It is a progressive loss of brand integrity due to weakening of essential brand elements. It also includes losing the respect of consumers and consistency of the brand. It is a gradual process. For example, a number of US airlines are facing brand decay since years.
Here are some most important reasons of brand decay −
● Company fails to manage strategies, create new value, and acquire new customers or new marketplaces.
● Company treats the brand merely as a static asset than as a medium to create customer value.
● Customer expectations are more than what a brand can deliver.
● Presence of issues in brand equity building.
● Company palms off brand-customer relationship on customer service department.
● Company halts innovations in products or services. The worst part is, customers start suggesting innovations.