Out of the Box

A ‘Trumped’ Image is Worth its Weight in Gold

By Menachem Lubinsky on July 30 2007

You may have caught the announcement recently that a new line of furniture was launched under the Trump brand. This new furniture is for people who wish to experience a bit of the lifestyle of Donald Trump, the real estate and hotel mogul who marketers say is one of the icon brands in American life. I recently bought a Trump belt, which is only one part of his extensive line of men’s clothing bearing his name and logo. The marketers say that his name may be worth more than some of his failed investments.

Mr. Trump himself says that he is very selective in where he allows his name to be used: “If I were to put Trump on everything that came my way, from potato chips to paper clips the power of my name would be diluted. I’m very demanding and selective about where that name goes. And I always try to make sure the letters are in gold.”

Trump is right. He does have to be selective so that the value of his brand remains at a premium. It may be very tempting to put his name on everything in sight but the brand would not be nearly as coveted as it is today. After all, good brands drive a significant amount of business, particularly in consumer goods. Other brands that are associated with quality also carefully select the product line that bear their logos.

What is it that would drive consumers to select goods with the Trump name over any other lesser known but perhaps of equal or better quality brand? Despite the fact that Trump may not be the poster boy for having never failed and for living his life in accordance with the highest moral and ethical standards, he projects an aura of success. People see his name on buildings in major cities and he is one of those American family names that conjure feelings of reverence.

Surveys show that Americans associate quality with brand names. They tend to buy brand names for everything from food to automobiles because of a perception that the quality is superior. Most importantly, they are willing to pay for the brand, just because it makes them either feel more secure with their purchase or elevates their status in society.That is why people like Trump have to be cautious that the goods they put their brand name on are of the highest quality. If my belt was to fall apart or otherwise fail the quality test, I would be less likely to ever again buy a clothing item with Trump’s name. On the other hand, if I will be satisfied with the purchase, I would be more likely to select another item with the Trump brand. And it all adds up to profits and more profits.

Some marketers say that the brand need not reflect a sterling character. Marketer B.J. Cunningham in fact said that Trump followed three major principles of branding: 1. Take a polarized position. 2. Make enemies. 3. Create tension. It appears that Mr. Trump is seeking to capitalize on his brand name in every way possible. The Toronto Star recently reported that “Donald Trump will be speaking for the Learning Annex in Toronto next weekend. He will be paid $1.5 Million for his presentation. That has got to be a record.”

I have often counseled that a successful brand need not be in the caliber of a Trump. We all know of stores, restaurants and even doctors and lawyers who clearly seem to be the brand for a given category. They very much follow the principles that are working for Trump: (a) They project an aura of success; (b) They make sure that their quality is consistently good; and (c) They are selective in targeting their niche market.

A retailer of bed and bath goods in Brooklyn could not get his customers to stop comparing his goods to those found in a popular chain selling the same goods. They compared quality and prices and constantly used the chain’s ads as leverage to deep discount his goods. Although the store was known for its off brand goods and discounted prices, it felt like it was constantly competing against the chain, that was until he created his own brand, under the name we’ll call Sara’s Linens. The store put up huge banners with the brand name and photos of a woman, obviously “Sara”.

Within 3 months the Sara’s brand was outselling his off brands and since the chain did not carry the brand, there were no more comparisons. The power of the brand is enormous as the Brooklyn retailer found out.

Branding is a game that everyone can play as long as the basic ingredients are in place, namely quality, consistency and presentation. Jet Blue became a brand in discounted air travel and managed to survive a winter storm fiasco that resulted in the demotion of its founding chairman. But it survived nonetheless when the airline subsequently lived up to its branded name. That’s what makes a good brand so special. Donald Trump is obviously hoping that his brand has the endurance and value that will make it very special and survive whatever ups and downs are ahead of him.

Out of the Box is a collection of strategic marketing articles that Lubicom has published on various topics, trends and ideas in the marketing world. The articles have been published in the Hamodia weekly newspaper circulated on three continents to a readership of well over 100,000.

The name, "Out of the Box" is a term used frequently in business nowadays to describe creative thinking that is not the norm. It is meant to help a business pull away from the pack or separate oneself from the competition. It is to some extent fraught with risk, simply because it is not the run of the mill thinking, but it is at the same time the key to reaching the next opportunity.