Why do so many luxury brand extensions fail?
Chateau Margaux, the famous Bordeaux first growth, is up there with the very best. Live like a Saint and die, said William Styron in the novel Sophie’s Choice, and “that must be what they make you to drink [sic] in paradise.” It would be a marketer’s dream to extend the Chateau Margaux brand. It could perhaps be broadened to less rare, more readily available, early drinking wines. Or, partnerships with wineries in other countries could be formed. It might even be extended to other beverages, or to a range of gourmet food products. So far, Chateau Margaux has resisted the temptation to extend the legendary brand to anything other than great wines. In contrast, other luxury brands have not been able to resist the temptation, often with dreary results. The once-venerable Pierre Cardin brand attempted to boost flagging revenues in the 1960s by licensing its name to perfumes and cosmetics that were manufactured by trans-nationals such as Unilever, L’Oreal or Estee Lauder. Initially the appr
