Whenever a new firm enters a market offering a distinctive innovation, their reputation is often closely linked with the success (or lack thereof) of their new product. A classic example is that of James Dyson who introduced the dual cyclone bagless vacuum cleaner. Mr Dyson was so confident that his new innovation was going to be successful that he decided to brand the product with his family name. Sources of innovation are not solely limited to entrepreneurs; established companies spend significant amounts of their revenue on research and development into new ideas. Whenever an established manufacturer considers introducing a new innovative product there is the opportunity for market success which will further strengthen then manufacturer’s brand or failure which would cause significant brand damage.
This is no less true in the automotive industry where there is a constant drive for product innovation and diversification. In some instances, these innovations are small such as the introduction of parking sensors and reactive headlights. In other situations, the innovations are fundamental to the operation of the vehicle. This will be the case with the introduction of electric driver powertrains. This market innovation has attracted startup companies establishing their brand in the EV market niche such as Tesla. The more conventional manufacturers such as Nissan, Ford and General Motors are bringing their EVs to market and will be staking a substantial chunk of their reputations on the success of these offerings.
I’m sure the CEOs of these manufacturers don’t need me to state the obvious to them however I will outline two methods that I believe could help to increase the chance of these EVs being successful. Firstly, it is important not to rush these vehicles to market and to ensure the vehicles that roll off the floorcourt are the real deal. Attention to detail and a quality product are going to be essential characteristics of the EVs people will want to buy. As the vehicles will be using such innovative technology, adequate testing and trials are fundamental. It would be tragedy if a recall had to be issued by an EV manufacturer due to some common malfunction and you can guarantee the media is on the lookout for any hint of a problem with these vehicles.
Secondly, there is an opportunity for the manufacturer to hedge their bets and establish a distinct market brand for their new EV range. Daimler AG did this with the Smart city car range which is separate from their other brands (such as Mercedes-Benz). Toyota did this to a lesser extent when they introduced the Prius. The Prius does still wear the brand of Toyota but many individuals perceive it as being a unique brand connected with hybrid vehicles. By establishing a unique brand for their EV range, conventional manufacturers will limit their exposure to risk should things not go to plan however, they will also limit the brand boosting possibility should their EV be successful.
Manufactures must also realise that their brands are not the only things on the line. The electric powertrain concept will be judged by these first mass market EVs and initial impressions can leave lasting and hard to shift consequences. Hopefully the desire to maintain a positive brand image will encourage manufacturers to bring high quality EVs to the table. It may also encourage them to be over cautious and delay their introductions. Whilst ensuring quality is essential, so too is getting these vehicles on the road and so a balance must be struck. The manufactures that strike the correct balance between quality and timing may significantly improve their challenges of boosting both their sales and their brand image.
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