- Branding is a key component in keeping your brand relevant for a long time - it’s basically the heart that keeps your business alive and well.
- Even the strongest brands can fail when there is a lack of competitive analysis, brand consistency, or brand management.
- There is no “one size fits all” branding strategy, because brands need to change with the market, the environment, and their customers’ and audiences’ wants and needs.
Good Branding Requires Precision
Branding isn’t rocket science. It’s not something that can be easily broken down into figures and statements. That’s what makes it different from, but not necessarily easier, than fields like engineering or chemistry. A keen understanding of what makes a good brand can spell the difference between a business that enjoys prosperity and longevity, and a complete flop.
Sadly, flops are all too common. In fact, only one out of every three small businesses are able to stay open for ten years. Although 80% of them make it through their first year, there is a strong tendency for them to lose that momentum after the one-year mark. If those numbers sound scary, don’t get discouraged. You can establish and maintain a strong brand by learning from the mistakes many companies have made in the past.
Let’s take a look at an example from all the way back in 1955. Ford had a shiny new ride in the works: Edsel, a large-and-in-charge gas guzzler that was their answer to the American driver’s fancy at the time. Two years later, Edsel hit the market and failed so miserably that Ford ceased production altogether after another two years.
What went wrong? Within the two years that Ford was developing Edsel, the stock market took a dive and consumers started opting for more compact vehicles. Edsel and all the hype that came with it was two years too late - it was the wrong car at the wrong time. Now, over six decades later, Edsel is still remembered as one of the most expensive mistakes ever made in the US automobile industry.
Why Do Brands Fail?
Edsel is just one example of a blunder that came about because of both bad circumstances and poor branding. Of course, we can’t always control the circumstances around our businesses, but we can be proactive and strategic when it comes to branding. Part of being strategic is working to avoid these common mistakes.
Mistake #1: Weak Competitive Analysis
Keeping a finger on the pulse of your industry is a good place to start, but it’s not enough. Some business owners are content to compare products, services, and marketing materials in their field. There is, however, an extra step that they’re missing.
Rather than nitpicking at small details, try taking a step back to look at the bigger picture: how are your competitors positioning themselves in the market? What strategies are they using to set themselves apart from everyone else? When you have a good grasp of this, you can use it to leverage your own business to create a strong, distinct, and memorable brand.
Mistake #2: Inconsistency
Consistent branding fosters a sense of familiarity in your customers, and customers are always more willing to spend money on a familiar brand than one they don’t recognize. No matter how many times you refresh or rebrand your business, a few vital, constant factors will ensure that your loyal fan base remains loyal.
No one knows this better than Coca Cola. They rebranded in the early 1980s in an attempt to catch up to their main competitor, Pepsi, who was pulling ahead at the time. The idea of a “New Coke” clashed horribly with their classic image. Customers who appreciated the nostalgic, sentimental vibe of Coke were turned off, and the New Coke campaign was quickly dissolved.
Mistake #3: Stagnation
One of the toughest hurdles that a brand might struggle with is becoming irrelevant. In a fast-changing field like small electronics, for example, there’s always a hot new game or gadget to compete for consumers’ attention.
No matter what industry your company belongs to, it’s easy to get stuck in your comfort zone and cling to an “If it ain’t broke, don’t fix it” mentality. The problem with this mentality is that it’s focused on the past, not the future. When there are changes in the market, as there inevitably will be, companies must change, too.
Mistake #4: Too Much Expansion
The idea of expanding is glamorous and exciting - but it’s not always practical. If the timing and planning of your expansion are even a little bit off, it can frequently lead to poor allocation of resources and lots of wasted efforts. This is why it’s necessary to do a thorough assessment of what you have versus what you want and the cost of bridging the two.
While Samsung has enjoyed great success with their smartphones, TVs, and refrigerators, their cameras and air conditioners have hardly met the mark. This could be traced back to the company expanding too quickly or failing to have sufficient resources to maintain the standard in all their products.
Mistake #5: Deception
Honesty in branding is incredibly important. When your messaging is not only appealing, but also accurate, your clients develop trust in you and what you deliver. Marketing strategies that aim to stretch the truth or gloss over issues only check the box for “appealing”, but it won’t take long for customers to figure out that “accurate” doesn’t apply.
When that happens, many customers will be inclined to seek similar products and services elsewhere. Your clients don’t need to know all of the nitty gritty details of your process. They just need clear, truthful messaging when it comes to what you’re offering.
Mistake #6: Overconfidence
There’s nothing wrong with celebrating your victories, as long as you don’t let them get to your head. In business, there’s no good time to be complacent. Regardless of whether you’re on top of your game or recovering from a bad quarter, you should always have an eye on the market.
Think of new modes of attack often. Don’t let a positive streak make you think that you can just kick back, relax, and keep doing the same thing over and over and expect the same success. This kind of carelessness leads to stagnation.
Let Your Brand Embrace Change
We live in a fast-paced world, and your brand shouldn’t resist or ignore that. Brands function in a dynamic environment, so it’s only natural for your business to evolve. “Change” in this context could mean anything from riding on current trends to introducing new products or marketing materials to attract another demographic of customers.
Your brand doesn’t exist in a vacuum. You will experience highs and lows, and there will be instances when the lows are beyond your control. Sometimes, trying to adjust to sudden market changes can feel pointless, but don’t let it get you down. Instead, take it as a learning experience and sharpen your eye (and more importantly, your skills) for your company, your team, and your consumers.