Marketing Strategy for Tesla

This report discusses the marketing strategy of Tesla, including PESTLE analysis, SWOT analysis, competitive advantage, and marketing mix. It explores how Tesla deals with challenges and attracts customers. The report also covers market segmentation, targeting, and positioning, as well as goals and objectives. The document provides insights into Tesla's approach to marketing and selling its electric vehicles.

Marketing strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Part 1................................................................................................................................................3
Executive Summary.....................................................................................................................3
PESTLE Analysis........................................................................................................................3
SWOT Analysis...........................................................................................................................5
Analyse competitive Advantage(USP)........................................................................................6
Marketing Strategy of Tesla.........................................................................................................7
Part 2................................................................................................................................................7
Market Segmentation, Targetting & Positioning (STP)..............................................................7
Recommend goals and objective...............................................................................................10
Marketing Mix...........................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
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INTRODUCTION
Marketing strategy refer to policy, guidelines and steps to achieve goals. Tesla is one of
the rising retail company and provide electrified product. However, organization faces various
kind of challenges related to micro and macro factors which need to be address such as political,
economical etc. Report describe strength, weakness etc. of Tesla and the way in which it deals
with it. It also describes Unique selling point of Tesla and how it benefits firm. Company follow
various kind of strategy to attract customer and increase its market share as describe in the
report. Segmentation, Targetting and positioning Model that is use by the firm also focus into it.
Marketing mix help firm in analysing and understanding the way in which company sells its
product.
MAIN BODY
Part 1
Executive Summary
Tesla started its business from United states with the objective of providing electric
vehicle to support sustainable environment but after passing the time it opens offices at various
places in the world (Thomas and Maine, 2019). Report emphasizes on factors that affect growth
of the firm such as external or internal and the way in which Tesla try to overcome from it. It
also describes the way in which firm is targetting market and reaching to customers. Strategy
followed by Tesla is also discussed in the report.
PESTLE Analysis
PESTLE refer as process which use by the firm to analyse macro factors that affect
growth of the firm. Company growth impact and effect from political, economical, social etc.
situation.
Political:
After BREXIT, Britain become politically unstable, three prime ministers of the country
changes and hence each time policy related to industry changes. Unstable government create
various challenges for automobile industry such as Tesla for example each pm introduce new
regulation to favour local firm while the company is American and hence effect its revenue and
profit. Raw material that comes from Europe prices hike because of new changes to remove
impact of its union in Britain and ultimately increase cost of the automobile (Thomas and Maine,
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2019). COVID again become barrier in growth of the firm as it takes thousands of jobs and
reduce purchasing capacity of the firm.
Economical:
United Kingdom is one of economical powerful country in the world which creates
opportunity for different kind of sector in market. After Brexit, large number of people lost their
jobs and economical tariff of Europe increase cost of product. Increasing unemployment become
one of the major problem for company's market share and it reduces customer of the firm.
However, government is about to reduce corporate tax which increase profit of the Tesla.
Government also planning to frame new policy and guidelines related to industrial sector's
growth and hence company can achieve higher target with the help of it.
Social Factors:
There are many social factors that effect and impact growth of the firm. Taste and tend of
British customer's continuously changes and it becomes difficult for the firm to make changes
according to it. Tesla provide range of electric vehicles which attract customers and increase
customer share of the firm. Design of the car with comfort level quality is best which help firm
in gaining customer's. British customers and government now focusing on sustainable future and
hence electric vehicle concept is high profitable for the firm as well as customers. Tesla is
futuristic approach and conserving environment vision increase good-will of the firm.
Technological Factors:
Britain is technological advance country which help industry to make quick changes in
work structure and product. Tesla product base on technology advancement which help it in
attracting customers and increase market share of the company. However, cost of technical
changes and modification increase cost of the product and decrease capacity of the customer to
purchase. After Brexit, various exported component from Europe prices increase because of
custom duty and border taxes which decrease revenue of the firm. COVID again effected on
selling of firm's product and people avoided roaming out which become challenge for company's
growth.
Environmental factors:
There are number of environment factors that affect growth of the firm such as
government policy and guidelines related to firm. Tesla highly focused on conserving
environment and has taken various steps towards it. Company provides product that has less
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impact on environment or increase sustainability of it. Firm also provide large amount of profit
in corporate social responsibility for example giving funds for poor children's education and
health facility. Tree plantation campaign by the organization helps in protecting atmosphere of
Britain as well as increase good-will of the firm.
Legal Factors:
UK's government has passed various laws and act relating to various industry such as
Employment act 1996, National Minimum wage act etc. which Tesla has implemented in work-
station. This policy and procedure help firm in increasing good-will among customers and also
increase loyalty of the employees. Maternity and paternity leave, minimum wage, holiday pay,
sick pay must be given to workers in the company.
SWOT Analysis
It is a tool that organization is used to check strength, weakness, opportunities and threats
which help in planning strategy.
Strength:
Tesla is visionary for sustainable future of company, country and world which help it in
gaining customers. Increasing health consciousness and environment awareness in UK, motivate
customers for purchasing company's product. Electrification of product with advance technology
increase brand image of the firm and attract large number of customer in Britain as well in other
part of the world (O'Meara, 2019). Racing cars of tesla influence youth of Britain and hence
company able to gain all portion of consumer's for its product. Comfort level in the vehicles is
very high and has build in modern scientific way which contribute in growth of the firm. Elon
musk which is co-owner is very popular all around the world because of visionary approach
which again help in improving image of the firm and gaining customers for its product.
Company has strong fame around the world and hence opening business at any place do not need
additional effort in starting business.
Weakness:
There are number of weakness of the Tesla such as still large number of people do not
choose electric vehicle and hence company unable to gain expected target. Company follow
mouth-to-mouth publicity rather than promotion on social media channels and hence unable to
reach large number of customers (Akakpo and et.al., 2019). Cost of the product is comparatively
high and hence only purchase by high and middle class people. Company is limited to few
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suppliers which decrease chances of negotiation and hence product prices continuously
increasing because of it, suppliers monitoring buyers. There are large number of people in
Britain which still not interested in sustainable and protecting environment. Coronavirus break
the bone of Tesla in United Kingdom as large number of customers did not take in company's
product. Increasing unemployment and inflation decreasing large number of customer's (Wu and
et.al., 2019). Various electric vehicle company provide at low cost in UK which again effect on
growth of the firm.
Opportunities:
Tesla has multiple opportunities in Britain and it can increase its market share from a
sequence of new changes. Company's new product must be in budget of middle class people that
help in increasing profit share of the firm (onder, Cipciganand Loo, 019). Company has to invest
amount in promotion at digital platform with the help- of celebrity which help in increasing
customer share of the firm. COVID and BREXIT break the bone of many firms but still in Tesla
have large number of attracted investor and hence by taking help from them, company can
expand its market at various places.
Threats:
Company faces large number of challenges in running the business in United Kingdom.
UK's government policy and procedure highly supporting new entrants which decreasing Tesla's
market (Chen and et.al., 2020). Other electric vehicles firm highly use social media tool for
promotion of product whereas company's company is limited with mouth-to-mouth campaign
which can decrease its loyal customers. High complex engineering again increase cost of the
vehicle as well as its maintenance price.
Analyse competitive Advantage (USP)
Tesla is known for selling the best electric vehicle in all around the world. Company
battery level and comfort zone with attractive design influence large number of customer's for
purchasing its product. Technological advancement and long duration of battery increase market
share of the firm (Bhardwaj and et.al., 2020). There are multiple firms which selling similar
products but unable to provide fuel life and hence company is able to gain competitive
advantage. Comfort level of the product is comparatively higher which again large number of
customers.
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Marketing Mix
Marketing mix help to understand strategy that organization follow to attract customer
and increase its market share. There are 4P's firm follow in business for framing policy and
procedure to target customers such as product, place, promotion and prices.
Product:
In this Tesla has chosen sports cars marketing in British market. Company's product has
high quality and attractive design which help in attraction large number of buyers in Britain.
Product of the firm has multiple features such as long-lasting battery, quick charged etc (Lugtu
Jr, 2019). and hence it can benefit customer in multi-way rather than one. Firm has a vision to
include all advance technology features in its vehicle which can easily be updated in the budget
of the customers.
Place:
Tesla has chosen London for opening its store and hence can target customers of the city.
It has a diverse population which again help firm in gaining local market and attracting customer.
Connectivity of the city is also good which decrease effort and time in managing transportation
system of the place. Again customer will be able easily get services in locality and hence can
increase customer satisfaction level. There are number of increasing charging station in London
which is additional benefit and can attract customer for purchasing electric product of the firm.
Good and stylish ambience of the place can again influence customers for purchasing its product
and help in gaining British market.
Promotion:
Company follow viral marketing for promotion of its product such as before coming of
the product viral video spread among customers and it helps firms in attracting large number of
customer in Britain. Personal selling of the product emphasizes on selling of the firm sports car
in stores rather than giving it to third party and hence coming customer can look into different
product of the same firm. Company has strong public relation for example customer promote its
product through mouth-to-mouth publicity.
Price:
Tesla shares its product at premium price which helps in reaching and influencing higher
or upper middle class customer's in the country. Sports cars of the company is highly attractive
and there are large number of customer in row to purchase it and hence company did not need to
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decrease rates of the product. Company focus on better quality and technological advance
product which are sustainable and contribute in conserving environment of the country.
Part 2
Tesla invests large amount of money in creating sports vehicle for young generation
which are highly attracted towards it and try to implement different strategy according to it.
Market Segmentation, Targeting & Positioning (STP)
STP model is use by the firm in promoting and selling product in between particular
customer, right place and on right time. It decreases organization time in unnecessary
expenditure and time. Tesla started selling its sport car in the market with the help of this model.
Segmentation
In this identify particular person, location and interest which are interested or can take
interest in firm's product (Teece, 2018).It has various elements as discussed below.
Demographics:
In this customer choose by the firm according to gender, income, age, marital status etc.
Company has selected youngster whose age group between 18-40 years and sporty or take
interest in it. It helps firm in achieving higher target by influence this people which are genuine
can like firm's sport car.
Psychographics:
In this buying choices of customer's analysis such as attitudes, lifestyle, hobbies, risk
aversion, personality and leadership traits etc. In this customer's with sporting lifestyle chosen
and which take interest in sports car (Fernandez Garces, 2018). For this organization conduct
various survey, interviews, customer data etc. which help in analysing their opinion towards
racing automobile vehicle.
Lifestyle:
Company also check lifestyle traits of consumers such as Hobbies, recreational pursuits,
entertainment, vacations, and other non-work time pursuits. By checking and analysing company
able to understand and provide right product, right time to right workers.
Belief and Values:
Firm also emphasizes on various belief and values of choose persons such as Religious,
political, nationalistic and cultural beliefs and values. All the selected person are Christian and
Westernised which enable firm to achieve target on time.
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Geography:
Places are chosen in this segment for example London has high population compare to
other part of the United Kingdom. By analysing it, organization can open its stores in this places
so that large number of customers can be attracted (Leeks, 2019.). Also, another advantage of
choose place is most of the university and youth remain in these places which help in gaining
large number of customers and increasing market share of the firm.
Behaviour:
In this firm evaluate nature of the customer and check if they are capable of purchasing
firm's product for example company sells premium product and chosen buyers must be fit in this
group. It helps firm in gaining large number of customers and increase market share of the firm.
Also segmented customer can pay attention to firm's product.
Benefit:
Customers always choose the firm which highly benefit it and Tesla providing that have
high advantage such as no fuel cost, large battery life, amazing design etc. and hence it helps in
influencing large number of customer's (Ferreira, 2019). Also, company try to become
customer's brand and hence try to give as much as benefit it can give.
Company has selected customer's according to geographical and demographic which can
help it in gaining young customers between 14-40 years age group in London which is diverse
with large population to achieve firm's target and increase market share.
Market targeting
In this segmented customers is targeted by the firm according to money, size etc.
Criteria Size:
Tesla has chosen London for selling its product which have large number of youth and
age group of between 18-40 age which help easily targeting this group (Ingram, 2018). Diversity
of the city can also contribute in influencing large number of customer's and increasing its
market share. Sporty lifestyle person also opt and choose sporty vehicles.
Differences:
There will be not large difference between consumers between segmented consumer's so
that they can ready to buy product. Otherwise, it will difficult for the company to promote and
sale its product.
Money:
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Profit of the firm must be higher than the additional cost of selling and marketing of the
product. Tesla sales its product including all cost and targeted segment will not emphasize on it
and hence increase profit of the firm.
Accessible:
Communication must be strong between all people in team and segment of the firm.
Marketing messages must be reached to all associated customer and hence able to increase
market share of the firm.
Focus on different benefits:
Company has to focus on multi benefit rather than focusing on one for example
increasing customer's loyalty, brand image, amount all should be achieved by targetting it.
Product positioning
Company has chosen upper middle or higher class customers which can easily purchase
product of the firm. This targetted group should be live in London near to it which help can
easily come to the firm's and but its product. Again selected people must be youth and in age
group of 18-40 age which can easily buy its product and increase market share of the firm. This
targeted customer's must be sporty and trendy in nature so that can easily understand product
importance and purchase it.
Recommend goals and objective
 Specific: To increase 10% market share of the firm till 2022.
 Measurable: To measure the market share of the firm with previous year report.
 Achievable: To Achievable to attend 10% market share.
 Relevant: To obtain at least 8% increase market share in UK.
 Time : To achieve these goals within 2 years.
 Organization can use various kind of marketing strategy of attracting customers such as
increasing best possible customer experience, transparency in work etc.
Create the Best Possible Customer Experience
Company can provide various kind of quality related to its product and hence able to
increase customer experience level. Company is highly focused in the best product under
budget which increase number of customers. Firm price, product etc. all details are available
on internet and hence no role of mediator also increase which increase good-will of the firm.
Build a Strong Referral Program
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They can do mouth-to-mouth publicity firm also started referral program for example if
the customer's refer person purchase product then will get some amount or discount in
company services
Champion Your Mission and Vision in All Marketing Efforts
Tesla can focus on providing electric vehicle all around the world and become future of
sustainable automobile industry which creates unique image of the firm and increase its
market share.
CONCLUSION
It can be analysed from the report that marketing strategy plays important role in
attracting customer and selling product. Tesla uses various kind of marketing strategy to gain and
attract British customer. Company faces various kind of challenges from macro environment
such as BREXIT and COVID break the bone of firm and decrease its market share of the firm.
However, there are various relaxation British government about to introduce which help the firm
in again gaining position and increase its market share. STP Model is use by the company to sell
sports car in London among young population. Marketing mix and smart objective again
describe the way in which company sells its product to youth population and achieve target; for
example:- Company has set premium price for British market and less interested in breaking it
and on the other hand more focused on branding the image of product.
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REFERENCES
Books and journals
Akakpo, A., and et., 2019. Foresight, organization policies and management strategies in
electric vehicle technology advances at Tesla. In Futures Thinking and Organizational
Policy (.pp. 57-69). Palgrave Macmillan, Cham.
Bhardwaj, S., and et.al., 2020. Problems Faced by Automobile Industries: Case Study on Tesla.
International journal of Tourism and hospitality in Asia Pasific.3.(2).pp.78-88.
Chen, T., and et.al., 2020. A Review on Electric Vehicle Charging Infrastructure Development
in the UK. Journal of Modern Power Systems and Clean Energy.8.(2).pp.193-205.
Fernandez Garces, P., 2018. Tesla Motors and Lean Manufacturing.
Ferreira, M., 2019. Tesla and the electric vehicle market in 2018 (Doctoral dissertation).
Ingram, N., 2018. Tesla Motors: A Potentially Disruptive Force in a Mature Industry.
International journal of management and applied research.5.(1).pp.8-21.
Leeks, H., 2019. Smart Electric Vehicle Charging. ITNOW.61.(4).pp.12-13.
Lugtu Jr, R.C., 2019. Tesla: Testing a Business Model at its (R) Evolutionary Best (Doctoral
dissertation, DE LA SALLE UNIVERSITY-MANILA).
O'Meara, E., 2019. The Global Importance of Zero-Emission Vehicles. Journal of
Interdisciplinary Science Topics, 8.
Sonder, H.B., Cipcigan, L. and Loo, C.U., 2019, June. Using electric vehicles and demand side
response to unlock distribution network flexibility. In 2019 IEEE Milan PowerTech
(.pp. 1-6). IEEE.
Teece, D.J., 2018. Tesla and the reshaping of the auto industry. Management and Organization
Review, 14(3), pp.501-512.
Thomas, V.J. and Maine, E., 2019. Market entry strategies for electric vehicle start-ups in the
automotive industry–lessons from tesla motors. Journal of Cleaner
Production.235.pp.653-663.
Wu, D., and et.al., 2019. Intelligent Hydrogen Fuel Cell Range Extender for Battery Electric
Vehicles. World Electric Vehicle Journal.10.(2).
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