Marketing and Management for TESLA: A Study on Effective Marketing Strategies

The study provides extensive knowledge and understanding about the importance of making effective marketing strategy in order to create brand awareness and brand identity for TESLA. It includes market research, marketing strategy, competition analysis, product, place, price, promotions, relationship/partnerships, channels of distribution, marketing campaign, financials, and recommendations.

Running head: MARKETING AND MANAGEMENT
Marketing and Management
Name of the Student
Name of the University
Author’s Note

2
MARKETING AND MANAGEMENT
Table of Contents
1. Introduction and objective:..........................................................................................................5
2. Market research:..........................................................................................................................5
3. Marketing strategy:......................................................................................................................6
4. The competition:..........................................................................................................................7
5. Product:........................................................................................................................................9
6. Place:............................................................................................................................................9
7. Price:............................................................................................................................................9
8. Promotions:..................................................................................................................................9
9. Relationship/Partnerships:...........................................................................................................9
10. Channels of distribution:............................................................................................................9
11. Marketing campaign:...............................................................................................................10
12. The financials:.........................................................................................................................10
13. Recommendations:..................................................................................................................14
14. Summary and conclusion:........................................................................................................14
Reference List:...............................................................................................................................17

3
MARKETING AND MANAGEMENT
Executive Summary
The study provided in-depth insight on the impact of marketing plan to gain brand
identity. TESLA is famous for one of the most prestigious American Multinational Corporations
specifically famous for independent automaker. In order to expand the business in the
international market TESLA has focused to select appropriate marketing strategy and social
media campaign. By highlighting its major issues along with market position, the study has
provided major recommendations for future scope of TESLA with the help of which the
organization can gain competitive advantages.

4
MARKETING AND MANAGEMENT
1. Introduction and objective:
The study provides extensive knowledge and understanding about the importance of
making effective marketing strategy in order to create brand awareness and brand identity.
TESLA is primarily known as one of the most recognizable American Multinational
Corporations especially popular in the automobile industry as the independent automaker. The
business experts of this organization has identified that the marketing plan within the business
services needs to be improved for expanding the entire business process enormously in the global
market (Morgan 2012). The primary objectives of TESLA while running their business process
are as follows:
 To render product diversification and service affordability for drawing the attention of global
customers
 To increase the number of target audience by making effective market segmentation strategy
 To improve promotional budget plan for creating brand image and brand identity
2. Market research:
The research and development team of TESLA has collected data from made primary
source and secondary sources. By involving the customers in a survey method the data analysts
of TESLA have identified that the business experts need to focus on innovative design on
products for grabbing the attention of international customers (Baker 2014). On the other hand,
after making effective secondary data analysis it has also been observed that TESLA has
occupied 29% of market share in US electric vehicle market. After making an in-depth research
based on the annual report of TESLA the company holds US$ 370.34 stock price in the market

5
MARKETING AND MANAGEMENT
of California. After making a detailed analysis from primary as secondary data it can be
summarised that the organization needs to improve their product design and product diversity
(Dwivedi, Kapoor and Chen 2015). At the same time, it has also been observed that the
organization needs to improve their operation process as well. As per operation system of
TESLA the product manufacturing division after receiving the order to clients starts to design
their products and services (Mulhern 2013). In this kind of situation, the organization would have
to face immense challenges in creating brand awareness in the market.
3. Marketing strategy:
Marketing strategy enables the business experts in drawing the customers’ attention with
the help of numerous promotional and marketing activities in order to meet organizational goals
and objectives (Jhally 2014). Marketing strategy is constituted with four major types including
direct marketing, sales promotion, personal selling and social media promotion. In order to
gather brand image and brand identity the organization like TELSA has selected both direct
marketing procedure and social media strategy (Morgan, Katsikeas and Vorhies 2012).
Direct marketing strategy:
Direct marketing is very much effective in making direct communication with the
customers. As a result, the sales executives can get direct feedback from the customers regarding
the quality of products and services (Moriarty et al. 2014). Based on most of the familiar
shopping malls and event houses of California the marketing executives of TESLA like to focus
on communicate with mall purchaser. Consequently, the business executives can get direct
feedback from the customers (Jones et al. 2014). Based on this feedback the sales executives
tend to change their marketing strategy.

6
MARKETING AND MANAGEMENT
Social media strategy:
Social media strategy is one of the most effective ways based on which both the business
executives and customers can get equal benefits and facilities while communicating with each
other. With the help of social media promotion the customers of different geographical
boundaries can get overview about the products and services (Jugenheimer, Sheehan and Kelley
2015). TESLA by using social media platform has gathered immense feedback from the
customers of different psychological backgrounds and attitudes. As a result, the organization like
TESLA as an independent automaker has increased the number of designed products and
services.
4. The competition:
While analysing market competition the business experts have to focus on evaluating the
market position of the organization in comparison to its other competitors (Morgan 2012). It has
been observed that Hyundai, Wagon, Avant, Toyota is gaining the market position by increasing
its stock price because of high configuration set up. These brands are flexible enough in
delivering effective services in the suburban areas (Lee and Lam 2012). On the other hand,
TESLA is only flexible in providing good services in urban destinations. As a result, people
belonging to suburb areas are not able to purchase this brand.

7
MARKETING AND MANAGEMENT
Moderate
Suburban Urban
Luxury
Figure: Market position of TESLA
(Source: As created by the Author)
5. Product:
Tesla maintains the high quality raw materials and automobile parts during their
manufacturing process. They offer the highly advanced electronic automotive products that
would win the attention of the target customers. The inclination towards the innovative
automobile technologies is the major focus of the company to build the sustainable position. The
company even expanded the product line with the Model X, which is the quickest, safest, and
high defined software technology that has received the safety rating across each category from
the National Highway Traffic Safety Administration. The efficient product line is thus much
attractive for the targeted customers.
Hyundai
Wagon Avant
TESLA

8
MARKETING AND MANAGEMENT
6. Place:
The company is originally situated in California. However, the efficiency level of the
automobile cars helped the company to expand the business successfully in other countries as
well.
7. Price:
The company maintains the premium pricing structure for selling the products. People
with high income rate and the premium profile usually remain as the targeted customers. The
pricing structure is even adjusted with the superior materials used in the automobile parts during
the manufacturing process. Hence, the company keeps the price quite higher to derive more
profits from their premium clients.
8. Promotions:
The company undertakes the various promotional media to attract more amounts of
customers. More specifically direct marketing process and social media marketing are the major
promotional media that the company has been using for decades. It has been observed that due to
the current overreaching trends of social media, the company has selected this purpose as their
dominant promotional platform. The reviews collected and shared on the official page are much
feasible for the company to develop more concerns regarding the future improvements. It is even
a helpful strategy for the company to increase the positive word of mouth to draw the attention of
the customers.

9
MARKETING AND MANAGEMENT
9. Relationship/Partnerships:
The extensive research on the marketing procedures followed by the company indicates
that Tesla maintains the efficient relationships with their customers. Mainly the premium clients
deal with the brand due to which they receive the considerable benefits and discounts from Tesla.
The effective relationship maintained by the company is thus quite profitable to retain the
sustainable position in a competitive landscape.
10. Channels of distribution:
Selection of distribution channel is one of the most significant aspects based on which the
customers tend to focus whether they will receive the services from organization or not (Lidstone
and MacLennan 2017). TESLA in quest of distributing their products has primarily focused on
using the platform of social media as well as traditional media.
Social media promotion:
Social media can involve the customers of various geographical boundaries and
attitudes. Using social media tools the service providers of TESLA can get direct feedback from
target audence about the quality of products and services (Liu, Kasturiratne and Moizer 2012).
The platforms based on which customers can provide their feedback in new media platform
include Facebook, Twitter, WhatApp, Instagram and so on. On the other hand, Youtube is one of
the most significant social media vehicles based on which the customers can get effective audio-
visual treats.
Channels of traditional media:

10
MARKETING AND MANAGEMENT
Print media and electronic media is the primary channels based on which brands and
products can be distributed in the regional boundaries. Electronic media is effective enough in
multiplying the messages beyond going regional boundary (Majaro 2013). However, while
distributing the products through traditional media channels the customers do not get the
opportunity to provide feedback immediately.
11. Marketing campaign:
Marketing campaign is a form of activity which intends to promote an individual product
and service for gaining customers’ attention. There are four major types of marketing campaigns
which include social media marketing campaign, content marketing campaign, off-page SEO
campaign and email campaign (McDONALD 2016). However, the marketing executives have
focused to select social media campaign and of-page SEO campaign. Serach engine optimization
helps the target audience in getting detailed overview about the brand and its services. With the
help of social media campaign the target audience can get audio-visual effect (McDonald and
Wilson 2016). In addition, the audience does not have to be dependent on specific time in social
media promotion. Viewers can observe the promotional campaign at their flexible time.
12. The financials:
In this specific part the study has provided detailed overview on how the business experts
of TESLA can make effective financial planning in order to make future analysis of marketing
expenses. A systematic time-frame on marketing plans has also been presented in this very
specific study.
 Promotional Plan:

11
MARKETING AND MANAGEMENT
Promotion Tools Amount
Social media
Facebook $ 10,000
Twitter $ 5,000
Youtube $ 10,000
Total expenses in Social Media promotion $25,000
Other Online Marketing Media
E-mail campaign $40,000
Online advertisements $50,000
Other promotional activities $30,000
Total expenses for online campaign $1,20,000
Traditional media
Newspapers $20,000
Magazines $10,000
Total Print Media $30,000
Electronic media $90,000
Billboards $10,000
Total $100,000
Consolidated budget for promotional activities $275,000
Table: Financial plan for promotional budget
(Source: As Created by the Author)
 Profit and loss analysis based on three years of marketing plan:
YEAR 1 YEAR 2 YEAR 3

12
MARKETING AND MANAGEMENT
Total Sales volume $50,000 $200,000 $500,000
Expenses
Operations $20,000 $50,000 $90,000
Office equipments $5,000 $20,000 $40,000
Technological resources $15,000 $20,000 $25,000
Insurance $1000 $4,000 $4,000
Utilities $1000 $5,000 $10,000
Infrastructure 10,000 $30,000 $40,000
Taxes $1,500 $2,000 5,000
Total estimated Expenses 53,500 131,000$ 214,000
Profit and loss analysis 2,500 (loss) $69,000 (profit) $286,000 (Profit)
Table 1: Financial Plan
(Source: As created by author)
 Time line of the marketing plan:
Plans 1st-2nd
Week
3rd- 4th
Week
5th- 6th
Week
7th-8th
Week
9th- 10th
Week
11th- 12th
Week
Setting marketing objectives
Data collection
Framing layout
Marketing strategy and
analysis
Selecting channels and
distribution

13
MARKETING AND MANAGEMENT
Conducting a marketing
campaign
Making financial budget plan
for promotional methods
Forming recommendation on
marketing strategy
Conclusion
Rough Draft
Submission
Table 1: Timeframe of the marketing plan
(Source: As created by author)
13. Recommendations:
Based on the identified issues in making effective marketing plan the study has focused
to provide some of the major recommendations which are as follows:
 The promotional method of TESLA should be improved based on which the business experts
can introduce the product concept in the mind of international customers (Mihai 2013). The
marketing executives need to be more focused more on new media platform for introducing
their brand in global market.
 The product managers need to render diversified designs of their products with the help of
which customers from different cultures and psychological backgrounds tend to show their
interest in purchasing the brands

14
MARKETING AND MANAGEMENT
 The market of TESLA is only restricted within those people who can afford premium
services. Consequently, the target market is very much limited within specific group of
people who are possessed with high level of income status. As a result, the organization is
able to target specific group of people. Naturally, business profitability level is getting
hampered (Mihart 2012). For overcoming this situation, the business experts should focus on
increasing the number of target audience by designing products for both premium customers’
as well traditional customers.
14. Summary and conclusion:
Summary:
After analyzing the entire marketing plan based on TESLA it can be summarized that the
organization aims to render product diversification and service affordability for drawing the
attention of global customers. By involving the customers in a survey method the data analysts of
TESLA have identified that the business experts need to focus on innovative design on products
for grabbing the attention of international customers (Mohammed and Rashid 2012). In order to
gather brand image and brand identity the organization like TELSA has selected both direct
marketing procedure and social media strategy.
By using social media platform TESLA has gathered immense feedback from the
customers of different psychological backgrounds and attitudes. On the other hand, TESLA is
only flexible in providing good services in urban destinations (Mohapatra 2013). TESLA in
quest of distributing their products has primarily focused on using the platform of social media
as well as traditional media.However, the marketing executives have focused to select social
media campaign and of-page SEO campaign. Serach engine optimization helps the target

15
MARKETING AND MANAGEMENT
audience in getting detailed overview about the brand and its services (Moon 2013). At the end,
this specific part the study has provided detailed overview on how the business experts of
TESLA can make effective financial planning in order to make future analysis of marketing
expenses.
Findings and conclusion:
After making in-depth critical analysis it can be concluded that
 TESLA provides superior quality of products along with premium service
 In order to gain more brand identity and brand image TESLA needs to make effective
promotional strategy and policy for drawing international customers
 The business experts with the help of social media promotion has made the market
segmentation as per geographic, demographic and psychographic areas
 Marketing campaign has been made in maintaining lucid and simple content quality for
reaching their products to the people various different educational backgrounds
 While providing effective suggestion and recommendation it is identified that TESLA would
have to be more cautious in using social media platform.
 Marketing executives need to enhance their promotional budget so that marketing campaign
can be conducted more effectively
 It is observed that the marketing campaign has been completed within 12th weeks. As a future
scope, it can be analyzed that the marketing executives can make the entire marketing plan
by taking at least 15 weeks for collecting and analysing data properly.

16
MARKETING AND MANAGEMENT
Reference List:
Baker, M.J., 2014. Marketing strategy and management. Macmillan International Higher
Education.
Dwivedi, Y.K., Kapoor, K.K. and Chen, H., 2015. Social media marketing and advertising. The
Marketing Review, 15(3), pp.289-309.
Jhally, S., 2014. The codes of advertising: Fetishism and the political economy of meaning in the
consumer society. Routledge.
Jones, P., Simmons, G., Packham, G., Beynon-Davies, P., and Pickernell, D. 2014. An
exploration of the attitudes and strategic responses of sole-proprietor micro-enterprises in
adopting information and communication technology. International Small Business
Journal, 32(3), 285-306.
Jugenheimer, D. W., Sheehan, K., and Kelley, L. D. 2015. Advertising media planning: a brand
management approach. Routledge.
Lee, C. K. M., and Lam, J. S. L. 2012. Managing reverse logistics to enhance sustainability of
industrial marketing. Industrial Marketing Management, 41(4), 589-598.
Lidstone, J., and MacLennan, J. 2017. Marketing planning for the pharmaceutical industry.
Routledge.
Liu, S., Kasturiratne, D., and Moizer, J. 2012. A hub-and-spoke model for multi-dimensional
integration of green marketing and sustainable supply chain management. Industrial Marketing
Management, 41(4), 581-588.

17
MARKETING AND MANAGEMENT
Majaro, S. 2013. International Marketing (RLE International Business): A Strategic Approach to
World Markets. Routledge.
McDONALD, M. A. L. C. O. L. M. 2016. Strategic marketing planning: theory and practice.
In The marketing book (pp. 108-142). Routledge.
McDonald, M., and Wilson, H. 2016. Marketing Plans: How to prepare them, how to profit from
them. John Wiley & Sons.
Mihai, A. L. 2013. The strategic sport marketing Planning Process. Manager, (17), 230.
Mihart, C. 2012. Impact of integrated marketing communication on consumer behaviour: effects
on consumer decision–making process. International Journal of Marketing Studies, 4(2), 121.
Mohammed, A. A., and Rashid, B. 2012. Customer Relationship Management (CRM) in Hotel
Industry: A framework proposal on the relationship among CRM dimensions, Marketing
Capabilities, and Hotel performance. International Review of Management and Marketing, 2(4),
220.
Mohapatra, S. 2013. E-commerce Strategy. In E-Commerce Strategy (pp. 155-171). Springer,
Boston, MA.
Moon, B. J. 2013. Antecedents and outcomes of strategic thinking. Journal of Business
Research, 66(10), 1698-1708.
Morgan, N. A. 2012. Marketing and business performance. Journal of the Academy of Marketing
Science, 40(1), 102-119.

18
MARKETING AND MANAGEMENT
Morgan, N. A., Katsikeas, C. S., and Vorhies, D. W. 2012. Export marketing strategy
implementation, export marketing capabilities, and export venture performance. Journal of the
Academy of Marketing Science, 40(2), 271-289.
Moriarty, S., Mitchell, N.D., Wells, W.D., Crawford, R., Brennan, L. and Spence-Stone, R.,
2014. Advertising: Principles and practice. Pearson Australia.
Mulhern, F. 2013. Integrated marketing communications: From media channels to digital
connectivity. In The Evolution of Integrated Marketing Communications (pp. 19-36). Routledge.
Tesla.com, 2018. Tesla: Electric Cars, Solar Panels & Clean Energy Storage. Available from
https://www.tesla.com/?redirect=no Accessed on 2018.