Global Brand Management and Nike

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.

The ISM Journal of International Business ISSN: 2150-1076, Volume 1, Issue 3, July, December 2011

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.