Founded by Elon Musk in 2003 the primary objective of the organization is to make the world free of oil based combustion engines and help the environment through electric cars which are affordable and at the same time gives a great fun drive (About Tesla, 2013).
Tesla Motors has been able to provide a car which is both beautiful in design and effective in dealing with environmental issues, Innovation is the key at Tesla motors and the intent is there to constantly upgrade the technology in view of a sustainable energy future (About Tesla, 2013).
The product line at Tesla includes Roadster, Model X and Model S (Tesla Premium Electric Vehicles, 2013).
The technological benchmark at Tesla Motors is its 100% electric powertrain which in essence is the rock behind the way forward for Tesla Motors and its awesomeness (About Tesla, 2013).
The growth of every business and its product is dependent on the repeat purchase of the product or service it offers, however to be able to reach a level which is called profitable, it is of primary importance to focus on the target market and engage them with a product or service with an emotive connect.
The triggers need to be looked into which may lead to buying, in this case scenario since Tesla Motors is serving a Niche market segment it is imperative that the target market is defined and then segmented to create a space in the minds of the consumers.
The target market for Tesla Motors in view of its product which is positioned as a premium product and being a niche product caters to a specific target market ranging from wealthy, environmentalists, high end professionals and technological savvy consumers who are constantly looking into things which matches their profile and are different.
The price range of the cars offered by Tesla is around $60000 to $100000 which in essence gives credence to the above mentioned since it is consumers with disposable income who have a penchant for adventure and both stature in terms of things they use in daily life.
It is important to note that the market segmentation criteria is also based on the fact the way the Tesla Motors position itself as a luxury brand and in California is the third biggest luxury car behind the two giants of the automobile industry Mercedes E Class and the BMW 5 Series (Siimon Reynolds, 2013).
The marketing techniques of Tesla is worth mentioning as with regards to its target market it is important that they are communicated with panache about the product and they hail their association with Tesla as a part of their culture.
The showrooms are not located on the main roads; interestingly they are located in the showrooms with brands like Zara, Bloomingdales and Seas Candy which helped the brand have maximum eyeballs due to its location, however the location also garnered people’s attention who have zero interest in the product (Siimon Reynolds, 2013).
The target market chosen by the author will be the same i.e. wealthy, environmentalists, high end professionals and technological savvy consumers in view of the fact that the product is different and has created a niche for itself in the market and thus by trying to make it a more mass centric product will derail the basic target market who consider themselves niche.
However Tesla has also launched its new line of low cost cars accessible to the masses (Nichola Groom, 2009).
The macro trends factors also indicate to the fact that due to the economic recession and its subsequent impact the consumers are more towards saving rather than spending and only consumers with disposable income will be able to buy product for fun and entertainment.
The demographics of target market i.e. successful young entrepreneurs and mature professional & vice versa aged from 24-54 years predominantly male and A+ (Examiner, 2009).
The psychographics of the selected target market also speaks for itself as the target market is interested in socializing having a lifestyle which in fun and thrilling and have opinion on issues which matters which brings into light the green effect and its benefits (Examiner, 2009).
Also Personality wise the selected target audience is confident, modern, artistic, intelligent and in control. They are technology savvy and follow the new trends and the product of Tesla Motors is more about a trend as sustainability is in effect world over.
The core brand identity for the target market is the products Uniqueness, Innovation with being fun and entertaining. The extended brand identity is that the cars are value for money and are seen as a market symbol.
Thus the above mentioned factors impacted my decision to have a niche target audience and grow within this category for some time and when the life cycle needs a reshuffle the target market can be expanded as per the needs and wants of the organizational goals and vision.
Examiner. “Tesla Motor Company marketing sedan to upper middle class green-friendly 'Baby Boomer' generation”. Examiner Leisure. 7 June 2009. Web. 8 November 2013
Nichola Groom. “Tesla targets broader audience with electric sedan”. Reuters. 26 March 2009. Web. 8 November 2013
Siimon Reynolds.”Why You should copy Teslas Way of Marketing”. Forbes. 9 January 2013. Web. 8 November 2013
Tesla Motors. About Tesla, 2013. Web. Date of access.8 November 2013
Tesla Motors. Premium Electric Vehicles, 2013. Web. Date of access.8 November 2013