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Group 1 Presentation of the TESLA company.pptx
- 1. GROUP 1: PRODUCTLAUNCH STRATEGY ANALYSIS TESLA MODEL 3 DOMS IIT Roorkee BMN 511 MARKETING MANAGEMENT II SUBMITTED TO: PROF. DR KALPAK KULKARNI
- 2. Adesh P.S Deol 23810001 AdityaBiswas 23810002 Akanksha Pathak 23810004 Meet The Team Akash Sarkar 23810005 Akshat Sharma 23810006 Amit Nigam 23810008 Aman Priyedarshe 23810007 Meet The Team Meet The Team
- 3. MODEL 3 TESLA Established in2003, Tesla, led by Elon Musk, aims to accelerate the world's transition to sustainable energy. 01 Tesla's electric vehicles, including Model S, Model 3, and Model X, are known for their advanced technology, long-range capabilities, and high performance. 02 Tesla's leadership has catalyzed the electric vehicle industry, prompting competitors to invest in EVs and driving increased consumer interest. 05 03 Tesla's Giga Factories Produce: High-performance batteries Lowering costs & making EVs more accessible 04 Beyond Cars, Tesla also produces: Solar Panels & Powerwall Cybertruck and Semi-truck
- 4. Model 3's ongoing popularitysuggests that it continues to thrive in the growth stage of the product life cycle. Extended Growth Stage The growth phase was marked by challenges in scaling up production to meet high demand. Production Challenges Model 3 was introduced in 2017, marking the product's entry into the market. Ongoing updates and innovations have helped maintain the Model 3's relevance and market presence. Introduction & Sustained Demand Initially, it rapidly gained market acceptance due to its affordability, impressive range, and advanced features. Growth Stage Product Life Cycle
- 5. Pre-launch Hype Some keymethods by which Tesla generated pre-launch hype for the Model 3: • Announcement and Teasers • Unveiling Event • Price Point • Reservation System • Social Media and Online Buzz • Media Coverage • Production Updates • Government Incentives
- 7. Pricing Strategy for Model3 Tesla approached pricing for the Model 3: • Initial Pricing • Tiered Pricing • Autopilot and Full Self-Driving • Dynamic Pricing Changes • Regional and Government Incentives • Bundling and Package Options • Referral Programs and Discounts
- 8. Locations and LaunchDates Tesla Model 3 was unveiled on 31st March 2016 Within 24 hours of the events around 200,000 Model 3 were booked A total of 518,000 Model 3 were booked before its launch date on 7th July 2017 In Europe and China, it was launched in early 2019 In Australia and New Zealand, it was launched in June 2019 A new facelift variant of Model 3 has been launched and is up for pre-orders in Europe and delivery was targeted to be Oct 2023 In India, it is expected to launch by 2025 In North America, the booking will start in early 2024 for new model
- 9. Production Challenges •Initial ProductionCapacity Increase: • Tesla doubled its production capacity due to high demand and pre-orders. • Invested over $2 billion in manufacturing setup. •Production Targets: • Planned to exceed 5,000 vehicles per week in Q4 2017. • Aims to reach 10,000 vehicles per week in 2018. •Q4 2017 Production Miss: • Only 2,425 vehicles were produced in Q4 2017. • Fell significantly short of the target. •Challenges Identified: • Battery production issues. • Over-automation with too many robots. • Complex conveyor network. •Manufacturing Halt: • Tesla had to stop production in early 2018 to resolve manufacturing problems. •Elon Musk's Statement: • Acknowledged challenges in battery
- 10. Customer Response & Sales ConsumerReports, the product-testing consumer advocacy group, has named the vehicle the “most satisfying car” on the market. Consumer Reports recently ranked the 10 most satisfying car models based on the results of surveys of more than half a million car owners to find “the models that bring their owners joy” Model 3's brand loyalty is the second highest of any model in the industry, trailing only the Ford Edge. Models 3 and X rank in the top ten models across the industry in May brand loyalty; Source: https://www.spglobal.com/mobility/en/research- analysis/may-2022-tesla-brand-loyalty-more-than-doubles- yearoveryear.html
- 11. Sales Figures &Growth • The Tesla Model Y was the world’s most popular plug-in electric vehicle with worldwide unit sales of roughly 771,300 in 2022. • That year, deliveries of Tesla's Model 3 and Model Y have surpassed 1.2 million, which was a year-over-year increase of 36.77 percent for Tesla's best-selling models. • The number of Tesla vehicles produced worldwide was brought to nearly 1.37 million units in 2022, up from almost 930,400 in 2021. • Growth was mainly driven by two models, as 419,088 Model 3 and Model Y vehicles were built in the fourth quarter.
- 12. Promotional Effects Zero-Dollar Marketing Approach- The main marketing hub remains Tesla's website, supplemented by online platforms like blogs and forums, constituting a cost-effective marketing strategy Word-of-Mouth Referrals: A referral program to attract buyers through customer recommendations, enhancing trust and credibility. Marketing Manager Anna Melton notes, “You can get exclusive benefits with a personal referral code. Digital Marketing Strategy - Leveraging a robust digital marketing approach, utilizing platforms like YouTube with 2.29 million subscribers and 275 videos, showcasing Tesla's exceptional features. Viral Marketing- Tesla’s promotion relies primarily on viral marketing but utilizes personal selling, public sales promotion, and direct marketing.” They leverage social Source: https://growfusely.com/blog/teslas- marketing-strategy-lessons/
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- 14. Sustainabilit y & Innovation •Battery Innovation: •Advanced high-performance batteries. •Energy Efficiency: • Engineered for reduced energy consumption. •Manufacturing Innovation: • Utilized automation and robotics for efficient production. •Sustainable Materials: • Incorporated eco-friendly materials in the Model 3's interior. •Clean Energy Integration: • Promoted clean energy sources for charging.
- 15. Competitor Landscape VW's "ID" brand:VW is fully committed to electric vehicles with its "ID" brand, releasing models like ID 3 and ID 4. Audi responded to the Tesla Model 3 by introducing electric models like the E-tron, Promoting its presence in sustainability marketing and expanding in global markets to compete directly with Tesla. Ford responded to the Tesla Model 3 by announcing the Mustang Mach-E and an electric Ford F-150 Investing in EV technology, improving charging networks, and rebranding as an electric vehicle company. VW is targeting Tesla's EV market share, focusing on affordability, charging infrastructure, and sustainability.
- 16. POLICY IMPACT Model 3popularity drove global policy changes - stricter emissions standards and EV incentives - aligning with environmental goals and boosting market growth. INFRASTRUCTURE EXPANSION Tesla's Supercharger expansion and industry investments increased public charging points to over 18 million, simplifying EV recharging. MARKET IMPACT COST REDUCTION Intense competition lowered EV prices. Model 3's price dropped from $35,000 (2017) to $28,990 (2023), increasing accessibility for consumers. DIVERSIFYING EV OFFERINGS Model 3's success prompted competition diversifying the market with affordable options (e.g., Chevrolet Bolt EV by GM) and luxury models (e.g., Porsche Taycan).
- 17. The Model 3made electric cars more accessible and appealing, expanding the EV market share from 1% in 2016 to 8.6% in 2022. Model 3 was the world's best- selling electric car in 2022, with 500,000+ units sold, highlighting its market success. Market Share Expansion Environment al Focus High Resale Value 2022 Bestseller Success Indicators Tesla EV Market Leader High Model 3 resale values reflect desirability with strong retention of value in the secondary market. Model 3's sustainability focus aligned with eco-friendly trends, shaping consumer behaviour and driving market growth.
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