Has the time for electric vehicles (EV) finally arrived? After all, EV automobiles are not a new concept and have been sold for many years by a number of auto manufacturers. But they have not yet taken off into a mass consumer market.
But now, EV sales are certainly growing with a large purchase of 100,000 Tesla cars by Hertz for a reported price of $4.2 billion. Showing support for the purchase is Uber, which committed to renting up to half of that order for its drivers. Consumers often state that a positive rental experience made them consider purchasing the model as well. The market for Hertz is not only current Tesla owners who want to rent Tesla when they travel, but also consumers who have wanted to test drive an EV Tesla for an extended period of time.
Current global market estimates are that EV market growth will go from roughly $246 billion in 2020 to $1.3 trillion by 2028. The growth is fueled in part by the requirement to lower carbon emissions, as well as increasing fuel prices. However, a limiting factor is the low number of charging stations; mileage between charges continues to be a factor impacting sales.
A bonus for Tesla (aside from a sticker-price buy) is the advertising that Hertz will do for the rentals. Hertz is planning an advertising campaign with quarterback Tom Brady to promote EV rentals. The company will also install thousands of EV chargers at it locations globally.
Tesla famously does not purchase advertising, instead relying on its store-fronts, word-of-mouth, and the strong social media presence of Elon Musk who has 54 million followers on Twitter.
Hertz also gains from the deal. It filed for bankruptcy in May 2020, but emerged from bankruptcy a few months ago, just as travel started to grow again in the U.S. After shedding old inventory during bankruptcy, the company is now poised to be one of the newest and most relevant car rental agencies.
As marketers, we know that brands influence consumer purchasing decisions. But really, what is a brand? Does a brand have a financial value? Does it drive growth?
These are critical questions that drive the strategic marketing decisions of corporations around the world. In general, marketers define brand as the position that a company/product holds in the minds of the consumers. It follows then that if the brand holds a position in consumers’ minds, then it would definitely translate into a financial value for companies.
Each year, Interbrand does a financial analysis that seeks to define, in dollars, the value of a company’s brand – the result is the annual Best Global Brands ranking. In order to be included in the report:
The brand must be global – it must have successfully crossed geographic and cultural boundaries.
At least 30% of revenue must come from outside the brand’s home region.
The brand must have a significant presence in at Asia, Europe, and North America, as well as geographic coverage in emerging markets.
There must be sufficient publicly available data on the brand’s financial performance.
Economic profit must be expected to be positive over the longer term, delivering a return above the brand’s cost of capital.
The brand must have a public profile and awareness above and beyond its own marketplace.
Interbrand’s brand valuation methodology seeks to determine, in customer and financial terms, the contribution of the brand to the company’s business results. There are three key components in the methodology for the valuations: analyses of the financial performance of the branded products or services, of the role the brand plays in the purchase decision, and of the competitive strength of the brand.
Brands in the top five include Apple (number one for the ninth consecutive year!), Amazon, Microsoft, Google, and Samsung. Tech leads the top 10 brands and the top three account for nearly a third of the total value.
Top risers from 2021 are Tesla, Salesforce.com, Nintendo, PayPal, Nike, Zoom and Adobe. Sephora (at number 100) is the only new brand entrant this year.
How many did you correctly guess?
Group Activities and Discussion Questions:
Ask students to define “brand.” What is it? Does it have value to a company?
Have students take out a piece of paper. Ask them to choose what they thing are the top 10 most valuable brands in the world.
We long for comfort and style in our dress. Sometimes the stylish fashions are not comfortable, but when it comes to socks, we can have both style and comfort now. Why settle for boring old dark dress socks when you can instead wear vibrant, colorful socks that express your personality and fashion sense?
Indeed, socks are booming right now. As people return to the office (and school), their clothing choices have changed. Comfort is more important the fancy dress. And not only have socks become fashionable, many companies also embrace a social mission with purchases.
For example, companies including Bombas and London Sock Co. donate socks for every purchase made. Company MERGE4 partnered with the San Diego Zoo on a special edition that gives back to wildlife conservancy. And, Cicada uses its socks to raise awareness of environmental issues such as ocean waste and animal poaching.
Socks are a way to make a statement without being garish. While these socks are more expensive than the mass-market white athletic socks, they are a low-cost way to stand out.
What’s on your feet?
Group Activities and Discussion Questions:
Ask students to look at their feet. What are their socks? Athletic, dress, fashion?