Marketing Strategy Report: An Analysis of Tesla's Business Approach

This report provides a comprehensive analysis of Tesla's marketing strategy, examining its approach to the business environment and market dynamics. It begins with an executive summary and introduction, followed by a detailed situational analysis using PESTLE and SWOT frameworks to evaluate the external and internal environments, including the impact of political, economic, social, technological, legal, and environmental factors. The report also assesses Tesla's unique selling proposition (USP) and evaluates its current marketing strategies. Part 2 delves into market segmentation, targeting, and positioning (STP), recommending specific objectives and goals using the SMART framework. Finally, it suggests marketing strategies based on the marketing mix to enhance brand awareness and achieve sustainable competitive advantage in the electric vehicle market. The report concludes with a summary of findings and recommendations, supported by relevant references.

MARKETING
STRATEGY

EXECUTIVE SUMMARY
In terms of exchanging products and services within in business environment, it is important to
carry proper and effective marketing strategies which is useful for company in terms of effective
survival in market and also helps in achieving their desired goals and objectives. It is undertaken
as an effective plan that tends to induce and attract customers towards them to purchase effective
products and services. For this, it is also important to have good image and reputation within the
business environment that helps in accomplishing sustainable competitive advantage within the
dynamic business environment. Moreover, report covers the environmental analysis considering
the USP and effective evaluation of marketing strategies. Besides this, it also undertake
prominent analysis of target market, develop suitable goals and objectives and also suggest
suitable marketing strategies regarding brand awareness.

Table of Contents
EXECUTIVE SUMMARY ............................................................................................................2
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
Situational analysis (PESTLE)....................................................................................................1
Evaluate the threat of epidemic or Brexit using SWOT.............................................................3
Analyse competitive advantage (USP)........................................................................................4
Evaluation of current marketing strategy....................................................................................5
PART 2............................................................................................................................................5
Analyse Market Segmentation Targeting & Positioning (STP)..................................................5
Recommended objectives and goals for the choosing organisation (SMART)..........................6
Recommend marketing strategies with the help of marketing mix.............................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Marketing strategy depicts the overall business formation in terms of reaching towards
the prospective of consumers and convert them into the products and services of customers in
terms of running business. In terms of this, marketing strategy it include the value proposition,
key brand information, data for target customers and so on. Marketing strategy is the forward
looking approach and an effective plan of company undertaking the fundamental goals which is
useful in achieving sustainable competitive advantage by understanding the requirements of
customers. It also tends to include strategic planning undertaking the analysis of company and its
strategic situation for the formulation, selection and evaluation of market oriented competitive
positioning that contribute for the goals and objectives of company (Mothersbaugh and Hawkins,
2016). In order to carry forward this report, Tesla is considered which is an American electric
vehicle company situated in California. Moreover, company specialises in electric vehicle
manufacturing and battery energy storage for the development of their product. Moreover, the
report is divided into two parts as first one include the analysis of both internal and external
environment and also consider the USP by evaluating the current marketing strategy. Meanwhile,
second part include the analysis of target market, recommend significant objectives and
recommend marketing strategies based on marketing mix.
PART 1
Situational analysis (PESTLE)
PESTLE Analysis is useful in examining the overall environment that undertake various
risk factors and also develop effective strategies that are useful in overcoming these risk barriers
and uncertainty. Moreover, it is useful in terms of scanning the several components that exist
within the business environment and consider various factors that relies under macro
environment. Its few factors are mentioned as: Political: It impact the business aspects including trade agreements, government
incentives and also tends to increase the economy. Along with this, Tesla get funding
from government which is useful in overcoming from the debt problem and also tends to
offer significant incentives to those who purchase electric cars by offering tax credits
(Kingsnorth, 2019). For this, government took major steps to enhance the development of
electric and hybrid engines in terms of qualifying the particular tax credit to purchase
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electric car. Besides this, Tesla is expanding its business into other countries but for this,
success in these locations also depends on the local economy of nation. Economical: These factors include decrement in renewable resources and its cost
undertaking the economic stability and concerning issues. Moreover, after the shortage of
fuel, demand of electric vehicles risen at the global level that leads to decrease the cost of
renewable resources and permit Tesla to make products more attractive and develop
options for environment friendly (Key and Czaplewski, 2017). Moreover, increase in the
demand of luxury vehicles such as SUVs and BMWs becomes an opportunity for Tesla to
make luxury vehicles considering the latest gadgets and technology. Social: These factors impact the overall business of Tesla in terms of increasing
popularity for low carbon emission and also tends to increase the preferences of
renewable energy. For this, enhancement in the preferences for the renewable energy and
less carbon use prominently impact the demand of the products and services of company
(Morgan and et. al., 2019). Despite from this, Tesla develop cars for those customers who
prefer eco-friendly products and electric vehicles are helpful in terms of eliminating the
use of engine or fuel vehicle as it is better for the environment. Tesla is more sustainable
and does good job in order to maintain its place in market with the help of electric cars. Technological: These factors consider the increasing rate for the automation in business
and also plays major role in technological changes as these changes significantly impact
Tesla as the development of technology can become more threatening. For this, Tesla
spend most of its capital on the research and development and also able to keep itself
updated with innovation (Cacciolatti and Lee, 2016). Furthermore, Tesla tries to become
fuel efficient and also develop way for the future sustainability. In terms of this, the
vehicles of Tesla are developed in terms of adopting new technology not like the
traditional options. Besides this, technology is dynamic and also get obsolete with time
and it require constant development and creation in terms of advancing it. Moreover,
Tesla also relies on the technology in terms of manufacturing its new vehicles as this put
both positive and negative impact on the the running and functioning of company. Legal: These factors tends to delay for the growth of company also disrupter regarding
the change in the industry that has began to use the direct sales with the help of company
owned stores rather than considering franchised dealership. For this, Tesla tries to expand
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into new market and also keep up to date for the international patents that can also be
intercepted by the legal problems. For this, company also focus on the environment
friendly products that tends to promote their products considering the energy efficient and
also make sure as it is abided by the international standards and regulations.
 Environmental: These factors consider the climate change and also expand for the
environmental programs as climate change is the serious issue which is related with
significant opportunities and threats that is created for Tesla in terms of promoting the
eco-friendly products (Katsikeas, Leonidou and Zeriti, 2019). Along with this,
environmental programs also tends to spread awareness that leads to influence the use of
fossil fuel that exist within the environment. Moreover, the cars of Tesla is marketed as
the environment friendly products and also use as the electricity instead of gas as Tesla is
abided by the environmental standards and barely influence carbon emissions.
Evaluate the threat of epidemic or Brexit using SWOT
SWOT Analysis is useful in identifying and examining the internal factors considering
the strengths, weaknesses, opportunities and threats. It represent the strengths that should
maintain the profitability of company for the longer period of time and also make sure the
competitiveness in terms of achieving the long term success in the automotive and renewable
energy market. Few factors are as follows: Strengths: It include that company has top employers which is the key factors for the
remarkable success of company as Tesla emerged as the ideal company for their
employees because of its diversity and the culture that motivate innovation (Baran and
Galka, 2016). Moreover, it also considered as the leading automotive company
considering the issue in which the sales of Tesla increased and also become a leading
automotive brand in order to deliver around 367,500 vehicles. Moreover, it leads to offer
best electric cars as these cars proven as the best covering maximum distances that tends
to occupy the top three places in prominent range. Despite from this, Tesla also
dominates the electric vehicles of U.S which is the most sold electric vehicle and Tesla
also launched the comprehensive insurance program for its vehicles for the association
with the Mutual insurance company. Weaknesses: Tesla has its weakness considering the manufacturing complications for the
higher standard innovation that is greater and undertake production risk and mechanical
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complications. For this, Tesla face continuous launch for the manufacturing and
production that delays at the time of launching their new vehicles and other products.
Moreover, company is also unable to meet the demand that might affect the brand value
because of highly experimenting and complicated process as because of this, company
might face an unbalanced supply and demand that meet the requirements of production. Opportunities: The most prominent opportunity for Tesla is the sales expansion within
the untapped market which is also unsaturated in the field of automotive and renewable
energy markets. Moreover, Tesla is expensive because of its unconventional reliance with
innovation that need maximum financial support in terms of entertaining the new
technology (Alqahtani and Gupta, 2017). It also bring battery production technology that
help Tesla in order to increase its manufacturing rate while reducing the production cost.
 Threats: The prominent threats include premium quality assurance and high standards of
manufacturing within the automobile industry that face significant product liability
claims by company face fear to become one of the biggest financial blows. For this,
various brands tends to launch their own environment friendly technology that offer their
products in comparable low prices and also tends to define threat for company which
thrives for the unique value for the innovative cars that is quite expensive and
unaffordable.
Analyse competitive advantage (USP)
A unique selling proposition leads to define that company itself has its unique position
within the market area which is important in order to create pricing power for the business and it
also focus on the energy that develop prominent things in order to deliver the ideal group for
customers (Rutz and Watson, 2019). For this, developing effective unique selling point is differ
from the business and also offer some best and effective practices that tends to work across the
marketplace as the own itself apply to develop its own unique selling point. Moreover, there are
various ways that helps in creating competitive advantage for Tesla:
Company need to describe their target audience: Before taking entry in market, Tesla
need to undertake its target audience which is useful for company in terms of developing its
image and also helps in making prominent modifications. It also tends to identify the target
customers who are willing to pay for the product and helpful for company in terms of selling
their product to target customers which is useful in order to sell their products.
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Social media: Tesla also undertake social media channels and social campaigns that are
useful in order to increase the sales of company which is beneficial to attract maximum number
of potential customers (Hunt, 2018). Along with this, it is also helpful for company in terms of
attracting youth and those people who are environment friendly. In this, company undertake
various methods and channels including facebook, instagram and twitter as on this, they tends to
offer prominent advertisement with the help of pop-ups and other ways that are useful in order to
attract customers as it is important for Tesla to increase their sales and revenues.
Offer best customer services: In order to attract and retain existing customers, Tesla
should offer good customer services that is useful in attracting maximum number of customer
towards them and also beneficial for increasing their market growth and image. As because of
good customer services its customers spread the good things of company through word of mouth
which is useful in attracting more and more customers.
Evaluation of current marketing strategy
The current marketing strategy of company is better customer experience which is used
by Tesla in order to attract and retain their customers and for this, respective company also tends
to have referral program in order to encourage their customers to purchase the prominent
product. Moreover, customers also get something as per their needs and wants that is added
according to the enjoyment that people get by engaging with company (Vieira and et. al., 2019).
Along with this, Tesla also appeal for the effective customer base which they continue in the
another form and also available for those who made the large number of referrals. Moreover, the
marketing strategy of Tesla is based for the avoidance for the paid advertising for the electric
auto-maker that put emphasis on social media marketing and also provide good and healthy
customer service. Moreover, the target market segment of Tesla depicts the individuals that are
different towards the environmental issues and put negative impact on the environmental
implications of CO2 emissions. For this, Tesla appeals for the physiological needs for the target
customer segment in terms of feeling better for purchasing of electric cars and use solar panels.
PART 2
Analyse Market Segmentation Targeting & Positioning (STP)
Tesla consider anticipatory kind of positioning within the target market and segmentation
process. As they position for the Tesla's product and services for the market segment which has
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low turnover as it is based on the forecast that tends to increase within the future. It is undertaken
as the chain of activities that include identification of particular population and also develop
products in terms of catering the needs and wants of customers. The below STP is based on the
model of Tesla named Tesla Roadster and basic evaluation is as follows: Segmentation: It tends to undertake the geographic area in which people live in suburban
neighbourhoods and usually very developed as in this the developed market include the
age group of 40-55 and also consider family formation which is the age group of 25-40
that approach for the development in market (Hollensen, 2019). For this, cars are required
for effective transportation and considering the psycho-graphic areas which is
environmentally conscious and its aim is to look for companies which is socially
responsible for the marketing orientation. Targeting: Its target market include the developed market which is between the age
group of 40-55 as Tesla's products are the sports vehicles and also target male customers.
The products of Tesla is quite expensive and people who are having good income source
and does white collar jobs tends to afford the products and maintenance of Tesla.
Moreover, they also have high income that offer lot of disposable money. As these are
the individuals who are socially responsible for the environment and its orientation.
 Positioning: Electric cars are very common in market and tends to attract maximum
number of customers in terms of making its position in market which is best of Tesla. For
this, Tesla need to keep things in mind in terms of offering effective customer services
which is useful in marking its presence in market (Samiee and Chirapanda, 2019). It also
tends to grow awareness regarding the global warming and climate change as people feel
compelled in order to help for the environment and Tesla need to fill prominent gap for
the environmental consciousness.
Recommended objectives and goals for the choosing organisation (SMART)
Objective: The prominent objective of company is to increase the brand awareness of Tesla
Roadster in market which becomes possible with the help of spreading awareness for the
effective development of company in market. Specific: For this, the objective should be precisely describe the behaviour for customers
regarding the achievement of particular result which is concerned with the frequency and
percentage.
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 Measurable: It is important while developing products as it hugely influence the specific
term and the objectives should be measurable and also derived from the system that can
record the behaviour for the focused objectives. It is measured while company
accomplish its desired goal. Achievable: Objective should be achievable undertaking the significant principles and it
should be achieve with the help of effective motivation for developing prominent concept
to adopt effective goals and targets by considering the time period (Kennedy, Kemper
and Parsons, 2018). Realistic: The goal should be real as it leads to attract maximum number of people in
order to get chance to develop their image in market and also declare their achievement.
 Timely: In this, Tesla need to decide suitable period of time which is useful
accomplishing prominent objective like setting suitable time such as developing and
spreading awareness within 6 months.
Recommend marketing strategies with the help of marketing mix Product: All the products of Tesla tends to built high end electric vehicles and the
product of Tesla which is Tesla Roadster is excellent in order to handle and attract
maximum number of customers and it also built spacious offerings with additional seats
at the back side. Currently, company tends to offer various models that are available in
market with effective purchasing that also release new SUV model (Bang, Joshi and
Singh, 2016). The roadster model of Tesla is moved towards to create a new car which is
high in demand in sedan class. Moreover, there are various options to choose from
depending on the price from the customers who are willing to pay for depending on the
most convenient thing for them. Price: The price factor of Tesla depends on the preferences of customers as the price
range depends on the packages for the selection of the customised processing which is the
very first option of this process and it put huge impact on the prices of car. Company also
take cost into its consideration in order to set the price level which is followed by the
competitive based pricing strategy which is easy to attract large number of customers and
helps in stealing the customers of other competitors (Liu and Chou, 2016). Moreover,
company currently use the price bundle in which products are bundled collectively and
sold at the lower prices instead of total individual items.
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 Place: Not like the other companies Tesla strives in order to sell its unique car in their
own stores and online as well. For this, Tesla sell its car out of the store locations and
also make things possible to purchase and make it customise as well on their website.
Company also refuses to to sell its franchise which is already developed as the car dealer
(Moorman and Day, 2016). At present time, Tesla gone to court in the midst for
developing its retail network. Moreover, company also refuse to sell its franchise in terms
of the established car dealer and also cut out the middleman that are considered as the
dealership. Promotion: The website of Tesla offer a great amount of information to their potential
buyers which include the step for many things regarding the car works and also
demonstrate and draw everything collectively. Moreover, Tesla currently has no
advertising agency and for this, they use social media the sole promotion technique and
the prominent course of stores (Mothersbaugh and Hawkins, 2016). In terms of this,
Tesla tends to opt social media marketing and develop online campaign which is useful in
attracting maximum number of customers towards the company. People: This factor depicts the manpower and human resources of company that plays an
important role in terms of order to attract maximum number of people. In regard of this,
Tesla should provide effective training and development program to their employees
which is useful in order to develop their overall personality and make them more efficient
and effective in terms of dealing with customers and also induces them to retain with
company for longer period of time (Kingsnorth, 2019). In terms of this, the employees of
Tesla is responsible in order to enhance the image and reputation of company and also
useful in increasing the sales and revenues. Process: It depicts the overall procedure which is useful in term of offering prominent
products and services by following proper structure which is useful offering products and
services to customers and also finding effective ways to reach out to customers. It also
include the supply chain management and distribution channels which is important in
offering effective product to potential customers (Key and Czaplewski, 2017).
 Physical appearance: In regard of this, Tesla need to undertake the effective physical
appearance and evidence of company which is helpful in order to attract maximum
number of customers (Morgan and et. al., 2019). In terms of attracting customers
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appearance of store, product and features plays an important role and all of these should
be considerer by Tesla in order to offer its product in business environment.
CONCLUSION
By considering the above discussion it is identified that effective marketing strategies are
important for company in terms of launching their products and services in market and these
strategies are also helpful in eliminating risk factor. For this, effective environmental analysis is
organised which is useful in analysing significant risk factors that can become barrier in smooth
running and functioning of company and to overcome this, it is important to develop effective
marketing strategies considered the unique selling point of company and also helps in evaluating
existing marketing strategies. Despite from this, target market is identified for the sub brand and
also develop effective goals and objectives by recommending marketing strategies.
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