Trump Entertainment Resorts Inc. (fka TRMPQ)

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What's in a name? For Trump, it's a lot

What's in a name? For Trump, it's a lot
BRAND WINS: Judge rules on side of perceived equity, fame

PHILADELPHIA – Donald J. Trump is a juggernaut — on that, marketing folks agree.

Trump the man and Trump, the brand — emblazoned on everything from condo towers and golf courses to casinos, TV shows, and best-selling books — stand among a handful of global celebrity icons (Oprah, Martha, and yes, Tiger) who instantly conjure an image with consumers, connecting personality with product.

But a federal bankruptcy judge’s decision this week raised some interesting questions: Is a brand really worth more to a company than the chance to shed millions of dollars in debt?

And is keeping that brand critical to survival — in this case, the survival of the three Atlantic City, N.J., casinos that bear the Trump name?

“Whether you like him or not as a person, he’s cultivated a brand name that is probably as large as life as a Procter & Gamble. It’s a name with an unbelievably high recognition factor,” said Gene Marbach, group vice president at Makovsky & Co., a New York public- and investor-relations firm.

LOUIS VUITTON OF REAL ESTATE

Trump is to real estate what Louis Vuitton is to fashion, said Ronn D. Torossian, president and chief executive officer of 5W Public Relations, which has offices in New York and Los Angeles.

“By having the Trump stamp on your brand, you’re making a very strong statement — one that is very positive and one that resonates with consumers and banks, both domestically and internationally,” he said. “It’s a brand that is worth a tremendous amount.”

Just how much it’s worth was a central issue in Monday’s 121-page ruling by U.S. Bankruptcy Judge Judith Wizmur, who ruled in favor of Trump, Trump Entertainment Resorts Inc., and its bondholders maintaining control of the Trump Plaza, Trump Taj Mahal and Trump Marina casinos as they emerge from a third round of bankruptcy.

The Trump forces prevailed despite what appeared to be a better offer from another financial icon, billionaire Carl Icahn, who presented almost twice as much — $486 million vs. $225 million, and elimination of all the company’s debt.

In the world of New York real estate, few were surprised by the importance Wizmur placed on the Trump name — which, they said, has carried tremendous weight in the Big Apple since the mid-1980s.

“Just the name brand says a lot,” said Amir Korangy, founder and publisher of The Real Deal, a news magazine considered the bible of that state’s real estate industry. “It’s like having the name ‘Awesome.’ ”

Mickey Roth, president of Park-River Properties, a luxury real estate company in New York, said selling condo units in Trump’s Manhattan properties is a lot easier than with some other buildings.

CASINO BRANDING

Still, said Jerry Wind, a marketing professor at the University of Pennsylvania’s Wharton School, when it comes to the Atlantic City casinos, things are not as clear-cut.

“It’s a little difficult to conclude that no other name could match the awareness, value and meaning of the Trump name,” said Wind, who teaches advertising strategy and new-product and business development. “Definitely, the Trump name is well known, (but) names are not the only thing that could attract people to a casino.

During the final day of testimony in the Trump casinos’ bankruptcy case, Vincent J. Intrieri, senior managing director of Icahn Partners LP, worked to make that very point.

Intrieri tried to diminish the value of the Trump brand to the three casinos and said Icahn was willing to invest $15 million to rebrand them.

“I don’t think people go to a casino because it has the Trump name,” he said. “They go for the quality of the product, service, types of amenities it has, and the condition it’s in. No one goes to a casino because of the name.”

Judge Wizmur disagreed, ruling that the Trump name and the casinos were unequivocally linked.

“That is an amazing ruling,” said Marbach, the New York PR exec.

“There is a tremendous amount of equity in the Trump name that’s very difficult to replicate.”


http://www.thenewstribune.com/2010/04/18/1152402/whats-in-a-name-for-trump-its.html#ixzz0lV54ja10