Tesla Motors, founded in 2003 by a group of Sillicon Valley engineers, is company that designs, manufactures and sells electric cars and electric power train components. It currently has 37 stores located primarily in North America. Some of their innovative products include the Tesla Roadster, the first battery electric sports car, and Model S.

This fast-growing company went public on 2010 and is looking to launch its next product: Model X.

The product life cycle of Model S is arguably in the growth stage. The Model S has become the bestselling electric vehicle in America. They are in the growth stage because electric vehicles are more accepted and sales are rising.

The new segment of consumers who are interested in purchasing electric vehicles  is on the rise. As electric vehicles become a norm, Tesla can further promote their products to a larger customer base.  Tesla has plans to expand production and increase distribution to meet the increasing demand in Europe and Asia. It expects to reach an annual production rate of 40,000 by late next year as it starts selling in Europe and Asia.

Product quality of Model S is maintained, for example, it was rated the safest car by NHTSA.  Its advantage lies within the lack of gas tank, which creates a much longer crumple zone to absorb a high speed impact. With a starting price of 70,000, Tesla Motor’s product pricing is maintained as the company enjoys increasing demand with little competition.

I believe Tesla’s growth will only rise from here on, as the electric vehicle industry will only continue to expand. As of now, I cannot imagine Tesla products reaching a maturity stage, as there are many untapped markets outside of North America.

Sources

http://www.teslamotors.com/en_CA/

http://www.teslamotors.com/fr_FR/about/press/releases/tesla-model-s-sales-exceed-target

Zara has become one of the most well-known fashion brands in the world. It began operations in 1975 and now earns 70% of the Inditex group revenues. Since increasing international operations in 1988, Zara has opened nearly 1800 stores in 45 countries worldwide.

Apart from its quick response to customer demands through speedy supply chain response, much of its brand value is created through its marketing strategy. Zara only spends 0.3 percent of sales on marketing, compared to other retailers who spend 3-4 percent. Zara markets through the appeal, location, and placement of stores. For example, Zara aims to be close to the high fashion stores such as Gucci and Prada.

I think Zara’s strategy has been very successful thus far, however, using  “flashy” advertisements as competitors do may further increase their sales and brand exposure. Its major competitor, markets through using high profile designer name designs and endorsements of celebrities such as Beyonce.

In my perspective, Zara has already established a strong customer base, and there is no doubt that if they employ the same sort of marketing strategy, there is more to gain than lose. They are able to “get by” for now, but if they want to further expand, they should consider employing a more rigorous marketing strategy. The real challenge is; how will Zara amend  their marketing strategy while still   keeping their aura of “exclusivity?”

Sources

http://search.proquest.com.ezproxy.library.ubc.ca/docview/1432516684?accountid=14656

http://web.mit.edu/jgallien/www/ZaraInterfaces2010.pdf

http://www.uniquebusinessstrategies.co.uk/pdfs/case%20studies/zarathespeedingbullet.pdf

As I was thinking of all the brands that I associate with, I realize that more than half of those them originate from one country. It is obvious some of the most powerful brands in the world is created in America, but how do these brands become so influential and popular? Apple, Microsoft, IBM, Google, and Intel are all American brands that are deemed 2012’s “World’s Most Powerful Brand” by Forbes. What makes a brand valuable? Is there a difference between a valuable brand and a powerful brand?

All the company listed have high brand equity, however, there is no universal accepted way to measure it.  Forbes’ methodology is based on financial metrics and indexed consumer behaviour and brand value.

In my opinion, different people have different value on certain brands. In a micro perspective, as an avid yogi, Lululemon is deemed a valuable brand to me, however other people may think otherwise. Brand equity can also be measured as the price premium that a brand demands over a generic product. A powerful brand should never fail to capture the world’s attention. I think that powerful brands are valuable, but valuable brands does not necessarily have to be powerful. For example, those who shop at Whole Foods value the brand because they believe in paying price premium for organic foods, but not everyone has the same mentality. I deduce that powerful brand should be stellar in financial strength and consumer perception.

On a side note, even as globalization prevails, many top companies on the list are American. Globalization might as well be “americanization.”

Sources:

http://www.forbes.com/powerful-brands/list/

http://www.forbes.com/sites/kurtbadenhausen/2012/10/02/apple-tops-list-of-the-worlds-most-powerful-brands/

http://www.netmba.com/marketing/brand/equity/