Market Size
For Tesla Motors, Inc. (TM), the most general definition of the market is the automotive one; about 88 million units a year worldwide is sold within it (Perkowski, 2014, para. 1). However, TM concentrates on producing luxury cars, and this sub-market reached 350 billion euros in 2014, demonstrating an increase of 10% compared to 2013 (Bloomberg Business, 2015, para. 1; Statista, 2015b, para. 1; Statista, 2014, para. 1-3). It should be mentioned that the luxury vehicles sub-market accounts for almost 50% of the car industry profits, which could explain TM’s choice (Trefis Team, 2015, para. 2). Finally, TM produces electric cars; this sub-market is still developing and has not yet conquered a significant share of the major automotive markets (Perkowski, 2014).
Brand Position and Brand Image
The brand position is defined by the specifics of the sub-market that a company chooses (Lee, Yao, Mizerski & Lambert, 2015, p. 154). The brand position of TM is the luxury electric cars, which means that the company combines the relatively underrepresented segment that allows future growth with the most profitable one (Bloomberg Business, 2015).
As for the brand image, according to Forbes, TM “is less about a car than it is about a revolution” (Davis, 2014, para. 5). Indeed, TM is working in the electric sector that is still developing and still can be called innovative; other significant features of the brand include luxuriousness, beauty, and quality that account for a positive feedback from the users (Davis, 2014).
Market Penetration
Market penetration is defined by the company’s share of customers within the market (Ensor & Ashford, 2007, p. 162). In 2015, TM appears to be the leader of the US electric car market (Crothers, 2015). Model S, the most popular car of TM, has received extremely good feedback from its owners: 99 points out of 100 as suggested by the survey of Consumer Reports magazine, which granted it the status of the most successful luxury car brand in America (Davis, 2014, para. 6).
Market Share. Competition
TM is not a manufacturing leader in the automotive market: during 2014, TM delivered more than 31,500 Model S cars, the cars that the company primarily sells (Young, 2015, para. 6). Operating mostly in the US, China, and Norway, the company has achieved the $3,198.36 million revenue, which makes its share in the luxury car market less than 1% in terms of revenue (Bloomberg Business, 2015, para. 1; Statista, 2015, para. 3). However, the significant advantage of TM is the Tesla Model S, a unique luxury electric car that comprises the Long Range Electric Vehicle car market, accounting for 100% of its share (Trefis Team, 2015, para. 2). With other models, the primary competitors of TM include Audi and BMW high-end electric vehicles (Trefis Team, 2015).
Conclusion
The specifics of TM brand position restrict the company to a relatively small segment of the automotive industry, but this segment is expected to develop in future. Apart from that, TM offers a unique model that is difficult to challenge due to the combination of its qualities. This model is the embodiment of TM brand image (high-end and high-tech) that is positively evaluated by customers. It can be concluded that the company has penetrated its market to a significant extent and can even be considered its leader in the US.
References
Bloomberg Business. (2015). Tesla Motors Inc. Web.
Crothers, B. (2015). Tesla ‘Most Popular’ U.S. Electric Vehicle In Q1, While Norway Leads Globally, Says IHS. Forbes.
Davis, S. (2014). Tesla, Tesla, Tesla: Building A Power Brand From Scratch. Forbes.
Ensor, J., & Ashford, R. (2007). Strategic Marketing. London, UK: Routledge.
Lee, A., Yao, J., Mizerski, R., & Lambert, C. (2015). The Strategy of Global Branding and Brand Equity. London, UK: Routledge.
Perkowski, J. (2015). Electric Cars: A Review Of 2014. Forbes.
Statista. (2014). Global luxury car market size from 2010 to 2014.
Statista. (2015a). Statistics and Facts about the Global Automotive Industry.
Statista. (2015b). Statistics and Facts about Tesla.
Trefis Team. (2014). Tesla’s Unique Position In The Car Market Is One Of Its Biggest Strengths. Forbes.
Young, A. (2014). Tesla Motors (TSLA) Sales 2015: Did Investors Misread The Q1 Numbers? 2015 Model S Deliveries Include Cars Sold In 2014. The International Business Times.