MRKT 310 Tesla Model 3 Marketing
Order ID 53563633773 Type Essay Writer Level Masters Style APA Sources/References 4 Perfect Number of Pages to Order 5-10 Pages Description/Paper Instructions
Tesla Model 3 Marketing
Tesla Model 3 is the fourth Tesla model, positioned by the manufacturer as the most affordable model. Tesla managers assert that the introduction of this model does not mean that the company wants to abandon its premium status in the electric car market. On the contrary, it is an attempt to provide people with an opportunity to become acquainted with the company’s products. Although this model focuses on the target segment with an average income, the company managed to produce a car that meets all the quality and design requirements of Tesla.
Creating Customer Value
Creation of customer value is the most significant and crucial part of every business. Tesla, for instance, realizes that the success of its Model 3 depends on this factor. In this regard, the aim of Tesla is to make customers believe that they receive more benefits when buying a model for a more reasonable price (Oberoi, 2015). Thus, the fist method of creating customer value is offering a price that makes the customers believe they pay for the best quality in the market (Treacy & Wiercema, 1997). The price for the new Model 3 is US$ 35,000. Therefore, it is merchandized at a rather affordable price compared to other Tesla models.
The next step in creating customer value is to ensure convenience of buying process, which is achieved by offering the customers different methods of payments and opportunities for deferred payment purchase. It helps the company to sell more items, while providing the customers with the chance to obtain a product of a famous brand (Oberoi, 2015). Another step in creating customer value is the provision of the supercharger network for Tesla cars. The company has established its network of Supercharger stations, where the customers are able to charge any model of Tesla vehicle for 30 minutes for free (Oberoi, 2015). Thus, the clients may save money on charging when they purchase Tesla Model 3.
Role of the Customer in the Company’s Strategic Plan
Tesla focuses on the interests of its customers by providing sustainable and affordable products, thus offering its customers to make their contribution into the sustainable future. The company’s mission states: “to accelerate the advent of sustainable transport by bringing compelling mass-market electric cars to market as soon as possible” (Musk, 2013). In other words, Tesla’s main mission is to speed up the transition toward the global use of sustainable energy, and the company encourages its clients to support this idea by buying Tesla vehicles. However, the company’s commitment to customer focus is rather weak, because Tesla is mainly oriented on the creation of products that can revolutionize the automobile market. Therefore, more emphasis should be placed on the desires and contribution of customers with various social statuses and levels of income. Market research is required to determine the preferences of the target audience to further incorporate them in the mission of the company (Kotler & Armstrong, 2017). The new mission of Tesla may be oriented on the positive experience of customers in contributing to sustainable future of the planet by using Tesla cars, available to all categories of customers. Currently, however, Tesla cars are affordable to wealthy customers, while the needs of lower and middle-income buyers are addressed rather poorly.
The company’s vision statement does not reflect the company’s commitment to clients as well. It asserts: “to create the most compelling car company of the 21st century by driving the world’s transition to electric vehicles” (Rowland, 2018). Judging from this statement, Tesla demonstrates insufficient customer focus, since the company does not consider customer’s interests and desires in the process of designing and manufacturing cars. However, the most significant advantage the company provides is the implementation of direct sales instead of licensing cars through independent dealerships, which enables the company to maintain stable prices (Kaemingk, 2018).
SWOT Analysis for Tesla Model 3
Strength: Stable control over production processes. It is based on vertical integration, centralization, and hierarchy of Tesla’s organizational structure (Chen, Kim & Yamaguchi, 2014). The company produces automobiles and components, thus the involvement of the third parties is minimized. The implication is that Tesla may open more factories in different regions to reduce the cost of raw materials delivery.
Weakness: Limited market presence. Most of Tesla’s revenues are generated in the United States (Chen et al., 2014). It has small presence in developing markets and China. This internal strategic factor limits business growth. The implication for Tesla is the expansion in overseas markets with active economic development, such as Asian markets.
Opportunity: Diversification of business.
Tesla’s performance can be improved through diversification. For example, this external strategic factor may include the establishment or acquisition of new businesses to decrease business risks in the market.
Threat: Fluctuations in raw materials prices.
This threat occurs due to the fluctuations and increased costs of lithium and other raw materials used in energy storage products, on which the company focuses (Chen et al., 2014). This threat may be addressed through the expansion of the supply chain to obtain multiple suppliers with different prices to choose from.
Competitive Analysis
The competitive analysis demonstrates that the major competitors of Tesla Model 3 are BMW i3 and Ford Focus Electric. The comparison is based on three major criteria that guide the customers in their buying decisions (Reinartz & Kumar, 2003). These criteria are mainly the price, accumulator capacity, and service maintenance availability. As for the price, Tesla Model 3 is in medium position, as its price (US$ 35,000) is higher than the price of Ford Focus Electric (US$ 27,000), yet lower than BMW i3 (US$ 44,500). The accumulator capacity is highest in Tesla Model 3 (50 kwH), compared to the BMW i3 (37,9-42,2 kwH) and Ford Focus (23-33,5 kwH) properties. Finally, the last criteria is the availability of service maintenance throughout the country. In this regard, all the three models have the highest level of competition, because the service maintenance stations and recharging stations are located in various states and along major roads connecting the cities. Everything considered, Tesla has the most advantageous position among the competitors, as it has the most successful technical characteristics, based on the main three parameters that affect buyers’ decision-making. Thus, Tesla Model 3 is leading in terms of accumulator capacity and maintenance availability, compared to its major competitors in the US market.
Customer Empowerment
Tesla realizes that positive customer empowerment is possible when customers are provided with necessary information and tools on which they base their buying decision. By providing customers with options and resources, Tesla ensures better buying experience and enables users to define for themselves what kind of brand experience they want to receive when using Tesla Model 3 (Acar & Puntoni, 2016). The first means of customer empowerment is the feedback and control that Tesla employs in the process of car manufacturing and use of Tesla Model 3 by the customers. The system of feedbacks and customers’ recommendations and propositions available on Tesla’s website make customers a part of Tesla marketing campaign. The established network of recharging stations enables the company to control the work of Model 3 through communication with clients who use the station. These marketing campaign strategies ensure great customer loyalty (Souki & Filho, 2008). As a result, Tesla has the most loyal customers with general satisfaction rates at 90% (Morgan, 2019). Thus, the company stays in contact with its customers and is aware of the customers’ experience and their feedback.
Another way to empower customers is the use of social networks. Tesla uses its popular blog site and such social media channels as Twitter and Facebook to unite customers and fans of the company through sharing the news and technical information. The blog is the way to obtain customers’ feedback and opinions about Model 3 to consider them for potential improvements. It also creates the buzz marketing, with the help of which the customers deliver their messages and recommendations to the general audience, creating additional promotion for Model 3. Thus, the customers have a positive experience, as they feel that their opinions are valuable for Tesla.
Customers’ Satisfaction
Tesla is paying close attention to customers’ satisfaction, and it employs several methods to control the level of customers’ experience and satisfaction. One of the methods is survey conduction, wherein the customers are offered to identify the strongest and the weakest points of Tesla Model 3. Customers are asked to share their negative experience and report the basic technical issues of Model 3. Besides, Tesla publishes customers’ complaints in its consumer reports, where the users are entitled to share their opinion about possible improvements. As a result, the Model 3 outdid Consumer Reports’ 2019 owner satisfaction ranking and was awarded with “Recommended Buy” rating in 2018, when Tesla released a software update after the customers had complained about the braking distance issues (Matousek, 2019). Thus, customer satisfaction is thoroughly addressed at Tesla.
Customer Relationship Management
Although the main mission of Tesla is to revolutionize the use of sustainable energy, Tesla realizes that the company can meet its goals with the help of an effective CRM strategy. Customer relationship management (CRM) strategy is Tesla’s plan to use its relations with customers to increase sales and improve customer service (Valentin, 2019). CRM of Tesla Model 3 includes an overall business strategy with input from sales of the model, marketing, and customer service, defining all potential issues that may occur in the customer’s experience after the purchase of Model 3 (Valentin, 2019). One of the CRM strategies used by Tesla in regard to Model 3 is the use of Salesforce to record information about interactions with current customers and potential customers, as well as to monitor complaints about the Model 3 operation to improve customer service. There is no division between top tier and low tier customers, depending on the model and price of the vehicle bought by the customer. Thus, Tesla ensures that Model 3 provides positive user experience to its customers.
Customer Privacy
The company’s website contains information about the privacy issues related to all models of Tesla. The data about Tesla Model 3 is stored on the company’s website. The data include the information about test drives, crashes, technical issues, and quality problems. The company collects personal information of Model 3 users to implement it in composing the newsletters that are then distributed among the Tesla Model 3 users. The information about Model 3 users is utilized in communication with customers, helps enhance the company’s products and services, and improves the development of its products and services (Tesla, n.d.). Although there is no information about the remedy to be applied in case of the violation of customers’ privacy, it is indicated that any violations are being settled in accordance with the current legislation of the state. Therefore, Model 3 information and data on its use are collected to be implemented in the process of improvement of the company’s work.
According to the list of policies provided on the company’s website, the privacy of customers is Tesla’s main concern. The company realizes its responsibility for the privacy violations and is ready to become accountable for any breaches. In order to identify the major aspects of privacy, the website suggests basic privacy components for customers to understand what information they can protect. Thus, Tesla is free to discuss privacy concerns and accept its accountability even in cases not indicated on the website.
References
Acar, O. A. & Puntoni, S. (2016). Customer empowerment in the digital age. Journal of Advertising Research, 56(1), 4-8. https://doi.org/10.2501/JAR-2016-007
Chen, W. M., Kim, H., & Yamaguchi, H. (2014). Renewable energy in eastern Asia: Renewable energy policy review and comparative SWOT analysis for promoting renewable energy in Japan, South Korea, and Taiwan. Energy Policy, 74, 319-329. https://doi.org/10.1016/j.enpol.2014.08.019
Kaemingk, D. (2018, August 28). How Tesla drives top customer experiences. Qualtrics. https://www.qualtrics.com/blog/tesla-customer-experience/
Kotler, P., & Armstrong, G. (2017). Principles of marketing (17th edition). Pearson.
Matousek, M. (2019, February 20). Tesla owners are more satisfied than any other auto brand’s, according to Consumer Reports. Business Insider. https://www.businessinsider.com/tesla-tops-consumer-reports-owner-satisfaction-list-2019-2
Morgan, B. (2019). 10 customer experience lessons from Tesla. Forbes. https://www.forbes.com/sites/blakemorgan/2019/02/06/10-customer-experience-lessons-from-tesla/#6724cff36347
Musk, E. (2013, November 18). The mission of Tesla. Tesla. https://www.tesla.com/blog/mission-tesla
Oberoi, M. (2015, August 31). What value proposition does Tesla offer its customers? Marketlist. https://marketrealist.com/2015/08/value-proposition-tesla-offer-customers/
Reinartz, W. J., & Kumar, V. (2003). The impact of customer relationship characteristics on profitable lifetime duration. Journal of Marketing, 67(1), 77–96. https://doi.org/10.1509/jmkg.67.1.77.18589
Rowland, C. (2018, August 27). Tesla, Inc.’s mission statement & vision statement (An analysis). Panmore Institute. http://panmore.com/tesla-motors-inc-vision-statement-mission-statement-analysis
Souki, G., & Filho, C. G. (2008). Perceived quality, satisfaction and customer loyalty: An empirical study in the mobile phones sector in Brazil. International Journal of Internet and Enterprise Management, 5(4), 298-314. https://doi.org/10.1504/IJIEM.2008.020103
Tesla (n.d.). Legal. https://www.tesla.com/about/legal#choice-transparency
Treacy, M., & Wiersema, F. (1997). The discipline of market leaders: Choose your customers, narrow your focus: Dominate your market. Addison-Wesley.
Valentin, M. (2019). The Tesla way: The disruptive strategies and models of Teslism. Kogan Page Publishers
RUBRIC
QUALITY OF RESPONSE NO RESPONSE POOR / UNSATISFACTORY SATISFACTORY GOOD EXCELLENT Content (worth a maximum of 50% of the total points) Zero points: Student failed to submit the final paper. 20 points out of 50: The essay illustrates poor understanding of the relevant material by failing to address or incorrectly addressing the relevant content; failing to identify or inaccurately explaining/defining key concepts/ideas; ignoring or incorrectly explaining key points/claims and the reasoning behind them; and/or incorrectly or inappropriately using terminology; and elements of the response are lacking. 30 points out of 50: The essay illustrates a rudimentary understanding of the relevant material by mentioning but not full explaining the relevant content; identifying some of the key concepts/ideas though failing to fully or accurately explain many of them; using terminology, though sometimes inaccurately or inappropriately; and/or incorporating some key claims/points but failing to explain the reasoning behind them or doing so inaccurately. Elements of the required response may also be lacking. 40 points out of 50: The essay illustrates solid understanding of the relevant material by correctly addressing most of the relevant content; identifying and explaining most of the key concepts/ideas; using correct terminology; explaining the reasoning behind most of the key points/claims; and/or where necessary or useful, substantiating some points with accurate examples. The answer is complete. 50 points: The essay illustrates exemplary understanding of the relevant material by thoroughly and correctly addressing the relevant content; identifying and explaining all of the key concepts/ideas; using correct terminology explaining the reasoning behind key points/claims and substantiating, as necessary/useful, points with several accurate and illuminating examples. No aspects of the required answer are missing. Use of Sources (worth a maximum of 20% of the total points). Zero points: Student failed to include citations and/or references. Or the student failed to submit a final paper. 5 out 20 points: Sources are seldom cited to support statements and/or format of citations are not recognizable as APA 6th Edition format. There are major errors in the formation of the references and citations. And/or there is a major reliance on highly questionable. The Student fails to provide an adequate synthesis of research collected for the paper. 10 out 20 points: References to scholarly sources are occasionally given; many statements seem unsubstantiated. Frequent errors in APA 6th Edition format, leaving the reader confused about the source of the information. There are significant errors of the formation in the references and citations. And/or there is a significant use of highly questionable sources. 15 out 20 points: Credible Scholarly sources are used effectively support claims and are, for the most part, clear and fairly represented. APA 6th Edition is used with only a few minor errors. There are minor errors in reference and/or citations. And/or there is some use of questionable sources. 20 points: Credible scholarly sources are used to give compelling evidence to support claims and are clearly and fairly represented. APA 6th Edition format is used accurately and consistently. The student uses above the maximum required references in the development of the assignment. Grammar (worth maximum of 20% of total points) Zero points: Student failed to submit the final paper. 5 points out of 20: The paper does not communicate ideas/points clearly due to inappropriate use of terminology and vague language; thoughts and sentences are disjointed or incomprehensible; organization lacking; and/or numerous grammatical, spelling/punctuation errors 10 points out 20: The paper is often unclear and difficult to follow due to some inappropriate terminology and/or vague language; ideas may be fragmented, wandering and/or repetitive; poor organization; and/or some grammatical, spelling, punctuation errors 15 points out of 20: The paper is mostly clear as a result of appropriate use of terminology and minimal vagueness; no tangents and no repetition; fairly good organization; almost perfect grammar, spelling, punctuation, and word usage. 20 points: The paper is clear, concise, and a pleasure to read as a result of appropriate and precise use of terminology; total coherence of thoughts and presentation and logical organization; and the essay is error free. Structure of the Paper (worth 10% of total points) Zero points: Student failed to submit the final paper. 3 points out of 10: Student needs to develop better formatting skills. The paper omits significant structural elements required for and APA 6th edition paper. Formatting of the paper has major flaws. The paper does not conform to APA 6th edition requirements whatsoever. 5 points out of 10: Appearance of final paper demonstrates the student’s limited ability to format the paper. There are significant errors in formatting and/or the total omission of major components of an APA 6th edition paper. They can include the omission of the cover page, abstract, and page numbers. Additionally the page has major formatting issues with spacing or paragraph formation. Font size might not conform to size requirements. The student also significantly writes too large or too short of and paper 7 points out of 10: Research paper presents an above-average use of formatting skills. The paper has slight errors within the paper. This can include small errors or omissions with the cover page, abstract, page number, and headers. There could be also slight formatting issues with the document spacing or the font Additionally the paper might slightly exceed or undershoot the specific number of required written pages for the assignment. 10 points: Student provides a high-caliber, formatted paper. This includes an APA 6th edition cover page, abstract, page number, headers and is double spaced in 12’ Times Roman Font. Additionally, the paper conforms to the specific number of required written pages and neither goes over or under the specified length of the paper. GET THIS PROJECT NOW BY CLICKING ON THIS LINK TO PLACE THE ORDER
CLICK ON THE LINK HERE: https://www.perfectacademic.com/orders/ordernow
Do You Have Any Other Essay/Assignment/Class Project/Homework Related to this? Click Here Now [CLICK ME] and Have It Done by Our PhD Qualified Writers!!