Marketing Strategy for Tesla

This report discusses the marketing strategy of Tesla, including situational analysis, competitive advantage, and market segmentation. It also evaluates the threat of Brexit and provides recommendations for objectives and marketing strategies.

Marketing Strategy

EXECUTIVE SUMMARY
The following report is based on marketing strategy that is being selected by an
organisation in order to enhance its market presence so that both short and long terms goals and
target with adequacy. In this business has worked for to enlarge competitive advancement as it is
achieved by gaining believe and trust of customers. The report is based on Tesla that is an
electric vehicle organisation which produces battery and electric cars from home to grid scale. In
addition report consist situational analysis, SWOT, SMART objectives, market segmentation,
targeting and positioning.

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...................................................................................................6
Evaluation of current marketing strategy....................................................................................7
PART 2............................................................................................................................................8
Analyse market segmentation targeting and positioning............................................................8
Recommended objectives and goals for the choosing organisation............................................9
Recommended marketing strategies based on the application of the marketing mix of chosen
brand..........................................................................................................................................10
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................14
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INTRODUCTION
The marketing strategy defines the suitable set of action that is addressed by an individual
in order to promote and enlarge the market effectiveness is satisfactorily manner. It actually
reflect overall planning that is introduce in order to achieve customer prospective and it is
processed with the support of offered products and services. It is usually a long term strategy in
which an individual is looking forward to achieve all its standardised goal and objective
(Blakeman, 2018). It assist to attain better competitive advantage so that better sustainability is
achieved in successful mode. The following report is based on Tesla that is largest American
electric vehicle organisation and it was established in 1 July 2003 and currently they have
working in electric cars, battery energy storage and solar products and services as well. The
report consist of situational analysis, threat of Brexit, competitive advantage, current marketing
strategy, STP, SMART objectives and marketing strategies used by brand.
MAIN BODY
PART 1
Situational analysis
It is an analysis that is being performed by the business as in order to measure both
internal as well as external consequences through which long term sustainability is attained in
timely basis. In this business has analysed different opportunities and challenges that is faced on
random basis. In relation to Tesla, its management has performed PESTLE analysis in order to
define different constraint that has direct impact over the business performance and furthermore
is as explained below as:
PESTLE ANALYSIS
 Political factor- It is a factor that is based on the government rules and regulations that is
essential to be followed by each organisation (Chaffey, 2019). It include stability of
governance, taxation, inflation etc. that remote and control working conditions of
businesses as it provide revenue to government. The policies of governance has limited
the working performance of the company as it is a prominent factor for Tesla. The
company provide auto-mobile solutions and for this governance provide incentives so it
is act as an opportunity for business growth. The new national trade agreement in
between brings more possibility along with this political values of business is more stable
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by which sustained growth is attain. In addition the financial performance of business is
biggest strength as they get incentives from government so that rate of carbon emission is
reduces. The increment of market share is most favourable condition for Tesla as they get
penetrate business in order to make sustain growth in automotive.
 Economical factor- It defines the economic stability of governance and consist of market
growth, currencies, trade level and many other factor that has direct influence on
automotive business. The sale of electric vehicle is increase so that national economy is
increases. The material cost for Tesla is also be less as like cost of batteries is less so that
profit margin of business is increases. It allows the business to make effective creation so
that cost efficiency is enhances (Hollensen, 2019). The renewable energy cost also
decreases by which Tesla faces more success and growth as in terms to solar panel. In
this ability of Tesla to transform affordability is improves. In addition the economic
instability is raises due to Brexit thus financial performance of Tesla in Asia and Europe
is decreases. In many of the countries people are more fascinated about luxury vehicle
such as BMS, SUVs etc. and it is favourable for Tesla as they have induce luxury by
introducing advanced gadgets.
 Social factor- It is a component that is based on the living lifestyle of public and reflect
emerging trends that is suitable to customers, investors or the employee's as well. In this
Tesla has aligned its business in order to manage social trends and it is processed while
targeting specialize market. The management of Tesla ensure that balance level of
strategy is developed through which maximise benefits is accomplished. The market is
more focused towards low carbon emission vehicles and it is opportunity for Tesla. In
addition customer also preferred renewable energy by which wealth distribution is
improvises within advanced marketplace.
 Technological factor- It is dependent on technological advancement that influence the
production and innovation of auto-mobile organisation (Hunt, 2018). The technologies
has been updated on regular basis and it is opportunity as well as threat for business
growth. If business induce technicalities it makes the company differ from all other
automotive organisations and it is hard to manage easy access of technologies within the
production as it cause higher cost. The online mobile system of auto-mobile increases
integrated popularity that produces easy accessibility.
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 Legal factor- It reflect legislation regulation that consist of different laws and rules that
is developed in order to provide adequate shape to the business. In this management of
Tesla takes managerial decision such as patent protection while expanding business
internationally (Ibrahim, 2020). The sales regulation along with dealership in US brings
both facilities and threat to Tesla. In this direct sales is increases while working in
another country direct sales is not allowed it is persuade while transacting with dealership
and it bounds growth.
 Environmental factor- In this business has tries to reduces the amount of pollution from
the surround. As in this Tesla works to reduces the probability of carbon emission so that
positive change in climate is addressed. It also increases waste disposal by which
working standard of Tesla is increases and in addition long term sustainability is
achieved.
Evaluate the threat of epidemic or Brexit in an organisation
Brexit is basically a withdrawal of European and UK that acts as a biggest threat for all
the companies who has performed its functions over other countries or at wider level. In context
of Tesla its management has perform SWOT analysis as in order to acknowledge internal factor
and its influences over business performance. It is being used to enhance working condition and
performance rating of business so that international presence is developed on continuous basis. It
is as furthermore explain below as:
SWOT ANALYSIS
STRENGTH WEAKNESSES
 The strength of Tesla is that they make
effective contribution towards
advancement and improvement within
its vehicle so that profitability ratio is
increases in sustained mode. Company
make higher level of innovation as by
inducing continuous involvement of
gadgets that is induced with
technicalities.
 The company is having limited
presence in market and it reduces
business growth and rate of
competitiveness (Kingsnorth, 2019).
For example, Tesla attain highest
revenue from US and having minimum
amount of presence within other
developing countries.
 The instantaneous overseas of economy
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 Tesla has strong branding and along
with this they have efficient control on
the production as well by which ability
to gain profit from manufacturing is
increases.
limited the market expenditure. In
addition Tesla's product are
comparative much expensive than other
competing vehicles thus it is hard to
develop larger range of potential
customer base.
OPPORTUNITIES THRETS
 The international expansion of sale is
the biggest opportunity that is faced by
Tesla as in this business performance is
advances by which effectiveness
among management is promoted. Tesla
also gain strategic growth and it helps
to attain long term growth in future
period of time (Lopez, 2020).
 Tesla also make certain opportunity by
managing supply chain through which
sales production and its operation is
getting enhanced on continuous basis
along with this profit share also
increases.
 Tesla faces aggressive market
competition and for this they must have
consider all the different efforts that is
induce while producing electric cars.
 The material and equipment prices is
fluctuated such as lithium cost is
always been increases and it is used by
Tesla in order to store its products.
 Due to Brexit situation financial
stability of business is reduces along
with this resource costing is increases
by which profitability is reduced.
Analyse competitive advantage
Tesla is stands for “Tera electron volt energy superconducting linear accelerator” and
they have produces the electric and battery cars along with the grid of solar services. Tesla
always introduce technological advancement and improvement within its vehicle by which
continuous changes in induced. It is a profitable aspect for the business within which Tesla
works to increase efficiency by which production possibilities is increases. Battery Supply chain of Tesla: The company is working towards four vehicles model i.e.
S, X, 3 and Y and each one having efficiency significance in terms of capacity. In 2014
Tesla introduce its first battery called “gigafactory” and current company works to
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produce batteries of kWH. These batteries cells increases economies of sale by which
innovative manufacturing is performed, wastage is reduced and optimised outcome is
develop so that productive changes is addressed while maintaining perfection. Tesla
maintain partnership with Panasonic's cells that aid continuous improvement within
battery consumptions. Tesla's supermarket network: The company is producing superfast charging stations that
has developed more opportunities to the Tesla's drivers (Morgan, 2019). The current
range of superchargers in terms of power is ranging from 72kWH to 250 kW and it is
higher capacity that is installed all over world. The supermarket channel is based on pay-
as-you-go system that provide higher benefits as while integrating the services with
additional advancements. Software update of Tesla's: The Tesla is being launch new air updates such as
smartphone, computer and tablets that continuously improvise electric vehicle of Tesla.
There is various new updates that is induced by Tesla as like improvised traffic light, stop
sign control, backup camera advancement, door lock improvement, dash-cam viewer,
language support, Tunein promotion, cabin camera etc. Tesla's branding: The electric cars of Tesla has been developed so as to maintain
adequate reputation. The roadster of electric vehicle is varied from small vehicle to fast
vehicle as well by which customer desire is fulfilled. Tesla model 3 having synchronous
motor that makes their vehicle completely different from others. Its model S won auto
award with having 0-60mph acceleration through which Tesla beat quick super-car.
 Tesla artificial intelligence: The driving capacity of Tesla has offered “full self driving”
package as it also have autonomous features as well. Tesla owner provide countless
images while driving neural nets as it keeps develop with autopilot driving feature
(Olson, 2018). The third generation hardware of Tesla explore 2D videos and 3D
leverage that is used to build dynamic, geometric era which is used for navigation.
Evaluation of current marketing strategy
Tesla has offered electric vehicle along with the grid of solar panel and they are formerly
known as Tesla motors that produces 6000,000 car and earn $2.2 billion and it is achieved from
$0 billion budget for marketing. Tesla spends much lesser amount on marketing and it is as by
comparing to its competitor. For instance, Tesla spends $58.3 billion in marketing and BMW
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spends $196.6 million in 2015. Tesla perform its marketing through “word of mouth advertising”
and referral instead of TV advertisement. It is a marketing strategy that is used by Tesla in order
to encourage and enhance market selling in sustained manner. Tesla provide vehicle and battery
that is already be more reliable as from this customer experience has been changes along with
this environmental sustainability is maintained in effective mode.
PART 2
Analyse market segmentation targeting and positioning
Tesla is prominently an engineering firm uses data-driven pricing strategy in order to
attract more of the customers within the stipulated period of time. The company is manufacturing
electric cars and in this they have worked over to advance higher level of technologies so that
affordable changes in vehicle is induced (Perreault, 2018). The management of Tesla is being
uses STP model so as to make better understanding about individual working and perception so
that sustained level of interest is developed. On the basis of this Tesla has segment the market
and then furthermore target the market in order to gain higher position and furthermore it is as
explained below as:
STP MODEL: It is a framework that is based on marketing concept through which
absolute market is covered. The company get adequate chance to select the market as per
behaviour, attribute, perception and taste of customer's. It assist the business to make effective
utilisation of resources and capabilities that is as illustrate below as:
 Segmentation: It is a basis that is used to divide overall market into different slots and it
might be performed on the basis of taste, feature, religion, density, life cycle stage,
benefits, status, age, preference and many other factors as well. The market segmentation
of Tesla is quite simple but powerful and in this they have offer premium sports car that
is processed through electricity. Tesla is using mono-segment positioning and along with
this maintain focus towards to pay attention towards suitable understanding of different
activity (Shah, 2019). The company is working over to develop a plan through which
design model X series. Tesla make efficient usage of anticipatory segmenting and with
this make effective contribution so as to develop status quo. In this Tesla induce
innovation and creation so that long term sustainability is attained with perfection. Tesla
segment the market on the basis of choice selection of customer's that is based on
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environmental protection. In this business works to enhance market share so that better
effectiveness is achieved in term of revenue generation.
 Targeting: It is a prospect in which Tesla works for to target specialize market as from
where more profit is developed within timely basis. It is a profitable aspect in which
management of Tesla has worked to attain higher productivity (Song, 2018). The
company maintain target towards the specified age group that is varied from 30-55 and
for them business has offered vehicles such as Model X, Model 3 etc. In addition to this
as per the concern towards male customer's Tesla design sports car that is having higher
speed. Furthermore, Tesla maintain focus towards the customer's who are aware about
environment and pollution and looking forwards for electric vehicles.
 Positioning: It is a strategy that is developed by the company in order to attain higher
market share and potential so that larger market is covered in appropriate format. In
context of Tesla, they have worked for to manufacturer electric vehicles and along with
this they have make their services completely different from others companies. It is also
being used to maintain higher position so that its market presence within international
market also getting advanced.
Recommended objectives and goals for the choosing organisation
In relation of Tesla and its objectives it is required that company has induce sustained
changes and modification within the working by which it is easy to access more growth and
development. In this the company is looking forward so as to enlarge the customer base so that
rate of revenue generation is increases. Tesla works over with special approach within which it is
required that adequate objective and goals is standardised by the business by which more success
and long term sustainability is attained in easiest manner (Taoketao, 2018). The major objectives
of Tesla is to secure the environment from pollution thus works on to reduces carbon emission.
In this Tesla also get ensure that environment must get protected from lean-burn carbon along
with this it also reflects the corporate social responsibilities that is played by the business in
order to sustain in competitive marketplace for longer period of time. Furthermore,
recommendation about objectives and goals for Tesla is as define below as:
 SPECIFIC: In this the management of Tesla is working for to attain more profit and or
that used to develop larger customer base. In addition Tesla also works for to create better
awareness within the market so that long term profit is attained as from electric vehicles.
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 MEASURABLE: Tesla has measure its objectives and it is concern about to attain profit
share with 25%, potential customers base with 30% and market sales with 35% within the
8 months of period. In order to examine the sale and profit the current sale is compared
with the previous year profit and revenue collection.
 ACHIEVABLE: It is an aspect that is used to accomplish standardised outcome and for
this Tesla provide training and development to its employee's so that they could easily
working is processed with perfection or timely based (Widyastuti, 2019). In addition
Tesla works for to reduce quantity of carbon emission thus for this they make effective
and efficient utilisation of resources by which sales and profit is increases over
continuous period of instance. Tesla maintain certain target and that is to develop more
sales by enhancing profit ratio within 1 year and it is varies from 20%.
 REALISTIC: It is an approach within which Tesla work to cover all the essential
components through which sustained objective is attain in timely constraint. In order to
make continuous increment in sales Tesla provide training to its employee's so that easy
handing of machinery and equipment is processed. In support of it more of the market is
targeted and awareness is spread with support of mouth marketing.
 TIME FRAME: It is an objective that is developed so as to gain more sales within the
period of one year. In this Tesla make suitable understanding about the market need and
requirement and then develop different plans and action accordingly. In this management
has ensure that efficient usage of resource is managed and working is processed with
perfection.
Recommended marketing strategies based on the application of the marketing mix of chosen
brand
The marketing mix is a strategic tool that is used by the business as in order to design
certain set of actions through which favourable ending is resulted in adequate basis. It is a
promotional strategy that is used to advertise the offered products ans services in marketplace. In
context of Tesla, marketing strategies is developed with the support of marketing mix as in this
business work for to enhance market sufficiency with parallel increment of sales and it is as
explained below as:
 Product: Tesla produces electric vehicles, auto-mobiles, solar panel, energy storage and
batteries as in this they have analysed targeted customers as in consideration of energy
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storage and generation of automotive products. The company works for to develop
environmental friendly vehicle as of Model X, model 3, model S that is processed with
higher speed engines (Yaghtin, 2020). Tesla works for to make profitable changes by
which higher values is transmitted as by fulfilling certain objectives. As Model S sedan is
most popular electric car that facilitate sustainable energy that seeks more growth and
development. In support of this strategy marketing standards has been supported so that
long term profitability is achieved in successful manner.
 Price: It define standardised level in which premium pricing strategy is selected by Tesla
so that long term stability and target is achieved with better control. In support of it
company influence customers perception thus more profit is achieved. Tesla uses
premium and market oriented pricing that has involved uniqueness and higher standards
so that willingness of customers to pay adequate prices is getting advanced. It is used to
attract more of the customers so that brand value and image is increases. It provide better
improvement in terms of market orientation so that its solar panel products and services
in relation with subsidiary SolarCity.
 Place: It defines location or venue that is selected by Tesla in order to reach potential
customers as with this it is needed to consider effective distribution of its product in
competitive marketplace. In this Tesla expands its business as by following acquisition
and it involves company owned galleries and stores, official website, owned service
centres and charging stations. Tesla make easy accessibility for customer's by which sales
and profit management is developed in efficient way.
 Promotion: It is an element that is uses by the Tesla in order to communicate while
measuring it with strategies and tactics by which ability to manage and influence the
expectation of customers is managed. Tesla did promotion as in support of viral
marketing, public relation, sales promotion, direct marketing and personal selling.
 People: In this element Tesla offer adequate training and development by which they
could make easy access of machinery and other needed equipments. In addition customer
effectiveness also increases as in this long term balance and stability is managed.
 Process: It referred to the procedure through which Tesla make balance level of
advancement as uses improvised technologies (Zhao, 2018). It used to promote effective
customer relationship so that more of customer get attracted and retain towards business.
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 Physical evidence: It reflect overall designing of vehicles that make Tesla's product
different and unique as by comparing it to other competitors vehicle. It has higher impact
over the profit generation of Tesla by which more of the customer's is influenced to buy
its vehicles so that higher revenue is collected.
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CONCLUSION
It has been concluded from the above report that marketing strategy is the basic
phenomenon that is used by the business in order to spread more awareness in competitive
marketplace so that long term stability is attained with timely basis. It is also being used to make
modifies changes within the working constraint so that potential customer base is developed and
in this long term sustainability is achieved with suitability. In support of situational analysis
different macro environmental factors and impact is analysed along with this SWOT analysis is
conducted from management so as measure the impact on internal analysis that has direct impact
over profitability. In order to analyse competitive advantage strength of business is analysed as it
also support marketing strategies as well. Furthermore, STP is analysed and in support of it
SMART goals and objectives is recommended in terms of strategies development.
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REFERENCES
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