Sample Marketing Essays on Tesla Motors

Tesla Motors is the first company that has managed to commercially manufacture federally compliant electric cars with the performance characteristics and state of the art design similar to current high-end performance cars. It is an American automotive and energy company that was founded in 2003. It It mainly specializes in the manufacture of electric vehicles. Tesla Motors launched its first car named the Roadster in February 2008, and in 2012, the company launched its first Model S after 3 years of developing it. Soon afterward, the Model 3 was unveiled in 2016. According to Schreiber (2), the Roadster could accelerate from 0 to 60 miles (96 km) per hour in less than 4 seconds and could reach a top speed of 125 miles (200 km) per hour.

Currently, Tesla Motors has managed to create several car models such as the Roadster, Model X, Model Y, Model S, and Model 3. The objective of Tesla was to create zero-emission electric cars better than gasoline automobiles and to accelerate the advent of sustainable transport by providing compelling, mass-market electric cars as soon as possible (Bilbeisi 2). In 2011, Tesla Motors officially became a publicly-traded company, which enabled it to raise revenue for its projects. As of October 2008 to date, the Chief executive officer (CEO) of Tesla Motors is Elon Musk. In 2015, Tesla Motors started producing solar energy products.

A Description Of Tesla Motors Based On Features, Benefits, Price, And Costs Of Ownership

One of the benefits of Tesla motors is that it produces eco-friendly automobiles. Tesla cars use lithium-ion batteries that are charged by electricity. Moreover, they are equipped with a fast charge capability that allows owners to replenish the battery pack in as little as 75 minutes. In the United States, the Roadster retailed at $109,000 while the Tesla Model 3 retails at $36,200. On the other hand, the Model S and Model X retailed at $76,200 and $82,200 respectively. To reserve a Tesla Model S, customers are required to part with $1000 while reserving a Model X vehicle will require $5,000 upfront. To date, the Roadster has sold about 2450 units though it is no longer in production while the Model S has sold over 263,000 units worldwide.

Marketing Strategy Implications Of Tesla Motors.

Tesla Motors is uniquely positioned to capitalize upon this growth opportunity, and a ‘new technology-based approach to marketing management is central to Tesla’s current and future growth. Tesla uses direct sales, unlike other car manufacturers who sell through franchised dealerships. According to Van den Steen (4), instead of independent dealerships like other car manufacturers, Tesla built a network of company-owned stores with salespeople on salary rather than on commission. This approach put Tesla in conflict with the dealership lobby, which had pushed many states to pass laws requiring car companies to sell through independent dealerships recognized by the dealership association (Van den Steen 4).

Possible Product Line Extensions Of Tesla Motors

Tesla Motors is set to unveil its next vehicle; the Model X which is based on the Model S platform. It will have similar features to the Model S but with an increased capacity of 10%. The upcoming Model X is designed as a crossover to fill the niche between the roominess of a minivan and the style of an SUV, powered by an all-wheel-drive system (Hettich 9). Moreover, the car can reach speeds of 60 mph in as low as 2.7 seconds. The car can fit up to seven passengers and has an autopilot feature that assists drivers in maneuvering the car. The base price is expected to be in the same price range as the Model S, though perhaps a little more expensive.

Potential Marketing Strategies Based On Tesla Motors’ Life-Cycle Stage.

Tesla’s non-conventional supply chain management strategy to cut operation costs and successfully deliver a reliable and affordable product rests on a short term goal of product acceptance and a long term strategy for growth and profitability (Bilbeisi 2). Additionally, the alarming effects of global warming have led to worldwide reviews on how we should manage the environment before it is too late. Tesla Motors was the first of its kind, around the world, to commercially produce electric vehicles. The rising prices of car fuel have turned out to be advantageous to Tesla Company which advocates and promotes the use of sustainable energy. The foreseeable limited natural resources due to human activities such as pollution and deforestation will make electric cars a choice for many customers.

An Outline Of A Multichannel Marketing Distribution System

Firms have resorted to devising marketing strategies which will enable them to enter the market and increase their client base whilst increasing their profits to remain competitive and increase market shares. A multichannel distribution system helps companies to expand their presence in the market and reach out to particular target segments in the most efficient way. Tesla Motors has used its superchargers and referral programs as a marketing strategy. A new buyer of a Tesla car who has been referred by an existing owner of a Tesla is credited with $1000 and a lifetime of free supercharging worldwide.

A Marketing Channel Strategy For Tesla Motors That Assures The Correct Amount Of Intensity.

The strategy of Tesla is to enter at the high end of the market, where customers are prepared to pay a premium, and then drive down the market as fast as possible to higher unit volume and lower prices with each successive model (Bilbeisi 2). Batteries make up more than one-third of the overall vehicle price of around $12,000 to $15,000 (Hettich 9).

A Discussion Of How Channels In Tesla Motors Adds Value To The Customer.

Tesla Motors has taken groundbreaking decisions that deviate from traditional models in the automotive industry (Hettich 19). Tesla Motors was created to accelerate the advent of sustainable transport (Rimmer 3). Tesla Motors adds value to the customer by designing custom made environmentally-friendly electric vehicles. The customer can specify whichever features he/she would like incorporated in his/her Tesla automobile thereby allowing for customization. Unlike the Roadster, which carried its batteries at the front of the car, the Model S had it’s underneath the floor, which gave extra storage space in front and improved handling because of its low center of gravity (Schreiber 4). Furthermore, Tesla Motors has set up charging stations for their cars all over the world which enables its customers to recharge their cars easily. Also, the profits made from selling a particular Tesla model are reinvested on the infrastructure and developing other car models.

An Analysis Of The Current Pricing Strategy Of Tesla Motors And Recommendations For Modification.

Tesla Motors is a premium brand that shapes its pricing and positioning strategy in the market. Currently, Tesla Motors produces its vehicles after a customer places an order and they have orders far beyond what they are likely to be able to produce. I recommend that Tesla Motors produce vehicles on a large scale so that the company does not lag in terms of delivering orders.




Works Cited

Bilbeisi, Khamis M., and Moulare Kesse. “Tesla: A Successful Entrepreneurship Strategy.” B> Quest (2017).

Karamitsios, Achilleas. “Open innovation in EVs: A case study of Tesla Motors.” (2013).

Rimmer, Matthew. “Tesla Motors: Intellectual property, open innovation, and the carbon crisis.” (2014).

Hettich, Erwin, and Günter Müller-Stewens. “Tesla Motors. Business Model Configuration.” (2017): 759-774.

Schreiber, Barbara A., and Gregersen Erick. “Tesla Inc”. (2019)