Thursday, February 21, 2008

Brands III

Candidates have brands, too. These brands can be doubled-edged swords. Hillary Clinton rode to her dominant position in the current presidential race on the strength of the “Clinton” brand. Her recent troubles, however, may also be attributed at least in part on the Clinton name. As with many products, candidates look for mass appeal, not just certain segments. A strong brand identity can trap a candidate or product into a niche. Toyota’s brand carries an image of great value at low cost, so when it wanted to compete in the market for luxury cars it didn’t use the Toyota brand, but created a new one, Lexus. Hillary Clinton has a harder time changing her brand (see her campaign materials such as the picture to the left and you will see the Clinton name absent). She is trying to create a more distinct “Hillary” brand.

John McCain will have same challenges. He has made his brand on being a Maverick and straight talker. This brand causes him problems with many of the people in his own party. In today’s New York Times, an article attacks McCain’s brand image by “reporting” on some potential relationships with lobbyists. McCain has come out strong to discredit these charges – even as he must work to expand the value proposition to a mass audience, he must also protect his brand.

Obama now seems to have an advantage in the branding race. Starting with the significant disadvantage of all new entrants—lack of name recognition, he has been able to leverage the one advantage the new entrant has: no already established brand expectations. He has been able to create his own brand identity from scratch and he smartly has done it by appealing to a broad consumer base. In politics there are many niche players; previously African American candidates tended to appeal to minority audiences. Obama has made a distinct effort to not do that. He has built a brand that speaks broadly and has mass appeal. It will be interesting to see if there is enough substance behind the image to hold through November.

In both business and politics a brand image is necessary but not sufficient. That is, people must know who you are and have expectations of what you will deliver (quality, price, luxury, etc.). But it has to be delivered as well, or the company, product, or candidate will be no more than a fad or flash in the pan.

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