Sustainable Marketing and Management

This document discusses the sustainable marketing and management strategies of Tesla Motors. It covers topics such as company background, marketing sustainability, sustainability of the business development strategy, effective communication policy, determination of target market, outcomes of SWOT analysis, and channels of promotion. The document provides insights into Tesla's approach to sustainable energy and its target market.

Running Head: SUSTAINABLE MARKETING AND MANAGEMENT
Sustainable marketing and management
Student’s Name
University Name
Author’s note

2
SUSTAINABLE MARKETING AND MANAGEMENT
Table of Contents
1. Company Background..............................................................................................................3
2. Marketing sustainability...........................................................................................................3
3. Sustainability of the business development strategy of Tesla.................................................4
4. Effective communication policy of the organisation................................................................4
5. Determination of target market...............................................................................................5
6. Outcomes of SWOT analysis.....................................................................................................6
7. Channels of promotion.............................................................................................................7
8. Conclusion................................................................................................................................7
9. Reference List...........................................................................................................................9

3
SUSTAINABLE MARKETING AND MANAGEMENT
1. Company Background
The Tesla Motors was founded in the year 2003. Elon Musk considered being the fundamental
founder of this organisation. The entrepreneurs where initially motivated by the campaign of
the big car companies to obliterate electric car models from the main target market of the
company. The decision of pulling up their only electric car model from the market by General
Motors was highly criticised by Tesla. The main target with which the company interview the
automotive market is the production of an alternative fuel powered vehicle production line
(Stringham, Miller and Clark 2015).
The main mission statement of the company is to develop an innovative as well as affordable
car brand with adequate availability of their product line in all the visible target markets. The
fundamental series A and series B Investment funding operations of organisation is handled by
Elon Musk, who occupied the position of the CEO of the company after the great financial crisis
of 2008.
2. Marketing sustainability
Three main categories are incorporated into the organisation objectives of Tesla Motors
Incorporation. These are, namely, long range as well as recharging flexibility, high performance
of the Cars without compromising over quality, and lastly ensuring energy efficiency of the cars.
The first step of Tesla towards development of sustainable alternative range of vehicles is
providing the maximum charging range for any of the commercially available alternative energy
cars Indian target market, most preferably electricity run vehicles. Secondly, greatest Emphasis
is laid by the organisation on the design of car models (Hardman, Shiu and Steinberger-

4
SUSTAINABLE MARKETING AND MANAGEMENT
Wilckens 2015). Lastly, in order to ensure sustainable development of the organisation, they
want to come up with alternative product lineof electric powered vehicles having the maximum
charging efficiency. The company also projects that this line of cars should endure much lower
relative maintenance costs in comparison to their main competitive product line of vehicles
with the internal combustion engines.
3. Sustainability of the business development strategy of Tesla
The production and operational strategy of Tesla is integrated with their CSR activities. All the
organisation does not publish and unique CSR report for the public every year, aspects of CSR
are incorporated into every business decisions undertaken by the organisation. This is evident
in the mission statement of the organisation in the last year: “Tesla’s mission is to accelerate
the world’s transition to sustainable energy” (Hess and Andiola 2017).
The organisation has conducted detailed marketing survey for analysing which regions will be
most profitable if the launch their alternative fuel powered cars in the market. With this
objective in view, the organisation has invested power in the hands of the Global marketing
head of the company to manage the sites of North America, China, Norway and few other
markets. The organisation and management of Tesla wants to eliminate the middle layers of
inter regional management and that is why the middle managers have been eliminated from
their organisational structure. This will help the organisation in promoting more open
communication channels so that the consumer demand can be directly and more clearly
interpreted by the organisation.
4. Effective communication policy of the organisation

5
SUSTAINABLE MARKETING AND MANAGEMENT
As stated out in the sustainability report of the organisation, any group of employees have the
liberty to communicate any issue or solution if the things that to be relevant for development
and progress of the entire organisation. They can email their suggestions directly to any level of
Hierarchy.
The employees of the organisation are always encouraged to participate in the decision making
process. This is why the organisation can make good progress without the need of of
implementing middle managers in its wider business markets like China. Another significant
aspect of the communication policy of the organisation is that in the faraway markets of the
organisation, the implement the policy of independent management (Dibble 2018). The
headquarters communicates occasionally with the regional management for suggesting them
regarding the current or the upcoming business projects of the organisation. The departmental
leadership is left to the discretion of the leaders and the higher management plays the role of
being a passive advisory body only. In analysis of the special features of the marketing
initiatives of the organisation, it can be commented that Tesla Motors follows a overall flat,
centralised as well as functional structure of organisation management.
5. Determination of target market
The target market of Tesla Motors has changed dynamically in the recent years. The
fundamental target market comprises of the higher upper class people having a disposable
annual income of 10 million to 35 million US dollars. one specific feature of the target market of
Tesla Motors is that the customers attaches high value to luxurious and attractive model of cars
with high safety features. Again, the speciality of Tesla Motors which attracts their base of

6
SUSTAINABLE MARKETING AND MANAGEMENT
primary customers is the high end fuel efficiency that is provided by the tesla cars (Motors
2015). This is a significant aspect of Sustainable production of Tesla Motors. As a part of their
secondary target market, the organisation mainly looks upondemographic base of customers
who are not yet able to afford luxury cars.this group consists of young male and female
students who are studying in the prestigious International universities and are much likely to
get a high end job in the recent future. in fact the diversification in the product line of the
organisation has been brought about recently, keeping in eye this secondary group of target
customers of the organisation. The two newest model of cars that has been introduced in the
market, namely model X and model stream compliments that two primary and secondary
customer basis identify this report. The model X is a second model which has been developed
focusing upon the family oriented customers. On the contrary, the model 3 of the company has
been designed keeping in view the customers who are into the low income brackets. As
addressed by Hettich and Müller-Stewens (2017), Innovation is an integrated component of
sustainability for any organisation. In this context, it can be stated that Tesla Motors has
brought about market inauguration by designing a new product line under the name of model 3
which the lowest starting price range compared to any other product line that has been
designed by the company so far (Kwan 2015). The company expects that they will be able to
enter the Asian market, starting with China with this model 3 under primary projection.
6. Outcomes of SWOT analysis
Considering the overall outcomes of the swot analysis for Tesla Motors, it can be highlighted
that the respective innovation changes introduced the organisations has always help them to

7
SUSTAINABLE MARKETING AND MANAGEMENT
go forward into their specific target markets. Focusing on the projects like development of fully
electric car models as well as solar power storage facility in cars, is what puts the organisation
ahead of many big car manufacturing brands (Motors 2015).
7. Channels of promotion
Tesla Motors differentiate themselves by adopting a completely online promotional strategy in
the context of advertising regarding their fully electric vehicles. In regard to their marketing
strategies, the primary communication channels that are used by the organisation include
content coverage on social media, word of mouth publicity, and so on.
In the remote sales location like Asia or Australia the organisation promotes strong sales
leading teams. This is a unique strategy implemented by the organisation, in comparison to the
following of the traditional methods of television and other media marketing processes. The
average media marketing management cost of the organisation in the year 2017 had been 66.5
US dollars (Gilson and Abbott 2018). The cost of advertising has increased by only 15%
comparison to what happened in the year 2013. Increase of 15% is negligible in terms of
investing on promotion for entering into new and obscured Markets (Moritz ett al. 2015). The
brand marketing strategy that has been adopted by Tesla by means of their YouTube
advertisements as well as Facebook content development has helped to make the brand
recognised in all the chemical market segments for luxury and utility cars where Tesla has not
yet been launched.
8. Conclusion

8
SUSTAINABLE MARKETING AND MANAGEMENT
Investment into the development of new electric model of cars as well as new energy
applications is what makes Tesla Motors unique in comparison to the other big car
manufacturing companies. This is evident in the fact that is less than holding the maximum
share of alternative fuel not card manufacturing industry in the whole world. Nevertheless, high
manufacturing cost owing to the high cost of raw materials hinders their effort of providing the
cars at competitive prices to the customers. However, the sustainable marketing approach of
the organisation is to Foster mass production so that the unit production cost can be reduced.
At the same time, Tesla Motors is focused on expanding the target market, focusing primary on
the location where customers have the capacity of spending on luxurious alternative energy
powered vehicles. In spite of all this innovative strategies, it is a major factor that the company
faces high competition from the major card manufacturing brands all over the world. hence, it
is effect of no wonder that they return on investment is lowered in comparison to the
characteristic equity return of the car manufacturing industry. However, stability of production
is maintained by the alternative production lines of Tesla Inc. however, in the end it can be
stated that irrespective of the market challenges, the organisation has not deviated from the
sustainable goal of making alternative fuel powered vehicles available to customers all over the
world, readily and at most competitive prices.

9
SUSTAINABLE MARKETING AND MANAGEMENT
9. Reference List
Dibble, C., 2018. Exploring the Potential of Environmental Impact Investing for Sustainable
Development: The Cases of Dominion Energy and Tesla Motors.
Gilson, S.C. and Abbott, S., 2018. Tesla Motors (A): Financing Growth.
Hardman, S., Shiu, E. and Steinberger-Wilckens, R., 2015. Changing the fate of Fuel Cell
Vehicles: Can lessons be learnt from Tesla Motors?. international journal of hydrogen
energy, 40(4), pp.1625-1638.
Hess, M.F. and Andiola, L.M., 2017. Fraud Risk Brainstorming at Tesla Motors. Issues in
Accounting Education, 33(2), pp.19-34.
Hettich, E. and Müller-Stewens, G., 2017. Tesla Motors. Business Model Configuration.
Kwan, N., 2015. Tesla Motors Quality Engineering Application and Implementation.
Moritz, M., Redlich, T., Krenz, P., Buxbaum-Conradi, S. and Wulfsberg, J.P., 2015, August. Tesla
Motors, Inc.: Pioneer towards a new strategic approach in the automobile industry along the
open source movement?. In 2015 Portland International Conference On Management Of
Engineering And Technology (picmet) (pp. 85-92). IEEE.
Motors, T., 2015. Powerwall; Tesla Home Battery'. Tesla Motors.
Motors, T., 2015. Tesla Model S. Palo Alto. Online verfügbar unter http://my. teslamotors.
com/de_DE/models/design, zuletzt geprüft am, 17, p.2015.

10
SUSTAINABLE MARKETING AND MANAGEMENT
Stringham, E.P., Miller, J.K. and Clark, J.R., 2015. Overcoming barriers to entry in an established
industry: Tesla Motors. California Management Review, 57(4), pp.85-103.