Welcome to segment Cross Industry Branding which is part of the branding strategy module. In this segment, we will learn what is Cross Industry Branding, how to approach it, and what the benefits and costs are. So let's get started. And this is where we should start, again, because CCCI, which stands for Cross Country Cross Industry Matrix, is showing us the roadmap of how we can grow. And so we can grow, of course, horizontally, as we saw in another segment, but we can also grow from a vertical dimension in terms of going from one industry into another. And we learned about Apple, not only being in electronics, but wanting to be in automobiles. So if that happens, so what does Apple call itself? So it's easy for them to call itself Apple in all electronic products but when they go into something vastly different, should they still call themselves Apple? So that is the question we're getting at in this segment. And therefore Cross Industry Branding is about branding across industries and it is a type of Noon Nopi. Because I think we tend to equate Noon Nopi only with culture and therefore in a sort of cross cultural or cross country sense. But even within a country, you have cultures in terms of how one type of consumer buys electronics and another type of consumer with their culture buys a different type of product. So cross industry is another form of Noon Nopi. And let's think about Starbucks again. So this may look very familiar. And we can think about Starbucks from a CCCI standpoint from them going from the US to other regions and that would be cross-country. But here, Starbucks has this very broad, overarching vision to inspire and nurture the human spirit. Note that there is no mention of coffee. They can do that of course with coffee, but they can do that with other products as well, non coffee products. So we know that they're experimenting with alcoholic beverages, so in some stores in some countries they sell not only beer but they also sell wine. Well, in that case, what do they call those products? So for example, if they wanted to make a premium wine, should they call it Starbucks? And we know that, for a lot of consumers, their perception, their Noon Nopi is firmly ingrained with the connotation that Starbucks means coffee. Will that translate to wine? So should they call it Starbucks, or should they call it something more wine sounding like Romaneeusbucks. Of course, Romanee may have something to say about that, but again, Romanee, of course, is a very expensive French wine. So therefore, in terms of communicating the type of product and image that Starbucks wants with this new product will be better with the latter brand. So this is a very short checklist a company may consider when they think about extending brands across industries. And it has, of course, start with their vision, as we saw with Starbucks, and their strategy. And especially at the consumer level, we have to know what the consumer thinks. What their perceptions are in terms of branding things identically but conversely branding things in a very individualized way. Also, even here, you may have legal restrictions in terms of what you can brand in another industry. And lastly, of course, here too, you have to balance the pros and cons of extending your point. So some examples, we know that Amazon, even maybe more so than Apple, has a very over arching vision to be earth's most customer-centric company. Before it meant being an online retailer, but you can be customer-centric not only online but also offline. And Amazon is something very wide, that's what it equates to, that's what it connotes. So in terms of offering not only online but offline delivery, but also home storage monitoring systems. They can still call it Amazon. And delivery systems, they can still call it Amazon. Of course, they sub-brand it with the Fresh and Dash, and maybe being part of customer-centric is to have a smart phone so they sub-branded that Fire. So again, Amazon is something that they can use in these broader domains of products because they're still consistent with this customer-centric vision that they have. Some have, of course, succeeded better than others, but again, I think their philosophy is something that we can compliment. Compare that with these more Noon Nopi individualized, customized branding examples such as P & G and SK II. Believe it or not they belong to the same company. And yet the image conjured up by P & G and the image conjured up by SK II which is a very, very expensive skincare line is very, very different. In fact, SK II, because it has Japanese origins, even from a regional standpoint, will convey a different kind of Noon Nopi. Frito Lay, it's an, of course, a lot of different food products. But again, here to Doritos and Lays, they target different consumer, they have different positioning, and it's reflected in their different brand. And lastly, another cosmetics example, you have Estee Lauder which owns a lot of brands. It's a house of brands, not only Estee Lauder, but Clinique and Bobbi Brown and Teal, but also Zegna fragrances as well. Again, many different brands, many different images, many different segments. So here is where individual brands are much more effective. So, we have to think about the pros and cons, the benefits and costs. And there are many to speak of, both on the benefits end as well as on the cost end. But we want to make sure that, again, we make the right judgment in terms of which is greater. Is it the benefits that enable us to introduce new brands more effectively and easily. In some cases, if the offshoot brand works well, it can boomerang back and help the parent brand, so there are definite significant benefits. But as you can see there are many, many costs involved as well. And first and foremost, it may confuse buyers, if you are into too many industries. If you're making B2C products, but also B2B products. Again, the kind of image that you want to present to your consumer may be very difficult to unify. So, summing up, global branding, cross branding, is part of the CCCI matrix and it, of course, has to start with a corporate vision. And as we just saw, they're many benefits that stem from brand extension across industries, but there are many costs involved as well. And therefore, if it's latter, I think you should think much morecarefully about extending your brand.
