Hollis (2008) outlined that few people understand what a brand is. Hollis explained branding
beginning with what it is not. A brand is not a business, trademark, corporate identity or a
veneer to be supplied to or ignored by the business. A definition supplied by Feldwick (2002)
defines a brand as a collection of perceptions in the mind of a consumer. If a brand is a
collection of perceptions, then one could logically say that brand management is perception
management. Managing perception is not considered an easy task, thus brand management
can be considered a challenging aspect of growing and maintaining a business.
To further understand brand management, eight associations are analyzed (Hollis, 2008).
Product characteristics, places and events where the product was used, product price,
product characteristics, the type of people who use it, and a product’s perceived value all
contribute to defining a brand. Brand association tends to be related to the rational and
emotional benefits consumers have; positive associations with brands influence consumers
to buy and become loyal consumers. Positive associations come from creative and ingenious
marketing, which strengthens the brand and reinforces positive associations.
Hollis (2008) extends Feldwick’s (2002) definition of brand by adding that a brand is not just
a collection of perceptions, but a set of perceptions that are shared and enduring in the
minds of customers. In order to build and maintain a strong brand, organizations must invest
in marketing that creates a unifying theme, creates and repeats positive associations, and
identifies the right touch-points with the consumer. Hollis outlined that ultimately,
consumers do not over think their brand choices and to create brand value, organizations
need to create clear, concise, and positive associations at all consumer touch-points to
influence buying behavior.
Another aspect of brand management is global brand management. Having a global brand is
more than having a wide geographical footprint (Hollis, 2008). Experts once believed that to
take a brand global it must be standardized; however, standardization has not proved to be
a factor in global brands. Coca-Cola, for example, has focused on a balanced strategy that
recognizes differences between markets but takes into account opportunities for economies
of scale. Hollis outlined that there is no single recipe for global brand success.
Hollis (2008) defined a global brand as, “one that has transcended its cultural origins to
develop strong relationships with consumers across different countries and cultures” (p.26).
With this definition of a global brand, global brand management would focus on not only
creating a set of shared and enduring perceptions but also managing those perceptions to
transcend cultural origins and develop strong customer relationships.
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Global Brand Management: Nike’s Global Brand – Larson 3
Nike started out as Blue Ribbon Sports (BRS) launched by founders Phil Knight and Bill
Bowerman in 1968. In 1972, BRS changed its name to Nike, the Greek goddess of victory.
Nike, located in Beaverton, Oregon, United States, is a manufacturer of sportswear and
equipment and the leader in athletic shoes and apparel. Nike had $19.2 billion in revenue in
2009, which was a 3% increase over 2008. Nike launched its widely recognized and
successful logo in the 1980s, referred to as the “Swoosh”, and has used it consistently on all
of its products and apparel (Nike, 2010).
Nike owns other brands as well including Converse, Cole Haan, Hurley International, and
Umbro. These brands contributed $2.5 billion to Nike’s $19.2 billion 2009 revenue. Nike
plans to grow these brands as well as invest in Nike as a global brand (Nike, 2010).
Building a Successful Global Brand
Hollis (2008) used the BrandDynamics™ Pyramid to describe a customer’s relationship with a
brand. The pyramid has five levels: presence, relevance, performance, advantage, and
bonding. An understanding of the pyramid provides context when analyzing the history,
growth, and sustainment of a brand.
The first level, presence, refers to the customer awareness of the brand through use of the
products, someone they know has used the products, or the customer has achieved
awareness through other means. The second level of the pyramid is relevance; customers
reach this level because they believe the brand provides value. The third level of the pyramid
is performance; customers at the performance level believe the brand is delivering on its
promises. The fourth level is advantage; at this level customers believe in a rational or
emotional benefit derived from the brand. The last level is bonding where customers believe
that the brand is the best one for them (Hollis, 2008).
Hollis (2008) provided five steps that can be used to evaluate the ingredients in building a
successful global brand. However, before an organization can focus on the five steps of
building a successful global brand, Hollis outlined foundational aspects that need to be in
place first. An organization must have a scalable and efficient business model, meaning that
an organization must be able to produce, distribute, and sell its products or services
efficiently. Another foundational aspect is innovation; not that an organization has to be first
at a new product or service, but to stay in touch with the latest trends and create products
and services accordingly.
Once an organization has its foundational aspects in place, Hollis (2008) outlined five
components required for a successful global brand: a great brand experience, clear and
consistent positioning, dynamism, authenticity, and a strong corporate culture. A great
The ISM Journal of International Business ISSN: 2150-1076, Volume 1, Issue 3, July, December 2011
Global Brand Management: Nike’s Global Brand – Larson 4
brand experience refers to a customer’s perception of service and value. Clear and
consistent positioning refers to the messaging of the brand; organizations are consistent
with the marketing messages and stay away from confusing the customer base. Dynamism
refers to producing trend-setting products and being a leader through communication and
actions. Authenticity refers to a brand’s origins; customers respect a brand that has stood
the test of time. A strong corporate culture refers to one that has a passion for its customers
and meets the needs of its customers.
The McKinsey Quarterly reported on Nike’s brand power in 1997, “Nike raced ahead of the
pack by exploiting its brand power to move from sports footwear into athletics clothing,
turning itself into a symbol of fitness and well-being. It then went several steps further,
positioning itself as an athletic lifestyle company which, by using celebrities such as the
basketball star Michael Jordan and the golfer Tiger Woods to endorse its goods, enabled
customers to identify with the lives of their sporting heroes. Today, the company offers
innovative and stylish products, backed by marketing that combines traditional advertising
with imaginative schemes to build basketball courts in inner cities and donate free Nike gear
to high schools” (p. 24).
Court, et al. (1997) combined the attributes of Hollis’ (2008) pyramid and five steps in
building a successful brand and outlined that to build global brand power, a brand needs
three basics – alignment between communication and delivery, consistent delivery, and
distinctive product – and personality and presence. Court, et al posited, “Nike brings
together celebrity endorsements, creative advertising, and innovative local marketing to
build a complex personality that couples an aspirational overachiever ethic with a notion of
community service” (p.33). Clearly Nike has been working at investing and growing its brand
for many years.