REDSTAR Project

Next step in Tesla’s marketing strategy

Red Star ProjectTESLA’S MODEL 3 LAUNCH IN

RUSSIA

Electric cars – a new category within the cars market

Electric cars are not motorised by a fuelled motor engine but by energy stored in batteries.

Electric cars should be differentiated from EV (electric vehicles), a category which includes plug-in hybrids.

Electric cars competition on the cars market include traditional car brands (Mercedes, BMW, Nissan…) as well as new ones (Tesla…). According to the tech news and R&D it could include top tech actors in the future (Google, Apple…)

Russian new cars market – Compared evolution and growth

Tesla Motors – A car company which is not a car company

Tesla Motors was launched in 2003, by 5 co-founders. The most known is Elon Musk, current CEO of the company.

Tesla Motors started the production of its first vehicle in 2008: the Tesla Roadster. It already produced 4 different models of cars – 2 roadsters and the Model X (Dark Star) and Model S (White Star).

Between 2017 and 2020 it will start the commercialisation of its fifth car, the Model 3, or Red Star.

0From 0 to 100km/h in 3

seconds

0 charge Moscow / Saint-Petersburg

0 emissions

COMPROMISE

0 charging expenses0

noise

0 smell

0 Parking fees in Moscow

ASPIRATIONS

POPULARIZE electric cars in Russia

PERSUADE consumers that electric cars are “cool”

WIN the dominant market share on electric car market in Russia

GET 30% of BMW consumers and 10% of Mercedes consumers

SELL 3000 cars in 3 years after launch

DEVELOP power stations or points for charging

BUILD an association in consumers’ minds:

Electric cars ?

Tesla strategic position for Red Star - PESTPOLITICAL

One of the major political factors affecting the industry is environmental protection laws (including Russian laws) that is highly appreciated production of more environmental cars.

ECONOMIC

Economic factors include economic growth in the alternative energy industry and increasing prices of fuel for customers. (In Russia price of petrol since 2008 increase from 22 Rub/L to 37 Rub/in 2015). Therefore, the demand for electric cars is higher than before.

SOCIAL

People are tend to protect the environment. Tesla is environmentally-friendly car ;)

TECHNOLOGICAL

Technology advancement, rapid globalization and Internet impact have a huge effect on the automotive industry. Tesla car create technologies.

•Many substitutes among gasoline cars (!)•Very few substitutes among electric cars•Switching is possible and affordable•No non-car substitutesStrong

•Mostly private individuals•Little ability to negotiate prices•No dealers of electric carsNeutral•High costs of switching

to a different supplier•Demand for components manufacturers•Growing demand for domestic suppliers•Limited amount of reliable suppliers

Strong power

•Much capital required•Governmental utilization fee for imported cars•Strong brand image of existing market player•Hard to reach economies of scale

Very strong barriers

5 FORCESThreat of New Entry

Buyer Powe

r

Supplier

Power

Threat of

Substitution

Competitive Rivalry

++

- 0

+

Competitive Rivalry• Very strong gasoline cars competitors• Extremely strong competitive brands• Perfect brand reputation of competitors• Few e-cars available on market• Developed and mature marketVery strong

--

A SWOT analysis – Tesla on the Russian cars market

Tesla competitors in Russia – (Classic) car market

The Russian car market is close to 99% of oil fueled cars. This situation makes Tesla a competitor for the brands and models competing here, looking for the same customers.

Taking market shares to those competitors is the main goal of Tesla, since the absence of a strong and competitive innovative cars market make the company competing with traditional oil fueled car.

Brand mapInnovative

Technically regular

Conservative Modern

Tesla competitors in Russia – (Innovative) cars market

The Russian car market is evolving. If electric and hybrid cars are still looking for opportunities to invest furthermore the Russian cars market, Tesla will have to take the lead in innovation and future technologies to take the niche.

In 2014 there were only 300 electric vehicles registered in Russia and 2000 hybrid cars.

The part of electric cars in the total car market in Russia should constantly grew up for the years to come.

Brand map426 km

120 km

150 km/h 260 km/h

Tesla Motors – Market strategy L

aunc

h Pr

ice

75,000 $(2012)

< 30.000 GCS

60,000 $(2012)90.000

GCS 30,000 $(2017-2020)

98,000 $(2008)

> 10.000 GCS

Market Size

Roadster

Dark StarWhite Star

Red Star

SegmentationGadget Guru

“It’s a great day to be me.”

• Successful, wired, free spirited, confident, and at ease

• Feels this is his best decade • Greatest device ownership,

pushes• Сontributes to content • Male dominated, above-

average • Income, single

Profiling

Sociodemographic: • Age: of 25 – 45• Income: Average income over $35K/year• Education: Higher• Social class: middle class Psychographic:• Lifestyle: stands for innovation, career oriented• Intrinsic motivation of purchase: being out of the box • Values: technology-savvy, self- realization• Type of psychographic model (by VALS): Achievers

“Buying Mercedes or Lexus means to be like

thousands of other users. Tesla Red car has mega

cool functional of a sport cars. Acceleration of 3

sec to 100kmh, no typical engine noise is

awesome!”

Valery, 29

Client Testimonials

“I appreciate things that make me feel special. My

Tesla story is not about climbing the hill with the

crowd, but about creating my own mountain. It’s

trendsetting, yet being yourself. It’s a freedom to

be yourself – freedom from clichés, gas stations,

paid parking.”

Diana, 35

Buyer Persona

Targeting

• Presentation • Direct advertising• SMM• Blogs and Vlogs• Showrooms

Positioning statement

TESLA is the only STYLISH CAR

that can go FROM 0 TO 100 in 3 SECONDS

without A DROP OF OIL

Positioning statement

For DRIVERS WHO ARE KEEN ON INNOVATION, TECHNOLOGIES, COMFORT and WANT TO BE AHEAD OF THE CROUD; TESLA is the only PREMIUM CAR that goes FROM 0 TO 100 in 3 SECONDS and can reach 260 KM/H WITHOUT ANY PETROL.

Unlike Mercedes, BMW and Audi, Tesla SYMBOLIZES A NEW ERA and is PERCIEVED AS AN OUT OF THE BOX CAR.