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Running head: Creating new product 1

Creating new product 6

Creating new product

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Tesla

It is a manufacturing company that focuses on clean energy such as solar products, battery energy storage from home to grid scale and electric cars. The company is at growth stage having been founded in 2013 and is in its growing sales with a team of sales and growing orders worldwide.

Product or service

I will be creating a driver app called eTescab which is involved with transport services. This app links the customer with a cab just at the comfort of the customer irrespective of the geographical location of the client. eTescab app will be available on google play store for the customers who use android phones and app store for the customers who use iPhone. All that one will be required to do so as to get the cab services is downloading the app and installing in a gadget then start the app. Upon opening the app, simple details will be required such as permission to access the location of the gadget which assists the Tesla system to locate the location of the customer. The app will connect the customer with a ride at the shortest time possible which will be facilitated by the evenly distributed drivers and ride providers all over the country under eTescab network.

The package in this app includes rides with or without a driver depending on the preferences of the customer. In relation to the quality of rides, there will be different quality levels depending on the payment packages chosen on the app. All the prices set for each package are affordable and worth to the quality of the ride received and the distance covered in miles. The apps supports both customer rides and delivery of goods and services to the most convenient location of the consumer.

Unique features or proprietary aspects of the product

eTescab will be differentiated from other driver apps existing in the market in terms of convenience aspect, pricing aspect, quality aspect, and time aspect as well safety. In relation to convenience, the app will be easily accessible for download on various online app stores requiring less data and storage on your device. Once the customer books a ride using the app, the system will trace the last location of the device which ensures the customer gets the ride even when the gadget goes off in cases of low charge. Rides obtained through the app will not be limited to certain distance coverage or locations provided it is in the allowed jurisdiction under the law. The app is also convenient in that one can have particular goods and services delivered at the convenience of their homes irrespective of their location from point of supply. In relation to pricing aspect, the app has affordable price packages which are easily accessible on the homepage of the app. These prices will be classified depending on the type of the ride or whether the ride has a driver or not as well as the distance covered in miles. In relation to rides with no drivers, the cabs will be accessible in specified place which will also be accessible through the eTescab app.

Quality will be enhanced by use of high-end features on the rides used through modern electric cars manufactured by Tesla Company. The quality packages of the rides will be dependent on the price package. The app also ensures timeliness of the services where the customer does not have to wait long for the ride and it is for this reason that eTescab management team will avail cabs in different regions to ensure easier access. In relation to safety, all vehicles and participants under the eTescab network in terms of both drivers, customers in transit and support staff will be covered under Tesla Company insurance policy.

In protecting the app against copying and misuse by unauthorized parties, Tesla Company will be acquiring patent under intellectual property right which restricts other parties from copying the prototypes of the app. Through the combination of the features explained and protection of the app, the app will easily penetrate into the market and acquire large market share through differentiation focus. This will translate to competitive advantage to Tesla Company.

Research and development

The eTescab innovation has been developed through the discovery of market gap in terms of customer satisfaction and at the same time being a viable source of income for the company to increase its profit margin. This profit margin is created as the app requires low investment requirement while it is projected to give high positive returns.

New and Follow-on Products

Based on the data collected in relation to the market needs, Tesla Company intends to support the eTescab through the automobile product line of the company. This will be done by ensuring quality rides with Model 3, Model S, Model X and Model Y electric cars giving the customer a life-time experience with the modern technology.

Production

eTescab will require various production input in terms of capital resources in terms of funds and equipment, human resources. In availing the capital resources required, Tesla Company will partner with various financial institutions to supplement with additional funds and offer sub-contracts with trusted information technology companies to supply the required equipment. In relation to human resources required, the company intends to use an external firm which can supply competent drivers on contract basis.

eTescab is unique because it uses modern and energy efficient cabs for customers’ ride which is also supported by the company’s name and reputation in the global market as automobile manufacturer. Also, the driver-less rides gives the customer privacy and freedom to enjoy the ride service at their own comfort while still insured against all kind of risks.

The Market

eTescab will be competing in ridership market and which is a new market to the company in this product line. The company has been competing in the automobile market through electric cars manufacture.

Market segment

Market segment in this context refers to customer groups who will have a similar response to marketing mix elements. eTescab will have three market segments: corporate segment, business segment and family segment based on location, interests and needs. In meeting the needs of each segment, the rides will be differentiated from each other based on the preferences and needs of the segment.

I expect to penetrate the different market segments by combining marketing mix elements in terms of pricing, position, promotion that suit each segment. For instance, the corporate segment comprised of people working in corporate offices, Tesla Company will promote eTescab through online platforms as they spend most time on online platforms. Pricing will depend on the level of executive treatment while positioning of the product will be based on quality for price. Tesla Company will also advertise the app on television commercials and highway billboards as it is strategic platform for all the market segments to access.

Competition

There is a high level of competition in relation to driver app in the country with key players charging relatively similar prices. For instance, our potential direct competitors, Uber and Lyft holds a market share of approximately 59% and 39% respectively holding a total market share of 98% . However, with the uniqueness in our product design, we will manage to secure a substantial market share over time (Pratt, 2019).

References

Pratt, A. N., Morris, E. A., Zhou, Y., Khan, S., & Chowdhury, M. (2019). What do riders tweet about the people that they meet? Analyzing online commentary about UberPool and Lyft Shared/Lyft Line. Transportation research part F: traffic psychology and behavior, 62, 459-472.