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7 Types of Brand Risk

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Brand risk is the potential for a valuable brand to lose value or a new brand to fail in the market. This can be managed with a standard process of risk management whereby risks are identified, treated and monitored. The following are common types of brand risk.


In the long term, your brand image and reputation will reflect your values and behavior as a firm. Any gap between how you want to be perceived and how you actually behave as a company is a risk.


Brand recognition is the ability of target customers to recognize your brand from its visual symbols such as corporate colors, logo and products. This can decline due to competition or a redesign. For example, a competitor may adopt similar colors and product designs that cause recognition to decline.


Brand awareness is the ability of your target customers to associate your brand with a product or service type. For example, the brands of bicycle tire that bicycling enthusiasts can name. This can decline due to competition or ineffective advertising and promotion.


Brand positioning is the unique value and image of your brand in the minds of customers. For example, a particular brand of tea might position itself as the affordable organic tea. Competition can cause a position to erode as other firms take a similar position.


Brand legacy is the history of your brand. This can be positive such as a luxury brand with hundreds of years of history. It can also be negative, such as a technology company whose brand is associated with out-of-date technology.


Loss of loyal customers due to factors such as customer experience. One bad experience can turn a customer away. Loyal customers can also be lost due to natural attrition as their needs and preferences change.

Customer Perceptions

Brand perception issues such as a luxury good that suffers from the snob effect after excessive discounting.
Overview: Brand Risk
The potential for a valuable brand to lose value or a new brand to fail in the market.
Related Concepts

Brand Risk

This is the complete list of articles we have written about brand risk.
Brand Awareness
Brand Equity
Brand Image
Brand Issues
Brand Legacy
Brand Loyalty
Brand Management
Brand Perception
Brand Positioning
Brand Recognition
Brand Reputation
Brand Risk
Customer Needs
Risk Management
Risk Treatment
Snob Effect
Target Customers
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