Albert AllaSmita Biswas
Victor Hang Fung Renny SaldanhaPatricia Trutescu
-Elon Musk | CEO and Chief Architect
Tesla Mission
“Our goal is to create awareness of the potential of Electric Vehicles and particularly around those created by Tesla Motors”
We want to bring powerful electric cars from the narrow luxury market to mainstream America
Tesla Objectives
Tesla Strategic Position
•High end manufacturer & dealer in Electric car market
•Competitive Position
•Direct-to-consumer sales
•Stores and service centers
• Innovative consumer financing options
•Technological innovations
Tesla Product Strategy
Model X
First Generation
Model S - Most Awarded Car of 2013Model S - Most Awarded Car of 2013
Second Generation
Top Management professional
Family oriented
Exotic Vacations
Love for Speed
Love Shopping
Affluent Sport
Fine Diner
Tech Savvy
Environment conscious
Model X PositioningFor the middle aged mass affluent family oriented individuals with a
keen eye for aesthetics and a love for speed. They enjoy long drives and commute frequently on medium-long commutes alone or with family. They are tech-savvy, enjoy elite sports and are sensitive towards the environment.
Stellar performance- like the Sun, fiercely powerful yet highly beneficial and also loves the Earth. Tesla X is a vehicle that brings together Utility and Performance.’
Tesla MotorsJune 2013
Navigant Research, Sample Size 1081, US 2013
Alternative fuel vehicle preferred
67% Hybrids
61% EV
Clearly Strong demand exists for
EV
EV- Electric VehicleNGV – Natural Gas Vehicle
Consumer Opinion
Navigant Research, Sample Size 1081, US 2013
Reasons to buy EV
Positive factors outweigh the reasons to buy EV
60 %
48%
EV- Electric Vehicle
Navigant Research, Sample Size 1081, US 2013
Growth Potential
Familiarity
Navigant Research, Sample Size 1081, US 2013
Familiarity of EV Models
Tesla3rd at 21% familiarity among
consumers
Value for Money
Navigant Research, Sample Size 1081, US 2013
EV as Value for Money
Tesla Ranks 3rd
http://www.dailyfinance.com/2013/08/27/7-things-to-know-about-battery-electric-vehicles/
$ 44.2 B
$18.6 B
Navigant Research, Sample Size 1081, US 2013
Future of Electric cars
300% Growth in
sales
Top 3 locations
Marketing Mix – Product
• Product Line – Roadster, Model S, Model X
• Attributes • Easy Seating with step in access to the 2nd and 3rd row,
• Beautiful aesthetics •Premium interior surfaces & panoramic glass.
•Futuristic dashboard with Touch screen
• Service Centers - West Coast, NY and Texas
Marketing Mix – Distribution & Sales
• Online booking and reservations
• Store locations should be close to service centers and charging stations
Marketing Mix - Price• Comparable to the Model S
• 65kWh Model X = $56,250• 85kWh Model X = $65,160
• Tesla drivers 1/3 save on electricity/fuel compared to non-electric luxury competitor
• $avings• Battery replacement approx $6,500 lower
than major engine repair• In 8 years compared to Gasoline Car -
Tesla owner save $23,000+• Hybrid car owner saves $725/ year;
($5,800 in 8 years)
Mercedes S Class
Tesla Model S 85kWh
Sale Price $92,350 $87,400
Battery Replacement
N/A $12,000
Major engine repair (1/5 original sale price)
$18,470 N/A
8-year fuel costs (15,000 miles/year)
$16,846 $5,262
Total Cost $127,666 $104,662
Marketing Mix - Promotion• Take the tag of “Safety” outside the car – roadside assistance for charging,
breakdown and continue with your journey (replacement cars)
• Test Drive the car at rental agencies near airports for travelling professionals
• San Diego, NYC & Austin
• Air commercials around popular TV shows around 7:00pm – 9:00pm
• Product placement in music videos
• Social Media & Digital - A 10-15 minute finely produced informational video to debut on Tesla website at launch
• Facebook, Twitter and additional websites Huff Post, NY Times, WSJ promote debut
• Print ads – Run once right before launch and 3-4 times after launch
• Outdoor media
Promotion BudgetIncrease original budget for best exposure, from $3.9 to $5.94 million
Pull StrategiesSampling at Rental Agencies
Digital Marketing & Social MediaPush StrategyTelevision Advertising
• 15 second commercials
Print • Running 4-5 times, 1/3 – 1 page color ads
BillboardsProduct Placement in Music Videos
• People look up to celebrities
Sticking to segment & educate beyond segment to help people fall into category of Tesla buyers
Final Notes
Thank You