A while ago, I wrote an article about how Silver Oak Vineyards used a "pseudo-brand" for its Merlot because it did not want to dilute its Silver Oak brand which was known for its Cabernet. If you are interested, the article can be found here: http://mcclimanlawfirm.com/pdf/June.2004-ICC Article.pdf
Now, it appears as if Vera Wang is doing the exact opposite in an effort to strengthen her brand. Apparently, Ms. Wang is looking to rebrand her ready-to-wear line (currently, "Lavender") to "Vera Wang" which is her bridal gown brand. She is also trying to broaden her brand's reach to include men's fashion and teen clothing.
Clearly, Ms. Wang and her team have figured out that the middle-level brands are what will allow her company to grow in this tough economy. Although, it is no secret that she is using the strength of her Vera Wang brand for her bridal gown line to bolster these other lines.
Of course, this strategy does not come without risks. As with Silver Oak, she risks diluting her brand and/or confusing customers about the source or quality of her products bearing her well-known brand. In fact, Ms. Wang shut down her Lavender collection during the economic downturn. Interestingly, Ms. Wang's lower end lines (sold in Kohl's) are doing well. This may be an indication of how the economy has affected consumers as much as Ms. Wang's lines.
Only time will tell if Ms. Wang's strategy for her brand will work or not.
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