Question

Question 1

Step 1

Identify which channel and intermediaries will provide the best coverage of the target market for the Tesla Model S.

Step 2

Specify which channel and intermediaries will best satisfy the important buying requirements of the target market.

Step 3

Determine which channel and intermediaries will be the most profitable.

Step 4

Select your channel(s) and intermediary (ies).

Answer 1

Question 1

Step 1

Identify which channel and intermediaries will provide the best coverage of the target market for the Tesla Model S.

One level channel would be the most appropriate channel to provide extensive reach for determination of the best coverage in the respective market environment.

Using retailers/ showrooms as the their main tool as an intermediary would provide adequate level of support in holding the cars for retail and for benefiting the organisation utilising the direct channel.

Step 2

Specify which channel and intermediaries will best satisfy the important buying requirements of the target market.

“Producer (Tesla)→→Retailer→Consumer.”

Channel strategy is “Direct Channel.”

Direct channel of distribution would be the most preferable way to increase customer satisfaction.

Step 3

Determine which channel and intermediaries will be the most profitable.

“Producer (Tesla)→→Retailer→Consumer.”

Channel strategy is “Direct Channel.”

Definitely using a direct channel approach would be the most preferable in this specific segment as it would reduce any other cost involved in operation and provide adequate level of profits to the organisation.

Step 4

Select your channel(s) and intermediary (ies).

“Producer (Tesla)→→Retailer→Consumer.”

Channel strategy is “Direct Channel.”

All of the channel and intermediaries are same in each and every step which is essential for Tesla to increase its adaptability in the respective environment as well as to increase their profits by using such a specific channel.

P.S.- Please leave a comment if any explanation is needed.