Tesla’s Product

 

Tesla's Product 

According to Neil H. Borden (n.d.), the marketing mix of a company consists mostly in the product of the evolution which comes from day-to-day marketing. At any time, the mix represents the program that management has evolved to meet the problems constantly encountered in an ever-changing, challenging market. To solve these problems, the companies may apply a few actions like new products, aggressive promotion, or price change.

(B. Anderson, 2019) Tesla’s S3XY models

Tesla was founded in 2003 by a group of engineers willing to prove that people didn’t need to compromise to drive electric cars. (Tesla, n.d.). The company produces electric vehicles, but it also offers related products such as solar energy generation and energy storage products. This is a type of growth related to the diversification of product. (Cole Ehmke et al., n.d.).

Like most of its competitors, Tesla offers financial services. For some of the loan programs, it has a resale value guarantee provision.  (KRISTINA ZUCCHI, 2021).

Regarding the automotive sector, currently Tesla produces only 4 models of vehicles: Model 3 - a four-door sedan; Model Y - a sport utility vehicle (SUV); Model S - a four-door sedan and Model X - an SUV.

                                            (Tesla, n.d.) Model X price

Apart from the physical product itself, there are elements associated with the product that customers may be attracted to. (Cole Ehmke, Joan Fulton, and Jayson Lusk, n.d.)  In Tesla’s case, these elements could include quality, features, options, services and warranty. For example, The Basic Vehicle Limited Warranty covers a vehicle for 4 years or 50,000 miles, but it also offers extended types of warranty. The company also offers an additional 8 years battery warranty (Tesla, n.d.).

Tesla’s models are being special also due to its outstanding features. The Autopilot feature is surely one to be mentioned. This is an advanced safety technology, designed to assist the driver with the most burdensome parts of driving.

The Advanced Sensor Coverage is a great feature that consists of eight surround cameras that provide 360 degrees of visibility around the car at up to 250 meters of range. Other twelve ultrasonic sensors complement this vision, allowing for detection of hard and soft objects. (Tesla, n.d.). 

Through the OVER-THE-AIR-UPDATES, Tesla cars are being regularly improved by adding new features and enhance existing functionality via Wi-Fi. (Tesla, n.d.).

  Evans, S., (2018) Tesla Roadster SpaceX launch

Another important aspect to be mentioned is the range of Tesla cars. Due to its high-powered battery tech, a Tesla Model S can get to 360 miles without stopping to charge. Compared to its electric car competitors such as Chevrolet, Jaguar and Nissan that can only make it about 240 miles, Tesla is without doubt the best. (Faiz Siddiqui, 2020).

(Tesla, n.d.) Tesla Gigafactory

Some other electrical vehicles, such as BMW i3 or Audi e-tron, have also a limited range: BMW i3 has a range between 182 and 188 miles (BMW, n.d.). Audi e-tron has a range up to 298 miles. (Audi, n.d.).

Tesla models are modern, sporty cars, but more than that, they are spacious cars. There is no fuel storage into a Tesla car, and it also has a front truck.

In 2020, Tesla’s vehicle deliveries reached almost 500,000 units and this proves that the company is the fastest-growing brand worldwide and the leading electric vehicle brand.

At the same time, Model 3 has become the world's best-selling plug-in electric vehicle model.  (I. Wagner, 2021).

(Tesla (n.d.) Tesla website page - Inventory

Tesla is focusing on one product at a time, fact which ensured the success of the company. While focusing on producing a certain model, the company develops new models to expand its customer base. (Amy Wu, 2019).

The most considerable part of the company’s profit comes from automotive sales. This segment accounts for 94% of total revenue and almost 100% of total gross profit (Alan Farley, 2021).

(Patrick T. Fallon, n.d.) An employee speaks with a customer at a Tesla showroom

Obviously, Tesla is a successful company and the fastest growing brand worldwide. Developing completely new technologies, the company forced the entire automotive makers to adapt and develop their own electric models. Tesla’s cars are being modern, safe and high-performant, convincing more and more people around the world to be interested in them.

(Tesla n.d.) Superchargers on the road

Reference list:

NEIL H . BORDEN (n.d.) The Concept of the Marketing Mix [online] Available at: http://www.guillaumenicaise.com/wp-content/uploads/2013/10/Borden-1984_The-concept-of-marketing-mix.pdf?tstamp=07eebed3b9c56925564bc02b9482e6e1750090a5 [Accessed 15 February 2021];

Cole Ehmke, Joan Fulton and Jayson Lusk, (n.d.) Marketing’s Four P’s: First Steps for New Entrepreneurs [online]. Available at: https://www.extension.purdue.edu/extmedia/ec/ec-730.pdf?tstamp=027fd58512a4ef1f187e195897d399d64da1ef6d [Accessed 15 February 2021];

Tesla (n.d.) Vehicle warranty [online]. Available at: https://www.tesla.com/en_GB/support/vehicle-warranty [Accessed 15 February 2021];

Tesla (n.d.) About [online]. Available at: https://www.tesla.com/en_GB/about  [Accessed 15 February 2021];

(KRISTINA ZUCCHI, 2021) What Makes Tesla's Business Model Different? [online]. Available at: https://www.investopedia.com/articles/active-trading/072115/what-makes-teslas-business-model-different.asp [Accessed 17 February 2021];

I. Wagner (2021) Tesla - statistics & facts [online]. Available at:   https://www.statista.com/topics/2086/tesla/ [Accessed 17 February 2021];

ALAN FARLEY (2021) How Tesla Makes Money [online]. Available at:   https://www.investopedia.com/tesla-s-largest-revenue-source-is-automotive-sales-4799069  [Accessed 17 February 2021];

Amy Wu (2019) The Story Behind Tesla's Success (TSLA) [online]/ Available at: https://www.investopedia.com/articles/personal-finance/061915/story-behind-teslas-success.asp [Accessed 18 February 2021];

BMW (n.d.) BMW i3 [online] Available at: https://www.bmw.co.uk/en/topics/discover/electromobility/electric-cars.html  [Accessed 18 February 2021];

Audi (n.d.] e-tron [online]. Available at: https://www.audi.co.uk/electric.html [Accessed 18 February 2021].

Tesla (n.d.) Future of Driving [online]. Available at: https://www.tesla.com/en_GB/autopilot [Accessed 18 February 2021];

Tesla (n.d.) Support software updates [online]. Available at: https://www.tesla.com/en_GB/support/software-updates [Accessed 18 February 2021];

Faiz Siddiqui (2020), Teslas still go much farther on a single charge than their competitors. But the strategy carries risks [online]. Available at: https://www.washingtonpost.com/technology/2020/01/10/tesla-battery-range/ [Accessed 18 February 2021];

Anderson, B. (2019), Tesla’s S3XY Family [online], in carscoops.com. Available at: https://www.carscoops.com/2019/03/teslas-s3xy-family-is-complete-but-are-they-actually-sexy/#lg=1&slide=1 [Accessed 08 February 2021];

           Tesla (n.d), Model X price [online] in tesla.com. Available at                                                               https://www.tesla.com/en_gb/modelx/design#battery [Accessed 08 February 2021]

   Tesla (n.d.) Tesla website page – Inventory [online] in tesla.com. Available at:        https://www.tesla.com/en_GB/inventory/new/m3?arrangeby=plh&zip=94107&range=0 [Accessed 10    February 2021];

        Evans, S. (2018) Like a Rocket: The Story Behind SpaceX’s Plan to Launch a Tesla Roadster Into   Space [online] in motortrend.com. Available at: https://www.motortrend.com/news/like-rocket-story-  behind-spacexs-plan-launch-tesla-roadster-space/ [Accessed 11 February 2021];

    Fallon, P. (n.d.), An employee speaks with a customer at a Tesla showroom. [online] in Bloomberg.com. Available at: https://www.bloomberg.com/news/articles/2020-01-23/tesla-clears-road-for-rivian-others-to-sell-evs-without-dealers. [Accessed 11 February 2021];

      Tesla, (n.d.) Tesla Gigafactory [online] in tesla.com. Available at: https://www.tesla.com/gigafactory [Accessed 11 February 2021]

  Tesla (n.d.) Superchargers on the road [online] in tesla.com. Available at: https://www.tesla.com/en_GB/supercharger?redirect=no [Accessed 12 February 2021];