Product Positioning and Strategy
Customer Value Proposition
Tesla offers adults who want a luxury car without paying a fortune in gas prices with future generation electric cars, that where style, performance, and the environment are never sacrificed.
Points of Difference
Here is the list of characteristics that allows Tesla to stand apart from its competitors:
Brand Name
Tesla has managed to build a notable brand name for itself not in the electric car market, but in the overall automotive industry. Its brand performance offers a robust, reliable and unique image that gives customers the satisfaction that electric cars can be stylish, reliable, hassle-free and much less bulky than internal combustion engine vehicles.
Battery Supply chain
…show more content…
Firstly, it can start with advertisements on the television, in magazines, on billboards, and prints in the newspaper. Basically, any platform that allows Tesla to showcase rich quality images of its cars. Another form it can use is Sales Promotions. Create ads that entice the customer to take part in a promotion, such as advertising a free item received when bought with the car, or 24 months warranty or even an attractive payment plan.
Marketing a new MStar model to the market as an exclusive model for the U.A.E, for the consumers of the elite class who wants a Tesla to add to their top range list of cars such as Lamborghinis. Introducing this model will appeal to the elite and wealthy people in the market, who would want to buy into the brand.
Positioning
The MMXX is Tesla’s flagship model which will be the launching face of Tesla in the U.A.E. It will lead to the image as it will be the only entirely electric luxury sedan in the marketplace starting at $120,000. It will pose as a luxury car with great performance that simply has the added benefit of being a fully electric vehicle without sacrificing style and performance. And appealing to the elite market is the MStar model starting at a price of $400,000.
Marketing Tactics
Pricing
The major encounters that Tesla and Faraday faced included social, economic, intellectual barriers. Considering socially, Faraday was considered to be a “...high-priest of Nature, revealing the hidden forces...”(Shortland) People saw Faraday as the highest of his field, the one who was the closest to God in relation to understanding his creation. This also shows the social standard at this point in time, many going to church and understanding when someone references a religious point. Also, for social encounters, we have Tesla with his description f what the future will be like. This was not a reaction to the society that Tesla was around, but a prediction of what they were to become. Tesla, hoping to see that people would grow to become stronger
The contraposition for Tesla Motors is the rapid service received. Despite not having a traditional infrastructure, the company beats it opponents in its operational expeditiousness. The Palo Alto automaker’s response time for issues is often overnight, and always beyond convention. One customer with some play in his gears had his entire drivetrain replaced.
Tesla motors is a company that produces and sells automobiles. Tesla is not any old automobile company. Tesla specializes in all electric cars that run 100 percent on battery and focuses on the future. Tesla is looking into the future and realizes that fossil fuels will eventually run out. Tesla is moving toward a zero-emission future for the better. A tesla is a vehicle, an all-electric vehicle that combines safety, performance, and efficiency. In 2016 Tesla’s annual revenue totaled to 7 billion dollars. Tesla is a profitable company. Tesla has seen potential growth in annual gross income, since 2012 from earning 30 million dollars to 2016 earning 1.5 billion in annual gross income. (1) The Tesla factory is located
On June 12, 2014, Elon Musk shocked the business world by revealing that Tesla Motors will not initiate patent lawsuits against anyone who uses their technology in good faith (Desjardins, “10 Mind Blowing”). For those who don’t know who Elon Musk is, he is the CEO of SpaceX and the CEO of Tesla Motors. Electric vehicles have currently been creeping up on the world and are starting to become a big thing. One company that I think is leading the movement of electric vehicles is Tesla Motors. At the moment Tesla has three different car models that will all be available by at least 2020. Listed on teslamotors.com there is a Tesla model S that comes in three different battery sizes, the Tesla model X which will be released in 2016, and then the
In 2006, Musk coined what would soon be held to represent Tesla Motors overall long-term corporate strategy (Tesla Motors, 2015). It is to “build a wide range of models, including affordably priced family cars” (Tesla Motors, 2015). Musk explains the primary reason for building out Tesla Motor’s spectrum of pricing and vehicles as being environmentally concerned. Musk (2006) continues by expressing “the move from a mine-and-burn hydrocarbon economy towards a solar electric economy, which I believe to be the primary, but not exclusive, sustainable solution” (para
In the recent past, Tesla has been noted as a great competitor in the automotive industry. This is attributed to its three huge competitive advantages. Generally, the advantage lies in its ability to bring about innovative disruption in the industry. This include; a strong battery supply chain that is sustainable in itself, a supercharger network celebrated by the customers and a software system several leagues ahead of its competitors (Zach, 2015).
One of the easiest ways to reduce the amount of carbon emissions released into the air is to use alternative energy sources. Electric cars is one of the cheapest ways to reduce the amount of carbon emissions into the air. For example, the company Tesla is an all electric car company. At full charge, the Tesla Model X can drive up to 300 miles without having to recharge. Also, their newest car, the Tesla Roadster, was made to compete with supercars and is one of the safest cars anyone can ever own. While is has the quickest acceleration in any production car, it also has a mile range of 620 miles on a full charge (Tesla). Tesla is one of the only car companies that produces only electric cars. The company is trying to show everyone in the world
There are several great traits about Tesla vehicles. The model S, which is Tesla’s first sedan, is Consumer Report’s “top pick” in the survey. Not only were they top pick in the sedan class vehicles, but they were also the overall top pick among consumers. This means that in a survey it ranked higher than GM, Ford, Toyota, Honda, and many others. (LeBeau, Phillip) This is quite the accomplishment. One of the reasons for its highest picks is the car high safety ratings. The NHTSA or National Highway Traffic Safety Administration awarded the Tesla Model S a five star safety rating in every category and subcategory. They would’ve rated it even higher if they could; sadly, the NHTSA’s scoring system only goes up to five. There is another chance for the Model S to score higher. The VSS or the Vehicle Safety Score, which is the safety score given back to the manufactures gave the Model S a 5.4. This score is higher than any class of vehicle on the road ways to date and has the lowest risk of any injury front, side, rear, and rollover included. (LeBeau) This car is so incredibly safe that there are reports of the test equipment breaking before the car itself does. Tesla also has a quite controversial method for selling ...
Tesla Motors initially gained widespread attention by manufacturing the Tesla Roadster, the primary totally electrical sports automobile. The company's second vehicle was the Model S, a completely electrical luxury sedan. Tesla additionally markets electrical powertrain elements, as well as lithium-ion battery packs, to automakers, as well as engineer and Toyota. Tesla's CEO, Elon Musk, has said he envisions Tesla as an independent maker, geared toward eventually providing electrical cars worth cheap to the typical client.
Tesla Motors was founded in 2003 by a group of intrepid Silicon Valley engineers led by successful business owner, Elon Musk as another one of his top successful ventures over recent years past. They utilized Nikola Tesla into their brand name because their engine model was created using his personal models and technology. Musk’s goal revolves around accelerating the world’s transition towards electric mobility through providing a range of increasingly affordable electric vehicles, while simultaneously catalyzing innovation within the industry. The company designs, manufactures and sells electric vehicles and electric vehicle powertrain components. They are also the only automaker providing highway capable electric vehicles in North America and Europe. According to recent paperwork filed with the US Securities and Exchange Commission, Tesla produces at least 15 cars per week — mostly custom-ordered vehicles manufactured to owners' specifications.
Manufacturing will run on 100% renewable energy helping our environment a lot. As of the year 2018 almost 500,000 cars should be produced. Tesla’s market value is $33.5 billion. Tesla’s stock market has risen over 1000% since 2012. To start tesla Elon Musk invested $70 million of his own money. Elon Musk is a successful businessman with 4 companies valuations over $1 billion. Elon Musk has a networth of $12.1 billion. Many of the Tesla sale models are illegal in many U.S.
Having both marketing strategies and both products analyzed and the history of the important marketing decisions made and techniques used by the company written down, it will be interesting to perform a critical analysis of how the market and business realities made an impact on the marketing of Tesla Motors, why it happened and what was the effect. The presence of the CEO and the impact he makes on the public and investor confidence will also be critically reviewed. Based on the results, a list of recommendations will be composed for both representatives and marketing specialists who work in the same or similar
Model 3 being Tesla's first mass market car with a base price of $35,000, it is the key to their business model, by costing much less than their two other models. Akshay Anand, executive analyst for Kelley Blue Book, pointed out how important the car is for Tela. "If Tesla is solving its 'production hell' issues, it has a chance to get on track toward its lofty expectations." He also said "Regardless, the reality still remains: Tesla needs to get the Model 3 right in order to succeed as a company." Even though they have hit several roadblocks the demand for Model 3 is constantly increasing, meaning the expectations are still there.
Tesla Motors Inc. is an American public company which is known worldwide for its experience in designing, manufacturing and also the selling of electric cars and electric components for vehicles. The motor was started back in the year 2003 in San Carlos, California in the United States (Teslamotors.com, 2014). The company had its headquarters in Palo Alto and at the time of its inception, Elon Musk was its chief executive officer (CEO) (Hunger, 2010). Environmental concerns have been raised from time to time because of the dependency on the gasoline-fueled engine as the chief auto powertrain technology.
There is no doubt that electric cars are the most appealing from of transportation in the world. They provide two of the most important key points of good transportation: reliable and efficient. They are reliable due to their simplicity of their power trains and the advancement of technology they have. They are efficient because they don't use any gasoline and because their motors can pass the zero-emission standard. Even though they may seem like a boring form of transportation, they offer good features that help keep the Earth's air clean and they help reduce pollution.