alexa The lure of global branding.
Business & Management

Business & Management

Journal of Accounting & Marketing

Author(s): Aaker DA, Joachimsthaler E, Aaker DA, Joachimsthaler E

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Abstract As more and more companies begin to see the world as their market, brand builders look with envy upon those businesses that appear to have created global brands--brands whose positioning, advertising strategy, personality, look, and feel are in most respects the same from one country to another. Attracted by such high-profile examples of success, these companies want to globalize their own brands. But that's a risky path to follow, according to David Aaker and Erich Joachimsthaler. Why? Because creating strong global brands takes global brand leadership. It can't be done simply by edict from on high. Specifically, companies must use organizational structures, processes, and cultures to allocate brand-building resources globally, to create global synergies, and to develop a global brand strategy that coordinates and leverages country brand strategies. Aaker and Joachimsthaler offer four prescriptions for companies seeking to achieve global brand leadership. First, companies must stimulate the sharing of insights and best practices across countries--a system in which "it won't work here" attitudes can be overcome. Second, companies should support a common global brand-planning process, one that is consistent across markets and products. Third, they should assign global managerial responsibility for brands in order to create cross-country synergies and to fight local bias. And fourth, they need to execute brilliant brand-building strategies. Before stampeding blindly toward global branding, companies need to think through the systems they have in place. Otherwise, any success they achieve is likely to be random--and that's a fail-safe recipe for mediocrity.
This article was published in Harv Bus Rev and referenced in Journal of Accounting & Marketing

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