Why brands fail
why brands fail is a question asked by top people and organizations.
A brand basically helped the organizations differentiate themselves from the competitions.
Intel was the first one to brand Micro processors and it reaped huge benefits from it. Microsoft beat IBM due to its marketing potential as well as because of a slew of products. Apple beat Microsoft’s brand image by branding new products and marketing itself as innovative .
The success of a company depends a lot on the branding and marketing efforts but it also depends on the product.
7 reason why brands fail
1) poor product : One of the reason why a product fail is a poor product which was not expected by customers.
2) Brand recall drops : A company has to put in efforts to ensure that it has a high brand recall value and that the brand is repeatedly bombarded to the customers to increase brand recall and to avoid brand failure .
3) To much expansion with few resources : Some companies aim to expand very fast as compared to resources they have or their brands potential to carry so many products.
4) False marketing : A brand is a promise and if that promise breaks you don’t have a brand.
5) Over marketing : Over marketing causes the brand become too common and there by the brand might lose value because of brand fatigue. Too much exposure makes the brand become undesirable.
6) Irrelevancy : The brand might become irrelevant because of many reasons .
One of the most common reason is technology. For example Nokia as a brand last its market because it did not give the latest technology to its customers.
7) Increase in competition : Increasing competitions has caused the brands value to be diluted.
For example in Soaps and Shampoos there are a lot of brands which came and went or couldn’t conquer.