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Tesla Motors Innovation United States Manufacturers

-Tesla Motors is an innovative US car manufacturer making a high performance all electric sports car, the Roadster. They have announced production plans for a new model four door sedan car, the model S, to be delivered in 2012.

You are the Channels Manager for Tesla Motors. Using marketing concepts, explain how you would develop a distribution strategy for your cars.

-Tesla Motors Website Store Locator page at

-Kristen Hall-Geisler. (2008, March 9). Alternative Dealers Selling Alternative Power. New York Times (Late Edition (east Coast)), p. AU.10. Retrieved July 19, 2010, from Banking Information Source. (Document ID: 1442569501).

-Going green not boring with new electric Tesla. (2009, April 6). The Gazette,C.3. Retrieved July 19, 2010, from ProQuest Newsstand. (Document ID: 1676638341).

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Market Segmentation Strategies for Tesla Motors
The heydays of electric cars have come back again; mainly due to combat air pollution and to reduce CO2 emissions. The key to formulating distribution strategies is to identify needs of customer and determining how these needs can be fulfilled. For Tesla Motors, the market segmentation includes socio-demographic variables, psycho-graphic variables, and behavioral variables.
Males Females
Sample size 450 325
Age 52 48
Married % 80% 80.5%
Children % 72% 85%
Income>10,000 SEK pm % 93.5% 81.5%
Number of cars within family 2.3 1.4
Estimated total driving per week (Km) 528 385

From the analysis it is evident that in contrast to earlier target market, today's customers are married with children.
Behavioral factors: Customers seek various features in making a purchase. These could include:
1. Benefits sought: Customers would be attracted to the low operating cost of Roadster model S.
2. Usage cost: Customers could get drawn to the fact that model S is as good as a conventional car in terms of ...

Solution Summary

Tesla Motors innovations in the United States manufacturers are examined.