the brand is something alive; it is born, develops, transforms, falls ill, and dies. Big company brands have disappeared, not only small company brands disappear. We are all exposed to market changes, economic problems, or mistakes caused by a bad business strategy designed by the company.
5 causes of brand failures:
There are always economic factors derived from the management of the business that does not have to do directly with the brand, it is complex to catalog a strict failure of the brand but in many cases, it has not contributed to improving the situation.
Pick a bad name
A large company may allow itself to make a mistake and change, but in an SME that starts off badly by choosing an inappropriate name, it can mean not getting up to lift its head.
Confuse the consumer
If a company launches new low-quality products without taking into account the essence that has made them grow, it can lose its position and the consumer stops loving the main brand.
Copy from others
In all industries, we find how some brands can fail by copying other people’s mistakes. Businesses monitor and copy each other. They also copy products that are susceptible to being imitable and improvable.
Be equal to everyone else
Others lose relevance since they offer nothing that others do not offer. It is important to develop your own strategic plan based on your strengths and unique opportunities, to differentiate yourself in the market and be successful.
Do not use new technologies
A case that could serve as an example in this could be that of Kodak, or Polaroid, which has had a very profitable market niche for years in snapshots, did not know how to change their focus in time to the new digital age that almost made them break.
The main errors of SMEs in the Balearic Islands are:
Do not give importance to the brands of your company.
Believe that brands are unidirectional and can only be managed with advertising.
Say what they do without doing what they say.
The disappearing SMEs do not believe in branding and brand management. In general, companies lack a clear marketing strategy and that can cause many more problems. A brand is great when a group of people is willing to convey the message of that brand, without the need for anyone to ask. When it is honest, different, and clear.
Now more than ever the important thing is to know how to differentiate yourself from the competition, find the right market segment to focus all your efforts on it and talk with consumers:
– What can your brand do to improve the crisis situation?
– What should your brand communicate?
– What errors do SME brands comment on in your sector?
– What simple and differential message can you communicate to your audience?
– What is essential for your business to be successful?