The following article is based on my own interpretation of the said events. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post.
Aayush Sharma, MBA 2015-17, Vinod Gupta School of Management, IIT Kharagpur
PART I – BACKGROUND
In any typical product’s life cycle, there comes a time when it has to face stiff competition or, in general, has to face adverse market conditions. These are generally the defining moments of the parent brand, when just like a human, it tries to find answers relevant to its own existence.
Sometimes, the past achievements help it pull out quickly, but many times a vicious cycle may ensue leading to brand value erosion permanently. Brands may perish as a result of this testing. Kodak1 is one such example. HMT watches2 also had its last lot of 5500 watches produced recently.
In the present scenario, there are brands which are again trying to build back their trust in the customers. Volkswagen3 is a prominent example in this category which is still recovering from a disaster of ethics which it embroiled itself into.
The reasons for failure of big brands can be many. They can range from lack of foresight for judging upcoming trends, unforeseen increase in competition and not heading to true customer needs among others4.
However, in the due course of time, some brands have proved their resilience. These brands are discussed in the next write-up.
- The Guardian’s detailed analysis of Kodak’s demise and how it could have been averted (Jan 22, 2012)
- Times of India article on the last lot of HMT watches (Jan 7, 2016)
- One of Volkswagen’s revamped ad campaign (started in late 2015)
- Detailed reasons for brand failure