Introduction and about the company
Tesla Motors is an American organization which operates in the energy and automotive based industry of the country. The headquarter of Tesla Motors is located on the Paulo Alto, California. The organization mainly specialises in the electric car manufacturing activities and manufactures other products like, solar panels. Tesla has been operating many productions based and assembly related plants which include, Giga-factory 1, Nevada. The major manufacturing based facility of Tesla is thereby located in California (Tesla.com., 2018). The different models which are currently sold by Tesla in the market mainly include, Model X, Model S, Mode 3. Tesla was established in the year 2003 by two engineers Marc Tarpenning and Martin Eberherd. The organization was joined later on by Ian Wright, J.B. Straubel and Elon Musk who had acquired the position of co-founders within the organization (Tesla.com., 2018).
The portfolio will be based on an idea which will be provided based on the launch of a new product by Tesla in the automobile market. The target market which is the most suitable for the product will be analysed and further positioning of the organization will also be provided.
Tesla is known in the automobile industry for manufacture and production of electric cars which are environment-friendly in nature. The organization has been producing different types of electric car based models which have been able to provide an effective position to Tesla in the industry. The transition which is being made by the automobile industry towards usage of sustainable industry is considered to be a major part of operations of Tesla in the market (Abidemi, Halim & Alshuaibi, 2017). The organization has been able to provide solutions based on energy based requirements of automobile industry with the help of different products that are developed by Tesla. The effective products which are thereby offered by the organization currently in the market are Model S, Model X, Model 3. These models have reduced the need for different types of fuels which are used by other cars. The energy source which is used by the cars in order to operate is based on electricity (Aghaei et al., 2014). The organization can however be provided with new solutions in order to improve the products which are already offered in the market. The five different ideas which can be suggested to Tesla Motors are as follows,
- Tesla Motors can think of implementing energy-storing panels within the body of the electric cars. The batteries which are present in the cars can be quite heavy and can be quite inconvenient as well. The storage of energy by the body panels is considered to be a major way which can be implemented in order to improve the products.
- Tesla can further attach air-bags underneath cars which will be helpful in stopping the vehicles before an accident occurs. This will play a key role in increasing the levels of safety of the cars.
- Tesla can also attach the technology of Augmented Reality or AR in the dashboards. The dashboard will be able to provide real-time based information to the drivers so that they are able to avoid accidents from the cars which are arriving from the opposite side.
- Self-driving cars based technology can be implemented by Tesla in order to enhance the cars which are operated by the company. The self-driving cars will be able to park and drive themselves without any human intervention.
- Tesla can be recommended to develop cars with technologies which help them to communicate with each other. The cars which are based on this technology can provide signals to each other based on any potential collision which can be faced in the operations.
The best idea which can be implemented by Tesla in order to develop the products in an effective manner is based on the cars which are able to communicate with each other. The cars will be able to communicate based on the objects which are present around them that can cause potential levels of danger (Aras et al., 2017). The different features and benefits which can be provided to the target market of Tesla based on new product idea are as follows,
|
Features |
Benefits |
|
1. Wireless signalling facility provided in the cars. 2. Communication based equipment provided in the cars. 3. Facility related to turning on a red light in order to provide signals to another car. 4. Advanced GPS systems installed in the car in order to ensure that information is shared effectively. |
The wireless signalling will be able to help in providing information based on the road to other vehicles on the road. Communication equipment will provide connection between different vehicles. Red light will provide a danger based signal to a car which is about to enter the road. Advancement of GPS system will be based on information based on traffic. V2I communication is required for understanding the best routes. |
The name which can be provided to the new product that will be based on vehicle to vehicle communication is “Tesla Model PhD”.
The target market which has been selected for the suggested new product of Tesla Motors named “Tesla Model PhD” is mainly based on people who belong to the age group of 20 to 40. The major characteristics which are thereby established by the target market include, tech-savvy, luxury buyers and eco-friendly. The organization will be able to aim for a high share in the automobile market with the help of the new product based idea which has been provided (Cooke, 2015).
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Needs |
Wants |
|
The needs of customers in belonging to the target market are based on usage of sustainable energy. The customers require real time information based on the cars which are travelling along the road. |
The major want of the customers is based on the usage of high levels of technology in order to increase safety of the operations. The customers want to be informed about the ways by which they can avoid accidents on the road by communicating with other cars. |
New product based ideas for Tesla
The position which is developed by Tesla Motors in the automobile based industry is quite unique in nature. Tesla has created its name in the market for selling new technologies and not only new cars. The cars which are thereby developed by the organization are known for the luxury based levels and technologies which are used for development. The organization has been able to dominate the industry with the help of electric cars which are less expensive and highly luxurious in nature as well (Datta, Ailawadi & van Heerde, 2017). Tesla is thereby responsible for the development of proper infrastructure for manufacture and also developed products which are able to fulfil the needs of customers. The tough competition which is faced by Tesla in the automobile industry has affected the target which can be achieved by the company. However, the position which has been created by Tesla has been helpful in protecting the position which is developed in the industry (Fan, Lau & Zhao, 2015).
The positioning statement which can be developed for the new product of Tesla is “The car will be able to fulfil the needs related to technology of customers and the safety on the road will be increased by implementing new technologies.”
The tagline which can be suggested for the new product of Tesla named “Tesla Model PhD” is “Be safe and enjoy the drive”.
The Unique Selling Proposition or USP of the new product of Tesla is based on the opportunities related to communication which are provided to the customers to communicate with other cars while driving on the road. This will play a major role in the ways by which the customers can increase levels of safety on the road.
Pricing objectives – The pricing based objective of Tesla Motors is based on the ways by which the organization is able to attract premium customers towards the products. This aspect is considered to be an important part of the marketing mix based strategy which is developed by the organization. The major objective of pricing which is set by the organization is based on fulfilling the needs of customers and providing them with the best possible products based on latest levels of technologies (Fernandes, 2018).
Pricing strategy – The pricing strategy which has been implemented by Tesla in its operations in the automobile is premium pricing. The price based points are based on the high value and levels of uniqueness as well. The customers tend to relate the quality of products with the prices which are set for them (Wongleedee, 2015). Product design and innovation are considered to be important parts of the effective pricing strategy which has been implemented by the organization. The strategy is mainly related to the ways by which the products can be differentiated from those which are offered by the competitors (Foxall, 2014). The force which is provided by the competitions is considered to be highly important for the pricing based strategy which has been developed by Tesla.
Market penetration with the help of new products – Tesla aims at penetrating the automobile market with the help of new and unique products which are offered to the customers. The broad differentiation based strategy has been implemented by Tesla in order to ensure proper levels of growth in the market. This has played a key role in the development of competitive advantage in an effective manner (Hanssens et al., 2014). The new product based idea which has been suggested in portfolio to Tesla will be able to ensure high levels of product differentiation. Market penetration has always been used as an important technique to ensure growth in the automobile based industry. This is considered to be highly important for the intensive growth based strategy which has been implemented by Tesla Motors (Huang & Sarigöllü, 2014).
Selection of target market for the new product of Tesla
Product mix based pricing – The product mix which has been developed by Tesla is based on the ways by which the organization is able to satisfy the needs of consumers. The product mix which has been developed in this case is related to the high technology based electric cars which will be able to communicated with the other cars which are available on the roads (Jackson & Ahuja, 2016).
Strategy based on price adjustment – The dynamic pricing strategy has been implemented by Tesla in order to attract the customers and fulfil the changing needs as well. The new product of the organization will also be adjusted in such a manner which will be helpful in attracting the customers and further fulfilling their needs as well (Khemchotigoon & Kaenmanee, 2015).
Competitors
|
Objective strategy or tactic |
Nissan |
Toyota |
Audi |
|
Prices |
Low |
Low |
High |
|
Pricing objectives |
To attract all groups of consumers. |
To attract all consumer groups. |
To attract premium consumer group. |
|
Pricing strategy |
Penetration pricing |
Penetration pricing |
Premium pricing |
|
Product mix pricing |
Product mix is based on different segments and categories. |
Diverse types of products are offered to the consumers based on their choices. |
Product mix is based on luxury cars which are offered to the consumers. |
|
Price adjustment strategy |
Prices are adjusted based on the customer segments. |
Prices are adjusted with respected to the needs of consumers. |
Prices are adjusted with respect to needs and demands of consumers. |
Advertising – Advertising techniques are related to the ways by which the new product based information can reach the customers. The advertising technique which can be used for promoting the new product of Tesla is promotion with the help of different media.
Sales promotion – Sales promotion can be used by Tesla by providing different types of products and gifts along with the car.
Personal selling – The personal based team which can be developed by the organization is based on the promotions which can be done on an individual basis (Londhe, 2014).
Public relations – The image and position which has been developed by Tesla in the automobile industry is considered to be an important factor which will help in the promotions of the new product.
Direct marketing – Tesla can use digital media in order to communicate with the customers in an effective manner and within a lesser amount of time as well (Shah & Nayak, 2016).
The major purpose of implementation of a proper advertising strategy is based on increasing the levels of awareness about the new product among the customers. The organization will be able to provide the customers with the information related to features which are offered by the product (Steenkamp, 2017).
Objectives –
Information objective – The information based objective of the advertising process is related to increase the levels of awareness related to the new product among the target customer group.
Persuasive objective – The persuasive objective on the other hand is based on increasing the interest of customers related to the new car which offers many new features as well.
Key advertising message – The advertising based message which can be conveyed to the customers is related to the different features which are offered to the customers and the differentiation levels of the product as compared to the others (Wasan & Tripathi, 2014).
Selected media – The media which are selected for reaching the customers are social media and television. Social media will be helpful in providing wide levels of reach to the consumers.
Conclusion
The analysis can be concluded by stating that the new product which has been suggested to Tesla Motors named “Tesla Model PhD” can play a key role in increasing the levels of profitability in the industry. The advertising based techniques used by the organization will play a key role in the ways by which Tesla is able to increase the levels of profitability and improve its position in the industry as well.
References
Abidemi, B. T., Halim, F. B., & Alshuaibi, A. I. (2017). Service marketing mix, market orientation and Organizational Performance: A proposed conceptual model. Asian Journal of Multidisciplinary Studies, 5, 7.
Aghaei, M., Vahedi, E., Kahreh, M. S., & Pirooz, M. (2014). An examination of the relationship between services marketing mix and brand equity dimensions. Procedia-Social and Behavioral Sciences, 109, 865-869.
Aras, M., Syam, H., Jasruddin, J., Akib, H., & Haris, H. (2017, July). The effect of service marketing mix on consumer decision making. In International Conference on Education, Science, Art and Technology (pp. 108-112).
Cooke, E. F. (2015). An Update on the Concept of the Marketing Mix. In Proceedings of the 1983 Academy of Marketing Science (AMS) Annual Conference (pp. 266-268). Springer, Cham.
Datta, H., Ailawadi, K. L., & van Heerde, H. J. (2017). How well does consumer-based brand equity align with sales-based brand equity and marketing-mix response?. Journal of Marketing, 81(3), 1-20.
Fan, S., Lau, R. Y., & Zhao, J. L. (2015). Demystifying big data analytics for business intelligence through the lens of marketing mix. Big Data Research, 2(1), 28-32.
Fernandes, A. A. R. (2018). The mediation effect of customer satisfaction in the relationship between service quality, service orientation, and marketing mix strategy to customer loyalty. Journal of Management Development, 37(1), 76-87.
Foxall, G. (2014). Strategic Marketing Management (RLE Marketing). Routledge.
Hanssens, D. M., Pauwels, K. H., Srinivasan, S., Vanhuele, M., & Yildirim, G. (2014). Consumer attitude metrics for guiding marketing mix decisions. Marketing Science, 33(4), 534-550.
Huang, R., & Sarigöllü, E. (2014). How brand awareness relates to market outcome, brand equity, and the marketing mix. In Fashion Branding and Consumer Behaviors (pp. 113-132). Springer, New York, NY.
Jackson, G., & Ahuja, V. (2016). Dawn of the digital age and the evolution of the marketing mix. Journal of Direct, Data and Digital Marketing Practice, 17(3), 170-186.
Khemchotigoon, Y., & Kaenmanee, S. (2015). The relationship between consumer animosity, marketing mix, perceived product quality, consumer satisfaction and intention to purchase of consumer behavior. International Business Management, 9(1), 70-78.
Londhe, B. R. (2014). Marketing mix for next generation marketing. Procedia Economics and Finance, 11, 335-340.
Shah, B., & Nayak, K. (2016). A Study on Marketing Mix in Digital Environment. International Journal of Marketing and Technology, 6(7), 29-41.
Steenkamp, J. B. (2017). Global Marketing Mix Decisions: Global Integration, Not Standardization. In Global Brand Strategy (pp. 75-109). Palgrave Macmillan, London.
Tesla.com. (2018). Electric Cars, Solar Panels & Clean Energy Storage | Tesla. Retrieved from https://www.tesla.com/
Wasan, P. G., & Tripathi, G. (2014). Revisiting social marketing mix: a socio-cultural perspective. Journal of Services Research, 14(2), 127.
Wongleedee, K. (2015). Marketing mix and purchasing behavior for community products at traditional markets. Procedia-Social and Behavioral Sciences, 197, 2080-2085.
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