Because many consumer brands have been around for 100 years or more, it is easy to assume that they are immortal, churning out cash for their owners through thick and thin. But this is not the case. We are all prone to survivorship bias: the human tendency to forget what has disappeared from view. Brands that are eclipsed by something better, or disappear due to regulation or people’s changing preferences, may linger as a nostalgic memory, but their phenomenal success is forgotten.
How do you define a brand? A popular definition is a product, service or concept that is distinguished from competitors in the minds of consumers by its name, qualities and reputation. This implies that it can command a premium price. Many businesses, such as shops, airlines and cars, achieve brand recognition but struggle on that last test or, as in the case of petrol stations, fail completely.