2 stretching a luxury brand down: an experimental study of core brand dilution effects abstract: this paper analyzes the effects that the step-down line extension of a luxury brand. Conduct top-down market sizing look at the total market for your product or service, and then establish a realistic estimate for your market share take, for example, the hospitality industry. But managing them has become more difficult, since companies in maturing sectors have not only used new brands and products to pursue continued growth but also resisted pruning existing ones, in hopes of maintaining market share, cash flows, and long-lived consumer franchises.
1 högskolan i halmstad section for business and technical studies (set) advantages and disadvantages of brand extension strategy for companies. In the last two decades, luxury brand management has generated much interest and discussions in both academic and business circles among business leaders, the debates have been related to the associated challenges and paradoxes that have emerged as a result of the evolution of luxury since it.
2 foreword this work about brand extension strategy was really interesting and we learn a lot thanks to it it gave us a great overview of the way companies take decision about their brand policy.
Stretching a brand too far can be very dangerous, the inconsistency and disconnection between the parent brand and the new product confuse customers and create a negative impression or a new association to the parent brand thus, diluting the parent brand name. The chief aim is the probe of luxury down market brand streching ( ldmbs ) in the luxury industry and how it can assist companies to maintain the needed balance that is required in order non to harm or even destruct the trade name image and keep high degrees of client trueness. Managing down market brand stretching in the luxury industry september 18, 2017 the definition and analysis of down market brand stretching, luxury, luxury trade name, trade name trueness, luxury consumer every bit good as the related theories required to supply a complete significance of these constructs will be provided every bit good. Down-market stretch occurs in case a company in the middle market wants to introduce a lower-priced line what we will analyze in this paper will be the down market line stretching strategy and how a company in the luxury industry may handle it effectively so that it will not its image and positioning.
The luxury strategy was originally developed for the broadly defined luxury market, and it is there that you can find it the most today as well– in fact, it’s the most efficient strategy in.
Special thanks also to brenda rouse, the managing editor of this journal, whose diligence ensured that the quality of this special issue on luxury brand management matches luxury perceptions. Upward product line extension can advantage the brand through associating the new luxury product addition with the existing brand name additional high quality, high priced products can improve the image of the brand and create a new outlook within the consumer market through consumers associating the brand with its more exclusive and elite products. Understanding market size helps you distinguish between two categories: the addressable market, which is the total revenue opportunity for your product or service and the available market, which.
Fashion brand stretching: how far is too far over the last 20 years, the luxury industry has rapidly increased achieving the title of one of the most profitable businesses in the world in the past, luxury goods were a very selected market of a few exclusive brands and addressed only to a very few privileged individuals the brand didn.