Chapter 14 Marketing Channels and Retailling

                 Tesla Motors uses a direct channel where producers sell directly to consumers. Tesla does not use any agents or brokers. which means there is no middle man.  Tesla Motors is an exclusive distributor, you can only buy a Model S straight from Tesla. The majority of states in the United States prohibits them to do so. .They are an independent retailer there is no chain and a person cannot own a part of their franchise. Tesla's marketing channels first consist of them marketing the car through the use of internet, showrooms and informative salespersons, and galleries. A person decides to buy a tesla then is able to customize the care the ay he/she wants it. last The Model S will be shipped to the person. Tesla motors has a cooperative relationship with the Tesla managed company SolarCity. SolarCity and Tesla works hand in hand by giving you an option to install solar panels to your Model S in order to save energy and money in the long run. tesla also deals with Toyota because they have a $50 million interest in Tesla. Tesla has a arms length relationship with Panasonic for them to produce Model S batteries for the time being. To my knowledge Tesla is the only auto dealers who use this method of direct sales but I know the way it is looking they are influencing other car makers to do the same.

 

 

Chapter 6 Consumer Decision making

In a Car company the consumers decision of buying a car is based on specific needs and wants, how it touches the senses, what persuades them to buy, their personality, lifestyle, and physicological factors. Since Tesla is marketing to the upper middle class green friendly baby boomer target market, the green friendly standard is met because the car has zero emission and is not harming the environment. This target market is most likely hard working, smar,t and feeling like they deserve something nice. The Model S is appealing to the eye, its quiet and FAST. People already know that its a electric car that looks good by now, but electric cars h a bad reputation in the sense of proformance, until now. I aveposted a Video that shows the electric vehicle proforming as it beats the high end sport car BMW M5 in a drag race. a person will learn alot about Tesla frome someone like me that is always talking about this car and the comapany. When you see the car at a showroom or on a test drive it speaks for its self in the sense of marketing. In a showroom there will a salesperson who knows everything about the car and the compant that will try to convince you on why a person should purchase this vehicle. The company markets mainly how much its going to save you in the long run, its proformance, how its safe for the environment, saftey, and how appealing it is. This car is an alternative to the sporty internal combustion vehicles because it matches them in all catorgories of proformance and saftey. When consumers are adopting the Electric car coulture It takes some time for a consumer to make the decision because it is an alternative and not traditonal. Some frequently asked questions are; how far can i go?, how long does charging take?, how is energy generated?, how much can i save ?. This car is kinda young in the industry so will take a while to go through the socialization process.

 

MODEL S BEATS M5 IN DRAG RACE    

Chapter 5. Developing a Global Vision

Model S is Norway's best selling car. It is currently being sold in North America, Europe, and soon Asia. European deliveries began last summer in july. Model S is being sold in other countries the same way it is sold in North America through company owned showrooms and dealers, and online. The Model S ranked as the top selling plug-in electric car in North America during the first quarter of 2013 with 4,900 cars sold, ahead of the Chevrolet Volt (4,421) and the Nissan Leaf (3,695). Model S has won several awards and recognitions like the 2013 World Green Car of the Year, 2013 Motor Trend Car of the Year, Automobile Magazine's 2013 Car of the Year, Time Magazine Best 25 Inventions of the Year 2012 award, Consumer Reports' top-scoring car ever, and the National Highway Traffic Safety Administration NHTSA top ranked 5 star safety rating. Tesla's first showroom in mainland China, scheduled to open later this year, will be in central Beijing at the Parkview Green mall. (Beijing's equivalent of Rodeo Drive)

China is the largest auto market in the world so, tesla must be exited on pushing sales there. analysis say china is big on luxury cars so they will market the Model S in China as a luxurious car that happens to be electric. Air pollution is a big problem in China, and the government is a strong supporter of electric vehicles. "Tesla will sell successfully in China because it is a very high quality and well engineered automobile, a luxury brand and it is foreign made," said Charlie Paglee, CEO of Brannan Auto Engineering in Shanghai. "I think we will see probably at least 10,000 units a year from demand in Europe, and then at least 5,000 in Asia," said Musk during the May 8 earnings call.  Tesla also states that,  if demand in Europe and Asia meets projections, the company could sell 40,000 Model S cars annually by next year. Tesla may even change the name of the company within china to Tuosule to avoid a trademark troll. Kingston Chang who worked at Bentley China for a decade will be Chinas general manager for Tesla. "Mr. Chang will help Tesla navigate its entrance into the Asian market," said analyst Andrea James. Tesla has competition globally just like any other car company. For example In Germany the main car company their is Volkswagen and they don't have a EV so it will be hard to have many opportunities in Germany, due to the politically powerful automobile company. Since model S is going global it has a Tesla Club online where owners of the Model S all over the world can post blogs and forums about the car asking questions an informing. in every country their taxes and laws are different so Tesla has different approaches in each region of the world. The Tesla website states, " Tax incentives are complicated and subject to change without notice. While Tesla does its best to keep this information up-to-date, it cannot guarantee the current accuracy. Tesla recommends consulting a tax professional to validate incentive availability and eligibility."

 

Chapter. 4 The marketing Environment

Tesla Motors manufacturing headquarters is located in Palo Alto California. Governor Schwarzenegger supports a manufacturing future for Tesla cars in California. The Governor expresses his feelings about the company by saying,  “Today’s announcement is incredible news for California’s economy and its environment. If California was a baseball team this would be like winning the first round draft pick and recruiting a player who is a perfect fit on our roster because Tesla Motors and its all-electric cars belong in California,”. the state has given Tesla a $10 million. grant and is also eligible for $1 million in Employment Training Panel Workforce Development Funds to train employees. The state is clearly big on green marketing and improving the environment. According to Examiner.com The company Tesla Motors is marketing Model S to upper middle class green-friendly 'Baby Boomer' generation. Tesla has internal strengths like having the 1st fully electric sports car, they have the ability to manufacture vehicles in house, and they have Strong technological expertise in the area of electric transmissions & drive train. their main weaknesses are their ability to produce enough money to achieve production goals, and their prices compared to competitors who used gas driven cars. Tesla has the support of the governments across the globe in the sense of going green to help the environment. Tesla motors is competing against very wealthy and politically powerful auto dealers. Forty-eight states forbid Tesla to sell cars directly to consumers. The company charges a single flat price for its cars, but couldn’t if middlemen got involved. independent automobile dealers are fighting furiously to keep Tesla out of their backyards.  “Tesla believes it should be allowed to sell cars without licensed dealers. This can’t be,” wrote Gerard Murphy in The Washington Post. Murphy is president of the Washington Area New Auto Dealers Association. “If Tesla won’t have a dealer network, it doesn’t belong in the automobile business.” Tesla motors is also competing with a technology that has been used for hundreds of years and it may take a long time to switch peoples tradition unless it becomes illegal to drive gas powered cars. the concept and technology for the electric car has been around for a large number of years and the mainstream electric car is still far from a reality.

 according to Prof. Evens if we ran out of gas today the they have enough money to have a charging station everywhere that there is a gas station!.

Ze’ev Drori, President and CEO of Tesla Motors, remarked, “Tesla has achieved an extraordinary accomplishment. We are the only automobile company today delivering full performance battery-electric vehicles to our customers. Make no mistake - we are not a niche player with a car only for the rich and famous. As our agreement with the state so clearly demonstrates, we are building a high volume ZERO EMISSION VEHICLE, manufactured in California for mid-range family use. And we aren’t going to stop there. We will continue on and build even more affordable cars. You are witnessing the debut of a new car company, a company unlike all others, a company with a disruptive technology, a company dedicated for the exclusive production of Zero Emission Vehicles.”  

Chapter 3 Ethics & Social Responsibilty

Tesla Motors says if you want zero emissions switch to electric vehicles that can be powered from a hundred percent renewable energy. An electric car is far more efficient than a gasoline car, the amount of pollution generated by producing the electricity to drive an EV a given distance is much less. Many Tesla motors have already installed solar panels this helps reduce dependence on foreign oil. Their Vehicles Batteries and tires are  safely recycled by the company and the cost of recycling is built into the purchase price of the car, so there‘s never a reason “why not” to recycle.". the company says that they are trying to create the worlds best service and warranty program for costumers. they have a unconditional warranty for Model S battery, even for user error. costumers have the option to take home the more expensive sports car, the tesla roadster while their car is in the shop for service, free of charge. "our goal is not just to fix things, but to make the car better than it was." The company says it ensures that it respects human rights and that its suppliers do not use slave labor or engage in human trafficking. the website states, "Tesla does not, and will not, tolerate the use of slave labor in the manufacture of its products and does not, and will not, accept products or services from suppliers that engage in human trafficking in any form. Human trafficking and slavery are crimes under state, federal and international law. These crimes exist in countries throughout the world." Tesla suppliers ensure that their operations and the products and services comply with all national and all applicable laws and regulations".  Their are many laws against them and are stoping them from doing business but they are still fighting. the company gives back to society by offering Jobs and internships to students. Tesla states, " If you are a builder and a creative problem solver then this is the place for you! ". Tesla's Social responsibility statement is, “It probably comes as no surprise that a forward-thinking company like Tesla Motors thinks a lot about the future. We do.”   There site has some more information on frequently asked questions about ethical issues, recycling and, social responsibility.

 

http://www.teslamotors.com/about/legal#human-rights

The Link Above is Tesla's page to : Human Rights and Conflict Minerals Policy

 

 

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Chapter 2 : Strategic Planning for a competitive advantage

the company states, "We believe our operational infrastructure provides us with a competitive advantage compared to traditional automobile manufacturers." Tesla motors is informing consumers by the masses about electric cars and their company being the first to manufacture fully electric car. Tesla Motors uses proprietary technology, world-class design and state-of-the-art manufacturing processes to create a new generation of highway capable electric vehicles. There website and company own dealerships and showrooms are attracting new customers everyday. They are a fairly new company to the automobile market and are adapting to a market that is constantly changing. One of Tesla's stated goals is to increase the number and variety of Electronic Vehicles available to mainstream consumers in three ways: Tesla sells its own vehicles in a growing number of company owned showrooms and online; it sells patented electric power train components to other automakers. Toyota and Daimler AG, teamed up with Tesla to help develop batteries for their electric cars, and both invested in Tesla. I visited a showroom in Roosevelt field mall and they have a employee there that tells you all about the car and why you should purchase it. According to the sales representative they have sold 4,750 units of the Model S in 2013. Tesla employs under 3,000 people and for it to deliver 4,750 sedans is impressive. Model S even outsold similarly priced luxury BMW and Mercedes models in the first quarter. Tesla is marketing to upper middle class green friendly baby boomer generation. Model S is fashionable, environmentally safe, and looks better than the Prius. Elon Musk chairman, architect and CEO of Tesla has been a major factor in the company's strategic planning, including the design, engineering and manufacturing of more and more affordable electric vehicles. Right now these cars are pretty expensive and new. Elon has a plan to make it affordable to an average family. His plan is to enter the market at the high end where people are willing to pay the premium and when someone buys the Tesla Model S, they are actually helping pay for development of the low cost family car. the mission statement for Tesla is , "Tesla’s goal is to accelerate the world’s transition to electric mobility with a full range of increasingly affordable electric cars. We're catalyzing change in the industry. Tesla vehicles and EVs powered by Tesla are fun to drive and environmentally responsible."  

http://www.teslamotors.com/blog/secret-tesla-motors-master-plan-just-between-you-and-me

Overview of Tesla Motors Model S

 Model S

Tesla motors was founded in 2003 by Elon musk and Martin Eberhard, they have been building a relationship with customers ever since. their first production car was the Tesla Roadster and now they've made the Model S.  Elon Musk took an active role within the Company and invested $7.5 million dollars with his personal funds to start up the company. in January 2010 they received a $465 million loan from the Energy Department and they received a third of that from private investors. the company was named after Nikon Tesla an American electrical engineer physicist and inventor. Tesla produces an effective and efficient alternative to gas driven vehicles. they manufacture and sell Sporty looking, environmentally safe, fully electric powered cars with zero emissions by using automobile power train technology. The charging of the vehicle is simple you can charge the car anywhere there is an outlet. if you leave the car in the garage over night plugged in it will be ready for you in the morning. A fully charged Tesla can go up to 300 miles. Depending on how far you will travel a day the charging time varies. Lets say you drive 30 miles everyday it will take 5 hours to charge your vehicle for those miles on a standard wall outlet. .The Company insists that you install a super powered wall connector before the vehicle is delivered through their partners Solar City. it will only take 30 minutes with a super powered wall connector to charge the Tesla for 30 miles. on average it will only cost about $10 to fully charge a Tesla that will take you 300 miles. Model S has something called battery swap, exchanging your battery for a fully charged battery in less than half the time it takes to refill a gas tank. This offers Model S drivers another, even faster option when recharging. They have there own free charging stations that are located near amenities like roadside diners, cafes, and shopping centers. Road trippers can stop for a quick meal and have their Model S charged when they’re done. Compared to a vehicle like the BMW 535i, Model S will save its owners approximately $8,000 over five years in fuel costs alone.

 "Tesla Motors cars combine style, acceleration, and handling with advanced technologies that make them among the quickest and the most energy-efficient cars on the road." Basically Tesla motors is trying to be swift in making the world switch from a gas powered car to a fully electric car and making it affordable. Tesla is using different methods and strategies to change the way the car industry makes and sells vehicles. I have chosen to blog about the marketing of Model S, because it is Tesla most talked about invention With a 0 to 60 mph acceleration of 5.6 seconds. it was first shown to the public in 2009 as a prototype. it was first delivered in Europe and became Norway's  best selling car. The car cost about $80,000. The Model S ranked as the top selling plug-in electric car in North America during the first quarter of 2013 with 4,900 cars sold, ahead of the Chevrolet Volt (4,421) and the Nissan Leaf (3,695). Model S has won several awards and recognition's like the 2013 World Green Car of the Year, 2013 Motor Trend Car of the Year, Automobile Magazine's 2013 Car of the Year, Time Magazine Best 25 Inventions of the Year 2012 award, Consumer Reports' top-scoring car ever, and the National Highway Traffic Safety Administration NHTSA top ranked 5 star safety rating. In March 2013 Tesla reported they produced on average more than 500 Model S EVs per week. Model S is currently being sold in North America, Europe, and soon Asia.

"Burn Rubber Not Gas"

Every Tesla with an infotainment screen offering applications like weather and Internet browsing is also running on AT&T