Do You Buy What You See !

Untitled

Sathish Varughese | Student ID : 215167756

A few years back, if you had to show me this logo, I would not have a clue as to what it represents.

I have only imagined and probably seen a few documentaries about Electric cars.

So why is Tesla so highly sought after nowadays but are cliché in the market, with very less marketing and advertising behind them, but a very strong and growing presence, with strong future growth projections

They cater to global demand for their product in the market,  only, out of two factories, one located in Fermont, California and the other in Reno, Nevada, compared to the 50+ manufacturing plants their rivals operate

Tesla

Figure 1. Source :  Tesla Model S – http://www.tesla.com

So what are their tricks of trade to hit the market running and how are they capturing consumer interest without much aggressive advertising and marketing. Backed up by increasing fuel prices which has a direct effect on consumer buying power, and for those who have concerns about growing global warming, the rest of their growth is purely dependent on a particular aspect of Consumer behaviour, their sleek vehicle design, and the technology

Tesla Ext 1

Figure 2. Source : Tesla Model X, http://www.tesla.com

When touch screen mobiles came out, the keypad mobile phones suddenly turned out to be a bad taste with Gen Y and a larger population of Gen X and Boomers.

So if you ask me, Tesla has captured consumers through a product merely through the science of consumer behaviour. If many of you watched the 80’s series of “Knight Rider”, you probably know what I am talking about.

The vehicle’s modus operandi is like playing a “Grand Theft Auto” or “Need for Speed” on a touch screen mobile phone.

Media 1 : Inside Tesla – Mode of Operation Source : https://www.youtube.com/watch?v=QRVia4VZq1s

Tesla has not developed any aggressive marketing campaigns. They do not have fancy showrooms or TV campaigns that sell. Their presence and for a car manufacturer are retail shops in large shopping malls surrounded by state of the art technology. You can view the models, learn about the engineering process, and schedule a test drive. And if you want to purchase a Tesla it is done online direct from the company’s website.

They are slowly but steadily capturing the global market with their innovation. There is no cultural differences that affect a consumer behaviour for this product

Tesla’s introduction of their models have changed my perception on how vehicles will be designed and sold in the future and how it will change the Automotive industry forever

Tesla Interior

Figure 3: Inside Tesla. Source : http://www.fortune.com

For an automotive introduced in the midst of a global competitive market, Tesla has outperformed their arch rivals .

Projections
Figure 4 : Tesla Growth Projection 2020.  Source: ‪Why Tesla’s Model 3 Could Be the New Model T | Greenwich Media‪ www.greentechmedia.com1544 × 1172Search by image

I know any battery operated product needs to be replaced or recharged quite often and can be frustrating when you can’t recharge or run out of batteries to use a product. But Tesla’s  extensive after market support in providing recharging stations, is helping them gain consumer confidence, because nothing could be more frustrating than losing battery power in a running vehicle  on the Hume highway when travelling interstate.

Screen Shot 2016-08-19 at 7.52.16 AM

Figure 5: Tesla Support and Recharge Centres in Australia. Source : http://www.tesla.com

Tesla has a very unique feedback system, in collecting  data from their consumers on how they can improve the technology in the vehicle.  They engage their consumers to innovate and create change in their product to what the Consumers what, and this will be their key to ongoing success.

So next time, when you look at a speciality product, I am sure it is not what you see you buy, it is what you have heard from other consumers who owns such product visualised in your own perception and backed up by research that will help you buy the Product you want !

References

http://www.gurufocus.com/financials/TSLA

https://www.tesla.com/en_AU/factory

http://www.forbes.com/sites/chuckjones/2016/06/07/how-many-plant-sites-will-tesla-need/#6a5b21d257fd

http://successstory.com/companies/tesla-motors

http://aada.asn.au/teslas-electric-shock/

http://www.itproportal.com/2014/10/13/the-secret-behind-teslas-phenomenal-sales-strategy/

https://www.youtube.com/watch?v=QRVia4VZq1s

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s