Strategic Marketing Planning for Tesla: Formulation and Implementation of Pricing Strategy

This report focuses on the strategic planning of Tesla's pricing strategy to improve sales. It analyzes internal and external factors affecting the organization and recommends a dynamic pricing strategy. The report also discusses the implementation of the plan, Tesla's vision, and actionable measures.

Strategic Marketing Planning

EXECUTIVE SUMMERY
The aim of this report is to prepare the strategic planning of the organisation that will lead
to the effective price of Tesla in the market. Customer of Tesla are very concerned about the
price of the car as company provides cars at very high range. This report will focus on the prising
strategy of the organization in order to improve the sale of the cars in the market. The reduction
in the price will lad t the increase in the sale. Various prising strategies will be analysed by tesla
and effective will be implemented to increaser the customer engagement and creating better
position in the competitive market.

Table of Contents
EXECUTIVE SUMMERY .............................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Strategy formulation based on internal and external environment.............................................4
Strategy implementation ............................................................................................................5
CONCLUSION AND RECOMMENDATIONS............................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Strategic planning refers to the process of achieving the organisational goal with effective
planning and actions according to the plans. It also includes the measurement of the action in the
organisation that helps the business to get effective and positive results (George, Walker, and
Monster, 2019). Tesla is an international company that is engaged in the production and sales of
electric cars in the market. It is the largest company in the field of electric car production. This
report will discus about the strategy formulation of the planing on the basis of internal and
external that affects the organisation. It will also discuss the implementation of the strategic plan
along with vision and actionable measures. Recommendation will also given to Tesla in order to
improve the strategy of the company.
MAIN BODY
Strategy formulation based on internal and external environment
Strategies are formed with the help of the current situation of the organisation and that
are analysed with the help of internal and external factors that affects the business. Formation of
strategy plan in the organization is majorly done to reduce the barriers of the organisation and to
utilize the opportunities. Following is the strategy formulation of Tesla based on international
and external factors.
Internal Factors
The strength of Tesla to develop first entirely electronic sports car lead to the formulation
of strategy in expansion of the business across the world. The company is the most known in the
field of manufacturing electric cars. The strategy is prepared to effective price for the product of
the business. Sustainable development of the organization is also increasing the demand of the
product and in order to meet the demand of the customer company must increase the production
of the cars and effective production need strategic planning or strategy formulation (Kohnová,
Papula and Salajová, 2019). Tesla's products are known for their performance and sustainable
energy. Unique design of the product also plays an important role that increase the growth of the
organization.
External factors
Various external factors have impact on the business such as the change in technology
lead to the various innovative upgrades in the cars. Trends and taste and preference of the

customer lead to the increase in the demand of the product. Nowadays people are more like to
purchase an electric cars (Istan and Fahlevi, 2020). Tesla's cars are very expensive, this is the
major factor that affect the sale of the business, the formulation of the strategic planning will
include the main priority to decrease the cost and price of the product so that people can get the
product at effective price. External factors contains nature of market that is demand, cars of the
company are highly in demand but the price of the product is causing the major barrier in the
increase of the sale. There are various pricing strategy that formulate by the organisation.
Discount pricing: it refers to the strategy where the original price of the product of
decreased with the purpose of increasing traffic, moving inventory and driving sales in the
business. Customers are attracted with the lower price of the product in the market.
Psychological pricing: it refers to the strategy of practise of setting the price slightly
lower than the whole number. It is created on the purpose that customer does not round up these
prices and it will treat them as lower prices than they really are. This type of strategy is common
for consumer goods.
predatory pricing: In this strategy the price of the product is reduced to eliminate the competitors
in the market. The rival firms are put out of the market.
Dynamic pricing: it is referred to the strategy where the price of the business is flexible accordin
to the demand of the product (Adobor, 2019). It is also known as surge pricing or demand
pricing. The price of the product is reduced to increase the demand of the product and the price is
increase to reduce the demand do increase the supply of the product.
In order to tackle the demand of the customer in Tesla the company must formulate the
dynamic strategy to control the demand of the product as the quality of the product is very good
and it will increase the demand of the product with the help of dynamic pricing I the
organisation.
Strategy implementation
It refers to the implement of the plan that is formulated by the organisation. The dynamic
strategy will be applied in order to control the demand and supply of the product in the
organization (Cavallo, Sanasi, Ghezzi and Rangone, 2020). This will create the flexibility in the
market and people will able to afford the price and it will also keep the quality and luxurious

image of the product with high price in the market. The vision of the organisation also plays an
important role in the strategic planing formulation and implementation.
Vision of the organisation
Vision of tesla is to provide the electric cars that reduce the pollution in the environment.
It also include the sustainable growth by offering the cars at effective price so that the consumer
can afford Tesla cars and the use the sustainable energy that will lead to the better growth of the
country (Weiser Jarzabkowski and Laamanen, 2020). Goal and vision of the organisation are
changed and new goals and vision are set to achieve the effectiveness in the dynamic pricing
strategy that is to maximise the sale of the Cars in the organisation with variable price in the
market.
Actionable measures
It refers to the put the plan into action by implementing the plan into the organisation.
The company is trying to put the dynamic price in the organisation to control the demand and
supply of the product. The measures are taken to check weather the action and operational
activities are according to the pan or not. It is necessary to measure the action that improves the
direction of the organisation to achieve the goal of the business. Plans are being measured by
Tesla with the help of report on sales and after increasing the sale and report after decreasing the
price of the Cars by the company.

Dynamic price comparison
Necessary actions are taken to keep the plan into action the changes are done if the
strategy is not working properly. Market coverage report is measured and analysed by the
organisation that shows the distribution of the product in the market that include intensive
distribution, selective distribution and exclusive distribution. Channel strategy is also analysed in
order to get the effective results in the organisation. The business take various implement in the
supply chain are taken to decrease the price in the organization. This changes in price hourly or
daily lead to the greater benefit to the company as people are more attracted to such strategy and
it also help the organisation to increase in the sale of the product by decreasing and increasing of
the price the profit is also not majorly affected by this strategy (Roska and Sahel, 2018). Tesla
launches the new product and decrease the price of old model to get the higher income from the
new product and it also lead to the increase in the sale of old model such strategic planning of the
organisation lead to the major growth in the competitive market. People are very concerned
about the rice of the Tesla cars and this strategy is also helping them to buy the product at
effective cost.

CONCLUSION AND RECOMMENDATIONS
From the discussion in the report, it can be concluded that various issues were being
faced by Tesla related to price of the product to increase the le of products. Internal and external
factors were analysed that showed demand of the product is affecting with the high price in the
organization. Company took necessary steps to reduce the price and increase the sale that include
dynamic pricing strategy. The sale of product was improved with the help to control demand by
price. Customer were very concerned about the price of the product. Vision were developed to
achieve the goal of business. Market coverage report was also measured and analysed by the
organisation that showed the distribution of the product in the market. Necessaery
recommendation can be given to the organisation in order to improve the strategy planning to
achieve the organisational goal of the company.
From the discussion of the formulation and implementation of the strategic plan in the
organisation, recommendation can be given to Tesla. The prising strategy of the organisation is
effective and it is also increasing the sale of cars in the market. However, the strategic plan
should be more effective by the evaluation of the plan and scheme such as happy hours and
special deals in dynamic pricing will improve the growth of the organisation by increasing the
sale in the company. Customers are majorly affected by the discount deals and it increases the
sale of the organisation at higher level (ul Musawir, Abd-Karim and Mohd-Danuri, 2020). In
order to get more positive results company can also use the digital platforms to marketing and
sale of Tesla products in the market.

REFERENCES
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technological transformation in the context of Industry 4.0. Business: Theory and
Practice, 20, pp.137-145.
Istan, M. and Fahlevi, M., 2020. The Effect of External and Internal Factors on Financial
Performance of Islamic Banking. Jurnal Ekonomi & Studi Pembangunan, 21(1),
pp.137-145.
Adobor, H., 2019. Opening up strategy formulation: Benefits, risks, and some
suggestions. Business Horizons, 62(3), pp.383-393.
Cavallo, A., Sanasi, S., Ghezzi, A. and Rangone, A., 2020. Competitive intelligence and strategy
formulation: connecting the dots. Competitiveness Review: An International Business
Journal.
Weiser, A.K., Jarzabkowski, P. and Laamanen, T., 2020. Completing the adaptive turn: An
integrative view of strategy implementation. Academy of Management Annals, 14(2),
pp.969-1031.
Roska, B. and Sahel, J.A., 2018. Restoring vision. Nature, 557(7705), pp.359-367.
ul Musawir, A., Abd-Karim, S.B. and Mohd-Danuri, M.S., 2020. Project governance and its role
in enabling organizational strategy implementation: A systematic literature
review. International Journal of Project Management, 38(1), pp.1-16.