• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
Strategic marketing For Tesla Motors - UC Berkeley Extension
 

Strategic marketing For Tesla Motors - UC Berkeley Extension

on

  • 4,105 views

Final Project created for Strategic Marketing class with Jim Prost, UC Berkeley Extension. (August 28th, 2013)

Final Project created for Strategic Marketing class with Jim Prost, UC Berkeley Extension. (August 28th, 2013)

Statistics

Views

Total Views
4,105
Views on SlideShare
4,104
Embed Views
1

Actions

Likes
6
Downloads
255
Comments
0

1 Embed 1

https://twitter.com 1

Accessibility

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    Strategic marketing For Tesla Motors - UC Berkeley Extension Strategic marketing For Tesla Motors - UC Berkeley Extension Presentation Transcript

    • UC Berkeley Extension Strategic Marketing -Professor Jim Prost August 28th, 2013 Byron Pittam / Laura DellaGuardia / Lisandra Maioli / Ryan Shi / Svetlana Fedorova
    • Introduction Tesla  Motors  is  an  automobile   company  that  strives  to  ween  the   industry  off  oil-­‐based   combus3on  engines.         They  seek  to  create  cars  that   are  fun,  environmentally   friendly,  inspire  others  to   do  the  same  and  drive  the  car   industry  forward.   2-28
    • Per Elon Musk h9p://www.teslamotors.com/blog/secret-­‐tesla-­‐motors-­‐master-­‐plan-­‐just-­‐between-­‐you-­‐and-­‐me     §  Build  sports  car   §  Use  that  money  to  build  an  affordable  car   §  Use  that  money  to  build  an  even  more   affordable  car   §  While  doing  above,  also  provide  zero   emission  electric  power  generaEon   opEons   §  Don't  tell  anyone.   So,  in  short,  the  master  plan  is:   3-28
    • Corporate Strategy §  More  EV’S!   ² Company-­‐owned  dealerships   ² License  electric  powertrain  components     ² Inspire  other  car  manufacturers     §  Premium  product  (Roadster)     ² Trickle-­‐down  technology   ² Use  of  early-­‐adopters  (Silicon  Valley)   §  Take  it  to  the  mass  market!   ² SUV-­‐crossover  and  mini-­‐vans     ² Cargo  vans  for  commercial  &   government  use.     ² $30k  target  model     4-28
    • 2003 2008 2009 §  Founded   2006 §  Prototypes  of  the   Roadster  introduced   to  the  public   §  Global  Green   product  Design   Award  for  Roadster   §  RecogniEon  by  Time   Magazine  -­‐  “Best   InvenEons  -­‐   TransportaEon   2007 §  Index  Design  Award   for  Roadster   §  Two  batches  of  100   Roadsters  sell  out   fast   §  Full  producEon   begins  on  the     Roadster   §  December  -­‐  100th   Roadster  delivered   §  Opened  first  retail   store  in  Los   Angeles,  second  in   Menlo  Park   §  Unveiled  the  Model   S,  March  26,  base   price  $57k   §  Opened  European   showrooms;  London,   Munich,  Monaco   Milestones 5-28
    • 2010 2011 2012 2013 2014 §  Strategic  Partnership   announced  with   Toyota     §  IniEal  Public  Offering   §  Opened  Japan  &   Australia  showroom   §  ConEnued  with   European   showrooms  in   Zurich,  Copenhagen,   Paris,  Milan   §  Stopped  taking   Roadster  orders   §  Opened  Hong  Kong   showroom   §  Commercial   deliveries  of  the   Model  S  begin   §  Unveiled  Model  X   §  Began  building   Supercharger   staEons   §  Small  price  increase   announced  for   Model  S   §  Model  S  wins     ²  Motor  Trend  Car  of   the  Year   ²  Automobile   Magazine’s    Car  of   the  Year   ²  Time  Magazine’s   Best  25  InvenEons  of   2012   §  Push  to  be   profitable...SUCCESS!   §  Musk  promises  US  to   be  covered  with   Supercharger   staEons  (18  today)   §  First  parEal  recall   §  Model  X  will  enter   producEon   §  80%  of  US   populaEon  covered   by  Supercharger   staEons   milestones 6-28
    • Other Electric Cars §  Chevrolet  Volt   §  Nissan  Leaf  (75,000  as  of  August  2013)   §  Mistubishi  i-­‐MiEV  (30,000  as  of  June  2013)   §  Honda  Fit  EV   §  RAV4  EV   §  Renault  Zoe   §  Roewe  E50   §  Scion  iQ  EV   §  Chevrolet  Spark  EV   §  Smart  ED   §  Tesla  Model  S  (12,700  as  of  June  2013)   20  total  models  of  highway  capable  EVs   7-28
    • Other Electric Cars §  Chevrolet  Volt   §  Nissan  Leaf  (75,000  as  of  August  2013)   §  Mistubishi  i-­‐MiEV  (30,000  as  of  June  2013)   §  Honda  Fit  EV   §  RAV4  EV   §  Renault  Zoe   §  Roewe  E50   §  Scion  iQ  EV   §  Chevrolet  Spark  EV   §  Smart  ED   §  Tesla  Model  S  (12,700  as  of  June  2013)   More  than  150,000  total  vehicles  have  been  sold  since  2008   TOP Selling 8-28
    • TOP Markets Japan 28% USA 26% China 16% France 11% Norway 7% 9-28
    • Tesla Financials §  $20  billion  market  capitalizaEon,  August  2013   §  10  year  old  company  is  worth  more  than  Mazda,  Suzuki  and  Fiat   10-28
    • Target Audience §  Wealthy  and  trendy  early  adopters,     §  Successful  professionals/entrepreneurs,     §  Upper  middle  class  city-­‐dwellers,     §  Tech-­‐savvy  and  green-­‐friendly      (eco-­‐hipsters)      "For  that  target  audience  (wealthy  and  tech-­‐savvy   niche  group),  the  more  exclusive,  the  more   expensive,  the  more  exo;c,  the  be=er,"       Phil  Go9,  senior  director  of  long  range  planning     for  IHS  AutomoEve.     h9p://news.naEonalgeographic.com/news/energy/2013/05/130522-­‐tesla-­‐motors-­‐success/     11-28
    • Target Audience Mark,  27  years  old,  lives  in  the  Silicon  Valley,  where   created  his  own  start-­‐up  when  he  was  just  21.     He  makes  a  bunch  of  money  with  his  Tech  business,   loves  luxury  brands,  he  buys  products  by  its   performance  and  design  and  is  constantly  a=en;ve   to  the  new  launchings  in  the  tech  area  and  is  always   the  first  person  in  his  group  buying  the  cuKng-­‐edge   products.  He  is  also  concerned  about  having  a   healthy  life  and  being  green.   Persona: 12-28
    • Penetration Strategy “Tesla's  strategy  is  similar  to  that  pursued  by   cell-­‐phone  and  flat-­‐screen  TV  makers,  which   started  off  selling  their  products  to  wealthy   early  adopters  then  cut  prices  to  mainstream   levels  as  the  technology  developed.”     Rachel  Konrad  ,  Tesla's  spokeswoman         h9p://www.nbcbayarea.com/the-­‐scene/shopping/Abu-­‐Dhabi-­‐Joins-­‐Feds-­‐as-­‐Tesla-­‐Investor.html     13-28
    • Product attributes §  “Design-­‐performance-­‐energy   efficiency”   §  No  dealers  (the  price  is  the  price:   no  negoEaEon)  or  commissioned   sales  person   §  TransacEons  being  conducted   online   14-28
    • Models 15-28
    • Model x 16-28
    • PositioningBurningFuelCars ElectricCars Luxury Cars Valueable Cars §  Tesla  is  posiEoned  as   a  high-­‐end  green   electrical  car's   company  in  a  luxury   market  with  a  unique   customer  experience   17-28
    • Product attributes “More  than  any  other  company,  Tesla  has  helped   transform  the  popular  image  of  electric  cars  as  nerdy  golf   carts  for  do-­‐gooder  greens  to  something  that  can  be  fun   and  luxurious  and  packed  with  cuKng-­‐edge  technology.  It   pioneered  a  new  genera;on  of  electric  cars.  Whether   Tesla  can  rally  mainstream  consumers  to  the  world  of   electric  mobility,  however,  remains  to  be  seen.”     by  Josie  Garthwaite  for  NaEonal  Geographic         h9p://news.naEonalgeographic.com/news/energy/2013/05/130522-­‐tesla-­‐motors-­‐success/     18-28
    • KSF §  Quality  and  design  of  the  cars;   §  Company  operaEonal  efficiency  and  costs;   §  Supply  and  distribuEon  chain  efficiency;   §  Flexibility;   §  MarkeEng;   §  Compliance.   for Automobile Industry 19-28
    • SCA’s §  Technology   §  Ecosystem   §  Excellent  Performing  Car   20-28
    • Promotion “Tesla  Motors  has  no  adver;sing,   no  ad  agency,  no  CMO,  no  dealer   network.  And  that's  no  problem.”         Michael  McCarthy,  AdverEsing  Age   21-28
    • Promotional activities §  Social  media;   §  Word  of  the  mouth;   §  Website;   §  Trade/auto/motor  shows;   §  Tesla  brand  communiEes;   §  Product  reviews;   §  Customer  events;   §  Blogs,  forums;   §  Email  newsle9ers;   §  Press  releases;   §  CelebriEes.   22-28
    • SWOT Analysis Opportunities Threats Strengths §  Well  known  CEO  with  good  track  record     §  Uses  Tesla  Stores  instead  of  tradiEonal   distribuEon  through  dealers   §  1st  company  to  produce  a  fully  electric   luxury  car   §  Proprietary  technology   §  Based  in  SF  Bay  Area   §  Popular  in  younger  age  groups  who  are   likely  to  use  social  media   Weaknesses §  CEO  is  also  CEO/CTO  of  SpaceX   §  Infrastructure  not  yet  developed  for  electric   cars     §  Customers  are  sEll  wary  of  such  new   innovaEons   §  Price   §  Increasing  awareness  and  support  for   environmentalism     §  Large  internaEonal  market  potenEal   §  New  lower-­‐price  models  appealing  to  a   wider  range  of  customers   §  Advances  in  tech  may  increase  ba9ery  life;   spark  other  innovaEons   §  CompeEEon  from  established  auto   companies   §  Lawsuits  could  inhibit/delay  innovaEons   §  Loss  of  government  subsidies  will  drive  up   prices   23-28
    • Marketing Strategy Tesla the ‘Challenger and Rule Breaker’ §  Performance  through  technology   §  New  sales  model  and  distribuEon     §  No  tradiEonal  paid  adverEsing   §  ExcepEonally  good  at  creaEng  buzz   §  Over  achieving  results   §  Technology  needs  charging  staEons   §  Facing  distribuEon  difficulEes     §  CEO  has  split  Eme   §  Supply  and  demand:  ProducEon   §  Keeping  up  with  compeEEon   Pros Cons 24-28
    • Options ① Stay  as  is,  conEnue  on  the  revoluEonary  path.   ② Stay  in  line  with  their  high  end  innovaEve   strategy,  build  their  own  factories  so  they  no   longer  rely  on  outsourcing  producEon.   ③ Get  in  the  mass  market  family  car  game   quickly  before  it’s  too  late.   25-28
    • Tesla Summary Assessment     AlternaEves  (RaEng)       RelaEve   Weights   OpEon  1   OpEon  2   OpEon  3   Technology   .3   5   5   4   Emerging  CompeEtors   .2   1   2   5   New  CEO   .2   2   3   5   AdverEsing   .1   2   3   4   ProducEon  Outsourcing   .1   3   1   4    Geographical  Expansion    .1    3    3    4   Rela3ve  Weight  x  Ra3ng   1   2.9   3.2   4.4   Analysis 26-28
    • Recommendations §  Nissan  Leaf  is  leading  the  market   §  CEO  is  crucial  to  new  vision   §  AdverEsing  to  keep  up  with  compeEEon   §  ProducEon  outsourcing  boost   §  Geographical  expansion   Option 3 : Get in the mass market game quickly! 27-28
    • Questions? 28-28
    • Tesla Superchargers