Tesla Motor: Model S Electric vehicle


In April 21, 2015, Tesla Motors proudly to announce that all Model S variants had received a maximum possible 5-star rating in the Australasian New Car Assessment Program (ANCAP). With the score of 35.45 out of 37, Model S of tesla new electric car has been received the highest rating of any electric vehicle in Australia. It is recognized around the world that Model S is already holds with a five-star rating electric vehicle car from the Euro NCAP and the U.S. National Highway Traffic Safety Administration (NHTSA).


Tesla had produced a very efficient car that is Model S with a Tesla super charger battery on it. Comparing with other electric vehicles, most of them charge with the battery duration time count by hours, but only BMW i3 and Model S are charged by minutes. Comparing the size of BMW i3 and Model S, Model S with fully charged battery is only used 40 minute as for BMW i3 with a fully charged battery used up to 30minutes. Which that Tesla Motor is being successful working on their battery charged in a normal size car. However, BMW i3 charged with 30minute full power but only can travel with the range of 80-100mi, as for Tesla Motor it can travel up to 208mi which is more superiority compare to BMWi3.


Although Tesla Model S is very efficient and high rating in electric vehicle, but the price isn’t cheap at all. With the market price that they are selling now is $69,999, which is quite expensive for normal car consumer spender to buy, and the price aren’t coming down just yet. Do you think that consumer will buy such expensive car? Tesla Motor is targeting customers that are successful business executives and entrepreneurs who are tech savvy and green friendly.

Even though Model S is doing great as a luxury car, what if Tesla Motor drop the price of the car and selling it for the normal consumer that are affordable to buy rather than just aiming for wealthy business customer. Giving a great opportunity to increase the business, Tesla must make the correct decision to move towards to be the best five star rating electric vehicles continuously.

Do you think that Tesla should drop the price for Model S? If they decrease the price would it affect the quality and reputation for the car brand? Early Nissan Leaf (and other electric car) models are starting to show up on used car lots. Should you buy one? It might be a good decision for staying that price for certain time and in the future there will be more even higher tech car might be greater and cheaper. No one will know power of technology can go till how far in the future.


It’s simple! Our new “one brand” strategy

Over the years consumer taste, preference and lifestyles have changed, and with that so has Coca‑Cola. We’ve innovated to include a range of lower and no sugar and calorie alternatives, each with their own identity. But recent research has showed that not everyone understands the options available to them, and the benefits of each drink, which is why we’re introducing a new “one brand” strategy to help make choice easier and simpler.
From May in Great Britain our four colas will be marketed under one brand – Coca‑Cola – allowing Diet Coke, Coca‑Cola Zero and Coca‑Cola Life to benefit from its widespread appeal. We’ll be promoting the different characteristics of each variant, and giving black, silver and green greater presence in Coca‑Cola advertising. The strategy will also play an important part in our goal to achieve, by 2020, more than 50% of Coca‑Cola sales from lower or no calorie colas in Great Britain.

Did you know? Five out of ten people don’t know that Coca-Cola Zero is a no sugar, no calorie drink.

“With our new ‘one brand’ approach, we are uniting four distinct brands under the umbrella of Coca‑Cola. We believe our no and lower sugar variants will benefit from this closer association with Coca‑Cola and that featuring all variants in our advertising will make clear to more consumers the full choice we offer them.” Jon Woods, General Manager of Coca‑Cola Great Britain & Ireland

6 changes we’re making:
• Coca‑Cola advertising will show our full range of colas
• Coca‑Cola TV ads will feature all four variants in the final frame
Our packaging will clearly highlight the benefits of each variant
• The branding on every Coca‑Cola can and bottle will be in the same style, with different colours to distinguish each variant
• In 2015, we’re doubling our marketing spend for our lower and no sugar and calorie colas
• It’s the first time our sponsorship of a major international sporting event – Rugby World Cup 2015 – will promote all four variants, and champion Coca‑Cola with zero calories

See how we’ve delivered on our commitments to provide more choice and information about our drinks.

Our instantly recognisable Spencerian script will be used across all 330ml Coca‑Cola cans, which will also feature the UK Government’s front-of-pack labelling scheme, combining nutrient amounts and percentage Reference Intakes with colour-coding. Which pack will you choose?

Source : http://www.coca-cola.co.uk/stories/health/choice-and-information/coca-cola-one-brand-marketing-strategy/

Launch SUV – The overall trend for high-end automakers


The Lamborghini Urus have confirmed that they will launch the new family friendly SUV in 2017.  Lamborghini CEO Stephen Winkelman suggested that it was the automaker’s “expectation” to launch the SUV and the luxury SUV, as it is anticipated that the SUV market is will grow substantially over the next few years.


As a traditional high end luxury sports car manufacturer, Lamborghini is in famous of producing super fast sports car. At FY 2014, the company has sold 2,530 units across the world.

Lambo sales

Entering the SUV market provides Lamborghini with a truly incremental opportunity to drive sales by offering innovative products outside of their legacy product offering. Increasing their product portfolio will in turn increase their target customer base, providing them with wider distribution and appeal amongst automobile consumers.

Lamborghini have recognized the success of their sister brand Porsche (Cayenne and Macan) having entered into the SUV market, (Porsche Sold 45,000 Macan SUVs Last Year, Reports 17.2 Billion Euro Revenue) setting a precedent on how product diversification can take a brand from strength to strength. Bentley, also sister brand to both Lamborghini and Porsche, have announced their plans to enter the SUV market in 2016. Market share for the taking, leveraging the strength of brand equity paired with product innovation to entice consumers.

Although deemed a great opportunity to increase business, one must look to the potential headwinds. Diversification with regard to product range/offering brings a number of challenges. Brand perception, specialist product knowledge, and dilution of the brand core value. That being said, with the right plan in place all of these potential headwinds should be easily overcome with a solid commercial strategy paired with optimized back office support.

Will this strategy take these giants to the next level? Will other brands follow foot such as Ferrari?

Only time will tell….


Product development drama for big pharma

By Jane Honeyman and Katherine Gracey

Bringing new and improved products into the market place is so important and rewards your company with continued and significant presence. New products create excitement, promote innovation, attract new customers and increase revenue.

So how do you develop a new product?


Looks easy right? It can be for the FMCG (fast moving consumer goods) industry but unfortunately this straightforward timeline does not work so well if you are in the pharmaceutical industry….

Let’s look at some key difference between the two markets.

taLooks like life is lot easier for a marketing manager in the FMCG industry!!

The two key problems that pharmaceutical companies face during product development are:

1. Testing, design and development

  • tightly regulated clinical trials and manufacturing requirements (it can take up to 15 years for some products to reach the market!)
  • products are not easily ‘tweaked’
  • difficult to test products during development and subsequently only launch the ‘popular’ products
  • patents may expire before a product is even released


The cost of developing a prescription drug that gains market approval is currently estimated to cost around $2.6 billion!!!!

(Source: http://csdd.tufts.edu/files/uploads/Tufts_CSDD_briefing_on_RD_cost_study_-_Nov_18,_2014..pdf)

And only an estimated 1 in 10 drugs currently in Phase I clinical trials are eventfully approved and launched into the market!!!

(Source: http://www.reuters.com/article/2011/02/14/us-pharmaceuticals-success-idUSTRE71D2U920110214)

2. Advertising, promotion and sales

  • restrictions and regulations mean that prescription drugs cannot be advertised to the consumer and the customer (the doctor) chooses the product for the consumer (the patient)
  • products cannot be freely promoted through any channel (TV, social media, radio)
  • generic (‘copycat’ versions) of the drug can be released before the innovator drug has turned a profit (an estimated $113 billion of sales during 2010-2014 was lost to generics)

(Source: http://www.nature.com/nrd/journal/v9/n3/full/nrd3078.html)

An unfortunate decline in innovation

The process of discovering and developing new drug products is unique, difficult and unusual when compared to the rather straightforward process experienced by the FMCG industry.

The cost of research and development in the pharmaceutical industry keeps increasing and the development of a new drug requires huge investments into resources and technological expertise, strict adherence to testing regulations and manufacturing standards….and then, and only maybe, will a new drug be available to the general population.

Drugs approved by the US Food & Drug Administration (FDA) have plunged 40% since 2005 whilst R&D costs have surged 40%. The average number of drugs approved per year between 2005 and 2010 was a mere 22.

The FDA is speeding up the approval process for drugs, but is this a wise idea? Lengthy clinical trials minimise the chance of serious, but unusual, side effects from occurring in a small percentage of the population.

Competitors in the industry may have to combine their knowledge and resources and start working together to improve the rate of successful drugs being released on the market.

Maybe the perception that pharmaceutical companies are ‘greedy’, ‘immoral’ and ‘evil’ is not so fitting….

Do you think the pharmaceutical industry needs saving?


Katherine Gracey and Jane Honeyman

#ImNoAngel.  Taking a direct swipe at your competition.  I’m unsure how effective this is as a marketing campaign and also for the validity of a brand.

Lane Bryant is a United States retail women’s clothing store chain focusing on plus-size clothing. The company started in 1904 with the innovative maternity designs created by Lena Himmelstein Bryant Malsin.  As of 2013, the chain consists of 812 stores in U.S. states.

Victoria’s Secret is the largest lingerie retailer in the United States.  The company sells lingerie, womenswear, and beauty products through its catalogs (sending out 375 million a year), website, and stores.  They also have a global presence through their store fronts.

There is a feuding history between Lane Bryant and Victoria’s Secret.  In 2010, Lane Bryant accused Fox and ABC of censoring their 30-second ad spot during commercial breaks for Dancing with the Stars and American Idol. The ads featured plus-sized model Ashley Graham in their new Cacique line of lingerie. Lane Bryant accused the two networks of bias and discrimination because they had no problem with airing Victoria’s Secret advertisements, with similarly clad models, in the same time slots.

So let’s move forward to 2015 and in their recent ad campaign, they took a direct swipe at Victoria’s Secret with the hashtag Im No Angel.

Take a look.

So why this tag line, why this brand message for Lane Bryant?  It was a play on Victoria’s Secret’s “Perfect Body” campaign which also hit the headlines for the wrong reason for using ultra thin models and criticized for promoting an unhealthy body image.  The hashtag aims to revitalise the flagging brand by cashing in on the growing body-positive movement following on from the Doves landmark “Real Beauty” campaign which attracted over 60 million views on You Tube.

Featured image

Social media formed a major part of their campaign.  In the digital age, one way to make a brand stand out from itself is to get social media traction.  By that measure, the #ImNoAngel campaign has certainly made traction.

Featured image

In one day, #ImNoAngel garnered 30,000 Facebook and Twitter mentions, 85% of them positive.  Twitter followers were growing 4% a day and activity was 80% women aged 25-44 (Hamburg Coplan, H, 2015).

But did they go too far? Sarah Wasilak of PopSugar wrote “We couldn’t help but wonder if they were poking a little too hard at the Victoria’s Secret models.  Yes, the VS Angels are slender, but each of them boasts her own unique body type, as do the gorgeous women in Lane Bryant’s ad. While we certainly agree that sexy is, without a doubt, a term with a broad definition, we feel as though this particular angle might come off as bullying.” (Moyer, J, 2015)

“Thin-shaming and fat-shaming are not separate, opposing issues—they are stratifications of the same issue: Patriarchal culture’s need to demoralize, distract, and pit women against one another,” Lindy West wrote in Jezebel in 2013. “To keep women shackled by shame and hunger. To keep us obsessing over our flaws rather than our power and potential. To get our money.” (Moyer, J, 2015)

So is Lane Byrant really about empowering women and trying to set a new standard or is just about selling products?

“Our campaign is designed to empower all women to love every part of herself,” one commenter wrote about “I’m No Angel” on a Fox News affiliate’s Web site. “Unless she’s skinny. Then we have to shame her for being skinny in order to empower other women.” (Moyer, J, 2015)

Does it work? Playing directly against your competition can have an excellent impact on your product launch and brand but it can also be a risk.  A brand may be perceived as boring and umimangitive or even worse a bully.


Hamburg Coplan, J, 2015 “Lane Byrants’ jab ay Victoria’s Secret”, Fortune.com, retrieved 20 April 2015, http://fortune.com/2015/04/14/lane-bryants-jab-at-victoria-secret/

Moyer, J, 2015 “How Lane Byrant might be bullying skinny women”, Washington Post, retrieved 20 April 1025, http://www.washingtonpost.com/news/morning-mix/wp/2015/04/08/lane-bryant-imnoangel-ad-campaign-might-be-bullying-skinny-women/

Branding and its Implications…

(Posted by Abdullah and Subham Singh)

How branding is important

Branding goes way beyond just a logo or graphic element. When we think about a brand, we really want to think about your entire customer experience. Everything from your logo, website, social media experiences and customer interaction.  In short, your brand is the way customer perceives the organization.  It is critical to be aware of our brand experience and have a plan to create the brand experience that we want to have.

Impact on consumer

Brand image affects consumer behaviour through its influences on the consumer decision-making process. It affects the cognitive and affective components of consumer’s attitudes. Therefore positive brand image will influence the consumer evaluation and purchase intention to form a positive attitude towards a particular brand. In addition, the congruency of brand image with consumer self-concept enhances consumer preferences for that particular brand.

However, in an article by Guardian[i], despite the general belief of consumers that branding can have a positive image, it is failing in many cases. In an age of transparency and empowerment, brands are not meeting people’s requirements. People expect large companies to be involved in social problems and their quality of life but companies are not delivering on this new social contract. Two for one promotions aimed at trying to keep loyalty cannot last over the medium term[ii].

Market implications

Marketing strategies varies with industries and their targeted customer. For example, a company manufacturing cooking oil or bread will depend heavily on its distribution channels to sell its product to consumers. More investment for marketing should also account for off-premise sales staff to help customer experience and buy the product.

However, for industries like electronics, cars etc. which can be distinguished as a high involvement products, consumers will perceive brands in a different way. Along with the overall value, they might be more interested with the perceived social value of the product. In such cases, organizations will have to invest heavily on promotions and advertisement through television and other mass media channels.

Coco cola, however being a low involvement product, is among one of the highest brand by value according to Forbes[iii]. As per the latest report, $3266 is the yearly spending against Pepsi’s $2400. However, to attract customer, coke has adopted a different strategy such that it becomes synonymous to carbonated beverage. More focussed on attitude and emotion value of its customer, they had a huge success over their competitors.

Take a look at this interesting video.

 Brand and perceived quality

Olson’s (1977) review noted that the effect of brand name generally was strong in the price cue literature, appearing both as a main effect and as an interaction effect. However, a review of the six studies that examined both price and brand effects reveals a lack of a consistent and clear relationship. Certainly there are differences in the types of products utilized, the price manipulations, and the brand manipulations offers plausible reasons for the mixed outcomes. Monroe and Krishnan (1984) observe that brand name information dominated price information in the perception of quality. However, they discovered that price had a more positive effect on product quality perception when brand information was present than when brand information was absent. This finding suggests that the interaction of price and brand information not only is strong, but that the influence of price on quality perception becomes stronger in the presence of brand information than by itself.

Fun Facts

Jaguar Land Rover is an iconic car taken over by Tata Motors. However, the brand name was not changed due to its equity value and recognition among people.

Puma sportswear came about thanks to a fight between brothers

Inside an air-raid shelter in World War II Germany, another battle came to a head. Brothers Adolph – also known as Adi and Rudolf Dassler – had been working together for years, selling shoes and sporting equipment, but the relationship had deteriorated. The presence of Rudolf and his family elicited a snarky remark from Adolph when they entered the bunker, and later, Rudolf was picked up by the American forces, accused of being part of the Waffen SS. He was convinced this was Adolph’s doing, and when he was released, they split their company, Dassler Schuhfabrik, with Rudolf moving across the river. The two companies that were formed are leaders in the sportswear industry today – Adidas (ADI DASsler) and Puma (Changed from Ruda, which stood for RUdi DAssler).

Procter & Gamble wouldn’t have existed if the founders had decided to stay bachelors

Englishman William Procter and Irishman James Gamble were destined to be at odds. From historically warring countries, they both settled in Cincinnatti, Procter as a candle maker and Gamble as a soap maker. They had to compete for the same materials, and the success of one would likely lead to the failure of the other. Love, however, has a way of working things out.

Both married into the Norris family, Procter to Olivia and Gamble to Elizabeth. The father of the Norris sisters, Alexander Norris, arranged a meeting between the two and convinced them to go into business together. Out of this union came Procter & Gamble, now one of the largest companies in the world – one that wouldn’t exist if not for the founders marrying sisters.

The economy of McDonald’s would make it the 68th largest country in the world

The scope of McDonalds is hard to fathom. It is the most successful fast food franchise in the world, present in more countries than any other fast food company. The company has learnt to adapt to every market it enters, and is currently the second most recognized company in the world, trailing only Coca-Cola. Nothing speaks more to the power of McDonalds than the economy it has developed encompassing its customers, suppliers, employees, and real estate ventures. If McDonalds were a country, its economy would place it 68th in the world, just ahead of Sri Lanka.


[i] http://www.theguardian.com/sustainable-business/consumers-brands-positive-impact-failing

[ii] Amy du Pon, head of strategic planning at Havas, told the Sustainable Brands conference in San Diego

[iii] http://www.forbes.com/powerful-brands/list/

Planning for a natural death or murder?

(Posted by Tim Bearup and Anthony Gunn)

Product Life Cycle (PLC) is a common metaphor for the stages that a product goes through in the marketplace: introduction, market growth, maturity and decline.

Companies are advised to plan for each stage from the outset so that they can align their level of investment in the product and determine when to release new products to ensure they are not caught throwing good money after bad ‘flogging a dead horse’.

Reading between the lines of some recent promotional material I noticed on TV, it seems that Channel Nine is taking this model seriously with the impending launch of their new home reno show: “Renovation Rumble”.

“The Block” has been experiencing a significant decline in viewers, and it would appear this new show is intended to be its replacement (however I suspect Channel 9 won’t admit to this until they know for sure that its new show is successful).

This decision to divert marketing resources away from The Block as its primary home reno show and into this new product has not been made before milking a vast array of brand extensions including: The Block, the Block 2, The Block 2010, 2011, 2012, All Stars, Sky High, Fans Vs Favs, Glasshouse and finally Triple Threat.

renorumble-playWhen examining the plans for the show, one cannot help but appreciate the stroke of genius in the construction of their new product (excuse the pun). Renovation Rumble will be hosted by The Block’s Scott Cam, and will feature previous contestants from The Block as well as previous contestants (now out of contract) from Channel 7’s House Rules.  Thus, rather than starting from scratch, the launch of the ‘new’ product will capitalize on their own previous investments along with the investments of their Channel 7 competitors.

Therefore, this product starts from the outset with high levels of consumer familiarity and emotional connection with both their existing viewers and with those of their competitors – thus enabling them to penetrate the home reno/reality TV watching market segment even more deeply.

However, there are some critics of the Product Life Cycle (PLC) model who believe that in many cases the demise of a product is not inevitable, but it becomes a self-fulfilling prophecy when a company believes it to be a natural path and invests/promotes the product accordingly.

oldspice - playEven if you aren’t fussed with this post – YOU GOTTA WATCH THIS (too funny)

Perhaps a stark case example of why the PLC should not always be followed to the letter is that of the Old Spice aftershave. In anyone’s language this product was a ‘has-been’ that had been relegated to old and passing generations. When I was a child I can remember my mum telling my dad to stop using it because it was for old people even back then!  If there was ever an example of a product that should be killed off and replaced according to the PLC model – this would surely be it.

But not so… Proctor and Gamble purchased the brand and through some very clever and highly invested marketing – they successfully resurrected Old Spice to a new generation without so much as tweak to the scent, the name or the logo (but the brand has been turned on its head!).

So it makes me wonder, is the Product Life Cycle theory actually valid, or is it just a self-fulfilling prophecy that starves a product into an otherwise avoidable death?