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41 Causes of Brand Failure
- By Ikem Okuhu
- Published April 11th, 2011
- BrandWorld
- Unrated
Why do brands fail? As one might expect, the cause is often one or many common brand problems combined. Earlier on Branding Strategy Insider we identified and analyzed the most common (and most notorious) problems in brand management. We counted them down in detail in a series called the 40 Most Common Brand Problems. (Which grew to 41) Now, in hopes you will not make any mistakes in building your brand(s), here’s an an encore of the 41 problems that cause and or contribute to brand failure.
1. Not delivering against the communicated brand promise
2. Not linking brand planning to the business’ strategic planning process
3. Decreased product or service quality, the cumulative result of gradual and incremental changes to reduce costs.
4. Increased product or service prices inviting low-end market segments and competitors, the cumulative result of gradually raising prices at a rate greater than inflation.
5. The brand is gradually undermined by quarter-over-quarter revenue and profit pressures
6. Limiting the brand to one channel of distribution or aligning the brand too closely with a declining channel of trade
7. Failure to extend the brand into new product categories when the core category is in decline
8. Completely blurring the brand’s meaning and points of distinction by over-extending your brand into different categories and markets
9. Not applying the latest product and service innovations to your flagship brand because it is getting too old and stodgy (a self-fulfilling prophecy)
10. Creating brands or sub-brands for internal or trade reasons, rather than to address distinct consumer needs
11. Launching sub-brands that inadvertently reposition the parent brand in a negative light
12. Unsuccessfully extending the brand up to a premium segment or down to a value segment
13. For market leader: Following challengers because it’s easier and produces more immediate results, rather than creating new ways to meet consumer needs
14. Not keeping up with the industry on product or service innovation
15. Decisions that adversely affect the brand are made outside of the brand management context
16. Senior managers do not understand what the brand stands for
17. Viewing brand equity management as a communications exercise, but ignoring it in other business processes and points of contact with the consumer
18. Licensing the brand name out to whomever will pay for it
19. Applying branding decisions at the end of the product development process (“Now, what will we name this?”) versus treating brand management as the key driver of all of your enterprise’s activities
20. Confusing brand management with product management
1. Not delivering against the communicated brand promise
2. Not linking brand planning to the business’ strategic planning process
3. Decreased product or service quality, the cumulative result of gradual and incremental changes to reduce costs.
4. Increased product or service prices inviting low-end market segments and competitors, the cumulative result of gradually raising prices at a rate greater than inflation.
5. The brand is gradually undermined by quarter-over-quarter revenue and profit pressures
6. Limiting the brand to one channel of distribution or aligning the brand too closely with a declining channel of trade
7. Failure to extend the brand into new product categories when the core category is in decline
8. Completely blurring the brand’s meaning and points of distinction by over-extending your brand into different categories and markets
9. Not applying the latest product and service innovations to your flagship brand because it is getting too old and stodgy (a self-fulfilling prophecy)
10. Creating brands or sub-brands for internal or trade reasons, rather than to address distinct consumer needs
11. Launching sub-brands that inadvertently reposition the parent brand in a negative light
12. Unsuccessfully extending the brand up to a premium segment or down to a value segment
13. For market leader: Following challengers because it’s easier and produces more immediate results, rather than creating new ways to meet consumer needs
14. Not keeping up with the industry on product or service innovation
15. Decisions that adversely affect the brand are made outside of the brand management context
16. Senior managers do not understand what the brand stands for
17. Viewing brand equity management as a communications exercise, but ignoring it in other business processes and points of contact with the consumer
18. Licensing the brand name out to whomever will pay for it
19. Applying branding decisions at the end of the product development process (“Now, what will we name this?”) versus treating brand management as the key driver of all of your enterprise’s activities
20. Confusing brand management with product management
