The loser brand
September 1, 2016
How do you destroy a brand? How does someone cause irreparable harm to their namesake brand? We may be witnessing this in live time. We are about to see whether Donald Trump is not only on his way to losing the presidential election but also whether, in the process, he has taken a wrecking ball to his company’s brand.
Many of the most powerful and enduring brands share the name of their founders: names like Kellogg, Proctor, Gamble, Johnson, Disney and Dell. Other business leaders, like Steve Jobs and Richard Branson, recognized that even though they didn’t share their name with their companies, they were the personification of their brand.
The Trump brand is built around one individual: Donald J. Trump. (Daughter Ivanka’s brand exists, at the moment, as essentially an extension of her father’s.) The attributes and personality of the Trump brand are his attributes and his personality. The aura he built is the brash billionaire who wins, always. Everything is about winning. The Apprentice and Celebrity Apprentice revolved on who he would select as the winner. And to the winner goes the spoils of victory, the best, the most luxurious, the most expensive, everything is super-premium. (Even his wives, according to his statements, could be viewed as trophies: to the winner goes the most beautiful, the most glamourous woman.)
Over the past several years, the Trump brand’s income has derived less from their own properties, than from income by licensing the name to others. This includes everything from hotels and condos, to a variety of products and services (such as home furnishings and men’s clothing).
What would be the fallout of an election loss, and at the time of writing, of potentially a “HUUUGE” loss? It is easy to guess that the brand will lose much of its appeal.
Will a potential buyer of a multimillion dollar condo residence care if the Trump name is on the building? How likely will it be that a developer will think that there is an advantage, and be ready to pay the fees necessary to have the letters TRUMP on their building? Would companies want to invite their clients/employees/guests to stay and attend a conference in a Trump hotel or enjoy a round of golf at a Trump golf course?
Above: People participate in the “Stand Against Trump” march organized by a group of Cleveland doctors on July 21, 2016, the final day of the Republican National Convention.
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Naming your company after its founder has been, and can be, a very effective strategy to build a strong brand. And the CEO is, or should be, the chief brand champion. When the CEO – whether it’s Richard Branson, Jack Welch, Warren Buffett, Steve Jobs or Oprah Winfrey– is viewed as the embodiment of their brand, he or she lends the brand its vision, voice, credibility and trustworthiness. The brand is authentic when the CEO is the face of the brand.
What happens then, when the brand’s namesake and CEO is Donald Trump?
There is no question that a certain segment of the public supports him and will continue to buy Trump merchandise, frequent his hotels and golf courses, and live in Trump residences. However, just as his base of support may not be substantial enough for a political victory, it may also not be enough for the continued success of the Trump brand.
After the dust has settled from the election, will NBC be eager to welcome him back as the star of Celebrity Apprentice? After a crushing loss to Clinton, will the American right embrace a new conservative network that some are speculating Trump will launch with buddy (ex-Fox CEO) Roger Ailes and new campaign hire, Stephen Bannon (from the far-right Breitbart.com)? Or are we more likely to see him selling Trump merchandise on QVC?
We’ll see.
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