MKT20025: Analysis of Tesla Model 3 Marketing Strategies in Melbourne

This report provides a comprehensive analysis of the marketing strategies employed for the launch of the Tesla Model 3 in Melbourne, Australia. It examines the type of innovation, specifically the integrative innovation model, and its characteristics, highlighting the car's performance and environmental stewardship. The report delves into the social system theory, focusing on target market positioning, culture, social class, and the influence of time on consumer adoption. It identifies the target market as young, tech-savvy individuals and environmentally conscious consumers. The cultural shift towards quality products and sustainability in Melbourne, along with government initiatives like electric highways, are also considered. Furthermore, the report discusses the role of social class and the time theory, exploring the adoption timeline and the increasing interest in electric vehicles. The report concludes with a bibliography of cited sources.

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Marketing Strategies
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Innovation
Product information
Tesla Model 3 car is an electric Sedan that is developed by Tesla, which delivers an all-
electric range of 240 miles. The car has inbuilt software that enables it to auto-drive. The car was
unveiled in 2016, with the official delivery into the market starting on the 7th of July 2017. The
car was launched in Melbourne on 2nd September 2019.
Type of innovation
The type of innovation used in developing the Tesla Model 3 is the integrative innovation
model. The car is developed for high performance and environmental stewardship. In high
performance, the car can be driven for long miles and it is very user-friendly (Perkins and
Murmann, 2018, pp.472). As an electric car, Tesla Model 3 is designed to reduce the global
carbon footprint.
Characteristics of innovations.
At Tesla, the cars are developed with performance and environmental conservation at
heart. From the first electric car, the Roadster model, to the Model S that followed, the company
has constantly developed electric cars that are revolutionizing the motor industry. Model 3 has
made a significant step by incorporating auto-drive features at an affordable price.
The launching of Tesla model 3 in Melbourne is a significant shift in technology. The car
will primarily attract millennials and young adults who fall into the category of innovators in the
diffusion of innovation theories (Khoo, Wang, Paevere and Higgins, 2014, pp.270). This consists
of young individuals with an interest in new technology and having high purchasing power. The

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features of high performance and environmental stewardship will additionally attract a new niche
of Australian consumers.
Social system theory
Target market positioning
In the launch of Tesla Model 3 into Melbourne, the company has identified a specific
target market involving a specific population segment. In its target positioning, Tesla uses age
and social status as the core determinant for marketing positioning. The form of Tesla’s
positioning for the Melbourne market is the mono-segment, where Tesla target individuals with
high purchasing power, and young people who are technologically conscious (Cave, 2017,
pp.59). The company may also apply this type of targeting to environmentally conscious
individuals who are advocating for environmental sustainability. Additionally, Tesla can use
anticipatory positioning for the Model 3 car in Australia, to target a low turnover market, with
high hopes that the market turnover will increase in the future.
Culture
The launching of the Tesla Model 3 car in Melbourne Australia has been significantly
influenced by the change in culture, where the average consumer is more interested in quality
products and environmental sustainability (Owuamalam, Rubin, Spears and Weerabangsa, 2017,
pp.80). The government of Australia has also influenced the decision to launch the car into the
Australian market by finishing the construction of the ultramodern electric highways (Greaves,
Backman and Ellison, 2014, pp.230). This has been informed by the increase in environmental
awareness of the Australian populous. However, some of the consumers in Melbourne may be
repelled by the high price tag of the EV vehicle. The Australian people are also wary of new

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technology, and this may limit some of the consumers, especially the old demographic from
purchasing the Tesla model 3 (Lensvelt and Steenbekkers, 2014, pp.550). This is from the fact
that the consumer is slow to change, and might be wary of paying a premium price for a car that
may be defective or they are not familiar with.
Social class
Social class in Melbourne is based on the purchasing power of the consumer. In
Australian there are about six social classes, consisting of Precariat, aging workers, new workers,
established middle class, emerging affluent and established affluent (Wolfram and Wiedmann,
2017, pp.535). The emerging affluent which consist largely of young innovators are more likely
to buy the car due to their predisposition to technology and they also do not require much
convincing to embrace new technology.
Time.
Time theory deals with the timeline for the adoption of the Tesla Model 3 in the
Australian market. Following the launch of model 3, in Melbourne, the number of consumers
who have researched Tesla EV cars intending to buy has significantly improved. according to the
survey by Electric vehicle Council in Australia, the number has tripled from 1.8 percent in 2018
to 6 percent in 2017 (Gaton, 2017, pp.47). The key barrier to buying the electric vehicle in the
past was due to the perceived anxiety in the past since the EV was a new technology, but the
technology is being diffused in the market due to increased effort of environmental conservation.

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Bibliography
Cave, H., 2017. Charging ahead?-The bid for better batteries [Transport Batteries]. Engineering
& Technology, 12(2), pp.58-61.
Gaton, B., 2017. Market acceleration: Electric vehicles at home and abroad. ReNew: Technology
for a Sustainable Future, 139(1), pp.46-49.
Greaves, S., Backman, H. and Ellison, A.B., 2014. An empirical assessment of the feasibility of
battery electric vehicles for day-to-day driving. Transportation Research Part A: Policy and
Practice, 66(2), pp.226-237.
Khoo, Y.B., Wang, C.H., Paevere, P. and Higgins, A., 2014. Statistical modeling of Electric
Vehicle electricity consumption in the Victorian EV Trial, Australia. Transportation Research
Part D: Transport and Environment, 32(3), pp.263-277.
Lensvelt, E.J. and Steenbekkers, L.P.A., 2014. Exploring consumer acceptance of entomophagy:
a survey and experiment in Australia and the Netherlands. Ecology of food and nutrition, 53(5),
pp.543-561.
Owuamalam, C.K., Rubin, M., Spears, R. and Weerabangsa, M.M.A., 2017. Why do people
from low‐status groups support class systems that disadvantage them? A test of two mainstream
explanations in Malaysia and Australia. Journal of Social Issues, 73(1), pp.80-98.
Perkins, G. and Murmann, J.P., 2018. What does the success of Tesla mean for the future
dynamics in the global automobile sector?. Management and Organization Review, 14(3),
pp.471-480.

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Wolfram, P. and Wiedmann, T., 2017. Electrifying Australian transport: Hybrid life cycle
analysis of a transition to electric light-duty vehicles and renewable electricity. Applied
energy, 206(5), pp.531-540.