Académique Documents
Professionnel Documents
Culture Documents
Survey Techniques/Strategies 10
Marketing Mix Recommendations 11
Product 11
Price 14
Promotion 16
Distribution (Place) 18
Conclusion 19
Appendix 21
Bibliography 31
Executive Summary
Tesla is a high end sports electric car company run by billionaire Elon Musk. The
company started in 2003 with an initial goal of making electric cars attractive. In 2012 the
company introduced the model S, a sleek 4 door sedan; this launch solidified the fact that electric
cars can be revolutionary and appealing. Since then the company has been focused on finding a
repositioning these high end sports cars to the middle class. The benefits of retargeting to the
middle class are simple. One, Tesla would be tapping into an untapped market. As of right now
no car manufacturer has figgered out how to produce sleek electric cars for under 20,000, and
Tesla is the closest to being able to pull of such a stunt. As first entrant into the market space,
Telsa would benefit from increased sales and would also be leading the charge of adoption of
Americans. Increase their number of showrooms, showing the benefits of owning an electric car,
like tax reimbursement. In the following pages we cover the background of Tesla, frame the
current electric car markets and our reposting statement. This is followed by Product, Price,
Tesla, Inc. is an American auto manufacturer founded in 2003, then known as Tesla
Motors. Tesla is a pioneer of electric vehicles, energy storage, as well as exploring consumer
solar power production through its subsidiary SolarCity. For the purposes of this report, we will
Tesla vehicles seek to reimagine the all-electric vehicle by producing sleek, high-end,
luxury sports cars that challenge consumers current perception of all-electric vehicles,
Teslas first vehicle offered to consumers was the Tesla Roadster, introduced in 2008 and
discontinued in 2012. At this time, Tesla currently offers the Model S, a 4 door sedan introduced
in 2012, and the Model X, a crossover that began shipping in 2015. Tesla will begin production
of the Model 3, a more competitively priced hatchback sedan, later this year. Tesla vehicles
generally offer a fully-charged range between 200-350 miles highway, depending on model
being driven and other driving conditions, including outside temperature, or whether the cabin
heater is in use. Tesla vehicles also feature self-driving technology, dubbed Autopilot. All
Tesla vehicles, including the Model 3, ship with the hardware necessary to support Autopilot
functionality, and Autopilot is an available feature for purchase on all Tesla cars. Autopilot is
capable of driver assist, in which it will assume automatic control of the vehicle on the road.
Also available is full-fledged self-driving capability, in which a driver just has to tell the car
where to go and the car will do the rest. Autopilot, like other self-driving technologies, are still
To facilitate vehicle charging, Tesla buyers are given the option of chargers for their cars;
more powerful chargers with faster charging times come at a premium price. Whats more, Tesla
is in the process of building upon the network of superchargers at stations across North
America. At this time, according to the Tesla website, there are currently 842 supercharger
stations with 5,431 superchargers across the US and Canada, Western Europe, and China.
All Tesla vehicles are priced at the very high end of the market: according to Tesla.com,
the Model S starts at $68,000 up to $134,500, and the Model X starts at $85,000 up to $135,000.
The Model 3, however, will be priced at $35,000 dollars, much more reasonable for the common
car buyer, but still carrying that luxury price. As electric vehicles, a driver who purchases a Tesla
will be eligible for certain tax incentives (depending on the state of registry), including a state
income tax credit up to $7,500 for the purchase and discounted charging rates from power
providers like ComEd. Tesla offers all vehicles with full customization packages, each car being
made to order at the specifications requested by the buyer. Tesla ships newly-purchased vehicles
As it stands now, Tesla is the only major automobile manufacturer that produces only all-
electric vehicles.
Electric automobiles used to be considered a pipe dream, and a product that consumers
would only be able to purchase in the future. Now, thanks to Tesla and other automobile
manufacturers following suit, the future is now. In the late 1990s and early 2000s some of the
major global players in the automobile manufacturing industry such as Ford, Honda, GM, and
Chrysler began to work with the idea and production of electric vehicles. The first vehicles
produced had very small amounts of popularity and were quickly discontinued as the global
market continued to show it was not ready for all electric vehicles. Eight years later, under the
leadership of Elon Musk, Tesla announced and began shipping the Tesla Roadster. The Roadster
was an electric, sleek, luxury coupe which sold at $109,000. Tesla has since moved on from the
Roadster, and introduced the Tesla Model S in 2012 and the Model X in 2015. Since 2012 the all
electric car market has expanded to include the Chevy Volt, Ford Focus Electric, Nissan Leaf,
Volkswagen e-Golf, and the Kia Soul EV. The BMW i8 is currently the only vehicle which is in
direct competition with the Tesla brand as far as luxury electric cars are concerned. This proves
that the electric automobile industry is still in the early stages but certainly growing. The largest
problem facing the industry is the inability to produce and sell cheap electric vehicles in a way
that is cost-effective for the companies.
For these companies to be able to make all electric vehicles compete in the global market,
the companies will need to be able to sell the cars around $20,000. Once the electric vehicles
reach a low enough price benchmark, the middle class will be able to afford to buy the vehicles,
while the companies will be able to continue producing luxury style electric vehicles at the same
time. Currently, the plan for most major automobile manufacturers is to go the same route as
Tesla and BMW; produce an all electric, luxury car and continuously work down from that point
to produce a more affordable and economic model for the general public. Trends show that
manufacturers plan to be producing high-end electric vehicles within the next five years.
For now, electric cars, specifically Tesla remain as more of a social and status statement
company with extremely high quality products. Due to the rather large price tag on the Tesla
vehicles, the Tesla cars are primarily seen as a way to display wealth while also owning a car
that is high quality, beautifully designed, and as a way to show advancement of the electric
vehicle. While there is no guarantee that the consumers who already own a Tesla vehicle will
continue to be loyal to the brand in years to come, the company is certainly setting the pace, and
starting miles ahead of all other car manufacturers looking to break into the electric car market.
Repositioning Statement
After looking over Teslas current positioning, we are suggesting Tesla market to
reposition itself towards a wider, consumer-level market: the target market we intend to direct
our focus on consists of middle-class carbuyers who would typically purchase/drive consumer
level brands such as Chevy, Ford, Honda, etc. To achieve this, we plan on making few changes
on the current Tesla product line and existing industry-leading technology, which have set the
standard for the all-electric vehicle market; instead, we intend to make drastic changes to Teslas
marketing and promotional approach, which currently consists of marketing itself; adjust
pricing accordingly to fit the needs and desires of a range of wider income groups; and
reevaluate their present visibility on the road by implementing more dealerships and promotions
Tesla has a high-tech, sporty product line, but at this time, we believe that Tesla does not
well fit the current image that the typical carbuyer has of an all-electric car. Currently, Tesla is a
high-end luxury car for the upper class, and the common carbuyer has very little interaction with
Tesla vehicles: according to our survey data, 33.9% of respondents claim they only see Tesla
cars infrequently, and 16.9% of respondents claim they never see Tesla cars on the road at all.
However, we believe there is a great deal of interest in the general population in owning a Tesla
car: when asked if it was within your budget, would you consider buying a Tesla vehicle,
69.5% of our survey respondents said yes. This leads us to believe that if Tesla vehicles were
not so prohibitively expensive, there would be a great deal of demand for them. There is also a
great deal of room to grow when bringing Tesla into the mainstream market. The long term goal
there is a prevailing stigma attached to many electric vehicles: vehicles such as the Nissan Leaf
or the Toyota Prius are designed with unique and futuristic looks, and because of this, we believe
many electric/hybrid cars, such as the previously mentioned examples, are viewed as gentle and
inert purveyors of green energy. Pushing Tesla towards the current electric market will start to
eliminate the stigma that electric cars are small and underpowered compared to their
sporty vehicles. Tesla has one of the best products on the market with their options of electric
vehicles. The more attention brought to the Tesla vehicles, the more public opinion will grow in
favor of all electric vehicles. They are only targeting a select market; with a lower price it can
attract middle class consumers. Tesla, with its proven technology, attractive aesthetic, and
promotional mystique has the opportunity to redefine the all-electric vehicle in the minds of
Survey Techniques/Strategies
In order to develop a greater understanding of the position that Tesla currently holds in
the minds of consumers, we developed a survey that was distributed between April 18th and
Determine which factors are important to consumers when choosing to buy a car.
Gain insight into consumer beliefs and values regarding fuel efficiency/economy
Given available time and resources, we chose to utilize a convenient straw poll sample, in
which the survey was distributed via Facebook to willing participants and to friends and family.
Our overall purpose with the questions selected for the survey questionnaire were to fulfill our
above research objectives and assist in making assumptions to adjust the Tesla marketing mix to
We surveyed 59 respondents: 52.5% were male, 45.8% were female, and 1.7% reported
other. 76.3% of respondents were in the 18-24 age range, 8.5% were in the 25-31 range, 5.1%
were in the 32-37 range, 1.7% were in the 38-44 range, 5.1% were in the 45-51 range, 5.1% were
The following are our chosen recommendations for changes to Teslas current marketing
mix in order to achieve our repositioning goal, as supported by our survey data.
Product
According to our survey data, many characteristics of Tesla vehicles already draw favor
from consumers. According to our survey data, 67.8% of respondents are willing to buy a
hybrid/all-electric vehicle, and 69.5% of respondents would consider buying a Tesla vehicle.
This bodes well for Tesla in appealing to a wider market. Whats more, Tesla has an easy card to
play on fuel efficiency: when asked to give their opinion on the statement fuel efficiency is
strongly agree, the mean importance of fuel efficiency to respondents was 4.237. The all-
electric fuel efficiency of Tesla vehicles is the obvious primary inherent advantage that Tesla
vehicles have over the rest of the market. And Tesla cars are some of the most advanced electric-
vehicles that can be bought: the Tesla Model S 100D is the longest-ranged all-electric vehicle
currently in the all-electric/hybrid market, offering a range of 355 highway miles on a full
charge. With regard to range, other comparable vehicles in the all-electric and hybrid class
include the Chevy Bolt, with a highway range of 238 miles, the Ford Focus Electric, with a
highway range of 115 miles, and the Nissan Leaf, with a highway range of 107 miles. Tesla can
easily exploit the ready and willing market who would likely take advantage of a Tesla vehicle
and its obvious fuel economy, as well as the savings associated with it.
Tesla cars are also known for their sleek, sport aesthetics. This is another defining feature
that Tesla cars have. When survey respondents were asked to give their opinion to the statement
I prefer sleek, sporty cars respondents reported a mean interest of 3.389 (on the same scale as
the previous question). The majority of respondents, 32.2%, responded with agree and 16.9%
responded with strongly agree. This indicates that there is at least above-average interest in the
bold sporty aesthetic that Tesla vehicles possess. Other features, however, did not generate the
same enthusiasm.
changes to the marketing mix. Our survey data reported a generally lukewarm response to self-
driving technology: when asked to give their opinion on the statement I am interested in self-
strongly agree, the mean interest for all respondents was 2.729, indicating less than neutral
respondents, 39%, responded that they disagree with the statement. Only 18.6% responded
with agree, and just 8.5% responded with strongly agree. Since the self-driving feature does
little to garner interest when a car buyer is looking at new cars, we recommend promoting the
Autopilot feature less when marketing towards a wider market, in particular with the Model 3.
This would allow Tesla to appeal to a larger market while not sacrificing critical features that
create excitement. We also recommend offering a variant of the Model S, Model X, and Model 3
not equipped with Autopilot-supporting hardware, in order to offer them as a more consumer-
The ideal existing product to appeal to the sentiments expressed in our survey is the
Model 3, which will be offered starting at $35,000 later this year. Though the specs of this new
car are largely speculative at this point, it can be assumed that it will offer lower-end features
such as fabric/pleather upholstery and plastic interior. The Model 3 will be equipped to support
Autopilot functionality, but as previously mentioned, there is not much interest in the Autopilot.
We recommend offering a variant of the Model 3 which does not support the Autopilot feature,
in order to reduce costs and better appeal to carbuyers in our target market.
One final recommendation for price: Tesla offers all vehicles made to order at this time.
This significantly increases the overhead costs of developing even a single car. If vehicles were
mass produced with standardized variations, cost can be driven down and marketing more
affordably to consumers.
Price
Tesla has continuously been at the top of the game as far as the new wave of innovation
in the auto industry goes. Teslas push for constant improvement and state of the art technology
makes the vehicles in the Tesla fleet extremely sought after. The Model S and Model X
combined to total around 76,000 vehicles produced and delivered in 2016, while the companys
newest vehicle, the Model 3, is set to begin production and delivery in 2017. Each of the vehicles
produced come with options to add special features, and customize the vehicles to the customers
liking. Tesla is still a new company in the automobile industry, yet the company has begun to
offer sales of pre-owned vehicles from the Model S and Model X lines. All of the incredible
hardware built into each vehicle, the possible special features which could be added in, and the
made-to-order production style, add up to one significant downside to many consumers: price.
The two current vehicles in production, the Model S and the Model X, start at $69,000 and
$87,000. The Model 3, while not on the market yet, is the most affordable option that the
company has announced, and this vehicle will hit the market with a starting price of $35,000.
Only eight total respondents signified that they would purchase a vehicle in the price range of the
Teslas currently on the market. Also, over seventy-four percent of respondents said that they
believe Tesla vehicles to be either, expensive or too expensive. For Tesla to improve as a
company both of those statistics must change. To do this Tesla would need to lower the price of
the Model 3 or a future model to a price point of $15,000 - $35,000. According to our survey
data, 52.5%t of respondents said they would pay up to $15,000 for a car, 54.2% would spend
$25,000, and 54.2% would spend up to $35,000. As Tesla continues to bring prices down, the
opportunity is massive for overall expansion into the entire automobile industry. Seventy percent
of respondents agreed that if Tesla vehicles were within their budget, they would purchase a
Tesla vehicle. Finally, with the majority of respondents signifying that they may be interested in
made-to-order purchasing of vehicles, Tesla will be able to capitalize as soon as more affordable
options become available. Consumers who may want some of the more extravagant customizable
options in the luxury Tesla vehicles will be able to apply those upgrades to a more affordable
option to find the perfect middle ground between price and luxury for most middle class families.
Promotion
One thing Tesla is lacking heavily in is promotion. They believe being very low
involvement in the media. From our survey, over fifty four percent said they think Tesla is doing
a decent job promoting themselves. Right now, their strategy is being a mysterious luxury car.
This strategy can only go so far, until people forget about them. They know Tesla is a car
company but know nothing about their products. For our survey over half responded saying they
have not seen a Tesla advertisement. Currently, Tesla does not feel it necessary to rely on
marketing for sales. They think having an excellent product is good enough. How do people find
out about your great idea, if no one tells them about it? If the goal to mass market they need to
The main outlets we would like to target are sporting events/award shows, social media,
and product placement. Either one of these outlets are fantastic way spread awareness. This is the
quickest way to get to the people then air it during the most watched events nationally. The target
market ages from 25-60 years old are usually technology savvy always on their phones. With a
favorite movie or character such as Audi with Tony Stark in the Iron Man movies. This can lead
to toy deals and other ways to get recognition and get our name out.
For our slant we would do two type of commercial campaigns. First one would be a more
serious tone. It should star a celebrity spokesperson showing the advantages of a electric car.
With the style and features of the car you can market to people who are buying it for the look, or
the electric engine. Similar to Melissa McCarthys Kia commercial, but again a more serious
tone. The goal is trying to recreate the Dear Brother advertisement or like Audis daughter
commercial. Something that hits the heart and gives a message. Talking about the environment
and the damage cars are doing yearly is a way to get the message across. Saying there is an
affordable stylish way to help out. The perfect spokesperson for these advertisements would be
Leonardo DiCaprio. He is a huge advocate against global warming and overall environmental
Another advertisement we would put out is more would showcase the style of the car.
This would focus more on the features of the car and be more casual. This will go heavily on the
person with the customizing (if it was a model offering customization), showing each one fits
your personality. It will have upbeat music and lively colors entertaining the viewer. This will
The advertising objectives are brand awareness, and increase in sales. At the end of our
campaign, we want to see sales go through the roof. According to our survey, about seven
percent only see Tesla vehicles frequently. The goal is to see that number increase, and
eventually see a Tesla every day on the road like you see a Volkswagen. Right now with the low
will have dealerships and more areas you are able to test drive and gets a hands on feel. They are
also available to purchase there, so that will rely more on personal selling.
The general substance of our message is that Tesla is the most elite electric car on the
market today. We have to let the general market know about the finest product available.
Distribution (Place)
For most Americans, the car dealership is a familiar sight. This is how the majority of
Americans acquire their cars in the past and today. The dealership model has a few pros and
cons. The major pluses are the customer can test drive the car close to their home and buy it
same day. The buying process allows a sales rep to walk you through the process and help you
decide what car fits your personality best. The drawbacks of a dealership model is the increased
cost and many of the cars in the lot sit outside for months and some time years which wears on
the cars.
Tesla currently operates mostly off of a online ordering system. This system allows
customers to order their car exactly the way they want and have it shipped to their house. This
whole process is done on line allowing for consumers to make the purchase without ever having
to leave the house. This streamlined process helps save the consumer money by not having a
percentage mark up from a dealership. The biggest drawback of the online model is the
consumer does not have easy access to test driving. Right now for a consumer to test drive a
Tesla they have to travel several hours to find a test driving location, and many people have not
even see a tesla showroom: according to our survey, 76.3% of respondents have never seen a
Tesla showroom. The point of distribution boils down to would you buy a $35,000 car online
without test driving a model?. This question is a major barrier for many middle class americans
Our suggestion is that Tesla places more showrooms around the United States in visible
areas of town. This will help to increase visibility and will help consumers become familiar with
Conclusion
The overall goal of our campaign is expand the brand of Tesla to the masses and make be
seen on the road more often. Tesla vehicles are the now with all their futuristic features. Before
we created this plan, Tesla did barely any marketing at all. They relied on their mysterious
image to sell their brand. They are a different electric car that is both stylish and energy efficient.
To make increase sales one way to do this is lower prices. Around 37% said it was too
expensive, so this is our first step. Price is obviously the most immediate change we must make
We also want to have a more aggressive approach for marketing. We want to channel
social media and television outlets to spread awareness: it is important that common carbuyers
know that Tesla isnt just for the rich anymore, it is for everybody interested in driving an
electric car. Having the advertisements show the environmental benefits and also be personable
will add a human element to the company and their brands, and endear them to consumers the
way Toyota and Honda attempt to do. Another thing we are doing is something Tesla does not
currently have are show rooms: it is very hard to get a hands on feel for these cars and it can help
persuade someone into buying it. Going from a quiet laid back luxury car company, we have
that hill, Tesla must reenvision what it is. It cannot change the electric car market by selling cars
averaging $80,000. We believe that our plan will bring Tesla to the masses and catapult Tesla to
Appendix
Presentation
Bibliography
Plug In America. (2017). State & Federal Incentives. Retrieved April 27, 2017,
from https://pluginamerica.org/why-go-plug-in/state-federal-incentives/
Fortune. (Jan 22, 2017). Tesla Quietly Introduces Longest-Range Electric Car on the
http://fortune.com/2017/01/22/tesla-long-range-electric-car
Science of Revenue. (Jan 20, 2016). Tesla Model S: The Disruptive Marketing of an Electric
electric-car/
Any and all copyrighted or trademarked works included in this project are hereby claimed for
legal use for the uses of this project under Section 107 of the Copyright Act Limitations on
exclusive rights: Fair use and the Lanham Act Section 33(b)(4) as the purpose and character of
the use of any copyrighted works in this project is for nonprofit educational purposes.