Marketing Strategy of Tesla: A Comprehensive Analysis

This report analyzes the marketing strategy adopted by Tesla and its impact on the company's overall functioning. It includes a situational analysis, PESTEL analysis, evaluation of current marketing strategy, and recommendations for improvement.

MKT306
MARKETING
STRATEGY

EXECUTIVE SUMMARY
Marketing strategy refers to set of actions and tactics which defined the goals of firm to
be achieved in what, when and how. This report is based upon marketing strategy of Tesla and
how they use it their marketing procedures. It is divided into sections which is part 1 and part 2
in which part 1 includes Pestel, SWOT Analysis, evaluation of smarketing strategy, marketing
mix & bbenchmarking. Then in part 2, it includes STP approach, goals and objectives of
company and recommendations. Strategies are essential to be used so that correct decision
making process is carried out.

Table of Contents
EXECUTIVE SUMMARY ...............................................................................................................................2
INTRODUCTION...........................................................................................................................................4
PART 1 ........................................................................................................................................................4
Situational analysis .................................................................................................................................4
PESTEL Analysis ..........................................................................................................................................4
Situational Analysis ................................................................................................................................6
Evaluation of current marketing strategy................................................................................................8
PART 2.......................................................................................................................................................12
Analysis of Segmentation, targeting and positioning approach in the reference of Tesla: ...................12
Recommended objectives and goals for the organization ....................................................................13
Recommended marketing strategy based on the application of marketing mix...................................15
Conclusion ................................................................................................................................................16
REFERENCE................................................................................................................................................17
Books and Journal:................................................................................................................................17

INTRODUCTION
In business sector, marketing strategy is essential to be used by organisation to achieve
goals and objectives. It is defined as process of set of tactics and plan which is used by enterprise
to access customers and overall business objectives (Patrutiu-Baltes, 2016). Main purpose of this
report is to analyse the marketing strategy adopted by enterprises to accomplish their goals.
Tesla a leading automobile manufacturing industry headquartered in US. Firm deals in
manufacturing of cars, equipment and tools, and many more. This report comprises of two parts
in which part 1 includes situation analysis in which PESTEL analysis has been explained, then
threat of epidemic by focusing on SWOT, analysis of competitive advantage. Further, in part 2
analysis of STP approach, objectives and goals of organisation and recommended marketing
strategies is being stated.
PART 1
Situational analysis
Introduction to Tesla
Tesla, multiunational and leading automobile corporation headquartred U.S. Firm deals
in many products such as automobile equipment, tools, manufacturing of cars, etc. IT has many
subsidaries across the globe such as Solar City, Maxwell technologies and many more. Main
rationale for situationale analysis is to understand the imapct of macro environment over ther
bsuiness. In business environment there are two types which is external and internal environment
which have an impact on company's overall structure. With analysis of current on-going
epidemic situation of covid-19 this actors have been affected business and services at wider
scale. In context with Tesla, to determine this both environment factors their uses PESTEL
analysis (Kingsnorth, 2019).
PESTEL Analysis
It is a tool or a Framework which is used by organisation to identify or examine the
external factors that impact upon functions and operations of their businesses. It is a time
consuming process to carry out because a deep level of market analysis and research is required
to gain information. In context with Tesla, to analyse current market situation of firm PESTEL
Analysis has been discussed. It comprises of several components which are discussed below-

Political factor- It is a component in which it focuses on up to what level government
interfere within the economy interference with Tesla, they have also affected by this factor as
numerous policies on trade have bad impact on performance of industry and their profit margin.
For example- they are mainly known for their manufacturing of electric cars such as Tesla model
s but in some of the countries due to many political issues it is not possible for them to launch
their innovation.
Economic factors- This component focuses on inflation and deflation foreign exchange
rate etc. In relation with Tesla, the growth rate of market of solar energy is ring and great
opportunity for them which can improve their business level. To avail these opportunities they
can go for following considerations such as decreasing battery cost or renewable energy cost
(Pupo Kairuz, 2020). Tesla mostly gets benefits from low battery costs For example – they
produces electric/ hybrid cars and it is affordable for them because of reducing price rate of
renewbale energy as this external factor is in favourable condition which has positive impact on
entity productivity.
Social- It is another element in which it comprises of variables such as attitude,
behaviour, religion, culture and many more. It is essential for business sector to focus on this
because it have a deep impact for example Tesla is producing electric cars to save the
environment from fuel diesel and other harmful things. This has increased the goodwill of
company across the globe (Roper, 2020).
Technological factor- In this, it pays attention on advance use of artificial intelligence,
software, hardware tools etc. With changing Period of time businesses have the technology at all
aspects. In relevance with given entity, they are known for their advantages of technology such
as autopilot system in their manufacturing cars, highly efficient safety system and many more.
Environmental component- It is another element which is focused by this analysis
because it comprises of green agenda, waste management, recycling etc. In reference with
chosen company, they have standard set of policies and regulations in regards with safety of
environment which is followed by them in most effective manner.
Legal- In organisational sector it is essential for them to follow the legal structure so that
all activities are being carried out properly. This element States the rules and regulations of
contracts agreements which are elected by government are being processed according to the legal
structure or not. Therefore in relation with Tesla, the management of enterprises make ensure

that everything is being carried out properly with the legal structure and under governmental
considerations (Sanito, 2020).
The explained matter states that, external environment have a deep impact on this
operations and functions. Therefore it is important to be aware about external elements so that
everything is carried out properly. During the present situation of Tesla, it is seen that the impact
of external elements have been affecting company's shares which has fallen by 8 %. Reason is
because of prices of electric cars in U.S has decreased profitability of firm.
Evaluation of threat of epidemic or Brexit on company
With this fast moving busines and competitive era, needs an d demands of customers has
changed. In viewpoint of ongoing epidemic sdituation of COVID 19 the overall structure of
organsiatiom has changed and is being affected work enviornment. It is becoming diffcult for
Tesla to generates revenue globally as people uincome level is decreasing. On the other hand,
impact of Brexit is also affecting compamny structure as because of changing rules &
regulations of aurtomobile industry in Europe making it diffcult for Tesla to operate propelry.
Thus, it is seen that the biggest threat os COVID 19 pandemic situation which aqct as threat for
business.
Situational Analysis
In organisation sector situational analysis is required to be examined because it assists
company to make decisions in most effective manner. So Tesla uses SWOT analysis to
determine the impact of situations on firm overall functioning.
SWOT Analysis
It is a Framework which is being adopted by corporations to examine their in a capability
is by accessing strength weakness opportunity and threat. With the help of this tool it is easy to
determine the weak areas of company and improve them significantly.
STRENGTH
 Main strength of Tesla is that it is
located globally and has stepped into
many Asian countries which has
increase their customer base
(Martín-de Castro, 2020).
WEAKNESS
 As they are producing electric cars
around the globe, they have to
implement charge station for cars in
every country which is a cost
expensive step & it limits their

 With innovative step into automobile
industry of making hybrid cars, the
Goodwill in market is increased
which has enhanced their
productivity at higher level.
 Tesla has dominated the vehicle
industry in U.S because of their
producing efficient and AI equipped
electric cars (Bhandari, 2020).
profitability.
 The prices of their products are
slightky huggher as cpopared to their
competitors such as Kia who sell
electric cars at affordbale prices.
Opportunity
 Organisation produces expensive
cars such as Tesla model S what
they have also launched model 3 an
affordable version of model S and
for which they have opportunity to
expand their size market of audience
at larger scale.
 The growing unpin by government
across the globe for environmentaly
vehicles leads to exemprions from
duties which is great opportunity.
THREAT
 With changing period of time many
companies like Mercedes Benz, Audi,
and Volvo are becoming aggressive
in producing electric cars in a market
which is a threat for Tesla.
(Krosinsky, 2020).
 Due to this on-going epidemic
pandemic situation of covid-19 Tesla
white lose their customer ratio in
several countries which will impact
there business growth (Kryscynski,
2020.
From above discussed analysis, it is seen that conducting swot in respective with firm
context it is easy to improve the weak areas of this where they are lacking. Furthermore, it was
just damn to implement strategies and tactics accordingly. Thus, by carrying out situational
analysis, it improves decision making process and other important factors of enterprise which is
beneficial for growth. The main areas where Tesla need improvement is on their price of the
product is required to be revised, management where they can do improvemnety by hiring more
skilled employees.

Analyse competitive advantage (USP)
USP is defined as unique selling price which is selling point for a value of business in
which what unique marketing strategy a brand on in market with respective to their alternatives.
It is essential to analyse the competitive advantage in this fast moving world so that business
may operate for longer period of time. So, TESLA also has USP, such as they are being
considered as high and destructor because of their advanced autopilot system with new
technologies and features. With this unique selling value of their brand they have been able to
place their position in market. Another competitive advantage is that due to their high and
automobile cars they have Goodwill market which enhances their profit margin as compared to
others.
 Diversifying the business- Another advantage of Tesla is that they are diversifying
business into different businesses aspects such as they have entering into market of solar
roof tiles which will help homes read storage of solar captured energy. It has attracted
ample number of customer towards business (Al-Surmi, 2020). In present situation and
position they are focusing into their solar business by using price diversifcation strategy
developing their operations.
 Intangible reputation- It is one of the important competitive advantage which is gained
by them because of their focus on protecting environment from fuel and diesel cars and
this same a company has widen their reputation as well as goodwill globally (Amelia,
2019). As compared to their competitors Mercedes Benz, they have more goodwill in
market as because of their use of differentiation strategy.
Evaluation of current marketing strategy
Strategies and tactics are essential for growth and development of business. So Tesla uses
marketing mix as their current marketing strategy which is used by them with proper
considerations. As discussed above, Tesla is using differentiation strategy within the business
which is beneficial for them. As, it provides Profit to their business uits to be unique from others
which increases their goodwill. Then, current market strategy also affects market growth of
company as due to more businesses and USP they are able to increase their gwoth for longer
period of time. Without use of tactics it is not possible for any enterprise to avail opportunities in
market. Also, according to the changing situations of market and triads they adapt different
marketing strategies which are suitable according to the situations. It reflects their awareness
amongst the business environment.

Marketing Mix-
Marketing mix is approach in which set of tactics are well defined with motive of
achieving organisational objectives.
BASIS TESLA AUDI
Product A product is important for an
organisation because without
it marketing process cannot
be carried out. It refers to a
value or thing which is used
for exchange. Tesla has large
number of products such as
Tesla model S, roadster,
model 3 etc. The
benchmaring of their
products are beneficial from
other competitors such as
Mercedes and Audi because
they have used artificial
intelligence in their auto-pilot
system.
Audi is also an automobile
manufacture which has wide
number of products such as
Audi q series, Audi a series,
Audi sport etc. (Bala, 2018).
In comparison with Tesla,
they have high end products
with better efficieny of
engine but do not complex
artifical intelligence.
Price A pricing is a value which is
used for exchange of sale of
goods and services. There are
many price strategies which
are used by companies such
as penetration pricing,
skimming price etc.
Intelligence with chosen
organisation they adopt
premium pricing strategy.
The benchmarking of their
In relevance with Audi, they
also uses pricing strategies
such as premium pricing
which is used by them at
global level (Blašková,
2019).

pricing is better than the
Audi as because they use
pemium pricing strategy but
they deliver quality & high
standards of technology in
their cars.
Place Place refers to location or
way through which they have
access to customers. For
example Tesla use
distribution through company
owned stores, charging
stations company owned
service centres, online
website etc. Benchmarking
of this component is
measured & analysed as they
have online websites, stores
and service centres
worldwide.
This company also distribute
their product and access to
customer as they have their
official stores around the
globe and service centres.
Promotion It is defined as way of
advertising or promoting
company’s product. So
selected company use many
tools and techniques such as
divorce paper for social
media tools to advertise their
brand. Benchmarking in
promotion is also better
compard to their competitors
such as Audi because they
They also promote their
brand and product so social
media tools such as
Facebook, Instagram,
YouTube and viral
marketing (Patrutiu-Baltes,
2016).

use social media with cost
expensive approach.
Process A process includes delivery
of the product or services to
the end users. To making
sure about their process
retailers have installed a
system in which retailers can
notify whenever there
inventory level or ratios are
going low. Through this
company provides products
to retailer worldwide are
regular interval of time.
Further, their becnchmarking
and markeing strategy is
unique from their
competitors because they
carry out their all process
with use of technology &
softwares which differentiate
hemselves from others.
This company focuses on
their processing system as
they have a well organised
distribution system through
which they are aware about
their shortage of products.
This step improves the
customer satisfaction
(Kingsnorth, 2019).
Physical evidence It refers to physical existence
of enterprise in which it
includes documentation
physical stores etc. In context
with given enterprise, they
have their charge stations
service centres around the
globe which prove their
physical evidence.
In relation with given entity,
day to have physical
evidence as they are located
globally and have a number
of stores, service centres,
etc. As physical evidence
(Pupo Kairuz, 2020).
People In this people are those who In context with this

encounter customers on daily
basis. In reference with
Tesla, people which are
included are salesman, staff,
management etc.
company, they also have
people delivery boys,
salesman and many more.
So, after analysing the marketing mix approach of Tesla it has been seen that company
use their current marketing strategy by not directly accessing to customer but by influencing
them through advertising and promotion. Therefore, it is evaluated that with current use of
marketing strategy of marketing mix they are able to use their resources employees in most
efficient manner which improve their productivity at higher level (Sanito, 2020).
PART 2
Analysis of Segmentation, targeting and positioning approach in the reference of Tesla:
Tesla is one of the leading brands across the globe. In the context of Tesla, It is uses
various marketing strategy.
Segmentation-: It is a model which is uses a various companies which help to marketer
easily planning strategy. Segmentation refers to the divide customer into small groups which
similar needs and characteristics. Tesla also uses STP model that involves identification of
specific population segment and developing products to carte the needs and wants of the
customers. Segmentation on the basis of geographic, demographic, psychographic and
behavioural. In relevance with company, they uses geographical based segmenting of market.
Main rational for this is that not every country has permission of resources of developing or
using electric cars.
Geographic-: Tesla segmentation on the basis of geographic in which included region and
density. They are carter on the basis of region wise North America and Asia Europe countries.
On the basis of density, included rural and urban both area (Martín-de Castro, 2020).
Demographic-: Demographic segmentation on the basis of age, gender, lifecycle- stage and
occupation. In relevance of firm, Age is the first aspect of demographic so it is targeted 30 plus
because that customer is finically strong and purchased the vehicle. On the basis of gender they
carter males and females both due to both are drive the vehicle. Lifecycle-stage is full nest 1, full

nest 2 and full nest 3. Occupation refers to the employees, professionals, senior managers and
executive are involved (Bhandari, 2020).
Psychographic-: It is define on the basis of lifestyle and social status of customers. In the
relevance of firm, Tesla carter middle class and upper class both. In the lifestyle included
succeeded, explorer, aspirer and reformer.
Behavioural-: It is included degree of loyalty, benefits sought, personality and user status. In
context of company, focus mainly those which are hard core loyal and switchers which comes in
degree of loyalty. Personality and user status refer to the determined and ambitious, non-users,
first users and potential users.
Targeting-: Targeting is marketing strategy which includes that breaks a large market
into smaller segment to concentrate on a specific group of customers. Most of the companies’
use this tool developing strategy will help them effectively communicate to the target audience.
In the relevance of company, It is mainly focus premium customers who are the professionals,
senior managers. Carter those customers who are financial secured so easily buy a car because
they are mainly sell a SUV models. It is one of the leading organisation across the globe. It
mainly targeted upper class segment and fulfil the need and wants of the customers. Main
rationale for this is that prices of their cars are higher & which is only affordbale by good
financial income levvel of people.
Positioning-: The last stage known as positioning under this determine the place in the
market. It includes where your product stands in relation to others offering similar products and
services in the market place as well as in the mind of the customers. In the context of Tesla, A
good positioning and make a product unique which is easily differentiated from others similar
product range and it gives a unique selling proposition in order to it is the ability to charge a
higher price and stave off competition from the others ( Kryscynski, 2020). They positoined
them selves as mon segment position in market.
Recommended objectives and goals for the organization
Goals as well as objectives of the business entity are the major step which will give the
management team a reason in order to manage as well as operate all their business functions in
an effective and appropriate manner. This as a result says that this will essential for the company
to set goals and emphasize on the procedure in order to raise their profit margin. In reference to

TESLA, higher authority of the company sets their SMART Goals in order to launch their new
product which is electric cars (Krosinsky, 2020).
Goals and
objectives
Specific Measurable Actionable Relevant Time
Bound
Boost digital
marketing as
well as sales
for launching
electric cars
To raise the
traffic on
the online
and social
media
platform
with the
help of
publishing
blogs on
social media
to grab
attention of
their
customers
20% development
in the goal with
the launch of new
model which will
influence large
number of
customers.
The social
media,
online
platforms as
well as blog
traffic is to
increased by
15% with
the
assistance of
publishing
weekly.
TESLA is grabbing
attention of huge
number of
customers in order
to raise awareness
about their
products which
will increase their
sales.
The total
duration
needed for
completin
g goals is
around 1
year as it
will
consume
time in
order to
manufactu
re.
Becoming
leading
marketer at
the
competitive
marketplace
as a well
known
electronic car
expert
TESLA is a
well known
organization
within UK
which aims
to become
popular
marketer
within
electronic
cars in the
This objective and
goal of the
business entity is
to get success
only when they
speak publicly
and fulfill all the
needs and
requirements of
customers (Al-
Surmi, 2020).
Introducing
new as well
as products
and services
by adopting
new
technology
assist in
order to
acquire
large
By adopting
campaigns, TESLA
will become well
known, fulfill and
meet customer
experience as well
as generating
product which will
aid to reach the
customers along
with maintain good
This will
be
achieved
by
adopting
new
technolog
y and
satisfying
requireme
nts of

auto mobile
manufacturi
ng sector.
number of
publicity.
performance. customers
years by
year.
Recommended marketing strategy based on the application of marketing mix
For each and every business entity, it is very essential for an organization to stipulate
marketing strategies at the time of launching new and innovative products and services at the
competitive marketplace (Sathish, 2019). In this context, marketing mix model consist of some
elements which will provide benefits to the business entity in order to improve their market
share. This will aid an organization in order to develop effective strategies and policies with the
aim of grabbing attention of large number of people towards them. As a result this will aid in
enhancing their profitability and performance at the competitive marketplace. In reference to
TESLA, these elements of marketing mix are going to be discussed as follows:
Product The electric cars launched by business entities which consist of all the unique and
innovative features which can easily gain the attention of people and satisfy them
in a positive manner. These features are usually implemented by business
organisation by examining the requirements of customers with the help of
research and development.
Price As the electric cars introduced by business entity TESLA, have all the unique
features, they would use premium pricing strategy in order to sell their products at
the competitive marketplace.
Place The new and unique product of TESLA launched by them at the marketplace of
United Kingdom at their initial phase. After effectively gaining success at the
domestic marketplace, managers of the company will be able to launch their
product at international market (Amelia, 2019).
Promotion TESLA will effectively promote the innovative and new products and services by
adopting modern marketing strategies. For this, they use platforms like social
media where they can easily promote their products at wider scale (Bala, 2018).

Conclusion
With the help of above stated information, it has been concluded that marketing strategy
plays very essential role in the growth and development of a business entity. It has also been
identified that by effectively implementing all the marketing strategies in order to promote a
product and service in an attractive manner, managers will be able to attract large number of
customers towards them. As the environment and current situation are modified so as the
marketing strategies highly modified as per the customers and their needs. In addition to this, it
has also been analyzed that there are both external and internal factors available at the
competitive marketplace which have the capability to influence the overall marketing
functionality of the company in positive as well as negative manner. Apart from this, it has also
been concluded that social media or online platform is the most effective method with the help
of which company can easily reach to their targeted customers in an efficient manner within
limited time frame. Furthermore, it has been acknowledged that in order to launch new products
within the marketplace on regular intervals help business organization to strengthen their
customers base.

REFERENCE
Books and Journal:
Patrutiu-Baltes, 2016. Inbound Marketing-the most important digital marketing strategy. Bulletin
of the Transilvania University of Brasov. Economic Sciences. Series V,9(2), p.61.
Kingsnorth, 2019. Digital marketing strategy: an integrated approach to online marketing.
Kogan Page Publishers.
Roper, 2020. Tesla Model Y.
Pupo Kairuz, 2020. PESTEL analysis of environment state responsibility in
Ecuador. Neutrosophic Sets & Systems,34.
Sanito, 2020. Economic and environmental evaluation of flux agents in the vitrification of resin
waste: A SWOT analysis. Journal of Environmental Management,270, p.110910.
Martín-de Castro, 2020. The role of corporate environmental commitment and STP on
technological talent recruitment in service firms. Knowledge Management Research &
Practice, pp.1-14.
Bhandari, 2020. Sustainable competitive advantage in a disruptive world through disruptive
business models.
Kryscynski, 2020. Charting a path between firm‐specific incentives and human capital‐based
competitive advantage. Strategic Management Journal.
Krosinsky, 2020. Key Recommendations. In Modern China (pp. 199-207). Palgrave Macmillan,
Cham.
Sathish, 2019 Case Study of Tesla.
Al-Surmi, 2020. The impact of aligning business, IT, and marketing strategies on firm
performance. Industrial Marketing Management. 84. pp.39-49.
Amelia, 2019. Effect of Marketing Strategy and Service Quality Against the Decisions of
Parents. Ilomata International Journal of Management. 1(1). pp.31-37.
Bala, 2018. A critical review of digital marketing. M. Bala, D. Verma (2018). A Critical Review
of Digital Marketing. International Journal of Management, IT & Engineering. 8(10).
pp.321-339.
Blašková, 2019, July. Firm marketing strategy based on analysis of advertising campaigns. In
AIP Conference Proceedings (Vol. 2116. No. 1. p. 400003). AIP Publishing LLC.