The Tesla Model 3: A Taste of Tesla for $276,000

The Model 3 is Tesla's least expensive car to date, and it competes in the executive sedan segment, which includes best-sellers such as the BMW 3 Series and Mercedes-Benz C-Class.

Pricing starts at S$276,000 with COE for the standard plus model, which has a 283 horsepower motor and 54 kilowatt-hour battery. We drove the most powerful, most expensive version instead.

The Dual Motor Performance has two motors with a combined 473hp, a larger 75kWh battery, plus optimised suspension and brakes. It has a range of more than 500km, and even on Singapore roads and traffic, it was able to do more than 400 km.

Stamp on the accelerator and the Model 3 is frankly, quite shocking. The instant and violent acceleration of the electric motors give plenty of veracity to the claimed 0 -100km/h time of 3.4 seconds, more than enough to leave many supercars in the dust.

The Zen-like cockpit has almost no buttons. Instead, all functions are controlled via the massive, 15-inch touchscreen system -everything from the direction of the air con vents, and even the steering wheel adjustment. Although many luxury cars have moved to touchscreen, it was not to this extent. What sets the Model 3 apart is that it seems designed with the key purpose of making life easier.

If you don't feel like dealing with bad traffic? Let the Autopilot assist system steer, brake and accelerate for you (under your supervision). Other interesting features includes sentry mode to prevent theft, there's even a Dog Mode (which keeps the air-con running), which allows you to leave your dog in the car while you grab a coffee. Amazing what you can do with batteries.

(Adapted from: https://www.businesstimes.com.sg/hub/bt-motoring/tesla-model-3-review-a-taste-of-tesla-for-s276k)

1.Using the above case scenario on Tesla, answer the following discussion questions: Describe the first four (4) levels of the customer value hierarchy for The Tesla Model 3.

a.Core Benefit

b.Basic Product

c.Expected Product

d.Augmented Product

2.Illustrate three (3) ways (examples) in which the Tesla Model 3 has achieved or can achieve product and services differentiation.

(Form / Features / Customization / Performance Quality / Conformance Quality / Durability / Reparability / Style / Ordering Ease / Delivery / Installation / Customer Training, Customer Consulting / Maintenance & Repair, Returns)

3.Briefly explain the possible ways that Tesla can adopt product mix pricing.

Product line pricing:

Establish perceived quality differences for price steps

Optional-feature pricing:

Offer optional features, products & services

Captive-product pricing:

Require the use of ancillary or captive products

Two-part pricing:

Fixed fee plus variable usage fee

By-product pricing:

By-product should be priced based on their value

Product-bundling pricing:

Pure bundling and mixed bundling