Tesla Motors retail experience is unique because it
owns and manages every stage of its business model, from concept to design to
manufacturing and sales. Unlike the rest of the auto industry, Tesla sells its
Model S directly to customers, also known as a direct channel, bypassing
franchised dealer networks.
“Our technology is different, our car is different, and, as
a result, our stores are intentionally different.”
Elon Musk Tesla Chairman, Product
Architect & CEO
I
decided to go into one of Tesla Motors retail stores (511 W 25th St, New York,
NY 10001) to research and view the current retailing mix.
Overall, going inside the store was a good experience for me in learning the retailing aspect of marketing. The only problem with this store I visited was the lack of sales personnel (only one sales person at that time) and I waited for 45 minutes before the salesperson arrived from his lunch break.
Retailing mix:
Product:
The Model S has excellent handling, is very quiet, spacious, and safe.
- Highest safety rating in America
- Autopilot equipped
- Available All-Wheel Drive Dual Motor
- Zero to 60 mph in as little as 3.2 seconds
- Up to 270 miles range (EPA)
Tesla sells their cars in their own stores and online.
They currently have about 41 stores and galleries. Tesla opened its stores in
high traffic retail locations.
Price:
I.E.
60 kWh Battery option is available at $71,070 - $7,500 Federal Tax Credit
State incentives available in CA, CO, GA, IL, LA, MA, UT.
Promotion:
Tesla uses social media as their sole promotion
technique and test drives.
Personnel:
At a Tesla store, their goal for its employees is to educate, not to use aggressive sales tactics. There are no commissioned sales people.
Presentation:
Tesla Motors retail stores are similar to the layout as an apple store. The retail stores have one or few floor models for customers to view. The stores layout engages the customer through a series of hands-on interactive touchscreen experiences.
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