Why brands fail is a question posed by top management, as well as the entire organization when a brand fails. During the process, no one notices the failure of the mark. It’s only after the company gives up that they realize where the brand has failed. To understand why brands fail, let’s look at the brand’s past.
There were times when products ruled and manufacturing was the king of commerce. However, with increasing industrialization came the time of sales and companies with good sales people dominated the market. But slowly and surely the market evolved and then came the time of marketing and branding.
Companies started differentiating themselves from the competition through their marketing efforts, and through these marketing efforts, the company’s brands and its brand equity grew more and more. With the growth of brand equity, expectations have risen for the brand. And any brand that made a misstep, whether in products or services, fell badly. Only the individual product or service did not drop, it was the brand that did.
The success of a business depends a lot on branding and marketing efforts, but it also depends on the product. However, it is observed several times that even when the product is not up to par, branding is the department in question.
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So, overall, there are 5 reasons brands fail.
1) Bad Product – One of the biggest reasons brands fail is when they release very poor quality products which their customers weren’t expecting. The best example here would be celebrity brands. Celebrities are known to go out of style if they give 4-5 flops back to back. Their brand value drops completely and their brand fails, albeit for a limited time.
2) Falling brand recall – Here, in fact, the marketing department is to blame. A company should make efforts to ensure that it has a high brand recall value and the brand is repeatedly bombarded to the customer to increase brand recall and avoid brand failure. The positioning of the brand must also be up to par. However, when brand recall decreases, customers slowly switch to another brand. This can cause the mark to fail because the recall is too low for the mark to continue.
3) Too much expansion with few resources – Some companies aim to grow very quickly relative to the resources they have or the potential of their brands to offer so many products. If you think of Samsung as a business, its mobile phones, refrigerators and televisions are in demand, but its cameras and air conditioners are broken. So expanding too quickly or too much will leave few resources to maintain your brand equity across all segments.
4) Fake marketing – A brand is a promise. And if that promise is broken, you don’t have a mark. For example, when Harley Davidson introduced fragrances, the brand was hit hard. Because Harley Davidson’s promise to its riders is for the ride they will experience on their bikes. However, when Harley came up with a commercial product like the perfume, it was poorly received by the HOG band as Harley broke his promise.
5) Irrelevance – The brand can become irrelevant for many reasons. One of the most common reasons is technology. For example, Nokia as a brand lost its market share because it did not provide the latest technologies to its customers. Android was all the rage at that time and Nokia partnered with Microsoft instead of Android, which caused redundancy in the brand as the software did not develop as quickly as the competition. So Nokia was redundant and Apple and Samsung were the new players in the game.
So, overall, there are many reasons why brands fail. However, it comes down to the fact that you can’t blame product failure on branding efforts. The product must have inherent value for the brand image to work.