What Tesla Could Bring to Apple

Hint: It’s not the car

Business publications and other media were abuzz  last week about a meeting that took place between Elon Musk and Apple.  The speculation mostly centered on an acquisition of Tesla by Apple. After all, Apple has cash; Tesla operates in a capital-intensive business. There is a foregone conclusion in almost every article that Tesla needs Apple, and with Apple’s help, Tesla will thrive.

Certainly, there is a lot that Apple can do for Tesla’s business.  Who else is better suited to perfect the connected car? And, Apple can bring some of the best CRM practices to a category in dire need of such capabilities.  Ditto for their retail savvy.  And, of course, Apple’s aforementioned cash reserves don’t hurt.  But all this may miss the point of the real power of such a merger.  The answer may lie, instead, in the magic of these brands.

These are two like-minded brands. Each plays by their own rules, eschewing category conventions, letting their brand values be their guide to category breaking innovation.  Each began as premium niche players with the desire to dominate the market. Each has strong design sensibilities and relentless attention to detail.   But perhaps the most important similarity is that each has been led by a strong-willed visionary, arrogant enough to believe in what seems impossible, and make it real.

So rather than focus on what Apple can do for Tesla’s business, perhaps the press should be focusing on what Tesla, in the form of Elon Musk can do for the Apple brand.

Since Steve Jobs’ death, the Apple business has continued to thrive, but the Apple brand has lost its vision.  There has been no revolutionary product, but rather incremental improvements to existing products.  While Apple may well still be the gold standard in many categories, the competition has closed the distance between them enough to give Apple some credible competition in the categories that Apple created.  Simply put, Apple has stopped behaving like Apple. This is because Steve Jobs’ fanatical, some would say tyrannical leadership style and crystal clear vision drove the brand to set new standards in innovation and marketing.

And that’s where Elon Musk comes in.  Elon Musk not a car guy, and based upon his track record is likely to get bored with the car business very soon.  Elon Musk is however a fanatic. He is a fanatic who is always looking for the next big thing, and is not afraid to enter uncharted waters.  He made his fortune in technology, and his current business investments span everything from space travel to solar power.  He has envisioned a new form of mass transit that will allow people to travel between Los Angeles and San Francisco in 30 minutes. And he has the audacity to say is feasible! There seems to be no limit to his vision, or the categories to which he seeks to apply it.

So, if Apple were to acquire not Tesla the company, but Musk the visionary, it could mean that the Apple brand could start behaving like Apple again.

A Tale of Two Brands

Why Coke and Cadillac Can Have Such Different Takes on the American Dream

Recently, Coke and Cadillac have released polarizing ads that capitalize on their American heritage.  Being quintessential American brands, both are entitled to represent a point of view on the American Dream. Yet, these ads couldn’t be further apart in their stories or the way they tell them. Coke’s ad features recent US immigrants singing ‘America the Beautiful’ in their native tongue.  Cadillac is introducing its new electric model by featuring a monologue by an affluent American who derides other cultures who value time off, and extolls the virtues of the American work ethic and the rewards and privilege that it brings.

And while you either love or hate these ads, taken together, they are fantastic examples of how brands can credibly extend their own stories while maintaining consistent brand behavior across time and borders. They both remain relevant in ways that will allow them to grow their business in new markets and with new audiences.

Ads 100 Years in the Making

Established only12 years apart, Coke and Cadillac have existed for more than a century. Each brand was founded on uniquely American ideals, from which they have never wavered. Throughout their existence, these brands have behaved consistently..so much so that if you go back in time, it seems that the briefs for these current ads were written over 100 years ago.  

Coke: The Dream of Accessibility

Coke’s long time leader, Robert Woodruff, (who took over in 1919) transformed a floundering Coke with the vision of being ‘within arms length of desire’. Coke was defined by accessibility.  And for over 100 years, accessibility has been the driver of all of Coke’s behaviors…from its global business strategy to its warm and inclusive communications tone. 

So, the ‘America the Beautiful’ ad is no more than the latest expression of Coke’s accessibility.  It is not only culturally relevant as the face of America changes, but also serves a very specific business need.  As carbonated soft drinks lose their luster,  Coke’s share of the total beverage market is shrinking.  Coke needs to win favor with the next generation of Americans if it is to maintain its position as one of the most valuable brands in the world.  So, Coke's latest  accessibility message is designed to appeal to its new target audience.  In this way, it is advancing its brand narrative, while maintaining the plot.

Cadillac: The Dream of Exclusivity

In 1915, Cadillac ran a now-famous ‘manifesto’ ad entitled ‘The Penalty of Leadership’.  Adopting a brash, arrogant tone of superiority, this ad described the higher standards to which a leader must hold ones self if they are to continue to reap the rewards of their hard work. It even goes as far as dismissing those who cannot measure up. Thus, Cadillac has always been about how American culture rewards hard work and achievement with status, and how it excludes those who don’t.  It is very clear to see that the current ad is a continuation of this narrative, in both tone and message.

Interestingly, Cadillac (and General Motors) has made a conscious decision to focus its business in the US and China.  It is expecting China to be a significant growth engine for the future.   So it is likely not a coincidence that a brash, ‘status through achievement’ tone and message is as culturally relevant to the next generation of luxury buyers in China as it is in the US.

Advancing your brand story

So what does this mean for brand owners?  

It does not mean that brands shouldn’t evolve, or that they should stay stuck in the past. Consider the fate of another iconic American brand, Polaroid...a brand that failed to advance their story. Polaroid was founded on the idea of instant access, something that has become even more relevant today than when it was founded. But Polaroid lost the plot, and tied itself to a single product proposition, rather than an enduring brand idea.

What it does mean is that regardless of current and local cultural sensibilities, brands should not bend themselves to the point of breaking. Imagine if Coke started to make and promote 14K gold cans in China, or if Cadillac sponsored the next ‘Occupy Wall Street’? Rather, brands should look for ways to respect and advance their heritage while moving into the future. Regardless of the time or location, brands must find an audience that will be receptive to their story and make it relevant to them.  This is how great brands will own a successful future.

http://www.youtube.com/watch?v=443Vy3I0gJs

http://www.youtube.com/watch?v=Q4hI6koIRYk