TESLA ELECTRIC CAR IN U.S.
The report states about the analysis of the Tesla electric car - Model S in the US markets. In reference to the electric car, the report states the market scenarios of the product in the US. Moreover, it states the prime micro and macro environmental factors which impact the company and industry. The report also ponders to the analysis of Marketing Mix related to the electric car - Model S.
Comany and product Background
The Tesla, Ins. Company is located in Palo Alto, California, that caters to the energy and automotive industry. The company mainly deals with the manufacturing of electric cars through the subsidiary of SolarCity where Solar panels are manufactured. The prime person behind the structure of the company is Elon Musk who previously served as the chairman and presently serves as the CEO of the company. The aim of the company eventually was to offer electric vehicles at affordable prices to the mediocre customers.
The Tesla company caters to three models of electric cars mainly the Model 3, Model, X and Model S. The model S proved to be the best selling electric car consecutively for the years 2015 and 2016. The Model S was in high demand and approximately 50,931 units were sold in the year 2016. The Model S was sold in the US that counted for 136,542 units thus, proving to have the leading market globally (tesla.com, 2019). The electric car was the fantasy for lots of people across the globe especially in the US due to the eco-friendly nature and the class that the model afforded within a reasonable price.
● Political: The political scenarios were in favor of the company due to the motive of the company behind manufacturing the cars. This made the government welcome the Tesla Company warm-heartedly (Reinhardt, et al. 2017).
● Economic: The Model S proves to be cost-effective as the Tesla cars are built with the motive to offer electric cars at a reasonable price mainly for the average range of customers.
● Socio-Cultural: The model was accepted by the people of the country very well as the country proved to have the leading market by purchasing 136,542 units. The country people were overwhelmed by the features and class that the model catered to.
● Technological: The Model S leaves no stones unturned to prove its priority in the technological aspects. The model is proved to pass the crash test as well as caters to the quickest acceleration of 0-60mph in 3.2 seconds. The model also has dual motors that help to handle the car better and control traction. The model boasts of running for 180 mins in just 15 minute charge time. The model also equips with an autopilot mode that assists a driver when driving becomes burdensome (Ochoa, Abril & Forero, 2018).
● Environmental: The car is powered by electricity thus, keeps no question related to the pollution due to emissions. The car can be charged to full for an overnight charge following which it can give its best experience and performance that proves to be effective.
● Legal: It was found that only the US protects the dealers that wish to sell the products directly. It is recommended by the Federal Trade Commission to sell direct manufacture products that are analysed to save 8% of the consumers in mean vehicle price.
● Competitors: The competitors of the company are the Ford Motor Company, General Motors, Honda Motor Company, Spartan Motors and a lot more.
● Suppliers: The suppliers of Tesla cars are AGC Automotive, Brembo, Fisher Dynamics and a lot more.
● Customers: The customers of the Tesla cars are worldwide, where the customers of the US enlist to have purchased more amounts of cars (Dijk, Wells & Kemp, 2016).
● Public: The Model S proved to have great respect for the public of the US, due to its class and features.
● Company: The staffs of the company are great engineers that serve the best to manufacture the cars. They are well attended by the company and thus the framework of the company stands strong (Noori & Tatari, 2016).
The company was established in San Carlos, California with the first retail store in Los Angeles, in the art district of Manhattan’s Chelsea, followed by other two in the prime cities of US. The Tesla Company later moved its headquarters to Palo Alto and inaugurated a facility of powertrain development. The market of the US responded well to the development of electric cars. This gets evident from the sale numbers that counted for 136,542 units within September 2018. The company aimed at developing electric cars so that they are affordable by the average customers. The cars were master crafted that included specifications which were expensive in the models of other companies (Bresser et al. 2018).
The company is said to use mono-segment positioning that accords the company of showing concern for the environmental impacts from the emissions of cars using oil and gas as the fuel. The company is also said to follow the positioning that is anticipatory which includes the positioning of its products over the low turnover market segments (Vernon, 2017). The company anticipates of getting an increased turnover in the future.
5. Analysis of Marketing Mix
The Model S proves to cater to quality that contains the crash proof structure, quickest acceleration, dual motor for better controlling traction and handling, autopilot mode and a lot more. The powertrain technology of the company proves to be the Master craft that powers the Model S through any terrain (tesla.com, 2019).
The price of the Model S starts from $85,000 that can be bought either from the retail stores or the online company website. The purchases from the company website prove to save the economy of a customer by 8% that gives another advantage to the customers (tesla.com, 2019).
Tesla mainly sells its vehicles through the service network and its own sales. Moreover, the galleries of Tesla are highly visible and it is situated in the metropolitan market. Apart from this, the organisations sell the vehicles through the company owned showroom along with the online medium. In addition to this, the organisation does not operate any dealership network for selling their product (Kushwaha & Sharma, 2016).
The promotion of Model S was mainly done with the help of word of mouth and referral program, to attract the buyers. Moreover, they also use the advertising strategy as it can help to attract a wide range of customers at a glance. Apart from this the organisation also uses the PR (public relations) team for creating brand awareness in the globally competitive world. Hence, the PR activities include the hotels, restaurants which have written the brand name Tesla in all over them. In any organisation, the use of the positive brand image is highly beneficial for attracting a wide range of customers and be in the top in a competitive environment in the US automobile market (Grimpe et al., 2017).
The atmosphere inside the car gives the feel of a luxury vehicle that helps the driver to feel no less than a luxurious car. The model S is equipped with a flat door exclusive of humps that makes an open airy interior. The lighting and the decor of the car prove its class as it caters to more 400 LEDs that includes multiple conveniences and looks fabulous from the exterior and exterior sides. The car also caters to cool exclusives that include Google Maps, Wireless connectivity, glass roofs that are panoramic, application for remote control and a lot more (tesla.com, 2019).
The model S can be purchased from the outdoor retail stores as well as by ordering from the company websites. The car is exclusively available on the company website at a cost that is discounted by 8% on the original. It is just that the customer has to wait for the delivery of the car after which the customer can feel the excellence of the car. The car can also be test driven by the customers before purchasing the product from the retail stores (tesla.com, 2019).
In the organisation, all the people within the company are highly advanced in terms of their skills. Moreover, all the team members within the organisation engage themselves to provide a good service or product for the organisation during any kind of critical situation. Apart from this, all the customer's perspectives are maintained by the experienced employee of Tesla (tesla.com, 2019).
From the above study, it can be found that Tesla has a strong position within the US automobile market. Moreover, the organisation uses different strategy as well for achieving success. In addition to this, the Model S of Tesla impacts the industry in a positive way by its good features. It can be found the use of highly beneficial for the organisation to be a string competition for the other organisation within the US.
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