Marketing Strategy for Tesla Cars

This report explores the marketing strategy of Tesla cars, including internal and external audits, customer segments, and recommendations for promoting the brand. It discusses the company's strengths, weaknesses, opportunities, and threats, as well as its unique selling proposition and market performance. The report also delves into customer segmentation based on demographics, psychographics, behavior, and geography. Finally, it provides marketing objectives and recommendations for Tesla to enhance its sub-brand awareness and increase market share.

MARKETING STRATEGY

TABLE OF CONTENTS
INTRODCUTION...........................................................................................................................3
PART 1............................................................................................................................................3
Marketing Audit...........................................................................................................................3
PART 2............................................................................................................................................6
Customer Segments.....................................................................................................................6
Marketing objectives...................................................................................................................8
Recommendations........................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODCUTION
Marketing strategy is one of the most important segment on which companies in high
dynamic business world focuses to leverage strong growth among competitors in industry. The
report explains Tesla cars company marketing strategy, which is one of the highest repudiated
global brand worldwide in automobile manufacturing. Report explains internal audit, external
audit in which company operations are based, which analyzes various business expansion
decisions and capital enhancement has been highly optimistic for Tesla. Report further explains
the USP factor of Tesla, which has enabled brand to reach high profitability goals and enlarge
market share worldwide. Report analyzes the marketing mix factors, profitability strategies and
brand awareness techniques which have evolved company to reach high end global benchmarks.
Globally Tesla has been recognized as one of the best automobile manufacturing unit company
which leverages unique positioning and high customer satisfaction.
PART 1
Marketing Audit
Marketing audit enables to get detailed analysis on all business perspectives which are
internal and external to company framework, positively relating to competitive forces which are
highly functional to the attributes on performance is based (Athukorala and Veeramani, 2019).
Marketing audit directly helps company to evolve in the structure, reach new working horizons
and demographically expand into new countries based on further strategic planning, marketing
techniques and research factors. Tesla manufacturing units are highly one of the most research
advanced company in world, products and services of which have established goodwill among
consumers’ market share. Tesla is one of the biggest companies in automobile industry where
electric cares production has been highly optimistic approach which has evolved overall working
performance and gathered high end goodwill levels. Internal analysis can be understood with
Swot analysis which explains various factors of Tesla working arenas (Hoffman, 2019).
Strengths: Tesla has high goodwill among consumers with the large availability of stores with
latest technology cars and products, latest innovation being built in engines of cars. Strength of
company can be understood with the high capital funds potentiality, latest technology factors

which have brought strong working leverage performance in cars production. Tesla has
established a competitive position for itself in the automobile industry where customers have
been highly appreciating its quality products and evolving business perspectives.
Weaknesses: The weakness in internal structure can be accessed on parameters that there is still
some low manufacturing progress in units which functionally unable company to reach high
demands levels. Electric cars are being in high demand which explains further the increasing
competitive new brands, companies coming up globally with new infrastructure progressive
steps. Tesla faces tough competition from new brands, companies who are producing high
growth in new electric cars customization and engines with new technologies (Salunke,
Weerawardena and McColl-Kennedy, 2019).
Opportunities: Tesla has business growth opportunities with expansion into various new
untapped countries market share where new products, electric cars innovation have huge demand
worldwide. The market functioning abilities have strong yielding opportunistic growth, where
Tesla has huge opportunistic progress with new machinery, revolutionary creativity and diversity
within workforce. These opportunities will enable to captivate long term goodwill within auto
mobile industry with latest research factors and functionally productively aim towards reaching
various key horizons.
Threats: Tesla cars company has threat of increased competition among new brands, companies
in industry with customers preferences dynamically changing and evolving business world .
Globally economies have been undergoing massive structural change recently with new
companies coming up with latest research , high customer satisfaction services and creative
business models to gain long term position of goodwill and strong revenue margins.
External competitive forces can be analyzed on various perspectives which will enable
Tesla to position itself firmly among other competitors with strategic planning, creative business
expansion and diversification into new segments (Jewell,Rivas and Mankin, 2019). Pestle
analysis explains these factors on various levels which constructs overall working efficiency,
large leverage of demographics to which business is expanded:
Political factors: Tesla by expanding its business s into international horizons has gained huge
growth into various economies by the constructional attributes on which frameworks are

organized. UK Brexit decision has affected company sales into European markets where
increased taxes and prices of automobiles have affected its sale figures with large margins.
Economical factors: Tesla with changing economic scenario worldwide which has drastically
affected company business decisions in which cars pricing strategies have been influencing
decision due to changing customer disposable income . Economical scenario has been highly
varying the sale figures of exports for Tesla through which company may face future
sustainability problem, however internal capital structure is highly strong (Iyer,Davari and
Paswan, 2019).
Social factors: Tesla cars due to varying customer preferences and changing social parameters of
public demand in international markets posses’ high competition among other companies.
Socially Tesla also faces huge pressure on social aspects, but the internal functioning of skilled
employees enable company to deliver strong customer satisfaction levels.
Technological factors: Technologically Tesla is one of the most advanced company whose
electric cars have been highly appreciated within customers globally, research department has
been highly active in gaining an optimistic outlook towards further progression projects.
Legal factors: Legally Tesla have strong working operations which are incorporated within the
business framework and compliance of these rules have enabled in reaching strong goodwill
among other competitors in automobile industry.
Environmental factors: Tesla has high considerable focus on environmental factors and electric
cars productions have strong fundamental contribution in reducing carbon emissions from cars,
which are an important strength of company. Tesla company operates high focus on
environmental factors which are predominant focus on which leverage is constructed; moreover
brand goodwill has been highly influential globally (Stathakopoulos, Kottikas and Kottika,
2019).
Competitive edge (USP)
Tesla competitive edge and the Unique selling Product is its biggest strength and the
various competitive edge among world automobile industry , electric cars formulation with latest

technology and innovation has been one of the most profitable car product Tesla has been able to
achieve.
Market performance data
 Market growth: Tesla cars company market growth factor can be understood on the basis that it
has established high coverage among all customers, electric cars and various other automobile
products have been highly demanded worldwide. Customers market share growth represent
the goodwill benchmarks it has created for itself and factors with which there has been long
progressive report produced.
 Sales trends : The sales trends have been high due to innovative business services, large
customer satisfaction levels among buyers worldwide and global presence among other
companies, high potential synergy with which company has expanded into various business
aspects into international countries.
 Profitability: Tesla profitability figures explain how company has successfully established its
business strategies into global automobile industry, customer segments sale and enhanced
goodwill have figured the sales high onto various sectors. Tesla is number one brand whose
electric cars have performed highly strong in business revenues and in generating demand
worldwide (Kingsnorth, 2019).
PART 2
Customer Segments
Tesla is the economic car manufacturing company which provides low maintenance cost
offer the customers to attract them and increase the sales of the company effectively. This also
helps the customers to become loyal and improve their experience to promote brands effectively
there are also different types of product range which Tesla provides and it is very essential for
the company to determine the customer segments of the company to penetrate in the market with
effective products according to needs and wants of the customers to satisfy them effectively
(Almuzel and et.al., 2018). Tesla has divided its customers in the four segments to develop
effective strategies which can helps the company to gain higher sales and improves the profit
margins to compete in the market effectively.

Demographic Segmentation
Demographic segmentation helps to segregate the customers according to caste, religion,
beliefs, education, gender, income level which improve the efficiency of the company to attract
customer. Tesla focuses on high income level and medium income level customers which are
upper middle class as they have the highest demand of cars in the market and holds the majority
of population in the market effectively. This also helps the company to improve the efficiency to
reduce the cost of products and services for middle social class and increase prices to provide
high quality product to high income customers effectively.
Psychographic Segmentation
It is the segmentation which aims in the customer’s habits, perception, personality,
attitude, moral values which helps customers to make decisions to buy. This is very essential
aspect for every business and Tesla has implemented the personality and value of customers to
attract them for electric cars. This also helps the customers who are environmentalist can also opt
for their suitable cars and increase their satisfaction effectively.
Behavioural Segmentation
There are different types of behaviour every customer has and it is very essential for
business to determine all behaviour to formulate effective marketing strategy and attract them in
business. This also helps to increase the potential of the business and helps to improve
profitability in the market effectively (Sawhney and et.al., 2017). Tesla has used the social status
of the customer to separated their customer base and develop effective cars according to their
prices. The company focuses upper middle class and upper class with different products to
increase their satisfaction and motivate them to become loyal to the company effectively. Tesla
also uses the personality of customers to attract them to increase sales and earn more profits. As
the company is having eco-friendly vision which also increases the efficiency of the company to
increase the trust in the customers effectively.
Geographic Segmentation
Demographic segmentations is very essential for business to understand as every market
has different climate which can impact the efficiency of products of the business organization.

Tesla uses specific region or market to increase the satisfaction of their market by developing
products which are demanded in that market. This also helps the customers to increase customer
satisfaction and motivate other to improve their profit margins to compete in the market
effectively.
Marketing objectives
Each business always has required to set clear marketing objectives for increasing its sub-
brand, market share and growth in sales volume and profitability. That’s why top-level
management of Tesla also need to set some productive and effective marketing objectives. When
company will set appropriate objectives, then it can easily achieve effective return from the
market. Tesla’s some major marketing objectives has been discussed below;
Positively influence customers: The marketing team of Tesla should highly achieve this
objectives, because when company positively influence customers in the market, then it will able
to increase its sub brand awareness in the market (Alalwan and et.al., 2017). Through positively
influencing, Tesla can easily increase its market share, growth in sales volume and profitability
as well. That’s why this is one of the major marketing objective to this company.
Build effective relationship: Tesla should build extra-ordinary relationship with people or
customers in the market. According to different business expert, when any business has effective
relationship with their customers, then it can easily gain positive results from the market. Reason
is, most people always like to buy products and services from those businesses which maintains
effective relationship with their customers. In this situation, if Tesla achieve this marketing
objective, then its sub-brand awareness, markets share and growth in sales volume or
profitability will be automatically improved.
Aware people: Currently Tesla mainly provides electronic cars to customers which are too good
for our natural environment. In this situation, marketing team of company need to aware people
or customers about positive impacts of its products and services on our natural environment. This
attribute of company always positively influences people within market, because most people
always like to those brands within market which protect and secure natural environment.
Vehicles which has offered by Tesla are too favourable to natural environment. That’s why

company should properly achieve this marketing objective to increase its markets share, sub-
brand awareness and growth in sales volume in different market segments.
Recommendations
Top-level management of Tesla need to employ various marketing strategies for highly
promoting its sub-brand in the market. Currently different productive marketing strategies are
available to this company, like; social media marketing strategy, product differentiation strategy,
affiliate marketing, sponsorship etc. These all marketing strategies which has based on the
application of marketing mix will really support to the company to promote its sub-brand in
different market segments (Pappas, 2016). The marketing team of company is able to take huge
advantages from social media marketing, because this strategy provides low cost advertising
facility to company. Currently most are using different social media platforms. That’s why if
company run their various marketing campaigns through these platforms, then it will able to
positively influence customers in the market. On the other side, Tesla should sponsor various
events and programmes within various market segments, because this sponsorship marketing
strategy also provides effective return to different businesses. That’s why top-level management
of Tesla should highly consider these all strategies to effectively promote its sub-brand.
CONCLUSION
The report can be concluded on the explanation that marketing strategy is highly
important for establishing long term business revenues and goodwill among consumers
worldwide. Report concludes Tesla company operations audit on internal business aspects,
external market view where it highly focuses on gaining strength and an optimistic growth
which has been highly responsive factor of being the market leader in automobile industry.
Report further concludes brand awareness, profitability and sales volume are the factors which
have enabled Tesla to gain strong brand name globally along with high promotional strategies
and the various techniques which have highly enabled company in establishing long term
goodwill in market share.

REFERENCES
Books & Journals
Alalwan, A. A., and et.al., 2017. Social media in marketing: A review and analysis of the
existing literature. Telematics and Informatics. 34(7). pp.1177-1190.
Almuzel, M and et.al., 2018. Tesla Solar Roof Marketing Plan.
Athukorala, P. C. and Veeramani, C., 2019. From Import Substitution to Integration into Global
Production Networks: The Case of the Indian Automobile Industry. Asian Development Review.
36(2). pp.72-99.
Hoffman, K., 2019. Driving force: the global restructuring of technology, labor, and investment in the
automobile and components industry. Routledge.
Iyer, P., Davari, A., and Paswan, A., 2019. Market orientation, positioning strategy and brand
performance. Industrial Marketing Management. 81. pp.16-29.
Jewell, J. J., Rivas, J. A. and Mankin, J. A., 2019. Tesla: Is the Market Efficiently Pricing or
Efficiently Excited?. Journal of Critical Incidents.
Kingsnorth, S., 2019. Digital marketing strategy: an integrated approach to online marketing. Kogan
Page Publishers.
Pappas, N., 2016. Marketing strategies, perceived risks, and consumer trust in online buying
behaviour. Journal of Retailing and Consumer Services. 29. pp.92-103.
Salunke, S., Weerawardena, J. and McColl-Kennedy, J. R., 2019. The central role of knowledge
integration capability in service innovation-based competitive strategy. Industrial Marketing
Management. 76. pp.144-156.
Sawhney, M and et.al., 2017. Ontela PicDeck (A): Customer Segmentation, Targeting, and
Positioning. Kellogg School of Management Cases.
Stathakopoulos, V., Kottikas, K. G.,. and Kottika, E., 2019. Market-driving strategy and personnel
attributes: Top management versus middle management. Journal of Business Research. 104.
pp.529-540.