The purpose of this assignment was to analyze the market and sales strategy of Tesla and to identify its Model 3 customers.
After ten years of waiting, Tesla's CEO Elon Musk has presented Tesla Model 3 to the public for the first time in an evening show at the end of march 2016. Unveiled at the company's design studio in Hawthorne, California in front of a crowd of whooping and cheering customers and journalists, Model 3 is the most affordable Tesla so far, hoped to bring electric cars to the mass market. Musk stated that the car will deliver at least 215 miles of range beginning at just 35.000 dollar. Musk is "fairly confident" that deliveries will begin by the end of 2017, and "you will not be able to buy a better car for 35.000 dollar, even with no options." Also it will be one of the safest cars in the world, according to Musk. Even before Tesla unveiled its new middle-class model, there were more than 115,000 people who had paid already 1.000 dollar to reserve one of the highly-anticipated electric cars. These early buyers didn't know what the car would look like or that it would have a starting price of exactly 35.000 dollar. They also didn't know how long the production and delivery would take.
Table of Contents
1 Introduction
2 Marketing Mix Tesla
2.1 Product / Customer Value
2.2 Price / Cost
2.3 Place / Convenience
2.4 Promotion / Communication
3 Conclusions
Objectives and Topics
The primary purpose of this assignment is to analyze the highly successful market and sales strategy employed by Tesla, while identifying the customer profile of the newly announced Model 3. The research explores how Tesla differentiates itself from traditional automotive manufacturers by adopting strategies typically found in the technology sector.
- Analysis of the traditional 4Ps of marketing adapted to the 4Cs model.
- Evaluation of Tesla's unique retail and distribution model.
- Examination of social media influence and word-of-mouth marketing strategies.
- Identification of Tesla's target consumer segments and their underlying motivations.
- Comparison of Tesla's brand positioning against traditional car manufacturers.
Excerpt from the Book
2.4 Promotion / Communication
Tesla's success is not only the result of the company’s product- and technology-strategy. One of the most important factors is the sophisticated marketing. The automaker has no classical advertising budget and does not hire any advertising agencies. Nevertheless they are very successful in getting people enthusiastic for their models.
Other car manufactures spend a lot of money in product advertisement. Tesla in contrast focuses on social media and word-of-mouth recommendation. Especially Elon Musk informs his more than 2,5 million followers on twitter about Tesla's upcoming product innovations and can rely on their exponential dissemination. Instead of attending classical motor shows to promote their new products, Tesla arranges impressive shows with a level of success that was only attained by apple before.
Another similar key to success reminding of Steve Jobs is the staging of Elon Musk as symbolic and cult figure. He markets himself as the universal genius of the 21st century following a great mission of a better and sustainable world with full conviction. Elon as the small charismatic David is threatening Goliath taking the role of the large automobile corporations (Bratzel, 2016). The relationship to his competitors is rather ambivalent. Especially the hybrid cars are his favorite target for criticism. According to him these vehicles are no real hybrids, since “only two percent of its motor works electrical” (Eckl-Dorna & Sorge, 2016).
Chapter Summary
1 Introduction: This chapter introduces the Tesla Model 3 announcement and highlights the unprecedented consumer interest and pre-order volume despite the lack of product details.
2 Marketing Mix Tesla: This section provides a comprehensive analysis of Tesla's marketing tools, focusing on the 4Cs: Customer Value, Cost, Convenience, and Communication.
2.1 Product / Customer Value: Describes the evolution of Tesla's product line and its competitive edge in battery technology, design, and market positioning.
2.2 Price / Cost: Analyzes Tesla's pricing strategy for the Model 3 compared to competitors and discusses the reservation fee structure.
2.3 Place / Convenience: Examines Tesla's direct-to-consumer sales model and the strategic placement of showrooms in high-traffic shopping centers.
2.4 Promotion / Communication: Details how Tesla leverages social media, community engagement, and Elon Musk’s personal brand to achieve high market impact without traditional advertising.
3 Conclusions: Summarizes the key findings, concluding that Tesla's success lies in its identity as a technology company rather than a traditional car manufacturer.
Keywords
Tesla, Model 3, Marketing Mix, Electric Vehicles, Elon Musk, Customer Value, Sales Strategy, Social Media, Innovation, Brand Community, Automotive Industry, Sustainability, Market Positioning, Consumer Analysis, Technology Sector
Frequently Asked Questions
What is the primary focus of this assignment?
This assignment analyzes Tesla’s successful market and sales strategy, specifically focusing on how they promoted the Model 3 and who their target customer base is.
What are the central themes of the work?
The core themes include the application of the 4Cs marketing model, the impact of non-traditional sales and distribution channels, and the role of social media in modern brand promotion.
What is the research goal of this paper?
The goal is to understand how Tesla creates high market demand for a product that is not yet produced, and to profile the customers willing to pre-order such a product.
Which scientific methodology is applied?
The research relies on external media sources, social network analysis (Affinio data), and official market registration statistics due to the lack of dedicated customer studies for the very recent Model 3.
What topics are discussed in the main part of the paper?
The main part systematically reviews Tesla’s marketing mix, covering product value, pricing strategy, retail/convenience models, and communication strategies.
Which keywords define this work?
Key terms include Tesla, Model 3, Marketing Mix, Electric Vehicles, Elon Musk, Brand Community, and Market Strategy.
How does Tesla's retail model differ from traditional car companies?
Unlike traditional manufacturers, Tesla sells directly to customers via the internet and company-owned stores, bypassing the traditional franchise dealership model.
What role does Elon Musk play in Tesla's marketing?
Elon Musk acts as a symbolic and charismatic cult figure, using his personal brand and massive social media following to generate hype and disseminate information without spending on traditional advertising.
Why are Tesla fans considered similar to high-tech product fans?
Analysis suggests that Tesla's customers are more driven by interests in new technology, design, and science than by general automotive industry interests or traditional environmental sustainability.
- Arbeit zitieren
- Erik Somssich (Autor:in), 2016, Tesla Model S. Market and Sales Strategy, München, GRIN Verlag, https://www.hausarbeiten.de/document/356696
