Title: Brand and line extensions: an empirical study from the new age luxury industry

Authors: Ashok Som; Naja Pape

Addresses: ESSEC Business School, Avenue Bernard Hirsch – B.P. 105, 95021 Cergy-Pontoise Cedex, France ' Copenhagen Business School, Solbjerg Plads 3, 2000 Frederiksberg, Denmark

Abstract: Brand and line extensions represent an essential vehicle for growth and are currently one of the most applied marketing strategies within the luxury sector. Though it has its advantages, there are several risks associated with pursuing such a strategy. Consequently, this paper attempts to understand the key success factors behind brand and line extension in the new era of luxury expansion. An integrative model of key success factors is proposed by combining current research with empirical findings obtained through an explorative and qualitative research design based on primary data from eight semi-structured interviews with managers from luxury brands. We identify five key success factors: 1) add value through originality; 2) stay at the level of the brand regarding price, quality, style and image; 3) create relevance to core business and be aligned with DNA; 4) stick to the vision of the founder; 5) assure consistency in brand identity and image.

Keywords: brand extension; line extension; critical success factors; CSFs; new age luxury; luxury brands; brand growth; empirical study; qualitative research; institutional perspective; luxury industry; luxury goods; marketing strategies; value added; originality; price; brand quality; brand style; core business relevance; founding vision; brand consistency; brand identity; brand image.

DOI: 10.1504/LRJ.2015.069829

Luxury Research Journal, 2015 Vol.1 No.1, pp.18 - 39

Received: 06 Apr 2015
Accepted: 07 Apr 2015
Published online: 12 Jun 2015 *