Brand extensions

Extending a brand into more upmarket territory to drive up brand value is not an easy process. When Volkswagen launched the luxury Phaeton car marque, it failed to elicit the emotional response from consumers of upmarket brands like Audi.

Brand extensions

Team Interbrand London

Extending a brand requires an understanding of its core perception and how this, and demand drivers, chime with those of the new segment.

Twenty or so years ago, where your brand sat on the spectrum from value to premium was largely fixed and predictable. In the UK, Marks & Spencer was the middle-class favourite for clothes and Virgin was the plucky challenger, some way apart from the premium territory owned by British Airways.

Today, the picture is far more blurred, as brands have extended upwards and downwards in an attempt to capture market segments...

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