The Disadvantages of a Weak Brand Name

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The Disadvantages of a Weak Brand Name

Poor Consumer Awareness
Strong brand names enjoy a high level of consumer awareness and receive increased attention from consumers. Generic or complicated brand names, as well as those that fail to relate to a product benefit, by contrast quickly slip from memory. Brands such as Starbucks and Apple use simple names and minimalist visuals to remain memorable, while the Purex brand name evokes associations with cleanliness. If your business experiences poor consumer awareness because of a weak brand name, rebranding using an abbreviated version of the name can make it easier for consumers to recall. FedEx began life as Federal Express before rebranding itself with the shorter name.

Limits Expansion
Brands with a strong hold on consumer minds can capitalize on that hold through brand extension. The new products get traction in the market, at least in theory, on the strength of the brand name. A weak brand name that lacks this hold on consumer minds cannot lend strength to a new product to capture market share. Although the new product may enjoy success on its own merits, a business cannot expect a new product to succeed on the basis of a weak brand name.

Diminished Repeat Business
Strong brand names tend to produce customer loyalty and repeat business. Some of this loyalty and repeat business stems from consumer tendency to use familiar brands as a mental shortcut in purchase selection. Weak brands without automatic customer recognition do not enjoy the same status as a mental shortcut for choice and receive less repeat buying as a consequence.

Minimal Brand Equity
A well-established brand takes on a life of its own and accrues brand equity, which creates a financial benefit above and beyond product or service value. Brands such as Rolex and Nike leverage their brand equity to charge premium prices. Some brands create sufficient value that companies include brand value on their balance sheets as an asset. Weak brand names provide little or no brand equity and, in turn, confer no value added onto a product, service or business.


Source: http://smallbusiness.chron.com/disadvantages-weak-brand-name-69640.html