Tesla Marketing Plan

Tesla Marketing Plan

Customer Analysis

In order for Tesla to be successful with its Model 3 launch, it has to identify and segment its target customer groups. However, before determining exactly which customer bases to pursue, Tesla must first weigh three key criteria concerning its customer groups:

• Substantiality involves the size of the target group, not just today, but also in the future. In the case of Tesla, this is a huge factor since it is planning on offering a high volume product and would obviously need a market for the Model 3 to exist. Fortunately, it does, and according to data compiled by Bloomberg Energy Finance, consumers of electric automobiles are expected to account for 35% of all automobile sales by 2040.

• Identifiability of a segment is a little trickier to gauge than its substantiality. This is about measuring the size of your target group. Having a general idea is fine, but concrete data is the only way to know with certainty that a market for your product exists. If you have an easily identifiable customer segment that you wish to target, then knowing how many people exist in such a segment is beneficial to ensuring that resources are allocated proportionally in the targeting of that particular segment.

• Accessibility of a segment describes how easy it is to target using various marketing mixes. For the average Model 3 consumer, accessibility should be very high since this is already an elite space. The average Model 3 consumer is probably educated, and connected to the internet, and so they should be easily reachable using a variety of marketing mixes.

In my previous report, I stated that Tesla had traditionally needed to market its automobiles to mainly upper middle class customers due in part to their steep price points. According to Bloomberg, buyers of Tesla vehicles make twice the U.S. average income. This changes for the Model 3, since at $35,000 the range of its customer’s incomes is going to be much larger. The range of age groups and ethnicities is also going to be larger. This means that Tesla cannot rely on traditional classes or groups of people when it comes to market segmentation. This however leaves room for Tesla to appeal to the more unique and personal needs of the potential buyers of the Model 3.

When looking at which groups to target, Tesla must look at what needs aim to filled. Based on the previous Tesla models, Tesla automobiles have acquired a status as premium, luxury vehicles due to the costs and features associated with owning them. Since purchasing a Tesla isn’t just specifically for the utility of owning a car, this loosely translates into the majority of Tesla purchases being seen as a psychological need, versus a functional one.

In order to most efficiently attract new customers for the Model 3, without damaging the Tesla brand, Tesla should use a concentrated targeting strategy instead of a multisegment targeting strategy. I believe instead of splitting up Model 3 consumers from other more expensive Tesla vehicles using price point, Tesla should instead focus on emphasizing that it offers the best electric driving experience, no matter what model you choose.