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Marketing Positioning Tesla / Positioning a product

Student Paper of Higher School of Economics, Russia
- Positioning statement
- Competitive Analysis in International Marketing: Tesla competitors in Russia, Brand Map.
- Understanding the consumer: market segmentation; Consumer Value Equation, Buyer Persona.
- PEST-analysis
- SWOT-analysis
- Porter five forces analysis
- Targeting

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Marketing Positioning Tesla / Positioning a product

  1. 1. REDSTAR Project Next step in Tesla’s marketing strategy Red Star Project TESLA’S MODEL 3 LAUNCH IN RUSSIA
  2. 2. Electric cars – a new category within the cars market Electric cars are not motorised by a fuelled motor engine but by energy stored in batteries. Electric cars should be differentiated from EV (electric vehicles), a category which includes plug-in hybrids. Electric cars competition on the cars market include traditional car brands (Mercedes, BMW, Nissan…) as well as new ones (Tesla…). According to the tech news and R&D it could include top tech actors in the future (Google, Apple…)
  3. 3. Russian new cars market – Compared evolution and growth
  4. 4. Tesla Motors – A car company which is not a car company Tesla Motors was launched in 2003, by 5 co- founders. The most known is Elon Musk, current CEO of the company. Tesla Motors started the production of its first vehicle in 2008: the Tesla Roadster. It already produced 4 different models of cars – 2 roadsters and the Model X (Dark Star) and Model S (White Star). Between 2017 and 2020 it will start the commercialisation of its fifth car, the Model 3, or Red Star.
  5. 5. From 0to 100km/h in 3 seconds 0charge Moscow / Saint-Petersburg 0emissions COMPROMISE 0charging expenses 0noise 0smell 0Parking fees in Moscow
  6. 6. ASPIRATIONS POPULARIZE electric cars in Russia PERSUADE consumers that electric cars are “cool” WIN the dominant market share on electric car market in Russia GET 30% of BMW consumers and 10% of Mercedes consumers SELL 3000 cars in 3 years after launch DEVELOP power stations or points for charging BUILD an association in consumers’ minds: Electric cars ?
  7. 7. Tesla strategic position for Red Star - PEST POLITICAL One of the major political factors affecting the industry is environmental protection laws (including Russian laws) that is highly appreciated production of more environmental cars. ECONOMIC Economic factors include economic growth in the alternative energy industry and increasing prices of fuel for customers. (In Russia price of petrol since 2008 increase from 22 Rub/L to 37 Rub/in 2015). Therefore, the demand for electric cars is higher than before. SOCIAL People are tend to protect the environment. Tesla is environmentally-friendly car ;) TECHNOLOGICAL Technology advancement, rapid globalization and Internet impact have a huge effect on the automotive industry. Tesla car create technologies.
  8. 8. •Many substitutes among gasoline cars (!) •Very few substitutes among electric cars •Switching is possible and affordable •No non-car substitutes Strong •Mostly private individuals •Little ability to negotiate prices •No dealers of electric cars Neutral •High costs of switching to a different supplier •Demand for components manufacturers •Growing demand for domestic suppliers •Limited amount of reliable suppliers Strong power •Much capital required •Governmental utilization fee for imported cars •Strong brand image of existing market player •Hard to reach economies of scale Very strong barriers 5 FORCES Threat of New Entry Buyer Power Supplier Power Threat of Substitution Competitive Rivalry ++ - 0 + Competitive Rivalry • Very strong gasoline cars competitors • Extremely strong competitive brands • Perfect brand reputation of competitors • Few e-cars available on market • Developed and mature market Very strong --
  9. 9. A SWOT analysis – Tesla on the Russian cars market
  10. 10. Tesla competitors in Russia – (Classic) car market The Russian car market is close to 99% of oil fueled cars. This situation makes Tesla a competitor for the brands and models competing here, looking for the same customers. Taking market shares to those competitors is the main goal of Tesla, since the absence of a strong and competitive innovative cars market make the company competing with traditional oil fueled car.
  11. 11. Brand map Innovative Technically regular Conservative Modern
  12. 12. Tesla competitors in Russia – (Innovative) cars market The Russian car market is evolving. If electric and hybrid cars are still looking for opportunities to invest furthermore the Russian cars market, Tesla will have to take the lead in innovation and future technologies to take the niche. In 2014 there were only 300 electric vehicles registered in Russia and 2000 hybrid cars. The part of electric cars in the total car market in Russia should constantly grew up for the years to come.
  13. 13. Brand map 426 km 120 km 150 km/h 260 km/h
  14. 14. Tesla Motors – Market strategy LaunchPrice 75,000 $ (2012) < 30.000 GCS 60,000 $ (2012) 90.000 GCS 30,000 $ (2017-2020) 98,000 $ (2008) > 10.000 GCS Market Size Roadster Dark Star White Star Red Star
  15. 15. Segmentation Gadget Guru “It’s a great day to be me.” • Successful, wired, free spirited, confident, and at ease • Feels this is his best decade • Greatest device ownership, pushes • Сontributes to content • Male dominated, above-average • Income, single
  16. 16. Profiling Sociodemographic: • Age: of 25 – 45 • Income: Average income over $35K/year • Education: Higher • Social class: middle class Psychographic: • Lifestyle: stands for innovation, career oriented • Intrinsic motivation of purchase: being out of the box • Values: technology-savvy, self- realization • Type of psychographic model (by VALS): Achievers
  17. 17. “Buying Mercedes or Lexus means to be like thousands of other users. Tesla Red car has mega cool functional of a sport cars. Acceleration of 3 sec to 100kmh, no typical engine noise is awesome!” Valery, 29 Client Testimonials “I appreciate things that make me feel special. My Tesla story is not about climbing the hill with the crowd, but about creating my own mountain. It’s trendsetting, yet being yourself. It’s a freedom to be yourself – freedom from clichés, gas stations, paid parking.” Diana, 35 Buyer Persona
  18. 18. Targeting • Presentation • Direct advertising • SMM • Blogs and Vlogs • Showrooms
  19. 19. Positioning statement TESLA is the only STYLISH CAR that can go FROM 0 TO 100 in 3 SECONDS without A DROP OF OIL
  20. 20. Positioning statement For DRIVERS WHO ARE KEEN ON INNOVATION, TECHNOLOGIES, COMFORT and WANT TO BE AHEAD OF THE CROUD; TESLA is the only PREMIUM CAR that goes FROM 0 TO 100 in 3 SECONDS and can reach 260 KM/H WITHOUT ANY PETROL. Unlike Mercedes, BMW and Audi, Tesla SYMBOLIZES A NEW ERA and is PERCIEVED AS AN OUT OF THE BOX

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