Assertion (A): Every year a large number of new brands fail and thus die.

Reason (R): Brands survive only when they have functional value.

(A) Both (A) and (R) are true.

(B) Both (A) and (R) are true, but (R) is not the correct explanation of (A).

(C) (A) is true, but (R) is false.

(D) (A) is false, but (R) is true.

Correct Ans: (A)

Explanation:

Many new brands enter the market every year, but only a few survive. The competition is intense, and consumers have numerous options. Brands that fail often lack strong positioning, market understanding, or effective marketing strategies. Without a clear unique selling proposition (USP), they struggle to differentiate themselves.

Additionally, branding is not just about functional value. While a product must serve its purpose effectively, emotional connection, brand perception, and customer experience play crucial roles in success. Many brands with functional value still fail because they do not establish a strong identity or fail to meet consumer expectations.

Marketing strategies also impact a brand’s survival. Poor advertising, weak distribution networks, and ineffective customer engagement contribute to failure. Furthermore, pricing strategies and adaptability to market trends determine long-term success. Even well-funded brands collapse if they do not continuously evolve.

Both the assertion and reason are true. Many brands fail each year, and functional value is essential. However, functional value alone does not ensure survival. Strong branding, emotional appeal, marketing strategies, and adaptability are equally important. Brands that integrate these elements effectively have a higher chance of thriving in a competitive market.