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» Brand positioning from IMPACT®
There's a really good post yesterday on Valeria Maltoni's Conversation Agent blog all about brand position and looking at the case of Tiffany Co. It's also worth looking at the comment by gianandrea facchini that what makes gucci profitable is [Read More]

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richard, the ability of the performing luxury brands is in fact, to retain their desiderability on the high end products (bags for 10.000 usd) and market for the lower end products (wallet for 100 usd). high end customers are not endangered in their perception and the rest of us dream about.

Roger -- thank you for stopping in. Well, I think I might have solved the mystery in the WSJ article. If not, Tim Manners at Reveries might be helpful http://reveries.com/?p=883.

Gianandrea -- right you are that certain brands get mileage out of extending their cache' to different lines. However, if you think about little doggie coats, you might not be so ready to spend so much on a Burberry coat for yourself.

Richie -- your comment dovetails nicely in that a luxury brand should learn to go only so far before it becomes commoditized and begins to lose its luster. Much better to have separate brands... but then we encounter Tiffany's dilemma: the aspirational buyers may not want a perceived lesser brand.

I would have to agree that if a high-end brand goes for the mass-market, it risks devaluing the brand.

In your previous post you mentioned that Ferrari is part owned by Fiat--I'm sure that Ferrari's would lose much of their appeal if they were sold under the Fiat brand.

And, in response to one of the comments above, yes, the mass-market is millions but once the brand loses its desirability then those millions will go away and you will have lost your original high-end clients.

But this is one of the reasons for having seperate brands!

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