Marketing Strategy for Business PDF

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Student Number 2057132 Email [e-mail]
Assignment Details
Module name Marketing Strategy for
Business Module Code 7MK007
Lecturer Dr.Ravi Dissanayake For the attention of Dr Imran Khan
Due date 4/10/2021
Assignment title Tesla current Marketing Strategy and recommendations for future sustainability
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Table of Contents
1 Executive Summary ..................................................................................................................... 4
2 Tesla Electric vehicle Productions. .............................................................................................. 5
3 Growth strategies followed throughout ....................................................................................... 6
Tesla-Generic Strategy .......................................................................................................... 7
Tesla’s Intensive Growth Strategies ...................................................................................... 7
3.2.1 Market Penetration (Primary Strategy). ......................................................................... 7
3.2.2 Product Development..................................................................................................... 7
3.2.3 Market Development. .................................................................................................... 8
3.2.4 Diversification................................................................................................................ 8
Major Competitors ................................................................................................................ 9
3.3.1 Competitive Sales and Market Share: ............................................................................ 9
Overall assessment of the marketing mix (4Ps) Analysis ................................................... 10
3.4.1 Product mix to Tesla .................................................................................................... 11
3.4.2 Place/Distribution in companies’ Marketing Mix........................................................ 11
3.4.3 Tesla, Inc.’s Promotion (Promotional Mix) ................................................................. 12
3.4.4 Tesla’s Pricing Strategy followed ................................................................................ 12
4 Critical evaluation of the opportunities and problems facing the organization from both the
strategic and operational perspectives: .............................................................................................. 13
Tesla Inc. SWOT Analysis & Recommendations ............................................................... 13
4.1.1 Tesla’s Strengths (Internal Strategic Factors) .............................................................. 13
4.1.2 Tesla’s Weaknesses (Internal Strategic Factors) ......................................................... 14
4.1.3 Opportunities for Tesla, (External Strategic Factors) .................................................. 14
4.1.4 Threats Facing Tesla, Inc. (External Strategic Factors) ............................................... 15
Proposed TOWS Matrix ...................................................................................................... 16
Tesla, PESTEL Analysis & Recommendations .................................................................. 17
4.3.1 Political Factors Affecting Tesla’s Business ............................................................... 17
4.3.2 Economic Factors......................................................................................................... 18
4.3.3 Social Factors Influencing Tesla’s Business Industry ................................................. 18
4.3.4 Technical Factors ......................................................................................................... 19
4.3.5 Ecological/Environmental Factors ............................................................................... 19
4.3.6 Legal Factors ................................................................................................................ 20
STRATEGIC MANAGEMENT PORTERS 5 FORCES ANALYSIS .............................. 21
4.4.1 Porter's Five Forces in case TESLA Motors ................................................................ 21

4.4.2 Bargaining power of suppliers ..................................................................................... 22
4.4.3 Bargaining Power of Buyers ........................................................................................ 22
Substitute and Threats ......................................................................................................... 24
Ansoff Matrix for Tesla....................................................................................................... 25
4.6.1 Market penetration. ...................................................................................................... 25
4.6.2 Product development. .................................................................................................. 25
4.6.3 Market development. ................................................................................................... 25
4.6.4 Diversification.............................................................................................................. 27
5 Knowledge and understanding of alternative competitive positions/strategies ......................... 27
Analysis of Target market segmentation and targeting strategy ......................................... 27
5.1.1 Target market segmentation ......................................................................................... 27
5.1.2 Geological segmentation .............................................................................................. 27
5.1.3 Demographic segmentation ......................................................................................... 27
5.1.4 Socio-economic segmentation ..................................................................................... 27
5.1.5 Psychographic segmentation ........................................................................................ 27
5.1.6 Behavioural segmentation:........................................................................................... 27
Target markets and targeting strategy – UK context........................................................... 28
5.2.1 Target market 1 ............................................................................................................ 28
5.2.2 Target market 2 ............................................................................................................ 28
5.2.3 (Future) Target market 3 .............................................................................................. 28
Tesla’s brand strategy and Positioning Analysis................................................................. 28
5.3.1 Tesla’s product strategy ............................................................................................... 28
5.3.2 Proposing alternative target markets for Tesla ............................................................ 29
6 Recommended marketing strategy with justification ................................................................ 30
Assumptions, Interpretations and strategic Suggestions based on strategic analysis ......... 30
Conclusion and short-term recommendations ..................................................................... 30
Competitive sales growth and potential product growth:.................................................... 31
Adding value to Tesla’s strategic position .......................................................................... 31
Should be implemented with digital strategy ...................................................................... 32
6.5.1 1. Tesla’s Instagram is more organized ....................................................................... 32
6.5.2 Tesla’s twister is synched with CEO Musk’s Twitter ................................................. 32
7 Conclusion ................................................................................................................................ 34
8 Content Tables ........................................................................................................................... 35
9 List of Figures ............................................................................................................................ 35
10 References .................................................................................................................................. 36

1 Executive Summary
Tesla motors is a USA EV (electro vehicle) and green energy organization located in California. It
was found in 2003 by a set of skilled engineers who needed to demonstrate that individuals who are
motivated to drive electric cars rather than traditional fuel engine cars. Tesla believes that in future
the fossil resources will coming to an end then the world will be moving towards EV sector.
This report describes the market by analysing the internal, external and strategies for investigation
incorporate SWOT and PESTEL. Other researches include new market segment for Tesla by
analysing it’s positioning, Targeting based on the findings.
This report also explores the marketing mix for focused markets and target areas as analysed. Also
report evaluates and concludes that it would be ideal to choose UK as the market for the development
of Tesla in Europe region.

2 Tesla Electric vehicle Productions.
For EV market tesla made it first product, the Roadster uses its powerful battery technology and
electric powertrain. Since then, Tesla initiated the world first since forever luxury EV vehicle –
Model S – which performed best in all segments.
High safety, Efficient, and Production, Model S was able to full fill the requirements for the vehicle
of this century which recorded that can accelerate from zero to 60 within 2.3 seconds.
In 2005 tesla launched Model X which is faster, safety vehicle which was graded 5-star in overall in
US national highway and Traffic administration
Then according to Elon Musk’s plan they launched model 3 for the market
Afterwards, Tesla produced the most agreeable truck ever. It can run up to 1 million cost per
$200,000 which vary on fuel costs
In 2019, Tesla divulged Model Y, a medium size SUV, Cyber truck, which has the features of a
truck than a sports car. (Tesla, 2018)

3 Growth strategies followed throughout
Figure 3-1
Tesla uses generic strategy to achieve their goals in global automobile industry. In potters theory
they are used to call company’s strategy of marketing segment
Tesla’s generic strategy help to keep the company more competitive, and survive in the world
automobile industry. The intensive strategy helps to develop its revenue generation of Tesla. The
growth strategies with the generic competitive strategy help for companies’ operational adequacy
(Rowland, 2018)

Tesla-Generic Strategy
Tesla's uses broad differentiation as its competitive strategy. This broad differentiation implement
the competitive advantage on the manufacturing of new innovations that separate Tesla from
different competitors in the automobile business.
Tesla themed eco-friendly products. In applying broad differentiation competitive strategy, the
every person who are motivated towards eco-friendly can get to its business.
At first, in this automobile industry Tesla used differentiation focus as its generic strategy for their
advantage. In applying, the organization followed it’s the uniqueness of its automobiles, also
targeted high end market for electric vehicles.
These first customers are rich people who have a high inclination to purchase recently launched EV
products. Somehow the company is popular and creation costs are declining, their strategy has
moved for broad differentiation.
Tesla’s Intensive Growth Strategies
3.2.1 Market Penetration (Primary Strategy).
Market penetration is their primary intensive growth strategy. This intensive growth strategy help
business development by expanding sales incomes in current business industry.
Consider an example, with aggressive marketing, Tesla planning to sell huge amount of cars across
the US. Along these lines, these sales help tesla to gain more income and same it made all the way
here up to now.
This intensive growth strategy match with other competitions generic strategy by creating
competitive advantage on achieve their share in the market. This aggressive marketing helped to
expand their incomes and it depend on intensive strategy.
3.2.2 Product Development.
As its secondary intensive growth strategy, Tesla has chosen product development. In this case, the
company develops by growing new items that create fresh market opportunity.
Tesla applies this strategy by producing new EV vehicles with cutting edge innovations for
insignificant environmental effect.
This intensive strategy keeps Tesla’s differentiation generic competitive strategy procedure by focus
high tech innovation to get their customers attention.
When considering, a strategic objective for this intensive growth strategy is to work on research and
innovations.

3.2.3 Market Development.
Tesla uses market extension as intensive growth strategy. This strategy also has entering new
markets and expand its global business activities.
For example, Tesla step by step expand their global market by building up new facilities and
offices. As of now, the Tesla sells few countries, however its normal that future expansion in global.
This intensive strategy upholds Tesla's central goal and vision explanations, which feature
worldwide leadership in the car business, with energy solutions for the transportation and different
areas.
Differentiation generic strategy helps market improvement by developing unique products that pull
in customers comes to new sectors.
In market perspective development intensive strategy, important target for its growth. Global
business by developing up alliances with another companies that make it easy to enter new industry
sectors. (Kissinger, 2018)
3.2.4 Diversification.
Tesla follows the strategy diversification, yet just as an insignificantly huge identified intensive
growth. This intensive strategy help company to go through new business segments.
For instance, the company means to make new battery items for an assortment of manual
applications. Be that as it may, this intensive growth strategy has an insignificant effect on Tesla’s
overall budget performances.
Tesla focuses in the vast majority of its endeavors on market penetration and Vehicle development
to implement its auto and power solution industries. Tesla can apply the differentiation generic
competitive strategy to improve the probability of achievement in using this intensive growth
strategy.
A strategic target linked to diversification is to build Tesla's research and development venture to
distinguish new business opportunities. The other strategic objective dependent on this intensive
strategy is to secure different companies or enter partnership to grow totally new innovations.