Marketing Management: Industry Background, Company Background and Market Positioning

This report provides an overview of marketing management in the context of the automotive industry, focusing on Tesla. It discusses the industry background, company background, and market positioning of Tesla. It also includes a marketing audit of Tesla, analyzing the internal and external factors affecting the company. The report highlights the opportunities and challenges in the UK market for electrical vehicles.

Marketing Management

TABLE OF CONTENT
INTRODUCTION................................................................................................................................3
1 Industry Background, Company Background and Market Positioning........................................3
2. Marketing audit internal and external of the company Tesla.......................................................5
3 New product that the company Tesla could launch....................................................................11
CONCLUSION..................................................................................................................................12
REFERENCES...................................................................................................................................13

INTRODUCTION
The ultimate goal of marketing management is the generation of acceptable profits which
could be achieved by selling of products and services offered to the consumers. Creating tactics as
well as strategies to satisfy the demands for the company by generation of policies and programs of
marketing under the process of implementation, controlling, organising and planning is known as
marketing management. Marketing is done in order to create and maintain the organisational
demands of services and goods. Moreover, the demands in the market of the product or level of its
compositions is been controled by the functions of business known as marketing. In the field of
marketing all the manegerial functions are been performed by the marketing management. Thus,
implementations of appropriate strategies as well as identifications of market opportunities is been
explored by the marketing management, therefore, promoting trade as well as consumer need access
is been done by the creative management functions known as marketing management
(Mullakhmetov and et.al, 2016). The report will discuss about the electric vehicle market of UK
which holds shares the approx market value of around $2.4 billion in 2018 and thus provides a great
opportunity for growth to automative companies (United Kingdom electric vehicle market by
vehicle type, 2020). In this report it has been discussed about the automotive company Tesla, where
it has been discussed about its industries background and its market positioning, followed by the
PESTEL and SWOT analysis of the company Tesla in order to determine its potentials of market
growth. Lasty, in this report it has been discussed about the electrical bus which is a new product
which the company Tesla could launch on the basis of its SWOT analysis followed by the 4P's
model for the new product (Foroudi and et.al, 2017).
1 Industry Background, Company Background and Market Positioning
BACKGROUND OF INDUSTRY
Automotive industry is a wide range of organizations which involves designing,
development, marketing, manufacturing and selling of motor vehicles. Compared to revenue aspect
this sector has the largest revenue generation (Chernev, 2018). The industry has a turnover of £82
billion with around 1.5 million passenger vehicles including 85,000 commercial vehicles. The
industry lost a lot of customers in 2014. Around 2.71 million engines were produced in 2018 in
United Kingdom. There are 38,500 employees in this industry. Automotive industry in now
investing in electrical Buss so that non-renewable resources can be preserved and not exploited.
United Kingdom is having the 12th largest producer of automotive industry in the world which is a
great improvement for the organization. There are safety measures which are being added in
automotive vehicles because it is basic right of customers to get safety with products which they are
purchasing. Air bags have been added in Buss so that if there are any accidents then customers are

safe. Electric Buss are still being improved so that customers can get luxury which consumers
expect. Customer needs are changing therefore designing of Buss have to be improved or changed
according to trends of customers.
BACKGROUND OF COMPANY
Tesla is an energy storage and automotive company which is producing electrical Buss so
that they can preserve non-renewable resources. As of 2018, company had 45,000 employees with a
net income of $0.98 billion and revenue of $21.46 billion (Tesla, Inc, 2020). Tesla has the highest
sales of electronic vehicles as of 2018. Tesla is producing out at least 367,500 vehicles as of 2019.
There are a lot of improvement or development which is taking place in vehicles which company is
producing so that they can benefit from that factor. Needs and demands of customers are being met
so that they can make most from that factor so that they can capture more market and customers.
Tesla has introduced power pack, power wall, mega pack batteries, solar panels, solar roof tiles, and
other products related to automotive industry (Haider and et.al., 2017). With time Tesla is being
able to reach out the customers better and the new product Tesla has come up with will capture the
industry very quickly.
 Segmentation
It is very important for Tesla to have a segmented market for themselves because only then
the company will be able to have a competitive advantage in market (Deepak and Jeyakumar,
2019). The company has developed a different customer base for themselves so that they can have a
competitive advantage and that is done by the company by providing the customers with electrical
Buss. Aim and objective of the company is well-placed in market for a long run and that is making
the environment of the world improve so that the customers can have a healthy lifestyle. Using of
renewable resources is a very brilliant idea which the organization has come up with. This method
is not being used in the market which is making the organization have an upper hand for
themselves. Experience in this field will make Tesla have a competitive advantage in market.
 Targeting
Tesla has targeted the market in a very different approach which will make the organization
have a long run in the market. Customers are not being targeted by the organization because the
vision of the company is very clear with the customers therefore there are a lot of customers which
are getting attracted in the organization (Kotler and et.al., 2018). Customers understand the view
point of Tesla which is a great advantage for the organization since there are a lot of supports which
the organization has made over years. There are a lot of changes are taking place in the organization
so that the firm can attract more customers by providing them the right product.
 Positioning
Loyal customers are there in the organization which is making the organization have a

competitive advantage in the market. The brand image is very well-built by Tesla so that they can
attract more customers in the organization. It is a very important factor for the organization to get
more customers to understand the organizations vision and mission so that the organization can
make a better understanding and revenue for themselves. Customers have a lot of complains about
the products Tesla is making therefore to gain the trust of the customers Tesla is working very hard
to make the changes and satisfy their customers from time to time.
 Planning
The organization is not online but the customers are updated about the changes which are
taking place in the business. Tesla will have to start online marketing for themselves so that they
can reach out to more customers in the organization (Keegan, 2017). Customers must be contacted
from time to time so that Tesla can inform the customers that what are the changes which are taking
place in the organization. Online marketing will also help Tesla to have an automated customer's in
the firm. It is very essential for the organization to have more customers who like this method
which Tesla has taken for themselves so that the customers shift from fuel to gas and electrical.
Tesla has a very well-made structure for themselves so that they can make the change's int he
market accordingly. Customers will shift from other products to Tesla products very soon because
this is a requirement in the world to use these type of Buss.
Tesla is unique because they are having a very futuristic plan for market which is making the
company have a lot of advantage. Improvement is still in process so that all the demands can be met
which will make the customers more satisfied. Luxury aspect of the customers is also being dealt
with in the company which is making the company have a uniqueness in the organization. Luxury is
being added to the electrical Buss as much as possible so that the customers get attracted to the
products of Tesla.
Unique Selling Proposition
Tesla is unique because they are having a very futuristic plan for market which is making the
company have a lot of advantage. Improvement is still in process so that all the demands can be met
which will make the customers more satisfied. Luxury aspect of the customers is also being dealt
with in the company which is making the company have a uniqueness in the organization. Tesla is
one of the leading company because they have a control over the nmarket in their own ways
because they have understood the demands of the cusomters. It is very important for the
organization to understand the demands and needs of the cusomters so that they can make the
proper place for themselves in the market.
2. Marketing audit internal and external of the company Tesla
Tesla has vast range of opportunities in UK market for its electrical vehicles. The factors

such as sruging pollution level, affordability and increasing need of low and premium priced
elecrical vehicels encourages the growth of electrical vehicles in UK market. Climate change act
2008 of UK and climate control commission UK have been taking initiatives to encourage the
support for electrical vehicles. It is also incrasing populatity of these products among UK target
markets. The external market audit for the electrical vehciles is as follows:
PESTEL analysis of Tesla
Political factors that affecting Tesla
The various incentives provided by the government gives the organisation Tesla an
opportunity to strengthen its financial performance. Purchasing an electric vehicle could qualify the
customer with tax credit in accordance to the Federal government i.e. Upto $7500 tax credit is been
offered by the government (The Plug-In Electric Vehicle Tax Credit, 2019). The strategy of
intensive growth of Tesla as well as for its favorable environment of business, there are several
major markets for the industry of automobile.
Developments of electrical and hybrid vehicles is been supported by the government. Loan at a low
interest of $465 is been granted by the department of justice (The Plug-In Electric Vehicle Tax
Credit, 2019). Such kind of assistance enhances the easiness for the organsiation to promote and
develop electrical vehicles which are not only innovative and efficient but are also essential for the
sustainability and development goals of UK government. Expansion in products by the company is
been facilitated by the amount of loan granted to the company. Thus, a move to next step is been
helped by the loan that is granted (Wagner and Eggert, 2016).
Economic factors that are affecting Tesla
Sustainable development and regulation of pollution levels through automobile industry is
one of the essential criteria and pollicy of UK government. Thus government is providing loans and
necessary financial support to organisations which are working with electrical vehicles. It is making
UK as an attractive market for growth on the basis of strong and supportive economy which has
favourable environment for the same.
Global economies commection with electric Bus is gaining popularity everyday. By the year 2020 it
is expected that the growth in global economy would be remaining 3%. market of electric vehicle in
the year 2018 is around $39.8 billion and it is expected that by 2025 it would be reaching $1.5
trillion (Personal electric vehicle EV cars market size is expected to exhibit USD 1.5 trillion by
2025, 2020). For the company to capatalize, economic factor is one of the great opportunity
available for the company. Decrease in the cost of the battries is the another economic factor as cost
of electric vehicle is mostly dependent on the cost of battery. One of the great opportynuity is the
developments of companies powerwall batteries as the company is making it more over accessible
as well as affordable such that making themselves capable to do productions of more affordable

electric vehicles.
One of the another good news for the company Tesla is the reduction in the cost of the material as
with the lower cost of materials the consumers of the Bus could be availed with the more cost
effective vehicles (Usui, 2017).
Social factors affecting the Tesla
As for the individuals who prefer most of the eco friendly products, than the concept of
electric Buss is facinating these individuals. As for the environment it is better to use Buss that run
on electricity rather than on the fuel. Running cost as well as terms of maintenance are
comparetively lower for the electric Buss thus this makes it less expensive. Moreover, automobiles
by these company is sustainable to the environment. Additionally, social status is the another social
factor affecting the business of the comapany as it is expected that the social stutus of and
individual is been increased by having an electric Bus. UK social groups are greatly felxible and
concerned about the need of environmental protection and sustainability. Thus launching of
electrical vehicles is greatly appreciated by communities. The flexibility from people will benefit
Tesla in positive way for making its new product successful.
Technological factors that are affecting Tesla
The company is been affected positively as well as negatively due to rapid technological
changes, thus threats as well as opportunies both are been offered by the technology to the
organisation Tesla. As to to remain at the competitive edge in the market place the technology helps
in managing the company. Therefore, the portfolio of products by the company is been effectively
enhanced by the technology. Moreover, advancement in technology could bring more competitive
advantage for the company over its competitors as the company, if possible, is expecting to make
fully driverless Bus in the near furture. In terms of technology UK can be considered as good
choice for the Tesla. Organisation will get all necessary technologies and resources for the
development of its product. However the quick and increasing technological devleopment also
encourages the tough competition for the Tesla as more and more service providers are coming up
with new and advanced technology based solutions for electric vehicles.
It is obvious that the technologies became obsolete with the passage of time so it is essential to get
regular update and upgrades in an obsolete technology. Moreover, the company Tesla might had to
face the negative as well as positive impacts of the technology is all of its electric vehicles is
obsolete on the roads.
Environmental factors that are affecting Tesla
Usage of electicity for moving as well as development of Buss which are environment
friendly is one of the key concern that the company Tesla is currently focusing on. The this creates
several opportunities for the company Tesla in regards to the environment factors. As in the

traditional Buss the emission of Busbon in the environment has brought great negative impact but
now the company is more concern towards the environmental factors thus it is stricty following
regualtions of environment and developing the Buss such that it would barely have negative impact
on the environment. UK is greatly concerned with for the issue of its environmental sustainability.
Thus environment factors such as need of electric vehicle to reduce pollution is helpful for success
of the new Tesla product.
Addtionally, the company became successful in becoming the leader of the industry as it had build a
very strong recognisation as well as brand image while being very much concern towards the
environment. Concept of energy saving so as to maintain its focus on sustainability is been achieved
by the developments of electric vehicles. Furthermore, the organisation is focusing on to its supply
chain so that it could be more energy efficient, this is achieved by the company's strict concern
towards the environmental impacts and thus in this way the company has gained good reputations in
the market place (Chonko and Hunt, 2018).
Legal factor that are affecting Tesla
The delivery of Bus to the customers by the company Tesla is been affected by the several of
the law suits and regulatory issues. As temporarly many of the states had blocked the direct delivery
of Buss to the customers by the manufacturers itself. An engagement of third party delership is very
much essential in such states according to the legislations of those states. Thus, this has affected the
profitability of the company as dealers keep their margins for giving services to the customers and
this makes the Bus more expensive. Regualtions regarding consumptions of energy as well as rights
of patents are the other legal issues that affects the company. Thus, in order to have smooth running
of the operations of the business the company Tesla had comply several regulations and laws. Along
with strict copyright and patent regulation UK also has strict regulation for employment and
business regulation. The failure to comply with such regulations or the legal disputes in UK can
lead to great losses for the Tesla. Thus for making electrical buses successful in UK, Tesla must
ensure that it ensures the legal compliance.
SWOT analysis of Tesla
Strength of Tesla
Brand equity in automobile industry is one of important strength possessed by the company
Tesla. The thing that matters most is the customers satisfaction as well as their good experience
with the product. The company Tesla excels both increased competitions as well as customers. Due
to innovative nature the brand Tesla has acquired lots of fame and due to which it has got huge
sales. One of the another reason of trusted and strong brand image is the company's quality product
as well as excellent user experiences. Thus, achievement of higher revenue and sales along with the

extra competive advantage is been achieved by this organisation due to its strong brand equity.
All across the globe the company is expanding its galleries and stores. Only in china and US the
company is having more than 30 service stations and stores. Moreover, for inhancing the customer
base the brand is expanding it super charger network by investing more and more in opening its
galleries and stores thus these stores could be used for the purpose of marketing as well. Arracting
to higher end customers is done by brands premium galleries and stores at the metropolitan cities.
Building of supercharge network throughout north America, Europe and Asia so as to enhance its
customers convenience all across the geographic areas.
Quality is core focus since the foundations of the company. Along with it the brand is known for its
Buss of premium segments. Attractive styling is the another strength of the company apart from its
high performances. Addtionally, the company has produced best electric Bus in the world while
focusing on its innovation technologies. Furthermore, the organisation had kept on increasing its
investments in the development and research of its products every year. As the company is expertise
in automotive engineering and thus, this made the company global producers of electric vehicles
(Johnsen, 2018).
Weaknesses of Tesla
With the every year, the company's operational cost is been increasing. Not only the quality
of raw material that has been used in the Buss is adding to the revenue cost but the cost at the
several other areas too. For the growth in super charge network as well as in its dealers the company
is continuously ramping up its productions. Thus, over the past three years there is a faster growth
that has been observed in the companies revenue costs.
The growth in the business as well as its competitiveness is been reduced by the companies
weaknesses. The following weaknesses which makes the companies furture growth suffers are
Higher prises
Limited chain of supply
Limited presence in the market
limited presence in the market is one of key weakness of the company Tesla. As in terms of market
the organisation is only been able to generate its major revenue through US and a small portion
from China and other developing countries. Moreover, in the overseas market, the rapid growth
developments proved to be the weakness for the companies internal strategic factors. Addtionally,
the company's rapid expansions in the other markets is been limited by the it weakness in its supply
chain network. Buss having internal combustion engines are the products of company Tesla whose
prices are comparetively higher than the other competing Bus companies. Therefore, the market
share of the company as well as customer base is been highly affected by the high prices of the
companies product. Thus, this had made the company slower in generating huge revenues.

Furthermore, in order to have rapid growth in global world as well as to have global expansions, the
company Tesla is needed to reform its strategies so that it will have positive impact on the business
of the company.
Opportunities of Tesla
The various opportunities possesed by the company Tesla are
Diversification in the busniness
Expansions in the global supply chain
Expansions in the global sale
Expansion in the global sales is one of the great opportunity that is possesed by the company Tesla
as it is facing the weakness in the same. As in most of the economies the brand has insufficiently
lower presence in the market such as in the Asian market the company is having comparetively very
lower presence thus, it could increase its revenue by expanding in these market and in several other
renewable energy markets. Expansions in sales as well as in the production operations is been
supported by the supply chain management which is the opportunity that the company Tesla could
possess in order to support its global expansions. Moreover, through diversification in the products
the company could easily inhance its performance in global sales just like other larger firms such as
general motors. Exposures to the risks in the markets of automobiles could be reduced by the
acquiring and establishing of factors of external strategies. Therefore, international expansions of
the business of Tesla is been benifited by the Tesla's SWOT analysis.
Threats faced by Tesla
The company Tesla is facing several threats that prevents it to maximize its profits from its
various opportunities and strengths. Such as due to competitions in the electric vehicles global
market the company could not been able to generate the desired or potential revenue nor from its
solar panels, batteries and etc. Although the company is successful in generating huge profits but it
is essential for the company to address its threats so as to maintain resilience despite of automotive
industries changing environment.
Regulations of dealerships
Fluctuations in the prices of the materials
Aggressive competions
Competitions between automotive companies is been very aggressive. As currently several other
companies started producing the the electric Buss which has proved to be the biggest threat to the
company Tesla. On one of the weakness of the compnay it could be determined that fluctuations in
the prices of the raw material is the another threat which the company Tesla is facing. For the
storage of energy products, the compnay is concern towards the increasing costs of Lithium and as
its price is fluctuating, thus this had proved the another threat to the comany. Regulations in

dealerships is one of the another threat faced by this brand of Tesla. As with the involvement of
dealership i.e. Third party involvement the price of the product gets increases, thus in this way the
company could get higher profits by direct selling of the Buss to the customers. But on the other
had several of the states does not allow direct selling and had made regutaions that there must be an
involvement of third party in the business. Therefore, this had created another threat for the
company in doing its business. Furthermore, it could be considered that in order to remain
competitive in front of the firms of other large automobiles the company Tesla must maintain its
innovative invenstions in the automobile industry (Quelch, 2017).
3 New product that the company Tesla could launch
The new product the company Tesla could launch is buses. In order to stand above the other
competitions the company Tesla uses the strategy of marketing mix. Thus in the huge industry of
automobile in order to have competitive advantage the company Tesla regularly undergos the
analysis of 4P's which are price, promotion, place and product. In the several components of
marketing mix the company Tesla maintains its manegerial control significantly. Thus, for the
purpose to have maximum profits as well as to reach the target customers the company Busies out
such strategies. Moreover, in order to expand in the overseas market as well as penetrate in the
market usages of strategy of mareting mix support the company to a greate extent (Chonko and
Hunt, 2018).
Product
Selling of product to the targetted customer by identification of organisational output is one
of the element of marketing mix known as product. As the company is concern towards the
production of product which the could give the company the maximum profits, thus for this the
organisation tends to produce which could fulfil the objectives of the corporations. The organisation
Tesla could launch Tesla Buses, as currently the company is not engaged in the production of this
product. Thus, by doing business in this product the company would capable to generate huge
profits and could increase its revenue as well as its market share (Johnsen, 2018). These buses will
have fixed pantographs for charging at various bus stops as well as in depot. They will also consist
of monitoring and controlling units so taht charging can be regulateld and batteries can be
safeguarded.
Place
For the new electirical bus initially Tesla will launch its products in UK only instead of
haivng ga global approach unlike its other products. Reaching to the targeted customer is done by
analysis of place. This analysis could be Busried out by the element of marketing mix. Vanues and
places are considered to be very important where the comany could do its business. Generally, the

company Tesla expand its products rather than expansion in place attribute. Tesla will launch its
product in entire UK on various locations. Eacho f the UK destination will have more than one store
as well as galleries the company could add more places for reaching its desired customers.
Currently the company has several of its charging stations, service centers as well as its self owned
galleries and stores to better serve its customers with the best in class services.
Promotions
In order to develop the corporate brand and to present in front of its customers in accordance
to their expectations is Busried out by the tactics and strategies of marketing communication. There
fore, the promotional mix of the organisation Tesla uses various powerful strategies to convey its
message of new product of Tesla bus through direct marketing, sales promotions, through public
relations, from personal selling as well as through viral marketing.
Price
This element of marketing mix covers the price levels as well as its related strategies. As the
price of the product is totally dependent on the scale of production, profitability targets as well as
level of quality. As the products of the company Tesla are produced on the limited production
scales, with higher profitability as well as by maintaing the premium brand product the company
uses pricing strategies such as market oriented pricing as well as premium pricing strategy. The
premium pricing strategy is totally dependent on the company's unique product which could
capabilities to have higher level of profitability margins (Quelch, 2017). The proposed price for the
electric vehicles will be $500,000.
CONCLUSION
This report could be concluded as, the ultimate goal of marketing management is the generation of
acceptable profits which could be achieved by selling of products and services offered to the
consumers. Creating tactics as well as strategies to satisfy the demands for the company by
generation of policies and programs of marketing under the process of implementation, controlling,
organising and planning is known as marketing management. Marketing is done in order to create
and maintain the organisational demands of services and goods. Moreover, the demands in the
market of the product or level of its compositions is been controled by the functions of business
known as marketing. In the field of marketing all the manegerial functions are been performed by
the marketing management. Thus, implementations of appropriate strategies as well as
identifications of market opportunities is been explored by the marketing management, therefore,
promoting trade as well as consumer need access is been done by the creative management
functions known as marketing management (Kotabe and Helsen, 2020).

REFERENCES
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Keegan, W.J., 2017. Global marketing management. Pearson India.
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Kotabe, M. and Helsen, K., 2020. Global marketing management. Wiley.
Quelch, J.A., 2017. Global marketing management: a casebook.
Johnsen, T.E., 2018. Purchasing and supply management in an industrial marketing perspective.
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Chonko, L.B. and Hunt, S.D., 2018. Reflections on ethical issues in marketing management: An
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