Tesla Market Analysis

Brenna Bobrove, Stela Kerri, John Edwards, Rashid

Majied, Eddie Romanik

Market Area- Luxury Cars

The luxury car market is a submarket of cars in general but is still vast
in itself
It includes
Luxury sedans
Sports cars
Crossovers
etc

Customer Segments
Environ
mentally
Aware

Well-off
Older
Adults

Upper
Class
Families

Does not
apply to a
specific
age group

Can
afford
more
expensive
vehicles

Want a
safe and
reliable
car

Tend to
be
wealthier
to afford
an
environm
entally
conscious

Want the
status
symbol of
having a
luxury car

Not
having to
compromi
se style
and
luxury

Market Share and Competition

Tesla accounts for 11% of new Top Shelf ($40,000 or more) car sales
when viewed by units sold
Competition from the electric car category:

Tesla
Model
S

Ford
Focus

Nissan
Leaf

Kia
Soul
EV

265
miles/c
harge

76
miles/c
harge

84
miles/c
harge

84
miles/c
harge

Luxury Car Competition

Other competition includes several brands who are known for their
luxury vehicles such as:
BMW
Mercedes
Audi

Cognitive Map

Historical Facts
Tesla Motors was founded in 2003 by a group of engineers in Silicon Valley
Teslas vehicles are produced at its factory in Fremont, California. The Tesla
Factory has returned thousands of jobs to the area and is capable of
producing 2,000 cars a week. according to their website
They wanted to prove that electric cars could be better than gasoline-powered
cars
Teslas engineers first designed a powertrain for a sports car built around an
AC induction motor, patented in 1888 by Nikola Tesla, the inventor who
inspired the companys name. according to their website
The Roadster was launched in 2008 and it went from 0-60 mph in 3.7 seconds
and it had a range of 245 miles per charge
In 2012, Tesla launched the Model S and it was the worlds premium electric
sedan. It does 265 miles per charge and it was named Motor Trends 2013 Car

Elon Musk
Elon Musk is the Current CEO of Tesla
South African Entrepreneur
Graduated from UPenn with a degree in Economics and Physics
Founded X.com, which aided to the creation of Paypal, and Space X
He is a true Visionary and Innovator

Tesla Motors History

2006- Prototype of Roaster introduced to the public
2008- Opened first retail store in LA, second in Menlo Park
2009- Tesla Model S unveiled
2012- Tesla Unveils Model X and Model S deliveries began
2016- Tesla unveils Model 3 for a price of $35,000

Tesla SWOT Analysis

Strengths

Fully Electric

Tesla is
currently in

Eco-

debt

All current

n vehicles

models are

Give off Zero

very

gas

expensive

emissions

vehicles
friendly/Gree

Weaknesses

Have to

Cheaper to

install

charge then

charging

use gas

station in

Sporty and

home

appealing
look/style

Companies
supply cant
meet demand

Means End Chain

Looks like a luxury

vehicle and has a
charging port instead of
a gas tank

Is an expensive car and

is also an electric
vehicle, does not run
on gas at all and
therefore does not use
fossil fuels

Symbol of high status.

Tesla owner feels
important and also feels
like they are making
environmental impact

Attributes

Consequence

Value

New Target Market

Our proposed new consumer market based off Teslas current marketing
trends are tech savvy and environmentally concerned consumers
between the ages of 30-60 who belong to the upper class or the
upper-middle class. This particular age group and class were chosen
because they can afford a luxury car and care about the environment.

Theory of Reasoned Action: Tesla

Tesla is
expensive
Its good for
the
environment

Expensive=Environment=
+

Its expensive
with a lot of
benefits

X is more
influential

My coworkers
have it
Its an
impressive
status symbol
Impress
neighbors and
coworkers

I will go to the
store to check
it out

Buy it

Tesla Current Consumer Profile:

Male Corporate Professionals,High level Executives & Entrepreneurs
They make up 77% of Teslas sales
Wealthy City Dwellers
Salaries of over 100k annually

Current Consumers cont.

Up to date on technology
They are tech savvy and eco-conscious
Aware of Teslas superior advances that outshine its competitors
Concerned about the Environment and carbon
footprint

Measurable and Accessible

From a measurable perspective they know who they are targeting
Tesla cant target people whose annual salary is less than the price of
the car
Accessible Perspective, must be in metropolis cities and affluent
suburbs with a big population
Cant put Tesla dealerships in low populated areas
California makes up 45% of registrations in America, it also helps that
there are convenient charging stations

Buyer personas: Target market

Wealthy middle age households with kids : Winning Circle
34-54 year olds in the new-money sub divisions that enjoy upscale living these residents
consider themselves in the winning circle and are proud of their accomplishments. They like
to go out to eat and are big spenders. Medium household income of 125,000. Own BMWs
typically
Wealthy middle age executives without kids:
They like to spend big on technology including digital and wireless devices. They enjoy
luxury cars and high fashion. They live just outside of major cities in communities with large
homes and enjoy european travel.
Very wealthy retired individuals and couples many possess a postgraduate degree. They have an
opulent standard of living - driving expensive cars and frequently eating out. They are often living in
beautiful warm areas such as Florida.

Positioning attributes
Status Symbol
High tech
5 star safety
Superior Engineering
100% electric with free solar powered charging stations
Sport and Luxury in one

Decision Making
Providing a unique product that fulfills and goes beyond traditional
standards of our target consumers. All the features are second to none
on the market
Reasons current customers purchased for
Auto-pilot
Speed
Technology
Updates of software that improves performance, GPS, and safety no
additional charge.

Point of difference
100% electric, free solar charging
Automatic driving and parking
Model year no longer a concept due to periodic software updates
Front and rear Trunk

Positioning Statement
To upper middle and upper class consumer age
30-60, Tesla is the electric car that partners
sport and luxury with new technology.

New Marketing Mix Strategy

Promotion
Advertise Tesla
Product
Luxury sports car
Price
Make a more affordable car
Place
More charging stations

Value Curve

Slogan

Where the future meets

luxury, doing the right
thing becomes easy.

Youtube Videos
https://www.youtube.com/watch?v=KKbRAazkiWc
https://www.youtube.com/watch?v=w6468pYMoIY