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Understanding some Elements of Branding: Learn Why do Brands Fail?

30 July, 2016

10 Reasons Why the Brands Fail to Sustain and How they Could have Avoided the Downfall

The success and failure of any company depends to a great extent on its branding as well as marketing efforts. What is a brand? 

An identity that differentiates you from the competitors. Once the brand name becomes a success it becomes important to maintain its level in the market. 

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Often it is seen that when a product is not as good as it should be, even then branding departments suffer the blame. 

The organization puts up the question when the brand fails. It does not realize at first that brand is not doing well in the market but later when the company gives up then they accept the fact that brand has failed.

Understanding some Elements of Branding: Learn Why do Brands Fail
Why Brands Fail?

Let us throw some light on the reasons due to which why brands fail:

1- Fast Expansion With Less Resources

Some companies have a tendency and so much hurry to expand very fast despite of the fact that they have limited resources. They do not have potential to carry so many products because of less resources but they do and the end result comes out to be as brand failure. 

It gets hard to maintain your brand equity when you tend to move at fast pace with few resources. This affects the brand negatively.

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2- Too Much Exposure

As the say, too much of anything is not good. Same is the case with brands. A brand lose its credibility when its is exposed too much. 

Marketing is important for the business but over marketing is not the right thing. Marketing builds your customer base but over marketing makes you too common in the eyes of public and chances are your value might decrease for them.

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3- Competition

A lot of brands exist in the market for similar kind of products. This leads to a huge competition amongst all. The brand which is unable to match with increased competition fails to survive in the market and are thrown out. 

Take the case of products like shampoos, soaps, toothpastes etc. You can understand this point in the light of these product;s examples. Many brands came and went but those who managed to give a tough competition survived.

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4- Breaking Promise

When brands which are doing great in a certain product segment breaks the promise for which it was actually accepted by the customers, it loses its value. 

For example; a bike company which promised to give the customers a great ride experience via their product comes up with some cosmetic product then customers will take this in the negative light and treat it to be as false marketing. Promising something and trying to sell something else.

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5- Sub-Brands

Creating sub-brands at the cost of parent brand i-e overlooking or repositioning the parent brand so as to introduce a sub-brand does not leave a positive impact on customers. 

Also launching sub-brands without thinking about the customers needs affects the brand badly.

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6- Not Matching With Latest Trend

One of the most common reason why brands fail is due to the reason they are not able to match with the latest market trends. Take the example of technology here. 

The best example taken could be of Nokia which lost its market share because it was unable to give the latest technology to its customers at the time when android was in and customers were running to grab it. 

Relevancy in terms of products with the passage of time as the trend goes on is imperative and when you fail to apply the latest product or service innovations to your flagship to your brand it loses the market share.

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7- Unsuccessful Brand Extension

Brand fails when it extends its product categories even after its core category is declined. Brand extension is not a bad idea but only when the situation is favorable. 

When things are not going in your favour and your current product line under a brand name is not doing well in the market, you should not leverage your efforts by introducing another product line. You cannot stretch the brand when it does not makes sense.

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8- Low Product Quality

A very obvious thing. Why would the customers accept your brand when the product you deliver is of low quality.

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9- Too Much expenses

Spending huge amount on sales promotions, trade deals and others at the expense of brand building is another reason leading to brand failure.

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10- Changes

Not sticking one or few and constantly keeping on changing product line repetitively because the latter did not do well also makes a brand incompetent and it fails to create its name in the market. 

1 comment

  1. This makes up a comprehensive checklist of do not dos that companies should follow to avoid seeing their brands fail. Thanks for sharing. This necessitates branding solutions from a reputed agency.


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