Skip to Main Content
HBS Home
  • About
  • Academic Programs
  • Alumni
  • Faculty & Research
  • Baker Library
  • Giving
  • Harvard Business Review
  • Initiatives
  • News
  • Recruit
  • Map / Directions
Working Knowledge
Business Research for Business Leaders
  • Browse All Articles
  • Popular Articles
  • Cold Call Podcast
  • Managing the Future of Work Podcast
  • About Us
  • Book
  • Leadership
  • Marketing
  • Finance
  • Management
  • Entrepreneurship
  • All Topics...
  • Topics
    • COVID-19
    • Entrepreneurship
    • Finance
    • Gender
    • Globalization
    • Leadership
    • Management
    • Negotiation
    • Social Enterprise
    • Strategy
  • Sections
    • Book
    • Podcasts
    • HBS Case
    • In Practice
    • Lessons from the Classroom
    • Op-Ed
    • Research & Ideas
    • Research Event
    • Sharpening Your Skills
    • What Do You Think?
    • Working Paper Summaries
  • Browse All
    • Archive

    The Lure of Global Branding - Nov 99 HBR - Building the Global Brand

     
    3/21/2000
    How can a company build its global brand? By strengthening the leadership that builds the brand, not by pursuing an elusive "global brand" itself, according to an article in the Harvard Business Review. Brand leadership, write David A. Aaker and Erich Joachimsthaler, can follow one of four configurations depending on the makeup of the company. In this excerpt, they describe a global brand team drawn from middle management, an approach best suited to companies lacking branding expertise at the senior management level.

    by David A. Aaker and Erich Joachimsthaler

    the lure of global branding

    A global brand manager, acting alone, can be perceived as an outsider — just another corporate staff person contributing to overhead, creating forms, and calling meetings. Sometimes adding people to the mix — in the form of a global brand team — can solve this problem. With a team working on the issue, it becomes easier to convince country brand managers of the value of global brand management.

    Global brand teams typically consist of brand representatives from different parts of the world, from different stages of brand development, and from different competitive contexts. Functional areas such as advertising, market research, sponsorship, and promotions may also be represented. The keys to success with these teams are similar to those for the global brand manager.

    One problem with a global brand team (unless it is led by a global brand manager) is that no one person ultimately owns the brand globally. Thus no one is responsible for implementing global branding decisions. In addition, team members may be diverted from their task by the pressures of their primary jobs. And the team may lack the authority and focus needed to make sure that their recommendations are actually implemented at the country level. Mobil solves that problem in part by creating "action teams" made up of people from several countries to oversee the implementation.

    Some companies partition the global brand manager or team across business units or segments. For example, Mobil has separate global brand teams for the passenger car lubricant business, the commercial lubricants business, and the fuel business because the brand is fundamentally different in each. A global brand council then coordinates those segments by reconciling the different identities and looking for ways to create brand synergy.

    And consider how DuPont handles its Lycra brand. The 35-year-old synthetic is known worldwide for the flexibility and comfort it lends to clothing; its identity is embodied in the global tagline "Nothing moves like Lycra." The problem for Lycra is that it has a variety of applications — it can be used, for example, in swimsuits, in running shorts, and in women's fashions. Each application requires its own brand positioning. DuPont solves the problem by delegating responsibility for each application to managers in a country where that application is strongest. Thus the Brazilian brand manager for Lycra is also the global lead for swimsuit fabric because Brazil is a hotbed for swimsuit design. Similarly, the French brand manager takes the lead for Lycra used in fashion. The idea is to use the expertise that is dispersed throughout the world. The global brand manager for Lycra ensures that those in charge of different applications are together on overall strategy; he or she also pulls together their ideas in order to exploit synergies.

    When local management is relatively autonomous, it may be necessary to give the global brand manager or team a significant degree of authority. Doing so can also reduce the chances that the manager or team will get smothered by organizational or competitive pressures; in addition, it can signal the company's commitment to brand building.

    The team or manager may have authority over its visual representation and brand graphics, for example. In that case, the group or the individual would have to approve any departures from the specified color, typeface, and layout of the logo. Or a global brand team may have authority over the look and feel of a product. The IBM ThinkPad is black and rectangular; it has a red tracking ball and a multicolored IBM logo set at 35 degrees in the lower right corner. The global brand team must approve any deviations from that look. In another example, the global brand manager at Smirnoff has sign-off authority on the selection of advertising agencies and themes.

    While companies are spelling out the authority of the global brand manager or team, they must also make clear what authority resides with the country team. Some aspects of the brand's management will be firm — the definition of what the brand stands for, say — but others will be adaptable or discretionary, such as the advertising presentation or the use of product promotions. The job of the person or group responsible for the brand is to make sure that everyone knows and follows the guidelines.

    · · · ·

    Excerpted from the article "The Lure of Global Branding" in the Harvard Business Review, November-December 1999.

    [ Order the full article ]

    David A. Aaker is the E. T Grether Professor of Marketing Strategy at the University of California at Berkeley's Haas School of Business and is a partner in Prophet Brand Strategy, a consulting firm based in San Francisco and New York. Erich Joachimsthaler is a visiting professor at the University of Virginia's Darden Graduate School of Business in Charlottesville and is the CEO of The Brand Leadership Company, a consulting firm based in New York.

    ǁ
    Campus Map
    Harvard Business School Working Knowledge
    Baker Library | Bloomberg Center
    Soldiers Field
    Boston, MA 02163
    Email: Editor-in-Chief
    →Map & Directions
    →More Contact Information
    • Make a Gift
    • Site Map
    • Jobs
    • Harvard University
    • Trademarks
    • Policies
    • Accessibility
    • Digital Accessibility
    Copyright © President & Fellows of Harvard College