Examines the Recent Trends in Co-branding in Europe and the US.DUBLIN Dublin, city, Republic of Ireland Dublin, Irish Baile Átha Cliath, county borough (1991 pop. 915,516), Leinster, capital of the Republic of Ireland, on Dublin Bay at the mouth of the Liffey River. , Ireland Ireland, Irish Eire (âr`ə) [to it are related the poetic Erin and perhaps the Latin Hibernia], island, 32,598 sq mi (84,429 sq km), second largest of the British Isles. -- Research and Markets (http://www.researchandmarkets.com/reports/c50388) has announced the addition of Co-branded Cards in Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). and the US 2006 to their offering. Co-branding Co-branding is a marketing arrangement that associates a single product or service with more than one brand name, or otherwise associates a product with someone other than the principal producer. is an increasingly popular option for both card issuers and merchants across Europe and the US. This report provides an overview of the market, examining how the partnerships work, the potential benefits and costs for both parties and trends. It also provides a detailed review of many programs in the market and concludes with a discussion on the future of co-branding. Scope of this title: - Introduces and discusses different models of co-branding partnerships, explaining the key motivations for entering into co-branding agreements. - Examines recent trends in co-branding in Europe and the US. - Several co-branding arrangements are examined in detail, segmented by the construct of the loyalty proposition. - Provides our Cards and Payments teams view on the outlook for the co-branding by region. Highlights of this title: - Through a co-branding relationship, customer acquisition costs can be as little as 15 per cent of what they would be through direct mail or other means. Issuing banks Issuing bank Bank that issues a letter of credit. are also increasingly benefiting from the cross-selling Cross-selling is the term used to describe the sale of additional products or services to a customer. Less frequently it is used to describe the sale of services to additional business units at an account or to different geographic units of a customer. opportunities that stem from these relationships. - Despite the obvious advantages of entering into a co-branding agreement, there are many pitfalls that should be avoided by both parties. From the issuers perspective these include the risk of losing revenue from its existing customers as they switch to the new program. Both parties face reputational risk in the event of a failed program. - As a result of the success of co-branding partnerships in established areas such as airlines and hotels, issuers are now looking to different sectors to gain customers. These opportunities include web based Coming from a Web server. See Web application. retailers as well as other retail sectors. Reasons to order your copy: - Discover what makes for a successful co-branding relationship, and the risks associated with them. - Compare the product offerings of the most interesting and innovative co-branded products on the market. - Learn our Cards and Payments Teams assessment of future opportunities in co-branding in Europe and the US. Topics Covered Introduction Who is the target reader? Scope of the briefing How to use this briefing MARKET CONTEXT Introduction Co-branding was first introduced in the US in the 1980s Co-branding brings together the strength of an issuer and merchant partner Co-branded cards are issued in partnership between an issuer and merchant These partnerships leverage the assets and resources of each player to create a strong value proposition, frequently including a loyalty offering Co-branded card programs are formed through either straight partnerships, self issuance or the conversion of a private label portfolio Co-branding offers significant benefits to both parties Issuers benefit from higher spending levels, access to a customer base, lower acquisition costs, cross-selling opportunities and added value Added value in financial analysis of shares is to be distinguished from value added. Used as a measure of shareholder value, calculated using the formula:
The primary benefits for merchants are additional revenue and sales The potential costs for both partners are considerable TRENDS IN CO-BRANDING Due to a combination of competition and the potential benefits, co-branding is growing in importance Intense competition in many markets has forced issuers to look more closely at co-branding partnerships The proportion of co-branded cards in the market place has grown Co-branding is now prevalent in many merchant sectors, leading issuers to look beyond this "traditional" list Relationships between card issuers and their partners have evolved PRODUCT FOCUS Club models Basic Club models are the simplest form of loyalty program Advanced Club Programs give cardholders a greater range of benefits Points based models Basic points based programs Advanced points programs Multi-retailer programs FUTURE FOCUS The market outlook varies by region Co-branding will provide an opportunity for growth in slow growing markets Co-branding will allow issuers to increase market share in growing markets However, co-branding will not be the answer for all issuers and merchants APPENDIX Research methodology Future Readings Our custom research capabilities Cards & Payments Team contact details How to contact experts in your industry List of Tables Table 1: Presidents Choice points awarded by PC Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. , 2006 Table 2: President's Choice President's Choice (or "PC") is the private label brand of Loblaw Companies Limited, the largest food retailer in Canada. The PC brand includes a wide variety of food, drinks and consumer products, and services, such as President's Choice Financial services. , cinema redemptions, 2006 Table 3: Our forecast for pay later card numbers across five markets, 2005 2010 Table 4: The number of co-branded revolving cards in the UK, 2001-2005 Table 5: The proportion of co-branded revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. cards in the UK, 2001-2005 Table 6: The number of co-branded and private label payment cards in the UK, 2001-2005 Table 7: Current relevant publications, 2006 Table 8: Future relevant publications, List of Figures Figure 1: Defining card partnership models, 2006 Figure 2: Combining brand and expertise in a co-branding relationship, 2006 Figure 3: The average co-branded card has twice the average annual spend levels, USA 2004 Figure 4: Payment cards offering rewards have increased in popularity, USA, 2004-2005 Figure 5: The proportion of co-branded cards being issued has grown, USA, 2003 2005 Figure 6: The proportion of co-branded cards in the market place has more than doubled, UK, 2001 2005 Figure 7: In the UK, co-branded cards have tripled in number, whilst private label cards have declined, 2001 2005 Figure 8: The Travelocity Travelocity is an online travel agency operated by Travelocity.com LP. Travelocity is a wholly owned subsidiary of Sabre Holdings Corporation, which was a publicly traded company until taken private by Silver Lake Partners in March 2007. credit card rewards consumers for staying loyal to the brand. Figure 9: Our classification of co-branded card loyalty programs Figure 10: The Jeep MasterCard MasterCard Worldwide (NYSE: MA) is a mutinational corporation based in Purchase, NY in the United States. Throughout the world, its principal business is to process payments between the banks of merchants and the banks of purchasers that use its "Mastercard" branded debit- and , essential statistics, 2006 Figure 11: The Carrefour Carte Pass - essential statistics, 2006 Figure 12: The Porsche
Dr. Ing. h.c. F. Porsche AG, often shortened to Porsche AG, or just Porsche, is a German manufacturer of automobiles. Card - essential statistics, 2006 Figure 13: The Champions League Card, essential statistics 2006 Figure 14: Toys "R" Us Toys "R" Us (currently typeset as ToYsЯuS in the logo) is a toy store chain based in the United States, Canada, Australia,The Netherlands, South Africa, Hong Kong and the United Kingdom. Visa card - essential statistics, 2006 Figure 15: Amazon Amazon, in Greek mythology Amazon (ăm`əzŏn), in Greek mythology, one of a tribe of warlike women who lived in Asia Minor. .co.uk MasterCard - essential statistics, 2006 Figure 16: President's Choice MasterCard, essential statistics, 2006 Figure 17: Tesco Clubcard credit card, essential statistics, 2006 Figure 18: Nectar Credit Card, essential statistics 2006 Figure 19: Nectar Card holder can redeem redeem v. to buy back, as when an owner who had mortgaged his/her real property pays off the debt. The term also refers to paying the amount due and all charges after a foreclosure (due to failure to make payments when due) has begun. their points for a variety of goods online Figure 20: The Web.de Barclaycard, Essential statistics, 2006 Figure 21: Our core consulting capabilities For more information visit http://www.researchandmarkets.com/reports/c50388 Source: Datamonitor |
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