determine an appropriate target-market strategy for Tesla X or S models. Should
ID: 328432 • Letter: D
Question
determine an appropriate target-market strategy for Tesla X or S models. Should the company focus all their resources on this new target market (concentrated marketing) or should they continue to pursue both the new and the existing target market as well as other market segments (multi-segment marketing)? Alternatively, is the market so saturated might they be more successful by focusing solely on an even more narrow market segment, perhaps an even narrower version (niche marketing) of your selected target market, as their best chance for growth? What is your reasoning?
Explanation / Answer
The statistics of Tesla's Model S buyers skewed towards older affluent males who are predominantly early adopters to new technology. The statistics for Model X buyers show that the younger and affluent people in the age group of 35-54 or popularly known as the Generation X, are the chief buyers. Also, a considerable percentage of Model X buyers were women (about 30%) who were mostly mothers with young kids. Based on these trends it can be clearly seen that the target market is evolving and showing positive signs of a broader market segment that can be targeted. So, based on this I believe substantial efforts should be done towards both existing and new markets for future marketing as positive signs can be seen,
Strategy
Target: Tesla must expand their target market towards Generation Y (20-40 age group) for young individual looking for a entry level luxury car. Apart from that based on teh above reasoning, women can also be targeted as that segment has shown considerable uprise.
Segment: Cards can be segmented in 3 categories mainly, environment friendly, tech savvy and entry level segments. Undoubtedly these eco-friendly segment will be targeted by our electric cars as this segment is more conscious towards environmental concerns. Tech savvy clients can be targeted by our modern electric technology which is in a nascent stage as of now. Early adopters are the prime buyers in this segment. Entry level segment is the young buyer who wants his first luxury car.
Positioning: We will position new cars as eco-friendly, full electric and technically superior car. We will highlight in the aspect of it being fully electric without compromising on performance and technology.
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