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Tesla & Marketing theory

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on 2 October 2014

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Transcript of Tesla & Marketing theory

Electric-vehicle market information
Tesla Background information
Company strategy
Product analysis
SWOT Analysis
Marketing strategy analysis vs Theory
Tesla - Marketing Goals
Generate demand for its vehicles
Build long term brand awareness
Manage its existing customer base
Enable customer input into the development process
International niche marketing (p. 147)
Brand/Product positioning
Market segmentation
High-end sports car market
Luxury vehicle sedan market
Mainstream vehicle consumer segment
Electric-vehicle market information
Tesla background information
Advantages of adopting electric vehicles
Battery Electric Vehicles (BEVs) Market Drivers
Technological Developments
Infrastructure Developments
Public Policy
Energy Economics
Founded in 2003
Designs and manufactures battery electric vehicles
18 stores, 30 countries
Silicon Valley vs Detroit
1,650 Tesla Roadsters sold since 2008
Cooperating with companies like Lotus, Panasonic & Toyota
Company strategy
Main goal: To increase the number of electric vehicles by:
Expanding network of company-owned showrooms & online marketplaces
Selling its patented electric powertrain components to other car producers
Combining the fun in driving & social responsibility
Product analysis
Tesla Roadster
Tesla Model S
Other BEV entrants
Already existing car manufacturers
Emerging plug-in hybrid vehicle manufacturers
BEV substitutes
Gasoline hybrid vehicle
Gasoline powered vehicle
SWOT Analysis
leading edge technologies
first mover advantage
good reputation among customers
solid capital base
high cost structure
immature industry focus
potential production output problems
concerns over vehicle market infrastructure

momentous advances in vehicle battery technology
limited number of new entrants
rising consumer awareness of cost benefits
increasing number of government incentives
increase in direct BEV competitors and/or large automobile companies
growth of substitutes for BEVs
technological breakthrough of competitors
oil price decrease
Environmentally friendly
Branding Strategy
Create a good brand image
High focus on market expansion
Reach the middle to upper-middle class market on a short term basis
Reach the mass market on a long term basis
Product Pricing Strategy
High-priced Tesla Roadster -> high-end market
The Model S Sedan -> middle to upper-middle market
The BlueStar model -> mass market
Product & Design Strategy
Roadster: classy, modern, upper class
S Sedan: friendly, attractive, middle to upper class
BlueStar: mass-market focused, less pretentious, affordable design
Sales & Service Strategy
• Online
• Over the telephone
• In-person at its headquarters
• Via corporate events
Direct marketing and e-business (p. 148)
Sources of innovation (p.173)
Macintosh - laid the foundations for the expansion of the company and launching new product lines
Techniques to identify opportunities (p. 174)
By creating a 'digital hub' Apple uses the same digital technology for the rest of its product lines
Unexpected events that triggers off a new demand (Drucker 1985): Oil shortage
-> Analysis of anticipated customer needs
-> Identifiying an emerging segment
Focus on high-end niche market at first
Highly innovative measures to endure against "150 years of experience for gasoline vehicles"
Cutting out other distribution and wholesalers
Possible problems in communication and customer management
Tesla Model S Sedan & Tesla Roadster
Tesla BlueStar
Target Market Selection
Marketing Communication Plan
Advertising Strategy
Educate and inform potential customers of benefits
Capture all targeted key groups such as customers, in-house retail sales force, industry analysts and press
Product placement
Pay-per click online advertisements
Potential for:
More localized advertisements
Specialist events
Themed advert campaigns
Public Relations Strategy
Sales Promotion Strategy
1.) The industry leader
2.) The importance and availability of the EV technology
3.) Tesla's product line strategy
Specialist events and conferences
Influential car magazines
Leading green, clean energy corporate campaigns
Governmental programs
Standardization of marketing programs and processes (p.137)
Apple expanded its sales/distribution capabilities by opening company-owned retail stores in key cities throughout the world
Used to advertize its products at 'specialist events'
Used themed advertising campaigns
Apple commercials - Will Ferrell, Eminem and Paul McCartney
MacWorld Expo, Apple Expo and MacWorld Magazine
Tesla focuses on a global marketing strategy
Three products focused on the international market
Marketing Strategy?
Marketing Tactics?
The Conceptual Article
Strategic marketing and marketing strategy
Domain of strategic marketing as a field of study
Definition of marketing strategy
Issues fundamental to the field of strategic marketing
Foundational premises of marketing strategy
• Global network of company-owned store
Do you think Tesla can survive over the next 20 years if big car companies with established infrastructure will focus more on producing BEVs?
Do you think Tesla adopting Apple's marketing strategy has been a good choice?
Full transcript