Tag Archives: innovation

Tesla Shifts Retail Strategy, Then Shifts Again

Tesla, Tesla, Tesla… It’s so much fun to track this company. Not only are the products innovative and exciting to follow, it is also a marketing case study in nearly constant motion.

Case in point: At the end of February the company announced it would be closing its retail stores in order to cut costs and lower the pricing of the Model 3 to make it more affordable (at a starting price of $35,000). Tesla believes that car buyers will increasingly rely on on-line ordering instead of physical stores. Tesla stated that in North America, a customer can buy a Tesla on their phone in approximately a minute. Which begs the question, just because customers can do this, will they do it?

However, two weeks later, Tesla reversed its strategy and stated it would instead keep most of its 378 retail stores and would instead raise prices of cars by 3%, excluding the Model 3 cars. Tesla hoped to cut costs by closing stores, but landlords, customers, car dealers, and lawmakers protested the closings. The stores will still function as a showroom and location for test-drives, but sales will still be done online.

Where do you want to stop for your next car?

Group Activities and Discussion Questions:

  1. Discuss the distribution model used by Tesla and compare it to the distribution model used by other automotive manufacturers.
  2. Here is an interesting video on why Tesla cars cost so much: https://www.wsj.com/video/the-secret-to-why-a-tesla-costs-so-much-hint-batteries/65F3A21D-0837-4DA6-B739-612124815603.html (Hint – it’s the batteries.)
  3. Poll students: How many would buy a car online instead of at a dealer/store?
  4. What are advantages and disadvantages of buying cars online only?
  5. Why has Tesla disrupted the traditional automotive sales model?
  6. Will other automotive companies follow the Tesla model?

Source: Wall Street Journal, New York Times, Assoc. Press, other news sources

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Snack Robots are Invading Campuses

Robots are invading! Ok, maybe they aren’t exactly invading the entire nation, but they do seem to be infiltrating some college campuses. Rest easy though – these robots seek not to dominate, but instead to satisfy students’ craving for delivered snacks.

The self-driving robots are being tested for “last mile delivery” courtesy of PepsiCo, and have been deployed to serve students at the University of the Pacific’s campus in Stockton, Calif. The robots, developed by robotic company Robby Technologies, carry a variety of healthy snacks and drinks from Pepsi’s ‘Hello Goodness’ product line. Ordering and delivery on campus is easy using an app that is available to all students with a University of the Pacific email address. With a single charge, the robot can travel 20 miles to find a multitude of consumers eager for a quick snack.

The robots do have a normal work hour shift of 9-5 (sorry, no late night munchies) and deliver products to 50 areas around the campus. The robots are equipped with cameras and headlights so that they can navigate in rain and darkness. And, with six-wheels and all-wheel drive, curbs, rough paths, and steep hills can be handled with ease.

Students – are you hungry now?

Group Activities and Discussion Questions:

  1. Discuss the impact of robots and drones on marketing.
  2. Show a video of the Pepsi SnackBots: https://youtu.be/skUbYVmRogI
  3. More information can be found at Pepsi’s Website: https://www.pepsico.com/news/press-release/pepsicos-hello-goodness-snackbot-is-off-to-college01032019
  4. Information on the robots from Robby: https://robby.io
  5. Discuss how to build and use a SWOT analysis grid: strengths, weaknesses, opportunities, and threats (internal and external factors).
  6. Break students into teams and have each team build a SWOT analysis grid.
  7. Based on the analysis, what are the issues and risks that might occur?
  8. Debrief by building SWOT analysis grid on the white board.

Source: Ad Week, other news sources

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Cool Tech Products from the Consumer Electronics Show

Most students are unaware of it, but the Consumer Electronics Show (CES) is one of the largest and most influential showcases in the United States for introducing innovative products from around the globe. This year, CES exhibited more than 4,500 companies, including manufacturing, transportation, entertainment, robotics, automotive, and more. The show is produced by the Consumer Technology Association which represents the $398 billion U.S. consumer technology industry.

This year, CES was held in Las Vegas, Nev., and hosted 182,000 attendees who viewed products in categories such as 3D printing, gaming, robotics, sports, drones, fitness, health and wellness, retailing, wearables, and a variety of other product groupings. CES regularly announces thousands of new products, including many that we all know and use, such as:

  • High Definition TV
  • Satellite Radio
  • Microsoft Xbox
  • Blu-Ray DVD
  • OCED TV and 3D HDTV
  • Tablets, notebooks
  • Virtual reality

This year’s show provided a lot of great new products and technologies, including foldable phones, scooters, roll-able TV screens, flying cars, robots, and even an elevated walking car. While not all of the products at the event will make it into full production and into our homes and garages, they are nonetheless interesting to consider and think about.

What would you like to see at CES?

Group Activities and Discussion Questions:

  1. Discuss the purpose of CES show and how innovation fits into it.
  2. View the CES Web site: https://www.ces.tech/
  3. Show a summary video about CES from the Wall Street Journal: https://www.wsj.com/video/the-best-stuff-we-saw-at-ces-2019/E4A868A0-AEC6-4EFB-8A09-97E51993C57B.html
  4. Additional summary videos can be found on YouTube: https://youtu.be/mHreov2zl1U
  5. Divide students into teams. Have each team select a product featured at CES.
  6. Instruct students to research the products online, and define a target market for the product.
  7. Which ones do they think will be winners in the marketplace?

Source:  Pierce, D. & Bindley, K. (8 January 2019). The craziest and coolest technologies that might even matter. Wall Street Journal.

 

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