Product-service extensions and semiotic analysis of Brand Extension Potential (BEP): The case of luxury hospitality[L’apport de l’analyse sémiotique à l’évaluation du potentiel d’extension de marque produit-service : le cas de l’hôtellerie de luxe]

Although more and more luxury goods brands are expanding in the services sector, very little research has yet focused on these strategies of development. Given the risks associated, the aims of this article are (1) to define the specificities of product-service extensions and (2) to analyze the internal legitimacy of luxury brands to be launched in the services through the analysis of the BEP (Brand Extension Potential). The BEP defines where and how far a brand can be extended according to their emitted discourses and more specifically according to the openness of their brand contracts (delimitation, determination, mastery). A semiotic analysis has been conducted on four luxury goods brands (Armani, Baccarat, Bulgari, Cheval Blanc) that have expanded in hospitality. It is revealed that the BEP to services depends on the openness of the delimitation and mastery contracts. The results are confronted with the current situations of the brands studied as well as the opinions of luxury consumers. Managerial implications are deduced.