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.