Dove Vs. Dior: Extending the Brand Extension Decision-Making Process from Mass to Luxury

Abstract

This paper furthers the understanding of the decision process used by managers when extending their brands. In particular, we investigate the extent to which the model of extension decision process outlined by Ambler and Styles (1997) for fast moving consumer goods is relevant to the luxury sector. We find that the broad structure and components of the A & S model extend to the luxury sector. However, some modifications are required to reflect the differences between luxury and fast moving consumer goods. In contrast with fast moving consumer goods, growth, rather than defence, is the main driver for extending luxury brands. The marketing function, rather than R&D, has the strongest influence on brand extension decisions in the luxury sector. Tradition and brand heritage are identified by luxury goods experts both as the first driver and an important decision criterion for brand extensions.