Tesla Report

1260 Words Nov 9th, 2014 6 Pages
* Case Report: National Geographic Video on TESLA * New member in a highly competitive industry
Tesla insertion to the automobile industry had to face a challenging atmosphere. An industry with a wide number of competitors, who have been in market for several years earning the consumers trust, and where all the different niches have been exploited, from the low cost models to the luxury ones.
In an industry this tight, out of the box ideas must take place, as Tesla’s vision to lead a revolution in the car industry, towards a future where every car is electric, with zero emission.
To work on the vision, a set of values like high quality and leading innovation where developed in every part of the company, as it shows in its
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First they focused on making the brand known and positioned as a high quality car, launching reduced number of the Tesla Roadster, the goal was to prove that an electric car can be desirable. The strategy didn’t focus on getting profit out the sales of the first model, it was a tactical move to get people to buy the more mainstream model.
With a reputation built, for the Tesla S model the high advertisement strategy continued. The need of a large investment in marketing strategy can be understood by the tight automobile industry explained at the beginning, where consumers have a large amount of companies that provide cars, that already have a reputation generated, and in order to make costumers desire a new brand in the market they must be showed why this new product fits to their needs.

* 5°Strategy: Skimming Pricing
Finally the last strategy used by Tesla is defining their prices in under a Skimming Pricing Strategy. This tactic is often used for the introduction of a new product to a market, were in a first phase the focus is trying to establishing a high initial price for a product, looking for the upper end of the demand curve. Later in the phases that follow, the price of the product can be dropped until finding a balance of the actual demand the product will have and its price. We can see this in the Tesla case when in a first moment they introduce the Tesla Roadster as a high value

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