In 2015, the Powerwall was launched by Tesla. The powerwall is a rechargeable lithium ion battery that can be mounted on the wall. Tesla manufactures the pack and module while the cells of the powerwall come from Panasonic. The powerwall can save electricity that was generated from solar panels. It gets energy from the utility grid while there are low rates (Muoio, 2016). The energy will then be stored for future use. Aside from this, the powerwall serves as backup source of power in case there would be power shortage. Many changes were already made by Tesla to improve its powerwall. There have been incremental improvements on the design and technicalities of the product.
With the increasing awareness of the people on global warming and how it negatively impacts our planet Earth, the powerwall is can be seen as a good investment by many households. It may be an expensive investment at first, but in the long run, they would benefit a lot from it. What Tesla needs to do is to invest on marketing and distribution channels to increase the awareness of the people about powerwall and its importance. In marketing, distribution channels are part of the classic 4Ps. It is one of the key elements in the marketing strategy of any company. It helps in expanding the firm’s reach and increasing its revenue.
There are various distribution channels that can be used. However, specifically for Tesla and its powerwall home battery, there are three distribution channels that I would recommend. First is to sell directly to end users. Since the powerwall is a technical product that requires enough product knowledge, it is better if Tesla would hire a sales team that would sell directly to the households. In this way, they would be able to explain well how the product works, its parts, why it is important, and how it could benefit them. This would add value to the powerwall because the end users would receive first hand information. A website can be created where consumers may contact the company or the sales team if they want to inquire about the product.
Another possible distribution channel is to sell through a dealer network. In this distribution channel, the product will be sold through a geographical network of dealers. These dealers would be the one to sell the end- users. In order for the dealers to market and distribute their products well, they must given with incentives or discounts for every powerwall they will sell. The dealers may also service the product. In this case, Tesla will focus on the dealers since they would serve as the customers. A strong program and training session must be implemented so the dealers would have enough knowledge about the product. The dealers would be given support through materials and marketing campaigns. This distribution channel would add value to the powerwall because the market reach of the product would increase. More customers would be reached in a period of time and this would increase their awareness about the product.
Lastly, the powerwall may be sold through VAR or value-added reseller. Since Tesla is known for its solar power panels, they can sell the powerwall and bundles it with its other products and services. Then they would resell it as a package. They can also work with another company and bundles it with that company’s products or services. The company will be called as a Value Added Reseller since it would add value to the product if it would be combined with the other company’s product or services. VAR may be effective for end users because it can show the right configurations and products and then it would implement a system wherein the product of Tesla would be included.
It is better if Tesla would use more than one distribution channel in order to increase its revenue and market share at a quicker time. Also, with these distribution channels, the end users are able to receive more information and service that they need prior to buying the product and even after purchasing it. If Tesla would be able to reach to end users through VAR and dealers, it would create a lot of successful marketing programs that would increase its revenue would be committed to the success of the company.
Reference:
Muoio, Danielle. (2016). Here’s everything you need to know about Tesla’s home battery. Retrieved from www.businessinsider.com/everything-about-tesla-powerwall-2-battery-2016-11/#in-2015 –tesla-unveiled-the-powerwall-a-rechargeable-lithium-ion-battery
