Citicorp, Visa Put Golden Bear on Platinum Card

Visa U.S.A. and Citicorp have forged marketing links with a golf legend.

Citibank announced Tuesday that it will issue a cobranded Jack Nicklaus platinum credit card. And Visa signed a five-year partnership deal with Mr. Nicklaus' marketing and licensing company, Golden Bear Golf Inc.

"In terms of where we are going in sports marketing, this will be a category killer," said Carl Pascarella, president of Visa U.S.A., whose other tie-ins include the Olympic Games, the National Football League, and thoroughbred racing's Triple Crown.

Indeed, athletics may be making up for cobranding setbacks in other areas. Citibank and Ford Motor Co. last week announced the phaseout of their card program, and others have been scaling back their benefits to consumers.

American Express Co., meanwhile, has hitched its marketing to rising golf star Tiger Woods. His corporate spokesman arrangement and identification with American Express appears more extensive than Mr. Nicklaus' with Citibank and Visa, said marketing consultant Richard G. Barlow.

But Mr. Nicklaus said, "This is not a traditional spokesman relationship. These deals are more far-reaching than anything I have ever done."

Some industry observers said there is magic in Mr. Nicklaus' name. He has won 81 tournaments since 1962.

"For baby boomers, Nicklaus is the hero in golf, so it should be a great endorsement," said Jeffrey Baxter, principal of S.J. Baxter & Associates, Forest Hill, Md.

Anita Boomstein, a credit card expert with the New York law firm Hughes, Hubbard & Reed, had a different slant: "A golf affinity program is kind of old hat." She pointed to the demise of the cobranded PGA Tour Partners MasterCard, which was discontinued by SunTrust Bankcard of Orlando after only six months.

Mr. Nicklaus said his "brand" on the platinum Visa card will symbolize benefits to golfers. Cardholders will get previews of new golf equipment, apparel, and accessories. For the first year, each card purchase will serve as an entry into a monthly "Nicklaus Sweepstakes."

Prizes include trips to golf resorts and an opportunity to play a round with Mr. Nicklaus, who is known as the "Golden Bear."

The no-annual-fee card caries an introductory interest rate of 6.9% for six months, then jumps to prime plus 8.65%

Cardholders can pay a $35 annual fee to participate in the Nicklaus Rewards program, earning a point for each dollar of purchases. Points are redeemable for various golf-related prizes.

Mr. Baxter said the card could be "a strong attraction to golf fans" if the rewards are sufficient to offset the fee.

"Platinum will help, especially for the age group that Citibank is going after," Mr. Baxter said. "They are a bit more upscale, and this is a product match for them."

Stanley Anderson, president of Anderson & Associates of Arvada, Colo., said the timing is right given the "resurgent interest in golf," he said.

But Mr. Barlow, president of Frequency Marketing Inc. in Milford, Ohio, doubted the cards would see much use.

"The upper-income, more mature consumer will use the card more as a convenience tool than a credit instrument, " he said. "Unless the rewards are compelling, consumers will not feel the need to consolidate all their purchases on this card."

Visa will have exclusive rights to market itself as the preferred card of Golden Bear Golf, the Nicklaus company in North Palm Beach, Fla., that sells apparel and merchandise and runs golf schools and clubs.

Visa will promote Golden Bear Golf Properties in television advertising and will sponsor two Jack Nicklaus-produced golf events.

On the American Express-Visa rivalry, Mr. Barlow said Tiger Woods is "very hot right now, and Nicklaus is a much cooler commodity."

"MasterCard has the PGA tour and American Express has Tiger Woods," Mr. Baxter said. "This looks like a defensive move by Visa to stake out some position within the golf community."

But Mr. Anderson called the Tiger Woods deal an expensive way to boost a brand. Because Mr. Woods has an exclusive contract with Nike, he cannot wear another company's logo.

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