Trump Brand Gets Trumped By Trump

By Jacqueline Verrilli

Has Donald Trump Permanently Damaged His Brand?

Branding.  It is the one thing that keeps all cans of corn at the grocery store from being identical commodities.  There is little reason to pay more for something that doesn’t provide greater value to a consumer, but pretty packaging, particular words, and carefully chosen imagery do provide value.  Economists and business leaders know this.  Luxury branding is particularly risky because the products must meet the expectations of very discerning individuals who have time to complain, the money to purchase other luxury items, and the power of personal connections to destroy the brand with one off-hand comment at a board meeting or golf outing.  Personal branding is something that is becoming more and more ingrained in society as we all try to find ways to differentiate ourselves from our coworkers and other job applicants.  Most of us use resumes to denote our education, certifications, skills, and talents to try to convince an employer that we will do the job better than all other comers.  But Donald Trump uses his own name to denote his luxury brand of golf courses, home goods, commercial real estate properties, and himself.   As he becomes the target of boycotts across the nation and around the world how will Trump fare as brand?

On July 16, 2015, Donald Trump announced that he would run for President of the United States of America.  Since then he has attended debates and created press opportunities that have substantially increased his following and have established support for his candidacy.  But along the way, he has made statements that have alienated and insulted entire potential constituencies including the Latino community, people who identify as Muslim, women, and intellectuals.  In the world of instantaneous information transmission, and a world market full of people hungry for news, the words that come out of a celebrity’s mouth quickly become a part of the portrait of who they are.  In Donald Trump’s case, with his image so enmeshed with the value of his businesses, his eagerness to get publicity at any cost may in fact cost him more than he anticipated.  As of this moment, a major middle-eastern retailer has removed Trump products from its shelves at the request of its customers.  A Dubai-based luxury property developer, DAMAC Properties that is building on behalf of Trump, is facing tremendous pressure to cut ties with his organizations.  Numerous calls for removing the Trump name from billboards and buildings have been circulated on social media such as Twitter, Facebook, and Instagram.  Business leaders across the world are distancing themselves from Trump.  IdeaWorks is a respected travel consultancy, and in emails to members of the global travel industry, its president, Jay Sorenson, vowed to boycott Trump properties and is calling for colleagues to do the same.  Sorensen said he expects that the national and global response to Trump’s remarks “truly will penalize the finances of the Trump hotel brand.”  In the New York Times today, reporter Christopher Reynolds interviewed Alan X. Reay, president of Atlas Hospitality Group.  Mr. Reay suggests that licensing deals involving the Trump name may soon start to unravel.

“Alan X. Reay said he imagines big trouble behind the scenes at the Trump hotels.  If you’re the manager of a hotel that’s operated by the Trump organization, ‘I don’t think there’s much that you can do,’ Reay said.  But in situations where other investors and hoteliers have paid to use the Trump name – “there’s going to be huge fallout from that … You’re obviously paying to drive business toward your hotel, not drive it away.”

And according to CNN Money, an “influential Arabian Business magazine on Tuesday published an opinion titled: "Time for Gulf firms to review their links with the toxic Trump brand."

At this point, I would guess that it is highly unlikely that Mr. Trump will be able to mount a new TV series given that most major media outlets will also wish to distance themselves from him.  And his access to banking resources is likely to dry up quickly for similar reasons.  It seems that Mr. Trump, having become overly focused on a goal of raising awareness of his personal name for political gain, may have created a financially disastrous situation for his businesses.  Forgetting that you are an international businessman whose name is inextricably linked to the value of your companies is bad business.  Perhaps "The Donald" should have taken a refresher course in Global Marketing.  The rest of world should learn this very valuable lesson: your name is your brand, don't tarnish it.