Do you really want brand icon status?

Brands become iconic when their products are consistently excellent and consumers cannot imagine changing to an alternative brand. This level of customer loyalty is the goal of many businesses, but as big brands such as Coca-Cola and Huy Fong Foods have discovered, there are risks involved in attracting this level of icon status.

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Risks

Unstable economic conditions, unseasonal weather patterns, and complex logistics supply chains can all play a part in product scarcity. For many businesses, if a particular ingredient or component is unavailable, they will source an alternative and their customers will be entirely unaware of it.

However, when a brand, particularly a food brand, has an iconic product, changing an ingredient can be a very damaging move. Consumers will instantly notice that their favorite product is different and feel betrayed. They may call for the return of the original product, discount alternatives and even boycott the brand if their preferred product cannot be restocked.

Indeed, it is often better for the brand to publicize shortages or absorb additional costs than to incorporate alternative ingredients because it helps retain customer loyalty. Scarcity of ingredients is often the moment when the level of attachment customers have for a particular brand is revealed.

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Why do consumers become so attached to a brand?

There are many reasons consumers become attached to a particular brand. Often, it's a sense of loyalty because it is the brand that their parents and even grandparents have always favored. In this case, buying that brand creates a feeling of comfort and familiarity, eliciting positive emotions and a sense of connection.

In others, it is because they value the consistency of that brand's products. They may have tried alternatives and found them lacking but know what to expect from their favored brand. This preservation of brand identity is essential for maintaining customer loyalty, and this demographic is most likely to be disturbed by any change to the ingredients in their favorite products.

Finally, some customers develop a brand attachment due not only to the products they source from it, but also the rewards they gain from it. Some customers select the brands they support based on a set of shared values, while others choose a brand to benefit from loyalty programs and discounts. This set of customers is least likely to break their loyalty when a brand changes its products or ingredients, as long as the brand communicates openly and honestly with them.

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In conclusion, businesses that have developed brand icon status have to work exceedingly hard to maintain standards. They must implement proactive measures to protect their supply chains and may be at high risk of incurring additional costs to source specific ingredients rather than switching to cheaper or more readily available alternatives where market conditions dictate. Most importantly, they must maintain transparent and honest communications with their loyal customer base. Businesses that accept and overcome these risks can reap impressive benefits.