BUSN20016 Case Study: Tesla Australia's Market Position & Value

This case study examines Tesla Motors' efforts to establish a strong market position and enhance brand value in the Australian electric vehicle market. It highlights Tesla's innovative technology, luxury designs, and marketing strategies, including test drive campaigns and online advertising. The study addresses the challenge Tesla faces in achieving marketing dominance and explores strategies for influencing customer behavior and creating a unique brand image. It investigates Tesla's market segmentation, distribution channels, and the importance of marketing research to understand customer requirements. The research methodology involves analyzing online resources, articles, and journals, and suggests that Tesla should focus on quantitative factors such as hiring skilled staff and developing comprehensive marketing plans. The study also recommends utilizing both primary and secondary data sources to assess market position and brand value, emphasizing customer surveys and analysis of existing online information. The literature review covers business model innovation and Tesla's brand value and market position, referencing BrandZ rankings and reports on Tesla's innovative approach and market impact.

Running Head: MANAGEMENT 1
A case study on market position and increasing brand value of Tesla motor Australia

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1.0 Introduction
In the market for an electric vehicle, Tesla Motors Company has set up itself as the
leading leader in the market. The principal reason behind is to lead in the market due to the
updated technology and great innovation (Becker & Sidhu, 2009). To control the EV market,
Tesla has come up with luxury design cars, to support in developing the fundamental values
that help them in competing with the electronic market and hybrid vehicle (Peteraf, 1993).
The strategy which is deployed through Tesla is supportive in achieving the significant share
in the market; producing brand loyalty as well as for earing the profits and position by the
new program launched by the company in the Australian market (Beltramello, 2012).
To promote the brand loyalty of company, various programs are designed. These
programs will be supportive in offering the alternatives for buying Test drive campaigns
(Blake & Matt, 2014). The campaign organized for marketing relies on advertising by the
magazines, websites, and direct kind of marketing and public relation. In the coming decades,
the demand for EV automobile will increase with the expansion of the market. The Tesla
Motors is trying to identify the market of Australia and is also trying to earn highest profit
level (Credit Week, 2013).
In the year 2003, Tesla Motors was founded by Marc Tapenning and Martin
Eberhard. After 2003, the company has witnessed highest expansion. The company’s revenue
was around 2.44 billion dollars, and the company gross profit was about 456.26 million
dollars in the year 2010 (Herari, 2014).
Tesla is planning and is also working towards new innovative ways of creating its
market position in the market of Australia by offering the correct product value or service to
the customers (IBISWorld Industry Report, 2013). The company has also coordinated with

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the automotive industry through developing various innovative products that fit together; this
strategy is known as complex coordination by the investors of Tesla Motors.
1.1 Problem Statement
The Tesla is facing a challenge in attaining the absolute level of marketing in the
context of electrical cars innovation. These project aims to develop the position of the
company in the market and enhance the brand value by conducting marketing activities and
by delivering the right product value to customers (International Economic Development
Council, 2013). The company is planning to take efforts in creating influence over the
behavior of customers towards the value of brand or service or product for purchasing these
as well as simultaneously occupying the unique, bright and beneficial mind of customers, that
is known as market position (International Monetary Fund, 2014).
1.2 Aim
This research aims to assist in understanding innovative strategies and how the same
work towards enhancing the brand value as well as market position.
1.3 Objectives
• To reach out the appropriate market position as well as brand value perception.
• To examine the promotion and campaign of Tesla plans for a new product that will support
in creating the various images of customer mind connected with products.
• To address that Tesla has categorized market segment and is targeting every segment
differently and developing multiple distribution channels.

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• To mention that Tesla should undertake marketing research for exploring requirement of
customers.
1.4 Research questions
Question 1: How Tesla Motors is planning to create its market position among various
competitors?
Question 2: What all strategies are selected by Tesla for enhancing its brand value?
1.5 Justification and potential output of the research
Through this research, it will be analyzed how companies try to create its brand value
in the automobile market. In the present time, competition has increased with the company’s
focus innovative technology (Kahl, 2011). Every company is coming up with new exciting
features in their products; therefore, building market position in competitive market is quite
challenging (Bohnsack, Pinkse & Kolk, 2014). This research has set its specific goals, and in
that context, the primary and secondary study will be conducted for collecting information,
which will be analyzed in data analysis section for deriving valid outcomes (Little, 2013).
1.6 Limitations
This research is based on Tesla market position and increasing brand value. In this
context lot of research will be undertaken. As the budget of this research is specified, limited
sources will be analyzed for collecting the data. Even time is also fixed; therefore, all the
research and its interpretation has to be done in set time.
2.0 Conceptual framework
2.1 Literature Review

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2.1.1 Introduction
Telsa Motors Incorporation is the most attractive brands within the automobile
industry. Its innovative technology and nature both, along with attractive designs has helped
in catching eye of people from around the world (Nykvist & Nilsson, 2015). Recently Telsa
has come up with its launch of new model 3 and through which they are able to collect
thousands of pre-orders that had made the company as most popular brand in automobile
industry at its starting development stage (Belch & Belch, 2012). It is analyzed that Telsa is a
public as well as listed organization, which is another critical component that assists in taking
a final decision on its selection. Telsa is also reporting on day to day basis to their investors
and various brokers that conduct research for company (Chernev, 2012).
2.1.2 Business model innovation in emerging industry
The business model term gained its popularity as well as attention through sector and
academy in the 20th century. It brought various new threats as well as opportunities in the
environment of business due to the unique communication technology as well as computer
technology like social networks (Clow & Baack, 2012). The principal aim of the business
model is to analyze how the company tries to create the value as well as capture the value. A
business model explains how the organization work to create as well as deliver customer
value and also converts the payment collected through profits. It’s also require to mention
organization offers and how the same can be meet up (Clow & Baack, 2012). Through this
business model, it is analyze that the strategy of the company and economic perspective, the
statement related with expectation of customers, market reality statement and technological
aspects (Ramoni & Zhang, 2001).

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The business model is connected with the performance of the company. Nevertheless,
it never promises for the extended competitive benefits as other market competitors might try
to imitate the practices (Glynn & Woodside, 2012). Therefore, the innovative business model
is referred as creating a various business model for attaining long-term benefits in
competition and establish the company’s position for imitating. It’s considered as a case since
rivals will find it challenging to replicate the entirely new business model as compared to
innovative service or product (Homburg, Krohmer & Kuester, 2013). Through the coming up
of a new industry, it is noted that innovation in business can easily trigger towards the
process of commercialization for exploring the industrial design dominant and also try to
shape the industrial evolution pattern (Hutt & Speh, 2013). That’s why literature of
innovation treat the business innovation as essential for transforming the innovation in
technology for business value offering.
2.1.3 Tesla motor brand value and market position
Tesla has taken an honour and came as the most innovative brand in America this
year, and is listed in BrandZ list. BrandZ is the highest international platform of brand equity,
which includes around 100000 brands in approximately 45 countries of the world. With about
4.5 billion information points collected in last 20 years, BrandZ is identified for exploring the
primary attributes, which is shared through valuable, strong brands all over the world (Hutt &
Speh, 2014). The question is, why Tesla is rank at number 1 for its innovation? As per
reports, Telsa is considered as the premium electric car brand, which tries to create the
valuable difference through meaningful, just as well as a variant (Mische, 2001). Telsa
produces items that meet the desire of customers for all the environmentally identified
vehicles because it has invented entirely new as well as a model of direct to consumer sales
(Jolibert, 2012). It also equips with the cars with various driving modes and tries to update

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the firmware, when one upgrades their operating system on phones. As this has attempted to
construct the enthusiastic as well as a fan base, which supports the growth of the brand
(Kotler & Keller, 2012).
Tesla top the list of BrandZ American innovation ranking
In the past year, Tesla was registered under the top most valuable car brand list of
BrandZ around the world. In this year, Tesla was recorded at 8th number. It is mentioned by
report that Tesla has to lead the top car brand list of BrandZ, which has supported them in
enhancing the brand value of company, that depicts the car positioning success and brought
the car as most stylish and luxuries brand, which provides high octane, as well as carbon
burning engine performance without having any guilt (Lamb, Hair & McDaniel, 2013).
Tesla was also ranked at number 6 by BrandZ list of 20 risers all over the world. As
per the report, the combination of Telsa technology of electric car leadership as well as
luxury marketing has set up the carmakers pace who think about the launch of the enormous
market for Tesla (Frederick & Webster, 1992). The company depict the upcoming electric

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vehicles and currently Ford as well as General Motors in the value of the market (Lee &
Carter, 2012). Along with this, the report will also forecast about the prosperous future of the
brand that mentions: Tesla has created a threat for all the luxury brands in the market, and
currently, the company has also debuted with their model 3, whose price is around $35000
(Moutinho & Huarng, 2013). This model promises to come up with electric vehicles of Tesla
that were previously deemed under the luxury products. Tesla cars also differentiate itself
through the efficiency of energy, as well as through cutting edge technology and footprints of
low carbon that win several fans for the company.
From all global brands, Tesla enhanced the brand value by 32% every year, while its category
is still flat as per BrandZ.
3.0 Research Methodology
3.1 Data collection methods

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The research methodology is undertaken by various online research information,
articles, books and journals that are peer-reviewed and different magazines (Paul, 1982).
Different approaches will create influence over the position of the company in the market and
how the same impact brand value. Telsa is working on improving its quality and quantity
resources for attaining the market position (Mullins & Walker, 2013). This research has
selected quantitative factor for conducting research. As per this factor, Telsa should hire more
staff and knowledge about the marketing (Hussey, 2001). It is essential that company should
have prepared their marketing plan before they launch any product in the targeted market.
Through the quantitative method, Telsa will offer new innovative technology that will
emphasize over pure-electric technique as well as transfer various research approaches
through technology industry towards transportation, like updates of online software
(Damodaran, 2009). The company should also offer better quality services to their customers.
3.2 Sources of Data
Telsa Motors should undertake both primary as well as secondary data sources for
measuring how strong is Telsa market position, and how the company can attain it in the set
period. According to primary data method, Telsa should survey the present market situation
and should emphasize over a specific group that gathers the previous information and observe
the behaviour of customers (Srivastava, Fahey & Christensen, 2001). This can support the
company in analysing the present brand value of the company before the company launch the
product.
According to secondary data, Telsa should refer previous information that is available
by the online articles and journals that are readily available. Telsa should make specific
recommendations as part of their new strategy of marketing. They should introduce the
barriers of technology that support in preventing the quick responding technology through

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accessing the full technical value in previous markets (Damodaran, 2004). The company
should also present the requirement for monetization of essential services that are required for
the ongoing security system.
In the present world of technology, various marketers and customers are influenced
by the new invention that comes to market, and through reduced product life cycle and new
opportunities for product sales. All these should be considered when setting the objectives of
the market by Telsa Motors. For instance, Telsa marketing plan includes the sale of 2 lakh
units every year (Damodaran, 2004). The department of production should gear up to develop
various units. Telsa finance department is expected to arrange the funds for covering all cost;
human resource department should be prepared for hiring as well as training the employees.
By appropriate level of company resources and assistance, the outline of the project can
quickly meet the set objectives of the company.
4.0 Organisation of the study
Chapter 1: Introduction
This chapter will discuss the background details about the topic of research by
analyzing about the market position and brand value of Telsa Motors, aims, and objective of
the study, by which results will be derived. It will also include research question and
justification of research output.
Chapter 2: Literature Review
This chapter will present the thoughts of different authors and will try to analyze the
role of brand value and innovation in setting market position of the company. It will also
discuss innovation and brand value in the context of Telsa motors.

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Chapter 3: Research methodology
This chapter will emphasize over different research methods that will be implemented
with an aim to collect the information through survey method, which is will be undertaken
through secondary sources. This section will also analyse the research methods and approach.
The secondary data will be gathered with the use of academic books, journal articles,
newsletters, and websites. This section will mention about sampling strategy for gathering
research information.
Chapter 4: Data analysis and Findings
This section will include data analysis of information that is gathered through survey
method and the same will be presented by graphical representation method. It will also cover
tables and on its basis graphics will be prepared.
Chapter 5: Conclusion & Recommendations
This chapter will cover up a summary of complete research, and it will also draw a
right conclusion, which will assist in analysing the research. It will also make sure about the
importance of market position and brand value for the company. This chapter will also list the
scope of future research and also offer appropriate recommendations.
4.1 Project budget
In this research, money will be spent in collecting large data for conducting research.
The amount will be incurred on literature review, where the various book, online sources, and
articles will be referred. In the primary method, the survey will be organized (Costa, 1995).
Therefore, the amount will be incurred in conducting the survey, contacting with participants,
sending them a questionnaire and then collecting their response and its interpretation

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(Damodaran, 2004). The project budget is allocated by the university, and it’s important to
conduct complete research in the given budget.
4.2 Schedule (Gantt chart)
Gantt Chart
Tasks 01-May 10th May 28th May 01-Jun 5th june 15th June 20th June 30th June
Selection of research topic
Preparing research outline
Preparing research proposal
Introduction
Literature Review
Research Methodology
Data Anlysis
Conclusion and Recommendations
A Gantt chart is considered as the horizontal bar chart, which is implemented for
attractively and quickly presenting the project schedule. The Gantt chart shows every core
step, which is applied for analyzing the research is quite an effective manner. This project is
started on 1st May 2018, when the university selected the research topic. The research area is
essential for analyzing the brand value of Telsa in the Australian market (Damodaran, 2004).
The research was undertaken in the automobile sector, where electric cars are getting
popularity. After the topic is finalized, research outline was prepared and later on research
proposal is prepared.
To have in-depth research, researchers have tried to conduct contemporary knowledge
related to the topic (Venkatraman & Prescott, 1990). The same is done through analyzing
various sources like books, articles, and online sources. In the literature review, various
literary sources will be explained that present the thoughts of multiple authors related to the
research topic. The section of research methodology will connect to a research strategy,
sampling method, and data collection methods. As this research is exploratory, the data which
will be gathered will be both primary and secondary form of data (Damodaran, 2004). Data