Brand Aid, 2nd Edition

21

common brand problems

Awareness of the problems and pitfalls that brands can encounter is an important step in maintaining a strong, healthy brand.

Problem 1. The cumulative result of gradually and incrementally decreasing product or service quality to reduce costs

Analysis. There is the old story about each new brand manager of a coffee brand improving brand profitability and his or her promotion potential by slightly reducing the ratio of premium Brazilian coffee beans to the less expensive African beans. Each time, consumer research indicates no discernable difference in taste or preference, but one day the company discovers that its coffee brand share has significantly eroded. Brand quality erosion may not be discernable in the short term, ...