loyalty programs or other CRM marketing programs to deliver extra benefits andeventually strengthen the relationship among consumers and the two brandsBritish Airways and Citibank, for instance, co-branded a credit card allowing the owner to automatically become a member of the British Airways Executive Club.
Trade marketing co-branding,
where the involved parties cooperate in designing co- branded products made specifically for a certain distributor or facility. Danone provides agood example in this sense as it has produced a special yogurt for Quick, the Europeanfast food chain.By increasing their distinctiveness, involved brands get to occupy a unique place inconsumers minds and eventually gain customer loyalty by providing them with merged benefits.
2. Deliver consumers greater value by creating highly relevant products or services:
Due to the increasing amount of choices available and in order to cut through all other offerings brands have to custom design added value products and services to meetvariable individual needs.As brands research and uncover these specific customers’ needs, they also find that asingle brand may not be able to meet the demands of such profoundly segmented market.In this category Labbrand includes:
Usage extension co-branding.
Bacardi and Coca Cola, for instance have co-brandedBacardi Mixers range to demonstrate and spur other ways to consume the two brands.
Multiple sponsors co-branding,
where more than two companies unify their effort toform a strategic alliance and create a specific co-branded technologically enhanced product.
Market niche co-branding.
Take for instance the cooperation between Adidas and Stella McCartney. This broughtabout a women-oriented, stylish and casual sport design collection: Adidas by StellaMcCartney. This co-branded line manages to satisfy the demand of female buyers lookingfor sportswear that blends functionality and style while being able to deliver “productsthat both perform and look great”1Moreover, having a high end designer create a sport range for women translated into practical benefits for both the collaborating parties: new consumers, willing to pay a premium to get the “special” sportswear, and buzz advertising around a range of productsthat was, back in 2004, the first ever sportswear collection signed by a high-end designer.Look also at Smart car: a joint creation of Mercedes and Swatch designed especially for