Marketing Strategy for Tesla

This report discusses the marketing strategy of Tesla, focusing on situational analysis, competitive advantage, and current marketing strategy. It also explores market segmentation, targeting, and positioning strategies used by Tesla.

Marketing Strategy

EXECUTIVE SUMMARY
The given report is categorised on marketing strategy which is being decided by some
business organisation with the major purpose to enhance their market existence and to attain
short and long term business objectives with high degree of efficacy. Every business is working
for attaining premium position at market competitive edge and to enlarge customer trust over
their product and services. This report is based on electric vehicle organisation Tesla which are
market leader in manufacturing of battery and electric cars. On the other hand this report is
covering situational analysis of the company along with SWOT and STP analysis.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................1
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
PART 1............................................................................................................................................3
Situational analysis......................................................................................................................3
Evaluate the threat of epidemic or Brexit in an organisation......................................................5
Analyse competitive advantage...................................................................................................7
Evaluation of current marketing strategy....................................................................................8
PART 2............................................................................................................................................8
Analyse market segmentation targeting and positioning............................................................8
Recommended objectives and goals for the choosing organisation..........................................10
Recommended marketing strategies based on the application of the marketing mix of chosen
brand..........................................................................................................................................10
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13
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INTRODUCTION
Marketing strategy is defined as those set of actions which are helpful for an individual
and company in promoting and enhancing market efficiency and effectiveness in optimal
manner. This is accumulation of set of planning which are made for the major purpose of
attaining customer perception over offering of an organisation. Marketing strategy is a long term
strategy which is a forward looking approach and helpful in standardising and making path of
goal accomplishment (Caliskan, 2019). This is consisting of ways through which higher
sustainability and competitive edge can be attained by the business due to which success ratio
can be enhanced. The current report is based on Tesla which is the largest and market leader in
manufacturing of electric vehicles. The company was established on 1st July 2003 and at present
they have huge portfolio of electric cars, energy storage, solar products and many more. The
report is association of situational analysis and STP framework so as to get assistance over
targetting the market and marketing strategies as well.
MAIN BODY
PART 1
Situational analysis
This is an analysis which is undertaken by the business so as to examine their internal and
external competencies and to use the same for attaining sustainability as well. Under this various
opportunities and challenges are being analysed by the organisation which are being faced by
them during operations. In the context of Tesla their management is performing PESTLE
analysis so as to understand impact of various dimensions over the business. In this regard
PESTLE analysis is elaborated as under:
PESTLE ANALYSIS
 Political factor: This facto us associated with governmental rules and regulations which
are required to be followed by the organisation in conducting their business operations.
This is included with government stability, taxation policies, inflation rate and many
more. These factors are having high impact on working performance of Tesla and these
are obtaining prominent impact for the company (Blakeman, 2018). Tesla and their
activities are related with auto mobile solution and for this market is having immense
opportunities to grow. The new agreement of national trade is providing huge
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opportunities due to which morale values are boosted up. Along with this as the company
is involved in reducing carbon emission so subsidies are given by government. This is
helping them in enhancing market share due to which favourable market conditions are
propounded which are helping them to penetrate high market size and enhance growth
opportunities as well (Hunt, 2018).
 Economical factor: This is defined as economic stability under which various factors are
associated such as currencies, impact of economy over market stability which impacts
auto mobile business in direct manner. The sales of electric vehicles are increasing which
are helping the nation to boost up their economy. Material cost for Tesla is less as their
batteries are having high margin of profit. This is allowing the company to enhance their
cost effectiveness. On the other hand cost of renewable energy for company is also
decreased and this is giving high success and growth options to the company. As Tesla is
proficient in improving efficacy of their products due to which financial stability can be
improved. In some of the country population is more inclined towards luxury vehicle
such and SUV's. This is advantageous for Tesla as they can pitch their product in
marketplace and introduce their gadgets in the market.
 Social factor: This is associated with lifestyle, emerging trends, customer and their
preferences, investors and their inclination and many more. In this respect Tesla has
aligned their business in order to manage social trends so as to target their audience in
proper manner. The management association of Tesla is ensuring balanced level strategy
so as to meet their objectives of maximising their profitability and developing market size
as well.
 Technological factor: This is associated with technological factors which are influencing
production and innovation in the industry of auto-mobile. Under this industry high
technological advanced features are introduced and these are updated on timely manner.
If businesses are undertaken with high technicalities then auto-mobile company is having
high chances to sustain and access huge customer base in the market. The online mobile
system within auto-mobile is enhancing integrated popularity which is resultantly
enhancing productivity and accessibility as well (Yaghtin, S. and et. al., 2020).
 Legal factor: These factors are reflection of regulations and laws which are required to
be followed by the business during their normal course of working. These are helpful in
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shaping the business and to develop proceedings as well. Under this dimension the
management of Tesla is taking prominent managerial decisions which are helping them to
sustain. Various practices are used by Tesla such as employment laws and many more.
As the business of Tesla is growing at international level so for this high opportunities are
inhaled by the business and management is ready to exhibit proper regulations so far. The
major threat for Tesla is regulations associated with dealership and this movement is
obtaining high edge threat for the company (Martin and Väistö, 2016). Similarly
dealership is yet another threat for the company as this is directly linked with customer
due to which growth is bounded.
 Environmental factor: These factors are linked with environment and amount of
pollution as well. As Tesla is involved in manufacturing of electronic cars so this factor is
giving positive impact to them. The company is making high efforts to reduce carbon
emission which is giving positive impact to them and climate is addressing positive
changes as well. This effort is helping the company to manage their waste due to which
long term sustainability is achieved by them.
Evaluate the threat of epidemic or Brexit in an organisation
Brexit is an agreement which is a withdrawal of European and UK which are acting as
higher threat for all the associations working in both the region. On the other hand this
implication is creating high rigidity in operations and functions of the business get hampered as
well. In the reference of Tesla as their management is performing SWOT analysis to examine
internal factors and intrinsic competencies which are having major impact on performance of
their business (Kolb, 2016). This analysis is helpful in boosting working conditions due to which
performance of the business can also be boosted. Tesla is having prominent place at international
market and they are tapping into new market segments on continual manner. SWOT analysis for
Tesla is elaborated as under:
SWOT ANALYSIS
STRENGTH WEAKNESSES
 The major strength of Tesla is that they
are giving prominent contribution in
advancing and improvising quality of
 Tesla is having presence in
international market but at the same
time they have limited presence in
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their vehicles due to this the company
is having high probability as well.
Company is making high innovation in
their products and gadgets due to which
high technicalities are inhaled in the
business.
 Tesla is having strong presence in
global market due to which the
company is enjoying prominent brand
equity and image. Similarly due to
presence of high brand equity the
company is able to make more profits
as well.
market. For example Tesla is making
huge profits from US market but at the
same time in other developing nation
their presence is quite low.
 Products of Tesla is expensive as in
compared to other rivals and in current
market scenario economy is exhibited
with limited market expenditure, so for
Tesla this is very difficult to place their
product at potential range to enhance
their customer base as well.
OPPORTUNITIES THRETS
 In current market global expansion of
businesses are taking place which is
giving huge opportunities to Tesla. This
is helping the company in advancing
their performance due to which
effective management can be promoted.
Tesla is gaining strategic growth by
which long term growth opportunities
can be inhaled by them.
 In order to manage supply chain Tesla
is having high opportunities, sales and
operational efficacy of the business can
be boosted by adopting various
functions related to supply chain
management. This opportunity may
give high end benefit over profitability
 Tesla is facing aggressive market
competition and due to this there are so
many rivals which are manufacturing
electric cars .
 The prices and materials are highly
fluctuating such as cost of lithium is
shifting and this compound is used by
Tesla in storing their products.
 Due to Brexit situation financial
positioning of Tesla is reducing and
fluctuations in material prices are
decreasing overall profitability of the
company (Jaworski, 2018).
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and sustainability as well (Yoffie,
Baldwin and Kaufmann, 2016).
Analyse competitive advantage
Tesla is abbreviated as “Tera electron volt energy superconducting linear accelerator”.
The company is manufacturer of electric cars and provider of solar services. Tesla is known for
their technological advancement and enhancement as they are inducing continuous changes in
their products. This is an advantageous factor for the company as this is resulting them increased
efficacy and higher production capabilities as well. Better Supply chain of Tesla: The company is managing various models of their four
vehicles such as S, X, 3 and Y. Each product is having their own efficacy and
significance in context of capacity. In 2014 Tesla has introduced their first battery named
“gigafactiry” and as the company is currently working to produce batteries of KWH.
These batteries are enhancing economies to scale as they are continuously performing
with high efficacy and productiveness in order to optimise their outputs and maintain
prominent changes in their products. Tesla is maintaining their partnership with
Panasonic's so as to meet continuous improvement in their batteries (Koo, Kim and Kim,
2016). Tesla's supermarket communication system: The company is making high tech charging
system in which they are developing ease for drivers of Tesla. Their current range of
superchargers in context of power is ranged from 722kwh to 250kwh and higher
capacities are planning to be launched within global level. Their supermarket
communication system is based on pay as you go system under which major benefits are
rendered and other advancements are integrated. Software update of Tesla's: Tesla is planning to launch their air updates such as
smartphones, computers and tablets so as to attain continuous improvements in their
electric cars. These updates are helping Tesla drivers to understand traffic lights, stop
sign control and understand many other rules in prompt manner.
 Tesla's branding: The electric cars of Tesla is maintaining prominent reputation in the
market as the company is laced with effective branding. In current market demand of
customers are varied and this is the reason that every vehicle is having their own
significance as their machinery if different. Tesla 3 model is the most synchronous motor
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as this is completely different form varied products. Their another model S won auto
award as this is having 0-60mph acceleration due to which Tesla is beating to be super
car with quick feature.
 Tesla artificial intelligence: The driving capacity of Tesla is offering “full self driving”
which is a complete package of autonomous feature. Tesla is providing countless images
so as to develop their auto pilot feature as well (Falát and Holubčík, 2017). On the other
hand Tesla is using Tesla explore 2D hardware in order to build up dynamic and
geometric navigation prompt.
Evaluation of current marketing strategy
Tesla is offering electric vehicles and solar panels which are sold within the name of
Tesla motors and they are producing 60000,000 cars and they have earned 2.2 billion dollars.
Tesla is lesser involved in expending their amount on marketing activities as compared to their
competitors. For instance Tesla have spent 58.3 billion dollars on marketing whereas BMW have
spent 196.6 billion dollars on marketing. Tesla is highly emphasised on mouth to mouth
publicity. The company is lesser emphasised on TV commercials and they are focused on
enhancing their mouth to mouth publicity. This marketing strategy is adopted by Tesla in order
to encourage and boosting their market size. Tesla is involved in providing reliable batteries so
as to enhance expectation and experience of their customers. This is giving the company high
environmental sustainability and higher effectiveness as well.
PART 2
Analyse market segmentation targeting and positioning
Tesla is renowned for their engineering and data driven pricing strategy as this movement
is helping the company to attract high customers within specified period of time. Tesla is
engaged in manufacturing electric cars and this way they are working with utmost capacities so
as to inhale high technological features along with lesser prices so as to make their product
affordable (Hoelzlhammer, 2018). The management department of Tesla is using STP model due
to which they are trying to examine and understand customer perception so as to understand their
interest towards business offerings. Within this Tesla is making segment of their market in order
to target their audience in appropriate manner and to remain at the position of market leader.
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STP MODEL: This is a framework which is based on marketing concepts which is being
covered by the market. The company is getting adequate chances so as to select behaviour,
attribute, perception and taste of customer and many more. This is assisting the business so as to
make effective decisions and using their resources and capabilities which are mentioned as
below:
 Segmentation: This is based on dividing the whole market into smaller segments which
are undertaken on taste, features, religion, life cycle stage, status and many more. The
market segmentation of Tesla is highly powerful as they are manufacturing elite and
premium sports cars which are running through electricity. Mono segment positioning is
used by Tesla in maintaining focus of their customer and to examine various activities as
well. The company is managing their plan by which X series model is being developed
by them in order to make effective use of their anticipatory segmentation and to enhance
status quo as well (Long and et.al., 2019). Under this Tesla is making high innovation in
their products so as to attain long term sustainability along with degree of perfection.
Tesla is segmenting the market on the basis of selection of their customers and this is
helping them in providing protection to the environment. The business is working for
enhancement of their revenue and goodwill in marketplace, so with the help of this
dimension their objectives can be attained.
 Targeting: This is an approach which can be used by Tesla in order to target some
particular market in order to develop high profits and engage more customers as well.
This dimension is highly profitable under which managerial authority of Tesla is trying to
enhance their efficacy. Under this the company is targetting over a specified age group so
as to provide position to their product and they are targetting to age group of 30-50. Cars
of Tesla are providing high speed under which male customers are attracted towards their
cars. On the other hand Tesla is putting high efforts in grabbing attraction of those
customer who are aware about environment pollution and are not willing to provide harm
as well.
 Positioning: This is the approach which is being developed by the organisation so as to
receive high market share and to recognise potential customer so that immense market
opportunities can be inhaled by them as well. In the context of Tesla the company is
trying to give prominent positioning to their product of highly efficient and speedy cars.
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Recommended objectives and goals for the choosing organisation
In the context of Tesla their objectives are requisite to have sustainable modifications
under which growth and development opportunities are being associated as well. Under this
context the company is using forward looking approach so as to enhance revenue and to intensify
customer base as well. Tesla is working along with special approach in order to reach out to their
objectives and to attain sustainability (Hena, 2018). The prominent objective of Tesla is to
safeguard environment and to minimise carbon emission. Some of the major objectives of Tesla
is explained as under:
 SPECIFIC: Under this management of Tesla is putting efforts to earn high profits and
enhancing customer base. On the other hand prominent objective of Tesla is to spread
awareness regarding assistance of electric vehicle to environment.
 MEASURABLE: Tesla is measuring their objective of enhancing customer base to 20%
and profit by 18% within 12 months of time duration.
 ACHIEVABLE: This aspect is used by Tesla in order to attain standards within their
outcomes. For achieving goals and objectives the company is providing training to their
employees due to which high level of perfection is being rendered. On the other hand
Tesla is working to minimise carbon emission and to encourage effective utilisation of
scarce resources.
 REALISTIC: Under this Tesla is working along with all special components so as to
attain their objectives on timely manner. In order to enhance sales and profit the company
is taking care of equipment which is being processed in adequate manner. The company
is dedicated to mouth publicity as Tesla is a renowned organisation which can be
popularised by mouth publicity.
 TIME FRAME: For objectives this is required that they get attained within time frame.
For this the major objectives of the company is attained within 12 months.
Recommended marketing strategies based on the application of the marketing mix of chosen
brand
The marketing mix is known as the strategic tool which is being used by the organisation
so as to determine favourable results. Marketing mix is known as the promotional strategy which
is used by the business so as to make their business sufficient and sustained for long term. In the
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context of Tesla by using marketing mix numerous strategies for placing their position at
prominent place. Marketing mix of Tesla is elaborated as under:
 Product: Tesla is manufacturing electric vehicles, solar panels, energy storage, batteries
and many more products as well. By manufacturing unique product the company is
analysing their market size and customer so that to attain prominent position in
competitive edge (Gaya Ferre and Tresserras, 2016). The company is deliberately
working to make environmental friendly cars such as model X, Model 3, Model S and
many more. Tesla is working for making profits so as to reach out to their objectives.
Their Model S is highly popular in electric cars which is seeking growth and
development opportunities for the company.
 Price: This is defined as the monetary undertaking which is being received by customer
in lieu of passing ownership of product and rendering them services as well. This is an
important aspect due to which profitability can be enhanced. In the context of Tesla the
company is using premium pricing so as to capture customer and to appropriately place
their product in the market.
 Place: This is defined as the location at which product or services are being made
accessible for the customers. In the context of Tesla the company is having stores by
which customers can purchase products of the company. On the other hand Tesla is
expanding their business and acquiring various galleries and stores so as to enhance their
customer base and customer attainability.
 Promotion: This is known as the strategies which are adopted by the company so as to
promote their product. Under this aspect company is using traditional method of
promotion and they are using mouth to mouth publicity so as to enhance profit and
customer base as well. On the other hand Tesla is using viral marketing is used by them
so as to reach out to their objectives (Musonera and Cagle, 2019).
 People: This dimension is covering employees of the company by which path of goal
attainability can be made. In this regard Tesla is giving training and development to their
employees so as to boost their skills and morals due to which balanced efficacy can be managed.
 Process: This is known as the process through which products and services of the
company are accessed by customers. In this context Tesla is making prominent efforts to
attract their customer and enhance sales (Galpin, 2019).
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 Physical evidence: This is reflecting design by which products of company is
identifiable in the market. In the context of Tesla their products are specifically
identifiable in the market as they have distinct set of products.
CONCLUSION
From the above report this can be concluded that marketing strategy is one of the
prominent aspect which is being used by the business in order to enhance awareness regarding
product in marketplace and to reach out to their objectives in easy manner. In the context of
situational analysis there are various aspects which are being analysed so as to determine internal
and external capabilities of the business. Further for examining competitive edge and to attain
distinct position there on SMART objectives are required to be determined by the company.
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REFERENCES
Books and Journals
Blakeman, R., 2018. Integrated marketing communication: creative strategy from idea to
implementation. Rowman & Littlefield.
Caliskan, A., 2019. Applying the right relationship marketing strategy through big five
personality traits. Journal of Relationship Marketing. 18(3). pp.196-215.
Falát, L. and Holubčík, M., 2017. The influence of marketing communication on financial
situation of the company–a case from automobile industry. Procedia Engineering, 192,
pp.148-153.
Galpin, T., 2019. Strategy beyond the business unit level: corporate parenting in focus. Journal
of Business Strategy.
Gaya Ferre, F. and Tresserras, V., 2016. Brand valuation-Tesla Motors, Inc.
Hena, A., 2018. Tesla inc
Hoelzlhammer, A., 2018. A Strategic Audit of Tesla.
Hunt, S.D., 2018. Advancing marketing strategy in the marketing discipline and beyond: from
promise, to neglect, to prominence, to fragment (to promise?). Journal of Marketing
Management. 34(1-2). pp.16-51.
Jaworski, B.J., 2018. Commentary: advancing marketing strategy in the marketing discipline and
beyond. Journal of Marketing Management. 34(1-2). pp.63-70.
Kolb, B.M., 2016. Marketing strategy for creative and cultural industries. Routledge.
Koo, K.R., Kim, S.J. and Kim, K.H., 2016. The effects of internal marketing capability on export
marketing strategy, B2B marketing mix and export performance. Journal of Global
Scholars of Marketing Science. 26(1). pp.51-65.
Long, Z., Axsen, J., Miller, I. and Kormos, C., 2019. What does Tesla mean to car buyers?
Exploring the role of automotive brand in perceptions of battery electric vehicles.
Transportation Research Part A: Policy and Practice, 129, pp.185-204.
Martin, D.M. and Väistö, T., 2016. Reducing the attitude-behavior gap in sustainable
consumption: A theoretical proposition and the American electric vehicle
market. Review of Marketing Research, 13, pp.193-213.
Musonera, E. and Cagle, C., 2019. Electric Car Brand Positioning in the Automotive Industry:
Recommendations for Sustainable and Innovative Marketing Strategies. Journal of
Strategic Innovation and Sustainability. 14(1).
Yaghtin, S. and et. al., 2020. Planning a goal-oriented B2B content marketing strategy.
Marketing Intelligence & Planning.
Yoffie, D.B., Baldwin, E. and Kaufmann, B., 2016. Elon Musk's Big Bets.
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