A semiotic analysis of the extendibility of luxury brands

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.