It is not so easy to drag equity from one brand to another.
Tesla’s $250 tequila has reopened the debate, polarising industry professionals. With a branding manual in hand, this tequila would never work under the Tesla brand: it would be considered unstrategic, in an orbit too far away from the parent brand and its activity or positioning. But what if it’s just about showing that Tesla is capable of doing anything it sets its mind to? Is brand confidence enough to transcend into another sector? Is it a waste of resources? Or something only iconic brands can afford?
While it is clear that a well-built brand has an easier time expanding the business focus, we must tread carefully, avoiding opportunism, jeopardising the trust built or losing focus by trying to address scenarios in which we are not experts. That said, who wouldn’t spend a night at Apple’s hotel?