tesla marketing strategy

Albert AllaSmita Biswas

Victor Hang Fung Renny SaldanhaPatricia Trutescu

-Elon Musk | CEO and Chief Architect

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

Tesla Objectives

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

Tesla Product Strategy

Model X

First Generation

Model S - Most Awarded Car of 2013Model S - Most Awarded Car of 2013

Second Generation

Top Management professional

Family oriented

Exotic Vacations

Love for Speed

Love Shopping

Affluent Sport

Fine Diner

Tech Savvy

Environment conscious

Model X PositioningFor 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.’

Tesla MotorsJune 2013

Navigant Research, Sample Size 1081, US 2013

Alternative fuel vehicle preferred

67% Hybrids

61% EV

Clearly Strong demand exists for

EV

EV- Electric VehicleNGV – Natural Gas Vehicle

Consumer Opinion

Navigant Research, Sample Size 1081, US 2013

Reasons to buy EV

Positive factors outweigh the reasons to buy EV

60 %

48%

EV- Electric Vehicle

Navigant Research, Sample Size 1081, US 2013

Growth Potential

Familiarity

Navigant Research, Sample Size 1081, US 2013

Familiarity of EV Models

Tesla3rd at 21% familiarity among

consumers

Value for Money

Navigant Research, Sample Size 1081, US 2013

EV as Value for Money

Tesla Ranks 3rd

http://www.dailyfinance.com/2013/08/27/7-things-to-know-about-battery-electric-vehicles/

$ 44.2 B

$18.6 B

Navigant Research, Sample Size 1081, US 2013

Future of Electric cars

300% Growth in

sales

Top 3 locations

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

Marketing Mix – Distribution & Sales

• Online booking and reservations

• Store locations should be close to service centers and charging stations

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

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

Promotion BudgetIncrease original budget for best exposure, from $3.9 to $5.94 million

Pull StrategiesSampling at Rental Agencies

Digital Marketing & Social MediaPush StrategyTelevision Advertising

• 15 second commercials

Print • Running 4-5 times, 1/3 – 1 page color ads

BillboardsProduct Placement in Music Videos

• People look up to celebrities

Sticking to segment & educate beyond segment to help people fall into category of Tesla buyers

Final Notes

Thank You