Our previous blog post explored 4 Strategies To Emotionally Connect With Your Customers. Using emotions in your branding can help build a strong bond between your brand and clients and contribute to your brand’s overall success.
Today we will explore what might happen if you have poor branding for your company. As we already know, branding is the process of creating a unique identity and perception for a company, product, or service in the minds of consumers. It goes beyond just a logo and encompasses the overall experience and values of the business.
Since this complex process includes many elements, you need to pay close attention to every detail, or your brand can suffer terribly.
Here are 3 problems which may arise if your business lacks good branding, along with examples.
1. Lack of recognition, loss of trust and difficulty attracting customers
Good branding helps a business standout and become recognisable to its target audience. Without strong branding, the business may struggle to create a memorable and distinct image, making it difficult for potential customers to identify and remember the brand. That leads to a lack of trust and a decline in customer loyalty and repeat business.
Without a compelling brand identity, a business may find it challenging to attract new customers, leading to slower growth and lower sales.
An example of a brand that experienced a lack of recognition, a loss of trust, and difficulty attracting customers due to poor branding is the music streaming service "Tidal."
Tidal was launched in 2014 as a subscription-based music platform aiming to differentiate itself from other streaming services by offering high-quality sound and exclusive content from famous artists. It was positioned as an artist-owned platform, with several high-profile musicians, including Jay-Z, Beyoncé, Kanye West, Rihanna, and Madonna, among its co-owners.
Despite the star power behind the brand, Tidal faced numerous challenges in its branding and marketing efforts. One of the major issues was the perceived lack of transparency and confusion around its ownership structure.
The co-owners participated in a highly publicised press conference when Tidal was introduced. Their messaging was criticised as being out of touch and focused more on the artists rather than explaining the platform's benefits to consumers.
Additionally, Tidal's marketing and branding efforts were criticised for being elitist and catering only to high-profile artists and wealthy customers, given its higher subscription price compared to other popular music streaming services.
This exclusivity led to a perception of Tidal as disconnected from the average music listener, leading to difficulty attracting and retaining a broader customer base.
Furthermore, Tidal faced technical issues and a limited catalogue of exclusive content, making it difficult for the platform to compete with more established and affordable competitors like Spotify and Apple Music.
As a result of these branding and marketing missteps, Tidal struggled to gain widespread recognition and failed to achieve the level of success its co-owners had hoped for. The platform faced criticism from consumers and the music industry, leading to a loss of trust in its ability to deliver on its promises. While Tidal continues to exist as a niche service, it has not been able to rival the dominant players in the music streaming market.
Effective branding is a delicate balance of clear messaging, customer-centricity, authenticity, and differentiation. Understanding the target audience, communicating the brand's value, and consistently delivering on promises are crucial elements that can make or break a brand's success in the marketplace.
2.Difficulties expanding and building partnerships
When a business lacks a clear brand identity, expanding into new markets or introducing new products or services becomes more challenging.
Consumers may need help understanding or trusting the new products, making gaining a foothold in new areas harder.
Strong brands often attract potential partners and collaborations. A business without a well-established brand may struggle to build strategic partnerships that could otherwise boost its growth and reputation.
An example of a brand that experienced difficulties expanding and building partnerships due to poor branding is "RadioShack.
RadioShack had a long-standing image as a store selling electronic components and hobbyist gear but failed to update its brand identity to appeal to modern consumers. The brand became associated with outdated technology and a lack of relevance in the fast-paced digital age.
As the electronics market innovated rapidly, RadioShack failed to keep up with the latest consumer trends and cutting-edge products.
RadioShack faced strong competition from online retailers that offered a wider selection, competitive prices, and the convenience of online shopping. The company struggled to establish its online presence and keep up with the digital retail landscape.
RadioShack's branding lacked clarity and consistency, making it difficult for consumers to understand what the brand stood for in the current market. They attempted various rebranding efforts, but the messaging often failed to resonate with consumers or differentiate RadioShack from its competitors effectively.
RadioShack's poor branding and declining market position made it less appealing to potential partners and suppliers. As the brand struggled, it faced challenges building strategic partnerships that could have helped revitalize its business.
3. Marketing inefficiency and negative perception
Good branding helps guide marketing efforts by providing a clear message and target audience. Without it, marketing campaigns may lack direction and fail to resonate with consumers, wasting valuable time and resources.
Poor branding can lead to a negative perception of the business. If the brand fails to communicate its values or provides inconsistent messaging, consumers may perceive it as unprofessional, unreliable, or lacking quality.
An example of a brand that experienced marketing inefficiency and negative perception due to poor branding is Coca-Cola and its introduction of "New Coke."
In 1985, The Coca-Cola Company made a significant branding and marketing misstep by introducing "New Coke," a reformulated version of their classic Coca-Cola soft drink. The decision to change the original Coke recipe was driven by declining market share and competition from Pepsi, which was gaining popularity in blind taste tests.
The launch of "New Coke" was marred by poor marketing and a lack of understanding of consumer sentiment. The company relied heavily on taste tests that showed people preferred the sweeter taste of "New Coke" over the original formula. However, they failed to consider consumers' strong emotional attachment to the traditional Coke taste and brand.
When "New Coke" was introduced, it faced a strong backlash from loyal Coca-Cola fans who were deeply attached to the original taste and brand. Consumers expressed their displeasure and frustration at the change, negatively perceiving "NewCoke" as an unwelcome replacement for a beloved icon. Many consumers felt betrayed and believed that The Coca-Cola Company prioritised marketing and competition over their customers' preferences and loyalty.
The negative perception of "New Coke" resulted in a public outcry and boycotts from consumers who demanded the return of the original Coca-Cola formula. The backlash was so significant that it became a cultural phenomenon covered extensively by the media.
Following that, The Coca-Cola Company faced a marketing crisis. After only 79 days, they brought back the original Coca-Cola formula, rebranded as "Coca-Cola Classic," and continued to sell it alongside "New Coke".
That is an excellent example of the importance of understanding consumers' emotional connection with a brand. The episode demonstrated the significance of balancing marketing data with emotional branding, as consumers' emotional attachment to a brand can be more powerful than taste preferences in influencing their choices and perceptions.
The incident also showcased the risks of deviating too far from successful brand identity and how poor branding decisions can lead to marketing inefficiency and damage a company's reputation.
Good branding is crucial for a business's success and growth. It helps create trust, recognition, and differentiation in the market, enabling the company to attract customers, employees, and partners while supporting its overall business goals.
Many brands have successfully utilised branding to communicate their values, connect with their target audience, and differentiate themselves from competitors, contributing to their enduring success in their respective industries.
But branding perception can change over time. Some of these brands may have taken steps to improve their branding or reinvent themselves to address their challenges but faced difficulties or criticism related to their branding strategies.
Poor branding decisions can lead to marketing inefficiency, damage a company's reputation, lack of recognition, loss of trust, and difficulty attracting customers. Such mistakes can have long-lasting consequences for a company, even in a niche market. It can prove difficult to recover from such a situation even if your brand is established.
Maintaining a strong and credible brand identity, balancing marketing data with emotional branding and staying within a successful brand identity is important.
At Metaka Branding Studio, we understand the importance of creating strong and unique branding to succeed. Reach out to us for expert guidance and support. For more valuable insights on branding, visit our website's blog section.
