Article summary
The article written by Bertel Schmitt concerns the topic of Tesla's success on the market, in particular, the lack of it, considering the active work of the competitors to boost their products and to promote them. While the statistics collected by the EV Volumes database provide a predict a positive development of the car industry in terms of use of the electric vehicles, for Tesla this news is not a positive one. The problem for Tesla lies in the fact that the majority of the vehicles that would be sold on the market would belong to the places where Tesla does not have success in contrast to its competitors.
Tesla's concentration on the idea that the American market is the one that requires electric vehicles is a mistake
The loss of success occurs based on several factors that influence the promotion of the brand and its perception by the customers. One of the problems that are highlighted in the article is the inappropriate targeting of the consumers and the markets, which leads to the loss of success.
The raised in the article problems also concern the strategies of the company's in terms of promoting the brand and products. Not considering the market research tends to result in the negative outcomes for the company, in particular in the loss of clients and business position. Besides, the brand always needs promotion to win the consumers and the markets.
In spite of this, having gained recognition in the home market, Tesla believed that their innovative view and brand name would make all the work and sell their cars. Nevertheless, such approach to the promotion of brand appeared unsuccessful. Hence, the mistakes in the promotion of the brand name, as well as the reliance on the strategy of self-marketing of the brand, resulted in the reduced success of the company. While they were focused on their strengths in the promotion of the positive image of the company, they have neglected the negative
Besides, it depicts the negative outcomes to which negatively designed marketing strategy might lead. Finally, it also emphasizes the essential need for the companies to consider the aspect of marketing research to become more successful.
What I learned
The article shows how crucial is the consideration of numerous aspects of the marketing strategy of the company. Actually, it shows how a company should not behave on the market by highlighting the problematic aspects that Tesla faced. After reading the article, it became clear that the brand needs support on the side of the managers and correctly designed strategies to retain its success and to increase its sales. The example of Tesla with its belief in the primacy of the American market has resulted in the decrease of the consumers in other markets and the loss of the large and influential market share.
The article shows that it is crucial for the company to observe the developments in the market and to adjust company's practices in a respective manner. Besides, the article deepens the idea of how important is the use of correct targeting and considering of the market needs. While the company usually should target several categories of consumers, the concentration on a single target group might have negative
This research seeks to reveal the importance of marketing strategies in today’s complex and competitive business world. For this reason, this study will discuss various theories, issues and approaches of the marketing linking them with W.L. Gore & Associates and thereby propose the best options, ideas, strategies and techniques for the improvement of the company. To reach the points, this study will especially collect secondary and qualitative data and information.
In December of 2010, the world’s first, entirely electric vehicle was introduced to the car industry and Nissan was responsible for launching this innovative car known as the Nissan Leaf (“Nissan Product Information”). According to business reporter Michael Strong, Nissan Motor Company’s CEO Carlos Ghosn previously set a goal of selling 1.5 million electric vehicles by the year 2016. However, in 2013, Ghosn announced that it is very likely that Nissan will not reach this goal. He believes this may be achieved four or five years later than expected. Ghosn and Nissan Motor Corporation have evaluated the weaknesses of the Nissan Leaf and have discovered the contributing factors in the surprisingly low sales (Strong). In this commentary, it will become evident if Nissan has made effective improvements to pick up sales of this innovative vehicle that could result in the future of cars all around the world. The reasons for their underperformance will be evaluated and their ability to make the necessary changes to improve sales will be evaluated. A SWOT analysis has been set up to analyze the Nissan Leaf, its strengths, weaknesses, opportunities, and threats. This will show if Nissan has made the necessary changes to better their sales of the Nissan Leaf.
Tesla Motors Case Study Tesla Motors is a company that produces and sells automobiles. Tesla is not an 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.
...rther then the end of 2010, the introduction of the electric car is not far to come. With proper government regulations and consumer knowledge, adoptability of the electric car is possible. However, one can drastically differ in opinion as to why the required elements to support such a vehicle were not readily planned to facilitate such a change. The inadequacies draw wavering concerns for both consumers and business looking for the return of value and profit. The larger picture needs to be remembered in which oil is not a renewable resource and results in pollution and environmental hazard. Consumers and business must work together to overcome the roadblocks down the road and support each other in the introduction of and future of the electric car. Adjustments will have to be made on both sides to ensure success and minimize the society and economy disruptions.
Chiefly, and most apparently, it is the goal of Tesla Motor to generate demand for Tesla vehicles (Andrade, Holloway, Payne, Roy & Sheffield, 2015). In turn, demand will drive leads to the Tesla sales team (Andrade, Holloway, Payne, Roy & Sheffield, 2015). Tesla will continue to build long-term brand awareness, in addition to continual management of corporate reputation (Andrade, Holloway, Payne, Roy & Sheffield, 2015). Tesla Motors will expertly manage the existing customer base to create loyalty and increase customer referrals (Andrade, Holloway, Payne, Roy & Sheffield, 2015). Additionally , Tesla Motors hopes to enable customer input into the product development process (Andrade, Holloway, Payne, Roy & Sheffield, 2015).
The focus of Tesla Company is on a niche in the automotive industry, which is building and selling electric cars. To a company like General Motors, the electric cars line of business is considered a side business, hence it only needs to study the patterns of Tesla’s cars then build on of its kind that will take Tesla out of business (Debord, 2015).
As we know, the world we live in is trying to convert from gas powered vehicles to electric powered vehicles. Even though there are many car companies attempting to carry out this goal, not all of them are successful. One of the successful companies is known as Tesla Motors. Tesla makes exclusively electric cars, trying to focus on improving Earth’s pollution. So far, they have been very successful.
People are buying the product which gives them prestige. Marketers have interest on consumer psychology and they are playing with every day by showing that their product will give prestige in the society. It’s true that the transparent societies now needs brands image. Marketers analyze the interest and needs of consumer than create the product according to the need of the society. Brand can attain the people attraction and the business can have the good reputation by giving satisfaction to consumer. If the brand gives satisfaction and function are according to the expectation of consumer than the brand gets good image on the mind of consumer. brand image is great weapon to use for the competitors it builds in years , at once the business gets brand image it has competitive edge from other brands in the market. When consumer rely on the brand the company can create the long term relation with the consumer, in other words (CRM) consumer relationship management. The brand image has effect on the choice of every individual there believe and attitude change their preferences. Brand image can be effected by price as price is an important part for consumer when they are making purchase decision if they find the value of brand is equal to the pricing they purchase that brand if not they refuse it. Similarly the image of brand can be effected by the attributes and features or
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
This has resulted in exposing many automobile users to unpredictable prices of fuel. These issues were, however, the reason for the inception of Tesla Motors so as to bring into existence another set of automotive which serves the similar purpose but uses another form of energy that is electricity to drive them instead of the disadvantageous gasoline-powered engine. This invention was influenced by a number of factors in terms of its planning and performance (Hunger, 2010). Factors affecting Tesla’s planning and performance. The success of any organization, just like the Tesla Motor, largely depends on the planning of the activities by the management team in the company.
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.
As a result of the increased demand of cars, the competition among car companies is becoming intense. Although the market of car is the biggest growing market in the world, there are still some companies who make cars failing year after year. However, there are some outstanding car companies such as The BMW Group performing distinctly.
A differentiation strategy and generic business strategy seeks to create higher value for customers than the value that competitors create, by delivering products or services with unique features while keeping the cost at the same or similar levels. Tesla cars have a brand image in the market they are the best in the industry. This differentiation is increasing Tesla market share. Although, BMW series cars had 2-3% US market share, they are not giving as mileage as Tesla cars are giving. A generic cost-leadership strategy, in contrast, seeks to create the same or similar value for customers by delivering products or services at a lower cost than competitors, enabling the firm to offer lower prices to its customers. Tesla cars are very expensive. As an introducer, its products are expensive initially but, when the production and demand increased EV’s value will reduce. Also, the company focused on the scope of competition—whether to pursue a specific, narrow part of the market or go after the broader market. Tesla focused primarily on the narrow market globally that is, since, its cars are expensive for more sales and to get more revenue it started selling in around 30 countries via the internet and local Tesla stores. Now, the company is also concentrating on the mass market, which makes it turn into a profitable company.
However, companies such as Nissan and Suzuki may be losing customers even though of Tesla's weakness since they have an electric vehicle that offers luxury as well as, eco-friendly.
This article studies the relationship between advertising and sales promotions and their impact on brand equity. A main priority for most companies is to establish and achieve a strong and powerful brand name. A company can build a strong brand name by creating the market for their customers want. By creating a strong brand name, a company will become more established. Brand equity is important to the producer, retailer and consumer. The consumer knowledge of the brand says how the producer will produce and market the product. The consumer knowledge of the brand name also determines the quantity the retailer will sale. Brand equity can have a positive or negative effect. A positive effect would be for everyone to recognize the name and purchase the product. The negative effect would be to have the product recalled. Brand equity is important because it can offer many advantages for a company. Brand equity can create a high demand for your product, reduce marketing cost and the company’s brand name will have high credibility.