Why brands fail - Reason for Brand Failures

By: Fareeha Imdad

You’d likely consider breaking up with someone if they refused to adapt to life changes and couldn’t give you want you needed in the relationship. If a brand gets stuck in a rut and doesn’t give consumers what they need, they’ll react the same way only they’ll ditch a failed brand even quicker. Brand choices are made in seconds, and “breaking up” with a brand is easy and painless as soon as something better comes along. Even if a brand starts out with a meteoric rise in popularity and demand, it is destined to fade into oblivion unless it can stay relevant, deliver on the needs of its consumers, and build brand equity over time. Gone are the days when products used to be everything for a company. People, today, buy a brand. There truly isn’t much difference among the products sold in the market. It’s the brand that makes the difference and makes the purchase decision easy for the customer. Why brands fail is a question asked by people when a brand fails. Nothing lives forever and that’s the fate that can strike even the biggest brands out there. However, while some fail in an instant, some are living to span the century. So, what’s the secret?

Brand success and brand failure both depend on the brand – consumer bond, brand image, brand promise and brand positioning as it’s the customer who decides the fate of a brand. Companies began to differentiate themselves from the competition with the marketing efforts, and due to these marketing efforts, the Brands of the company and its brand equity grow higher and higher. And any brand which made a wrong move, whether it was in product or services, dropped severely. Only the individual product or the service will not drop, it is the brand that will face the down fall.


1) Poor product – One of the predominant reasons why brands fail is when they launch very poor products, which was not expected by their customers.

2) Brand recall drops – For this kind of failure it’s the brand that needs to be blamed. Here actually the marketing department is to be blamed. When brand recall drops, customers slowly move to another brand. This may cause brand failure as the recall is too low for the brand to continue.

3) Too much expansion with few resources – Some companies aim to expand very fast as compared to the resources they have or their brands potential to carry so many products. Thus, expanding too fast or too much will leave with few resources to maintain your brand equity across the segments.

4) False marketing – A brand is a promise. And if that promise breaks, you don’t have a brand.

5) Over marketing – Over marketing causes the brand to become too common and thereby the brand might lose value because of Brand fatigue. Too much exposure makes the brand become undesirable.

6) Increase in competition – Increasing competition has caused the brands value to be diluted. This is because already there is such high competition that a brand is not able to stick and even brands which slowdown in their pace, risk being thrown out of the market.