Marketing Mod 3 CA

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Marketing Mod 3 CA

INSTRUCTIONS:

Introduction Tesla Motors is an innovative US car manufacturer making a high performance all electric sports car, the Roadster. They have announced production plans for a new model four door sedan car, the model S, to be delivered in 2012. Case Question Write a four page paper (excluding title page, references and any appendices) in which you respond to the following case question: You are the Channels Manager for Tesla Motors. Explain how you would develop a distribution strategy for your cars. Ensure that you repeat the case question shown in bold above in full and verbatim on the title page of your submission. Excluding your title and reference pages, your paper should be no more than four pages long. Although this case question relates to channels of distribution you are expected to use both your knowledge acquired from MOD03 as well as your acquired knowledge from prior MKT301 modules. CASE EXPECTATIONS Use information from the background readings as well as the case articles and any good quality sources you can find. Please cite all sources and provide a reference list at the end of the paper. The following will be assessed in particular: Your demonstrated understanding of the marketing concepts central to the case question. Your identification of relevant criteria consumers will use for assessment of the product and development of a simple segmentation scheme. Your demonstrated understanding of factors related to the development of a distribution strategy through the analysis you conduct and their use in the context of the case. The criteria used for assessment will be those explained on the MOD01 Home page, namely: Focus. Breadth. Depth. Critical thinking. Effective and appropriate communication skills. Readings Begin your analysis by reading the following sources: Tesla Motors Website Store Locator page at http://www.teslamotors.com/teslastore/ viewed July 19, 2010. Kristen Hall-Geisler. (2008, March 9). Alternative Dealers Selling Alternative Power. New York Times (Late Edition (east Coast)), p. AU.10. Retrieved July 19, 2010, from Banking Information Source. (Document ID: 1442569501). Going green not boring with new electric Tesla. (2009, April 6). The Gazette,C.3. Retrieved July 19, 2010, from ProQuest Newsstand. (Document ID: 1676638341). The Background Info page provides further information useful in writing your paper. Please submit your case for grading by the end of this module.

CONTENT:

Running Head:Marketing Mod 3 CA Write a four page paper (excluding title page, references and any appendices) in which you respond to the following case question: You are the Channels Manager for Tesla Motors. Explain how you would develop a distribution strategy for your carsNameUniversityCourseLecturerDateINTRODUCTION Tesla motors was founded in the year 2003 by a passionate group of engineers from Silicon Valley who had a vision of making an electric car that would defy the view of most skeptics that electric cars do not offer good performance. The company is now involved in designing, manufacturing and selling of high performance electric vehicles. The first vehicle manufactured by Tesla motors was the Tesla Roadster in 2008. The Roadster was the first electronic vehicle that could manage up to 200 miles on a single charge. Another unique fact about the car was that it was the first vehicle to use lithium ion battery. Up to date Tesla Motors has been able to sell over 2000 Roadsters across the globe, with a customer base that is rapidly expanding. (Elon Musk 2009) The company is now in the process of launching an electric family sedan car known as Model S. This car, with a range of up to four hundred and eighty kilometers on a single charge, will be marketed at $ 49,900 (Michael van der Sande, 2009) after federal tax cuts, to target upper middle class families. So far over 2500 reservations have been made for the model and the expected time for start of production is 2012.Distribution strategy for Model S Currently, Tesla motors sells its cars through unconventional means. The distribution network is a combination of thirteen brick and Mortar Company owned showrooms, toll free telephone lines and online selling. Initial pricing strategy The initial price for the Model S has been set at $ 49,900 after federal tax, this would serve as a good entry price into the mid tier of the mass market. At this range, the model will be in direct completion with other established brands that target the same customer segment. The main selling point for the model S will be that it has a unique electric powered engine that offers excellent performance, a good mileage range, the latest technology that includes 3G WIFI, a very spacious interior and stylish looks (Mark Kleis 2010). The price charged for the model will eventually end up being its ultimate price with no intention of increments when sales increase. Pending developments in new technology, the price could inch lower to enable affordability of a wider customer segment.Focus on the target market. The target market for the Model S will be the average upper middle class...

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