Marketing Essay: Tesla Model X SUV: Target Market, Product Description, And Value Proposition.

Discuss about the Marketing of Tesla Model X SUV.

Marketing principle is the basic factor of marketing in which a product establishes in the market and company understands the process of >marketing right marketing approach for the product. In case of new product launching and reach them to customers is the main attraction of the process. The marketing principles bring some new ideas, concept and make a good use of technology for the sustainable condition of the organization. An organization makes their move towards innovation when they are in the position where brand name of the company and product and service deliverance by them are rated highly by the customers, then only they take that risk to bring on some innovation with the product (Birk 2015). The car is nowadays are quite engaging option for the people and marketing of that car will be innovative enough to reach all kind of people, which attract them at per though they have not had this capability to own it. Perception and taste is the basic value that changes as per the change of people mind, in that case, place of the business, promotion, price and the quality of the product is also important to reach their endeavor to customers and even if they happy to deal with that, organized form of business enhancement will be there.

In this paper, the basic marketing position and target market of Tesla Model X SUV is the key product and the position along with the situation in the marketplace is the key concern for that (Tesla.com 2018). Quality of the product, target market and integrated marketing mix of place, price, product and promotional strategy of the company is the key aspects of this paper. 

Tesla Model X SUV is the brand new product from Tesla and that is the reason marketing establishment is the key factor that will encourage the product in this competitive business establishment. This is the safest, fastest, and most competent sports car utility vehicle in the history and that is the reason people are attracted by the quality of the car. There are several features that make difference with other cars. Though the car is mostly similar to the earlier model of Model S sedan from Tesla, it has large space of accommodating 7 people and falcon wing door that operated by the sensor (Tesla.com 2018). The car has 295mi range that is quite impressive for a car. The car is grounded up as an electric vehicle and the use of restraints, battery and technology is the key matter of providing lowest occupant injury from the product. The car has the capability to tow up to 5000 pounds and door wing sensor is along with the car.

Target Market

The car is fastest enough to cover 170 miles in 30 minutes with ease and this determines the class of the car. The mode of autopilot shows the future of driving, when car drives automatically without the help of human sense. Tesla Model X SUV has the power of self-driving and that is the reason advance hardware capability enhance technology is the key matter of concern for this car (Tesla.com 2018). It has 360⁰ visibility and has 250 meters forward protect with 12 ultrasonic sensors, these facilities differentiate the product from others (Tesla.com 2018). The car has standards all-wheel drive and car has the quickest acceleration on road to reach 0 to 60 mph in 2.9 seconds. This is an incredible factor that makes difference from others. 17inches Touch-screen display and panoramic windshield are the key features of the car that comes around the driver. The car has the potential of lowest drag of 0.25 C_D and that is quite uncompromising fact that allows the leading the car industry. The large space in between the car allows more opportunity to relax for the people and no other SUV car with this high speed and innovation handle the same.

This is a kind of electric car that enters the market with bang as the features of the car is quite impressive and people have desire to have the car. Tesla Model X SUV has the same riding experience similar to Enzo Ferrari and the initial target was the family and active outdoor people. There has enough loft roof space adding hitch on the back bumpers. The focus market of the company consists with niche market initially and after that a range of price discrimination can be diversified with different ranges (Rüttger 2017). The price range in Australian market in between $111,900 to $123,000 and that is the range of price is the key concern for the company. They need to segment their market in such way that can change the product dimension and differentiation aspect of the company. The company has segmented their target market in two sections in primary and secondary target market. Primary target market is the people from niche market as they have the good amount of money to have the car and the sense of environment friendly is also attached with that facts and that people concern with environment have this car. In case of secondary target market people from age group of 30-45 can have the opportunity to have this car. They are professionals and they have good amount of money, but the perception matching and taste of having that kind of electric car in the key concern in that age group professional (Van Den Steen 2014). Energy products refers to the lithium battery are the key concern of people as they have to charge the battery for use and that is the reason people have a reluctant mindset for the product and that can be considered as the setback of the product.

Value Proposition

The unique selling proposition of Tesla Model X SUV is the features that car and how the car is different from the others. The basic sectional change that matters in that case is product upgraded features that are unique and efficient for the market enhancement. This is the electrical vehicle and environment friendliness is the key concern of that. In a single charge it can travel 4775km and that is the reason not more electric has been used for the car. The cargo space is enough for the car and it can be segmented in three layers of five seated, six seated and seven seated car and that segregation help the families to have the car as much family member as they have. Features like navigation, maps and real-time traffic information are the key opportunities that the car has and that also differentiate the care from others (Brown 2013). The car has collision avoidance also and that is the reason most of the people love this car and that is the highlight portion of the car as well. The car has the LED fog light, LED turning light with three positions dynamic and largest panoramic windshield production and automatic keyless entry for user and that is the reason people have this option to use it and have a better, innovative and safe life in future (Tesla.com 2018).

Place of the marketing is the concern aspect of business as there are lots of people are not having the option to have the car as the stores are not near to them or they have the accessibility to reach those centers. One of the largest markets of Tesla is in China and the distribution network spreads in different stores in Asia, Australia, South Korea, Europe, Dubai and North America. The company leads the foundation in San Carlos in California and also builds a retail outlet in Los Angeles and Manhattan. The business to direct customer sales approach is the key factor for that reason and they have taken the strategy of brand exposure for that fact (Hardman et al. 2013). The place making strategy for the company is to situate a service station in front of the store. The maximum service related works are formulated by the centers and that is the reason business expansion has been made through the revenue collection. One of the most important research and development departments is at Athens in Greece. The business has spread in all over the globe in terms of place segment and due to that reason online choice and delivering from the showrooms is also available in this section. In case of placing strategy they need to target more on general market and need to spread the business in every section, so that customer can access these cars easily.

Marketing Mix

The most versatile section is the product as the range of products from Tesla is unique and different kind of products are available in form of electric cars. The company follows business to business model to encourage the partnership with other business and supplying products in different showrooms of car and that is the main criteria of the product. The use of motor is induction and magnet motors and it is a product feature as well. The form of autopilot and adaptive cruise control is the feature that needs to be highlighted in product cases. Lithium-ion battery is also a product highlighted factor and considered as the quality of the product. Roof glass and roof tiles with solar collector are the influencing aspect of product and these feature is also calculated as nature friendly and environment stability factor (Karaaslan, Zhao and Tatari 2018). Tesla Model X SUV is made up of aluminum body and the stunning look is generated by that section. Clean-air technology offers protection from pollutant air and feature is essential as the car runs very fast so dust rejection needs to be there. 5- Star safety process comprises in that case and that is the reason user can feel the safe even when the car goes 60mph/2.9 seconds (Tesla.com 2018). These all are the product features that enhance marketing development for the company in Australian market (Cavada 2018). In case of product strategy they need to generate some cars those will be constructed with medium generated infrastructure and prices will be low in that case.

In 2017, at the end of the fiscal year Tesla has generated the revenues of 11.66 billion US dollar and the total asset of 28. 60 billion US dollar had been formulated (Tesla.com 2018). The major reason of business acceleration is the setting of target market. Premium pricing policy delivers the intentional rate of high price and that certainly applied for the niche market. That is the reason; practical pricing strategy needs to be applied. The economic condition of the country is the key concern for the company as they have to set pricing strategy according to the financial condition, GDP growth and marketing position of the country (Monsellato 2016). The reasonable pricing strategy needs to be delivered from the organization so that general and higher middle class people can own that car.

Promotion of the product is also important to reach the product to customers. Through the promotion brand name promotes in the market and Tesla then have the opportunity to find their establishment in market. Tesla has a great promotion strategy which starts from quality. Its products are immense in terms of expertise, intend and functionality too. Every vast brand sells best quality and has grand products to proffer. Through the Viral marketing, personal setting, public relation and direct marketing the products can engage with the customers (Tesla.com 2018). However, the promotional events are not huge and they largely promoted their car in social media through videos (Czuba 2017). The involvement factor of nature and environment safety is the key highlighted factor that needs to be promoted in some big events for the sustainable business condition. In case of the promotional factor, effects of customer orientations and engage customers with events are the key manner to promote the features of that car.

Conclusion

Therefore, it can be concluded that market position and integrated market position of Tesla is quite good in case of formulating revenue generation. However, there are some competitor in the market to implement same change in car and doing better business. In that case, Tesla Model X SUV has the advantage of providing safe environment to people as the car is operated by electric. The entire paper states the marketing decision that needs to be taken by Tesla Model X SUV for the better market and people engagement.

References

Birk, D., 2015. Evaluation of the Marketing Strategy of Tesla Motors Inc. GRIN Verlag.

Brown, M., 2013. Catching the PHEVer: simulating electric vehicle diffusion with an agent-based mixed logit model of vehicle choice. Journal of Artificial Societies and Social Simulation, 16(2), p.5.

Cavada, L., 2018. Análisis y plan de marketing de Tesla.

Czuba, N., 2017. Markenführung am Beispiel des Unternehmens Tesla Inc.

Hardman, S., Steinberger-Wilckens, R. and van der Horst, D., 2013. Disruptive innovations: the case for hydrogen fuel cells and battery electric vehicles. International journal of hydrogen energy, 38(35), pp.15438-15451.

Karaaslan, E., Zhao, Y. and Tatari, O., 2018. Comparative life cycle assessment of sport utility vehicles with different fuel options. The International Journal of Life Cycle Assessment, 23(2), pp.333-347.

Monsellato, A., 2016. Tesla Motors: a business model innovation in the automotive industry.

Rüttger, A., 2017. Will Tesla turn the Whole Automotive Industry Upside Down? An Analysis of the International Marketing Activities of Tesla.

Tesla.com 2018 Model X The Best SUV retrieved from: https://www.tesla.com/modelx [Accessed on 11th May 2018]

Van Den Steen, E., 2014. Tesla Motors. Harvard Business School Case, 9-714, 413.