Write about the Marketing Strategy of Tesla Model S.
Tesla Motors was found by Elon Musk in the year 2003. Its main goal was to encourage the creation of electric cars and to make affordable vehicles. The CEO, Elon Musk, has a straight vision and used his skills to perfect the vehicle so far. The company’s first car was Roadster which brought the electric innovation in the sedan segment with good pricing point. In the year 2012, they came up with the vehicle Tesla Model S. They brought it under the premium sedan segment. They chose to innovate and to create the best car with every generation. The aim was to popularize the use of electric cars so that non-renewable source of energy can be saved and focus can be given to use more and more renewable source of energy. The objective is to make our planet Earth a Green Planet by the year 2025. The company has been working hard and till now, 3 more cars have come into existence with all being the electric cars. They have now expanded from making 400 cars per year to a total of 400 cars per week now. The dedication of the team working at Tesla is praiseworthy. Also, the marketing of the cars has been done in a great manner to lure customers who have money and can support the good cause behind this electric car1.
Summary of Tesla Product Model S
The Model S is a result of Tesla's endeavors to put up a completely electric extravagance vehicle for sale to the public that has zero bargain. They have possessed the capacity to do this in view of their imaginative thoughts and dedication towards electric source for car. They always ask the question to themselves as “Why not?" Why does an effective auto must be slow and uglier? Individuals that help the planet ought to be compensated, not punished. Model S has various advantages that fill in as strategic offers. Even more imperatively, it is for nothing out of pocket and returns overabundance charge again into the electric grid2.
The Tesla Model S was one of the initial Electric cars which came into the market in the year 2012. It gradually got to be known for its superb performance along with the facilities and features which are inbuilt in the car. The wide reach of the car and growing popularity made Tesla continue its work in the current manner and further they went ahead in the launch of newer generations of Tesla Model S year after year. Thus, the car has received great appreciation from majority of the other automobile companies and from users worldwide. In the coming sections, we are going to check out the target market of Model S, Competitors of the car, its marketing mix and some more details.
Targeting of Model S
The Target market of Model S is to target the high society businessmen who are educated and with green thinking, with yearly pay over $150,000. Since, the Model S has an additional seat functionality and can load up to 7 individuals, they need to concentrate on families. Incorporated into the family class would be individuals who have not yet begun a family but rather are looking to later. Families are worried with security and execution. High society families are additionally worried with style and extravagance when looking for an auto. By isolating the objective showcasing into two sections, the father and the mother, they can unmistakably perceive how Tesla fits splendidly to take care of their issues when looking for an auto3.
San Carlos, California-based Tesla as of now offers the Roadster electric car. The cost of the Roadster has restricted people to purchase it very easily. Only a few of the Hollywood stars managed to purchase the pricy car. The aim of the Tesla is to reduce the cost of the vehicle generation by generation to bring a car in the market which upper middle calls people can also afford. Musk stated that Tesla is determined to make the car "as reasonable as could reasonably be expected." He anticipates that the auto will speak to purchasers of mid-range to premium cars. Tesla arrangements to accomplish the 20,000 auto yearly rate about a year in the wake of going into generations. The organization hopes to get financing from the Department of Energy this year to bolster the Model S program. The Model S is comparable in size to different cars, yet it gloats an extremely inclined rooftop to make it more streamlined and guarantee its all-electric range4.
Availability of Model S
Tesla manufactures the Model S in Fremont, California. It acquired a factory which was once developed by the joint force of Toyota and General Motors. Currently, it is known as Tesla Factory. The site was bought at a rate of US $ 42 Million by Tesla. The deal occurred in the year 2010. Tesla has a distribution center in Tilburg, Netherlands from where it caters to the market of Europe. Near Tilburg, lies the Rotterdam Port which helps in further distribution of the cars manufactured to various geographic regions. This center is also used as a warehouse to store extra inventory of materials as well as finished goods5.
Tesla, after the launch of Model S, started to roll out the vehicle in many major markets. After getting a good response in America, it went on to cater to the markets of Europe as well. The response was very good all over and the company wanted to expand further. It is also going to launch its car in some days in India. India can be a major market where it can rollout the newly launched vehicles. India is a major market in automobiles sector. The demand for premium cars is increasing and this is the correct time to enter Indian market. Tesla declared the launch of its new generation Tesla Model S in Spain in the year 2017 as a part of the plan to launch expansion in Western Europe.
Other Products in Tesla’s Product Line
The Product Line of the Tesla Motors includes the former Roadster series, Model S, Model X and the newly introduced Model 3. There are many more future models in the pipeline. The company started with the Tesla Roadster which was priced very high. The main vision of Tesla is to provide affordable cars with clean energy to every household6. His aim is to make cars affordable in every generation of new car. The revenue of one model will cover for most costs of next model and will make the cars less expensive. The Model S was introduced in 2012 which marked the success for Tesla. After that, the company never looked back. The success of Model S led way for entry of Model X and now the Model 3 in the year 2016. All the models of Tesla have attracted many new customers due to its stylish look and creative positioning. The all electric car has also made a point for themselves in saving energy.
Competitors of Tesla S
There are many competitors of Tesla once it began production of Electric Cars. Many major auto manufacturers have come up with their own Electric Cars. The popular among them to enter this segment of vehicle are Audi, Porsche, BMW etc. The primary competition of Tesla S was with Audi A7, Porsche Panamera, BMW 5-series etc. The other brands were providing tough competition to Tesla however, the CEO of Tesla, Elon Musk, was determined to provide affordable cars to people generation by generation. So, he continued towards his vision and never looked back (Mangfram, 2012). This helped him to overcome the competition in later years with new generation of Tesla Model S.
The Tesla Model was introduced in the year 2012 and has seen many new variants of the same car every year till the newest one on the year 2017. This car is very sturdy and all electric.
The car has already been successful in American and European markets. Their plan is to launch the new models of the car worldwide.
The Price of Model S is at a bit of higher end. However, the company plans to bring it down with every new generation.
The company is targeting the rich folks with the initial models thereby laying down a road to reach middle class folks with its newer generation.
Tesla Car’s Specialty
The vision of mission of Elon Musk for his company Tesla Motors was simple enough to provide every home with an affordable car running in clean energy. The company started with the Tesla Roadster which was priced very high7. The main vision of Tesla is to provide affordable cars with clean energy to every household. His aim is to make cars affordable in every generation of new car. The revenue of one model will cover for most costs of next model and will make the cars less expensive. The premium looking cars with top notch features running in fully clean energy is the dream that Tesla made true. This is the specialty of Tesla’s cars.
Product Life Cycle Stage
Every Product goes through a four stage Product Life Cycle. These includes the Introduction, Growth, Maturity and Decline. The Tesla Model S, when introduced in the year 2012 was in the first stage of Product Life Cycle. Over the years, it has grown and has created a market position for itself. Currently, it is in its Maturity stage with new models coming in from Tesla. Despite new models in the lineup, Tesla Model S remains the best buy for many customers8.
Any Improvement Recommendation for the Product
The company is working on the vision to provide affordable cars running on clean energy to everyone. This aim is one of major thing that world believes in. The cars made by Tesla have all the modern facilities and features equipped into it. However, they can try to bring in more features which will be helping the differently abled people as well to have a feel of their cars by sitting behind its wheels. The Tesla Motors can come up with some variants for differently abled persons so that they are not left out of the persona of Tesla Motors.
The vision of mission of Elon Musk for his company Tesla Motors was simple enough to provide every home with an affordable car running in clean energy9. The company started with the Tesla Roadster which was priced very high. The Tesla’s Product Line consists of the former Roadster series, Model S, Model X and the newly introduced Model 3. There are many more future models in the pipeline. The premium looking cars with top notch features running in fully clean energy is the dream that Tesla made true. Many major auto manufacturers have come up with their own Electric Cars. The popular among them to enter this segment of vehicle are Audi, Porsche, BMW etc. The primary competition of Tesla S was with Audi A7, Porsche Panamera, BMW 5-series etc. However, Tesla has always tried to win over the competition.
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