Media Spotlight: Brand Failures
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By Matt Haig
Business books are full of glowing examples of how to do things well, but it is rare to find a guide on what not to do.
Matt Haig’s Brand Failures The Truth About The 100 Biggest Branding Mistakes Of All Time is one such book.
Haig says that by focussing on the reasons why brands fail, he aims to identify the key traps that businesses can fall into when it comes to branding and provides an illuminating, if rather frightening, read.
He certainly says enough to scare off any firms planning to launch a product with his opening words.
“Brands fail,” he writes. “That is their destiny. Right now, somewhere in the world, someone in a smart suit and an expensive hair cut is in a boardroom selling an idea for a new brand.
“Even if it was a good idea, that brand has never had more chance of failure than it does now.”
But it is not all doom and gloom. Haig says that as branding is now almost solely responsible for a product’s success or failure, firms that get their brand identity right can grow faster than ever.
This is encouraging news for small brokerages, which could build a brand through local community initiatives, while larger firms could use existing brand strength to diversify.
However, Haig warns that no brand is too big to fail, which he demonstrates perfectly with the example of Coca-Cola’s disastrous attempt to replace its original formula with New Coke in 1985.
Coca-Cola may be one of the most recognised brands in the world, but that didn’t stop its New Coke initiative from resulting in an embarrassing U-turn.
New Coke stemmed from the firm’s desire to stave off arch rival Pepsi’s growing success and claims of a better-tasting drink, but although Coca-Cola did improve its taste, it underestimated the strength of its original brand.
The US public was outraged when Coke was withdrawn and boycotted New Coke, leaving Coca-Cola little choice but to bring back the original product.
Haig says the debacle has several lessons. First, firms should concentrate on the perception of the brand as well as on the products themselves. They should carry out the right market research and beware of cloning their rivals.
The book also cautions against unwise brand extensions, noting that while those such as Virgin have been able to successfully enter different markets, others fail by entering sectors too far removed from their original brand.
“Although brand extension may increase sales in the short term, it can devalue long term identity,” says Haig.
There is a valuable lesson here for brokers keen to diversify, as they may risk diluting their mortgage branding in the process of chasing new revenue streams.
Brokers are unlikely, however, to experiment with some of the wacky brand extensions described in the book, such as Harley Davidson’s foray into the perfume market and pen manufacturer Bic’s attempt to lend its name to women’s underwear.
“Consumers were unable to see any link between Bic’s other products and underwear, because of course there was no link,” explains Haig.
For anyone brave enough to be launching or extending a brand in the current economic climate, the cautionary tales in this book should serve them well - if of course they don’t put them off entirely, that is.
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