Sustainable Management and Marketing

Running Head: TESLA 0
Sustainable management and marketing

TESLA 1
Table of Contents
Background................................................................................................................................2
Principles of sustainable marketing...........................................................................................3
Sustainability Report..................................................................................................................6
Evaluation of the strategies and practices..................................................................................7
Conclusion..................................................................................................................................8
References..................................................................................................................................9

TESLA 2
Background
Tesla Motors manufactures, designs and sells electric vehicles and changed the world with
its internal combustion engine in the 20th era (De Santiago et al, 2012). The company is also
known for bringing new ways of transportation, and even new industries like energy
industry that is far superior anything that any automobile company had undertaken.
The company has its facility located at California including its manufacturing and assembly
operations. At present, the company have more than 45,000 staff and their revenue for the
quarter ending March 31, 2019 standsout on $4.541B, a 33.23% rising continously (Lambert,
2018).
Considering target market of Tesla, the company identify that electric vehicles have been
marked as a car that will first save money and the environment. The company developed all
electric vehicles targeted to a segment that have not seen luxury market segment and
electric vehicles. With targeting the customers within the luxury car market, or customers
belonging to upper middle class and upper class, the company provides luxury vehicle
customers a new type of experience entirely different from luxury vehicles such as Audi or
BMW. In terms of target market segmentation procedure, the organisation uses an
defensive type of positioning within the target market segmentation.
In addition, the company new product pricing strategy is formed using psychological
approaches but conversant by a data-driven target market segmentation procedure. In
terms of product strategy, the company uses differentiation strategy in their products such
as model S and X inclusive of various innovation and trendy features.

TESLA 3
In terms of pricing strategy, the company have adopted premium pricing strategy implies
setting high prices of the product to encourage satisfactory insights to consumers (Abrate,
Fraquelli and Viglia, 2012). The company always brings out their vehicles at superior prices
as they believe in product quality and innovation and Kotler (2011) also stated that some
consumers always ready to pay higher price to attain more quality products from the
company. However, in future, the company may use price skimming strategy as various
competitors may come into electric car segment.
In relation to place strategy, the company uses online distribution channel such as official
website of Tesla Australia allow customers to order their products through this channel. In
addition, the company also have various stores in Melbourne and Sydney that includes
various cars sample for the purpose of test drive (Alex, 2018).
At last, the promotion strategy of Tesla implies the company adoption of social media to so
as to advertise company products with the help of online websites like Facebook, Twitter,
and other websites. The company also uses different types of marketing such as viral
marketing (releasing of theTesla electronic car model S for children) and video clips which
are normally different from traditional marketing forms (Tanasic, 2017).
Principles of sustainable marketing
The main objective of sustainable marketing is to promote sustainable consumer behaviour
with offering of suitable products with the aim of environment and economic sustainability
(Gordon, Carrigan and Hastings, 2011). It can be said as holistic approach with the objective
of satisfying the wants and requirement of customers in a more responsible way.