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Tesla Marketing Strategy

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Group Project with Alla. A., Biswas. S., Fung. V, Saldanha.R., Trutescu. P.

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Tesla Marketing Strategy

  1. 1. Albert Alla Smita Biswas Victor Hang Fung Renny Saldanha Patricia Trutescu
  2. 2. 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
  3. 3. Tesla Objectives
  4. 4. 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
  5. 5. Tesla Product Strategy Model X
  6. 6. First Generation
  7. 7. Second Generation Model S - Most Awarded Car of 2013
  8. 8. Top Management professional Exotic Vacations Family oriented Affluent Sport Love for Speed Love Shopping Environment conscious Tech Savvy Fine Diner
  9. 9. 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.’
  10. 10. Tesla Motors June 2013
  11. 11. 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
  12. 12. 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
  13. 13. Growth Potential Navigant Research, Sample Size 1081, US 2013
  14. 14. Familiarity of EV Models Familiarity Tesla3rd at 21% familiarity among consumers Navigant Research, Sample Size 1081, US 2013
  15. 15. EV as Value for Money Value for Money Tesla Ranks 3rd Navigant Research, Sample Size 1081, US 2013
  16. 16. http://www.dailyfinance.com/2013/08/27/7-things-to-know-about-battery-electric-vehicles/ $ 44.2 B $18.6 B
  17. 17. Future of Electric cars 300% Growth in sales Navigant Research, Sample Size 1081, US 2013 Top 3 locations
  18. 18. 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
  19. 19. Marketing Mix – Distribution & Sales • Online booking and reservations • Store locations should be close to service centers and charging stations
  20. 20. 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
  21. 21. 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
  22. 22. 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
  23. 23. Final Notes
  24. 24. Thank You

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