Building and Growing Luxury Brands: Strategies for Pursuing Growth while Maintaining Brand Coherence
Patrick, Vanessa M. and Alokparna (Sonia) Monga (2018), “Building and Growing Luxury Brands: Strategies for Pursuing Growth while Maintaining Brand Coherence” forthcoming in “Research Handbook on Luxury Branding,” Editors: Felicitas Morhart, Sandor Czellar & Keith Wilcox, Edward Elgar Publishing.
Posted: 12 Jun 2020
Date Written: 2018
This chapter comprehensively examines research-based brand strategies that can help luxury brands successfully extend and expand. A key take-away is that successful luxury brand growth strategy entails walking the fine line between managing brand coherence and managing brand innovation and growth. The chapter identifies what a luxury brand is from a consumer perspective, and the facets of the luxury brand that need to be carefully managed in order to create the perception of coherence. Next, it reviews the literature on luxury brand growth strategies, namely, brand extensions, line extensions, alliances and acquisitions, and co-branding. It also outlines research insights on when brand dilution is likely to occur, and how to reduce or eliminate brand dilution. Finally, the chapter concludes with innovations in luxury brand growth strategies, with a call for research to understand the scope of these strategies that help luxury brands pursue long-term growth.
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