All marketers known that in order to gain sales, a company needs a strong distribution channel. After all, when a customer wants to purchase a product, the product must be easily available – or else the customer is likely to purchase a different item that is easier to find. Yet, despite its lack of dealerships, Tesla seems to be doing quite well.
But, since Tesla Motors wants to sell its cars directly to consumers, where does one buy a Tesla if not from a car dealership? The mall! Tesla now has 200 showrooms worldwide and also accepts online orders (charge cards are accepted). However, in states where direct sales to consumers are prohibited, Tesla retail stores can only serve as showrooms and not conduct transactions.
Recently, Tesla revamped its flagship retail store in San Jose to include interactive displays for four themes: safety, autopilot features, battery charging network, and dual motors that propel each axel. Tesla’s stores are typically located in luxury shopping malls where the stores focus on the brand experience and expose shoppers to the technology and quality of the cars.
Shopping at the mall just got a lot more exciting.
Group Activities and Discussion Questions:
- Discuss the importance of distribution.
- Show Tesla’s Web site: http://www.teslamotors.com/
- Show video of a Tesla store tour: https://youtu.be/fnFvXwpm2To
- Review the product life cycle. What stage are Tesla products at in the life cycle? What is the impact of distribution to gain market share?
- What is the role of the stores?
- Discuss the Tesla brand. How does the brand experience translate to the showrooms?
- Divide students into teams and have the teams research the legislation about auto dealerships. What are the benefits and disadvantages of this system for consumers? For dealers?
Source: Brandchannel.com, CNN Money, other news sources
