Sun Sentinel Palm Beach Edition
Crossed lines put brand on line
Antics, assault claims may rock Trump businesses
WASHINGTON — In the tradition of P.T. Barnum, an earlier showman-turnedpolitician who is credited with saying there’s no such thing as bad publicity, Donald Trump may have thought he had nothing to lose in running for president.
Even a defeat might serve to raise his visibility and burnish a name brand that has become his most valuable asset.
But while Trump’s unconventional campaign has brought him a lot of free publicity and newfound popularity bordering on reverence among his mostly white, conservative, working-class supporters, it also has turned off many Americans who now associate his name with racism, misogyny and bigotry.
And there are increasing signs that the ugliest presidential race in modern history has tarnished the Trump name to such degree that it may jeopardize — or, at a minimum, alter — the future of his business enterprises.
The New York real estate developer, known for his lavish lifestyle, messy divorces and abrasive quips on the TV reality show “The Apprentice,” has long been a figure whom people “love to hate,” according to the celebrity and brand-tracking firm Q Scores.
That brash, in-your-face image was part of Trump’s carefully crafted persona that went hand in hand with his brand, which also became synonymous with a kind of gaudy, over-the-top luxury. Over the past decade, he parlayed that reputation into a variety of businesses, including steaks, wine, clothing, mortgages and the now-defunct Trump University, cur- rently the target of a fraud lawsuit.
But recent revelations that Trump boasted about groping women, followed by accusations from several women that he grabbed and kissed them against their will, have turned Trump’s brand challenge from something like the one largely overcome by Martha Stewart after her conviction in a stock-trading case to the scandal that swirled around Southern chef Paula Deen, who has struggled to recover after disclosures that she used racial epithets.
“He’s said a lot of outrageous things throughout the course of the campaign,” said Karen Tiber Leland, founder of Sterling Marketing Group, a branding and marketing firm. “People shrugged it off as, ‘That’s Donald — he’s not politically correct.’ ”
But the vulgar exchange caught on a microphone with TV host Billy Bush in 2005 and subsequent sexual assault and harassment allegations by a number of women are “so completely out of bounds (that) most people aren’t saying, ‘Donald is just Donald.’ ” Leland said. “He pushed the envelope too far.”
Because Trump’s ventures are mostly private and do not release financial figures, it’s hard to say with certainty whether his businesses are hurting. His campaign and business managers declined to comment, as did The Trump Organization, the conglomerate based in New York.
In a deposition earlier this year, Trump said his businesses were largely unaffected by his campaign; and in one instance, at Florida’s Mar-a-Lago Club, he said bookings were up, possibly because of his campaign’s frequent use of the property for events.
But there is growing evidence from outside surveys, some more anecdotal than scientific, suggesting that his real estate holdings are suffering from the negative publicity surrounding his campaign and past behavior A survey of more 1,500 people by Brand Keys — conducted shortly after the 2005 recording was made public but before the allegations against Trump from various women emerged — found that the perceived value of Trump’s brand in several businesses had dropped significantly.
In June, the added value associated with the Trump name in entertainment, for example, was 43 percent, the company found. As of Oct. 9, it had dropped by 13 percentage points. There were smaller but still noticeable drops in the value of Trump’s real estate and golf and country clubs as well.
Trump’s businesses and corporate partnerships already had taken a hit as companies and sponsors, including Macy’s, PGA Tour and Perfumania, sought to reduce or cut ties with the controversial political figure.
Restaurateurs Jose Andres and Geoffrey Zakarian pulled out of Trump’s new Washington, D.C., hotel shortly after the candidate last year characterized some Mexican immigrants as drug dealers and rapists.
“All this negative press, the negative reactions from people, it’s got to hurt his brand,” said Kevin Keller, a marketing expert at Dartmouth College. He said some would-be customers will avoid patronizing Trump’s business because of concerns about what other people may think.
More worrisome for Trump is that after Election Day, his name may be associated with something else: loser. “Part of his brand is this whole thing that he’s a winner,” Keller said.
If Trump ends up losing, Keller said, there’s no way he’s going to be able to talk his way out of that. “No matter how he tries to spin it, that’s got to hurt his brand because his whole persona is built around that.”
“All this negative press, the negative reactions from people, it’s got to hurt his brand.” Kevin Keller, marketing expert at Dartmouth College