Tesla Target Analysis
Tesla Company Product
Tesla is an American company with a particular interest in electric cars and manufacturing of green energy solutions like solar power. This paper will attempt to demystify on the Tesla cars, which run on an electric charge instead of the traditional gasoline. Apparently, the company was founded by a group of American engineers who were out to prove a concept on the reliability of an electric car in 2003 (Tesla, n.d.). Seeing the worsening consequences of global warming due to increased harmful emissions by the internal combustion engine that runs on gasoline, these engineers wanted to prove to the world that green cars were not just a novelty of the science community but a workable idea whose time has come.
Demographics Target Market
When it comes to targeting market and understanding how they work, demographics play an essential role in shaping up our understanding of the same. By knowing who is likely to buy the Tesla electric cars, the company can position itself better to take full advantage of the available market. The market niche for the Tesla cars is not only limited to the domestic American market since the problem solved by the innovative cars is universal. This means that the cars also have a demand in the foreign market. The individuals who are most likely to purchase the Tesla electric cars in the American market are those people who care about the environment and would like to contribute to finding a solution to the global warming nightmare. Moreover, the potential customers for the Tesla cars are most probably individuals with small power plants in their homes who have a surplus of electricity, which they inject back to the national grid. In the foreign market, the profile of the potential customers of the Tesla electric cars includes car enthusiasts who like to collect cars as a hobby. Environmentalists are also most likely to appear on the list.
Desired Geographical Area
For any product, there is always a desired geographical area where the marketing team prefers to focus on due to the promise of success. In the case of the Tesla electric cars, the desired domestic geographical area is Detroit. This is due to the existence of many car-manufacturing plants in that locality. It will be a good idea to have the Tesla cars go head to head and compete with the other cars made there. As for the foreign geographical area, Qatar seems like a better pick due to the availability of reliable and cheap electricity plus a well-heeled population that will quickly afford the cars.
Number of People against Demographic Profile
According to the United States Census Bureau (2016) data, there are approximately 672,795 people in Detroit. This population is big enough to generate decent Tesla car sales. As of 2018, Qatar population is estimated at 2,677,919 (Worldometers, 2018). Again, this number chooses Qatar a very plausible one considering other factors like a wealthy population that does not shy away from the good things of life.
Nielsen Claritas Psychographics
Psychographics is an essential aspect of any target market analysis. The process entails understanding the target clients regarding their desires, attitudes among many other criteria that are psychological (Rahtz et al., 2015). In the domestic market, most target clients are likely to ask themselves why buy an electric car? The fear of the unknown here is going to be the toughest nut to crack, as most people are yet to understand the cars’ energy consumption capabilities. In the foreign market, the opinion that electric cars require a constant supply of electricity for them to function is going to be a challenge that the marketing team should never ignore. What happens to the car when the national grid experiences a glitch?
Analysis of Demographic and Psychographic Information
From the demographic and psychological information gathered above, it is evident that the idea of selling an electric car has a definite chance of success in the domestic market as well as the foreign market. Both markets are ripe and ready to embrace the car. However, a subtle difference exists between the domestic and the foreign markets since the former does not require a lot of marketing effort to sell the cars because Americans are already long exposed to the electric car concept. As for the latter, it will require a significant marketing effort to drill the concept down.
Rahtz, R.D., Sirgy, J.M., & Kosenko, R. (2015). Using demographics and psychographic dimensions to discriminate between mature heavy and light television users: An exploratory analysis. Proceedings of the 1988 Academy of Marketing Science (AMS) Annual Conference, 2-7.
United States Census Bureau. (2016). QuickFacts: Detroit City, Michigan. Retrieved 12 March 2018 from https://www.census.gov/quickfacts/fact/table/detroitcitymichigan/PST045217
Tesla. (n.d.). About Tesla. Retrieved 12 March 2018 from https://www.tesla.com/about
Worldometers. (2018). Qatar population (LIVE). Retrieved 12 March 2018 from http://www.worldometers.info/world-population/qatar-population/