Marketing in the News: Rivian Losing Sight of Their Value Proposition with Their New Vehicle

    I chose to write about Rivian and their subsequent marketing campaign involving their new vehicle the R1S. I’m super interested in the world of Electric cars because I believe the technology is the way forward for the future. Naturally, Rivian whose whole value proposition is based around their electric cars is a company I am interested in. 

      Car and Driver, one of the leading sources of insight and reviews in the automotive industry recently delivered their take on Rivian's new vehicle the R1S. The article points out that they've excelled at what it has always done. “the R1S's fundamental mission is to ensconce up to seven passengers and their stuff in upscale comfort, a task it has excelled at since its 2022 debut”

   

   But here lies the issue with the vehicle and Rivian’s mission. “What has changed, however, is the competitive landscape: the R1S is now facing increased pressure from several new, lower-priced three-row Electric Vehicles alternatives, including the Kia EV9 and the forthcoming Hyundai Ioniq 7, as well as the similarly priced Volvo EX90” Rivian's competitors and big motor companies have bridged the technological gap that Rivian had during their first vehicle release in 2022.

        Rivian's value proposition can be boiled down to three central pillars. The first of these is sustainability. Rivian’s promise is to not only produce cars for a sustainable world but also to produce these vehicles in a sustainable way. “We aim to source 100% renewable energy to power our manufacturing plant in Normal, Illinois by 2030. We also intend to power other Rivian facilities with 100% renewable energy” (Stories Rivian). Rivians' second core pillar of their value proposition is to sell you a vehicle that you can adventure with and that will provide you with unrivaled utility for the outdoors. Lastly, Rivian promises to sell you a car with unmatched electric vehicle technology amongst automakers. 

    The new challenge for Rivian is competing with big-time automakers as their technology catches Rivian, as well as dipping into Rivian's market share by manufacturing vehicles with similar selling points for the consumer. These automakers can now match Rivian with their pricing with the R1S SUV. A great example of this is the 2025 Porsche Macan EV. Rivian's major competitive advantage here is that the R1S still has over 100 miles more range than the Porsche and would still widely be considered the better vehicle for off-roading. Porsche has still significantly cut Rivian's market share for luxury electric vehicles though.

          This makes Rivian incredibly unique, among car makers. Rivian is appealing to

a new generation of wealth. Who arguably are more concerned about their impact on the environment than having a name brand like Porsche but also are incredibly active with their outdoor hobbies. This is evident in the features Rivian's vehicles have. “a drain at the bottom of the spare-tire space, so you can fill it with ice and beverages.) One of Scaringe’s kids favors the “gear tunnel,” a storage area good for skis, fishing poles—or crawling through if you are small enough.”(Times). The beginning of this Times article goes so far as to also say “The California automotive startup, which aspires to be the Patagonia of electric vehicles”

            The issue with Rivian's new media blitz with the launch of their new vehicle the R1S is that they fail to address the obvious. What makes Rivian's line of cars magical? The R1S is a beast of automotive technology. It makes it the perfect blend of Toyota off-roading ingenuity, and Tesla Electric Vehicle innovation. Don't you wish you had the technological advantages of a super advanced Electric vehicle combined with the go-anywhere attitude of an off-roading SUV like a 4runner? Well, buy a Rivian R1S. If I were the product manager I would steer away from this mass marketing approach, and target the fringes which is what this automotive company was built on.

          In this assignment, I learned that companies can sometimes lose sight of their value proposition. This can lead to competitors within the industry gaining the advantage with products that the original product was never supposed to compete with in the first place.

Links 

Car and Driver Article: 2025 Rivian R1S Review, Pricing, and Specs (caranddriver.com)

Stories Rivian: OUR IMPACT JOURNEY by Rivian - Rivian Stories

Times Article: Rivian Is One of the 2022 TIME100 Most Influential Companies | TIME