This week several festivities related to death have been celebrated in the world. In the United States, Halloween is celebrated on October 31, while in Mexico, the Day of the Dead is celebrated on November 1 and 2. Regardless of the differences between the form that this anniversary takes in each country or region, one thing unites them and that is the need to remember those who have gone ahead and already left for the other world.
Brands as legal entities or groups of individuals are not alien to this reality. Although we have some that have lasted for decades, such as some companies in the food and personal care products sector, it is also true that many more have not managed to live until today. Some of them are not remembered by anyone and a few are cause for nostalgia. That is why we want to list four causes that can lead to the death of a brand.
- Stop innovating. The world we live in is always in constant transformation. Even in the natural world, beings that do not adapt to their environment are often replaced by more fit ones. That is why when a brand neglects the constant search to improve and change its processes and offer, it is surpassed by others that do and prevail.
- Not having a clear direction. In other posts on our blog we have mentioned that the objective you have when carrying out an action is as important as the path chosen to reach it. If a company does not have a forceful and visible directive that is very clear about the goal to which it wants to take the brand, it is very likely that it will die in the medium term.
- Ignore the target consumer. Every brand must have a well defined who is the person to whom it directs all its efforts. Although there will be some products and services that will be consumed by all people given their nature (as is the case with food), not all of them are aimed at the same profile. By not correcting this situation, many brands have accelerated their process of disappearance.
- Spending instead of investing. When a brand is born, one of the first things it makes sure of is sufficient capital or resources to start the operation. It is not easy to come up with an initial amount, so any expense that is made must be very well justified and aimed at achieving a measurable objective. Otherwise, insolvency falls and with it the end of a company.
Market research is no stranger to this reality. However, thanks to its privileged position, it is able to guide other brands to avoid the steps listed above and correct them. Having a greater and better knowledge of the market and consumers results in valuable data and information that can be the difference between trying to survive or pursuing success.
At Acertiva we have almost twenty years of experience developing market studies in Latin America. Write us today so you can tell us about your needs and we can tell you how we can be your regional allies.