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The 27 Common Causes Of Brand Failure

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“What is wrong with us?! But we’ve done everything possible!” — This is an emotional question on the lips of many business owners whose business keeps taking a nosedive.

Earlier on Branditechture Blog, we identified ways in which you can align your brand with your brand strategy in order to circumvent common brand problems.  But a lot of brand owners don’t even realise that they are in danger until it is too late.


Causes of Brand Failure


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In this post, we have highlighted 27 causes of brand failure to help you detect impending danger and raise your awareness;

  1. Overhyping and underdelivering — Not delivering as communicated in the brand promise.
  2. Focusing too much on sales promotion at the expense of brand building.
  3. Trying to be everything to everyone.
  4. Loss of brand equity due to inattentive brand advertising.
  5. When there is a disconnect between the brand strategy and the business strategy.
  6. Confusing brand improvement with logo redesign.
  7. Wrong partnership
  8. Frequently changing your brands positioning and message.
  9. Decreasing the quality of product or service in a bid to reduce operating and overhead costs.
  10. Increasing the prices of products or services at a rate greater than inflation while still targeting the same low-end market segment.
  11. Bringing the brand under too much pressure to produce quarter-over-quarter revenue and profit — A common problem among tech startups.
  12. Persistently refusing a brand strategy audit and sticking fervently to a declining brand strategy with hopes of “better days.”
  13. Failure to branch the brand into (a) new sub-brand(s) when the main brand keeps showing a decline.
  14. Using the same brand identity in completely different categories and markets. For example, marketing a real estate business and logistics business under the same brand identity — Dilutes the efficacy of your marketing efforts and confuses your audience.
  15. Prioritizing personal benefits over customer needs as a reason for creating new brands or sub-brands.
  16. Launching sub-brands that inadvertently cause a poor public opinion of the parent brand instead of improving the existing brand.
  17. Failed attempt to extend the brand up to a premium segment or down to a value segment without a fallback strategy.
  18. Not keeping up with the industry standards on product quality.
  19. Evading government policies.
  20. Final decisions that adversely affect the brand are made by executives with very little to no fundamental knowledge of branding.
  21. Senior staff do not understand the brand values and what the brand stands for.
  22. A complete absence of a brand champion within the organization.
  23. Licensing the brand name out to just anyone as long as they meet will pay for it.
  24. Having no person or department responsible for brand PR, mindshare, supervision, and management.
  25. Having no brand guidelines, manual, guide or brand book, leading to inconsistent presentation and customer confusion.
  26. Choosing generic (non-proprietary) brand name especially when you have a very little promotional budget.
  27. Trying to make too many points in your brand communication rather than focusing on the one or two most compelling points of difference.

Did we miss something? Please drop a comment below.

Branditechture has a strategic brand consultancy focused on Brand Naming, Brand Research, Brand Strategy, Brand Licensing and Brand Education. Shoot us a message to request an (online) appointment.

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