Free Essay

Mar 07 Marketing the All-Electric Suv – 2014 Tesla Model X

In:

Submitted By sallybaby
Words 535
Pages 3
Last month, California-based Tesla Motors reveled a prototype of their third model, the all-electric SUV Model X. The Model X will feature a first of its kind on passenger doors called Falcon Wings which have hinges on the top and open upward, rather than sliding sideways like the doors of typical minivans. Tesla expects to begin production of Model X in late 2013, and have them ready to be delivered in early 2014. The all-electric vehicle has already received positive buzz and Tesla reported that just one day after the reveal of the Model X, it received over 500 reservation requests, representing almost $40 million in potential sales.

In a recent interview by GigaOM, Tesla’s CEO and co-founder Elon Musk mentions that the Model X will be marketed towards SUV and minivan consumers who look for a more functional SUV and a better style minivan. According to Tesla’s website, the Model X was “designed from the ground up to blend the best of an SUV with the benefits of a minivan, as only an electric car can. [The model X was] built around the driver—and six of her friends. It artfully provides unfettered performance and brilliant functionality.”

2014 Tesla Model X

According to The Detroit News, Tesla last year invited a dozen Palo Alto, California-area women to its headquarters for a free-wheeling, three-hour-long focus group led by Franz von Holzhausen, Tesla’s chief designer. Tesla asked the participants, most of whom drive minivans and SUVs, to talk about their cars: how they use them and what they like and don’t like about them.

Safety was a big issue for all the women, as was ease of getting kids in and out of car seats and access to the third-row seats. Some cared a lot about how the car looked, while others focused more on functionality. Many of the SUV drivers said they didn’t like having to climb up into their car.

“The focus group was great because it validated a lot of our own thinking,” said von Holzhausen to the Detriot News. “Women don’t want an overly feminine vehicle; they want to feel secure. But it has to be aggressive enough for a guy to feel confident, as well. We didn’t want to make a Hello Kitty edition.”

Tesla hasn’t said what the gender breakdown is for the Model X reservations placed to date. Online Tesla Motors forums, which tend to be dominated by men, include posts by men who are ordering the Model X for their wives after having ordered a Model S, which is scheduled to launch this summer, for themselves.

“She really likes her current vehicle, but I have a suspicion that she’s going to really like the convenience of never needing to go to the gas station once the Model S gets here,” wrote one man on the forum last month. “Basically I’m afraid that I’ll have to fight her for the S; if I have the X already on order, I can get away with it.”

It costs $5,000 to reserve a Model X, or $40,000 for those who want to reserve the limited edition “Model X Signature.”

Similar Documents

Premium Essay

Marketing Strategy

...North America Equity Research 22 September 2014 US Automakers See Attractively Deep Value in GM As We Roll Out 2016 Estimates for US Automakers; Like Ford; Cautious on TSLA We introduce our 2016 estimates and roll-forward valuation for GM and Ford, finding +50% upside in the case of General Motors and +32% in the case of Ford. Our established 2015 price targets increase on newly considered 2016 earnings rather than 2015 in our valuation analysis and on capital structure roll-forward as the firms generate sizable cash flow. 2016 earnings are expected to rise relative to 2015, on industry tailwinds (continued trend toward more normal volumes in Europe, cycling past a period of atypically strong macro headwinds in South America, robust growth in China, and continued cyclical increase in North America even if at a lesser rate) as well as various different self-help initiatives (e.g., as restructurings in Europe, Australia, and elsewhere take further hold, and on cost control efforts in North America). We reiterate our Overweight ratings on both GM and Ford, seeing more value in automaker stocks than in supplier stocks generally, on earnings that are growing almost as quickly as the average supplier over our newly extended forecast window (and at least as structurally improved relative to history) but valuation which is only in line with historical average (Ford) or even significantly below (GM). We are more cautious on Tesla, however, with our Neutral rating balancing incremental...

Words: 24575 - Pages: 99

Premium Essay

Interbrand-Best-Global-Brands-2013-Report

...Best Global Brands 2013 Table of Contents JEZ Leadership is evolving. It must now be shared. CEOs, CMOs, and consumers all have the power to drive brand value. Brands are where business strategy meets reality. GINNI The New Rules of Brand Leadership 2 From Information to Intelligence 82 Best Global Brands 2013 Sector Leadership 86 BISH 10 Creative Leadership 70 Methodology 120 China’s New Brand Leaders 74 Contributors 126 Corporate Citizenship 2.0 78 MARK CHIEKO The New Rules of Brand Leadership By Jez Frampton In our globalized, hyperconnected age, one question persists in boardrooms, corner offices, business schools, and conferences all over the world: What is leadership and how has it changed in the 21st century? Driven by rapid technological advancement, the digitization of nearly everything, and the ever more intricate interdependencies of the global market, the business landscape has transformed over the past two decades. Operating in a bewildering new environment in which little is certain, the pace is quicker and the dynamics more complex. Those who lead today’s brands can no longer rely on once immutable truths or principles of leadership honored in times past. It is a new world. And as purchasing increasingly shifts from a physical experience to a virtual one and transaction-based interactions between brands and consumers shift to relationship-based interactions, new skills and sensibilities are needed. Leadership...

Words: 44812 - Pages: 180

Premium Essay

Global Brand

...Best Global Brands 2013 Table of Contents JEZ Leadership is evolving. It must now be shared. CEOs, CMOs, and consumers all have the power to drive brand value. Brands are where business strategy meets reality. GINNI The New Rules of Brand Leadership 2 From Information to Intelligence 82 Sector Leadership Best Global Brands 2013 10 86 BISH Methodology Creative Leadership 70 120 Contributors China’s New Brand Leaders 74 126 Corporate Citizenship 2.0 78 MARK CHIEKO The New Rules of Brand Leadership By Jez Frampton In our globalized, hyperconnected age, one question persists in boardrooms, corner offices, business schools, and conferences all over the world: What is leadership and how has it changed in the 21st century? Driven by rapid technological advancement, the digitization of nearly everything, and the ever more intricate interdependencies of the global market, the business landscape has transformed over the past two decades. Operating in a bewildering new environment in which little is certain, the pace is quicker and the dynamics more complex. Those who lead today’s brands can no longer rely on once immutable truths or principles of leadership honored in times past. It is a new world. And as purchasing increasingly shifts from a physical experience to a virtual one and transaction-based interactions between brands and consumers shift to relationship-based interactions, new skills and sensibilities are needed. Leadership roles...

Words: 44781 - Pages: 180