Running head: CREATING OFFERINGS & USING CHANNELS TO CREATE VALUE
FOR CUSTOMERS1
MRKT310
Creating Offerings & Using Channels to Create Value for Customers
MRKT310
Part 1
Type of Consumer Offering
The Model 3 – A Specialty Product
Tesla offers several different products, but this will be focused on their automotive
offerings, more specifically the Tesla Model 3. The Model 3 is a specialty product, but not one
that will require the customer to put in much effort as the ordering process is extremely
convenient. Tesla’s target market is varied but for the Model 3 specifically, they have cast a
wide net. The car is perfect for small urban families and single sportscar enthusiasts alike. This
demographic will surely follow the Model 3 throughout its lifecycle as other Tesla products
are more suited for large families, or rural environments (Model X & Y).
Style & Performance
The Model 3 is a sleek 4 door family sedan, which is only offered by Tesla and the
$150,000 Porsche Taycan. The performance of the Model 3 is also unmatched in its price
range, to get into a faster EV, someone would need to spend upwards of $70,000. Choosing the
Model 3
Performance trim level for $55,000 then places the Model 3 alongside of the Porsche
Taycan a third of the cost.
Technology
Tesla also puts as much technology into its vehicles as it can legally get away with.
Features like “summon” which will actually summon the car to pick you up at the front of a
parking lot, or “Auto-Pilot” which is the best self-driving system available in any vehicle,
electric or not. As young consumers come of age, the electronics in the car are a huge selling
, point. Tesla recognizes that the world is slowly shifting away from keys, with RFID door
locks
becoming commonplace. The Model 3 can also be unlocked with a key card in your wallet, or
with the app installed onto your smartphone. When approaching the car, it will detect your
phone and unlock the doors, placing your phone in the center console starts the car.
Additionally, almost every feature can be controlled from the app.
Cost of Ownership
The cost of ownership is also a big selling point for all electric cars but even more so
than the Model 3 when you consider the type of cars it competes with. The BMW 330i is the
most similar gas-powered vehicle to the Model 3 and sells for similar MSRP. When fuel (gas
or electricity) and maintenance costs are compared, the Tesla owner can save up to $17,000
over a
3-year time period (Schmidt, 2020). This would mean that a consumer with only a
$45,000 budget for base model BMW 330i, could spent over $60,000 on a fully loaded
Model 3 and would have still spent less 3 years later.
Product Lifecycle
The Model 3 is firmly planted in the growth stage of its life cycle with Q1 of 2021
sales figures showing it to be the #1 selling premium sedan in the world (Kane, 2021). While
the competition has been producing their premium sedans for decades, the Model 3 which
launched in 2017, has already surpassed them all. In 2-3 years, we will see the Model 3
mature and most likely before it goes into a decline, Tesla will introduce a slightly restyled
model with new bumpers, lighting components, and an interior makeover. This is typically
done towards the end of a vehicles lifecycle as it introduces a new model without severely
impacting the body and drivetrain manufacturing processes.
Part
2
FOR CUSTOMERS1
MRKT310
Creating Offerings & Using Channels to Create Value for Customers
MRKT310
Part 1
Type of Consumer Offering
The Model 3 – A Specialty Product
Tesla offers several different products, but this will be focused on their automotive
offerings, more specifically the Tesla Model 3. The Model 3 is a specialty product, but not one
that will require the customer to put in much effort as the ordering process is extremely
convenient. Tesla’s target market is varied but for the Model 3 specifically, they have cast a
wide net. The car is perfect for small urban families and single sportscar enthusiasts alike. This
demographic will surely follow the Model 3 throughout its lifecycle as other Tesla products
are more suited for large families, or rural environments (Model X & Y).
Style & Performance
The Model 3 is a sleek 4 door family sedan, which is only offered by Tesla and the
$150,000 Porsche Taycan. The performance of the Model 3 is also unmatched in its price
range, to get into a faster EV, someone would need to spend upwards of $70,000. Choosing the
Model 3
Performance trim level for $55,000 then places the Model 3 alongside of the Porsche
Taycan a third of the cost.
Technology
Tesla also puts as much technology into its vehicles as it can legally get away with.
Features like “summon” which will actually summon the car to pick you up at the front of a
parking lot, or “Auto-Pilot” which is the best self-driving system available in any vehicle,
electric or not. As young consumers come of age, the electronics in the car are a huge selling
, point. Tesla recognizes that the world is slowly shifting away from keys, with RFID door
locks
becoming commonplace. The Model 3 can also be unlocked with a key card in your wallet, or
with the app installed onto your smartphone. When approaching the car, it will detect your
phone and unlock the doors, placing your phone in the center console starts the car.
Additionally, almost every feature can be controlled from the app.
Cost of Ownership
The cost of ownership is also a big selling point for all electric cars but even more so
than the Model 3 when you consider the type of cars it competes with. The BMW 330i is the
most similar gas-powered vehicle to the Model 3 and sells for similar MSRP. When fuel (gas
or electricity) and maintenance costs are compared, the Tesla owner can save up to $17,000
over a
3-year time period (Schmidt, 2020). This would mean that a consumer with only a
$45,000 budget for base model BMW 330i, could spent over $60,000 on a fully loaded
Model 3 and would have still spent less 3 years later.
Product Lifecycle
The Model 3 is firmly planted in the growth stage of its life cycle with Q1 of 2021
sales figures showing it to be the #1 selling premium sedan in the world (Kane, 2021). While
the competition has been producing their premium sedans for decades, the Model 3 which
launched in 2017, has already surpassed them all. In 2-3 years, we will see the Model 3
mature and most likely before it goes into a decline, Tesla will introduce a slightly restyled
model with new bumpers, lighting components, and an interior makeover. This is typically
done towards the end of a vehicles lifecycle as it introduces a new model without severely
impacting the body and drivetrain manufacturing processes.
Part
2
