Is Brand Dilution Bad For You?Brand360 Logo-150brand360-logo-bluewhite-150Is Brand Dilution Bad For You?
  • SME GRANT
  • WHAT WE DO
    • Brand Design
    • Brand Strategy
    • Marketing
  • WE ARE BRAND360
  • OUR CLIENTS
  • RESOURCES
  • WORKSHOPS
    • Personal Branding Workshop
    • Brand Storytelling Workshop
    • Brand Strategy Workshop
    • Digital Marketing Workshop
  • CONTACT US
✕

Is Brand Dilution Bad For You?

brand dilution
Photo credit: brogan.com

Some people say, “it’s good if you can move from your comfort zone” or “you need to try new things”. Perhaps that is what you plan to do. But it might backfire right at your face.

Do not fret, for this is something companies stumbled upon as well – trying something new and failing. Or in this case, brand dilution. It’s like trying to make an orange cordial – you poured in enough water, take out that bottle of cordial and tried to pour out the content, only to find several drops coming out of the bottle. You ended up with ‘orange-flavored water’ which is neither sweet or tasty. Not good!

What is brand dilution? It is a weakening of a brand through a disorganised brand architecture, and it often happens due to poor judgement on brand extension.

Imagine a simple, small-time brand which is well known for its chocolate beverage (let’s call it Cocoyum), and it is known by its consumers and the community which regularly consumes the said beverage. One day, after having been in the business for over a decade, the owner decides to branch out and do something else aside from selling Cocoyum beverage. He decides to venture into shoes. But after investing and producing thousands of pairs of shoes, the owner discoveres that the Cocoyum shoes were uncomfortable, dull and disliked, even by fans of the beverage. How terrible can the brand Cocoyum be now, thanks to the shoe. And perhaps the one who suggested the shoes should be given the boot instead (pun not intended).

As bizarre as the scenario above sounds, you’d be surprised that some established brands have done similar things in the past. A few of those examples are as the follow:

  1. Zippo The Woman’s Perfume: The brand known for stylish lighters did produce a series of perfume for ladies – with the bottles shaped like lighters!
  2. Dr Pepper Marinade: One of the well known soda brands in America tried to venture into culinary line by introducing the marinade, with hopes that if people would drink Dr Pepper during a barbecue session, they’d consumer meats with Dr Pepper marinade. And they were unfortunately wrong.
  3. Virgin Water Purifier: It’s a plane! It’s a water dispenser! It’s both! An airline company now has its line of water purifier. And this is rarely mentioned again.

While there are times some companies can successfully, others not so. And the worst case scenario is when the failure can pull the company down overnight. Hence, companies need to look at strategies designed to expand brands by extension in order to be warned of dangers of brand dilution.

Any company in such a situation needs to discover what the problem is, identify the root causes and then create a strategy to solve the issues which led to the brand dilution, in order to win back customer loyalty and trust (and perhaps regain market share). Sometimes, when you stand for everything, you risk standing for nothing in the customer’s mind.

Perhaps the best way tackle this issue is to is come back to basics and understand the core function of the brand – its original intention, when it was established. Virgin Group founder Sir Richard Branson (yes, the same company with the water purifier) nicely put about how brands should be realistic about itself. He said, “Too many companies want their brands to reflect some idealised, perfected image of themselves. As a consequence, their brands acquire no texture, no character and no public trust.”

Related posts

March 18, 2020

Value Proposition, the Foundation of Every Brand Strategy


Read more
April 22, 2019

So You Think You Know What Rebranding Is?


Read more
January 4, 2019

Let’s Kill Your Brand Image in 5 Easy Ways!


Read more
Share
Subscribe to our newsletter for social resources
Name
Email address

Step By Step Guides

  • 0
    Christmas Marketing Campaign for Malaysian Businesses: A Complete Guide
    December 7, 2020
  • 0
    13 Killer Social Media Content Ideas to Engage Your Audience: The Ultimate Guide
    October 30, 2020
  • 0
    Planning An Influencer Marketing Strategy: A Step-by-Step Guide
    October 22, 2020
  • 0
    How to Develop A Brand Repositioning Strategy in Malaysia (Including 4 Brand Examples)
    November 11, 2019
  • 0
    Understanding Your Target Audience in Malaysia: An Essential Guide
    May 26, 2019
Is Brand Dilution Bad For You?

We are in the business of helping build real and enduring value for brands through insight, strategy and marketing. We out-think your competition, not out-spend them.
Tel: +6 (0) 3 6272 3299
Email: hello[@]brand360.com.my
 

Privacy Policy | Security Policy | Disclaimer

Recent Posts

  • 10 Ways Blogging Benefits Your Business in Brand Building
  • Squid Game Hype: 7 Ways Brands Create Effective Content Marketing in Malaysia
  • Brand360 Wins Best Website Design Award by Design Rush
  • The Right Choice: 7 Reasons to Apply for SME Digitalisation Grant
  • How To Build A Brand Strategy For Manufacturing Brands From Scratch 🧑‍🏭🏭
✕
© 2022 Brand 360 Degree Sdn Bhd 200701034906 (792935U). All Rights Reserved.