It is important to protect a brand name, especially when a brand has served clients for a long. Consumer confidence in a traditional market cannot be ignored. Rebranding or transfer of production facilities or even acquisitions can quickly change consumer behavior. Consumers already know the effects of rebranding; Products are redefined and improved. Such fears eat away consumer confidence in the product.
The image of a product can be tied to a specific region or country for a horde of reasons. One is market share. Consumer loyalty in a region, especially where the production takes place, is entrenched in the brand. Factors like employment of locals, social-economic empowerment efforts by the company, and the value of the products play a significant role in conserving a brand name.
Products or brands that have such an effect include bread, milk, shoes, mattresses, and products of similar nature. Due to their benefits, these products have a great appeal to the surrounding communities. Society depends on them on a daily basis. Every family needs a packet or two of milk every so often in a day. The quality of the milk, the cost, and the packaging become a valuable insignia of the product and the community.
Consumers tend to follow what those with experiences say about a certain product. This has been a tradition that makes products and brands become popular. A community praises a product and the word spreads that this product is worth the money.
After a long presence in the market, the brand becomes a regional name. It is foolhardy to transfer production plants of such products from their traditional areas to a foreign environment and reckon that the consumers will be loyal to the products again. This is the case with Wrigley. The company shifted Altoids base to a foreign environment hoping to cash in on diversification of their product range only to end up losing Altoids market share and reporting declining profits.