This is my third and final blog on the brilliant marketing strategy of Tesla Motors. In this blog, i will focus on their Model S sedan specifically.
Tesla Motor’s self-stated key goals in the company’s marketing effort are to
- “Generate demand for our vehicles and drive leads to our sales teams;
- build long-term brand awareness and manage corporate reputation;
- manage our existing customer base to create loyalty and customer referrals; and
- enable customer input into the product development process”
From a pricing perspective, Tesla Motors does not have a truly affordable “middle-class” car yet. However considering the company’s branding focus is as a maker of premium electric vehicles, the marketing effort is not seriously focused on the main stream car buying public yet. The company has focused its marketing efforts to attract the environment conscious/ class conscious buyer and has not been averse to bask in adulation for being a successful American car maker. At the same time under Mr. Elon Musk’s astute leadership , the company has good financing options to encourage price conscious customers to purchase the car.
From a premium shopping experience perspective, Tesla Motors has been strongly focused on ensuring a distinctive approach. A lot of this focus can be attributed to Mr. Blankenship who pioneered the hugely successful Apple Retail store concept . Mr. Blankenship has been attempting to replicate this success in the car industry by designing elegant stores with substantial investment at highly visible venues. Tesla Motors uses these venues as a means to evangelize the electric car in general and Tesla Motors in particular. The staff follows a model of soft selling with the caveat that due to regulatory restrictions in many states the staff cannot sell the car directly . However this approach appears to have generated significant footfalls for Tesla Motors helping them capture popular imagination despite actually having only a tiny number of cars in the market.
Tesla Motors in a number of ways has the mindset of a software company. In addition, Tesla Motors openly flaunts a preference to update the company’s proprietary software over the internet so Tesla Motors customers can benefit from regular software upgrades. This is especially relevant for a company like Tesla whose cars rely on an exceptionally high amount of software most strongly illustrated by the unique 17 inch touch screen console, as an example, the “slow creep” ability to Tesla cars was added based on user feedback. This is important because this is a subtle way of marketing to customers that the user experience and features of Tesla Motors cars are likely to be regularly upgraded even after customers purchase the car when compared to similar high value branded competitors .
Tesla Motors has been talking about ushering the Electric Vehicle revolution in the US . I surmise that even the title of the Model S Sedan is probably a subtle marketing way of bringing reference to the original blockbuster car, the famous Ford Model T that is largely acknowledged to have ushered in the automobile revolution in the US in the early 19th century.
in addition to all the smart marketing approaches I’ve detailed above, The Model S is a technologically superior vehicle. It has the highest EPA rating among all electric cars. The car has exceptional ratings. It was rated the best car of the year 2013 by multiple prestigious publications,
1) MOTORTREND car of the year 2013
2) 2013 automobile of the year from Automobile magazine
3) had an unbelievable rating of 99 out a possible 100 by Consumer Reports.
As I stated in an earlier blog, the combination of peerless marketing and an excellent product is the key reason for their success. Of course I must add, the incredibly talented Mr. Elon Musk is at the helm of this exciting car company. This ends my analysis of Tesla Motors. Thank you for reading.