Tesla Motors - New Product Launch Marketing Plan

Tesla - New Product Launch, Part 1

Helga Agostini, Michael Espinoza, Selma Odoom, Breanna Oliver

MKT/571

April 12, 2016

Jo-Jan Hardesty

New Product Launch Marketing Plan

Tesla Motors was inspired by engineers who wanted to prove that electric cars may be a better option than gasoline-powered vehicles. In 2012, we launched the world’s first premium electric sedan with room for seven passengers, Model S. Then came, Model X in 2015, which featured falcon wing doors, and room for three rows of seating. Both of these cars are expensive for the average American to own, but the plan is to evolve into producing more affordable electric vehicles (Tesla Motors, 2016).

Definition and Description of Tesla Model 3

Tesla Model 3 is the newest model with production set to begin in late 2017. The car is a 100 percent electric car which has received over 325,000 reservations during its launching, that is, about $14 billion in implied future sales. Tesla Model 3 is our most affordable car yet starting at $35,000 before any incentives. It is has a supercharging feature, and it is designed to achieve 215 miles of range per charge. The car can accelerate from zero to 60 mph under six seconds. It has seating for five adults and with autopilot hardware. This model is also designed to achieve a 5-start safety rating in every category. It is built with instant torque, incredible power, and zero emissions. The car can be charged at home and on the road by our supercharger network for long distances.  The car will feature the Tesla version 7.0 software that takes autopilot to another level. It relieves the driver of most of the tedious and potentially dangerous aspects of road travel. It uses four feedback modules: camera, radar, ultrasonic and GPS. This will allow the vehicle to steer within a lane, change lanes, manage speed, scan for parking, park itself, open garage, shutdown, etc. The driver, however, is still responsible, and has control of the car (Tesla Motors, 2016).

Market Needs

Transportation is one of the largest contributors to air pollution and man-made global warming. The “Environmental Protection Agency (EPA) estimates that the average passenger vehicle produces approximately five tons of carbon dioxide (CO2) annually, which is thought to contribute significantly to the greenhouse effect” (Demand Media, 2016, para. 1). Due to the adverse effects of its gasoline-powered counterpart, the market will be responsive to this product. First of all, electric cars are easier and less complicated to use than gas powered vehicles.  Gasoline-powered cars have adverse effects on the environment and may lead to climate change. Gasoline itself can pose a threat to human health when it contaminates water or soils, and when inhaled. Its dependency on fossil fuels is causing the earth to run low on them. Gasoline has proven to have a lot of negative political implications.  Even though electric cars a more expensive than gasoline-powered cars, they offer a lower maintenance cost. According to the U.S. Department of Energy, electric vehicles produce zero tailpipe emissions or air pollutants, which makes electric vehicles the better choice for the environment (Demand Media, 2016).  They are also more energy efficient than gasoline-powered cars.  These reasons have caused the demand for electric vehicles to grow. Tesla Model 3 will make is easier for individuals who are price conscious to own an electric car. The US Government also gives incentives for being alert to the environment when you purchase an electric car. The world is ready and gradually moving towards choices that will be best for them, and generations to come, and Tesla Motors is one of those options.