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Navigating the Intersection of Luxury and Innovation: A Comparison of the Burberry and Tesla Brands

Though I do typically appreciate the nice things in life, I have not been a major consumer of luxury goods, like those sold by Burberry. When considering the three customer segments described in the case—absolute, aspirational and accessible—I would not consider myself to be in any of them, though I am (obviously) closest to the accessible segment, those who see a luxury good as a symbol of a “membership badge” and to whom “price is an important consideration.” For this post, I will compare the Burberry brand to the Tesla brand, the topic of my Branding Lab project. I will consider my early associations with these two brands and then compare some of the challenges and opportunities they have faced. 

To describe my experience with Burberry and Tesla, I will take a trip down memory lane. When I was in middle school, there was a girl in the class ahead of me who had a classic Burberry trenchcoat (it was black with the iconic Burberry check on the inside). I remember it vividly, my 7th-grade self thought this was the coolest thing. I saw this as a “membership badge” and assumed this girl must be sophisticated, classy, and likely wealthy. I probably asked my parents for a Burberry item for my birthday, knowing they would never grant that wish…and they did not. Flash forward to 2015…my college classmate’s dad bought a Tesla Model X SUV. I didn’t even know people were buying Tesla’s outside of California, and I was impressed. Though I barely knew this classmate, my initial impression was that her family was quite ahead of their time and that they must be connected and affluent. They were likely in the “absolute” or “aspirational” customer segment, as described in the Burberry case. I assumed (and hoped) that they also cared about their environmental impact, hence the early switch to an EV. 

Burberry and Tesla both have strong brand perceptions associated with luxury, innovation, and forward-thinking. They each operate across different customer segments (as explained in the case for Burberry) as well as different geographies that bring nuances, challenges, and opportunities to each brand. For example, while the Chinese market represents a significant growth potential opportunity for Burberry, high taxes and perception issues are preventing Burberry from capturing that market value. For Tesla, there is similarly an opportunity for vast global expansion, which it is currently undergoing, though it can also be very costly and time-consuming to obtain the necessary certifications to account for regulations and standards for vehicle safety and emissions across global markets. And finally, though they were both on the leading edge of their respective industries, Burberry has grappled with competition from luxury rivals, while Tesla has recently faced increasing competition from traditional automakers entering the EV market. Although operating in very different industries, there are several ways that the luxurious Burberry and Tesla face similar opportunities and challenges.

Note: image generated using Microsoft Copilot with the prompt: "Burberry check pattern on a Tesla vehicle."

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Diffusion of Plant-Based Meat Alternatives: Becoming Mainstream or Losing Steam?

The HBS article, Four Products: Predicting Diffusion, allowed me to better grasp the concept of product diffusion. As I read about the peanut butter slices, silver bandages, satellite radio, and digital scents, I began to think about other products that have been adopted across their target market in recent years, as well as some that have not had as much success. After this reading, there was one product category I wanted to dig deeper into: plant-based meat alternatives, such as those from Beyond Meat and Impossible Foods. While I have only had a brief stint as a vegetarian, I am quite environmentally- and health-conscious, and have been intrigued by ways to cut out meat products from my everyday diet. 

For a bit on the history… Beyond Meat had its first product launch in 2012, while Impossible Foods launched in 2016. In 2019, Beyond Meat had the most successful IPO of any company since the 2008 financial crisis (source: Bloomberg). Later that year, Impossible rolled out its Impossible Whopper in Burger Kings nationwide (source: CNBC). According to Vox, “the industry managed to nearly double US sales from mid-2017 to 2020,” but sales have since leveled off. I believe much of the successful product diffusion around 2019-2020 can be attributed to both a pure rise in veganism/vegetarianism and a closing divide between vegans/vegetarians and those who do not follow a particular diet. I would consider myself to be in the latter group, but moving closer to the former with time. 

While I do eat meat and I recognize alternative meat production and consumption may not be all we hope it might be, I am increasingly curious about why the “rate and scope of product adoption among the target market”—or “product diffusion”—might have been so high for plant-based meat. First, with such vast concerns about the environmental impact of traditional meat production, I believe alternative meats have proven to be an attractive option. Additionally, a growing awareness about animal welfare issues has led many consumers, like myself, to seek alternative options to replace meat products in their diet. And finally, though opinions on the true health impacts are mixed, consumers see plant-based alternatives as a more healthy option than red meat, for example. Thus, I have been following the entrance (and diffusion!) of companies like Impossible and Beyond Meat, which have reflected and captured a growing shift among consumers who wish to make more sustainable, ethical, and healthy food choices. I am curious and excited to see whether these products become increasingly mainstream or just lose steam!

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Navigating Disruption: A Comparative Analysis of Concha y Toro and Tesla

In this post, I will compare the Concha y Toro case—which covers innovation and key decision points in response to evolving dynamics in the global wine industry—to the automaker Tesla, which my team will be covering for our Branding Lab project. Though there are obviously key differences in their products, Concha y Toro and Tesla are disruptors in their respective industries, and they each have built strong brands that resonate with their respective consumers. 

Concha y Toro is based in Chile, which is considered a “New World” wine producer. The first winery listed on the New York Stock Exchange, Concha y Toro is a trailblazer in the wine industry, often competing with Old World producers for market share across global markets. According to the case, Concha y Toro’s market strategy focused on initially entering with a “low price-good quality product” and then upgrading their product offering over time. Concha y Toro prioritized product quality over marketing and eventually achieved recognition in the high-quality wine segment. However, their success has not been entirely smooth. An oversupply of wine in global markets, alongside other issues including a revaluation of the Chilean peso, has put pressure on sales prices, thus leading to a drop in Concha y Toro’s operating profits. 

Similar to Concha y Toro in some surprising ways, Tesla may be considered a “New World” car producer, when compared to more traditional manufacturers in the U.S. (GM, Ford) or foreign manufacturers (Toyota, Honda, BMW). Like how Concha y Toro challenged Old World wine producers, Tesla disrupted major players in the automotive industry with its innovative electric vehicles. Furthermore, I believe both companies have built strong brands that resonate with their consumers. While Concha y Toro highlights its focus on quality products as described above, Tesla has positioned itself as a leader in “accelerating the world's transition to sustainable energy” (from Tesla website). Unfortunately, also like Concha y Toro in 2006, Tesla is currently facing a major decline in its profit margins as a result of deep price cuts aimed at stimulating sales. Today, Tesla announced that it will cut more than 10% of its global workforce (source: WSJ). Only time will tell how Tesla might rebound and on what timeline, but I look forward to exploring this case further for my Branding Lab project! 

Note: Though I did not recognize the name Concha y Toro before reading this case… upon seeing Exhibit 16, I realized I have purchased their Casillero del Diablo Cabernet Sauvignon and Frontera Merlot on multiple occasions! While I tend to not know wine brand names, this also *may* highlight a brand weakness for Concha y Toro :)

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Building Distinct Personalities in the U.S. Beer Market: Heineken & Corona

Corona and Heineken, both prominent global beer brands, have faced several highs, alongside a few lows, as they’ve entered and sustained a presence in the competitive U.S. beer market. While many brands have shuffled around their images and social identities over time, Corona and Heineken have largely maintained consistent branding and distinct personalities, thus contributing to their widespread recognition. In the minds of consumers, however, the two brands have nearly opposing brand associations. The Heineken brand, appealing to an older and more sophisticated crowd, evokes an image of tradition, consistency, and quality in the mind of its consumers. On the other hand, Corona’s “Fun, Sun, and Beach” guiding messaging creates a relaxed and “[unpretentious]” image. The case reinforced what I believed to be true about each of these brands, one of which I consider myself to be a loyal consumer and the other a bit less so :) .

The two brand’s advertising campaigns have contributed to these distinct associations. According to Heineken CEO, Michael Foley, “People don’t drink beer, they drink marketing.” For Heineken, advertising campaigns have continuously emphasized product quality and sophistication, often highlighting the brand's brewing operation and history. Corona’s advertising, on the other hand, features beach and party scenes, with campaigns like “Vacation in a Bottle” and “Change your Lattitude” ads. Through these campaigns, I believe the meaning is co-created with their consumer, who may appreciate the visual of being relaxed on a beach with a Corona (and a signature lime, of course!) in hand. Cheers!