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Press Release

2008: The Year of Brand Extension

Why the credit crunch will mean big opportunities for established brands

Immediate release: 18 February 2008

Peter ThompsonWhile 'luxury' products and services are likely to suffer at the hands of low consumer confidence in 2008, the credit crunch offers significant opportunities within the financial services market. So says Peter Thompson, new Managing Director for the UK's leading affinity business, Junction.

Mr Thompson said: “While purchases of leisure travel and luxury consumer goods are likely to fall this year, there are some products that remain a true necessity - such as motor and home insurance. Low consumer confidence is in fact likely to benefit some brands, as people seek out 'safer', established names. 2008 will undoubtedly see major growth for affinity business in insurance.”   

Junction works with brands including Post Office®, M&S Money, Auto Trader and Bradford & Bingley to offer quality motor and home insurance products to their customers.  Mr Thompson's views were supported by key research issued this month by Consumer Intelligence, which confirmed that affinity partnerships achieved the greatest growth in the home and motor sectors last year. The researchers highlighted Junction partners Post Office® and M&S Money as two of the most successful brands in personal lines in 2007.

Mr Thompson continued: "The sector is increasingly competitive, and that's why it's imperative that these brands work with providers that offer speed to market and have extensive marketing expertise. Excellent customer service is also essential, as a bad experience will impact on the wider brand perception - and not just within insurance.

"Selection of the right partners for the brand is critical to its success.  Tailoring the proposition design to the affinity customer, the ability to rapidly change the proposition to flex with the modern demands of Retail marketing and harnessing the power of web and aggregator distribution are now hygiene factors for selection."

Mr Thompson joined Junction in December from HBOS, where he was previously Managing Director of Partnerships, having joined in 2003 as Head of Commercial Insurance. Prior to that he was responsible for non-motor personal lines corporate partnerships at Royal & Sun Alliance.

He continued: "I have had a great deal of experience in partnerships during my career, and I have already been extremely impressed with Junction's approach. Junction's joint business framework with M&S Money is a shining example of how partnerships should work - there is complete integration of the teams from both sides and it means the right decisions can be made fast and effectively."

"I am excited about the opportunities that lie ahead for Junction and am certain that this year will deliver some major new relationships."