New Product Marketing of TeslaBy: Zach Dvorak

Company Profile

NOTE: Tesla Motors changed their name on 2/1 right after my report. The new name is just Tesla accommodating their motivation on energy and not just transportation.

1. Chose a company that you believe will be a good subject for developing new products. Explain why you think it will be a good company for developing new products.

I have chosen Tesla Motors for being one of the best companies in innovation for many reasons. Over the past couple of years, they have made themselves one of the leading businesses in developing clean energy vehicles for reasonable pricing. Along with that push to change the automotive industry for good they have also started to acquire other innovative companies to further push ahead important technology for the world. Their founders, and especially Elon Musk, have used their wealth to create an organization that challenges the status quo in ways other newly founded companies only dream of.

It is becoming increasingly difficult to find other companies creating such a dramatic change in their industry like Tesla is doing nowadays. The best part about their drive is that they don’t seem to be slowing down and some of their other competitors are struggling to enter a relatively new market. While they are already one of the top innovators, the next couple of years is crucial for their concepts to be a reality, since most of their new products are rather ideological more so than fact. But with the media and the openness to the public, it seems like Tesla is taking the same path as Apple did back in the day, and hopefully to the same success.

2. What is the history of this company. Use and cite a minimum of three sources for this.

To my own surprise, Tesla Motors started in 2003 by some Silicon Valley Engineers, Martin Eberhard, and Marc Tarpenning. Their focus was to “[wanting] to prove that electric cars could be better than gasoline-powered cars”i. This desire was shared by PayPal co-founder Elon Musk, who is nowadays viewed as Tesla’s spokesperson, and his focus was on creating an energy efficient vehicle.

The first car released for sale was the Tesla Roadster in 2006, which was to be released in mid-2007. It, unfortunately, got delayed until 2008ii because of setback that continues to affect the company today. After the fiasco, their CEO, JB Straubel, decided to step down and that is when Musk took charge. Under new command they announced their next car -the Model S. At the same time, they also received a federal loan from the Government for $355 million, which Tesla paid back nine years earlyiii.

While the Roadster was more for wealthy sports car enthusiasts, the Model S was more focused on the everyday driver (that was wealthy). It was the first step in making the

Tesla brand mainstream, and in 2012 the car was launched making it the world’s first premium sedaniv. It ultimately was one of the most innovative moves in the auto world in decades and was awarded Motor Trend’s 2013 Car of the Year. Something most new cars would never dream of.

After the release of the Model S, the company decided to end production of the Roadster and focus on more on efficient vehicles. This gave way to the Model X that was supposed to be released in 2014, but currently has not fully released all vehicles to those who has pre-ordered them.

By this time, Tesla has gained much attention throughout the world, and while the company has had many setbacks on technology and production the demand for the product continues to increase. Especially with their focus on upgrading their cars, like the updated batteries in the Model S models that became available in 2015.

Following the success of the Model X, the tactic of releasing the concept of a new car the same year of a rollout continued, with Musk unveiling the Model 3 in 2016. Trying to be the first electric car to be economically viable for everyday Americans. Before the end of the announcement, the car was pre-ordered 150,000 times, tripling the number of cars sold in 2016. The car is supposed to be released by the end of 2017.

Making energy-efficient vehicles has always been a priority at Tesla Motors. But the company has made other innovative moves around the auto industry that should be recognized.

“The last successful American car startup was founded [114] years ago. It’s called Ford.”v

Tesla is constructing a gigafactory in Nevada that will facilitate production of the mass-market vehicles. iv

“The gigafactory will improve the robustness of the electrical grid, reduce energy casts for businesses and residences, and provide a backup supply of power.” iv

Elon Musk has combined two of his innovative companies into one: Tesla Motors and SolarCity. Potentially creating a fully working, clean energy way of charging your home and car. vi

They are creating power charging stations along major highways across the nation allowing Tesla drivers to use their cars on long trips.

3. What industry (industries) and product categories does the company compete in (e.g., automotive, consumer electronics, non-alcoholic beverages)? Provide a brief industry profile for the main industry including:

o Age of the industry

The automotive industry was created in the 1890s The electric car industry started in 2008 by Tesla

o Total industry sales in dollars and units for 2015 or 2016.

The chart shows the monthly unit volume (millions) of light vehicle sales since 2007. The current sales rate for autos and light trucks as of December 2016 is 18.30 million. As you can see, the 2016 total car sales barely pass ahead of 2015’s total unit volumevi.

o Sales trends for the industry—are sales growing, flat, or declining and what is the evidence of this?

Depending on the company’s focus, the sales could be rapidly changing over the next couple of years. Per Strategy& the automotive industry in the US has been increasing in recent yearsvii, but it might not last longer than a couple of years before it begins to fall again. They also focus on developing markets as a main focal point for most automobile manufacturers, as those middle classes continue to grow in those countries.

Unfortunately, the new emerging markets were slow in 2015 but look likely to prosper in the coming years.

This bodes well for the auto industry although there are disturbances in other markets.

In the industry, there has been many impactful changes in the market over the past couple of years, and the behavior of the consumers is slowly shifting. Making the need for adaptation essential for the traditional companies to maintain success.

Along with that, the increase in laws and regulation on the industry are steadily increasing with the releasing of new technology. With these new laws creating difficult tasks for the manufacturers to become greener and safer for the population.

McKinsey&Company also provide some interesting changes in the industry in the next decade and a halfviii:

The creation of new technology, and simple increase of car sales could dramatically increase total sales.

Ride sharing should become more prevalent in the coming years.

Region location will become more important for targeting potential customers. Autonomous cars are on the way, and they predict 15% by 2030 Electric cars are slowly becoming more viable More new car manufacturers will emerge and fight for niche markets

4. What is the company mission statement? If you cannot find an official mission statement, create one.

It was “to accelerate the world’s transition to sustainable transport.” But was changed in mid-2016 to “to accelerate the world’s transition to sustainable energy.”ix

5. What is the U.S. revenue and the global revenue for the most recent year?

For the year of 2016, the last quarter of the fiscal year has not been released yet. But it looks to be the most important year in Tesla’s short history since the second and third quarters both brought in revenue. This has allowed Tesla to pay off its debt while also investing more money in the futurex. They continue the path of releasing 50,000 units by the end of the year and it looks like the company has found its footing.

As for the progress of the business, each year the company has increased their sales by over 20%. The last full year Tesla brought in over 4 billion in revenue worldwide, and that number is trending upward for the 2016 year. Although the sales continue to increase the net income has never ended in the positive. Meaning there is still room for growth, and investor continues to hope sooner rather than laterxi.

Information provided by MarketWatch

6. What is the U.S. market share and global market share for the most recent year?

It is challenging finding the market share for Tesla Motors since it continues to be a focus in smaller markets. I could find that in 2014 the total market share for Tesla was 0.3%xii. That is a very small share but the company was relevantly new with the Model S and Roadster being the only two vehicles available for sale. Both vehicles are creating brand new markets, making performance and luxury vehicles electric.

This makes it challenging to compare the company to big hitters in automotive world. Tesla is not ready to compete with those yet, and hopefully the Model 3 will bring that move closer. But right now, they are dominating the markets they are currently in.

Per Capital Marketing Laboratories, Tesla is dominating the large luxury vehicle market, which is where the Model S is locatedxiii.

They share that the movement upward for Tesla has come from beating the competitors but also moving new people in the market. They now have 25.4% of the market share for this sector. Hopefully with the production of the Model 3 Tesla will be able to enter a new market the same way the Model S did.

Adding to the Model S dominance is the market share of electric vehicles. For the year of 2015, the vehicle had a 41.82% market sharexiv. While the company faces a demand for production growth, they continue to hold a strong proportion of these industries. It does lead to the thought that maybe the market is becoming tapped, or rather Tesla has created an overbearing force that it truly has no competitor at this point. No matter the case, Tesla might be the first mover, but that lead may be swallowed up in the next coming years. So, they should start to focus on units sooner rather than later.

7. Describe the general nature of the customer base of this company including multiple demographic and multiple psychographic factors.

Using DECA’sxv research on Tesla Motors, the target market for the company seems to be straightforward.

Demographics

Age Range: 30-60 Upper Middle Class Families  Household Income of $80,000+

Psychographic

Concern about gas consumption, economic value in car Desire for an affordable luxury car with high safety value

With their focus on luxury vehicles, the market is evident, rich older people who may be interested in cleaner options. They also are focusing on the younger college educated people who may potentially become buyers. Most people invested in Tesla are the same individuals who were excited about the Prius. Clean sources of transportation are becoming better, and the population is starting to take notice. Hopefully, for Tesla’s sake, these aren’t temporary customers.

Luckily Tesla knows it momentum can disappear quickly. They are currently focusing on entering new markets, and therefore will soon have new demographic and psychographic focuses. Until the Model 3 comes out though it is hard to tell what that market will be. It will probably target younger more middle-class families who are motivated by technological and environmental progress. But that is an opinion not backed by any facts right now.

8. Identify the company’s competitors. Provide a profile of each including background, main industry, annual revenue, market share, and general strengths.

Apple

Chevrolet - Automotive

Ford - Automotive

Google

Honda - Automotive

Nissan - Automotive

Toyota – Automotive

Opportunity Identification and Selection

Product Innovation Charter

Prepare a detailed product innovation charter (PIC) based on Figure 3.5 from the textbook and the supporting text.

1. Background – Conduct a full and extensive S.W.O.T analysis as the basis for this. The “opportunities” and “threats” part of this provides for an extensive trend analysis of things that are actually and currently happening in the real-world that are relevant to the company and its current product categories or product categories that it might potentially consider.

Strengths:

Top-level communication between drivers and companyxvi

o Forced into this position because of their product Tesla has become a leader in community service. Since you can’t bring one of their vehicles in to a regular mechanic, and they continue to get more complex every year. Tesla has needed to make communication a focal point of the company. Listening to the loyal drivers of Tesla and giving the community the tools they desire make other auto manufacturers seem distant and negligent to their consumers.

Innovative in-car technologyo Along the same lines as the point above, Tesla has the hardware and software

unmatchable in the marketplace. The vehicles feel more like a new tech gadget than a new car, and even come with regular updates adding new features to the car. All this without ever needing to bring in the vehicle for checkups. The concept seems so normal and yet light years away from being a reality, yet Tesla has harnessed what other technologies have come accustomed to.

Creating a new market in the auto industryo There has always been a luxury sedan market, but now it has been separated

even further. Now there is a market for electric vehicles, and while Tesla has yet to make its way in to every model variation, the company has dominated the three areas they currently preside.

Continuous sales growthxvii

o Year after year Tesla has made continuous improvements in their total sales. Now it has not come with an actual profit, although that could be happening sooner than one might think. But for a new company in an old market, seeing this success is beneficial for the market value of Tesla.

Strong brand namexviii

o Continuing off the last point, Tesla has become globally known for their innovation in the auto industry. Being related to Apple countless times as the next big company, it will only be a couple years until Tesla could potentially live up to that name. Until then, the press around the company continues to be great in getting the necessary information out to the public and investors.

Vertical integration strategyxix

o Following the footsteps of Apple, the company has control over almost every part of the business process. It makes sense when you don’t have a mass quantity of product available to sit in lots. As well as the need to educate potential buyers on the benefits of owning a Tesla vehicle. Keeping the company together is necessary at this point and beneficial for the consumers.

Strong relationships with important market partnerso Having connections with companies like Google, Panasonic, and Toyota has

allowed Tesla to grow at an alarming rate. The mutual gain by the companies to improve Tesla’s backbone ultimately will lead to a greater market advantage than the one they currently have. The benefit is currently being felt but it will only be bigger as time goes on.

Energy efficiencyo By combining Elon Musk’s SolarCity with Tesla, the mission for the company

has become more evident. The focus on creating a cleaner society in all facets

of life is now a main focal point of the company. It also is a strong selling point for those enticed by the ability to make a holistic difference in their community.

Weaknesses

Entering an old market with very few new competitorso There has not been many new competitors in the automotive industry in

decades. Making Tesla’s emergence unlikely and concerning. With their competitors having almost every aspect of the market on their side, Tesla is fighting an uphill battle. Currently they are on a successful path but the market is adjusting quickly to the new competitor.

Evaluations of Tesla are based on the future and not nowo Potential is leading the company to their position in the market. As of right

now, the company has yet to make a profit, and while sales continue to rise so does the costs. The investment into infrastructure will pay off soon, but until then the risk of the company has not been simmered.

Low Oil Pricesxx

o Oil prices have significantly dropped since 2015 and continue to hold constant. The low price of oil removes a potential selling point of Tesla out of consumers’ minds.

High Debtxxi

o Every SWOT analysis on Tesla had this as a weakness for the company. Currently the company holds a significant amount of debt and unless paid off soon the interest rates will slowly start to hamper the long-term growth of the company.

Spending cash at an alarming rateo Investing in the company is integral to growth, but eventually the money will

need to end up in the pockets of the stakeholders and not the infrastructure. Expensive

o Currently the vehicles available to purchase continue to be on the expensive side of the market. Until the cost is lowered, this will be a major drawback to the Tesla brand, which currently sells luxury cars that consumers find too expensive. Something that shouldn’t happen in the industry.

Limited Supply Chain o Until the Gigafactory is finished the amount of vehicle’s Tesla can produce is

limited. Until the problem is fixed, there will continue to be a higher demand for the product than what can be sold.

Delayed consumption timeo Even after purchasing a Tesla vehicle, it may take months or years until the

consumer will receive the product.

Opportunities

The Gigafactoryxxii

o The lithium-ion battery factory will be fully operation in 2018 and will help spark mass production of Tesla vehicles. It will produce more ion batteries than the rest of the world combine and help drive down the costs along the

way. The investment will finally start paying off next year and the long-term goals will become a reality.

Global crackdown on fossil fuelso As environmental regulations become more prevalent around the world, the

need for substitutes are growing in demand every day. Eventually the automotive industry will be affected immensely and Tesla is in a strong position moving forward to lead the market.

Consumer tastes moving towards environmentally friendly optionso Following the same concept as above, the demand for energy efficient

products is currently a main product separator. The Tesla brand is one of the leaders in clean energy and the brand name will continue to be on the front of consumers’ minds as environmental issues become more important.

More product offeringso Only have three models for sale leads for more room for expansion. Once the

factory is up and running the next steps in creating economical vehicles of all models will be a path for market penetration.

Overall wage growthxxiii

o As the world becomes wealthier, the potential consumers of Tesla grow. It is a long-term idea that has seen success already in other industries. But for right now it is one factor to keep an eye on.

The deregulation and potential tax cuts under the Trump administrationo One of the many promises of the new administration is to keep and create

new American jobs. By removing regulations and changing the tax code, it is likely Tesla may benefit from this unpredictable time.

Expansion opportunitiesxxiv

o Right now, Tesla has a very small focus in the market, which leaves plenty of room for growth in the future. Both globally and market-wise the future potential is a reason the company has so many investors.

Diversification of company’s missiono By removing motors from the brand name Tesla is obviously moving into a

more of a broad mission. Allowing for more areas to grow than just the auto industry. But until those ideas are shared with everyone, it is definitely a wide-open opportunity.

Self-driving carso Seems simple, but the reality of self-driving cars is slowly happening. Being

one of the first companies to do it successfully will have a major impact on the industry and the world.

Threats

Other competitors developing similar technologyxxv

o The auto industry is old and adaptive. It would not be shocking to see the major heads in automation create fully electric cars that are cheaper and mass produced before Tesla can.

Government subsidies endo While the new administration can provide benefit to Tesla, it can also

severely hurt them as well. By removing the subsidies Tesla receives the

company would feel the repercussions and the losses at this point could damage the brand name and valuation.

New competitors entering the marketo Both Apple and Google have been rumored to be interested in creating a fully

electric car. Having either of those companies join the market would impact Tesla more than if any other current automaker did. Tesla has the same following that these two brands have, so losing the advantage would be a bad sign for the innovative company.

Dealership regulationso By not allowing companies to be sold by the manufacturer, Tesla hasn’t been

allowed to sell in certain states. If more laws like this come together it could make Tesla change their entire business plan.

Continues to be expensiveo While the expectations are, that costs will go down eventually. The vehicles

offered now and in the relative future are still too expensive for the average buyer. Until the cost goes down, Tesla will not be able to fully go after their entire potential market.

Decreasing oil priceso If oil prices continue to stay low or get lower the need for electric cars

because the cost of not paying for gas loses incentive. Time

o Most products offered by Tesla so far have always been delayed. Ordering can potentially take months or years, and competitors are right behind Tesla on the electric car front. Time is a clear enemy of Tesla in the auto industry. Hopefully they will be able to turn it into an advantage.

2. Area of Focus – Base this on pages 74-77 and page 80 of the text. Develop an Area of Focus for Dyson based on a dual-drive strategy (technology drivers and market drivers). You must identify both types of drivers in a way that adequately covers the strengths and scope of the company.

Tesla has a set up their company to succeed on a dual-drive strategy in the past couple of years. Trying to become a leader in a new automotive technology has always been a core component, but now getting the product out to the consumer and the end experience has also become a selling factor.

There are a couple important factors in both the technology and market opportunities that Tesla specializes in. To start we will look at their Tech opportunities:

Production Processxxvi

Telsa has always prided itself on being the leader of innovation in the auto industry. That innovativeness doesn’t just come through in the end product but occurs throughout the entire creation process. Their focus on creating the best form of transportation has created an opportunity in improving the battery world. With the opening of the Gigafactory in 2018 the potential for longer lasting batteries in their cars and in people homes is close to reality.

The company also creates and manufacturers almost all of its parts in-house. Something rarely done by auto manufacturers today. Their reason for doing so is to create the most consistent and constantly improving cars on the marketxxvii. Also, most of their products are so unique that developing them internally is necessary. Since the technology is more advanced than most cars on the market, sending out manufacturing to the normal locations is an unwanted risk.

Science

Relating back to the point above, Tesla prides itself on the innovative process which of course includes science. They were the first car to be battery operated, and are currently building the first lithium-ion super factory. Improving battery duration by 30% and dropping relative battery prices down.

The company also just purchased Elon Musk’s SolarCity, potentially creating a partnership with solar and battery operated vehicles. They also focus on creating the most consumer-friendly software on the market. So, it makes science seem like a strong focus and opportunity for the future.

Product Type

More of a simpler answer, but the creation of an electric car has changed the auto industry for the better. By allowing consumers another option so drastically different than the rest, the market has had to shift and compete in this relatively new concept that a couple of years ago, seemed impossible.

Tesla also does a fantastic job in attracting the right kind or user base to their product and creating a whole new market for other necessary implications for their service. Some of these market opportunities include:

Potential Userxxviii

Tesla has plenty of opportunity to grow in potential users since their current base is so limited. With the release of the Model 3 this year or next, the potential product and demand of their vehicles will open up the potential market exponentially.

Currently, the company only has targeted luxury car buyers, but with the focus on reducing costs and offering new model lines Tesla is on the edge of creating an economically sound option for those on the lower end of the wage distribution.

They also have a focus on changing how the auto industry sells its vehicles. By making more commercial and more of an item, Tesla is revolutionizing how people view car buying. By doing so, the auto dealerships are becoming upset at the shift away from them and the potential new threat of outlet malls. Strange concepts that Tesla feel can create new opportunity.

Application

What Tesla continues to create are more than just car advancements. Their new battery factory will be creating more electric cars while also producing more li-ion batteries than the whole world combine. A major cornerstone for the company and the technology. They also are creating new ways to obtain electricity, whether that is by solar or on of their electric fill-up stations.

Tesla has the first-mover advantage of the electric car industry which has paved new opportunities to expand the technology from the car to the home. That is why they continue to purchase clean energy companies hoping to provide consumers the end goal of an entirely clean household.

Locationxxix

Tesla has barely made a dent in the global marketplace and vows to do so relatively soon. But location continues to be a potential opportunity for the company. By changing how people find and buy automobiles, Tesla is creating a more cost effective process. No longer do you need a giant lot to store potential cars, you can sell your cars inside of Nordstrom’s instead.

The concepts coming out of Tesla seem crazy until they are fully implemented. It shows their innovation is working and their creative process is opening up new opportunities everyday people never saw possible. I look forward to seeing how Tesla’s opportunities turn into success, but until then I look forward to the process.

3. Goals and Objectives – Based on the section from the text on page 77, develop short-term objectives and long-term goals for both growth and market status.

Elon Musk has consistently focused on the future and making sure the whole world knows it. By setting long term goals for Tesla, it pushes the company to try and obtain some of their loftier goals.

From a vehicle manufacturer standpoint, they have potential to grow into more models and other modes of transportationxxx. From electric public transit and trucking, the growth out of the consumer market for vehicles is a long-term goal.

Focusing on the industry we know the most with Tesla the electric car has become a well-known name. In the three market’s they currently reside in, Tesla is dominating the competition. The only problem is the markets are small. So, moving into a larger market and gaining a similar market share is a necessary goal for the long term. If they manage to get a 15% market share in the sedan marketplace in the future, it seems likely a possible goal.

Another focus for Tesla now is the move away from fossil fuels. Trying to create an entirely sustainable household is one of the goals that is somewhat distant for now. But with the purchase of SolarCity, the combining of technologies is rapidly approaching. Unfortunately, the products will continue to remain on the high-end of costs.

One of their primary goals should be to lower the cost of the environmentally friendly products. The market available for Tesla will continue to be obstructed by cost until they manage to solve this issue.

It is difficult to say where Tesla will grow since the company has the potential to go many different routes. They have already created new markets in longstanding industries, so it may not be surprising in the coming years for the company to create another brand-new market. Their opportunity is limitless and focusing on a cleaner future seems to be the best bet for growth.

4. Special Guidelines – Base this on the section from the text on pages 77-79. These guidelines are flexible in nature and should take into account the company’s core competencies and any factors the company seems to stipulate for the development of its products that have not already been covered in the background and area of focus.

It has been brought up slightly in the above sections, but Tesla is a clear first-mover company. Focusing on new ideas and concepts leads the brand into new areas for growth. They created the electric car, and remain the heads of that market. But they are looking to smash their competitors in all the specifications available for the automobile industry.

While that continues to remain the focus of the company, it has looked to move into other areas within the auto industry as well as out of it. Trucks, buses, and other modes of transportation are obvious markets to enter. But fueling stations in and out of the home are also potential areas for growth and market dominance.

Having innovation be the primary factor in your company leads to the need of Tesla to always be first in the market. They have prided themselves on their national broadcasts sharing the new ideas for the company that enthralls the news and consumer base just like Apple. Although, being first in the auto industry might not be that important of a selling point. Sure Tesla gets the publicity, but the industry is run on performance and image.

The best concept for Tesla to look at is the Toyota Prius. A hybrid car that continues to dominate that industry and is the primary goal of all Tesla vehicles. Fortunately, Tesla has found their product to be similar and has gotten strong market dominance in the electric industry just like the Prius did with the hybrids.

One final note that Tesla likes to focus on is the creating lofty goals. While they don’t tend to achieve the goals, it still provides the excitement and drive that consumers love to hear.

Problem Analysis

Step One – Determine the appropriate product category.

As I have stated in my previous research papers in Part 1 and Part 2xxxi there are a couple of different paths that Tesla can go. They currently include:

Short-Term Growth

They are currently on their way to distributing the Model 3 this year and hope to start manufacturing 500,000 once the Gigafactory is fully operational, which appears to be on track for 2018xxxii. Tesla will be able to increase their market share of their current vehicles significantly once the factor is fully operational. Since they only are selling three individual models, there is plenty of space for growth immediately.

The Model S is an electric luxury sedan, the Model X is a luxury electric SUV, and the Model 3 is looking to be a premium sedan or one that is more economically obtainable for the average car buyer. So, the next step in vehicle options would be the premium SUV market. Unfortunately, that would ruin the company’s sneaky sexual naming system of S, 3, X, but the sales from a new market should make everyone okay with the loss.

Of course, this option for Tesla is the most obtainable and could help spark some of their more long-term plans into action. They would be entering the second most popular vehicle segment globally with over 500,000 units sold in 2015xxxiii. But with high sales means high competition, luckily for Tesla the market continues to grow annually and adding an electric vehicle into the mix can only be positive.

Long-Term

Tesla could aim to revolutionize the industry even more in the long-run, which obviously, it seems determined to do. One major way this could be done, and is being done in certain countries already is the automated sixteen-wheeler trucks. While innovative already, Tesla could push the new industry even further by making the entire system entirely run by sustainable energy.

Currently just a thought for a relatively new company, but the potential is not too far out of reach. Within a couple of years, this long-term goal could ultimately change our society as we know it.

Future

If we wanted to think outside of the box, we could choose the path of unexpected insanity. You could choose hovercars, which to people from the 80’s are still disappointed don’t exist. Or you could choose a self-driving bus system, which development is currently happening in China. Unsurprisingly, Tesla may be thinking about these ideas, but they belong to the future ideas category for a reason.

Ultimately, I decided that the product category that would best benefit Tesla was the short-term option. By focusing on the now, the company can get to the point of tomorrow

quicker than expected, and by adding compact SUV’s to the already quality line of model’s, Tesla is bound for a profitable year soon. The production is close to achieving all of its possibilities for creating a dominant segment in the popular market, the product type is the perfect next step for the company, and the potential users from the relatively low price just make this decision too difficult to pass up.

Step Two – Identify a group of heavy users and establish a profile and description.

Looking back at what I have categorized as Tesla’s target market. I have concluded that my market segments are too broad. So instead of coming up with my segments, I will use some of the top segmenting companies on the market.

Using MRI+ and I focused on the likely buyers in the SUV market. By seeing which demographics are more probable to buy the vehicle, I could take these important demographic indicators and combine them to find the ideal demographic groups, for this case I will use Experian Mosaic Segments. Once finding the segments, I can start personally targeting these likely buyers.

When looking at the MRI+ findingsxxxiv, we can start to target certain individuals in this segment for SUVs. The higher the education received, the more important factors in purchasing this kind of vehicle, as well as being in the age range of 35-64. So, someone in the middle of their life with a high education is a part of the market. Then we have the household income, where the more income the consumer has, the more likely they are to buy this model. Also, working in the white-collar occupations leads to higher purchase probability. The final main segment provided by MRI+ is race, where Asian and White consumers are the more significant purchasers of SUVs and a potential Tesla model.

So, using that information I decided to focus on:

College Educated Asian and White people Aged 35- 64 Work in Management, Business, Financial, Professional, and related occupations Make a household income of $60,000 or more

Using Mosaicxxxv I was able to find the most likely segment groups that could possibly buy the new premium Tesla SUV. The segments that I found that are most likely to buy include:

Group A: Power Elites – The wealthiest households in the US, living in the most exclusive neighborhoods, and enjoying all that life should offer.

o They fit into almost all the demographics MRI+ provided and are highly likely to buy a premium version of an SUV (although they are probably more likely

to buy the Model X)

Group B: Flourishing Families - Affluent, middle-aged families and couples earning prosperous incomes and living very comfortable, active lifestyles

o The description says it all, this may be the most compatible segment group available for Tesla.

Group C: Booming with Confidence - Prosperous, established couples in their peak earning years living in suburban homes.

o Not as enticing as the first two options but still holds potential to be likely buyers. I would recommend for a large-scale marketing campaign to include this group as potential buyers.

Group F: Promising Families - Young couples with children in starter homes living child-centered lifestyles.

o The lower end of the age demographic that Tesla should focus on and the trend of families continues. An SUV fulfills the needs of more space while not being a mini-van, something that a lot of families are interested in.

Note: All the data and wording used is straight from the Mosaic USA site for segments which I provide a link to in the endnotes.

By combining both sources of information, the heavy users of Tesla tend to be wealthy families who are prospering. Most still have children at home and have enough expendable income to afford high-end cars. They tend to be more conservative in their views who have varying beliefs on the environment, but the younger end tends to be more

green aware. They already own a hybrid car, which likely puts them on the path to being interested in an electric vehicle.

Most currently live in a suburb or are soon to be making a move out of the cities. They graduated college with a bachelor’s degree if not more, and now work at a white-collar job. Also, are up to date with technology and prefer to do everything possible on the Internet and not in person. These potential buyers who fit this mold are the most likely heavy users for Tesla.

Step Three – Establish a set of problems associated with your product category from your identified customer group or groups. This should be based on the instructions for Step Three in the text and information covered in class. Your search should convince me that your efforts have uncovered all possible customer problems.

When trying to discover as many problems as I could for Tesla, I figured the best way to go about finding them is through a surveyxxxvi. Using this method provided me the opportunity to reach a wide variety of consumers with a quick return rate. While asking people in person would have led to more detail answers, I think the survey I created brought in some important problems Tesla should look to fix in the future.

The focus of the survey was to focus on the benefit of the vehicle. When looking at Tesla’s potential new market in premium SUV’s it made sense to figure out these important factors.

1. What benefits overall do people expect out of their car 2. What improvement or additions do you want in your next vehicle3. What benefits need to be in an electric car for the individual to think about buying

one4. What prevents an individual from buying an SUV? 5. Why do they like certain brands of automobiles

I figured that asking many questions around the subject would return some different possible answers. Since the auto industry is so detailed in their options, it made sense to formulate a survey that tried to flow the answers into questions about electric vehicles and SUV’s.

I posted the survey on my Facebook, Twitter, and LinkedIn while also posting it to a couple of subreddits (cars and samplesurvey) on Reddit. This allowed for everyday individuals, albeit on the younger side, to give their opinions about vehicles. The relatively younger individual response rate makes sense for Tesla’s future demographic market, and with a potentially cheaper SUV model, those young people could pursue a purchase.

What I have found were some very prominent issues that people have with all the questions I asked. I will separate the answers by the questions category below.

Why people do not want to purchase a vehicle:

Problem Number who wrote itCost of vehicle is too expensive 5Environmental impact 1Upkeep cost 3Good public transportation 2Cars are dangerous 2Cost of insurance 2Live in city 2Total Responses 10

What would need to change about cars to make you want to purchase one?

Problem Number who wrote it Sustainability 1Fully Electric 1Driverless (automatic) 3Cheaper 2Anti-theft 1Anti-accident 1Total Responses 8

What made you buy your current vehicle?

Benefit # who wrote it

Fuel efficiency 15Price 14Reliable 12Good looking 9Good sized vehicle 9Large Storage 5leather interior 5Passed down to them 5safety 5Powerful 4All-wheel drive 4Heated seats 4Fun to drive 3Sound system 3Rear-view camera 3Good seats for long distance

3

Performance 3

Comfortable 3Transmission type 3Bluetooth 2Blind spot monitoring 2Large capacity 2Sunroof 2rear cross traffic alert 2Low maintenance 2Durable 2hybrid 2electric 2Practical 1I like classic cars 1cruise control 1Service availability 1Remote start 1Removable back seats 1Easy to park 1Drivetrain type 1Tow capability 1Center locker 1Off-road capable 1Keyless entry 1USB ports 1push start 1auto dimming rear view mirror

1

Alloy wheels 1good suspension 1color of vehicle 1moon roof 1technology 1safety features 1stowable seats 1four doors 1healthy 1front wheel drive 1screen that shows speed 1traction control 1total responses 69

What improvements do you want in your next vehicle?

Benefit # who wrote it

Fuel efficiency 14

Heated seats 8Rear-view camera 7Bluetooth 6Sound system 5Sunroof 5GPS 5Nicer Interior (leather) 4Blind spot monitoring 4cruise control 4Reliable 3Performance 3auto start 3larger sized vehicle 2All-wheel drive 2Comfortable 2technology 2power windows 2smaller size 2Good looking 1Large Storage 1electric 1classic car 1Off-road capable 1USB ports 1cd player 1cup holders 1touchscreen 1automatic driving 1driverserat height adjustment

1

built in garage door opener

1

heated steering wheel 1remote locks 1dual climate control 1fog lights 1rust proofing 1lane departure warning 1auto dimming side mirrors

1

road noise isolation 1vented seats 1hands free calling 1automatic brakes 1Total Responses 69

Improvements # who wrote it

price 6battery life 6not enough charging stations

5

better performance 3charge time 3environmental impact 3less features 1more advertising 1battery life span 1reliability 1easier maintenance 1better design 1more options 1Total Responses 30

What do you dislike about an SUV?

Problem # who wrote it

size 22fuel consumption 8overpriced 3hard to drive 3no need for extra seats

2

ugly 1environmental problems

1

Total responses: 31

What did you like about the brands?

Benefits # who wrote it

reliable 18experience with brand 11

trusted 7costs 7look good 4good quality 4durable 4gas mileage 3recommended by someone

3

service support 3good performance 2has good ratings 2environmental benefits 1great features 1low maintenance 1high tech features 1electric vehicle option 1don't like American cars

1

availability for repair 1Total Response 79

Step Four – Sort and rank.

Since I felt that the area of focus for Tesla requires many different important questions, creating a single list of issues will be challenging. With the separation, I will create different tables filled with the most prominent problems or benefits consumers are looking for in each specific category. Then I will look at those results and form a general list of problems Tesla should focus on.

It is also important to note that interest in the electric vehicle and SUV’s is even, with both receiving 63% of the individuals saying they would buy both types. If I were to continue this survey, I would recommend seeing how many would buy an electric SUV and see the price range required for people to view it as reasonable.

For now, here are the top problems/benefits needed in vehicles:

Important NowBenefit # who wrote it % who said it RankFuel efficiency 15 22% 1Price 14 20% 2Reliable 12 17% 3Good looking 9 13% 4Good sized vehicle 9 13% 5

Important in the future (addition to now)

Benefit # who wrote it % who wrote it RankFuel efficiency 14 20% 1Heated seats 8 12% 2Rear-view camera 7 10% 3Bluetooth 6 9% 4Sound system 5 7% 5Sunroof 5 7% 5GPS 5 7% 5

Improvements needed in Electric carsImprovements # who

wrote it% who wrote it

Rank

price 6 20% 1battery life 6 20% -not enough charging stations

5 17% 2

better performance 3 10% 3charge time 3 10% -environmental impact 3 10% -

Problems with SUV'sProblem # who wrote

it% who wrote

Rank

size 22 71% 1fuel consumption

8 26% 2

Favorable Car BrandsBenefits # who wrote

it% who wrote it

rank

reliable 18 23% 1experience with brand 11 14% 2trusted 7 9% 3costs 7 9% 3

Important note: Within the comments for car brand, Tesla was well received although most have ever driven one. So, experience with brand matters, and Tesla needs to figure out how to get into more consumer’s garages.

My Ranking of Important Problems -

1. Battery Life (fuel efficiency)2. Cost

3. Reliability4. Availability5. Technological Features

Most of these issues Tesla already knows but of course are the ones preventing people from trying out the brand. By getting costs lowered and increasing the battery life, more consumers would start to give Tesla a chance, and as my research has shown before on the other two parts, Tesla is well on their way to hopefully solving the top problems. The next issue becomes reliability and availability, which the quality of Tesla will be the primary focus of the company as well as the practical use of electric vehicles throughout the world. It will only be time before new problems arise on the list and old one get solved.

Concept Generation

1. Proposing solutionsA. Identify the top three problems

Rankings:

1. Battery Life

2. Cost

3. Availability*

*I have decided to replace reliability with availability for my focus problems. Reliability is something that other car manufacturers struggle with, and that is a major point for many consumers. Tesla is known for their reliability in many aspects, and combining both availability and reliability is doable. But I feel that more consumers who would potentially buy an electric car if improved prefer to be able to use a Tesla for cross country trips. Allowing consumers, the same ease as going to a gas station or buying a car in multiple locations is a major problem Tesla currently faces.

Note: The Tesla Model X is known for being unreliablexxxvii. So, while it is a problem for that particular model, the potential future SUV and upcoming Model 3 will lean more towards the originals rather than the X. At least that is the assumption I am making to lower it in the rankings and raising availability.

B. Generate a list of potential solutions using brainstorming techniques

Battery Life

Make a bigger battery Solar powered backup battery Community energy charging station Extra battery like a spare tire

Solar powered roof Larger battery

Cost of Car

Government funding Raise funds Create a lower quality vehicle Less functions Simpler Mass produce parts will drive down costs Outsourcing parts

Availability (Replacing Reliability)

More stations More environmentally friendly Ridesharing More safety technology Autonomous car More customizations Roadside help (AAA) More accessible power sources Replaceable battery stations Partnerships with companies to do store charging stations (Chipotle)

C. Supplement brainstorming lists

Focus on simplicity and less on futurist designxxxviii

Improving the production line to be optimized for rapid car production Make a baby friendly car (car seat acceptable)xxxix

Needs own powering station A list of problems that should be updated by Tesla or included in new models:

https://teslatap.com/questions/ Focus on promotionsxl

Offer incentives in purchasing a vehicle Allow more test driving campaigns Wireless charging Faster computer software included in the carxli

2. Narrowing proposed solutions

Using my past research in Part 2 as a basis for my criteria, I will be creating a guideline to hone down potential problems worth fixing in a new product for Tesla. By focusing on the most important factors that Tesla thrives in, some problems will potentially be resolvable and become a competitive advantage. I also will be including some other factors that will be essential in choosing realistic problems. The criteria I will be focusing on will be:

Expands Current User Base (converts potential users) Increases Tesla’s Locations Expands Products Offered Optimizes Productions Process Creates a Competitive Advantage Environmentally Friendly Realistic Solution

Expands Current User Base (converts potential users)o 5 – The main focus of Tesla currently is to expand their market share. So, any

solutions to Tesla’s problems that increase the user base are the main importance. This is one of our market opportunities and pursuing it is a must.

Increases Tesla’s Locations o 5 – One of the main problems for Tesla is availability, and creating a solution

for that problem is necessary. Increasing the locations for Tesla whether it is dealerships, charging stations, or anything related will help reduce the hesitation of consumers that are holding off.

Expands Products Offeredo 4 – While this whole process is trying to create a new product, some of the

solutions possible do not create a new product. It will be important to focus on the solutions that create new opportunities rather than upgrade the infrastructure of Tesla.

Optimizes Productions Processo 3 – Like above, new product opportunities is more important, but also

creating a solid system behind the scenes is slightly less important now. Lowering the cost of the vehicles is one of the big three problems, and providing cost effective solutions is still necessary. Hopefully it will allow a new product to be cheaper like the consumer’s demand, but it is in the middle ground on the importance level scale.

Creates a Competitive Advantageo 2 – Before focusing on advantages, Tesla needs to develop a larger market

base. They already are the first-movers in the industry and need to use that advantage before it is too late. This criterion is a great compliment to the more important factors, just not currently a major focus.

Environmentally Friendlyo 1 – Something people look for in the auto industry is environmentally

friendly products. Tesla is already on the way to being the greenest of all of them, so definitely a fact, just not of great importance.

Realistic Solutiono 4 – Being practical is important. While flying cars may solve some problems,

it just isn’t realistic for Tesla to produce. Keeping the solutions grounded in practicality will help target real consumer needs rather than childhood dreams.

Answer for C-E

SolutionsExpands User Base

Increase Locations

Expands Products

Optimizes Production Process

Creates Competitve Advantage

Environment Friendly

Realistic Solution

Total Points

Average Rating

Criteria Importance 5 5 4 3 2 1 4 175 5More Charging Stations 3 5 2 1 4 3 5 82 2.34Replaceable battery stations 3 5 4 1 5 3 2 80 2.29Partnerships with companies to do store charging stations 3 5 2 1 5 3 4 80 2.29Community energy charging station 1 5 3 1 5 4 4 75 2.14Create a lower quality vehicle 3 1 5 1 4 1 4 68 1.94Ridesharing 4 2 1 1 4 5 4 66 1.89Wireless charging 3 3 3 1 5 3 2 66 1.89Make a bigger battery 4 1 1 1 5 3 5 65 1.86Extra battery like a spare tire 3 1 4 1 2 2 5 65 1.86Autonomous car 3 1 2 1 5 1 5 62 1.77Faster computer software included in the car 2 1 4 1 4 1 4 59 1.69Make a baby friendly car (car seat acceptable) 3 1 3 1 1 1 5 58 1.66More customizations 3 1 5 1 2 1 2 56 1.60Allow more test driving campaigns 3 2 1 1 3 1 4 55 1.57Solar powered roof 1 1 3 1 4 5 4 54 1.54More accessible power sources 2 3 1 1 3 3 3 53 1.51Offer incentives in purchasing a vehicle 4 1 1 1 2 1 4 53 1.51Less functions 1 1 4 1 1 1 5 52 1.49Solar powered backup battery 2 1 1 1 4 5 4 51 1.46Mass produce parts will drive down costs 1 1 1 5 4 2 3 51 1.46Improving the production line 1 1 1 5 2 1 4 50 1.43Focus on promotions 2 1 1 2 1 1 5 48 1.37Government funding 1 1 1 4 3 2 3 46 1.31Raise funds 2 2 2 2 1 1 2 45 1.29Outsourcing parts 1 1 1 5 1 1 3 44 1.26More safety technology 2 1 1 1 2 2 4 44 1.26Roadside help (AAA) 2 2 1 3 1 1 2 44 1.26More environmentally friendly 2 1 1 1 2 5 2 39 1.11

A. Identify the top 9 proposed solutions

Somewhat surprising was the focus on charging stations as a priority. It doesn’t stand out as an important solution but it does cover two of the three main problems consumers have with Tesla and automobiles in general. By providing consumers with more availability and increasing “fuel efficiency”, Tesla would be able to expand their user base and potential markets.

More Charging Stations o Problem: Availability, Battery Range

Replaceable Battery Stationso Problem: Battery Life, Availability, Battery Range

Partnerships with companies to do store charging stationso Problem: Availability, Battery Range

Community energy charging stationso Problem: Availability, Battery Range, Cost

Create a lower quality vehicleo Problem: Cost, Availability, User Base

Ridesharingo Problem: User Base, Cost, Availability

Wireless chargingo Problem: Availability, Battery Range, Battery Charge Time

Make a bigger batteryo Problem: Battery Life, Battery Range

Extra battery (like a spare tire)o Problem: Battery Range

3. Product concept statements

Key: Form, Technology, Benefit

More Charging Stations

By implementing more Supercharger stations throughout North America using Tesla’s signature charging services the consumer will spend less time waiting and more time adventuring across the country.

Replaceable Battery Stations

No need to wait and charge your batteries with Tesla Stations providing charged batteries upon arrival. With Tesla’s revolutionary changeable batteries, their will more time spent on the road and less on waiting for a recharge.

Partnerships with companies to do store charging stations

Collaborating with national stores, Tesla has created more access for electric vehicles to be recharged without the need of drivers going out of the way to fill up their batteries. This is provided with the Supercharger program at every partnering store.

Community energy charging stations

By installing unobtrusive Superchargers, towns and cities are now creating Tesla Hotspots in public areas for drivers to be environmentally friendly while enjoying the community.

Create a lower quality vehicle

Creating a cost-effective model with less but similar Tesla features will create a larger community base for Tesla drivers and provide an option for those who have always wanted a Tesla but it was out of their price range.

Ridesharing

Community Tesla’s will allow those who don’t own their own car a chance of getting around their community in a safe autonomous vehicle that help the environment.

Wireless charging

Without the need of wires, companies can now install charging spots for Tesla vehicles creating easy access for the drivers and reward for the businesses.

Make a bigger battery

Increasing the size of the battery allows drivers to achieve longer driving distances and can be installed in previous Tesla vehicles.

Extra battery (like a spare tire)

With the extra capacity included in Tesla models, a new emergency battery will be included creating a safety precaution for drivers just out of range o

Concept Evaluation

Concept Testing –

1. Revised Concept Statements. Specifically, each concept statement should:a. make the new item’s difference absolutely clearb. claim determinant attributes (those that make a difference in the buying

decision)c. offer a chord of familiarity by relating in some way to things familiar to the

customer, andd. be completely credible and realistic.

Key: Form, Technology, Benefit

Supercharger Stations 2.0

Take your Tesla to new limits with the implementation of Supercharger Stations 2.0. By increasing the recharging capabilities by 100% , there will be less time waiting and more time driving. The reusable energy source will have more plug-in’s per station and increase the growing number of stations around the U.S. Making the Tesla brand more accessible to all those wanting to join the experience. Become one of the environmental leaders in clean driving. You won’t need to check gas prices anymore or stop at a gas station in your new Tesla.

Replaceable Battery Stations

No need to wait and charge your batteries with Tesla Stations providing charged batteries upon arrival. With Tesla’s revolutionary changeable batteries, their will more time spent on the road and less on waiting for a recharge. Just like going to a car wash, the self-sufficient Tesla Station will do all the work for you and after the 7-minute process you will be on your way with a new battery. Saving Tesla drivers the time it takes to recharge a battery, and letting you continue on your journey.

Partnerships with companies to do store charging stations

Collaborating with national stores, Tesla has created more access for electric vehicles to be recharged without the need of drivers going out of the way to fill up their batteries. This is provided with the Supercharger program at every partnering store. While you enjoy shopping, or going out to eat, the Supercharger will be within close distance to all desired locations providing reliability in knowing your Tesla will be charged once your tasks are completed. It will be just like the charging station in every home, and now it is coming to some of the more popular restaurants, malls, and stores.

Community energy charging stations

By installing unobtrusive Superchargers, towns and cities are now creating Tesla Hotspots in public areas for drivers to be environmentally friendly while enjoying the community. By making the design blend in with the surroundings, the Hotspots will not ruin the look of the areas while incentivizing the use of clean energy throughout the community. With similar

charging capabilities as the normal SuperChargers, with 2 plug-in ports, the system will make city life easier for all electric vehicle drivers.

Create a lower quality vehicle

Creating a Premium SUV model with less but similar Tesla features to the Model X will create a larger community base for Tesla drivers and provide an option for those who have always wanted a Tesla but it was out of their price range. Providing over-the-air updates from Tesla, Supercharger capabilities, and homelink GPS, the base Tesla features will be included. Creating an opportunity for more drivers to get behind a Tesla and unleash the capabilities of electric vehicles.

Tesla Ridesharing

Community Tesla’s will allow those who don’t own their own car a chance of getting around their community in a safe autonomous vehicle that help the environment. Similar to that of Uber and Lyft, except the owner of the car is the community. Driven by those hired by the town or neighborhood, the car(s) will be available for all throughout the day. In the future, the cars will be autonomous and accessible to the area through a simple app.

Wireless charging

Without the need of wires, companies can now install Tesla Wireless Charging Spots for Tesla vehicles creating easy access for the drivers and reward for the businesses. The spots will be like a normal parking space, but using Tesla’s innovative technology will allow all Tesla vehicles to charge automatically. The installation is not exclusive to standard cars, they just provide incentive for Telsa drivers to stop at the retail location and charge. It will charge at the same rate as Superchargers and will blend in with the environment, just look for the Tesla logo.

Make a bigger battery

Increasing the size of the battery allows drivers to achieve longer driving distances for Tesla vehicles. The battery size will be 25% larger than what is currently provided, it will be available on all new models of Tesla. The option created by Tesla will offer those who want to travel more in their Tesla the opportunity to do so, with an increased range of 400 miles, the distances allowed will continue to grow, allowing for similar experiences that a standard car provides.

Extra battery (like a spare tire)

With the extra capacity included in Tesla models, a new emergency battery will be included creating a safety precaution for drivers just out of range of a charging station. The extra battery will be similar to a spare tire, a just-in-case backup to make sure your reach the destination. It will be available to all Tesla models and a driver can install two per vehicle. The new battery will have the power to drive an additional 30 miles, enough to reach the next charging station. It also recharges just like the normal battery so no extra steps are needed.

2. Initial Reaction Test. Screen each of these 9 items according to the criteria given for an initial reaction test (p. 216, 11e). Specifically, rate each statement on each of the following criteria (scale of 1 to 5):

Product Market Worth Firm Worth Competitive Insulation TotalSupercharging Station 2.0 5 5 4 14Tesla Station 3 2 5 10Store Partnership Batteries 5 3 3 11Tesla Hotspots 5 4 2 11Premium SUV model 5 5 3 13Community Tesla 3 3 3 9Tesla Charging Spots 4 3 5 12Bigger Battery 3 3 2 8Extra Battery 4 2 1 7

3. Full Screen

Factors:

Strategic Alignment – How well the product fits with the business strategy

Existence of Market Need – Is there a market large enough to warrant the creation of the product

Likelihood of Technical Feasibility – Do we have the technology to build it

Product Advantage – Will this product give us a leg up on the competition

Environmental Health and Safety – Will this meet standards and be something the public approves of

Return Vs. Risk – Is the expected revenue enough to take a risk

Show Stoppers – Does it catch the eye of the public, news, competitors

Proprietary Positon – is it patentable and the ease of research

Ease of Use – Is it easy for the consumer to use

Channels to Market – is there a feasible way to get the product to the users

Development Needed – Is their extra research that needs to be done

Time Needed – How long will the product take to create

Investors Happy with Product – will the shareholders approve of the new product

Manufacturing Ready – Will the product be ready to be built or will a new process be needed

Strength Over Time – Will the product be relevant for years or decades

Weight Supercharging Station 2.0 Premuin SUV Model Tesla Wireless Charging SpotsStrategic Alignment 5 4 5 3Existence of Market Need 5 5 4 2Likelihood of Technical Feasibility 4 3 5 2Product Advantage 5 5 3 5Environmental Health and Saftey 3 4 4 3Return Versus Risk 4 3 4 1Show Stoppers 1 1 2 5Proprietary Position 4 5 2 5Ease of Use 2 4 5 4Channels to Market 3 3 5 1Probable Profit 4 1 3 1Development Needed 2 1 4 1Time Needed 2 3 4 1Investors Happy With Product 4 4 4 2Manufacturing Ready 2 3 5 1Strength Over Time 5 5 4 5

203 217 150

Sales Forecasting

1. Sales Forecasting o In Excel Spreadsheet provided

2. Full screen results.

Weight Supercharging Station 2.0 Premuin SUV Model Tesla Wireless Charging SpotsStrategic Alignment 5 4 5 3Existence of Market Need 5 5 4 2Likelihood of Technical Feasibility 4 3 5 2Product Advantage 5 5 3 5Environmental Health and Saftey 3 4 4 3Return Versus Risk 4 3 4 1Show Stoppers 1 1 2 5Proprietary Position 4 5 2 5Ease of Use 2 4 5 4Channels to Market 3 3 5 1Probable Profit 4 1 3 1Development Needed 2 1 4 1Time Needed 2 3 4 1Investors Happy With Product 4 4 4 2Manufacturing Ready 2 3 5 1Strength Over Time 5 5 4 5

203 217 150

Factors:

Strategic Alignment – How well the product fits with the business strategy

Existence of Market Need – Is there a market large enough to warrant the creation of the product

Likelihood of Technical Feasibility – Do we have the technology to build it

Product Advantage – Will this product give us a leg up on the competition

Environmental Health and Safety – Will this meet standards and be something the public approves of

Return Vs. Risk – Is the expected revenue enough to take a risk

Show Stoppers – Does it catch the eye of the public, news, competitors

Proprietary Positon – is it patentable and the ease of research

Ease of Use – Is it easy for the consumer to use

Channels to Market – is there a feasible way to get the product to the users

Development Needed – Is their extra research that needs to be done

Time Needed – How long will the product take to create

Investors Happy with Product – will the shareholders approve of the new product

Manufacturing Ready – Will the product be ready to be built or will a new process be needed

Strength Over Time – Will the product be relevant for years or decades

Weight Supercharging Station 2.0 Premuin SUV Model Tesla Wireless Charging SpotsStrategic Alignment 5 4 5 3Existence of Market Need 5 5 4 2Likelihood of Technical Feasibility 4 3 5 2Product Advantage 5 5 3 5Environmental Health and Saftey 3 4 4 3Return Versus Risk 4 3 4 1Show Stoppers 1 1 2 5Proprietary Position 4 5 2 5Ease of Use 2 4 5 4Channels to Market 3 3 5 1Probable Profit 4 1 3 1Development Needed 2 1 4 1Time Needed 2 3 4 1Investors Happy With Product 4 4 4 2Manufacturing Ready 2 3 5 1Strength Over Time 5 5 4 5

203 217 150

3. Final new product decision.

The product that is the most logical to launch is the new premium Tesla SUV model. Not only did it lead the three in the full-screen results, fulfilling the most factors requirements, but also creates a total sales revenue by millions. Creating a new model would be the most feasible technology wise, with most of the manufacturing already in place and very little need for research and development.

Also, it has the strongest channels to market to, with people familiar with the Tesla brand and the distribution segments already in place. Installing an updated Supercharger station just wouldn’t provide enough revenue to incur the cost, and the wireless technology is relatively new and not fully market ready in the case of parking spots.

Similar to the previous factors, there are no significant development needs when creating a new model. Especially when you compare it to developing a new charging method or improving technology that is not feasibly possible. Making a new model will require some innovation, but not as much as the other options, providing a strong incentive to build for the short-term and not the long-term. Plus, these vehicles will open up a growing market and will be on the road for multiple years.

The new SUV will have the likeliest opportunity to be successful in a financial situation. Using the ATAR findings, the new model would create $1.8 billion in revenue, and that only includes the drivers of electric vehicles, whereas the SuperCharger 2.0 will generate approximately $700,000, and the wireless parking spots at a measly $80,000. But it should be noted that the charging stations are viewed more as a perk rather than a revenue source currently.

Finally, the manufacturing is close to ready for a new Tesla model, since Tesla is gearing up for Model 3 production this year and wants to produce 100,000 in 2018. By the time the new SUV model is ready for release, the 50,000 units estimated by ATAR will take

very little time. So, the ATAR number may be very off in the long run with such a dynamic and ever changing market. Product Protocol. Using figure 12.4 (and the accompanying text) as a guide, provide a full product protocol for your product. You must include a section in your protocol for items 1-10 (11 and 12 not needed). You must provide support (explanation) for what you develop here. Use secondary resources where appropriate.

1. Target Market

Using Mosaicxliii, the heavy users of Tesla tend to be wealthy families who are prospering. Most still have children at home and have enough expendable income to afford high-end cars. They tend to be more conservative in their views who have varying beliefs on the environment, but the younger end tends to be green aware. They already own a hybrid car, which likely puts them on the path to being interested in an electric vehicle.

Most currently live in a suburb or are soon to be making a move out of the cities. They graduated college with a bachelor’s degree if not more, and now work at a white-collar job. Also, are up to date with technology and prefer to do everything possible on the Internet and not in person. These potential buyers who fit this mold are the most likely heavy users for Tesla.

Here are the main points of electric car usersxliv:

College Educated Asian and White people Aged 35- 64 Work in Management, Business, Financial, Professional, and related occupations Make a household income of $60,000 or more

2. Product Positioning

A sleek, cost-friendly premium vehicle that provides a long-lasting sustainable lifestyle.

3. Product Attributes (benefits if possible)

Benefits

Technology-advanced - provides all the essential luxuries that a premium car should provide plus additional perks that only an electric car could have

Fuel Consumption – The same as a small vehicle’s electric consumption Low environmental impact – less reliant on fossil fuels

Functionsxlv

0-60 in 7.5s with a top speed of 110 mphxlvi

Supercharger Enabled 5 person seating Length: 190” Width: 87.5” 85 cu ft of storage Weight: ~5000lbs 275 miles charged 5-100 kWh 300-350 V lithium-ion battery

Features

Heated Seats Rear-view Camera Bluetooth capable Sunroof GPS Blind spot monitoring Cruise control Automatic drive Automatic start LED lights 6 cup holders 4 year 50,000 mile warranty 8 year, unlimited mile battery warranty Automatic rear liftgate 12 V outlets Front and rear storage Wi-fi ready Driver seat sensor Twelve airbags Crash sensors

4. Competitive Comparison

Chevrolet Bolt EV

Push Button Start OnStar®1 with 4G LTE Wi-Fi Teen Driver SiriusXM® Satellite Radio1

Electronic Precision Shift (electronic transmission selector with Low mode for regenerative braking)

60 kWh Lithium-ion battery Front wheel drive Electric Drive Unit

10 standard air bags1

Cup holders, 2 front and 2 rear Electronic cruise control Front and Rear storage 238 miles per charge Seats 5

5. Augmentation Dimensions

Trying to provide the product offerings of the Tesla Model X for the price of the Chevrolet Bolt. It will come with the standard Tesla warranties and promises and focus more on being economical.

6. Timing

The car will be announced in early 2018 and will be available for pre-order then. The full release will be in early 2019 with the Gigafactory available for mass production. Timing will be vital in coming in as a fast adapter.

7. Marketing Requirements The markets will be similar to those of the previous models and will need small

modifications to the channels needed for distribution Will need to focus sales on test driving, in-store sales, and online purchases.

Primarily focusing on public relations and strong media presence. Expansion of stores and Supercharging stations, which will be coming in the years

before production Marketing Campaign will consist of the same strategy that has occurred throughout

the years at Tesla.

8. Financial Requirements Profit by car is around 20-25%xlvii, will need to sell 121,740 units to break even Will break even in 2 years, turning profit in the third year Will have government subsidies (unless changed in coming years) Hoping for a 30% market share

9. Production Requirements Quality must be maintained to Tesla standards Must be running a lean production system Constant production of units Will use the plants and manufacturing building currently be invested in for the

Model 3 Expecting at least 75,000 units sold yearly

10. Regulatory Requirementsxlviii

Electric car incentives: HOV, Parking, or Registration Privileges Emissions Benefits Tax credits, Rebates, or Grants Purchase Directives, Promotion Directives, or mandates

A list of all Government regulations around the world for electric vehicles:

http://www.wsdot.wa.gov/NR/rdonlyres/5559AE0E-8AB5-4E6B-8F8B-DEAA7ECE715D/0/SynthesisEVPoliciesFleetandInfrastructureFINALRev112911.pdf

New Product Marketing

1. Strategic platform decisions

The primary purpose of the new SUV Tesla model is to add to existing the existing product line. While it may cause some form of cannibalization with consumers moving away from the Model X or Model S for a cheaper version, the new model provides Tesla with a larger reach in their current market. By providing a larger electric vehicle at a more economical price, Tesla is moving into territory that only one other model presently fits in. Also, it is important to point out that the SUV category of vehicles is the fastest growing worldwide, and Tesla being able to position a new model at a relatively ergonomic price provides a long-term solution to a great opportunity.

The core strategic decisions are the main reason to bring the new Tesla SUV model product to life.

Type of Demand Sought - Selective Demand

While selective demand is supposed to draw market share away from competitors, Tesla has an opportunity to dominate a relatively new electric vehicle market entirely. The only competition in this cheaper SUV market is the Chevrolet Bolt, and currently, Telsa is the most valuable car company in the USA, providing a strong backing to take over the segment.

If you are solely looking at the larger SUV market, drawing market share away from competitors, Tesla is seeking to attract interest from the current powers in the market. Almost every car manufacturer has a model in this segment, but only a few will provide one of the electric variety.

Permanence - In to Stay

Tesla is a relatively young company and is essentially still a start-up in the world of the car industry. So, creating vehicles concepts that will be around for the long-term is essential in providing confidence to their consumers and stakeholders. The new SUV will continue to add to the lineup of successful car offerings currently provided. With only one

car discontinued (the Tesla Roadster), the company is now on a mission of creating an arsenal of profitable products.

Aggressiveness – Cautious Entry

Now Tesla may not be looking to leave any markets that they seem to enter. They still are approaching every decision cautiously. Sometimes it might not be what the company wants to do but must. With the Model 3 still waiting to be released, Tesla can gauge interest in the car, and there is plenty of it. A similar situation will likely occur with the new SUV, allowing Tesla to see how high the demand is for the automobile before one even hits the market.

Competitive Advantage – Differentiation

The main reasoning for Tesla to create a new product in this market is differentiation. Currently, Tesla is by far the most innovative car company around, and with their advanced technology comes a leg up on the electric vehicle market. This SUV will have a larger battery capacity than the competitors; it will come with Tesla’s support system, the fast-growing Tesla Supercharger station network, and the updateable system to their advanced technology.

Product Line replacement – Not Applicable

While Tesla already has an SUV model in the Model X, they will be in different markets. So it will not be replacing a current product, but be more of a compliment to the product line.

Competitive Relationship – Make No Reference to Competitors

When viewing Tesla’s closest competitors, the company has never really compared themselves outright. Continuing that tradition for this new model only makes sense since most of their electric vehicle competitors are not in this market yet and tend to have simpler products when it comes to attributes.

Focusing on the market, Tesla can compare themselves to the competitors with their environmentally friendly car. However, it just won’t matter, since Tesla spend relatively no money on actual advertising, so comparisons are never made internally.

Scope of Market Entry – Roll our deliberately, as performance warrants

Similar to aggressiveness, Tesla gives themselves a given amount of time to judge the demand of the market. By scoping out the potential segment, Tesla can see the production needs from the company to match the consumers buying intentions. Although, this is done solely based on the lack of production capabilities within the company, and after the Gigafactory is completed later this year, Tesla will be able to start releasing new products at a faster rate than a two-year waiting period.

Image – No Change Whatsoever

The Model 3 has already given Tesla a new image as a more economical option. So the release of a new model with a similar price will have little image altering capabilities

since the product line is similar enough to stay within Tesla’s mission but different sufficiently to open up a whole new market.

2. Segmentation and Targeting

There are approximately 214 million drivers in the USxlix. Since Tesla is growing their Supercharger station locations, most of the US will be able to buy one of their vehicles and be connected to their system, allowing their potential consumers to be anyone who can drive a car.

After reviewing the different primary options for segmentation, I have decided that the most useful characteristic is the attitude toward the product. While benefit, usage rate, and readiness stage are all promising proponents of segmentation, the awareness of the Tesla brand is an essential aspect of the company.

As I have reported in previous parts, the awareness of electric vehicles is still not as high as an electric car company would hope, and even the awareness of the Tesla brand has room to improve. Only 60% of US consumers are unaware of electric vehicles, an honestly ridiculous number, but one that should be of primary focus. Marketing to people who do not even know what the brand does will not increase sales of a company that currently is only 3% of the marketl.

Illustrate the effectiveness of this primary segmentation factor by establishing a minimum of three groups. Each group should demonstrate homogeneity within the group with respect to needs/desires, responses to marketing stimuli, and other important characteristics. The resulting groups should also demonstrate heterogeneity between the groups with respect to these same things.

Enthusiastic

Consumers who are heavily involved in the Tesla ecosystem, whether they are involved in forums, reading blogs about Tesla, or watching every new conference. These people are aware of the product offerings that Tesla provides and will come out. More than likely have posted on social media about Tesla, and potentially own or want to own a Tesla vehicle in the future.

Positive

These consumers are aware that there are electric vehicles are on the market. Know what Tesla provide in a generic sense and are interested in learning more. Potentially have been on the company website and viewed the company favorably. They are not interested in watching the press conferences or go out of their way to be involved in a discussion of Tesla online. These consumers could potentially buy a Tesla, but a car may not be a primary interest to them, or they view other companies more or equally as favorable.

Indifferent

The segment of the group knows of Tesla but does not care about the product at all. The concept of electric vehicles is off-putting, or they do not clearly understand exactly what Tesla does. When looking for cars, the customer will not even think about Tesla as an option and may not see the benefit of switching to a company as unique as Tesla.

Unware

The customers who fall into this segment have never heard of Tesla and probably don’t know about electric vehicles. The idea of electric vehicles does not matter to them and will not care about the new fuel source for the foreseeable future. They view the current car concept as satisfactory and have no incentive to search for alternatives.

Hostile and Negative

These segments do not matter to Tesla since changing people perceptions is a costly endeavor, and the group is small.

Specify target group(s).

The primary focus for Tesla should be those that fall into the positive attitude for the company. Also, using Mosaic’sli segmenting factors will be the most beneficial to understanding which markets are best for Tesla to focus on. These segments have been used throughout this entire report and continue to be useful in judging potential groupings. Within these segments, we will concentrate on the awareness and attitude toward Tesla primarily, and use these other factors in compliment.

Group A: Power Elites – The wealthiest households in the US, living in the most exclusive neighborhoods, and enjoying all that life should offer.

Tend to live in the largest metropolitan areas across the United States. Predominately white and Asian with high educational accomplishments. Tend to be on the older side (50-64) but have money to spend. The group manages to make an income of over $250,000 and enjoy doing events with their family. They will not be the major segment of Tesla since they are extremely wealthy and would prefer to show off buying the more expensive Tesla models.

Group B: Flourishing Families - Affluent, middle-aged families and couples earning prosperous incomes and living very comfortable, active lifestyles

Tend to live in the suburbs of the major metropolitan areas. Consist of affluent parents who still have children living at home and are 30-49 years old. They tend to have a high level of education and are commonly white or Asian. Most work white collar jobs and are usually married. They like to be active, and health is a major concern. Being close to malls and cities provides the families the ability to be active and follow their passions.

Group C: Booming with Confidence - Prosperous, established couples in their peak earning years living in suburban homes

Married couples who are closer to retiring (50-64). Most of their children have moved out and are now empty nesters. They tend to live in suburban households and are predominately white. Make more than six figures in a white-collar job that they obtained with their high education accomplishments. They like to spend time

out in their communities staying active with all things happening. They do like to show their wealth occasionally and are okay with relaxing during the weekends when nothing is going on.

Group F: Promising Families - Young couples with children in starter homes living child-centered lifestyles.

Millennials (25-35) who have now married and are starting to have families. Live in the suburbs in starting homes and consist of white people. These Americans tend to be connected with owning an SUV and prefer to live in the suburbs near prospering cities. Most of the people have obtained a higher education but typically not masters or doctorates. Health and fitness are essential and are involved in their kids’ lives. With starting a new family, they tend to be price conscious and need large cars. For Tesla, this is the primary group for the new Tesla SUV model.

Note: All the data is from the Mosaic USA site for segments which I provide a link to in the endnotes.

3. Positioning

Based on the template for a position statement (p. 420), provide a positioning statement. Include any and all of the attributes or surrogates that should be part of the core positioning of your product.

No car company is as innovative as Tesla, with the release of the new Tesla SUV model you can save money in your pocketbook while also supporting the environment. With Tesla’s new revolutionary battery adding 25% more capacity, you will spend less time waiting to fill up your car and more time living. Providing all standard Tesla technologies and features, you will get the same great feeling like all other models. Trust the highest valued brandlii to get you safely to and from your destination in luxury. The SUV model continues Tesla’s mission to change the world for the better.

4. Branding – Establish your brand:

Going along with Tesla’s naming scheme keeping the names simple a sleek. The only possible name that Tesla could use for their next model is Y. Seeing as though their current models are the S, 3, and X, Elon Musk’s funny side must already have the Model trademarked. It also helped when Googling Model Y you receive an infinite amount of Tesla SUV prototypes. The name fits with the others and since this is only a product line extension. Going outside the standard naming structure would be too confusing for the brand. It also sounds more like an update than a car name. Unlike other brands having to use weird word choices to make their models distinct, Tesla continues to make it simple, easy to remember, and allow new models or upgrade levels easy to communicate.

The single letter or number has now become synonymous with the Tesla brand, and that has created a simple formula for consumers to follow. However, it is important to know that while the names of the models are complementary, the real value is in the brand name. As long as the vehicle has the Tesla name attached, it does not matter what the model letter of number is. That is the short-term beauty of the naming structure since uniqueness of the models is not necessarily the selling point of the company. However, as time goes on, we will have to see how the product naming changes, but for now Tesla is riding strong.

i Wu, Amy. "Tesla's Got the Keys: A History of Its Success." Investopedia. N.p., 06 July 2016. Web. 01 Feb. 2017.

ii "Key events in the history of Tesla Motors." The Washington Times. The Washington Times, 21 June 2012. Web. 01 Feb. 2017.

iii Desjardins, Jeff. "Infographic: 41 Interesting Facts About Tesla Motors." Visual Capitalist. N.p., 29 Sept. 2016. Web. 01 Feb. 2017.

iv "About Tesla." About Tesla | Tesla. N.p., n.d. Web. 01 Feb. 2017.

v Baer, Drake. "The Making Of Tesla: Invention, Betrayal, And The Birth Of The Roadster." Business Insider. Business Insider, 11 Nov. 2014. Web. 01 Feb. 2017.

vi "Auto and Light Truck Sales Historical Chart." MacroTrends. N.p., n.d. Web. 01 Feb. 2017.vii Akshay Singh, Evan Hirsh, John Jullens, Reid Wilk. "2016 Auto Industry Trends." Strategy& - the global strategy consulting team at PwC. N.p., n.d. Web. 01 Feb. 2017.

viii Paul Gao, Hans-Werner Kaas, Detlev Mohr, and Dominik Wee. "Disruptive trends that will transform the auto industry." McKinsey & Company. N.p., n.d. Web. 01 Feb. 2017.

ix Futurism. "Tesla Just Updated Its Mission Statement." ScienceAlert. N.p., n.d. Web. 01 Feb. 2017.

x Https://www.facebook.com/CNBC. "Tesla shares soar after posting second quarterly profit ever." CNBC. CNBC, 27 Oct. 2016. Web. 01 Feb. 2017.

xi "Tesla Motors Inc." TSLA Annual Income Statement - Tesla Motors Inc. Annual Financials. N.p., n.d. Web. 01 Feb. 2017.

xii Http://seekingalpha.com/author/michael-fu/articles. "Tesla Needs To Capture 14% U.S. Market Share To Justify Valuation." Seeking Alpha. N.p., 03 Apr. 2014. Web. 01 Feb. 2017.

xiii Ophirgottlieb. "Tesla is Suffocating Rivals and Gaining Market Share." Tesla is Suffocating Rivals and Gaining Market... N.p., 25 Feb. 2016. Web. 01 Feb. 2017.

xiv "December 2015 Dashboard." HybridCars.com. N.p., 14 Mar. 2016. Web. 01 Feb. 2017.

xv "Primary." TESLA MOTORS. N.p., n.d. Web. 01 Feb. 2017.

xvi "SWOT ANALYSIS." Our Tesla Marketing Plan. N.p., n.d. Web. 13 Feb. 2017.

xvii "Tesla Inc." TSLA Annual Income Statement - Tesla Inc. Annual Financials. N.p., n.d. Web. 13 Feb. 2017.

xviii Fool, Tamara Rutter The Motley. "Why Tesla has the most loyal customers." USA Today. Gannett Satellite Information Network, 06 Sept. 2014. Web. 13 Feb. 2017.

xix Fehrenbacher, Katie. "7 Reasons Why Tesla Insists on Selling its Own Cars." 7 reasons why Tesla sells its own cars | Fortune.com. Fortune, 19 Jan. 2016. Web. 13 Feb. 2017.

xx "Commodities: Latest Crude Oil Price & Chart." NASDAQ.com. N.p., n.d. Web. 13 Feb. 2017.

xxi Faizul092. "SWOT analysis of Tesla Motors." GotAbout. N.p., 26 Jan. 2017. Web. 13 Feb. 2017.

xxii Randall, Tom. "Tesla Flips the Switch on the Gigafactory." Bloomberg.com. Bloomberg, 04 Jan. 2017. Web. 13 Feb. 2017.

xxiii Alberti, Danielle. "World Population by Income." Pew Research Center's Global Attitudes Project. N.p., 08 July 2015. Web. 13 Feb. 2017.

xxiv Kissinger, Daniel. "Tesla Motors, Inc. SWOT Analysis & Recommendations." Panmore Institute. N.p., 27 July 2016. Web. 13 Feb. 2017.

xxv Publishing, Value Line. "Value Line - The Most Trusted Name in Investment Research." Value Line - The Most Trusted Name in Investment Research. N.p., n.d. Web. 13 Feb. 2017.

xxvi Chafkin, Max. "Elon Musk Powers Up: Inside Tesla's $5 Billion Gigafactory." Fast Company. N.p., 17 Nov. 2015. Web. 13 Feb. 2017.

xxvii "How Tesla Motors Outsmarted The Automobile Industry." Gas 2. N.p., 12 June 2013. Web. 13 Feb. 2017.

xxviii McCorvey, J.J. "Tesla Plans to Sell Its Electric Cars At Nordstrom." Fast Company. N.p., 14 June 2016. Web. 13 Feb. 2017.

xxix McCorvey, J.J. "Road Rules: How Tesla Plans to Change The Way We Buy Cars." Fast Company. N.p., 08 Aug. 2016. Web. 13 Feb. 2017.xxx "Financial Times." Subscribe to read. N.p., n.d. Web. 13 Feb. 2017.xxxi Email me at Zachariah.dvorak@drake.edu for a copy of the papers

xxxii "Tesla Plans to Sell 500,000 Cars in 2018 | Money." Time. Time, n.d. Web. 25 Feb. 2017.

xxxiii Rayadmin. "Compact SUVs Continue to Gain U.S. Market Share in March." J.D. Power Cars. N.p., 10 Apr. 2015. Web. 25 Feb. 2017.

xxxiv xxxv http://guides.business-strategies.co.uk/mosaicusa2011/html/visualisation.htm

xxxvi The survey link: http://drake.qualtrics.com/SE/?SID=SV_5tAHDWyfG8Yx7zT

xxxvii Fehrenbacher, Katie. "Why the Model X Has Been a Real Problem for Tesla." Tesla's Model X Has Been a Real Problem for the Company: Here's Why | Fortune.com. Fortune, 28 Oct. 2016. Web. 07 Mar. 2017.

xxxviii Fehrenbacher, Katie. "Why the Model X Has Been a Real Problem for Tesla." Tesla's Model X Has Been a Real Problem for the Company: Here's Why | Fortune.com. Fortune, 28 Oct. 2016. Web. 07 Mar. 2017.

xxxix Heisler, Yoni. "Tesla has a serious quality problem, and it needs fixing." BGR. N.p., 20 May 2016. Web. 07 Mar. 2017.

xl "11 Ways To Increase Electric Car Adoption." CleanTechnica. N.p., 09 May 2015. Web. 07 Mar. 2017.

xli Enderle, Rob. "What's next for the electric car? Wireless power, lithium-air batteries and more." Digital Trends. N.p., 12 July 2013. Web. 07 Mar. 2017.

xlii Functional Table

Solutions

Expands User Base

Increase Locations

Expands Products

Optimizes Production Process

Creates Competitve Advantage

Environment Friendly

Realistic Solution

Total Points

Average Rating

Criteria Importance 5 5 4 3 2 1 417

5 5More Charging Stations 3 5 2 1 4 3 5 82 2.34Replaceable battery stations 3 5 4 1 5 3 2 80 2.29Partnerships with companies to do store charging stations 3 5 2 1 5 3 4 80 2.29Community energy charging station 1 5 3 1 5 4 4 75 2.14Create a lower quality vehicle 3 1 5 1 4 1 4 68 1.94Ridesharing 4 2 1 1 4 5 4 66 1.89Wireless charging 3 3 3 1 5 3 2 66 1.89Make a bigger battery 4 1 1 1 5 3 5 65 1.86Extra battery like a spare tire 3 1 4 1 2 2 5 65 1.86Autonomous car 3 1 2 1 5 1 5 62 1.77Faster computer software included in the car 2 1 4 1 4 1 4 59 1.69Make a baby friendly car (car seat acceptable) 3 1 3 1 1 1 5 58 1.66More customizations 3 1 5 1 2 1 2 56 1.60Allow more test driving campaigns 3 2 1 1 3 1 4 55 1.57Solar powered roof 1 1 3 1 4 5 4 54 1.54More accessible power sources 2 3 1 1 3 3 3 53 1.51Offer incentives in purchasing a vehicle 4 1 1 1 2 1 4 53 1.51Less functions 1 1 4 1 1 1 5 52 1.49Solar powered backup battery 2 1 1 1 4 5 4 51 1.46Mass produce parts will drive down costs 1 1 1 5 4 2 3 51 1.46Improving the production line 1 1 1 5 2 1 4 50 1.43Focus on promotions 2 1 1 2 1 1 5 48 1.37Government funding 1 1 1 4 3 2 3 46 1.31Raise funds 2 2 2 2 1 1 2 45 1.29Outsourcing parts 1 1 1 5 1 1 3 44 1.26More safety technology 2 1 1 1 2 2 4 44 1.26Roadside help (AAA) 2 2 1 3 1 1 2 44 1.26More environmentally friendly 2 1 1 1 2 5 2 39 1.11

xliii "Mosaic USA Interactive Guide." Mosaic USA Interactive Guide. N.p., n.d. Web. 04 Apr. 2017.

xliv "GfK MRI SMARTSystem." GfK MRI SMARTSystem. N.p., n.d. Web. 04 Apr. 2017.

xlv "Model X Specifications." Tesla, Inc. N.p., 10 Feb. 2017. Web. 04 Apr. 2017.

xlvi "Tesla Model S vs Tesla Model 3: family rivalry." Charged. N.p., 01 Oct. 2016. Web. 04 Apr. 2017.

xlvii

xlviii "Hybrid & Electric Vehicle Implementing Agreement." Policies & Legislation, United States | IA-HEV. N.p., n.d. Web. 04 Apr. 2017.

xlix

l

li http://guides.business-strategies.co.uk/mosaicusa2011/html/visualisation.htm

lii The electric-car maker hit a market value of $50.84 billion on Monday. "Tesla just became the most valuable carmaker in America." CNNMoney. Cable News Network, n.d. Web. 18 Apr. 2017.

liii Picture from: http://www.nashvillechatterclass.com/tesla-expects-model-y-compact-crossover-outsell-competition/28352/