By understanding two things, 1 Why a brand fails ? 2 How you can prevent this ?
A brand is a product, service, or concept that is publicly distinguished from other products, services, or concepts so that it can be easily communicated and usually marketed.
Here is the famous advertising copywriter and ad agency founder David Ogilvy's definition of a brand: The intangible sum of a product's attributes: its name, packaging, and price, its history, its reputation, and the way it's advertised.
A brand is not a logo. A brand is not an identity. A brand is not a product. So what exactly is a brand?
A BRAND IS A PERSON’SGUT FEELING ABOUTA PRODUCT, SERVICE, OR ORGANIZATION.
Individuals define brands, not companies, markets, or not public. It’s not what you say it is
It’s what they say it is.
People have many choices and less time. Most products have same quality and features. Buying choices are based on trust . Why branding is so important?
Product and brand failures occur on an ongoing basis to varying degrees within most product-based organizations. The primary goal is to learn from product and brand failures so that future product development, design, strategy and implementation will be more successful.
The benefits of studying failures Gaining a better understanding of product failures is important to help prevent future failures. Studying the history of product failures may generate some insight into the reason for those failures and create a list of factors that may increase the opportunity for success.
Studying product failures allows those in the planning and implementation process to learn from the mistakes of other product and brand failures. Each product failure can be investigated from the perspective of what, if anything, might have been done differently to produce and market a successful product rather than one that failed.
Defining product and brand failures A product is a failure when its presence in the market leads to:
The withdrawal of the product from the market for
The inability of a product to realize the required market
share to sustain its presence in the market
The inability of a product to achieve the anticipated life
cycle as defined by the organization due to any reason
The ultimate failure of a product to achieve profitability.
Examples of product failures The following is an abbreviated list of product failures that may provide insight that will help to identify product and brand success factors: Automotive and transportation Cadillac Cimarron ,Pontiac Fiero ,Chevrolet Corvair Ford Edsel ,The DeLorean ,Crosley ,The Tucker The Gremlin, the Javelin and a complete line of other models by American Motors GM’s passenger diesel engine ,Mazda’s Wankel rotary engine Firestone 500 tire ,Goodyear tires used on the Ford Explorer , Concorde—supersonic airliner
Computer industry IBM’s PCjr—introduced in March 1985 ,Apple’s Newton Apple’s Lisa ,Coleco’s Adam Percon’s Pocketreader—hand held scanner, Bumble Bee’s software version of the book “ What Color is Your Parachute”
Entertainment Quadraphonic audio equipment World Football League Women’s National Basketball Association World League of American Football United States Football League
Food and beverage Burger King’s veal parmesan ,Burger King’s pita salad Gerber’s Singles—dinners in jars, for adults—early ’70s Chelsea—“baby beer” Photographic and video Polaroid instant home movies SX-70 (Polaroid instant camera) RCA Computers (Spectra-70) Video-disc players DIVX variant on DVD
Failures are not necessarily the result of substandard engineering, design or marketing. Based on critic’s definitions, there are hundreds of “bad” movies that have reached “cult status” and financial success while many “good” movies have been box office bombs. Other premier products fail because of competitive actions.
Using these potential causes of a product or brand failure may help to avoid committing those same errors. Learning from these “lessons” can be beneficial to avoid some of these pitfalls.
Common reasons for product failures
High level executive push of an idea that does not fit the targeted market.
Overestimated market size.
Incorrectly positioned product.
Ineffective promotion, including packaging message, which may have used misleading or confusing marketing message about the product, its features, or its use.
Not understanding the target market segment and the branding process that would provide the most value for that segment.
Incorrectly priced—too high and too low.
Excessive research and/or product development costs.
Underestimating or not correctly understanding competitive activity or retaliatory response.
Poor timing of distribution.
Misleading market research that did not accurately reflect the actual consumer’s behavior for the targeted segment.
Conducted marketing research and ignored those findings.
Key channel partners were not involved, informed, or both.
Lower than anticipated margins.
Something happens to break the bond between the customer and the brand. when brands struggle or fail it is usually down to a distorted perception of either the brand, the competition or the market. This altered view is a result of one of the following six deadly sins of branding: Or
• Brand memory loss For old brands, as for old people, memory becomes an increasing issue. When a brand forgets what it is supposed to stand for, it runs into trouble. The most obvious case brand memory loss occurs when a venerable, long-standing brand tries to create a radical new identity, such as when Coca-Cola tried to replace its original formula with New Coke. The results were disastrous.
Brand egotism . Brands sometimes develop a tendency for over-estimating their own importance, and their own capability. This is evident when a brand believes it can support a market single-handedly, as Polaroid did with the instant photography market. It is also apparent when a brand enters a new market for which it is clearly ill-suited, such as Harley Davidson trying to sell perfume.
• Brand deception . ‘Human kind cannot bear very much reality,’ wrote T S Eliot. Neither can brands. Indeed, some brands see the whole marketing process as an act of covering up the reality of their product. In extreme cases, the trend towards brand fiction can lead to downright lies. In an age where markets are increasingly connected, via the Internet and other technologies, consumers can no longer be deceived.
Brand fatigue . Some companies get bored with their own brands. You can see this happening to products which have been on the shelves for many years, collecting dust. When brand fatigue sets in creativity suffers, and so do sales.
Brand paranoia . This is the opposite of brand ego and is most likely to occur when a brand faces increased competition. Typical symptoms include: a tendency to file lawsuits against rival companies, a willingness to reinvent the brand every six months, and a longing to imitate competitors.
Brand irrelevance . When a market radically evolves, the brands associated with it risk becoming irrelevant and obsolete. Brand managers must strive to maintain relevance by staying ahead of the category, as Kodak is trying to do with digital photography. One more reason is gap between creativity and strategy
In most companies there is wide gap between strategy and creativity.
Strategic thinkers are analytical, logical, and numerical. Creative thinkers are intuitive emotional visual .
Does the left brain know what the right brain is doing?
When both sides work together you can build a charismatic brand.
Any brand can become charismatic even yours
FOUR DISCIPLINES OF BRAND-BUILDING DISCIPLINE 1: DIFFERENTIATE
WE’RE HARDWIRED TO NOTICE ONLY WHAT’S DIFFERENT
FOUR DISCIPLINES OF BRAND-BUILDING DISCIPLINE 2: COLLABORATE Because the mathematics of collaborations nothing less than magic
FOUR DISCIPLINES OF BRAND-BUILDING DISCIPLINE 3: INNOVATE TOO PREDICTABLE = NO SURPRISE NO SURPRISE = NOTHING NEW NOTHING NEW = NO VALUE
REASON THE BEATLES WERE WILDLY SUCCESSFULIS BECAUSE “THEY NEVER DID THE SAME THING ONCE
FOUR DISCIPLINES OF BRAND-BUILDING Business is a process not an entity Brands like people Influence character of a brand. DISCIPLINE 4: CULTIVATE
If a brand swims like a dog and looks like a duck, people will distrust it.
CULTIVATION DIFFRENTIATION COLLABORATON INNOVATION BY MASTERING THE FOUR DISCIPLINES OF BRANDING, THE COMPANY CREATES A CIRCLE
WITH EVERY TURN AROUND THE CIRCLE, THE VALUE OF THE BRAND SPIRALS HIGHER.
YOU BUILD A sustainable competitive advantage.
This presentation is created purely for educational purpose. References are taken from various websites ,and presentations available on internet. Special thanks to Jigar ,Jaimika,and Harshit. Sunday slides from sandeep