Ch. 4 - The Marketing Environment

Tesla Motors Model S delivers luxury to the upper middle class to upper class, who want luxury and the added benefit of not paying for gas. Also, for the environmental conservative drivers. Demographic: 35+ years old, business owners, managers and officials.

 2014 Tesla Model S MSRP: From $69,900

In order to expand bigger, Tesla Motors has their eyes set on eco friendly consumers, tech savvy and entry level luxury car consumers ranging from mid 20’s to early 40’s, and middle working class. By lowing the price of it's vehicles starting from $30,000, more consumers will buy.

 

Would you buy a Tesla Motors electric car for $35,000? Tesla Motors sure hopes so.

Ch. 3 - Ethics & Social Responsibility

The main goal of businesses is to make profits. But in order for a company to be profitable it must have a commitment to the continual improvement of the safety of its products. Also, where safety comes first before profits.

There has been many media reports saying how the Model S is dangerous to anyone driving it. Also, how electric vehicles pose greater threat because the battery packs create lithium-ion chemical fire risks. No car is perfect but the media is overhyping the Model S fires. Tesla has made some changes by increased the warranty to cover any incident of battery fire, even if caused by driver error; has increased the speed in which the Model S lowers itself 1 inch for aerodynamic purposes. Model S is one of just a few cars to have ever achieved a 5-star safety rating from both Euro NCAP and the U.S. National Highway Traffic Safety Administration (NHTSA).

Besides safety, Tesla Motors is concern about the impact on the environment. The Model S has zero tailpipe emissions compared to other Internal Combustion Engine cars. The choice is clear.

Ch. 2 - Strategic Planning for Competitive Advantage

Lets go back in time to 1884, the picture below shows what may be the world’s first electric car built by inventor Thomas Parker (He is in the light suit in the front of the car).

                                           
Now lets come back to the present, the picture below shows the Tesla Model S, the newest full-sized electric five-door, luxury car.

The advancement in technology has led to more electric and hybrid vehicles on the road. Consumers have much more options to choose from. The BMW i8 and Cadillac ELR are two Tesla Model S competitors, neither is fully electric, and they get 22 and 35 miles per charge, before switching to their gasoline engine. The two competitors are a joke. You choose, fully electric or not?

The goal of the company is to make and sell the very best electric automobile in the world. You can’t compete with the Tesla Model S alone, Tesla did not just design a car, they designed a new way to manufacture it, sell it, and support it. During 2013, Tesla Model S was the top selling large luxury car in America and I believe that in the near future they will dominate the luxury car marketplace. Tesla Motors have the competition advantage because they are the first "mass market" large electric luxury car. Luxury comes with a price tag but in the long run customers saving on gas and maintenance costs. Model S is one of just a few cars to have ever achieved a 5-star safety rating from both Euro NCAP and the U.S. National Highway Traffic Safety Administration (NHTSA). CEO (Elon Musk) and his team of talent individuals on the way to achieving that goal and selling many more electric vehicles.

Ch. 1 - Overview of Marketing (Brief History and Mission Statement)

Tesla Motors was founded in 2003 by a group of engineers in Silicon Valley who wanted to prove that electric cars could be better than gasoline-powered cars. With instant torque, incredible power, and zero emissions, Tesla’s products would be cars without compromise. Each new generation would be increasingly affordable, helping the company work towards its mission.

Our vision is to create the most compelling car company of the 21st century by driving the world’s transition to electric vehicles. Mission Statement: Our mission is not the safety of our vehicles, which can be easily replaced, but for the safety of our customers and the families they entrust to our cars and to accelerate the world’s transition to electric mobility with a full range of increasingly affordable electric cars for all consumers.