Re-write in your own word with new information & Discuss briefly the target segment of swapping battery systems at Tesla electrical charging station

 Target segment ( swapping battery system at Tesla electrical charging station )

 We will segment our market into three categories such as behavioral, psychographic, and demographic. Our primary market will target individuals concerned with the negative environmental consequences of oil and gas consumption. Our second market will focus on the middle and upper class because Tesla vehicles are considered to be expensive for average people. Our middle class is households with an income range of $55,000 - $373,000. Our upper class is households with an income greater than $373,000 a year. (Snider, 2020). Furthermore, our third market will focus by regions such as North America, Asia, and Europe.

 Competitive Advantage by Segment
Individuals concerned with the negative environmental consequences of oil and gas consumption

 Regarding individuals who wish for more eco-friendly transportation, Tesla has the
advantage of reputation. U.S. News listed multiple Tesla in Best Electric Cars for 2021, with Tesla Model S being ranked number 1 and the Tesla Model 3 being ranked number 2 (Loveday and Taylor, 2020). Also, according to the Tesla website, Tesla vehicles have saved over 3 million tons of CO2 emissions in the U.S. (Tesla, n.d.). Properly advertising that last figure will bring the more environmentally conscious consumers into the Tesla fold and should be used to tie into how this electric battery will make electric vehicles on par with their less eco-friendly counterparts. 

 

Middle- and upper-class consumers
 The middle class consists of those whose annual household income is between two-thirds and double the national median income (Pew Research Center, 2015). Based on that definition, the upper class would be those whose annual household income is greater than double the national median income.
 Regarding the middle- and upper-class consumer market, luxury is very appealing and
Tesla has the advantage of reputation in terms of luxury vehicle brands. Tesla has two vehicles ranked in the top two of the U.S. News 6 best luxury hybrid and electric cars (U.S. News & World Report, 2021). The more efficient electric car battery can be seen as luxurious if the battery is advertised alongside the luxury vehicle brands it will be placed inside.

 

North American Market
 In North America, Tesla has an advantage in terms of current market share in the electric car market. Tesla has 79% of the electric car market in the U.S. currently (Lambert, 2021). Tesla is also the only company with a vehicle in the best luxury hybrid and electric cars that is a U.S. native company (U.S. News & World Report, 2021). This can be an advantage for certain consumers who prefer products "Made in the USA". In Canada, Tesla vehicles are the most popular electric vehicles, and the Tesla Model 3 is the best-selling pure electric vehicle in the country (Cain, n.d.). Therefore, Tesla can utilize these large market shares to sell their new electric car battery by connecting them with the Tesla vehicles being sold in these regions.

 

Asian Market
 In Asia, Tesla again has an advantage in terms of current market share. In China, one of
the most populated countries in the region, Tesla sales more than doubled in 2020 and the Tesla Model 3 was the best-selling electric vehicle that same year (Cheng, 2021). Tesla also has a factory located in Shanghai (Doll, 2021). This can decrease costs for Tesla, which means that Tesla can decrease the price of their vehicles manufactured and sold in that region. Similar to the North American Market, Tesla should link the new battery to its electric cars in order to take advantage of the large market shares.

 

European Market
 Europe is home to many luxury brands and there is a current boom for those brands.
However, there is a threat to the home court advantage that European-based luxury brands coming from more technologically advanced American and Chinese brands (Sanderson, 2018). Therefore, Tesla has an advantage in having a reputation for luxury and for technological innovation. If Tesla uses both the luxury and technological aspects in marketing the new battery, Tesla could gain a good foothold in the European market.

 Positioning by Segment

Target Markets

 The market for eco-friendly cars has become more competitive as concerns about the
environment have increased. Research shows that consumers "preference for renewable energy, fuel-efficient cars and other green products over gasoline-based products is increasing" (Musonera & Cagle, 2019). Tesla is the market leader in the electric car market and has positioned itself as one of the most recognized brands. Tesla is known for sporty, luxury, eco-friendly vehicles and this appeals to the upper middle class and others who are environmentally conscious. "Focusing on the production of affordable luxury, safe electric cars will decrease fossil-fuel consumption, and will also provide high value to customers" (Musonera & Cagle, 2019). Tesla holds approximately 18% of the global electric vehicle market as of the end of 2020
(Lambert, 2020). Establishing additional production facilities in Europe and Asia is key to increasing the affordability of vehicles in those markets and will allow Tesla to remain
competitive and increase their market share.