Great brands like Tesla start with an alluring story: A charismatic founder, Elon Musk. An innovative idea, a fully electric vehicle. Technology that’s integrated into our culture.
With Musk at the helm, Tesla has built an interesting following: Influencers, Wall Street pundits, retiring boomers flush with assets and Gen Xer’s who don’t even own a Tesla vehicle. Most have never interacted with Tesla or its products, but they believe that the brand protects the planet. And while Tesla enjoys a positive brand image, if faces an ironic dilemma. The population of future car buyers is dwindling fast.
The Wall Street Journal reports, “Whereas a driver’s license once was a symbol of freedom, teenagers are reaching their driving age at a time when most have access to ride-hailing services such as Uber and Lyft to shuttle them around town. At the same time, social media and video chat let them hang out with friends without actually leaving the house. When they reach their 20s, more are moving to big cities with mass transit, where owning a car is neither necessary nor practical.” This brings Tesla to a crossroads. They have a great brand, great product but fewer buyers. They need to either rebrand or develop another product.
Elon Musk has the solution. The ultimate Ad Network where the user is the product. He’s turning Tesla’s into a super Ubers.
Musk announced that Tesla robotaxis with no human drivers would be available in some markets in 2020. And in doing so, Tesla will enter the fast lane of apps, big data, and digital advertising. Ride in a robotaxi and Tesla will learn where you going and what you are about to buy. With this information, Tesla will be able to re-target specific, in-car advertising messages to you as you head toward your destination. The net effect: thousands of riders making billions of connections through the Tesla platform, while Tesla charges advertisers a premium to unleash the right messages to riders moments before they purchase.
If the user wants stay home, Tesla has a delivery app ready. Ordering from your favorite restaurants will be easy. You will use Tesla’s robotaxi app to order the foods you love from local restaurants. Tesla robotaxis will make deliveries with Tesla taking a commission on purchases. It will also be a bonanza of data for Tesla. They will know the foods you like, how much you’re willing to spend and how often you order. This will help them build strong profiles of who you are and what you need and advertisers will be hungry for Tesla’s proprietary data.
Sure there will be competition, there always is. But owning a premier brand will position Tesla as the leader in this new consumer journey.
At the damien harvey group we look at trends and where your business can go with the right branding and advertising. Check us out dhg.world.