Tesla Marketing Plan

This report presents a detailed marketing plan for Tesla's expansion into the Russian market, covering aspects like market analysis, STP approach, marketing mix, and extended elements. It aims to guide Tesla in achieving its growth objectives in the new market.

Proposal Marketing Plan

Table of Contents
INTRODUCTION............................................................................................................................3
Main Body........................................................................................................................................3
Marketing Plan of Tesla .............................................................................................................3
Marketing Mix.............................................................................................................................6
CONCLUSION................................................................................................................................9
REFERENCES...............................................................................................................................10

INTRODUCTION
Marketing plan is a project that specifies marketing strategy of company for coming year.
In addition to this, it is a plan which consists of overview of marketing along with organisational
goals. The chosen organisation for this assignment is Tesla which is founded by a team of
engineers in 2003 and provides its services in automotive sector. Company wants to move into
Russia where electric vehicle providers are not available so as to increasing market share so that
the management have decided to form marketing plan which is made on the basis of marketing
environmental analysis. For this, they have to use several marketing strategies like STP, PEST
analysis of market along with marketing mix which will be discussed under this report.
Main Body
Marketing Plan of Tesla
Marketing plan is an outline of blueprint of marketing strategies which is formed by
organisation so as to providing products in better quality to the customers in market. In the
context of Tesla, this plan is very essential for their managers because with the help of this plan
they will be able in expanding their market share in Russia without facing any difficulty.
Marketing plan for this expansion would be followed by management of Tesla which is given as
below:
Background of Tesla Motors
Tesla Motors is one of the most leading producer of electric cars in automotive sector.
Main objective of company is to serve advanced technology to the customers so that natural
resources of nation would be saved properly. It not only save the environment but also protects
the traditional natural resources like crude oil, natural gas etc. Organisation was founded in 2003
by few entrepreneurs like Martin Eberhard, Elon Musk, Marc Tarpenning etc. but now whole
functions of firm are operated by Elon Musk with 21.9% share in the business (Dibb, 2013).
Headquarter of the company are situated in California, U.S. Mission statement of company in
leadership of Elon Musk is to “Accelerate world's transition to sustainable energy”. With the help
of this mission statement, company is trying to provide new way of transporting in the world.
Apart from that vision statement of company is to creating most energy efficient car of the 21st
century. As per the vision statement company is looking to provide new fuel consumptive car in
automotive segment. Competitors of company are General Motors, BMW, Chevrolet, Nissan etc.

who are providing tough competition to Tesla in global market. Vehicles which are offered by
Tesla are, Roadster, Model S, X and 3. As they have planned for expanding market share in
Russia then both mission and vision statement will be helpful for them in capturing huge market
share in new market with new models like Model M and R.
Marketing objectives
In order to expanding market share in Russia with new vehicles, management of Tesla
have to develop some effective objectives that would be accomplished through expansion
(Baines, 2013). Company have also decided to form SMART objectives so as to make expansion
in Russian Market successfully. These objectives are given as below:
Specific: Specific objective of Tesla behind expansion is to enhancing customer base or
brand image in new market so that growth or success would be achieved in new market area.
Measurable: Managers of Tesla have estimated a growth of around 40% in present
customer base.
Achievable: As the objectives are specifically formulated then management of Tesla have
to provide training or development programmes to their employees so that better contribution can
be received from them during expansion and objectives would be achieved in easy way.
Relevancy: Through expanding market share in Russia, global presence of Tesla will be
build which is beneficial for enhancing sales figures and revenues of firm.
Time Bound: Management of Tesla have estimated a time duration of 8 months so as to
achieving all pre-determined objectives.
Market segmentation- This is a process of dividing market of potential customers on the
basis of characteristics, groups, needs or preferences. Overall aim behind segmentation is to
identifying targetted customers and their needs in the specific market. In order to categorising the
market in several parts, management of Tesla can use STP approach which is defined as below:
STP for business
Segmentation: It is the first step of STP approach in which market is divided on the basis
of common taste and preferences. For e.g., company have decided to sell out their products to
those customers who preferred extravagance sports vehicle as similar to an electric engine. Due
to which, they have decided to segmenting the market on the basis of Demographic because male
customers preferred sports vehicle more than the female customers. Apart from that, an another
segmentation is decided by firm which is psychological segmentation in which they have

targetted those customers who wants to live comfort life style rather than normal. Therefore,
these two segmentations are mainly targetted by management of Tesla so as to achieving huge
sustainability in Russian Market within a shorter period of time.
Targeting: This is the process in which one particular group of individuals are selected
from the whole market place. As company have decided to expand market share in Russia then
the main targetted customers of Tesla are Business persons or rich people who mainly focuses on
their reputation rather than cost of product. Main targetting on these kind of customers will be
beneficial because through this they will easily establish their brand image as most luxurious
vehicle provider in Russia.
Positioning: This is the last step of approach in which Tesla have to create unique and
transparent brand image in the mindset of customers that can be done through expanding market
share in Russia. As management of Tesla have targetted business class and rich class individuals
then they have duty to provide premium quality in the vehicles of company so that brand image
of Tesla would be maintained as a lavish vehicle provider in new marketplace (Kassambara,
2018). In order to getting good position in market, company should provide true or valid
informations to the customers so that they shows more willingness for purchasing the product.
There are some effective strategies of positioning which can be used by the management of Tesla
in order to getting better position in new market. These strategies are given as below:
Using product characteristic or customer benefits – This strategy is basically
emphasizes on the characteristics of the products or customer benefits. For example- As
management of Tesla is planning for expanding their market share in Russia then they have to
illustrate all the characteristics, informations about their offerings such as durability,
economically, reliability etc. to their targetted customers. For instance, a motorbike company
who is established newly at new place then for building good image they have to define
characteristic of their products like their products is most fuel efficient or less fuel consumptive.
With the help of this strategy, they will easily build a good brand image in the mind set of
customers.
Pricing as a positioning – In this approach, organisation which is newly established or
have launched a new product in market they have to make effective pricing strategies so that
brand image of firm will be build in the marketplace in easy manner. For e.g. it has been seems
that most of customers prefers to purchase quality products instead of focusing on cost. Then it is

very essential for the organisation to target the customer and identify their needs so that through
providing products as per their demand good position can be achieved in marketplace. In the
context of Tesla, as company have targetted the business persons and rich people as main
customers then company should manufacture the vehicles so as to fulfilling the desires of these
customers. So that, competitive advantage can be achieved in new market of Russia in easy
manner.
Flexibility positioning – Needs of customers are changed over a time period then it is very
essential for the firm to identifying these so that good sustainability can be maintained in the
marketplace. Most of the firms fails to adopt these strategy because its implementation and
adoption is very costly for the production process because every modification leads to increment
in cost of product (Pappas, 2017). But as the Tesla is new in Russian market then they have to
adopt this strategy so as to satisfying the needs of large number of customers.
From the above discussed positioning strategies, Management of Tesla should chose the
approach of pricing positioning approach because with the help of it they will easily maintained
their brand image as a premium vehicle provider across the Russia. With the help of this
approach, they will easily identifying the demand of their targetted customers and manufactures
the products accordingly which will be helpful for them in building good image in the mindset of
potential customers.
Marketing Mix
Marketing Mix- It consists of seven element which should be considered by the
marketing department of Tesla before developing any kind of strategy for expanding in Russia. It
also helps the company in building good customer base and brand image in new market. In
addition, it is also called as the combination of certain strategies or tactics which is used by
organisations so as to promoting their products in market.
Product - New products which are decided by Tesla is to launch in Russian Market are
Model M and R which are electric vehicles that are offered to customers in new market through
conducting market research which assist company to identify actual needs and preferences of
targetted customers. It can be offered through using distribution and promotional channels.
There are several level of products which can be adopt by the management of Tesla. These are
given below:

Core customer value – In it, the fundamental needs or wants of the customers are
satisfied by consuming product. For e.g. Model M which is an electric car will satisfy the needs
of customers because it is fuel efficient and saves the money of customers.
Actual Product – In it, actual demand of customers are considered then products are
offered by the company. It involves features, packaging, design of products. For example,
company have decided to offer new electric vehicle in Russia therefore, they have duty to make
effective design or luxurious features in Model M and R so that large number of customer get
attracted towards the services of firm (Van der Wagen, 2015).
Augmented product – In it, company have to offer products to their customers rather
than their needs so that needs of them would be satisfied in full manner. As Tesla is moving its
business operations in Russia then they have to provide products of better quality at less prices to
their customers so that customers will always attracted towards offerings of firm.
From the above discussed level of products, Management of Tesla should Augmented
level of product because they are moving in new market then this level is very beneficial for
them to covering large market area in a less time period.
Distribution: It is defined as the means by which products and services of a company are
spread throughout market so that maximum number of people can purchase them. As Tesla is
going to introduce new models of car i.e. Model M and R in the market of Russia, it is essential
for company to have appropriate distribution system so that more number of people can purchase
their product. There are different kinds of distribution strategy such as intensive, extensive,
selective, exclusive and inclusive distribution. All these strategies have different aspect and
benefits. Tesla can adopt extensive distribution where organisation will open number of outlets
and multiple channels in specific geographical locations of Russia to reach out their customers.
Company can locate its outlets at prime locations such as centre of cities and metropolitan area
so that sales can be increased. Tesla will go for franchising outlet where different product of their
company will be sold in large quantity.
Price- Pricing for new products is set as per the needs of potential customers of new
market. Tesla can use cost focus and differentiation strategy in which new products like M and R
will be launched at new prices at starting in Russian Market. For making different products,
company will add new features in their products which is beneficial for attracting new customers
towards the new models of car.

Promotion: It is referred to different ideas and strategies which are implemented by
marketers so that customers can acknowledge about their services and products in a more desired
manner. Promotional strategy is a tactics or plan that manager in Tesla can implement in its
marketing plan so that demand for newly introduced car models i.e. Model M and R can be
increased in the markets of Russia. There are different promotional strategies which can opt by
company, some are mentioned below:
 Tesla can reach its customers with the help of online and traditional advertising. With
this, product will be promoted around large number of people in shorter time span.
Advertisements through radio, newspapers, billboards, TV, social media marketing etc.
can be carried out (Wilson, 2018).
 With the help of sales promotion, Tesla can expand its promotional activities. This
method will involve contests, discounts, loyalty programs, coupons and other incentives
which will force customers to buy products of Tesla.
Extended elements of marketing mix
People: These are important constituent of marketing mix. While delivering service to
customers, person delivering the service is also important. The employees and salesman of Tesla
are required to be skilled in marketing, promotion and sales activities so that they can convince
the Russian customers about products of Tesla in a desired manner.
Process: In context with service providers, processes are required to be defined clearly.
In case of Tesla, main process of company is to assure that every customer is provided same
service and facilities. This will help the company in gaining trust of customers due to which sales
and revenues of company in new market i.e. Russia will expand considerably.
Physical evidence: While marketing, services are highly intangible but still customers
prefer to rely on physical proofs and cues before buying a product or service. Hence, it is
important for Tesla to have physical evidence so that customers can trust their service and
product quality. Signs, symbols and location of outlets acts as a physical evidence for Tesla.
Beside it, official website of company and online advertisements also acts as physical evidence
for company.

CONCLUSION
It has been summarised from the above report that Marketing plan is very essential for an
organisation because it guides the managers of firm in identifying the targetted customers along
with their needs. So that, products would be manufactured accordingly which helps the firm in
gaining growth and success in market. In addition, positioning is also important because it
defines the class of company in which the products are offered by them to the customers. It is
also very essential for the organisation to conduct marketing mix under the marketing plan so
that products of firm should be delivered in the market with proper quality.

REFERENCES
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Online
Marketing Process. 2018. [Online]. Available through:
<http://www.businessstudynotes.com/marketing/principle-of-marketing/explain-the-
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Mission and Vision statement of Tesla. 2019. [Online]. Available
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