Marketing Mix

 

Product
Tesla exclusively produces electric cars and it is pioneering on this new technology – however, its current product portfolio consists of one single car, the Model S. By fall 2015, the portfolio will expand to 2 models, once the Model X is released.

 

Even though the company currently limits production to one single model, the Model S is available in 3 different variations, depending on customers demand. All of those are keyless, Wi-Fi and Bluetooth ready with free charging for Tesla owners at the “super-charging stations”, which charges the car up to 80% in 40 minutes. [24]

Tesla Model S

The sedan comes with two choices of battery, a 60 and a 85kwh ones - when fully charge, it can travel up to 426 kilometers straight. The standard 85kwh battery has a 380 hp engine, whereas the new Model “P85D” contains a performance battery that delivers 691 hp and an optional autopilot function. The components available in the model are carbon fiber brakes, supercharger (dual charger available), panoramic glass roof, 19”or 21” tires, Xenon headlights, LED rear-tails, 17” touchscreen with GPS (the largest automotive touchscreen, with different apps that can be added). Additional packages contain Smart Air suspension, Tech, Premium Interior, Sound, Weather and Rear Facing Seats. The usual charging period is around 1-1.15 hours. The advantage of the Model S compared to normal cars is its low maintenance: no oil or smog and checkup can be done at home. It updates its system wirelessly, which can be easily done in the garage.

Every Tesla comes with a Euro NCAP 5 star safety rating and an 8 year infinite mile warranty on battery pack and drive units.

 

Price
Depending on the model, prices start at 648.000 RMB with the 60kwh battery and can reach up to 948.000 RMB for the 85kwh “performance” battery. It is possible to personalize each car with different packages. Mainly due to high taxes on imported goods, China is the most expensive country to buy a Tesla. Also, the Chinese government gives fewer incentives for foreign electric car manufacturers compared to local electric car manufacturers, which contributes for a more costly car.

 

The three purchasing options of the Model S are available to lease, and it is also possible to get a loan from the Tesla Corp. or pay in cash.

 

 

Place

Tesla can be found in both online and offline channels. In their website, it is possible to request a test drive or directly buy the car. As for physical stores, there are currently 20 dealerships in China, including 3 in Shanghai, and they are all fully owned by Tesla. Those stores are situated in highly visible locations, allowing potential customers to easily spot them, and the promise is to have complete control over the customer experience, similar to what Apple does (they hired the ex-vice president of Apple’s design and store development). Highly qualified salesmen are able to explain all the benefits of owning a Tesla and all features of the car in the smallest details. Tesla also provides a service center and technicians that come directly to the customer’s house or work place when needed. All these experiences increase the value delivered to the customer.

 

 

Promotion

As a new company, Tesla’s opted to a limited marketing department, that currently consist of 7 people, and is all done in-house – they do not hire third parties consultancies or advertising agencies.

 

Their communication strategy focuses on digital channels – Tesla relies heavily in their brand’s website, forums, blogs and social media. On the website, consumers can chat with sellers and former buyers, find information about the improvement of the newer models, the safety, new software and warranty. It is clear the brand’s effort on creating a community around its name.

 

Also, the stores have crucial importance on branding and creating pleasant experiences, ultimately adding value to the whole purchase path and therefore value to the vehicles.

 

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