Satisfying Target Customer 's Needs

Tesla’s greatest opportunity over industry competitors is its unique product. Unlike other EVs on the market, Tesla leaves others behind with the Model S covering nearly 300 miles per vehicle charge. None of the previously mentioned EVs can travel 100 miles per charge, ranging instead between 68 to 93 miles per charge (Schaal, 2015). This high-range combined with luxury features and lower

Tesla Motors is a global enterprise specializing in the design, production, and marketing of electric powered vehicles founded in 2003 by the young businessman, Elon Musk. Elon is well known for co-founding paypal, and now he amazes the world again with his incredible vision of Tesla Motors, and being the main product architect. Tesla Motors appeals to the environmentally friendly market, by currently being the only company to sell a zero-emission sports car. Tesla’s fundamental motive and selling point is producing only electric vehicles, as opposed to competing companies, producing a combination hybrid, or diesel car.

1. As a marketing consultant for a chain of hair salons, you have been asked to evaluate the kids’ market as a potential segment for the chain to target. Evaluate the kids’ segment against the four criteria for successful market segmentation.

They sell electric vehicles, and electric vehicles only. The most popular car Tesla has released is the Model S, which is a luxury electric sedan that sells for $70,000. The Model S was voted the Motor Trend Car of 2013, and according to Tesla is one of the safest cars ever, but there is one big difference from any other electric car. The battery in each Tesla car is actually made up of thousands of lithium-ion cells, which is different than most electric vehicles. Electricity charges a battery to give the Model S power for a certain period of time, and is similar to a laptop or smartphone. In fact, the company uses lithium-ion batteries just like the type that powers laptops worldwide. This is the key difference between a Tesla electric car and a hybrid, it is all electric and has to be charged, but a car such as a Prius runs partially on gasoline but does not have to be charged. There are a few ways to charge the car. Tesla suggest you get a high power wall charger installed, and there are also supercharging stations across the United States and Canada. When fully charged, the Model S can travel at 55 miles per hour for up to 300 miles. The technology that is put in these cars is so far ahead of the competition; Tesla could very easily be the car company of the future.

The aim and vison of Tesla Motors is to provide in the short run cars which are affordable to the average consumer, it started making first sport cars for the enthusiast for speed and environmental preservation, moving then to the second phase to the large market who choses affordable compacts and sedans which in turn will promote and stimulate the electric car trend.

Appealing to the mass market indicates something of a shift in Tesla’s strategy. Prior to the introduction of the Model 3, Tesla’s lineup consisted of the Model S and the Model X, both with a MSRP in excess of $70,000 (Arata, 2017). These vehicles were marketed toward wealthy consumers willing to be the first adopter of an all-electric vehicle, representing more of a focused differentiation strategy; with the Model 3, Tesla is still differentiating itself from

Our innovation topic is the Tesla Model S. The model S is an innovative car with many innovative features. The three features we are going to focus on are the HEPA air filter, autopilot and electric engine. Other cars manufacturers don’t possess these features in their cars making Tesla motors the first of its kind. Tesla 's Model S is expensive and ranges from $70,000 to over $100,000. It can reach up to 265 miles fully charged. Its competitor Nissan 's Leaf can reach a merger 75 miles. In the next couple of years, Tesla would like to manufacture affordable vehicles that costs $40,000 to $45,000 with the same technology as that of the Model S.

Tesla Model S (see Figure 1 above) is the “…world’s first premium electric sedan… [that] provides the comfort and utility of a family sedan while achieving the acceleration of a sports car…” and is designed by Tesla Motors (Teslamotors.com, 2015, para.3).

Tesla Motors was incorporated in July 2003 by Martin Eberhard and Marc Tarpenning, who financed the company until the Series A round of funding. Both men played active roles in the company 's early development prior to Elon Musk 's involvement. Tesla was founded in 2003 by engineers who had a mission to change the way the we thought of cars, and to convince our world that we can produce an electric car better than gasoline powered cars. In 1888 Nikola Tesla invented the first powertrain for a sports car built around an AC induction motor, which was later patented and inspired the company’s name. The Tesla Roadster was launched in 2008 with speeds of 0 to 60 in 3.7 seconds and with a range of 245 miles per hour. (Tesla Motors) Later in 2012 they launched Model S the first premium electric sedan. Robotic manufacturing of the Model S at the Tesla Factory in Fremont, California. Tesla manufactures the Model S in Fremont, California, in an assembly plant formerly operated by NUMMI, a defunct joint venture of Toyota and General Motors, now called Tesla Factory.

As of 2013, Tesla owned 43% of the market share of electric vehicles in Canada (EVWORLD, 2013) and the market is expected to continue to grow, as sustainable energy becomes more of a way of life than a movement.  According to the Government of Canada, “the market for electric vehicles in Canada is growing as Canadians look for cleaner, more efficient vehicles. Research confirms that consumers in North America are willing to pay more for an electric vehicle if the environmental benefits are significant” (Government of Canada, 2010).  With this expedited increase in purchases of electric vehicles, the Tesla Model S is positioned well to obtain its goal of increasing its existing market share.

We design, develop, manufacture and sell high-performance fully electric vehicles and advanced electric vehicle powertrain components. We have established our own network of sales and service centers and Supercharger stations globally thus creating a unique business model in the automobile industry. We

Tesla Motors Incorporated, an American company that designs, produces, and sells electric vehicles and their electric components, has become one of the fastest growing car companies in recent history. The company’s main goal was to start creating electric vehicles that were accessible and affordable to the public. Founded in 2003 and taking off successfully by 2009, Tesla Motors started selling the first mass-produced vehicle to use lithium-ion battery cells and hold a range of greater than 200 miles on just one charge. Along with building their own electric vehicle models, Tesla also builds electric powertrain components for vehicles from other automakers including cars such as the Toyota RAV4 electric vehicle. Tesla has begun to maximize

We can see that Tesla expanded their product line to target multiple consumers in different price range. The company started with high-end luxury sports car targeting early adaptors. On the second stage, Tesla has introduced Model S sedans that help them pass from difficult line from early adaptors to early majority. Moving forward, Tesla is introducing new Electric Vehicles (EV) cross over and many more affordable EV to target a larger majority. This strategy is helping Tesla move from one stage to the next one. The company is planning to release Model X in summer of 2015 and there are possibilities to introduce more affordable EV in the range of $30,000 dollars to compete with BMW 3 series in the fall of 2015.

One of the main political factors facing Tesla in the US are the incentives offered by different states and cities to Tesla owners. They must co-ordinate with these policy makers and inform the consumer. In China, the key political factor is that “the Chinese government wants to put around 5 million electric or plug-in hybrid vehicles on its roads by 2020, but to date reports have confirmed that there are a mere 70,000 electric vehicles plying on China’s roads. In order to promote EV sales, the government has set a target that 30% of government vehicles purchased by 2016 should be EVs. To reach the target set for 2020, the Chinese government is ready to fund nearly $16 billion to build electric charging stations. To further promote EVs among Chinese car buyers, the government is looking to impose a new tax on gasoline engines and has renewed the private-buyer subsidies for electric-powered vehicles for another three years.” (GuruFocus. 2014.

Tesla Motors first gained widespread attention by producing the Tesla Roadster, the first fully electric sports car. The company 's second vehicle was the Model S, a fully electric luxury sedan. Tesla also markets electric