Marketing 716-001 Portfolio: Tesla's New Product & Market Plan

This report provides a comprehensive analysis of Tesla's marketing strategies, focusing on new product development within the automobile market. It explores five new product ideas for Tesla, emphasizing a communication-based car model named 'Tesla Model PhD'. The report identifies the target market as tech-savvy, luxury buyers aged 20-40 and eco-conscious individuals. A positioning map is developed, highlighting Tesla's unique position in selling technology-driven luxury cars. The report also recommends pricing objectives, strategies, and tactics, including premium pricing and dynamic adjustments. Furthermore, it discusses the use of integrated marketing communication (IMC) tools and advertising strategies to promote the new product, along with a competitive pricing analysis. The analysis includes recommendations for market penetration and product mix pricing to ensure effective growth and differentiation in the competitive automobile industry. Desklib provides access to similar solved assignments.

Running head: MARKETING MANAGEMENT
MARKETING MANAGEMENT
Name of the Student
Name of the University
Author Note

1MARKETING MANAGEMENT
Table of Contents
Introduction and about the company..............................................................................2
New product based ideas for Tesla................................................................................2
Selection of target market for the new product of Tesla................................................4
Development of positioning map...................................................................................5
Recommendations based on objectives, strategy and the tactics of pricing..................6
Use of IMC tools for the product...................................................................................8
Type of advertising strategy to be used..........................................................................9
Conclusion....................................................................................................................10
References....................................................................................................................11

2MARKETING MANAGEMENT
Introduction and about the company
Tesla Motors is an American organization which operates in the energy and
automotive based industry of the country. The headquarter of Tesla Motors is located on the
Paulo Alto, California. The organization mainly specialises in the electric car manufacturing
activities and manufactures other products like, solar panels. Tesla has been operating many
productions based and assembly related plants which include, Giga-factory 1, Nevada. The
major manufacturing based facility of Tesla is thereby located in California (Tesla.com.,
2018). The different models which are currently sold by Tesla in the market mainly include,
Model X, Model S, Mode 3. Tesla was established in the year 2003 by two engineers Marc
Tarpenning and Martin Eberherd. The organization was joined later on by Ian Wright, J.B.
Straubel and Elon Musk who had acquired the position of co-founders within the
organization (Tesla.com., 2018).
The portfolio will be based on an idea which will be provided based on the launch of
a new product by Tesla in the automobile market. The target market which is the most
suitable for the product will be analysed and further positioning of the organization will also
be provided.
New product based ideas for Tesla
Tesla is known in the automobile industry for manufacture and production of electric
cars which are environment-friendly in nature. The organization has been producing different
types of electric car based models which have been able to provide an effective position to
Tesla in the industry. The transition which is being made by the automobile industry towards
usage of sustainable industry is considered to be a major part of operations of Tesla in the
market (Abidemi, Halim & Alshuaibi, 2017). The organization has been able to provide
solutions based on energy based requirements of automobile industry with the help of

3MARKETING MANAGEMENT
different products that are developed by Tesla. The effective products which are thereby
offered by the organization currently in the market are Model S, Model X, Model 3. These
models have reduced the need for different types of fuels which are used by other cars. The
energy source which is used by the cars in order to operate is based on electricity (Aghaei et
al., 2014). The organization can however be provided with new solutions in order to improve
the products which are already offered in the market. The five different ideas which can be
suggested to Tesla Motors are as follows,
Tesla Motors can think of implementing energy-storing panels within the body
of the electric cars. The batteries which are present in the cars can be quite
heavy and can be quite inconvenient as well. The storage of energy by the
body panels is considered to be a major way which can be implemented in
order to improve the products.
Tesla can further attach air-bags underneath cars which will be helpful in
stopping the vehicles before an accident occurs. This will play a key role in
increasing the levels of safety of the cars.
Tesla can also attach the technology of Augmented Reality or AR in the
dashboards. The dashboard will be able to provide real-time based information
to the drivers so that they are able to avoid accidents from the cars which are
arriving from the opposite side.
Self-driving cars based technology can be implemented by Tesla in order to
enhance the cars which are operated by the company. The self-driving cars
will be able to park and drive themselves without any human intervention.
Tesla can be recommended to develop cars with technologies which help them
to communicate with each other. The cars which are based on this technology

4MARKETING MANAGEMENT
can provide signals to each other based on any potential collision which can be
faced in the operations.
The best idea which can be implemented by Tesla in order to develop the products in
an effective manner is based on the cars which are able to communicate with each other. The
cars will be able to communicate based on the objects which are present around them that can
cause potential levels of danger (Aras et al., 2017). The different features and benefits which
can be provided to the target market of Tesla based on new product idea are as follows,
Features Benefits
1. Wireless signalling facility provided
in the cars.
2. Communication based equipment
provided in the cars.
3. Facility related to turning on a red
light in order to provide signals to
another car.
4. Advanced GPS systems installed in
the car in order to ensure that
information is shared effectively.
5. Vehicle-to-infrastructure based
communication.
The wireless signalling will be able
to help in providing information
based on the road to other vehicles
on the road.
Communication equipment will
provide connection between
different vehicles.
Red light will provide a danger
based signal to a car which is about
to enter the road.
Advancement of GPS system will be
based on information based on
traffic.
V2I communication is required for
understanding the best routes.
The name which can be provided to the new product that will be based on vehicle to
vehicle communication is “Tesla Model PhD”.
Selection of target market for the new product of Tesla
The target market which has been selected for the suggested new product of Tesla
Motors named “Tesla Model PhD” is mainly based on people who belong to the age group of
20 to 40. The major characteristics which are thereby established by the target market
include, tech-savvy, luxury buyers and eco-friendly. The organization will be able to aim for

5MARKETING MANAGEMENT
a high share in the automobile market with the help of the new product based idea which has
been provided (Cooke, 2015).
Needs Wants
The needs of customers in belonging
to the target market are based on
usage of sustainable energy.
The customers require real time
information based on the cars which
are travelling along the road.
The major want of the customers is
based on the usage of high levels of
technology in order to increase
safety of the operations.
The customers want to be informed
about the ways by which they can
avoid accidents on the road by
communicating with other cars.
Development of positioning map
The position which is developed by Tesla Motors in the automobile based industry is
quite unique in nature. Tesla has created its name in the market for selling new technologies
and not only new cars. The cars which are thereby developed by the organization are known
for the luxury based levels and technologies which are used for development. The
organization has been able to dominate the industry with the help of electric cars which are
less expensive and highly luxurious in nature as well (Datta, Ailawadi & van Heerde, 2017).
Tesla is thereby responsible for the development of proper infrastructure for manufacture and
also developed products which are able to fulfil the needs of customers. The tough
competition which is faced by Tesla in the automobile industry has affected the target which
can be achieved by the company. However, the position which has been created by Tesla has
been helpful in protecting the position which is developed in the industry (Fan, Lau & Zhao,
2015).

6MARKETING MANAGEMENT
The positioning statement which can be developed for the new product of Tesla is
“The car will be able to fulfil the needs related to technology of customers and the safety on
the road will be increased by implementing new technologies.”
The tagline which can be suggested for the new product of Tesla named “Tesla Model
PhD” is “Be safe and enjoy the drive”.
The Unique Selling Proposition or USP of the new product of Tesla is based on the
opportunities related to communication which are provided to the customers to communicate
with other cars while driving on the road. This will play a major role in the ways by which
the customers can increase levels of safety on the road.
Recommendations based on objectives, strategy and the tactics of pricing
Pricing objectives – The pricing based objective of Tesla Motors is based on the ways
by which the organization is able to attract premium customers towards the products. This
aspect is considered to be an important part of the marketing mix based strategy which is
developed by the organization. The major objective of pricing which is set by the
organization is based on fulfilling the needs of customers and providing them with the best
possible products based on latest levels of technologies (Fernandes, 2018).
Pricing strategy – The pricing strategy which has been implemented by Tesla in its
operations in the automobile is premium pricing. The price based points are based on the high
value and levels of uniqueness as well. The customers tend to relate the quality of products
with the prices which are set for them (Wongleedee, 2015). Product design and innovation
are considered to be important parts of the effective pricing strategy which has been
implemented by the organization. The strategy is mainly related to the ways by which the
products can be differentiated from those which are offered by the competitors (Foxall,

7MARKETING MANAGEMENT
2014). The force which is provided by the competitions is considered to be highly important
for the pricing based strategy which has been developed by Tesla.
Market penetration with the help of new products – Tesla aims at penetrating the
automobile market with the help of new and unique products which are offered to the
customers. The broad differentiation based strategy has been implemented by Tesla in order
to ensure proper levels of growth in the market. This has played a key role in the
development of competitive advantage in an effective manner (Hanssens et al., 2014). The
new product based idea which has been suggested in portfolio to Tesla will be able to ensure
high levels of product differentiation. Market penetration has always been used as an
important technique to ensure growth in the automobile based industry. This is considered to
be highly important for the intensive growth based strategy which has been implemented by
Tesla Motors (Huang & Sarigöllü, 2014).
Product mix based pricing – The product mix which has been developed by Tesla is
based on the ways by which the organization is able to satisfy the needs of consumers. The
product mix which has been developed in this case is related to the high technology based
electric cars which will be able to communicated with the other cars which are available on
the roads (Jackson & Ahuja, 2016).
Strategy based on price adjustment – The dynamic pricing strategy has been
implemented by Tesla in order to attract the customers and fulfil the changing needs as well.
The new product of the organization will also be adjusted in such a manner which will be
helpful in attracting the customers and further fulfilling their needs as well (Khemchotigoon
& Kaenmanee, 2015).
Competitive analysis

8MARKETING MANAGEMENT
Competitors
Objective strategy or
tactic
Nissan Toyota Audi
Prices Low Low High
Pricing objectives To attract all groups
of consumers.
To attract all
consumer groups.
To attract premium
consumer group.
Pricing strategy Penetration pricing Penetration pricing Premium pricing
Product mix pricing Product mix is based
on different segments
and categories.
Diverse types of
products are
offered to the
consumers based
on their choices.
Product mix is
based on luxury
cars which are
offered to the
consumers.
Price adjustment strategy Prices are adjusted
based on the customer
segments.
Prices are adjusted
with respected to
the needs of
consumers.
Prices are adjusted
with respect to
needs and demands
of consumers.
Use of IMC tools for the product
Advertising – Advertising techniques are related to the ways by which the new
product based information can reach the customers. The advertising technique which can be
used for promoting the new product of Tesla is promotion with the help of different media.
Sales promotion – Sales promotion can be used by Tesla by providing different types
of products and gifts along with the car.
Personal selling – The personal based team which can be developed by the
organization is based on the promotions which can be done on an individual basis (Londhe,
2014).
Public relations – The image and position which has been developed by Tesla in the
automobile industry is considered to be an important factor which will help in the promotions
of the new product.

9MARKETING MANAGEMENT
Direct marketing – Tesla can use digital media in order to communicate with the
customers in an effective manner and within a lesser amount of time as well (Shah & Nayak,
2016).
Type of advertising strategy to be used
The major purpose of implementation of a proper advertising strategy is based on
increasing the levels of awareness about the new product among the customers. The
organization will be able to provide the customers with the information related to features
which are offered by the product (Steenkamp, 2017).
Objectives –
Information objective – The information based objective of the advertising process is
related to increase the levels of awareness related to the new product among the target
customer group.
Persuasive objective – The persuasive objective on the other hand is based on
increasing the interest of customers related to the new car which offers many new features as
well.
Key advertising message – The advertising based message which can be conveyed to
the customers is related to the different features which are offered to the customers and the
differentiation levels of the product as compared to the others (Wasan & Tripathi, 2014).
Selected media – The media which are selected for reaching the customers are social
media and television. Social media will be helpful in providing wide levels of reach to the
consumers.

10MARKETING MANAGEMENT
Conclusion
The analysis can be concluded by stating that the new product which has been
suggested to Tesla Motors named “Tesla Model PhD” can play a key role in increasing the
levels of profitability in the industry. The advertising based techniques used by the
organization will play a key role in the ways by which Tesla is able to increase the levels of
profitability and improve its position in the industry as well.

11MARKETING MANAGEMENT
References
Abidemi, B. T., Halim, F. B., & Alshuaibi, A. I. (2017). Service marketing mix, market
orientation and Organizational Performance: A proposed conceptual model. Asian
Journal of Multidisciplinary Studies, 5, 7.
Aghaei, M., Vahedi, E., Kahreh, M. S., & Pirooz, M. (2014). An examination of the
relationship between services marketing mix and brand equity dimensions. Procedia-
Social and Behavioral Sciences, 109, 865-869.
Aras, M., Syam, H., Jasruddin, J., Akib, H., & Haris, H. (2017, July). The effect of service
marketing mix on consumer decision making. In International Conference on
Education, Science, Art and Technology (pp. 108-112).
Cooke, E. F. (2015). An Update on the Concept of the Marketing Mix. In Proceedings of the
1983 Academy of Marketing Science (AMS) Annual Conference (pp. 266-268).
Springer, Cham.
Datta, H., Ailawadi, K. L., & van Heerde, H. J. (2017). How well does consumer-based brand
equity align with sales-based brand equity and marketing-mix response?. Journal of
Marketing, 81(3), 1-20.
Fan, S., Lau, R. Y., & Zhao, J. L. (2015). Demystifying big data analytics for business
intelligence through the lens of marketing mix. Big Data Research, 2(1), 28-32.
Fernandes, A. A. R. (2018). The mediation effect of customer satisfaction in the relationship
between service quality, service orientation, and marketing mix strategy to customer
loyalty. Journal of Management Development, 37(1), 76-87.
Foxall, G. (2014). Strategic Marketing Management (RLE Marketing). Routledge.