The secondary target market comprises of high income market segments and buyers who are enthusiastic about environmental preservation regardless of the price of the car. Image Source: Statista. Essentially, these are vehicles that can run more than 200 miles on a battery alone. Introduction I. They have tested different ways to segment a market and positioned Tesla firmly in the premium sports car market despite being a newbie with an alternative offer in a well-established automotive industry. The writer you've assigned to me complete my paper on time and with all requirements. Will an everyday all-electric car and price point diminish a brand when their data-driven target market segmentation indicates their business and brand is largely built on exclusivity, ideals, and status?
Tesla is a car make from Palo Alto, United States. the Tesla Model S. This is due to a number of mitigating factors, such as state regulations, lack of charging infrastructure, and consumer concern over range (range anxiety). Competitive based pricing: Falling into the commoditisation trap? Thank you! Therefore, with the emphasis on the mass market, the potential customers for Tesla Inc. will comprise of buyers wanting the cheapest means of transport for moving from point A to point B, while at the same time considering the performance and looks of the vehicle and the specific features of the automobile, such as its environmental-friendliness. In this article, we will argue that although Tesla target market segmentation and price positioning is a huge potential source of revenue for Tesla, it is also an area which is likely to impact their mid to long growth plans if not handled correctly. Despite the huge potential in mass market electric cars, it will not be easy for Tesla Inc. to compete with already established petrol cars that market themselves on the basis of reliability, especially for the lowest-cost petrol cars. Tesla’s Threats. Taylor Wells helps businesses build world class pricing teams. Market segmentation is an extension of market research that seeks to identify targeted groups of consumers to tailor products and branding in a … The jaguar I-Pace appeals more to the average consumer, possibly gaining market share from Tesla in the market segment of individuals looking for a stylish, yet practical electric vehicle without unnecessary innovative technology. Tesla only really serves one target market. Thanks for helping me with the last 2 papers. We argued that Tesla leverages a data-driven target market segmentation process to develop a prestige pricing strategy based on psychological and monetary value drivers, as opposed to cost-based pricing. market share from Tesla’s Model S. Mercedes-Benz currently has one hybrid available, the S400 . Some industry researches are even claiming that the introduction of this model will end Tesla’s monopoly of the electric SUV market segmentation. However, EVs have been adopted in their fi rst 5 years at higher rates than Hybrids were in their infancy. rhs = rhs.replace(' ', ''); Their target market segmentation criteria include multiple variables: i.e., region, density, age, gender, life-cycle stage, occupation, loyalty, benefits sought, personality traits, social class, and lifestyle. They couldn’t set pricing based on capacity levels because they hadn’t sold any cars. Here are some facts, in 2017 the market size of electric cars was 118,864,5$ and in 2025 it will be 576,299.8 $ and China is the largest producer of electric cars. However, they pay close attention to understanding customer sub-group activity (or micro-segments) within this one market segment. Essentially, the potential customers with regard to the proposed strategic focus for Tesla Motors Inc. comprise of buyers who prefer affordable and compelling electric cars, which is contrary to the current high-end and expensive cars offered by Tesla. Marketing strategies used by Tesla are widely discussed as the company doesn’t spend much money on marketing. Au sein de Tesla, nous résolvons les problèmes les plus importants auxquels le monde doit faire face grâce à des personnes talentueuses qui partagent notre passion : changer le monde. Of all car Brands, Tesla has the highest customer loyalty thanks to great customer experience and service. The Model 3 searchers also skew male and Asian but bring in a younger demographic (35-44 years old) and slightly lower income ($50-100K) ‒ a testament to the lower, more appealing price point. Tesla didn’t know if people would buy their novelty products because they didn’t have enough data on demand. © 2020 Taylor Wells Pty Ltd. All Rights Reserved. Luckily 123helpme.org can help me. Segmentation of the target market is considered as an effective method that can be utilized in the identification of customers’ needs that are yet to be satisfied. TM’s Product/Brand strategy and Positioning Analysis TM’s product strategy Product life-cycle Positioning and Brand Strategy. } Tesla Dominates the U.S Electric Vehicle Sales According to Statista, Tesla model 3 is the most sold electric vehicle of 2019 with a sales number of 187,971. 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