Marketing Strategy for TESLA

This report focuses on TESLA strategies used by them to carry out functions and operations globally. Discussions have been made about organisational strategies SWOT, USP of firm, STP approach.

work ref: B27094 needs executive summary & needs to be 3500 words,
Marketing Strategy

EXECUTIVE SUMMARY
Marketing strategy is an integral part of business with help of which goals and objectives
are achieved. This report focuses on TESLA strategies used by them to carry out functions and
operations globally. In this presented report, discussions have been made about organisational
strategies SWOT, USP of firm, STP approach. With focused strategy, it is easy for company to
make decisions in proper manner. Furthermore, with deep analysis objectives are being achieved
effectively. Also, PESTEL has been discussed briefly in respective with chosen entity.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................5
MAIN BODY ..................................................................................................................................5
PART 1............................................................................................................................................5
Situational analysis ................................................................................................................5
Evaluate the threat of epidemic or Brexit on your choosing org. (SWOT)............................8
Analyse competitive advantage (USP)...................................................................................9
Evaluation of current marketing strategy.............................................................................10
PART 2..........................................................................................................................................10
Analyse Market Segmentation Targeting & Positioning (STP)...........................................10
Recommended objectives and goals for the choosing organisation.....................................12
Recommend marketing strategies, based on the application of the marketing mix to your
chosen brand or Sub-brand...................................................................................................14
CONCLUSION..............................................................................................................................14
REFERENCES .............................................................................................................................16
Books and journals ..............................................................................................................16

INTRODUCTION
Current business environment is changing continuously which is impacting on
performance of organization. This is because, due to changes in business environment
organisation has to analysis business within market and use strategies in accordance with it. A
business strategy can be define as set of activity which is to be done by organization to achieve
its business objectives by dealing with various factors in business environment. Under this
strategies, organisation use different methods which are use to achieve maximum productivity
level in organisation. In relation to present report, chosen organisation is Tesla. It is a American
multinational organisation which is famous for manufacturing electric cars, battery, energy
storage and many more (Behar and Ritz, 2017). It was founded in 2003 by Martin Eberhard and
Marc Tarpenning as Tesla motors. In current time, Elon musk is serving as chairmen of
organisation. In its overall functionary , it became worlds best leading organisation in selling
electric vehicles. Under this report, there is discussion on internal and external factors which
impact performance of organisation in current time. There is also use of USP system and current
marketing strategies of organisation. After that, there is use of market STP approach to identify
current market. In end of this report, there is discussion related to goals and objectives by using
SMART framework with some recommendation.
MAIN BODY
PART 1
Situational analysis
In current business environment there are different factors which can impact on preform
of organisation and will help firm in achieving its business objectives. In relation to identify
these factors in business environment organisation can use PESTLE analysis. It can be define as
framework which is use by organisation to identify the impact of external factors and
formulation of strategy to improve decision making ability of organisation. In include scanning
of political, legal, economical, technical, environmental and social factors. In relation to Tesla,
all these are discuses below:
Political factors: These are those factors which includes factors related to political
condition of area and location where organisation in selling its product or going to start its
product and services. In relation to Tesla, it is performing its function at global level. Therefore,

it has to identify these factor at global level (Chen, 2019). In relation to current scenario of
business environment, social factor are working in favour of Tesla. This is because, most of the
government in different nations like US, UK, India, China and many more are using new polices
related to promotion of electric vehicles. Therefore, they are also providing various kind of
rebates to firm working in production of electric cars. This is useful for Tesla to work on its
projects due to benefits provided by government.
Economic factors: These are those factors which are associated with function of
organisation in particular economy where it is performing its business functions. It includes
factors like employment level in economy, GDP growth and many other factors. In relation to
Tesla, it is performing its function at global level where it is require by firm to identify its
functionary. This factor has both positive and negative impact on performance of organisation in
business environment. Positive impact of this factor to organisation is that, Tesla is operating its
major functions in US (Colangelo, 2018). This helps firm in achieving its objectives because US
has higher income growth as well as higher standard of living in comparison of other nations.
Major negative impact of these factor on Tesla is that, due to Covid-19 impact on global
economy organisation has to face difficulty in selling its product because of low GDP growth
and lower income of people.
Social factors: Social factors are those which includes various trends and functions in
social environment of organization. This involves function of organisation by dealing with these
issues. In relation to Tesla, social factors are helping organisation to achieve its business function
as well as impacting positively on organisation. This is because there is trend within market
related to use on energy effective cars which will lower the contribution carbon to environment.
This is bringing opportunity to organisation by providing electric cars which helps in achieving
their objectives. Increase in preference for renewable energy is also a factor which is helpful to
Tesla because organisation in using electric vehicles which are based on renewal source of
energy.
Technical factors: It includes those factors which are related to changes in technology
and impact on organizational performance. There are number of factors which impact on
organisation like Tesla in performing within the market. Some of these are high rate of
technological change and Increasing automation within business. All these are impacting in
positive manner to Tesla. This is because organisation is working with resource in appropriate

quantity which helps organisation in achieving its business objectives by dealing with these
factors (Cuervo, 2019). This will also help organisation in improving its functioning because it
is using separate research and development department to achieve its objectives related to
technological changes.
Environment factors: These are those factors which covers all ecological conditions and
their impact performance of business organization (de Oliveira, 2019). This is important for
organisation to identify these factor because it directly impact on resource availability of
organisation in its target management. In relation to Tesla, this factor is also in favour of
organisation. This is because there is several factor which act as an opportunity to organisation.
These are climate change, expanding environment programmes and rising standard of waste
disposal. This is because Tesla is operation in business of manufacturing products related to
renewal energy which is helpful in fulfilling requirements of all these criteria.
Legal factors: It is also a part of this analysis where organisation has to identify the
factors related to rules and regulations which are formed by legal authority in business
environment (Frosio, 2017). In relation to Tesla, most common factor in legal factors which
impact on performance of organisation are expanding international patent protection and energy
consumption regulation. This all are acting as an big opportunities for organisation because it
helps firm in making expedition to new marketplace as well as using these polices in relation to
improving profitability.
It can be evaluated from above mentioned information that organization can use its
function in appropriate manner to achieve profitability level. In can be seen that there is different
functions which are helpful in achieving business objectives and are related firms functions. This
will help in managing effective decision making ability of organisation.

Evaluate the threat of epidemic or Brexit on your choosing org. (SWOT)
SWOT analysis of Tesla
After analysis the external environment organisation can also use to explore internal
environment which is related to achieving business objectives in timely manner. In context of
this, organisation can also use SWOT analysis. Under this, firm has to analysis its strength,
weakness, opportunities and treats. This framework is discuses in relation to Tesla to scan
internal environment and its impact (Iyer, 2019).
Strength of Tesla
Good employees: Tesla is operating with a good employee base which help company in
achieving maximum output from its different activities. This is because organisation use proper
training and development programmes which are helpful in achieving business objectives.
Leading organisation: Tesla is working as an leading organisation in business
environment which act as strength of organisation. It is Woking hard to become leader in
automotive brand for 2019 by delivering 367,500 vehicles to its customers.
Serve quality to customers: Tesla is known for its services in market where its serves
quality products to its customer. This is because firm use effective tools to achieve its objectives.
This is because organisation use effective research and development system which in helpful in
achieving business objectives.
Weakness of Tesla
Improper demand management: One of the major weakness of Tesla in current business
environment is that it is unable to meet demand of customers. This is because organisation has
limited number of manufacturing units which are not fully developed according to demand of
product and services. This also impact on brand value of organisation (Lin and Wu, 2017).
Shortage of Batteries: Due to impact of BREXIT and COVID-19 on manufacturing and
supply of batteries, Tesla is also facing issues in business environment. These re impacting on
manufacturing and selling of electric cars and also decreasing firm worthiness in market.
Opportunities for Tesla
Merger with other organisation: It is needed to Tesla to make mergers with other
organisation in marketplace. This is because it helps firm in archiving business objectives in
market where it is trading.

Less expensive cars: One more opportunity in front of Tesla is that it can also use to
lunch less expensive cars. This is helpful to Tesla in targeting lower income group and increasing
sales of product and services offered by organisation.
Threats of Tesla
Competition in market: This also act as an threat to organisation while working in
market. This is because there is large number of sellers in market in which Tesla is selling its
products and services. The major competitor of organisation are Mercedes Benz and Honda.
Product defect: This also act as weakness of organisation because in recent time there are
number of customer who raised clams regarding defects in products of organisation. These are
related to some old products of Tesla. This impacted negatively on performance of organisation
as well as brand value (Luo and Bu, 2018).
It can be evaluated from the above mentioned information that there are different factors
which has to be consider by organisation while working in business environment. In context of
Tesla, organisation has number of strengths opportunities which can be use to minimise negative
impact of threats and weakness of organisation.
Analyse competitive advantage (USP)
Unique selling proposition
It can be define as that function in organisation which is related to making the product of
organisation unique from its competitors to achieve comparative advantage in business. It
includes, lowest cost, highest quality and innovative product. In relation to Tesla organization is
using innovation as strategy to maintain USP in organisation. Tesla is manufacturing electric
cars which involve high level of research and development in achieving business objectives. In
relation to current time, most of the organisation in automotive are trying to develop their
products like Tesla. This is because organisation is using effective research and development
where it serve unique products to customer which are also involve quality features. This
performance of organisation can be seen from sale of TESLA 3 car (Lutz, 2018). It became the
most pre book car in relation to any other electric cat in business market. Company always focus
on providing new and innovative product which is completely different from the products of
competitors, this is because it helps organisation in charging better process and providing quality
products to customers. In relation to research and development department of organisation.
Management always pay attention to improve functioning by recruit talents employees. This is

helpful to fir in developing new and innovative products which can be use to achieve objectives
in appropriate time. In relation to current market situation, to achieve business objectives and
separate image in market. Tesla is using innovation to maintain USP of firm.
Evaluation of current marketing strategy
Tesla is performing its functions in market for long period of time where its is using
effective strategies which are helpful to organisation in achieving its business objectives. In
relation to marketing strategies of organisation, it includes different function which are use to
achieve the goals and objective related to selling product and services in market. In current time,
Tesla is using Marketing through Customer Experience programme in organisation. Under this
programmes it is using referral system where customer of organisation refers the products and
services of firm, in market (Minor, 2016). Sales centres is also a method which is used by
management of Tesla to sale cars in target market. Organisation does not use dealership
programme to sale its products to customers. Instead of using this, Tesla use sales centres to sale
there products to customers. In current market situation, Tesla has to shut various of its stores
from the current market , this is because organisation is going to use digital system in selling cars
where it will use online platform to sale the cars to customers. In relation to current market
situation Tesla is using proper design and research methods which are helpful to organisation in
achieving its goals and objectives related to marketing of products. Company use effective
strategy to achieve goals and objectives by minimising the negative impact and composition
from competitor. This is helpful to firm in bringing new and innovative designs to attract
customers and selling products effectively.
PART 2
Analyse Market Segmentation Targeting & Positioning (STP)
STP analysis of Tesla:
STP analysis of Tesla consist of a chin of activities that have to be performed to identify
the specific segments of population and then further development of products for catering of
wants and needs of customers who are part of this segment (Zhang and Szilard, 2018).
Segmentation: it involves dividing of whole population in some groups according to
specific characteristics like age, psychological characteristics and social status. There are
different types of segmentation that can be used by Tesla for purpose of dividing the market

according to a criteria. There is segmentation according to different range of products in Tesla.
Such as
Types of models Geographic
segmentation
Behaviour
segmentation
Psycho-graphic
segmentation
And Model S,
Model 3, Future
commercial Evs.
Region: Asia, north
America, Europe
Density: Rural and
urban
Age: 30 above
Loyalty degree: Hard
core loyal
switchers
Benefit sought: Long
term cost
effectiveness, status
and perception of
environment friendly
product
Personality:
determined
User status: First time
users, non users
Social class: Middle &
upper class
Life cycle: Succeeder
Energy storage,
power pack 2 and
power wall 2
Region: Europe and
North America
Density: Rural & urban
Age: 25-35
Loyalty degree:
Soft care loyal Benefit
sought: Long term
cost effectiveness
Personality:Determin
ed User status: First
time users
Social class: Upper
class
Life cycle: Aspirer
Solar panels,
electrical hardware,
monitoring device
Region: Asia and
Europe
Density: Rural and
urban
Age: 30-65
Loyalty degree: Hard
and soft core loyal
Benefit sought: Long
term cost effectiveness
Personality:
Ambitious User
Life cycle: Succeeder
Social class: Middle
class

status: Potential users
and first time users
Targetting:
Targetting is choosing of a particular segment according to identified results of
segmentation for selling of products. There is use of Geographic segmentation that is according
to age, density and region according to three major product categories (Cheng, Qi and Liu,
2018). This segment provides a clarity related to the market that has to be targeted for the
purpose of placing the product in this market. Tesla is targetting its customers by making timely
technological innovations by use of a sustainable approach in their unconventional
manufacturing process (Paardekooper, 2016).
Positioning:
In this strategy there is application of techniques of marketing mix that is most suitable
for the main target segment of customers. For the purpose of maintaining a differentiation
position in their target market Tesla is using strategy of product innovation that selling of their
premium electric car. Products: Solar panels, electrical hardware, monitoring device, Energy
storage, power pack 2 power wall 2 v and Model S, Model 3, Future commercial Evs. Pricing:
Tesla has adopted a prestige pricing Strategy and market oriented pricing strategy. Electric
vehicle range of Tesla is expensive but customers are ready to pat for driving electric vehicles as
compared to traditional fuel vehicle (Wuryandani, Ismoyowati. and Nugrahini, 2018).
Promotion: Tesla promotion & marketing strategy is based on personality driven PR advertising.
Place: Products of Tesla are place on owned stores, official website, services centres. Tesla is
selling its vehicles through their own sales & services network. Their gallery and stores are
properly visible as they posses premium outlets in metropolitan markets.
Recommended objectives and goals for the choosing organisation
In relation to Tesla, it is operating in global business environment where it is important
for organisation to formulating effective strategies which can be use by organisation to achieve
its business objectives. In relation to current business environment there are various factors
which are used by organization to maintain there working condition favourable. The most
important task of organisation is to formulate effective goal and strategy (Piercy, 2016). Tesla
use to divided its objectives in three type which are primary objectives, Secondary objectives and

Overarching Objective. This can be done by using SMART objectives. Some of these objectives
are mentioned below:
Primary objectives
 Generate demand and drive sales up for TESLA Motor’s electric car: This is the prime
objective of organisation in current market which is specific and coverable all the aspect
of organisation in relation to current market situation.
 Build long-term brand awareness and manage corporate reputation is also a prime
objective of organisation. It is a relevant of organisation function in business market
where firm can use its function to achieve separate image (Varadarajan, 2018).
 Manage TESLA's existing customer base to create loyalty and customer referrals so that
firm can achieve highly competitive employees who can perform on different functions
by managing there performance in relation to time limits.
Secondary objectives
 Increase TESLA's market share from 3% to 5% by 2015. it is a measurable and time
bound goal of organisation is in secondary category. Under this organisation is planing to
achieve increased market share.
 Educate consumers about TESLA's goals to improve the future productivity of
organisation. This is limited objective which is essential to organisation for achieving
success in its operations.
 Increase the waiting list for Model S and Model X from 10,000 to 20,000 cars so that
demand of these products can be managed by organisation in relation to achievement of
market share.
Overarching Objective:
 Educate customers and society about use of electric cars is also and objective which is
came after achievement of above mentioned objectives.
 Inspire employees to perform function in effective manner is also related to achieving
the goals and objectives.

Recommend marketing strategies, based on the application of the marketing mix to your chosen
brand or Sub-brand.
Tesla is a global performing organisation which is operating in electric car industry by
selling its products to number of nations. This is helpful to organisation in achieving its business
objectives and maintain functions. For achieving the objectives and maintaining functioning of
organisation. There are some recommendation which are mentioned below:
 After analysing the function of organisation it can be recommanded to organisation that it
is performing its function as global level where its organisation require a proper
distribution channel which will facilitate function in effective manager and helps in
achieving business objectives. For this, organisation can use to manager with other
ventures so that it can use their distribution network. This will also help in managing
operation and achieving business objectives in effective and efficient way (Soewartini,
2017).
 It can also seen that there are various function which can be transform by organisation
these are related to management system and operation of staff. Under this organisation
can also focus on total quality management to improve its drawbacks related to fault in
products.
 In last, it can also recommanded to management staff of organisation that firm can also
improve its product mix. This can be done by using help of products and services related
to organisation. In relation to product mix organisation can also include products which
are related to electrical items. This will help organisation in using strategies related to
diversification in products (Somaya, 2016).
These are some recommendation which can be use by manager in Tesla to improve product and
service of organisation. This is also effective in achieving the objectives in time effective
manner.
CONCLUSION
It can be concluded from the above mentioned information that it is important for
organisation to formulating and use effective business strategies which is related to current
business situation. It can be seen that Tesla is performing in business market which is related to
electronic cars. This make it mandatory for organisation to use frameworks to analysis situation

of external and internal factors. This is because it is useful to organisation in managing decision
and using it to achieve business objectives. It can also sent that there are various approaches
which can be use by organisation to achieve its bushiness objectives. In relation to Tesla it can is
using different marketing strategies. STP approach is also helpful in determining the market
strategies which can be implemented to capture the customers. In the end it can be concluded
that organisation can use functions which are related to management of firms objectives and
achieving goals in appropriate time period.

REFERENCES
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