Marketing Strategy for Tesla: Analysis, SWOT, and Competitive Advantage

This report analyzes the marketing strategy of Tesla, including a PESTLE analysis, SWOT analysis, and evaluation of current marketing strategy. It also discusses Tesla's competitive advantage and STP.

MARKETING
STRATEGY

Executive Summary
This report describes about the marketing audit which consist internal as well as external
analyses of Tesla and how they use marketing strategy to achieve desire aims and objective in
the well define manner. Beside this it is vital to analysis the market strategy to understand the
competitive edge. However, the market share and how growth volumes can increase the
profitability of the company. Hence the marketing mix can be used to manage and able to
capture large market share.

Table of content
Contents
INTRODUCTION...................................................................................................................................4
PART 1....................................................................................................................................................4
Pestle analysis of Tesla............................................................................................................................4
SWOT.....................................................................................................................................................6
Competitive advantage (USP).................................................................................................................8
Evaluation of current marketing strategy.................................................................................................8
PART 2....................................................................................................................................................9
STP of Tesla motors................................................................................................................................9
Recommendation, objective and Goals (SMART).................................................................................10
Marketing mix of Tesla.........................................................................................................................11
CONCLUSION.....................................................................................................................................12
REFERENCES..............................................................................................................................................13

INTRODUCTION
Marketing refers to the set of activities of the company which undertakes to promote the
buying as well as selling of products and services to final user. This consist of different activities
which consist of advertisement, selling as well as delivering of goods and services to the
respective customers. In other words, this is considered as the discipline which help in attracting
large number of audience and to maintain the relationship for the longer time period (Barros and
Sousa 2019). As this is vital for the company to make effective strategies as this tend to avoid
rivalry present in the market. This present report is based upon Tesla which is an American
electric car manufacturing company and it headquarter is based in Palo Alto California. The
company was founded in year 2003 and it was founded by Elon Musk. The organization deals in
different product such as electric cars and Tesla Energy and there around 48,016. The report is
covered different marketing strategy and proper analysis of External and internal environment
and make changes to achieve desire objectives. Beside this, USP and STP is vital to the firm to
improve their services as to sustain for the longer time period. At the last, marketing mix is used
to develop and maintain the effective strategy of the firm effectively.
PART 1
Pestle analysis of Tesla
Pestle analyses is the process in which the company used to determine the different factor
which are not controlled and managed by the organization. As the market is very flexible so the
company must conduct different factor which is used to manage and control the different aspect
effectively. For the organization like Tesla the management must focus on the external
surrounding and make changes for increasing the market share and provide higher amount of
profitability for longer time period. Here is the detail explanation of Tesla which is explained
down below:
Political factor: This is the factor which consist of all the rules and regulation made by
the government to operate the business in well define manner. As in UK current political stability
is well established and it is operating by the democratic party. So, this help in organization like
Tesla to conduct their business activities effectively. The government of UK support the business
which leads to improve the economic condition of the nation. Beside the Brexit decision taken by
the UK will hamper the market as well as business. Along with this, there are some funded

program run by the state the government which help firm to expand and explore the business
effectively run smoothly. As there are strict laws made by the government as firm must follow in
order to avoid any kind of inconvenience with the support of government.
Economical factor: As the name suggest this consist of current inflation, recession rate.
Beside this it also includes gross domestic product, disposable income which use to define the
economical condition of the nation. The Economical condition of UK is stable, and it comes
under the develop nation which is provide competitive edge for Tesla to capture large market
share in the limited time frame. The people of UK have higher income which means that people
have more spending power which means that they have capacity to buy more goods and
commodity. Hence this create a huge market share for the business which help in earn more and
more revenue. Beside this it also aids firm to develop sustainable business model and the UK
have higher per capita income.
Social factor: This is the factor which describe about the individual behavior, beliefs,
norms and personality. These qualities may differ from person to person and it depends upon the
nation culture which decide the buying behavior of the company. There is different aspect of
consumer which company must use to identify the buying pattern to increase the sale effectively.
As the people of UK are technological advance and they are more environmental aware. Hence
this provide competitive advantage to the firm like Tesla to sell their electric car. Due to the
people awareness there more electric vehicle in US rather than other countries in the world. So,
this become easy for the firm to capture large market share and people are more aware about the
nature which create the huge market for the firm. However, the people of UK have move towards
low carbon lifestyle which is consider useful to Tesla to capture large market share.
Technological factor: This is considered as the most essential factor which influence
the company to improve their product and service. There has been drastic change in the
technology which have change the way of doing business for the people (Chaffey and Ellis-
Chadwick 2019). The advancement in technology Tesla automotive as well the energy solution is
totally depending upon the technology. Organization have come up with electric cars which help
in creating larger market share. However, the market of UK has more focused to technology
which tend to increase the profitability for the longer time period. In the increase in internet has
prompt the company to integrate the system of business process. As company must constantly

drive to innovation which use to capture large market share. So, this is important for the
company to use conduct proper research and develop new method with the assistance of
technology to capture new customer base.
Legal factor: This is the method which is used to manage and control the business
operation effectively. This factor consists of all the rules and regulation which all the firm must
follow for the smooth functioning. Laws and legal system shape the managerial decision as well
as the business development. The UK have strict laws for the car manufacturing company, and it
should be followed and managed to smoothly. Company Human resource department and
business partnership are also come with legal constraint. As to expand in UK market Tesla must
follow all the legal constraint such as energy consumption regulation and which comes under
UK. Hence all these factor aid firm to operate their business without any chaos and constraint.
Environmental factor: This factor came into picture in recent year as most of the
manufacturing company leads to the carbon emission. For the nation like UK the government is
very much concerned about the environment, so Tesla must implement major changes in their
production process as to enter in UK market. However, the company is trying to expand the
environmental program to earn more profit effectively. Beside this, company have introduced
electric cars as to reduce carbon and make a world better place. Company is trying to manage all
the three-production based on climate change as the company electric cars are more suitable for
the environment and beneficial for the company as well as for customer.
SWOT
Swot analysis is the method through which company can analysis their pros and cons
which help in manage and control the environment and business effectively. This is the most
widely used method by the different organization which assist firm to reduce the conflict and
chaos and offer better quality product and service to the customer. This analysis is used by Tesla
which help in increasing the large customer base and provide insight regarding the market trend
in order to provide satisfactory services to consumer. Here is the detail explanation of SWOT
regarding Tesla which is explained briefly down below:
Strength Weakness
 The main strength of company is that
innovation as they are the market
 Weakness of Tesla is there pricing
policy which makes car costlier.

leaders in electric car vehicle. As they
have internal strategies which which
allow firm to manage and control the
business operation effectively.
 Beside this, the brand name is
considered as the symbol of
innovative products in renewable
energy which use to symbolize the
major advantage to expand there
business effectively.
 However, the firm have unique supply
chain which help to manage and
control the business effectively and
help in facilizing customer with higher
quality product and service.
Hence this create the niche market to
the limited customer which result in
slow earning and market
capitalization.
 Along with this, firm have limited
market presence due to their
production and selling policy which
reduce their supply chain which
directly effect the business for the
longer time period.
 For example, the organization have
high present in UK and US whereas
they have limited cars in China which
in result reduce the market share and
they less global strategies which
reduce the expansion and growth.
Opportunity Threat
There is vast opportunity present in the
market as company have conduct proper
research and analysis the appropriate method
to grab the larger number of audiences. Firm
can move the china or other Asian countries
as there is large scope (Cotterill, 2019).
 Apart from this, global supply chain
expansion plays a vital role in earning
more profit if the company use
effective strategies to overcome some
problems.
 Another opportunity lies if firm
diversified their product range so that
organization can tapped the larger
 The main threat for the company is the
rivals which are present in the market.
As there is aggressive competition and
many companies are providing electric
cars which slow down the sale of the
company.
 Although there is variation in material
pricing policy which can be a major
threat to the company which reduce
the market and the presence. Hence
this increase the price which leads to
slow down the sale present in the
market.
 At last the organization must face

customer and able to develop
sustainable business model for longer
time period.
threat from the dealership regulation
which help in managing to operate the
business to competitive aspect. As to
avoid such threat firm must manage
and control
Competitive advantage (USP)
The competitive advantage describes about special feature which help in increasing the
sales and profitability of firm effectively. This is essential for the firm to come up with the new
method or technology as the aid in developing USP to create better brand image in the market.
Hence to create USP Tesla management must focus on offering new product and service which
help in attracting larger customer base in the limited time frame. There is some method through
which firm can develop USP in the well define manner.
 In the recent years the firm have acquire Maxwell technologies which deals in the
ultracapacitor along with the battery components which tend to increase the performance
as well improve the energy storage capabilities.
 The research team of Tesla have applied the battery patent as they will reduce the charge
time and able to increase the performance. Along with this, it will come with higher
density at the lower cost which make USP for the company an also amiable for the larger
number of people.
 Batteries are the major components of the electric car manufacturing as the company
technology is consider the major Unique selling point which help in achieving success in
the shorter time period. Also, the company is ramping the product and focus on
increasing the storage of battery life which creates larger market share.
 Another unique point for Tesla is that they provide highly improve software for their cars
which help in increasing the safety features which provide extra guidance to user. And in
coming year the cars are going to be computer on wheel which means that cars will drive
itself which ensure about the safety and security of the customer.

Evaluation of current marketing strategy
Tesla marketing strategy is totally different from the other company as they are largely
known for the avoidance of paid advertisement. Instead of being Electric car manufacturing
company mainly emphasis on the social media promotion as this consider nowadays the most
popular mean of advertisement for the company. in the recent year the CEO of Tesla Elon Musk
must boost the Tesla shell which is an does not include any kind of paid promotion, but it only
depends upon the word of mouth. Apart from this, it uses to create loyal customer and better bran
image in the market and create monopoly for the longer time period. As per the report from
global equities research Tesla spend only spend 6 dollars per vehicle and the next spending is
Toyota. In the case of electric car manufacturing company itself is the promotion of the product
as there less competition present in the market.
The company marketing promotional strategy is cost around 6.5 million dollars as the sell
the car at high price which help in increase the brand image in the market. They mainly use pull
approach as they provide unique and new method to sell their product to their respective
customers in the well define manner. Tesla target market are the middle and upper middle-class
people which help in increasing their market share. As the company is one of its kind as they
produce fastest electric cars which goes from 0 to 60 in 5 seconds. Organization use online sale
model coupled with the company owned stores to sell its cars and does not use conventional
dealer network which is used to manage and control the entire market effectively. Other
competition like Ford and General motors mainly depend upon the third party for the sup [plier
whereas the Tesla use to produce their own product which sets the new measure for the entire
automobile sector. As company sell online vehicle which reduce the cost of middleman hence in
result this is beneficial for both customers and company respectively.
PART 2
STP of Tesla motors
STP means segmentation, targeting and positioning done by the organization which
means that there are different kind of people and have different method through which they can
expand and explore the business effectively (Zhang and et., al., 2019). This is essential for the
firm to use different method to target the customer. Here are some steps which are explained
briefly down below in detail manner:

Segmentation: This can be done based on geographic and on demographic basis. In the
context of geographic basis firm can divided the customer who live in suburban area and these
are usually developed neighborhood. Here the company have huge scope to capture large market
share in the lesser time frame. Here the people use car as the transportation method are car are
highly used by the different people. Apart form this Tesla can segment the customer on their
basis of demographic which consist of income level and the white-collar workforce.
Target: The target market for Tesla are the people who are the age of between 40 to 45.
Since the Tesla products are sports cars which are made of electric are mainly made for men and
women. As they have niche market so the target market for the company are only the higher
income group people who have white collar job as they are only the people who can afford the
cars. Apart from this people have high disposable income can afford the cars and have limited
market share.
Positioning: Electric cars are not very common as the company have difficulty in
creating positioning for the company. In the case of Tesla, the management have effectively built
the brand image and increase the sale of product in the well define manner. Beside this they are
growing awareness about the global warming and they successfully established their brand name
in the marketplace. As the company is trying to fill the gap between the market and people which
require lost of efforts and time.
Recommendation, objective and Goals (SMART)
Objective of company: The main objective of the company is to develop integrate
generation for transport. Beside this company is trying to develop more energy efficient solar
powered car which are developed in there Gega factory to make the entire world a safer and
carbon free place. Another objective is to make terrestrial transportation more convince by
creating more compact SUV such as cybertruck which can change the entire market effectively.
Goals: The main goal of Tesla is to accelerate the advent of sustainable mode of
transportation by providing the mass audience by the electric vehicle. another goal is to capture
the large market by providing electric cars which is now currently taken petrol and diesel engine.
SMART objectives: The main objective of the company is to enhance the profit by 10%
in the coming 5 years and increase the market share by 25%.

Recommendation:
 This is recommended to tesla as to increase the sale by improving their supply chain
effectively which help in increasing the sale as well as profitability of the firm.
 Beside this firm must focus more on the advertisement as this will help firm to increase
the cost and productivity of the firm effectively.
 The high cost is the major concern so that the management of the company must bring
down their cost which help firm to attract more customer and improve the market share
effectively.
 This is also suggested to Tesla as to improve the after-sale service which means that the
company must focus on the customer experience and emphasis on the service. To
improve the customer satisfaction firm, must directly contact with the customer and
improvise changes which in result tend to increase the cost and profitability of the firm.
Marketing mix of Tesla
This is the method which is comprise of different elements which consist of product,
price, place and promotion and many more (Zhu and Gao, 2019). For the company like Tesla the
management must focus on different aspect which help in increasing the reputation and proper
understanding of market in a detail manner. There is explanation of marketing mix below:
Product: The marketing strategy based on the product of Tesla is that they firm is
providing electric vehicle and solar powered batteries which help to capture large market share
effectively. However, the company runs the supercharged power station which help in providing
ease for the customer to charge their batteries.
Price: As compare to other product the price of the Tesla motors is high which makes
difficult pf the lower income group to purchase the product. The marketing strategy is price used
by the company is pull strategy in which company use to attract more and more customer in an
effectively manner.
Place: The company operates in various countries and recently the firm have opened
their new factory in China. The marketing used by Tesla as they sell their vehicle through their
own sales and service network. The company stores and galleries are highly visible at different
location which make convince for the buyer to purchase product.

Promotion: The company do not spend more on advertisement rather than they use word
of mouth strategy to attract higher number of customers in the well define manner. Apart from
this they also use social media as the promotional platform which help in increasing the sales and
profitability of firm.
People: The people can be defined as the employees who are working for the company.
apart from this, human resource is considered as the valuable assets for the company as they use
different strategy such as providing the extra benefits to their workers to encourage and motivate
them to accomplish desire aims and objective.
Process: The company have very complex process of delivery cars to the customer as
they make sure that the retail store has the system where the company gets notification about the
cars delivery and supply cars instantly to maintain the supply and demand process effectively.
They also have online delivery process through which customer can purchase cars.
Physical evidence: The company sell its product in the distinct color and packaging
which means that they customer can easily identify the product effectively. The company
infrastructure., people and cars are considered as the physical evidence.
CONCLUSION
From the above stated report this has been concluded that, there are marketing strategy is
essential for the firm to capture large market share effectively. Beside the Pestle analysis is
conducted to aware about the external environment and make changes to reduce any kind of risk
and uncertainty. Apart from this STP is done to differentiate the customer based on income and
geographic so that firm can easily provide effective service to user. Beside this SWOT is been
conducted to analysis the strength and weakness and SMART objective is made to clear the
vision of the company. At last the marketing mix is considered to understand the in-depth
knowledge regarding the company overall experience in an effectively manner.

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