Marketing research is a very crucial step for effective marketing. Marketing research is directly related to problem it is carried in context of. Tesla motors is facing many challenges as they entered the industry but their research has helped them identify and find a solution to enhance their opportunity to grow more in the industry.
Tesla Motors has carried out its research at different levels helping them to identify the actual issues and counter attack them with innovation.
- Recharge time at home and Cost.
- Low number of charging stations.
- Initial cost of purchase.
- Low car choice option.
Tesla Motors after realizing the threats has worked efficiently and effectively on the issues faced by the consumers.
- Tesla has installed 2832 individual superchargers in 500 stations around the world in less than 3 years. Tesla has a different strategy for each country like Tesla is distributing free home chargers across China.
- Tesla Batteries can provide 62 miles in an hour up to 300 miles an hour.
- Tesla has introduced it’s model S and model X in the market since 2013 around the world and has recently launched its model Gen 3 that is comparatively cheaper and affordable and is expected to capture a 5% market.
Tesla compared to the existing market
Tesla is in major competition with Toyota as it is fuel efficient and Toyota has introduced hybrid cars in it’s class at cheaper prices. Due to the oil prices decreasing rapidly, it is giving tough competition to the company the cost of acquiring a higher. As more and more companies have started to introduce the range of hybrid cars, the competition is getting more tough for Tesla.
Tesla has introduced it’s latest model Gen 3 in market and it has already been taken the market share. Tesla being a common man dream car wants to be a common man car in the future. As even the government has started supporting Tesla, it is not taking much time to enter new markets and introduce better options to the existing customers for a strong customer base.
The Electric Evolution
Tesla is taking over the industry by its idea of being eco-friendly and not compromising on the quality. The concept is being supported by many countries and it has started to take it’s idea further over the internet. Tesla has taken copyrights of the models and is challenging the rival companies to do better. Even though the company is facing huge loses, the production doesn’t stop, doesn’t give up the idea.
Conclusion and Recommendation
Tesla has the best batteries and are rigorously tested in labs but real-world driving presents a much more complex set of conditions, and assumptions about battery lifetimes are often disproved in the field. At present electric vehicles account to less than 1% of the total vehicles and as this industry gains more popularity there will be an increase in the competition resulting in decrease in prices. As Tesla is taking on individual market, it is bent to use unique marketing strategy for each market. There is a constant change in the market trend, Tesla is tracking the market frequently for meeting the consumer needs. Tesla is doing very well by reaching it’s milestone of 500 charging stations but it is not enough to change the perspective of people to choose electric cars over fueled vehicles. The niche market approach of Tesla has been successful for Tesla but there are a number of factors that has been out looked by the company that has to be considered for future growth and attain it’s desirable profits and market share.
- Mangram, Myles Edwin.Journal of Strategic Marketing. Jul2012, Vol. 20 Issue 4, p289-312. 24p.
- Eisler, Matthew N.IEEE Spectrum. Feb2016, Vol. 53 Issue 2, p34-55. 22p. DOI: 10.1109/MSPEC.2016.7419798.
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