Corporate

trump brand

Does Identity Trump Brand?

In reading “How Will Trump Rebuild His Brand? published through Knowledge @ Wharton, we need to think about Trump’s brand and his identity, and how both may affect his upcoming presidency.

It can be confusing when the word brand is used to mean so many different things. Brands convey a promise that people come to rely on. The Trump brand promises ornate, luxurious, exclusive products or experiences at a premium price. It attracts prosperous clientele that are drawn to these qualities and who can afford these experiences. It is an appropriate brand for up-scale products and properties, because it is very well known, and it can command a premium price. Hence the brand has value to properties not even owned by Trump, and for which some product and property owners have been willing to pay a royalty.

Identity is different from Brand. Identity is about the reality of a person or company – who he, she or it really is – where brands are externally driven to appeal to others, identity is inner-driven. Identity flows from the reality of who the person or organization is – their innate driving force. Identity is bigger than brand. The identity of a corporation, organization, individual, or even a presidency may develop several “brands” aimed at different audiences. It can be especially powerful if all the brands stem from or reinforce the identity. The identity of Proctor & Gamble is characterized by a singular drive to provide quality household products that improve people’s lives. This is their driving force, but P&G has many brands (Crest, Tide, Pampers, Gillette, etc.), all shaped to appeal to different external audiences, yet all reinforcing P&G’s identity.

Donald Trump’s identity is more multi-faceted than his luxury brand. Trump’s identity should not be confused with his luxury brand. If Donald Trump’s drive for power is sincerely about populism, uniting the country and creating prosperity for all, and if he delivers on these goals, President Trump will be recognized and appreciated for not just luxury goods and properties. To accomplish his objectives, he may need to create a healthcare brand, a tax reform brand, a foreign trade  brand, and other “brands” shaped to appeal to different audiences. And these brands should all reinforce and deliver on his drive to “Make America Great Again.” If they don’t of course, all of these brands will lose credibility along with the presidential identity.

In conclusion, it is not only possible, but necessary, that a president serve many different audiences, and good branding can help, but the Trump luxury brand alone is not enough. What matters most is Trump’s Identity, who he really is, what he truly cares about and what he aspires to accomplish.

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Bank Relationship

How would you define your Relationship with a Bank?

Timothy Sloan is replacing John Stumpf, as the new CEO of Wells Fargo, due to the bank’s inappropriate and, perhaps illegal, cross-selling practices.  In the October 13 Wall St. Journal, Sloan is quoted as saying,

“I don’t believe that strategy was fundamentally flawed. We are not abandoning our cross-selling focus. Cross-selling is shorthand for growing relationships with our customers.”

This shows a serious misunderstanding of what “relationship” means to Sloan and to the Wells Fargo organization. Only a banker would say that their relationship with their customers is based upon how many products the bank can sell them, whether they need them or not.

A relationship to most people involves some kind of human connection. A positive relationship is one in which people regard and behave toward one another with respect, understanding, and truthfulness. Strong brands are built on individual connections, not financial transactions, but most big banks seem to get this wrong. Perhaps this is why most banks typically rank very low on brand satisfaction surveys – they are focused on the wrong kind of “relationships.”

Wells Fargo and its new CEO need to give some serious thought to what is needed for the bank to truly serve its customers’ needs. They should change their focus on building the bank’s income and instead focus on how customers might define a profitable relationship. That is how we would recommend Wells Fargo make its next efforts to become appreciated, profitable, and to a grow a lasting brand.

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wells fargo

What happens to a brand when a CEO leaves?

The answer is, it depends. On the:

  • Stature of the CEO in the business community
  • Perceived influence of the CEO on the company – good or bad
  • Swiftness with which a respected replacement takes charge

The recent resignation of Wells Fargo CEO John Stumpf could mean one of two things for the Wells Fargo brand:

  • The company is in trouble and his resignation is symbolic of a bigger problem
  • His resignation signals Wells Fargo’s commitment to fixing what is wrong, and is therefore good news

To employees, investors and customers alike, a CEO’s resignation might result in the loss of some trust in the company, the loss of some competencies and valuable connections the CEO acquired while in office, the loss of some institutional memory, and a potentially demoralizing impact on the organization.

However, these consequences may be overridden by showing that the organization has strong principles, that it holds its executives responsible for their actions, and that it is taking steps to prevent similar problems. The departing executive takes the perceived problems of the organization with him, while the new executive starts with a provisional slate.

When our client Boeing had to let its CEO go in 2003, the action created an opportunity for Boeing to reframe its story and deliver a bigger, more positive vision for the company. By drawing attention to a broader promise and a renewed commitment, the loss of a CEO catalyzed the brand’s ascendancy.

In other cases, the CEO embodies the company brand, and his/her departure signals a major change in the brand’s promise. Virgin America is a shining example of this – while Richard Branson was not allowed to be CEO of the U.S. based airline, he was every bit the personality of that brand. The sale of the company to Alaska Airlines, and Branson’s subsequent departure from the scene, has investors and customers very worried about the future of their beloved airline. Virgin America has done its best to reassure customers through communications and consistency of experience that their brand promise is here to stay. Like Wells Fargo, time will tell if they can fulfill that promise.

Our advice to Wells Fargo in this time of transition is to commit to a new story, invest in making a renewed, valuable promise to your customers and deliver on that promise in actions, not just campaigns. Seize the opportunity to make the brand stronger, rather than just hoping this loss of confidence will be forgotten with time.

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It Never Pays to be a Copycat

It Never Pays to be a Copycat.

A recent WSJ Article trumpeted “Copycats Rule the Skies.” It was about how the three largest U.S. airlines have all become so much alike.

Why are the Delta, American and United brands so much alike? Patrick Moynihan, the former Harvard professor and U.S. Senator had a theory called, “The Iron Law of Emulation.” His theory held that nations that competed against each other became more and more like each other. This certainly seems to be the case with our airlines, hotels, banks, etc.

Moynihan pointed out how the U.S. and Russia once emulated each other: We got the bomb, they got the bomb; we got intercontinental missiles, they got intercontinental missiles; we got nuclear submarines, they got nuclear subs, and on and on.

During my 20 years at Landor, we designed the brand and identity strategies for dozens of leading airlines. Our purpose, always, was to differentiate each airline in a way that was relevant, true and compelling. To create a preference or command a premium, we built on each airline’s unique brand characteristics which were often its national characteristics: British Air was about their understated global competence. Singapore Air was about the pride that Singaporeans take in providing personal service. Alitalia was about Italian style. Hawaiian Air was about sunshine, flowers and relaxation. These identity strategies influenced all the decisions each airline made. Whom to hire, how to train, what kind of fleet to operate, and what passenger offerings and style of operations would reinforce their particular identity.READ MORE

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One word is critical to M&A Success – CULTURE

One word is critical to M&A success – CULTURE

We learned last week that Hewlett Packard Enterprise is merging its enterprise services unit with Computer Sciences Corp (Read the full story). This is a perfect opportunity to talk about the consequences of mergers on identity and brand, and how having a solid strategy for both is key in your merger’s success.

Research has shown that as many as 83 percent of mergers fail to achieve their original business goals. Brand value, or goodwill, suffers right along with business value, often destroying the appeal and premium that might have inspired the acquisition in the first place. Why is this? Because culture, and the purpose behind each organization being combined, is often ignored in favor of the numbers.

These deals are put together by attorneys and investment bankers, who fail to consider the cultural implications of the merger. These people think in terms of “synergy” and 1 + 1 = 3, when the real goal should be 1 + 1 = 1.

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Building a Strong Corporate Identity

Most organizations realize that having a strong brand identity brings many benefits, among them more motivated employees, competitive advantage in the marketplace and a clear brand promise to engage customers and stakeholders.

But it’s not always clear how to build a strong identity if you don’t already have one. What does it take? And how do you know what to aim for?

 

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Why Large, Complex Organizations Need a Strong Brand Identity

If you read a lot of the branding and naming advice that’s out there on the Internet, it would be easy to think that the only time an organization should worry about its brand identity is when it is first getting started. What should you name your company? How should you position it against competitors? These are important questions for startups and new brands, but the truth is that large, complex organizations are just as often in need of identity strategy.

 

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Brands in Crisis: You Can’t Hide

Malaysia AirlinesAfter the back-to-back tragedies of Malaysia Airlines flights MH17 and MH370, we’ve seen some news reports that the airline is looking to rebrand and change its name.

While I can understand why a brand in crisis would want to distance itself from these terrible events, I think it’s a mistake. Here’s why:

The damage is already done: These tragedies have dominated the news for many months, and the misfortunes of Malaysia Airlines are seared into the mind of the world’s population.

Superficial rebranding looks like hiding: When a brand has been through a disaster, a superficial change in identity makes it look like you’re trying to hide something. Instead of helping, it can backfire, provoking condemnation that further sinks the brand’s reputation, revenue and market value.

What really matters is demonstrating integrity: Instead of hiding, brands going through disasters need to demonstrate a real and total commitment to making meaningful change. For Malaysia Airlines this means rethinking every aspect of the airline and implementing major changes in critical areas (safety, management, training, operations, policies, service and transparency). In this way the brand could signal its commitment to ensuring that these tragedies did not happen in vain.

Brands in crisis can turn tragedy to triumph. But doing so requires investment and integrity. Malaysia Airlines could successfully change its identity and name if they introduce these changes as a high-visibility sign of their commitment to completely re-vamp their airline, and to be held to the highest standard. If the airline is truly changed, its identity could be changed. Handled correctly, that’s an opportunity.

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