Would you buy tea from Nike? Or shoes by McDonald’s?
Sure one might think Nike doesn’t have the facilities, operational know-how, etc. to make tea. With the vast majority of its manufacturing overseas, Nike is more of a design and marketing firm than a shoe manufacturer, according to a Harvard Business Review article.
Getting back on point, Nike can’t sell tea because of branding.
What is branding?
Branding is the personality of the company. This “personality” helps determine what the company sells (it can be more than one or even a few things), where it sells them, how much they charge, how their ads look, etc. In a previous post, I mentioned how Redbull had an event called the Flugtag and that it’d be difficult for Lipton to hold a similar event. This is because an event where people dress up and launch a home-made contraption off of a pier does not fit Lipton’s brand image.
One brand that has crossed more product categories and demographics more than any other is Hello Kitty. Beyond clothes and accessories, there are Hello Kitty branded motor scooters, toasters, airlines, and adult novelty toys (although this might not be an official Sanrio licensed product). Yet another addition to the roster is Hello Kitty Beer. Is there nothing this kitty can’t brand?!
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