4 Risks of Branding That Can Destroy Your Business

Negative Publicity and Brand Damage

In today’s hyper-connected world, news travels fast, and bad news travels even faster.

All it takes is a single negative incident, a nearby frenzy involving a product recall, a displeased client who turns her complaint into news, or social media gracious misadventures, and your company will end up with a crisis in the world of branding.

Remember the infamous United Airlines incident where a passenger was forcibly removed from an overbooked flight?

The footage went on to break the internet, sparking anger and causing a heavy blow to the airline’s image. Such negative publicity can tarnish your regional and local branding.

While you can’t always predict negative events, you can prepare for them. Below are some ways to reduce the negative impact on the reputation of the brand:

• Plan For Crisis: It is always better to prepare well ahead than wait for the storm. This means there are persons designated as spokespersons, key messages, and communication channels to ensure a swift and coordinated response.
• Conveying Transparency: Wherever negative publicity arises, there should always be measures to promote positive PR. Address the situation, accept blame, and be candid with your audience.
• On-Time Response: Negative news seldom settles without action. Respond quickly and decisively to address concerns and prevent the spread of misinformation.
• Social Media Monitoring: Brands should implement resources in social listening to identify potential issues early on and address them proactively.

If these procedures are followed, there are fewer chances of adverse consequences from defamatory publications about such a person’s reputation.

Inconsistency in Brand Messaging

Imagine visiting a website with a sleek, modern design on a smart device and receiving a promotional email with a look and feel completely misaligned with the design.

Obviously this is not the way you create a brand experience.

Or encountering a salesperson whose communication style clashes with the overall tone of the brand they represent. These inconsistencies create confusion and erode trust in your brand.

Such communication problems usually result from the following reasons:

• Lack of Clear Brand Guidelines: A brand style guide is fundamental in developing a business’s narrative, visuals, and messaging; without this guide, errors and inconsistencies are inevitable.
• Poor Internal Communication: Several departments, divisions, or teams in a company may develop their messages, leading to cohesive communication and a cohesive brand experience.
• Multiple Agencies or Freelancers: Employing multiple agencies and freelancers without clear communication and coordination can result in inconsistent branding.

To address the above problems and achieve the desired goals:

• Create an In-Depth Brand Guidelines: Create a comprehensive document highlighting your brand identity’s attributes – usage of the logo, color, type, style, and voice of the message.
• Centralize Brand Management: Assign individuals responsible for maintaining and enforcing the brand’s consistency across all the available marketing platforms like websites or social media.
• Encourage Staff to Communicate with One Voice: Internalize corporate messaging design’s avowed precepts so all employees consistently represent your brand.
• Regularly Audit Brand Communications: Review marketing communication, including data and boards, frequently stipulating any expectations that have been met or unmet.

By focusing on consistency, a brand can achieve uniformity in perception and establish trust.

Failure to Adapt to Changing Market Trends

Wouldn’t it be rather crude if someone says market dynamics remain constant?

Consumer behavior and preferences change, modern technologies appear, and market impulses do not last forever. Brands that are not adapting are becoming irrelevant and losing market share.

What about Blockbuster Video? They could have adapted to the rise of streaming services like Netflix, clinging to their outdated business model and ultimately facing bankruptcy.

To avoid becoming irrelevant, align your brand with evolving consumer behavior and preferences:

• Conduct Regular Market Research: Keep a close watch on the prospective audience and its changing needs, preferences, and behaviors.
• Watch the Trends: Watch what other industries are doing because trends and advancements in technology spill across markets.
• Embrace New Technologies: Give your customers reasons and opportunities to connect with your brand by adapting new technologies.
• Be Willing to Evolve: Your brand is not static. Open to refreshing visual features, language, product structure, and sequence.

By embracing change, tweaking brand strategies and adapting to market dynamics, you can ensure your brand remains relevant and competitive.

High Costs Associated with Rebranding

Rebranding can sometimes be the only option for a few businesses, but it is more often than not an expensive and time-consuming process.

Companies may find it necessary to rebrand themselves after mergers and acquisitions due to the modernization of their products or negative brand connotations.

There are costs that businesses incur as a result of rebranding include:

• Market Research: The study of market conditions and consumer perceptions.
• Logo and Visual Identity Redesign: Making up of color scheme, logo, and other visual attributes.
• Website Redesign: Change the look and feel of the website with the new branding.
• Marketing and Communication Materials: Replace old promotional materials, packaging, and billboards with the latest ones.

To control the rebranding costs

• Consider a Phased Approach: Rather than implementing all changes at once, promote rebranding by gradually introducing the new elements over time.
• Prioritize Essential Elements: Implement the most effective strategies first, and ensure the logo and the website are given priority before the other less important strategies are pursued.
• Reuse of Most Items and Content: Reduce costs by using old materials or content as much as possible.

If the process is well planned and funded, it is possible to successfully manage the overall cost of rebranding and implement changes without much headache.

Conclusion

Building a solid brand is a journey, not a destination. And like any journey, it comes with its share of risks. By being aware of these potential pitfalls and taking proactive steps to mitigate them, you can safeguard your brand and pave the way for long-term success.

Need help navigating the branding landscape and avoiding costly mistakes?

We’ll work closely with you to understand your business goals, target audience, and competitive landscape and create a customized branding solution that will set you up for success.