Tesla Motors Became a Public Traded Company,

Tesla Motors became a public traded company, (NASDAQ stock quote code: TSLA), earlier this year. You are the Channels Manager for Tesla Motors. How do you think Tesla has developed its distribution strategy, i.e. what were the most important things to have been considered? With the launch of the model S. sedan due in 2012, how would you further develop the distribution strategy over the next five years, and why?

Tesla Motors is an innovative U.S. car manufacturer that is making a high performance electric sports car called: the Roadster. They have announced production plans for a new models including: a four door sedan and the S. series (which are to be delivered in 2012). The company's goals are to: take mainstream EVs (electric volt technology in automobiles) and make them accessible to consumers. Its strategy has three prongs to include: selling its own vehicles through its showrooms / online; it has high-end power train components (in comparison with other automakers); it leverages its strengths and the ultra-modern design is setting the example for other manufacturers. At the same time, they are able to provide environmentally friendly cars to the general public. ("Tesla's Future," 2011)

The distribution strategy:

The distribution strategy of the company is to: use own showrooms and online sales to effectively reach out to customers. The basic idea, is that if more prospective buyers come to these showrooms (regardless: if they are looking at buying the car or not), this will create favorable images about the vehicle. At which point, they can begin to share these positive experiences with other consumers.

At the same time, Tesla is striving to bring: the feel of an Apple store and favorable experiences to car sales. As of yet, there is no way to know if: the success of this business model will work. This is because buying electronics and cars are two completely different things. As, they are attempting to reach out to new customers through: the latest and most popular forms of technology. ("Tesla Targets 50 auto showrooms with an Apple Twist," 2011)

With the launch of the model S. sedan due in 2012, how would you further develop the distribution strategy over the next five years, and why?

To further develop the strategy over the next five years, the company needs to use various forms of advertising mediums to include: print, online, and television. These basic elements are important, because they will help to improve the distribution strategy, by allowing customers to see the advantages using these vehicles in comparison with competitors. To do this, you could show how: the car is reliable, it can easily be serviced and it does not use gasoline engines. These different factors will help to create a positive image in the minds of consumers about: the vehicle and the potential benefits that it can provide them.

At the same time, you would want to take an approach of focusing on countries that are following the Kyoto protocols (i.e. The E.U. And China). The basic idea behind this philosophy is: to use the different forms of media, to create the same favorable images in the minds of consumers.