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5 Startup Tales of Branding That Went Horribly Wrong in India

Discover how notable Indian startups suffered from branding blunders, failing to resonate with audiences and losing market relevance. Read our expert insight at Cpluz.


4 min readCpluz

5 Startup Tales of Branding That Went Horribly Wrong in India

Branding is the backbone of a startup's success story in today's cutthroat business world. Create meaningful brand-consumer connections through innovative design is the very mantra that Cpluz (cpluz.com), a renowned brand since 1993, lives by. However, there are countless other startups that succumbed to the perils of inadequate branding, leading to dismal results. Let's uncover the tale of some brands that failed miserably in branding and serve as valuable lessons for future entrepreneurs.

The Aggressive Ambition of SpiceJet

Ever wondered how a brand can assure several things about its business model and still spectacularly flop? SpiceJet, India's no-frills carrier, will be an ideal example. The airline aimed to disrupt the traditional airline model, convert budget flights into holiday packages, and wean passengers more dependably towards packaged holidays. The airline thought that by moving aggressively into the holiday business, they could sidestep not only the competition but also the money-losing ticket sales. However, this brave move only fetched them bitter results, eventually functioning under a temporary managerial structure. The aggressive supplementation of two business lines proved immature and ended the airline into crises.

Myntra's Heraldry of Failure

Myntra, India's e-fashion powerhouse, overlooked one critical detail – a functional user interface. Back in 2014, Myntra decided to go app-only, a monumental blunder that put the business on the brink of collapse. The now-extinct web platform collapsed due to this. This major branding decision intended to force conversions but ultimately found its doors closed as customer traffic dwindled drastically. This ultimately led to the firm diverting necessary funds towards addressing the UX issue.

The Untimely Exit of Foodpanda

Foodpanda's Disastrous Descent

Despite the sprawl of food ordering in India, Foodpanda decided to take the drastic step of shutting down its India operations in 2017. This involved parting ways with its significant stakeholders in the subcontinent. With a range that was limited, delivery issues and high commission rates - Foodpanda gained the ire of its clients. In a strange twist, while their competition adapted, a perpetual pricing strategy motivated customer alarming dissatisfaction. This easily transferable technology industry malady has served as a cautionary tale for various e-commerce startup in providing holistic customer experience.

The Long-Lasting Legacy of Tinystep

Tinystep, a mothers' community application created by BabyOye's Sameer Gaur, notoriously advertised itself in the wrong hangout zones, quite literally. The immensely far-reaching decision of renting hoardings in adult-oriented lounges each placed foram for branding breached the unbiased nature of the product. Tinystep's poor branding couldn't play a strategic role in gaining holy ground and positioning them comprehensively in reaching the right mothers. Amid widespread public outrage, the application rationalized to host a brand repositioning campaign gradually learning from its mistakes to adapt brand rebuilding methods.

Yebhi's Efforts in Selling Spirit, Not Soul

Yebhi.com, leading e-commerce player, once clothed the fashion industry on the back of an aggressive sales strategy. like Tinystep, an impression was created of them being an hyper-aggressive business vertical. Fanning its online reach, they effectively malfunctioned in creating any legitimate brand story. Their predecessors went the wrong way by gamer talk – directly scaring away users and encountering off terminology. Getting success through super-exciting sales isn't necessarily chinking and provides weak physical brand experience, causing harm to long-term customer retention and offering timid promises. End of April 2016, they decided to stall India operations in favor of Thailand and continues to flourish their firm.

Conclusion: Growing Beyond The Failure

Failure becomes the soul of success and can create a defining factor for an entrepreneur. However, the strategic mistake should best channel as lessons learned for branding each time. Learning as much as possible from the failure will prepare you for an aggressive stance and strategic steps towards making the best decisions. Remember, the solutions won't create immediate results, but at Cpluz (cpluz.com), we understand that gradual progress, empathy, and maintaining a heart for customer experiences drive profitable business. We can help transform your business identity and propel your brand to the next level. Look no further than our solutions at info@cpluz.com or explore cpluz.com to experience the visual and branding transformation your startup warrants.