Ch. 10 - Product Concepts

Model S

While most big name auto manufacturers carry some two dozen models at a time, Tesla these days is producing only one- the Model S. While the Roadster is still sold on the used car market, the Model X's announced release set for 2014, and the anonymous high production model estimated to be on the market somewhere around 2017- Tesla is still in its infancy compared to some century-old producers. With such a narrow product mix and shallow depth, the Tesla brand is practically a synonym of their only currently produced vehicle. Since the less-than-handful of their products have had significant reputation success, the brand equity is of high value despite it's still low market prevalence.

Model X- SUV

Roadster

It is important to stress, however, that he "products" Tesla offers are not only the cars they sell, but the infrastructure that comes along with them at no extra cost to the consumer. Tesla does not merely sell the cars, but also provides the charging stations for free use nation wide that makes driving their cars a viable option. Since owning an electric car would be significantly handicapped to a traditional car if charging stations were not available proportionally as gas stations, the two go hand in hand, and create a substantially higher perceived value.
Since the benefit derived from branding is usually only relevant when a company has many products for which to utilize the associated reputation, a company such as Tesla can easily afford to market the product as opposed to the brand.