MARKETING AUDIT OF TESLA: Tesla Model 3 in China (Business & Marketing Essay)

MARKETING AUDIT OF TESLA 3
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"Marketing Audit of Tesla 3"
Executive Summary
The report explains Tesla as an organization and the company's marketing strategies, "Model 3" in China. Tesla is known to produce products with superior technology and output. It has gained the trust of its consumer in America. It has a unique positioning because of which it is a well-known brand. Being a premium brand such as Apple, Company cannot compromise on brand positioning. To maintain the trust of its consumers and brand image, it has to bring other strategies to maintain growth and profitability. Market expansion is one of the most feasible of all the available solutions. It would provide the Company to attain new consumers and potential opportunities to introduce more ecological products. China is already introduced electric car technology. However, the available option lags the quality of the product in contrast to Tesla. Tesla needs to act quickly, as the competition is stiff and needs to be countered for sustainability.
Marketing Mix
Marketing Mix identifies the organization's output or the products that are sold to the customer.
Product
Tesla All-Wheel Drive has two independent motors, which are placed for redundancy. Each one has one moving part so that minimum maintenance is to be done over a period. It is different from the conventional All-Wheel drive system as it has a digital system to control the torque for the front and the back wheels. It helps in better handling and traction control. Tesla is known for its electric-powered vehicles. The Company offers one of a kind vehicle with unique designs; it is a product that Company aims to expand in, globally. The car has advanced features that include autopilots and convenience features designed to assist the driver with the most hectic driving routine. (Dikmen and Burns, 2016) The increase in the disposable income of people has led to an increase in cars on the road. Growing market demand for car mostly but on the hind, it is an increase in the traffic, which can be tiring for people. This added feature in the car enables a hectic free, and enjoyable driving experience for people who have to travel a lot daily. A smartphone can be used for driving and controlling critical features of the driving. (Toumi, 2018). Tesla 3 is a product that is not unique but an up to date product that meets the demands of present times.
Price
Tesla covers a premium-pricing strategy, which means having higher price points based on the uniqueness of the product or the goodwill that is attributed to the organization. Customer is willing to pay a high price for Tesla products based on its unique features and environmentally friendly features. Innovations and product design are some of the unique features are some of the significant factors upon which the Company functions effectively. The premium pricing is relatively in agreement with the generic strategy of differentiation. In other words, the Company charges value for money. With the latest technology and effective product such as Model 3, the company charges a little more than its competitors. Over the period, the company has built a reputation of a car out of the box. It promised to deliver what has been claimed by the producer. The Company's products in the past have managed to delight the customer with their products. It has led to an excellent reputation for the organization. The company's product demand is nowhere lowered or reduced with the premium pricing; it has managed to create a niche. People feel flabbergasted to own a tesla and are willingly paying the price of it.
Additionally, it is an environmentally friendly product, which has currently raised its prices due to the high production cost of such products. Therefore, the acceptability, in general, is high, and the Company has a potential market beyond the parameters of America. (Teece, 2018). People around the world are ready to experience a classy vehicle despite premium pricing.
Place
Placement or reach to the ultimate customer plays an essential role in the success of an organization. Tesla uses Company-owned stores and galleries for the display of its vehicles. The consumer can view the products in the company galleries; however, to complete the sales transaction consumer need to utilize the official website. The official company website provides in-depth detail on the features and attributes of the Model 3. (Liu, and Meng, 2017). It highlights all the details to ensure that the customer is satisfied. Company-owned service centers are also present, which play a crucial role in magnifying the company's presence. It offers repair and maintenance services to the consumer in case of damage or wears out of the product. As the cars are electrically powered, they need charging from time to time, especially for a long-distance journey.
Thus Company has charging stations at various locations to facilitate the consumer of their product. The company has strategically placed its centers; however, limited they may be. It shows corporate management control on the Company's placement of its products. Reaching out to consumer effectively is a challenging task. (Koskinen, Lyyra, Mallat, and Tuunainen, 2019). Tesla offers a high involvement product that needs extra effort while the customer has many concerns too. Involvement in a high-end purchase requires a lot of consideration at the end of the consumer. Cars are usually a one-time investment, especially a unique vehicle such as Tesla. Optimally placing a product for the consumer to view plays a part. (Kim, 2020). Tesla 3 must now be presented as a bounty in the automotive industry.
Promotion
The company utilizes various methods to promote itself and its products. Viral marketing has the most significant role in the marketing of Tesla products. It can be observed in the case of the Tesla Model S for kids, which was primarily promoted through viral videos that floated on social media. Personal selling is also actively pursued as it is done in the stores and galleries. Tesla also uses relationship-building to increase the popularity of the brand. The company included the public in the company patents so that the general public is aware of sustainable energy sources in the production of the company products. (Carlson, 2015). Lastly, the Company uses sales promotions such as discounts on the purchase of one item or other. It entices the customer to take the step. Every Company needs to push its product in the market for the consumer to know about its existence. It is also to create a demand in the market. Tesla is aware of the importance of promotional strategies and engages in effective methods to make a difference. (Wang, 2020). Tesla fears no option for reaching out to its consumer.
Segmentation
Targeting
Tesla has a unique way of targeting the consumer. It has mono-segment positioning. Tesla targets people who are environmentally conscious and prefer alternative use of energy sources. Tesla products are expensive as far as an average consumer is concerned. Hence, the consumer category that Tesla targets are of a higher income bracket. (Thomas and Maine, 2019) They have more disposable income than an average consumer. The target segmentation can be understood with the following table.
Segmentation Kind

Criteria

Tesla Target consumer



Tesla Model 3

Geographic

Region

North America Asia


Density

Urban & Rural

Demographic

Age

30+


Gender

Males & Females


Occupation

Professionals executives, senior managers

Behavioral

Degree of loyalty

Hard-core loyal


Benefit

Status conscious, Environment conscious