Introduction
The product envisaged for a Tesla launch herein is Tesla Motorbike. The Tesla Motorbike is especially suitable for Tesla as it falls within the specifications that the company touts in its products. Motorbike is relatively small and environmentally friendly when compared to other motorized modes of transportation. Further, motorbikes are stylish and suitable for individuals of all ages due to the potential for variety. The Tesla Motorbike will rely on Tesla’s combination of innovation and invention in order to meet customer needs. On the one hand, it will benefit from the electric storage technology available to Tesla to move for elongated distances without the need for refueling (Cooper, 2018). Contemporaneously, Tesla has innovatively reduced the size-to-power ratio of batteries by developing small yet powerful batteries. This component is especially useful for a motorbike, which, having only two wheels has the potential for a dramatic reduction in size. Finally, Tesla always goes for innovatively attractive outward appearances, an element that would appeal to motorbike lovers. The factors above inform the choice of Tesla Motorbike as the envisaged product.
Market Mix
As with all its other products, the core aspect of the marketing strategy for the Tesla Motorbike focuses on the product itself. The product will be unique, having some variety and highly innovative. The outer design of the bikes will vary to suit the tastes of the customers. For example, Tesla can make massive motorbikes for male customers who prefer them, and smaller feminized ones for the women. Conversely, the product will also include advanced technology in terms of power storage and use, to not only reduce overall power for environmental conservation but also extend distance traveled before the need for a recharge (Cooper, 2018). The product aspect will combine with the pricing through inverse proportion. The high quality of the product will match with relatively low prices through effective cost-leadership. Through price differentiation, Tesla will rise above the fray of any competition.
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Concerning promotion, Tesla does not need to overinvest as the power of its brand guarantees high demand for any of its products. Indeed, in most of its products, Tesla has to struggle to ensure that its production rates keep up with its demand. The company only needs to carry out limited ads through social media to inform potential customers about the specifications of the proposed product (Popkin, 2018). Finally, concerning place, Tesla already has a massive network on the ground through its recharge centers, spread across the USA (Cooper, 2018). The centers shall form nodes for actual contact with potential customers. However, the main point of sale is through Tesla’s online platform where customers can book the product.
Market Research
Marketing research is essential for the strategic plan, as it will enable the company to plan regarding the volumes of each type of motorbike to make (Ferrell & Hartline, 2019). Further, marketing research will enable the company to understand the potential reactions of the market to the product, for the company to avoid unexpected contingencies. Tesla has an advantage when it comes to marketing research as it uses pre-orders to plan the manufacturing process. However, marketing research will be necessary for the development stage to assess the level of approval of the product. Interacting with the target market through social media is a viable marketing research tool for Tesla. The kind of target market envisaged for the product includes ardent social media users.
Target Market
The target market for Tesla is the urban professional younger generation, both men and women, but with a focus on men. Younger people, below the age of 50, belong to a generation that is especially sensitive about environmental protection. This group will be willing to sacrifice the added comfort of riding in a car in order to reduce their carbon footprints. Further, individuals living in urban centers face issues such as traffic jams and parking space problems. Using a motorbike can mitigate such issues. Urban centers also have an advantage as more customers can make use of the same charging facilities, which saves on costs. Finally, current use dynamics shows that men are more agreeable to the regular use of motorbikes than women are, hence the focus on males within the target group.
Product Positioning
The target group outlined above cares about how much value they get from a product and whether that value comes at the expense of the environment. In most cases, motorbike owners have to choose between value and environmental conservation. For example, if they want to reduce their carbon footprints, they have to sacrifice power. The Tesla motorbike will position itself as having the ability to eliminate choices. Users can have powerful bikes without the guilt of excessive environmental pollution. The instant product’s positioning shall rely on the ability to provide such an option for its customers (Ferrell & Hartline, 2019).
Competitive Analysis
The motorbike market has been highly competitive in the USA for decades, but according to available reports, it has been in decline in recent years (Coffin, 2018). In spite of the decline, there are still powerful local and international players in the US market. Competitive analysis includes a careful evaluation of the players in the market that pose a threat to the marketer (Ferrell & Hartline, 2019). However, the decline reveals that a large number of motorbike lovers feel that the current players do not meet their needs. This factor provides an opportunity that Tesla can exploit as it penetrates the market. Further, when it comes to the specific niche of electric mobility, Tesla is way ahead of the competition concerning invention, innovation and brand power. The proposed product will face competition and will easily rise to become a dominant player in the market.
Conclusion
Based on the research and analysis outlined above, an electric motorbike is both suitable for Tesla and the American Market. Tesla has excelled through innovatively developing electric modes of transportation that have high levels of power form relatively smaller battery packs. On the other hand, the target market, younger urban professionals, need the kind of specifications that a Tesla Motorbike would provide. These are the ability to maneuver in urban traffic, ease of parking, power and a low carbon footprint. Based on the above factors, the proposed product has a high chance of success.
References
Coffin,, D (2018). U.S. Motorcycle Market Changes Gears. U.S. International Trade Commission (USITC)
Cooper, C. (2018). The Truth about Tesla: The Myth of the Lone Genius in the History of Innovation . Minneapolis, Minnesota: Race Point Publishing.
Ferrell, O. C., & Hartline, M. D. (2019). Marketing strategy: text and cases . Boston, Massachusetts: Cengage Learning
Popkin, H. A. S. (2018, November 1). Elon Musk's Twitter Account Is Tesla's $40 Million Marketing Platform. 'Worth It'. Retrieved from https://www.forbes.com/sites/helenpopkin/2018/10/30/elon-musks-twitter-account-is-teslas-40-million-marketing-platform-worth-it/#331c54b67873 .
