Utilising marketing resources and capabilities for value co-creation in cross-category brand alliances.

Abstract

In this study, the stages of the cross-category brand alliances are investigated by integrating the resource-based view (RBV), and service-dominant (S-D) logic as the underpinning theories. The utilisation of marketing resources and capabilities for value co-creation is explored by analysing five case studies from Turkey. The dyadic relationship between the alliance partner brands is taken as the unit of analysis. The study contributes to brand alliance literature by analysing the level of resources allocated by the partner brands to the brand alliance, and the influence of resource allocation on value outcomes through an integration of RBV an S-D perspective. The categorisation of different alliance types and the opportunity cost model for alliance partner selection are additional contributions of the study to the brand alliance literature. It contributes to RBV literature by identifying the types of resources utilised to achieve competitive advantage in brand alliance context, and by introducing the “alliance resource portfolio” term to explain the integrated pool of resources in a brand alliance. In addition, the study contributes to S-D and value co-creation studies by classifying types of resources, value co-creation roles and value outcomes in the value co-creation process of cross-category brand alliances from a B2B perspective. Findings of the study would help marketing managers to optimise the level of resource allocation in a brand alliance for better value outcomes, to prevent the risks that might occur during the brand alliances, and to make better partner brand choices in their future brand alliances. Furthermore, marketing managers should improve the ways of internal communication to involve different levels of human resources and invest in external communication channels to improve the interaction with the partner brands and customers in the value co-creation process of brand alliances. One of the key findings of the study is that the value co-creation process during the cross-category brand alliances not only involves the customers but also creates values for the customers which in turn contribute to the values and resources of the partner brands. The resources that have a critical influence on the value outcomes of a cross-category brand alliance are identified as marketing resources and capabilities, human resources, technological resources, and brand alliance experience. The direct value outcomes which are co-created by partner brands are financial value, customer acquisition, customer satisfaction and brand awareness. In addition, the brands in a cross-category brand alliance co-creates indirect value outcomes of innovation and knowledge. Although improved brand image and increased customer loyalty are among the popular aims and expectations of marketing managers of case study brands, the achievement of these indirect value outcomes are limited according to the findings of the study.