Marketing plan for Tesla: executive summary and situational analysis

Tesla Marketing Plan

For over a decade, Tesla Motors has emerged as one of market leaders in designing, manufacturing, and selling luxurious electric cars, battery components, and powertrain components. With its establishment in 2003, the company has established an innovative niche in the electric car business. Tesla has developed a market strategy that embodies the company's core values in the luxury electronic vehicle business. With this strategy, the company establishes a competitive niche that surpasses other players in the market.

With this strategy, Tesla can benefit from gaining a significant market share, brand loyalty and awareness, and realization of profits through the adoption of new strategies. In this paper, we look into the market success plan for Tesla Motors (Damodaran 40).

In this case, we develop a fully electric, brand new, and entry-level car named Tesla Z. The car will possess core components of a Tesla vehicle. However, the creation of the car will target 40-60 aged individuals. Development of the car will take into consideration the aspect of the budget to enable customers to buy the car at an affordable price. A variety of luring programs such as Test Drive America and Amplify Your Ride come in handy in improving customer loyalty and satisfaction. Launching an integrated marketing campaign, capitalizing on advertisements spreads the word of Tesla's innovative product.

Shipping of the first car will occur early 2016 for those that booked the car in 2015. The company will host Test Drive America and Amplify Your Ride campaigns in America in the second half of 2016. Spreading such campaigns gives customers the opportunity to enjoy the innovativeness of Tesla Z. The growth of electric and hybrid vehicle business will depict the demand for the car in the next half a decade. The company can channel resources to cater for an increase in demand for the car. Previously, the expansion of the Supercharger station has given Tesla an appeal in the mass market.

Over five years, it is expected that the strategy will generate revenues totaling $7,900,527, 490. From the sales, a profit of margin of $1,593, 472,782 will occur as a result.

Situational Analysis

For over a decade, Tesla's market presence has enabled it to gain a competitive market niche over other players. A comprehensive market strategy occurs as an essential success measure for the business. Based on the market dynamics, a market entry with Tesla Z suits the targeted 40-60-year bracket customers.

A) Market Summary

Tesla possesses good information on market dynamics especially demands of target customers. Leveraging on the information results in a better understanding of the specific needs of customers and the best techniques for communicating to customers based on their needs.

I. Market Demographics

Tesla Z targets customer group, 40-60 aged customers consist of the following demographic, geographic, and behavioral factors that include the following:

Geographic's

The location of the company in Fremont, California, the Silicon Valley hub occurs as a plus for the company in the generation of new ideas and products.

The proximity to other startups facilitates the availability of necessary products and services.

Location of the company in the U.S. gives it a wider market appeal for the electric car enthusiasts, most who come from the U.S.

Demographics

Thirty-six percent of buyers of previous models such as Model S earn less than $100,000 a year.

ten percent of pre-owned buyers of previous models are aged between 18 and 34. The rest of the buyers are aged between 40 and 60 years.

Only 6% of the 18-34 age bracket purchase new cars.

Behavioral factors

The type and condition of the car personify the image of an individual.

II. Market Needs

Tesla offers the market with a premium car model targeting the 40-60 years age bracket for the U.S. market and the rest of the world. In doing so, it fulfills market needs that include:

Exemplary customer service. Target customers occur as high earners requiring excellent customer service.

Innovativeness. The target market values innovative quality products adapted to the dynamic automobile industry.

Green energy. Demand for clean energy cars has propelled the desire for perceptive energy cars.

III. Market Trends

Oil prices and the need to ensure environment conservation have enhanced the demand for clean energy cars. Progression in technology has fueled the trend in the production of electric vehicles. Despite the recent slump in oil prices, electric cars still occur as a priority for clean energy enthusiasts (Kale 1).

IV. Market Growth

The rapid growth in demand for electric cars over the recent years depicts the aspect of consideration for clean energy cars. The rapid growth in demand for electric cars over the recent years depicts the aspect of consideration for clean energy cars.