Tesla Segmentation, Targeting and Positioning: overview

By John Dudovskiy
May 1, 2021

Tesla segmentation, targeting and positioning is a chain of activities that involves identification of a specific population segment(s) and developing products to cater for the needs and wants of consumers belonging to the segment(s).

Segmentation involves dividing population into groups according to certain characteristics such as age, social status, psychological characteristics etc. Targeting implies choosing specific groups (segments) identified as a result of segmentation to sell products to. Positioning is the selection and application of the marketing mix the most suitable for the target customer segment.

Tesla Segmentation, Targeting and Positioning

Tesla uses mono-segment positioning.  Accordingly, the alternative fuel vehicles manufacturer targets individuals concerned with negative environmental implications of oil and gas consumption. Tesla products are considered to be expensive for average consumers and thus, the target customer segment for the company is wealthy individuals and households.

At the same time, Tesla may switch from mono-segment to multi segment type of positioning in the foreseeable future. According to Tesla business strategy announced by Elon Musk in a blog post in 2006, the company builds sports car, uses that money to build an affordable car and uses that money to build an even more affordable car. [1]

Tesla also uses anticipatory type of positioning. Specifically, the electric automaker positions its products and services for a market segment that has low turnover with the anticipation that the turnover will increase in the future. The electric automaker’s energy storage products such as Powerwall 2 and Powerpack 2 can be mentioned as examples for anticipatory positioning.

The following table illustrates Tesla segmentation, targeting and positioning:

Type of segmen-tation Segmen-tation criteria Tesla target customer segment

 

Vehicles: Model S, Model X, Model 3, Future Consumer and Commercial Evs Energy storage: Powerwall 2, Powerpack 2 Solar energy systems: solar panels, inverters, racking, electrical hardware, monitoring device
 

Geog-raphic

Region North America, Asia, Europe North America, Asia, Europe North America, Asia, Europe
Density Urban & Rural Urban & Rural Urban & Rural
 

 

 

Demog-raphic

Age 30+ 25-65 30-65
Gender Mostly males, but also females Mostly males, but also females Mostly males, but also females
Life-cycle stage Full Nest I

Full Nest II

Full Nest III

Full Nest I

Full Nest II

Full Nest III

Full Nest I

Full Nest II

Full Nest III

Occupa-tion Employees, professionals, senior manager, executives Employees, professionals, senior manager, executives Employees, professionals, senior manager, executives
Income levels High Upper middle and high Upper middle and high
Behavi-oral Degree of loyalty ‘Hard core loyals’

‘Soft core loyals’

‘Switchers’

‘Hard core loyals’

‘Soft core loyals’

‘Switchers’

‘Hard core loyals’

‘Soft core loyals’

‘Switchers’

Benefits sought Status

Perception of being environmentally friendly

Long-term cost effectivenss

Long-term cost effectivenss

Perception of being environmentally friendly

Long-term cost effectivenss

Perception of being environmentally friendly

Persona-lity Determined & ambitious Determined & ambitious Determined & ambitious
User status Non-users, potential users, first-time users Non-users, potential users, first-time users Non-users, potential users, first-time users
Psycho-graphic Social class Middle class & upper class Middle class & upper class Middle class & upper class
Life-style[2] Aspirer, Succeeder, Explorer, Reformer

Environmentally cautious|

Aspirer, Succeeder, Explorer, Reformer

Environmentally cautious|

Aspirer, Succeeder, Explorer, Reformer

Environmentally cautious|

Tesla segmentation, targeting and positioning

Tesla Inc. Report contains the above analysis of Tesla segmentation, targeting and positioning and Tesla marketing strategy in general. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis, Ansoff Matrix and McKinsey 7S Model on Tesla. Moreover, the report contains analyses of Tesla leadership, organizational structure and organizational culture. The report also comprises discussions of Tesla business strategy, ecosystem and addresses issues of corporate social responsibility.

Tesla Inc. Report 2021

 

[1] Musk, E. (2006) “The Secret Tesla Motors Master Plan (just between you and me)” Tesla. Available at: https://www.tesla.com/blog/secret-tesla-motors-master-plan-just-between-you-and-me

[2]According to Cross Cultural Consumer Characterization by Young & Rubican



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