A semiotic analysis of the extendibility of luxury brands

authors

  • Veg-Sala Nathalie
  • Roux Elyette

keywords

  • Luxury
  • Semiotics
  • Brand extendibility
  • Brand extension potential
  • Brand narratives and contracts

document type

ART

abstract

Purpose – Considering a long-term perspective and the discourse directly emitted by brands, the aim is to study how can brand extension potential be predicted through the analysis of brand contracts? Design/methodology/approach – Considering a long-term perspective and the discourse directly emitted by brands, the aim is to study how can brand extension potential be predicted through the analysis of brand contracts? Findings – Three groups of brands are identified: brands anchored in both determination and mastery contracts defined as open (high extendibility); brands anchored in a determination contract defined as open, as well as in a mastery contract defined as closed (low extendibility); brands anchored in a mastery contract defined as open as well as in a determination contract defined as not closed (high extendibility, but risks of diluting the brand value). Research limitations/implications – Compared with extensions actually developed by these brands, the results are discussed and strategies are proposed to maximize the long-term brand development when the brand extension potential is low. Only studied on products, it would be interesting to complete this analysis in services. Originality/value – The main contribution is the focus on brand narratives and contracts to predict the brand extensibility of luxury brands. Structural semiotics provides another original insight.

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