Chapter 8: Marketing Segmentation.

New Target Market for Tesla:

Target:

In order for Tesla Motors to keep growing now and into the future, it is going to be important to expand their target market to reach more consumers. Expanding our target market to the generation Y, mid 20’s to early 40’s, middle class working adults, Tesla will be able to utilize their facility while increasing production. This target market will be pinpointing the young professionals that are looking for an entry level luxury car. According to NADA DATA, the average selling price for a new car in 2011 was around $30,000 which shows that the majority of the consumers are not spending a lot of money on cars.

Segments:

We are going to segment the market for our new targets in three categories; eco-friendly consumers, tech savvy and entry level luxury cars. For the eco-friendly consumers, we will be able to reach them by offering a fully electric car that not only has more than double the driving range of the electric competitors, but also has the style and performance that Tesla is known for. For the tech savvy segment, we can reach them because the fully electric car is a growing technology which most consumers are not currently utilizing. Not only will the car itself be new technology, the interior of the car will really attract the tech savvy consumer with the basic options, as well as the add-ons, that will attract them as well. The entry level luxury car segment will attract the young professionals that are in the early stages of their careers and who will want to drive a luxury car. By having an entry level price, we will be able to attract more customers which will lead to future sales and brand loyalty.

Positioning:

We are going to position this car for the entry level luxury car that also has the added benefit of being fully electric while not losing any performance. Most electric cars are viewed as "unattractive" to younger buyers through lack of design and performance. By creating an entry level Tesla car, we can use our design and technology to change that image. By having an entry level luxury car that is in the $30,000 price range, that also has the benefit of being fully electric, will attract more buyers that are currently looking for electric cars or entry level luxury cars because of the added value of zero emissions, and by having this added value, it will position our brand to save consumers more money than the traditional entry level luxury cars.

For more info: http://www.slideshare.net/dpayne05/tesla-marketing-plan



Tesla and U.S.: In the first quarter of 2015, based on volume, the most popular EV/PHEV in the U.S. is the Tesla Model S, according to IHS.