Marketing Strategy for TESLA Inc.

This document provides an overview of the marketing strategy of TESLA Inc. It includes a PESTLE analysis, SWOT analysis, and evaluation of the current marketing strategy. The document also discusses the segmentation, targeting, and positioning of TESLA's Model Z, along with recommendations for a stronger marketing strategy.

Marketing Strategy

Contents
INTRODUCTION...........................................................................................................................................3
PART 1.........................................................................................................................................................3
Overview of Company.............................................................................................................................3
PESTLE Analysis of TESLA Inc............................................................................................................4
SWOT Analysis of TESLA Inc...............................................................................................................6
USP of TESLA Inc:.................................................................................................................................7
Evaluation of current marketing strategy of TESLA Inc:........................................................................8
PART 2.........................................................................................................................................................9
Segmentation, Targeting & Positioning of Model Z by Tesla Inc:..........................................................9
SMART objectives and goals:...............................................................................................................10
Recommendation of marketing strategy:...............................................................................................11
CONCLUSION.............................................................................................................................................11
REFERENCES..............................................................................................................................................13

INTRODUCTION
A marketing strategy relates to the general game plan of an organisation to meet target
buyers and build strong customer relationships of the goods or services that the company offers.
A marketing strategy involves the business model of the organization, effective brand
advertising, target consumer demographic data, as well as other high-level components
(Amankwah-Amoah, Boso and Debrah, 2018). The main objective prepare of this report to know
marketing strategy of selected business Tesla Inc. TESLA Inc. is an American company that
makes vehicles. The firm is headquartered in California and was launched in 2003. The financial
dealings with introducing technically designed high-end vehicles and trucks to the market. An
effort has been made in this research project to examine the internally and externally climate of
TESLA Inc and to define the company's specific market offering. The study aims to assess the ’s
newest marketing plan. The study further helps to describe the segmentation, targeting and
positioning of TESLA Inc. for Model Y. Finally, an effort has been made to provide TESLA Inc.
management with some feedback and comments for a stronger marketing plan and strategy on
the grounds of the implementation of the marketing mix.
PART 1
Overview of Company
In 2003, Tesla was created by a group of developers who needed to challenge that
individuals did not have to struggle to ride electricity-that electric cars would drive better, faster,
and more pleasant then gas vehicles. Today, Tesla not only develops all-electric cars, but also
services for renewable energy storage devices that are indefinitely scalable. The sooner the world
avoids depending on energy sources and progresses forward towards a zero-emission world, the
stronger, Tesla claims. The company was founded with the aim of developing an electric sports
car and the first car was introduced by the Roadster Company in 2008 that had the ability to
travel up to 245 miles on a single. The business has been concerned with high-tech vehicles and
cars since then. Elon Musk is the team's current CEO and was responsible for the massive head
of the organization's initial financing. The business has global operations in several nations and
the corporation's income was $2,457 crores in the year 2019. The company is involved in
technologies for renewable energy and in the production of renewable sources of energy. A

contextual study of TESLA Inc. is being carried out to know the business strategic role and the
variables that work in that industry in the company's stock climate.
PESTLE Analysis of TESLA Inc
A Pestle analysis is a framework for a process used to describe the macro (external)
powers an organization manage. The acronym stands for Political, Economic, Social,
Environmental, Technical and Legal. It can be decreased to PEST or certain areas can be
introduced (e.g. ethical) based on the employer. In marketing, it is important to perform a
situational analysis well before any approach or combination of strategies (Bakhtieva, 2017).
And also to recognize improvements in the macro-environment, PESTEL appears to be part of
all that and should be replicated at corresponding depth (6 monthly limit).
Political factor: Political variables relate to the influence on every corporation and existing
business activities of government guidelines and laws. Characterized by political uncertainty and
inconsistency have a significant effect on the company's activities in a country or company
region. TESLA Inc. works in many countries throughout the world, so the biggest developments
in each nation's democratic climate are likely to have an effect on the decision-making of
leadership. The government is also offering incentives and assistance to businesses dealing with
electricity in vehicles. The measures carried out by the government in several communities to
help the electric car and automotive sector are a good opportunity for TESLA to improve its
business development. In addition, factors such as developing countries that seek to promote
more development in their economies and are interested in development provide TESLA Inc.
with an important ability to increase its activities to several nations as well as in foreign market.
Economical factor: Economic factors that have a substantial effect on the success performance
of every business, including the level of tax, money supply-deflation, the rate of capital, industry
structure, etc., are deemed either by administration of TESLA Inc. to recognize or evaluate any
potential that could exist for the enterprise or to affect the organization from any danger that may
occur. Out over past few years, the global environment and manufacturing have changed
dramatically, rising consumption of electricity and premium vehicles, which should be a
tremendous opportunity for TESLA Inc to gain higher market share and create the range and
variety of its prospective clients (Clementson, Pascual-Ferra and Beatty, 2016). Owing to greater

demand, there has been a significant change in the quantity of rechargeable energy, which has
allowed the company should reduce its cost and improving the project's revenues.
Social factor: Social influences apply to the customer's improvements in tastes and expectations
in a market field. A great many people are intrigued by the products or vehicles made by TESLA
Inc. and the reality that it does not use diesel or gas contributes to the eco-friendliness of the
vehicles. A new trend to eco-friendly usage has been created, which is a wonderful opportunity
for TESLA Inc to market its products alongside a campaign. Due to the premium and complexity
of the consumer loyalty that the organization has to deliver, TESLA goods are often used as a
sign of prestige. One of the key opportunities for TESLA Inc. is that individuals typically favor
cars with low production cost, even though the paying full cost is higher, which is absolutely the
case with cars produced by TESLA Inc.
Technological factor: In every business and market scenario, technical innovations and
technologies have the utter power to influence activities. Whenever it takes to evaluating
technical developments in the industry, TESLA Inc. still has some benefits and threats. TESLA
Inc. team has made revolutionary efficiency advancements for the business, although with the
intention of a completely automated moving technology, and then over the months of life, the
team has made successful and productive use of the highest sustainable technological advances
to sustain its successful reputation in the company, that is a major positive influence of such
developments. Innovation, furthermore, is a philosophy that predates themselves because for any
technological advances the business adopts, the previous versions become outdated on the
marketplace and this is a massive opportunity for the organization to understand the inventory
levels and output graphs by each product line and the current business wants to figure out a
solution to also include the supply newest technological alteration in every car and its automobile
tools (Eneizan, Wahab and Abd Wahab, 2016).
Legal factor: TESLA Inc. performs in several nations around the globe and each nation has its
unique set of laws and regulations, making it incredibly challenging for the organisation to
conform to each of its international territories' legal requirements. The organisation has
encountered several small litigation in the recent past, as well as a major challenge to leadership.
Business is immediately forced to dispatch a group with significant assets to search the

regulatory landscape to let company know what is permitted and what wasn't permitted within
the company territories where it works.
Environmental factor: The very last century has seen a major shift in the perception of business
firms and people in particular evaluate the impact on environment and ecosystem services of
employment activities' operations that has imposed the burden on businesses to minimize
environmental impact and green house gases. This aspect creates a big advantage for TESLA
Inc., as all the cars produced and sold are planned to use alternative renewable resources
including such electricity, which strengthens the corporation's efficiency and eco-friendliness in
its activities.
TESLA Inc.'s aforementioned pestle review indicates that there are several advantages
that leadership should take advantage of in the company's stock climate, but along with that,
there are also several risks that will need to be disposed of.
SWOT Analysis of TESLA Inc.
SWOT analysis is a strategic method that leadership uses to assess and analyses a
company's inner capacities and strengths, vulnerabilities, risks and opportunities. It is a
significant corporate instrument for assessing inner structure and proficiency. Here is the TESLA
Inc SWOT Analysis:
Strength: The differentiation strategy is main strength of the company, such as an electricity
generation train, is among the most significant strengths of the business working for TESLA Inc.
The effective brand management generate the information by the company's performance has
aims to give and improve the overall customer bases over a length of time, although that's a
significant strength (Larke, Kilgour and John, 2016).
Weakness: TESLA Inc. is actually producing with the aid of only an individual cells main
supply for battery rechargeable battery packs, which is a significant weakness in the
corporation's logistics and supply chain management. The corporation's expertise is limited
primarily to managing several tasks simultaneously, which really is a limitation that needs to be
remedied by management. The efficiency of the operational business is also declining
considerably attributable to the organisation's growing acquisition of fixed assets, which has also
led to increased accumulated debt commitments.

Opportunity: The ability to extend the corporation's established ecosystems and seek new profit
margins is one of the most lucrative opportunities that currently exist for the administration of
TESLA Inc. The interest and consciousness toward more decreasing fossil fuel emissions is also
a chance for the company's products to be better marketed. The industry has spent in a Nevada
venture with the intention of incorporating the existing distributed battery production process.
Threat: A big challenge to TESLA Inc. is the immense competitiveness in the automotive
sector. Many new companies have become a part of the company with new technologies and
consumer pricing models due to the growth of the industry. In maintaining normal functioning,
the small strategic supplier infrastructure is also a significant obstacle to the administration of
TESLA Inc. Recent times, owing to the UK's departure from the European Union, the
organisation has suffered a number of company's future growth losses. To mitigate the effect of
these risks on the company's performance, administration helps to prepare and propose
recommendations (Ma, Dewally and Huang, 2017).
USP of TESLA Inc:
A corporation's Unique Selling Proposition contributes to certain characteristics or
attributes of a product or service that differentiate that from other goods or services on the
industry of a comparable nature , making the brand more desirable and competitive. The special
role of Tesla in the car industry is one of its main strengths. This is a post that is over 5 years old.
Tesla Motors is unusual since it sells new innovations rather than just selling vehicles. Bets on
Tesla Motors basically entail betting on a modern innovation. Tesla Motors is unusual because it
sells new innovations rather than just selling vehicles. Bets on Tesla Motors basically entail
gambling on technological advances. Simply stated, the demand for luxurious, long-range
electric cars has been developed and is now dominated by Tesla, a demand that is different both
from the segment with less costly electric cars and the demand for luxury gas-powered vehicles.
As well as the business, as the sole participant, should not only sell vehicles, but also build up
the necessary foundation to facilitate the production of those vehicles. In the case of Tesla, this
includes setting up a turbo engine system, charging station centers, and convenience stores
(Wafler and Badir, 2017). This should find it tougher to develop the company on the surface of
it, however the unique role of Tesla in the automotive car industry will enable it accomplish that
goal. In essence, there is one peculiar thing regarding Tesla: its cars function in a high altitude

EV car segment that currently consists of just one car-the Tesla Model S. Due to its cost, the car
falls into the price category of luxury cars that make up almost half of the income of the
automobile industry, despite trying to make up just 10 percent of its sales volume. This makes it
increasingly challenging for other car competitors to operate because, by producing a luxury car
which struggles, they cannot continue to worry about missing out on their most lucrative market
(Mikeska and et.al. 2017).
Evaluation of current marketing strategy of TESLA Inc:
TESLA Inc. is a highly reputable organisation that typically relies on word of mouth
pandemics to tip the sale and does not need to carry out any sort of marketing campaign
commercials compensated for.
Product: TESLA Inc. specializes in introducing high-end technical advances and innovations to
the company's USP in the automotive industry at the moment to differentiated products and
business model. It adds to the beauty of the commodity that the business manufactures and
fascinates even more individuals as well. TESLA Inc. operates with cars focused on green use,
and does not require the use of fossil fuels or automobiles powered entirely by electricity
(Toscani and Prendergast, 2019).
Price: TESLA Inc. intends to preserve its position on the market as a luxury sector automotive
manufacturer with the latest technical developments and thus focused on the company's risk
management strategy to achieve full productivity from its goods. The business does not want to
keep rates in the budget segment and aims to cater to a particular group of individuals in culture
who would connect to the vehicle's social standing and logo. Working from either an extremely
advanced technology, due to the enormous product and investment costs, the Tesla goods are
classified in its target market in the premium pricing, and it still begins at a low price compared
to rivals such as BMW electric vehicles (Pitt and Treen, 2017). From the other side, a BMW i8 is
valued at $144,395. A Tesla Model S costs from $69,200-$ 141,200 whereas the Model X is
priced from $83,700-$ 146,200.
Place: Tesla, with its head office in Palo Alto, California, is a US-based corporation major
multinational. The cars are assembled in Fremont, California's 5.3 million square feet massive
manufacturing company and are preparing to increase the plant size to almost double size at 10

million cubic kilometers in the upcoming years to address the immense market for its goods and
prompt delivery. TESLA Inc.'s location policy shows that by handing out wholesalers and
licenses, the organization does not include itself in the delivery of the goods. The business runs
shops and warehouses in various parts of the world to sell all the corporation's goods to the final
consumer.
Promotion: The Company’s advertisement and marketing plan is completely and set the logo
line with the advertisement that says 'We do not receive the World from our ancestors; we lend it
from our children.' The business provides ads in different types of print media that are aligned
with the buyer's perspective. The company does not need to use the marketing advertising tool
because the corporation's consumers are high pump-insensitive and much more concentrated on
value. Because as corporation's customers are increasingly price indifferent and more
concentrated on the performance and innovation-experience associated with the vehicle, any use
of marketing advertising tools is not important for the company. The group previously used a
road trip as a promotional tool that was fully engaging and on platforms such as Facebook,
Instagram, etc, potential consumers could connect in live time (Rudawska, 2019).
It can be calculated that, given the market place and specific product of the business, the
marketing efforts being pursued by the business are extremely successful.
PART 2
While examining different models such as segmentation, aim and positioning and SMART
targets for the campaign, TESLA Inc. has announced a new model S car whereby a business
strategy and campaign is being established in the following paragraph.
Segmentation, Targeting & Positioning of Model Z by Tesla Inc:
STP is a marketing strategy and a service that provides to eliminate the full market
segmentation technique for the management of an organization. For TESLA Inc, this model
implies that Tesla segmentation, targeting and positioning is a collection of operations requires
the development of a particular population segment(s) and the production of goods to satisfy the
needs and wants of segment(s) customers. Tesla uses instantaneous positioning strategies as well.
Segmentation: Segmentation refers to the method by which a market is separated into multiple
categories or divisions depend on different activities, including such populations, income classes,

etc. TESLA Inc.'s procedure means a collection of people who've been searching for a high-tech
sporting and luxurious car with an element of prestige and social icon (Saetang and
Pathomsirikul, 2016). In general, for Model S, the segmentation process often involves groups of
individuals who are highly understandably concerned with the effects on the environment of
their use and fall within the array of diverse consumers. The bulk of this market segment is
primarily male and individuals with an income over $1,00,000 that apply to moderate income
classes.
Targeting: Good marketing and smart move are all about making decisions that develop and
retain a range of skills that assist the company to perform better its rivals with a specific set of
clients. Tesla entered the automobile market with an innovative, high-end product based on
buyers who were able to afford eco-friendly luxury cars fitted with first of its kind innovations
providing a different feeling of convenience (Shokuhi and Nabavi Chashmi, 2019).
Positioning: The market position of Tesla Motors is different, since it not only sells vehicles, but
also sells technology. As either a high-end manufacturer or supplier of electronic sports cars, it
has put itself within the industry. Tesla built its presence in the consumer room as a pioneer in
electric cars with its initial expensive launches such as the Tesla Roadster's, Model S's and
Model X's. Even so, as stated in his 2006 blog(4), one of Elon Musk's long-term goals, intellect
of Tesla, was to have a wide fleet of vehicles designs, included their relatively affordable family
cars, that speeding up the nation to an eco-friendly, portable solar future (Salwa and Sudarsan,
2018).
SMART objectives and goals:
SMART goals relate to aims and priorities that have five components or characteristics, such
as specific, measurable, achievable, applicable and time-based. It stresses the use of a purpose or
goal to be established that is clearly established either by administration along the same terms to
generate no potential uncertainty and challenges. Following the SMART guidelines, several of
the suggested aims and goals for TESLA Inc are:
 Obtain a total of 40 percent of the market in the inhabitants-dense American luxury
segment by December 2021.

 Achieving an up to 20% rise in Model S revenue by December 2020 through the use of
advertising campaigns and differentiation (Taecharungroj, 2017).
Recommendation of marketing strategy:
Based on the above review of business segmentation, targeting and positioning by Tesla
Inc for Model S, and after taking into account the manager's strategic targets. Here are a few
guidelines for marketing campaigns and policies that the organisation should use to accomplish
such goals:
 On the strength of the use of a price-value approach with a specific goal of optimising
profit and request, the administration of the business is instructed to market the Model S.
With gasoline and other gasoline prices growing steadily in the U.S. markets, even higher
Model S prices will be reasonable as consumers and buyers are high pump-insensitive
and know more for low-maintenance vehicles.
 With regard to the Model S sales strategy, the company is actively pursuing its traditional
component of not authorizing showrooms and distributors to sell the car to end-users.
Director, therefore, is recommended to use different supply chains for advertisement, sale
and promoting this template. The organization can also expand its own distribution
systems, but it involves a considerable lot of time and resources and it is not essential for
the company to establish a hindrance in the distribution system simply cos of strict
diagnosis methods. Manager can aim to attract wider set of consumers and individuals by
enhancing profitability and usability across multiple distribution channels.
 It is of little value and importance to the business for using selling marketing strategies as
consumers or potential clients are much more likely to be offended by functions and great
in their decision-making process and are extremely price-insensitive, so administration is
recommended to withdraw to use any aggressive marketing method.
CONCLUSION
From the above discussion, it has been concluded that As per the above report it has been
concluded that the marketing strategy advises the marketing plan, which really a document is
outlining the particular components of marketing activities undertaken by an organisation and
presenting schedules for different marketing strategies to be introduced. TESLA is an American
automobile manufacturer that is highly determined to carry out the latest technology to the

automotive industry only with goal of creating differentiation strategy. TESLA's macro
economic climate gives the business with many possibilities, together with a few challenges, in
terms of prospective business expansion. It should also be identified that the company has a
specific sale plan for high-tech fitted cars with electricity consumption, and the administration is
extremely productive in following the new marketing plan. The target demographic for TESLA
Inc. can be measured that included individuals from upper-income groups who are early
investors of tech-savvy cars and vehicles. Finally, the organisation is issued with numerous
guidelines and guidance to successfully integrate a successful marketing campaign for Model S
by TESLA Inc.

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