Problem
The Tesla Model Y makes it official debut in Singapore : Mid-sized SUV prices starting from $142,471 (before COE); Deliveries start Aug 2022)
Tesla's midsized electric SUV, the Model Y, has been officially unveiled in Singapore in July 2022. It's available in two models: The base rear-wheel drive (RWD) version, and the all-wheel drive Performance Dual Motor version. Currently, only the five-seat model is available for Singapore. At current record-breaking COE prices for July he Model Y RWD costs around S$255k, and the Performance model S$298k. Both cars receive the highest VES rating of A1 (S$25,000 rebate).
The Dual Motor Performance, Tesla All-Wheel Drive has two-ultra responsive independent electric motors that digitally control torque to the front and rear wheels for a better handling, traction, and stability. Model Y is capable in rain, snow, mud and offroad.
The Model Y has a 70kWh battery pack, and the Performance a larger 90kWh battery pack, but both have the same Supercharger-capable charging tech. At the maximum Supercharger 250kW rate, the Model Y (both variants) will go from 10 to 80 percent in 'around 20 minutes' says Tesla. 'Regular' 11kW AC charging will take approximately seven hours for a full charge for the RWD, and approximately seven to eight hours for the Performance. The Model Y RWD has a 'basic vehicle' warranty of four years/80,000km, a battery and drive unit warranty of eight years and 160,000km. Tesla's autopilot's advanced safety and convenience features are designed to assist you with the most burdensome parts of driving. With an elevated seating position and low dash, the driver has a commanding view of the road ahead. The interior of Model Y is simple and clean, with a 15-inch touch screen, immersive sound system and an expansive all-glass roof that creates extra headroom and provides a seamless view of the sky.
Based on information from Tesla's sales portal, we can see that like any Tesla, model Y is designed to be the safest vehicle in its class. The low centre of gravity, rigid body structure and large crumple zones provide unparallel protection. Model Y provides maximum versatility, able to carry 5 passengers and their cargo.
Tesla Singapore opened its first dedicated retail store in Southeast Asia at Millenia Walk in Jan 2022. It allows test drives along East coast parkway's scenic waterfront. The Model Y has been available to order on the company's website for a month, but its appearance at Ion marked an official debut for the car in Singapore, with deliveries set to commence in August 2022.
Product Differentiation is Form, Features, Customisation, Performance Quality Conformance Quality, Durability, Reliability, Repairability, Style.
Services Differentiation is Ordering Ease, Delivery, Installation, Customer Training, Customer Consulting, Maintenance & Repair, Returns
Product Mix Pricing: Loss-leader pricing, Captive pricing, By-product pricing, Optional-feature pricing, Two-part pricing, Product-bundling pricing
Using the above case scenario on Tesla, answer the following discussion questions:
Question I
Illustrate three ways (examples) of how The Tesla Model Y has achieved or can achieve product and services differentiation.
Question II
Discuss two possible ways that Tesla can adopt product mix pricing.