Tesla Inc. is an automobile organization established in Palo Alto of California, USA. It is a specialist in the production of electric based cars and solar panels. It was founded in the year 2003 by Martin Eberhard and Marc Tarpenning, with the name of Tesla Motors. Elon Musk is the co-founder and current CEO of Tesla. Model S cars were first launched in the year 2012 by Tesla and the Consumers Report of the year 2017 declared the car as the best car in the world. This article will analyze the marketing and positioning strategy of Tesla to observe the current market position of Tesla.
Answer 1
The purchasing method of the buyers is the journey a buyer goes through before buying any product. It is vital for Tesla to realize the purchasing methods of the buyers so that it could create their marketing planning accordingly. The five steps of Tesla to identify and satisfy the consumers’ needs and wants are as follows:
Answer 2
2.1
Tesla has adopted a number of strategies for marketing communication with the aim of targeting existing and potential consumers. The strategies for marketing communication of Tesla consist of social media marketing, word-of-mouth marketing, participation in international automobile shows and, sales and service network and direct selling policy (Moreira et al., 2017). As an assistant marketing manager for Tesla, I would like to adopt the social media communication marketing strategy for the promotion of Model S Car. The strategy of social media marketing will help Tesla in enhancing their product recognition and in improving their product loyalty.
The social media sites like Twitter will increase the popularity, reliability and product recognition of Tesla. The social media marketing is significant for Tesla as social media sites might influence the emotions and attitudes of the consumers (Pahurkar and Metha, 2018). The buying decision of friends is also affected by social networking sites. But, utilizing the strategy of social media marketing might put negative impact for Tesla, as the bad news regarding the company will spread easily, damaging the product reputation of Tesla.
It might lead to financial damages and fall in shares and so Tesla will have fewer funds for their promotional activities (Adamashvili and Fiore, 2017). However, in spite of all these, the marketing strategies through social media appears to be an effective planning for marketing communications in the current world of connections and globalization, which will attract and aim for more young and potential buyers in the future.
2.2
The social media marketing strategies will help to reach to those peoples of other nations where the Model S cars are not available at present, especially the markets of Europe (Xiang, 2018). It might cover most of the markets of Europe like Norway, UK, Germany, Netherlands, and Sweden. The company could release some promotional video through YouTube for the advertisement of Model S cars.
It is not possible to evaluate the remarkable features, potentials, and utilization of Model S cars in one or two statements. The Model S car with large piston engine runs at the same speed as the All-American EV and Rolls Royce with no noise, complication, vibration and physical experience of driving (Wieland et al., 2017). The driving experience by Model S cars is all about the quick and perfect response of the accelerator. The average speed of Model S is 4.8 secs to 65 mph, which is slower than the claims of Tesla, but faster than Mercedes Benz. At the motor highway, Model S cars could reach up to an extra 20 mph in a second. These all facts are possible to analyze due to the social media marketing strategy.
Answer 3
3.1
While Tesla will segment the market, it will not focus only on segmenting the most fuel products but on segmenting enabled the whole organization to create long-term and innovative model cars. The company will not only select the small car segment (Kim, Y. and Talbott, J.S., 2018). The segment selection will be a lower volume and price-insensitive performance car segment which will build a product recognition and set up premium pricing and gain profits by aiming the rich and wealthy buyers who are willing to spend more on their cars.
Tesla is a technology-based organization more than a just automobile organization. They not only sell cars but also create the infrastructure needed to support the cars. It has created a market for superchargers, service stations, and battery swap stations (Wymer and Polonsky, 2015). Tesla is planning to offer the complete autonomous driving capacity to the cars than before, by providing billions of miles of driving information that Tesla is trying to collect.
3.2
Tesla has been selling electric based SUV cars from the year 2015, which has performed good in the market and sold almost 100,000 cars in the year 2017 (Wang and Dass, 2017). Observing the strength of its positioning, I would suggest Tesla utilize the product features and consumer benefits as a positioning strategy. This process primarily concentrates on the features of the product and the consumer benefits connected with the product. The positioning method through product features depends on delivering excellent products to the consumers to possess a better positioning of the market. Tesla will show better sales and product identity due to the product features.
The cars operations of Tesla will present higher utilization due to the consumer’s benefits (McCamley and Gilmore, 2018). The organization is targeting to dominate in the world market of electric- based cars and battery. Tesla will increase the utilization of sustainable transport systems through accessing and affording the products to the most number of consumers possible. This will lead to clean transportation systems and clean production of energy. Tesla will be able to bring more and more electric-based cars to the mass market as fast as possible (Power and Simpson, 2016).
The customer durable and technological products like cars are utilized to reveal the features of the products. The car which has maximum features are more popular among the buyers. The Model S cars have the combination of style, design, accessibility, and protection. It is the lowest cost of model cars ever made in the world (Chong et al., 2017). If Tesla could utilize the positioning strategy of product features and consumer benefits efficiently, then the technological systems and the durability of the customers will definitely improve and will provide more strong ground for their market position.
Answer 4
Marketing Strategy
The Tesla Incorporation, earlier known as Tesla Motors was formed in 2003 and began to make profits from the year 2013. The company is based in the city of Palo Alto in California and is expert in making solar panel production, lithium-ion based battery, and electric-based cars. The current CEO of Tesla is Elon Musk who has developed the organization as a technological firm and independent automobile company (Fournier and Srinivasan, 2018). The company targets deliver lees expensive electric-based cars to the average customers.
Market Segmentation and Positioning
Tesla will segment the market, not only focusing on segmenting the most fuel products but on segmenting enabled the whole organization to create long-term and innovative model cars. The company will not only select the small car segment. The segment selection will be a lower volume and price-insensitive performance car segment which will build a product recognition and set up premium pricing and gain profits by aiming the rich and wealthy buyers who are willing to spend more on their cars (Tsankova et al., 2017).
Tesla is a technology-based organization more than a just automobile organization. They not only sell cars but also create the infrastructure needed to support the cars. It has created a market for superchargers, service stations, and battery swap stations. Tesla is planning to offer the complete autonomous driving capacity to the cars than before, by collecting the billions of miles of driving information.
Competitive Benefits
The reputation of Tesla is one of the intangible assets of the organization. The Roadster cars of Tesla will change the image of electric based cars from small and slow cars, in fast-moving cars. It will give an acceleration speed of 0 mph to 60 mph which will beat even the best cars (Whalen et al., 2016). The Model S cars which are less costly cars are so good that it will definitely win some automobile award. It will build an excellent product identity with its reputation. Its look like that Tesla is trying some other business and planning to access the solar roof tiles market (Falát and Holub?ík, 2017). It deals with the lithium-ion based batteries that help in giving solar energy to the houses.
Conclusion
The article had explained the five steps taken by Tesla to recognize and satisfy the demands of the buyers. It had also developed a communication strategy for the promotion of model S cars and described the utilization of the strategy in promotional activities. It had also evaluated the market segmentation of Tesla for its competitive benefits. It has also analyzed the positioning strategy of Tesla. The paper had concluded with the recommendation of a marketing planning for Tesla.
References
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Chong, A.Y.L., Ch’ng, E., Liu, M.J. and Li, B., 2017. Predicting consumer product demands via Big Data: the roles of online promotional marketing and online reviews. International Journal of Production Research, 55(17), pp.5142-5156.
D’Arcy, P.J. 2016, ‘Tesla Model S: Disruptive marketing of an electric car
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McCamley, C. and Gilmore, A., 2018. Strategic marketing planning for heritage tourism: a conceptual model and empirical findings from two emerging heritage regions. Journal of Strategic Marketing, 26(2), pp.156-173.
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