Whenever a company wants to establish itself in the market, it tries to create a strong brand image. Branding gives an identity and image to a company. But if not done properly, sometimes strong brand image can be disadvantageous. Poor management of a brand can lead to alienating the customers.
Creating a strong brand image usually takes a long time and continuous effort. You have to remain in the mind of people for long time, and for that you will have to continuously run advertisements. This continuous need for exposure costs a lot. You will have to keep aside a large amount of money for image building exercise.
Dilution of image
A company may be known for a particular kind of product. For example a company may be famous for its electronic goods. If it now wants to diversify to some other category, say furnitures, the consumer may not be confident in buying this new product. The previous image will come in way of marketing the new product.
Risk of negative publicity
If the brand is not managed properly, or there is an unfavorable incident related to your company, then your brand will suffer negative consequences. Any bad marketing, or massive recall can tarnish the brand image and the company will have to try hard to recapture its place in the market.
A brand can become commonplace
When a brand becomes very popular, and is in public awareness for a long time, it has the risk of becoming commonplace, and loosing novelty. Many people may not buy even new products from this company as every other person may own the same product. Due to this reason a company loses many customers even though its product may be the best.
Wrong perception of cost
If a company publicizes its products hard, and is seen everywhere, few customers may be alienated, as they may perceive the products to be very expensive, even though the products may cost same or even less than the competitor. Thus sometimes too much of hoopla can be counterproductive.
Takes a long time
The process of building a brand takes a lot of time. Sometimes it takes years of hard work and energy to create a strong brand image. Even when the brand becomes known it needs consistent marketing strategy to remain in the eye of the people. One wrong step may hamper all your hard work and you may have to start once again.