10 potential reasons for brand failure that you didn’t notice
Have you ever studied day and night for an exam and still flunked? If the answer is affirmative, then surely you are missing out on something very important. Similarly, there are many companies that have offered an exceptional product on which they spent days and nights striving for perfection but still, somehow, managed to achieve brand failure. So, in this blog, let’s try and find out the possible reasons for a brand might fail.
- Shifting focus from brand to product
The striking reality that people miss out on in brand building is that it is not the better product that always wins. As sometimes, in exams you are afraid you study one topic so much that you leave out others. But in the exam the topic that you put all your efforts on, carries just 5 marks while others cover the whole paper. Similarly, in brand building, it is very important to look at things holistically. One should not think that the brand is already an established one and therefore does not require any brand-building activities.
- Lack of marketing budget
Sometimes even after everything is perfect, the marketing budget for building the brand is not nearly enough to achieve anything meaningful. What really happens is that the management may believe that the marketing of a new product under the same brand may not need that much resource allocation. But almost always a new product needs to be treated as a new brand.
- Fewer resources as compared to the products
Many organizations believe that introducing new products under one brand name (brand extensions) will help in building the brand very fast, but this is not actually true. Most often customers are left with too many options to choose from which confuses them and dilutes the brand essence.
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- Middle place is not safer for the brands
A brand that is stuck in the middle holds no defined positioning in the marketplace. Such brands struggle hard to maintain their place in the market. They want to play a safe game, but eventually fail by taking no risks at all.
- Product and brand are equally responsible
It is partially true that the success of a company depends a lot on the branding and marketing efforts of an organization, but the product part cannot be ignored. It is equally important for any company. However, it’s been observed that even when the product is not up to the mark, it’s the branding department that takes the blame.
- Purposely fooling your customers
Knowingly choosing to deceive your customers in order to gain attention may result in permanently damaging your brand image. Instead of solving a problem temporarily by deceit, one must work on permanently deleting the problem. And once the image is lost, no PR activity can reclaim the lost ground.
- Not keeping up with the market changes
The most noticeable mistake an established brand can do is ignore the changing market. This is the least expected mistake, which is expected from any brand. Market is their bread and butter and it should not be played with.
- Customer satisfaction v/s customer expectation
A company should know what its customers are expecting from their product. They should work on satisfying their customers and work towards their expectations, as the customer is the king.
- More marketing than required
An overly-marketed product will eventually lose its essence in the market. It is a turn off for the customers.
- Service is not up to the mark.
Sometimes when everything goes right, the service may go wrong. If there is no proper follow up on a product, which is doing well, it will eventually decrease its sales.
Eventually, the success of a company depends a lot on the branding and marketing efforts but it also depends on the product. So next time when you plan to give an exam, make sure you have covered all the above points.
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