Why Does the Branding Process Fail?

Branding process is a method developed by commercial organizations to prevent failure. Branding is no longer used only for naming, it also plays a much more important role in the success and failure of the business organization than in previous years.

Why Does the Branding Process Fail?

The success and failure of a brand depends on the relationship it establishes with the consumer, the image, promises and advertising of the brand, because the consumers decide the future of the brands. Once the relationship with the consumer is established, this relationship determines the consumers' approach and perspective towards the brand. When this relationship is broken, it opens the way to the failure of the brand.

Reasons for Brand Failure:

1. Target Crossing

Devasion is when a brand goes off course by forgetting what a brand it is, what its goal is, and trying new things about its brand identity and its place in the market. This new route may not match the image of the brand and its place in the market, which can lead to brand failure.

With sales exceeding millions per day, Coca Cola is undoubtedly one of the most loved brands in the world. But he also made the biggest marketing mistake of all time. In the late 1970s and early 1980s, it was clear that Pepsi was organizing better marketing campaigns to get Coca Cola first place in the market. The "Pepsi Challenges" and the "Pepsi Generation" made it clear that people liked the taste of Pepsi more than Coca Cola. Therefore, instead of changing Coca Cola marketing strategies, the only way to beat this competition was the market launched a product called “New Coke” with a better and improved taste. By launching the New Easy, Coca Cola contradicted the previous marketing efforts it spent more than 50 years on to add emotion (happiness) to its original products. So the launch of New Coke was boycotted, leaving the company no other choice but to return the original product.

2. Icarus Paradox (Overconfidence)

Sometimes, the most successful companies in the world face one of the biggest failures because of their strength in the market and past success. Market power and past success give these companies extreme confidence and extreme comfort. These companies avoid trying new strategies and even ignore their competitors.

The Paradox of Icarus refers to the Greek Fairy Tale Icarus, who flew too close to the sun and burned his feathers despite being warned not to do it.

Likewise, many large companies often burn their wings for their excessive self-confidence and the unscientific use of some basic strategies (strategies that help them rise to the top of the market).

3. Insufficient Change

The environment in which the brand operates is dynamic. From time to time he has to change his marketing and branding strategy to keep up with the trend and acquire customers and keep existing ones. In this age of technology, if a brand still adheres to written tools, it will surely fall behind other brands it competes with. Similarly, if a brand cannot anticipate the current and future needs, desires and desires of its customers, it is a probable fact that it will lose to its competitors.

4. Brand Ego

Sometimes a successful brand can get megalomania because of his ego and try to do whatever his hand reaches out. This strategy may not work for all brands. Even Amazon faced certain losses when it released its Fire phones.

5. Brand Paranoia

This is the opposite of brand ego and is what happens when a brand has too many competitors or loses most of its market share. This paranoia can manifest itself in the form of brands changing strategies in a short time, imitating their competitors or deteriorating public relations.
Example of brand failure due to brand paranoia:

Blackberry Brand Failure: Blackberry was the market leader in 2007 before the iPhone existed. At first, Blackberry did not see the iPhone as a competitor, considering it an advanced mobile phone with toy-like features aimed at younger consumers. That's where Blackberry made the mistake. The iPhone instantly became number one and took the majority of Blackberry's market share as it appealed to business people.

Fearing this new race, Blackberry released the Storm, a touchscreen smartphone. However, this impulsive move, made only to curb the race, was not supported by sufficient research and innovation. Because of this, the company has received many complaints about the performance of this new model. This put the company in an even more difficult position and lost most of its market share in the race. Blackberry tried to make a comeback with the release of the gamebook, but by 2010 it had already lost most of its brand value, and the game book failed due to its high price, low features and poor performance.

Other symptoms of brand paranoia can be seen in 17 different acquisitions of Blackberry to improve its products and add new features, but none of them worked.