BMW morphed from a 1-brand, 5-model carmaker into a 3-brand, 10-model powerhouse, by expanding downwards with Mini Coopers and 1-series models and also building upward with the Rolls Royce.

Brand Extension

Prada, Coach, Longchamp, Louis Vuitton and Gucci are a few design houses that have entered the baby diaper bag market.

The launch of Dolce & Gabanna's ready-to-wear line D&G Junior.

Tailoring Products, Pricing & Appeals

Ultra-upscale brands need to shrewdly tailor their products, pricing and appeals to reflect aspects of what might be called the New Sobriety.

More and more luxury car brands, such as Toyota Motor Corp's Lexus and BMW, are promoting their "certified pre-owned" vehicle programs, which recondition used cars, slap a new warranty on them, and offer the same appeal of a spanking-new product to consumers who don't mind paying several thousand dollars less to fulfill their vehicular dreams.

Available Luxury

This strategy, also called "value-oriented luxury", can be followed to target new customers by adjusting the product and price.

Louis Vuitton's offering of smaller (and, therefore, less expensive) items.

L'Oréal started selling fragrances in smaller containers. This way the brand integrity can still be maintained but selling also takes place at a price that's more accessible for the consumer in today's market.

Targeted Luxury

This strategy is being employed by Maurice Lacroix as it provides watches as giveaways to its target consumers, the corporate executives it meets in the course of its promotions.

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* Contributed by: -
Aniruddh Kr. Singh,
Batch of 2007-09,
Faculty of Management Studies, Delhi.
Article posted on December 21, 2008.