Brand extensions are constantly tempting to marketers, and in the instance of high-end brands the allure is not particularly weak. There are more instances of brand extension calamities that litter the way, while the course to high-end brand success may be partially paved with extensions.
Brand extensions prolong to be among the most research and studied phenomena in marketing. When it comes to high-end brands, however, the variables that result in successful expansion have got far less attention. In this post, we consider the notion of superior that is perceived degree of the brand as a function of its class, and what we term the amount of adjacency between its merchandise groups.
Building on our research, which found that the perceived superior amount of a high-end brand has another impact on profitability depending on whether or not the brand is spread across adjacent merchandise categories, we illustrate when high-end brand extensions work -and when they fail. Possibly most importantly, we herein introduce the superior adjacency matrix as a tool for luxury brand managers to consider in formulating expansion strategies.
PUBLICATION DATE: March 15, 2009 PRODUCT #: BH322-PDF-ENG
This is just an excerpt. This case is about SALES & MARKETING
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