1. Albert Alla
Smita Biswas
Victor Hang Fung
Renny Saldanha
Patricia Trutescu
2.
3. Tesla Mission
“Our goal is to create awareness of the potential of Electric
Vehicles and particularly around those created by Tesla Motors”
We want to bring powerful electric cars from the narrow luxury
market to mainstream America
-Elon Musk | CEO and Chief Architect
5. Tesla Strategic Position
• High end manufacturer & dealer in Electric car market
• Competitive Position
• Direct-to-consumer sales
• Stores and service centers
• Innovative consumer financing options
• Technological innovations
10. Top Management
professional
Exotic Vacations
Family oriented
Affluent Sport
Love for Speed
Love Shopping
Environment conscious
Tech Savvy
Fine Diner
11. Model X Positioning
For the middle aged mass affluent family oriented individuals with a keen eye for
aesthetics and a love for speed. They enjoy long drives and commute frequently on
medium-long commutes alone or with family. They are tech-savvy, enjoy elite sports
and are sensitive towards the environment.
Stellar performance- like the Sun, fiercely powerful yet highly beneficial and also
loves the Earth. Tesla X is a vehicle that brings together Utility and Performance.’
14. 67% Alternative fuel vehicle preferred
Hybrids
Navigant Research, Sample Size 1081, US 2013
61% EV
Clearly Strong demand
exists for EV
EV- Electric Vehicle
NGV – Natural Gas Vehicle
15. Consumer Opinion
Reasons to buy EV
Navigant Research, Sample Size 1081, US 2013
Positive factors outweigh
the reasons to buy EV
60 %
48%
EV- Electric Vehicle
20. Future of Electric cars
300% Growth
in sales
Navigant Research, Sample Size 1081, US 2013
Top 3
locations
21.
22. Marketing Mix – Product
• Product Line – Roadster, Model S,
Model X
• Attributes
• Easy Seating with step in access to
the 2nd and 3rd row,
• Beautiful aesthetics
•Premium interior surfaces & panoramic
glass.
•Futuristic dashboard with Touch screen
• Service Centers - West Coast,
NY and Texas
23. Marketing Mix – Distribution & Sales
• Online booking and reservations
• Store locations should be close to service centers and charging stations
24. Marketing Mix - Price
• Comparable to the Model S
• 65kWh Model X = $56,250
• 85kWh Model X = $65,160
• Tesla drivers 1/3 save on electricity/fuel compared to
non-electric luxury competitor
• $avings
• Battery replacement approx $6,500 lower than
major engine repair
• In 8 years compared to Gasoline Car - Tesla owner
save $23,000+
• Hybrid car owner saves $725/ year; ($5,800 in 8
years)
Mercedes S Class Tesla Model S
85kWh
Sale Price $92,350 $87,400
Battery Replacement N/A $12,000
Major engine repair
(1/5 original sale price)
$18,470 N/A
8-year fuel costs
(15,000 miles/year)
$16,846 $5,262
Total Cost $127,666 $104,662
25. Marketing Mix - Promotion
• Take the tag of “Safety” outside the car – roadside assistance for charging, breakdown and
continue with your journey (replacement cars)
• Test Drive the car at rental agencies near airports for travelling professionals
• San Diego, NYC & Austin
• Air commercials around popular TV shows around 7:00pm – 9:00pm
• Product placement in music videos
• Social Media & Digital - A 10-15 minute finely produced informational video to debut on Tesla
website at launch
• Facebook, Twitter and additional websites Huff Post, NY Times, WSJ promote debut
• Print ads – Run once right before launch and 3-4 times after launch
• Outdoor media
26.
27. Promotion Budget
Increase original budget for best
exposure, from $3.9 to $5.94 million
Pull Strategies
Sampling at Rental Agencies Digital
Marketing & Social Media
Push Strategy Television
Advertising
• 15 second commercials
Print
• Running 4-5 times, 1/3 – 1 page color ads
Billboards
Product Placement in Music Videos
• People look up to celebrities
Sticking to segment & educate beyond segment to
help people fall into category of Tesla buyers
This slide shows Tesla’s product strategy graphically; transitioning form low volume, high price to large market and low price.
Demographics
Age: ranging between 35-60+
Profession: Management Positions
Income: High Income Level
Family : Mid sized, married with children.
Education : Graduate +
Psychographics:
Lifestyle : family oriented, long successful careers, reasonable social circle
Personality types- Tech- Savvy, Love for Speed and Driving, Eye for Aesthetics, Family Oriented
Environment conscious
Behavior:
Buying Reasons: Economy on Fuel, Eco-friendly car, better performance, functionality and style
Drive as mode of transportation to work, shopping, recreation, transporting children to social activities and school
Frequency: Have changed 3-5 cars in lifetime
Hobbies: Affluent recreation, (like golf)
Buying Habits: ski vacations, eating out, shopping at clothing boutiques, see shows
67% people preferred Hybrids, followed almost 61% people preferred electric cars
There are various other manufactures but here are the top few and their position
Tesla stood 3rd at 21% familiarity among consumers
At value for money Tesla stood 3rd at 20% as per consumer survey report
Top 3 locations are California, NY and Texas
The industry growth looks very favorable in the future with almost 200,000 EV being sold by 2022
Source - http://cleantechnica.com/2013/09/30/electric-vehicles-speeding-toward-7-global-sales-2020/
Based on the growth in EV sales in the future and top 3 states Model X must be made available on show rooms in the West Coast, Texas, NYC regions