborations significantly increased brand awareness and established trust among
potential users. The rewards program and community-building initiatives cultivated a
loyal customer base. Users were motivated to pay their credit card bills through the
app, driving user engagement and retention.

CRED’s success story highlights the power of innovative marketing in cutting out a
place in a competitive market. CRED disrupted the credit card industry and created a
strong brand with a loyal customer base. This case study underscores the importance
of creativity and authenticity in marketing and the potential of social media and
influencer marketing in building trust and customer loyalty.
REQUIRED:

1. Explain the role of innovative marketing in building customer loyalty. [3 Marks]

2. What role did influencer marketing play in building trust and credibility for CRED,
and how did it engage potential customers? [3 Marks]
3. What lessons can other startups and businesses draw from CRED’s marketing
strategies, particularly innovative branding and customer engagement? [3 marks]
4. Using examples from the case study outline three benefits of using IT in marketing.
[3 marks]
5.