Tesla consumers pay up for the brand and its design. In brand strategy, you see a lot of parallels between Tesla and Apple. Both are status brands, and both use their brand identity to maintain premium pricing.
Take a look at Apple’s brand – design, performance, and reliability. People pay significantly more for Apple products than for similarly performing products from other companies. When the iPhone first appeared, its performance blew away other then-existing smartphones. Over time, it’s hard to say that Android phone performance hasn’t caught up with the iPhone. All the same apps. Great processing, camera and screen technologies. Sharp-looking industrial design. Most reviewers rate Google Now as better than Siri. Yet Apple is the smartphone company making the profits.
Apple leveraged their early technology lead to build their brand, and now the brand delivers the economic rents. Apple Music is a late entrant to the streaming music market, but its brand enabled it to quickly become a top player.
Now let’s look at Tesla and its electric vehicles. Nothing else on the road performs like Tesla’s current lineup, and Tesla can charge a premium for their products. Like Apple, Tesla’s product design, manufacturing quality and subsequent product reliability are outstanding. Tesla is using its early technology lead to build its brand identity for technology, performance, design and reliability. If/when competitor technologies eventually catch up to Tesla, Tesla will still be able to earn economic rents on their brand.
Tesla (and Apple) show us that long term business success requires more than just development of products and patents. It demands the development of a unique, hard-to-duplicate intellectual asset that provides ongoing value to the customer. For consumer products, that intellectual asset is the brand.
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There's a popular TED Talk where Simon Sinek authoritatively proclaims that the most successful companies have products, cultures, and marketing strategies that all stem from their raison d'être - "reason to be, to live"
These companies continuously answer the question "why" instead of the usual "what", and "how" -- he states that, "people don't buy what you do, they buy why you do it".
This speaks to a deep-seated human craving for authenticity, purpose and meaning -- even seeking it in the products we buy. Sinek asserts that the reason Apple is so unbelievably successful isn't because they sell products that are beautifully designed, simple to use and user-friendly -- but because -- since they believe in thinking differently and challenging the status quo in everything they do, they sell beautifully designed, simple to use, and user-friendly products; and people buy into this. In other words, they have a purpose and a mission apart from just profit, and their customers and employees sense the authenticity that results.
Tesla isn't just a car, or even a brand in the sense that nearly every other for-profit company is a brand ... It's actually the ultimate mission -- and that is, to wean our planet off its addiction to fossil fuels, helping to create a long-term sustainable society; one that our grandchildren can enjoy and be proud of.
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Building a brand identity is a complex process. It is essential to understand the brand's purpose and then develop branding elements that support this purpose.
An important element of brand identity is logo design, a logo should be memorable and impactful.
The best logos quickly convey your brand's unique look, feel, and mission. But sometimes, a company has its brand so flawlessly nailed down, only the specific target audience even understands it.
Take Tesla, for example.
Elon Musk recently shed some light on Tesla's logo design. Though it's easy to assume the T-shaped logo stands for Tesla, there's an added layer of hidden creativity (and brilliance) to the design. The real inspiration? The "T is like a cross section of an electric motor," Musk explained.
When I think of Tesla, I think "innovation." And the company appropriately takes a different approach to logo design. Instead of choosing a widely recognisable shape, it goes inside the product (cars) to a lesser-known icon (electric motor).
Tesla's brand and editorial guidelines back that up, stating that Tesla "believes in the future of transportation, as made possible by Tesla's innovation." And that while it aims to be accessible, "it is intelligent and does not speak to everyone."
How Tesla's logo represents its brand
Tesla's logo is a perfect embodiment of this brand. A car's motor is what pushes a vehicle forward. In symbolic terms, an electric motor is the catalyst of movement--or innovation. Yet this icon is a very specific reference--one that many people wouldn't inherently recognise or understand.
Innovative and intelligent: That's Tesla's logo. And it's exactly what the Tesla brand aims to be.
As an entrepreneur, how can you apply this thinking to your own brand and logo design? There are many creative ways you can represent your brand. But it all goes back to your brand's purpose.
---
Take a look at Apple’s brand – design, performance, and reliability. People pay significantly more for Apple products than for similarly performing products from other companies. When the iPhone first appeared, its performance blew away other then-existing smartphones. Over time, it’s hard to say that Android phone performance hasn’t caught up with the iPhone. All the same apps. Great processing, camera and screen technologies. Sharp-looking industrial design. Most reviewers rate Google Now as better than Siri. Yet Apple is the smartphone company making the profits.
Apple leveraged their early technology lead to build their brand, and now the brand delivers the economic rents. Apple Music is a late entrant to the streaming music market, but its brand enabled it to quickly become a top player.
Now let’s look at Tesla and its electric vehicles. Nothing else on the road performs like Tesla’s current lineup, and Tesla can charge a premium for their products. Like Apple, Tesla’s product design, manufacturing quality and subsequent product reliability are outstanding. Tesla is using its early technology lead to build its brand identity for technology, performance, design and reliability. If/when competitor technologies eventually catch up to Tesla, Tesla will still be able to earn economic rents on their brand.
Tesla (and Apple) show us that long term business success requires more than just development of products and patents. It demands the development of a unique, hard-to-duplicate intellectual asset that provides ongoing value to the customer. For consumer products, that intellectual asset is the brand.
---
There's a popular TED Talk where Simon Sinek authoritatively proclaims that the most successful companies have products, cultures, and marketing strategies that all stem from their raison d'être - "reason to be, to live"
These companies continuously answer the question "why" instead of the usual "what", and "how" -- he states that, "people don't buy what you do, they buy why you do it".
This speaks to a deep-seated human craving for authenticity, purpose and meaning -- even seeking it in the products we buy. Sinek asserts that the reason Apple is so unbelievably successful isn't because they sell products that are beautifully designed, simple to use and user-friendly -- but because -- since they believe in thinking differently and challenging the status quo in everything they do, they sell beautifully designed, simple to use, and user-friendly products; and people buy into this. In other words, they have a purpose and a mission apart from just profit, and their customers and employees sense the authenticity that results.
Tesla isn't just a car, or even a brand in the sense that nearly every other for-profit company is a brand ... It's actually the ultimate mission -- and that is, to wean our planet off its addiction to fossil fuels, helping to create a long-term sustainable society; one that our grandchildren can enjoy and be proud of.
Building a brand identity is a complex process. It is essential to understand the brand's purpose and then develop branding elements that support this purpose.
An important element of brand identity is logo design, a logo should be memorable and impactful.
The best logos quickly convey your brand's unique look, feel, and mission. But sometimes, a company has its brand so flawlessly nailed down, only the specific target audience even understands it.
Take Tesla, for example.
Elon Musk recently shed some light on Tesla's logo design. Though it's easy to assume the T-shaped logo stands for Tesla, there's an added layer of hidden creativity (and brilliance) to the design. The real inspiration? The "T is like a cross section of an electric motor," Musk explained.
When I think of Tesla, I think "innovation." And the company appropriately takes a different approach to logo design. Instead of choosing a widely recognisable shape, it goes inside the product (cars) to a lesser-known icon (electric motor).
Tesla's brand and editorial guidelines back that up, stating that Tesla "believes in the future of transportation, as made possible by Tesla's innovation." And that while it aims to be accessible, "it is intelligent and does not speak to everyone."
How Tesla's logo represents its brand
Tesla's logo is a perfect embodiment of this brand. A car's motor is what pushes a vehicle forward. In symbolic terms, an electric motor is the catalyst of movement--or innovation. Yet this icon is a very specific reference--one that many people wouldn't inherently recognise or understand.
Innovative and intelligent: That's Tesla's logo. And it's exactly what the Tesla brand aims to be.
As an entrepreneur, how can you apply this thinking to your own brand and logo design? There are many creative ways you can represent your brand. But it all goes back to your brand's purpose.
---
Tesla is building their powerful new brand in unconventional ways in order to combat and align with the hyper-connected, over-saturated, chaotic, peer-influenced world we live in. Below, a few lessons to be learned:
Be clear on your purpose, bold on your promise
Tesla is less about a car than it is about a revolution; it’s a true disruptor in a category of incremental-ism and boredom. Elon Musk, like Jobs before him, wanted to change the way the world saw and used automobiles—much like he did with PayPal and is trying to do with the spaceX. Musk wanted to help do something about the environmental issues dogging the category and truly shift the frame of reference when we each think about buying our next car. Musk's vision for making electric cars competitive in luxury and accessibility is bold, but it is hard to bet against him. Think about companies like Coke and Dove and Zappos: They all have a higher-order purpose beyond the products or services they are pitching. When you think about Coke and connections, Dove and empowerment, and Zappos and unconditional service, you would be wise to add Tesla and world-changing to that list.
Create an experience that “almost” outshines the product
Tesla’s real genius is its unique showrooms (most often found in somewhat ordinary shopping malls) with a magnetic appeal that draws in as many casual observers as they do serious car buyers. Most showrooms can only fit one Tesla, but imagine having thousands of people walking by your car every day—even the casual shopper picking up a pair of shoes at Clarkes is drawn in!
Much like the first time you walked into Nike Town or an Apple store, you’ll find that the attention to detail, the technology on display and the knowledge and insight (but lack of sales aggressiveness) you receive will disarm you. There is an Apple-like attention to detail in every aspect of the car. From the door handles to the cup holders to the high-tech dash, to the unparalleled levels of customer service following the sale, every part of the experience oozes personalised, innovative technology. All this for a brand that just so happens to be doing good for the world.
Be clear on your purpose, bold on your promise
Tesla is less about a car than it is about a revolution; it’s a true disruptor in a category of incremental-ism and boredom. Elon Musk, like Jobs before him, wanted to change the way the world saw and used automobiles—much like he did with PayPal and is trying to do with the spaceX. Musk wanted to help do something about the environmental issues dogging the category and truly shift the frame of reference when we each think about buying our next car. Musk's vision for making electric cars competitive in luxury and accessibility is bold, but it is hard to bet against him. Think about companies like Coke and Dove and Zappos: They all have a higher-order purpose beyond the products or services they are pitching. When you think about Coke and connections, Dove and empowerment, and Zappos and unconditional service, you would be wise to add Tesla and world-changing to that list.
Create an experience that “almost” outshines the product
Tesla’s real genius is its unique showrooms (most often found in somewhat ordinary shopping malls) with a magnetic appeal that draws in as many casual observers as they do serious car buyers. Most showrooms can only fit one Tesla, but imagine having thousands of people walking by your car every day—even the casual shopper picking up a pair of shoes at Clarkes is drawn in!
Much like the first time you walked into Nike Town or an Apple store, you’ll find that the attention to detail, the technology on display and the knowledge and insight (but lack of sales aggressiveness) you receive will disarm you. There is an Apple-like attention to detail in every aspect of the car. From the door handles to the cup holders to the high-tech dash, to the unparalleled levels of customer service following the sale, every part of the experience oozes personalised, innovative technology. All this for a brand that just so happens to be doing good for the world.
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