We are exploring the 40 Most Common Brand Problems. Did you happen to read about Union Products closing its doors months shy of its 50th anniversary? The fate of the company known for starting the ‘pink flamingo lawn ornament craze’ of the 50’s is a recent example of what can happen as a result of Common Brand Problem Number 8…
Common Brand Problem Number 8: Failure to extend the brand into new product categories when the core category is in decline
Analysis: “It is our core category—our ‘cash cow.’ We must focus all of our resources on preserving it.” Sound familiar? It is one thing to prematurely walk away from your core category. It is yet another to myopically focus all of your organizational resources on a flat or declining category in the misguided hope that you may be able to revive it, especially if you are not trying to radically redefine or re-engineer it.
Key Point: Know when it is time to “quit” (that is, when it is time to do no more than maintain and “milk” the core category while reinvesting the profits in new, more promising ventures.) Often, realistic financial projections are the best “wake-up” call in these situations.
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Branding Strategy Insider is a service of The Blake Project: A strategic brand consultancy specializing in Brand Research, Brand Strategy, Brand Licensing and Brand Education
