Strategic Introduction

 

 

Positioning

Tesla will position itself as an electric luxury sedan in the Chinese market. In this segment just accounting electric cars, Tesla will have a quite unique position since there is no other fully electric luxury sedan on the market. However, in the general luxury sedan segment in China the competition is rather fierce. The largest competitors are the three large German manufacturers: Audi, BMW and Mercedes. They all have sedans targeting the same business sedan segment as Tesla and together occupy a large part of the market. The environmental aspect and fuel economy can be a competitive advantage for Tesla in this segment.

 

Strategy recommendations

Based on a Macro and microanalysis of the brand, and in our primary and secondary research, the team developed a marketing strategy for Tesla in the Chinese market.

One of the main observations is that a strong brand is one of the top requirements Chinese consumers have when choosing a car, and therefore we strongly recommend that Tesla prioritize a Holistic marketing approach to further enhance the brand in China.

Having a Holistic approach, Tesla will ensure that consumers perceive the brand as it is positioned – a high tech, luxurious, yet functional, safe and responsible automaker.

 

The Target Customer

The target customers for Tesla’s early phase in China with the Model S will be early adopters and trend setters that want to lead the way of the new electrical vehicle trend. Therefore, successful businessmen and business owners who have financial stability to afford a Tesla are also the ones that show higher potential to acquire the Model S. These consumers have an average yearly income of 600 000 to 1,5 million RMB and live in tier 1 and 2 cities.

As the product and the brand become more mature in the market and Tesla increases the product offerings, it will be possible for Tesla to expand their reach and target audience.