Diners Club Faces Hurdles Breaking Out Of T&E Niche With New Campaign

While Diners Club International last month launched a global branding campaign to promote everyday use of its card (see story), moving what traditionally has been a travel-and-entertainment product into mainstream markets may take some time, analysts say.

Diners Club and the Draftfcb Chicago agency created the campaign in response to requests from franchisees around the world for more utility from the card brand, according to Diners Club, which Discover Financial Services acquired nearly two years ago.

While those who travel for business are familiar with Diners Club, the general consumer market is not, observers say. “They’re trying to increase the brand equity in the consumer market, and it remains to be seen if consumers are interested” in the card, says Megan Bramlette, managing associate of Auriemma Consulting Group. “What the campaign is really doing is hammering home the international aspect of the card.”

The ads do a good job of meeting the goal of explaining the benefits of the card, “but the consumer appetite for that is always the big question,” she notes.

Diners Club was due for a “brand-relight,” says Ed Kountz, senior analyst, e-business and channel strategy, at Forrester Research Inc., noting the company has suffered in recent years from the sale of it assets. “Diners Club is now a niche brand, and it will take a concerted, consistent effort to expand market share significantly,” says Kountz.

Discover acquired Diners Club International Ltd. from Citigroup Inc. in April 2008 for $165 million.

The ad campaign, which launched late last year in such countries as Austria, Brazil, Japan and South Africa, is localized for each franchise market, Diners Club says.

The global campaign does not include North America because it is owned separately. Canada's BMO Financial Group announced its purchase of the Diners Club North America franchise from Citigroup in November.