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

This report provides a comprehensive analysis of Tesla's marketing strategy. It begins with an introduction to marketing and its application to Tesla, an American multinational company in the electric vehicle industry. The main body of the report is divided into two parts. Part 1 includes PESTLE analysis, SWOT analysis, and USP to assess Tesla's external and internal environments and its unique selling proposition. Part 2 focuses on the STP approach (segmentation, targeting, and positioning), marketing goals and objectives, and the marketing mix. The PESTLE analysis examines political, economic, social, technological, legal, and environmental factors affecting Tesla. The SWOT analysis identifies Tesla's strengths, weaknesses, opportunities, and threats. The USP section highlights Tesla's unique advantages. The STP approach describes how Tesla segments its market. The report concludes with a summary of the key findings and references to supporting literature. This report provides a detailed overview of Tesla's marketing strategy.

Marketing Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY ..................................................................................................................................3
PART 1............................................................................................................................................3
PESTLE..................................................................................................................................3
SWOT.....................................................................................................................................5
USP.........................................................................................................................................7
PART 2............................................................................................................................................7
STP approach .........................................................................................................................7
Goals and objective................................................................................................................9
Marketing mix......................................................................................................................10
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13
Books and journals...............................................................................................................13

INTRODUCTION
Marketing can be define as function in business firm which us related to establishing
good relation in organisation and its customer by use of marketing tools such as advertising and
sales promotion for selling goods and services. There are different kind of of business strategy
which involve use of marketing function to achieve business objectives. This report is based on
study of Tesla, It is American multinational organisation which is working in electric vehicle
inducty (Kannan, 2017). Organisation is performing its function in innovation in electric cars and
is based on Palo Alto, California. Tesla's current products include electric cars (the Model S
Model 3, Model X and Model Y), battery energy storage from home to grid scale (the Powerwall
Powerpack and Megapack), solar products and related products. In relation to current report
there is discussion on various aspects related to marketing strategy of organization. In relation to
this there will be scanning of internal and external environment of organisation by use of various
models. These models are SWOT analysis and PESTLE analysis. along with this, USP will also
be use to determine current situation of organisation in relation to its marketing strategy. In
relation of this there is use of STP approach and goals and objectives of marketing to use marting
mix of organization for better results.
MAIN BODY
PART 1
PESTLE
PESTLE analysis can be define as that framework which can be use by organisation to
scan external environment of firm. This helps in identification of those factor which are related
to functioning of organisation in current time. PESTLE analysis use various factor to scan
external environment of organisation (Kumar, 2016). These are political, economic, social,
technology, legal and environment factors which impact on performance of organisation in
current time. In context of Tesla, all these environment are discussed below:
Political factors: It include those factor which are related to political environment of area
where organisation is working in current time. These factors are political stability, ruling party
intention and many other factors which are related to political conditions of business
environment. These factor has direct impact on performance of organisation this is because there
are various function which has top perform by firm to achieve business objectives. In relation to

Tesla, it is operating in electric car business in global world where there are various rules and
regulations which has to follow by organisation to keep operating in different political
environment. Governmental incentives for electric auto mobiles is positive factor in political
environment of Tesla because there are number of opportunist which can be use by organisation
under this factor. New global trade agreements and Political stability in the majority of major
markets of Tesla also impact in positive way for firm. This is because political stability provide
opportunity to organisation in relation to its current system. Herein, firm can use its function in
more effective way by managing its function because of stable government (Lekhanya, 2016).
Economic factors: This is also an factor which impact on performance of organisation in
relation to external environment. This factor include al those situations which are related to
economic condition of nation in which organisation is working. These conditions include market
growth, trade levels, currencies, and other variables that influence the automotive business. In
context of Tesla, issues in economic stability is major factor which impact organisation in
negative manner. As, Tesla is working in electric car manufacture business where there rare large
number of sellers. In relation to current time, because of impact of COVID-19, there is downfall
in economic growth of various nation. This becoming reason for economic slowdown and acting
on sales of Tesla cars. Decreasing battery costs and decreasing renewable energy costs are those
parts which are impacting positively on Tesla performance in current business environment. This
is because there are various functions which are use by firm and are related to cost of production.
By downfall in prices of battery and renewable sources of energy like solar panels organisation
will get benefit of decrease in cost and can work more effectively on other function and feathers
of car (Mekonnen, 2018).
Social factors: This is also a factor which impact organisation in director way, it includes
those social trends and factor which are related to performance of organisation and act on firm in
direct manner. In relation to Tesla, there are number of social factors which are impacting
organisation in direct way. Increasingly popularity of low-carbon lifestyles, Increasing
preference for renewable energy and Improving wealth distribution in developing markets are t
those factor which are impacting in positive way for Tesla.
Technology factor: In context of Tesla this factor is impacting on organisation in
positive manner this is because there are various aspects like High rate of technological change ,
Increasing automation in business and Increasing popularity of online mobile systems which are

use by organisation are in popularity in firm. These are those which help firm in achieving its
business objectives and performing according to technological changes.
Legal factor: These are those changes which are associated with those rules and
regulation which are formed by legal authorities in current business environment where
organisation is working. In context of Tesla, Expanding international patent protection and
Energy consumption regulations are those factors which are helping organisation in increasing its
business in Laurent market and achieving new market share (Milović, 2018).
Environment factor: These are those functions which are related to natural environment
factors which impact organisational performance with there implementation and use by firm.
Thee are also acting in favour of Tesla because organisation in operating in electronic cars which
has positive impact on organisation performance and helps in aching goals related to clime
protection.
SWOT
Following discussion is based on company in United Kingdom, Tesla, Inc. and its SWOT
analysis implemented on it. To firmly do situational analysis of a company, the managers of
Tesla use strategic planning tool, known as SWOT analysis. Theory is seems out to be best
analysis for any company to know its current strengths, weaknesses, opportunities and threats, so
that it makes the higher profit and functional ability in the future.
Description
Tesla is suggested as leading company now days. It has been functionally attained that
while analysing and reviewing SWOT analysis, Tesla maintains its highest position in country. It
is because SWOT analysis is reflecting out as an immensely attractive process and require as
effective coordination in various departments within organizations such as operations, marketing,
finance, management information system and strategic planning. Therefore SWOT analysis is
helpful is useful in identifying internal strategic factors such as strength and weaknesses and
internal factors such as opportunities and threats (Shin, 2017).
Strengths of Tesla: Workforce: Researchers said that Tesla emerged as an ideal company for employers due
to its vast diversity and innovating culture. Tesla has larger number of freshers with
young talents and energy. Even Tesla suggested as one of the best company for
employers to work under them.

 Leading automotive company: Sales of Tesla have only increased due to its luxurious and
unique brand image and it has become a leading automotive brand in 2019. The company
has left behind an outstanding automotive brands which shows the company profit on
higher level are Mercedes and BMW (Smilansky, 2017). A-class electric cars: Tesla has finest electric cars products which gives A class quality to
the customers that embrace the mark on it. Tesla has unique electric cars products which
cover maximum distance at less times. On a single battery charge, model S of Tesla cover
600 km. Another example is Opel Ampera cover 520 km at lesser time.
Weaknesses of Tesla:
 Manufacturing complications: From last three years, Tesla has been constantly facing
manufacturing, production and launch of new products. It creates various difficulties and complicated situations for the launches that sometimes it leads to constant delays for
distribution Weber, 2016) . Brand value affected by unable to meet demands: Tesla face certain difficulties at the
time of supply and demand of products which affect the brand value of the company. Shortage of batteries: Tesla has less number of batteries available for their products and
because of this, product rate of a company is constantly decreasing. The shortages of
battery directly affected the sales of their products and energy storage systems.
Opportunities in Tesla: Less expensive car: It is a fact that Tesla has few or no competitors in the market because
of its highest market value and brand image. If a company can make less expensive car
then there is a high possibility that the demand of the company will eventually rises.
Recently, Tesla launched model 3 which is more affordable as model S and has good
power with fewer features. Battery production: Battery production in good value can lead the company to increase
the rate of production and decrease their production cost. The company makes their own
battery cells. Sales expansion in the untapped market: For Tesla, Asian has a significant opportunity to
expand their business because of large popularity of electric vehicles. Asia is still
unsaturated in the field of automotive and renewable energy markets. It has been

suggested that if Tesla expand their market in Asia then company will receive good profit
and achieve success.
Threats in Tesla: Production defeats: There can be a possibility that the unique designs of Tesla face major
flaws in future.
 Long term confidence: Long term sustainability is a major requirement for the automotive
industries. Tesla has certain complications in their manufacturing of products nowadays
due to which the future results can be in deficiency for their business development.
The above discussion, is based on SWOT analysis of the company, known as Tesla.
SWOT analysis suggested a theoretical concept to attain best level of satisfaction for company
so that the company will gain maximum advantages and profits in future. After analysis, it has
been suggested that Tesla needs to take vigorous actions to grows its market share and financial
stability (Wroblewski, 2017).
USP
This can be define as marketing strategy which is related to informing customers of organisation
about the uniqueness in organisational product in market as compare to competitors . In this
context, Tesla is performing its function at global lave where organisation is using various
electric care wish have there own uniqueness and function in organisation. This helps
organization in achieving there business objectives. This can be seen from Total pre-orders for
Tesla Model 3 surpassed many expectations at more than a quarter of a million in less than three
days. To show you the bigger picture, this is more than 70 percent of annual sales for the leader
in this market segment – Mercedes Benz C-Class (Fraga, 2016).
PART 2
STP approach
Segmentation-: Segmentation is useful model to easily find out valuable customer.
Market segmentation is process which is divided customers into small group of customer with
common needs, characteristics and demands. It includes target specific customers who really
wants a product it leads to fulfil their requirement and satisfy needs. Tesla is one of the leading
company across globe. It is mainly biggest manufacture of electric car. It is targeting customer
on the basis of needs and wants. There segregated customer on that basis which is discuss below:

Geographic-: It is segmentation on the basis of region and weather based. In reference of
organisation, It is targeting customer on the basis of region wise like north America, Asia and
Europe. It is mainly dealing in electric car so it is targeted audience which is age 25 to 65. Tesla
swerve their product ad services in both rural and urban areas (Al Adwan, 2019).
Demographic-: Demographic is categorised on the basis of age, gender,education and
income. Tesla segmentation on the basis of demographic which includes it is dealing in electric
car so it is targeted audience which is age 25 to 65. It is provides a car models in order to a
advance technology which is more prefer youth segment and also provide product to adult
according to their needs and wants. In context of gender factor so company is targeted both male
and female.
Behavioural-: It is one of the aspect on that basis company also categorised a product
and services. Tesla segregated a customer on the basis of degree of loyalty, benefit, personality
and user status. They mainly targeted those customer who is hard core loyal and switchers
because it is big brand name in the market. It is categorise thse customer who is crazy about
electric car and they are sporty personality.
Psycho graphic-: Psycho graphic segmentation refers to personality, opinion, attitude and
values. It is quantitative analysis rather than qualitative because it is measure a lifestyle and
interest to think (Bakhtieva, 2017). In reference of company, it carter both group social class as
well as lifestyle. It target both class middle and upper in order to it is aspire, succeeder, explorer
and reformer.
Targeting-: Targeting is a strategy of marketing that breaks large segment into small
group of customers. Company choose this strategy because instead of targeting entire market,
brand uses target marketing put the energy for specific group of customers. Today's era scare of
resources so brand target a specific group and advertising as well as customer
experience,business operations and branding. In the relevance of company, target specific group
of customer and analysis of market. The company will try whose segment basic needs and wants
are similar so it makes customer happy and loyal towards the brand and it is profitability for the

company ( Baltes, 2016). It includes targeting middle class Australian which is easily affordable
to purchase a car model.
Positioning-: Positioning refers it is process which is influence the perception of
customer regarding product and services. It includes on that basis of product attributes, product
pricing, product use and application and product quality. It is related to set brand image in the
mind of customer in order to image differentiation, channel differentiation and service
differentiation. Tesla is not just an automotive company but it is an energy innovation
organisation. Distribution strategy is different from it's competitor because it managed through
third party and online presence.
Goals and objective
Tesla is one of leading car manufacture across globe. It is founded by engineer group and
they want to provide quality product to it's customer in order to fulfil the requirement of end
user. They launch electric car can be better quicker and more fun to drive than gasoline cars.
There are recommendation which is three main objective because company must be set the goal
on that basis:
Primary objectives-: It is main objective which is company must be focused on that. It
includes fulfil the demand of customer and boost sales of Tesla motor's electric car. Organisation
focuses on marketing strategy and develop brand image in the mind of customer so it impact on
goodwill (Blakeman, 2018). It also create good and healthy relationship with existing customer
and also targeted a new customer segment in order to increase profitability and improve
performance of company.
Secondary objectives-: Tesla main focused on market share it is use various strategies to
promote their product and services so easily capture market share. It is developing strategies to
take competitive advantages and capture market share. Educate customer and launch various
campaign for customer in order to guide about product and services (Camilleri, 2018).
Overarching objectives-: Tesla is must be recruitment of those candidate who is potential
for doing particular job. Manpower is important asset of an organisation so it is manager must be
focused towards their employees and training provided on time so it can be easily perform

activities of company. HR manger uses various tool and techniques and providing a training
facility so it help employee in career progress.
There are various way so organisation set their objectives in order to enhance profitability:
 Tesla must be set safest factory in the world. It includes various approaches and smooth
production system which also improves productivity and also provide safe and secured
working environment for employees.
 Tesla developing sustainable energy ecosystem in order to unique set of solution. Power
wall, power pack and solar roof. It also be developing technique which is utilize to mange
renewable energy generation, storage and consumption.
 Organisation using those marketing strategy which is take competitive advantage and
providing quality services to customer. Tesla continue to developing products accessible
and affordable to more customer segment in order to ultimately accelerating advent of
clean transport and clean energy production. It is also developing a more advanced
technology which is utilise in car and they want a future generation (Chaffey, 2019).
Marketing mix
Marketing mix is a tool which is used by marketer in order to promote their brands and
services. It is main aim to capture market share and take competitive advantage in the market.
Tesla also focused marketing strategy in order to increase sales and enhancing profitability.
Organisation used various tactics like product, place, price, promotion and physical evidence.
There are various tool which are discuss below:
Product-: Tesla is a leader in car manufacturing in order to eco-friendly and battery
powered electric car. One of the major product which is manufactured by Tesla known as
electric sedan. It is dealing in advanced technology in products like solar panels, batteries, super
charging stations and solar roof all thing is included in product and it is offer to the customer.
Tesla products can be categorised on the basis of customer need like a car models on three
categorisation.
 Tesla model X-: In that model categorised sports car which is included a advanced
technology and 5 star safety ratings. It is very spacious with falcon doors which provides
accessibility to the sitting of second and third row.

 Tesla model S-: In that model sedan is launched by Tesla which is included various
feature and advance techniques like self driving auto pilot feature, air software updation,
powerful engine and bio weapons which is easily protected a driver.
Price-: Tesla use different pricing strategy from it's competitor. It includes those pricing
strategy on the basis of product class (Cherkunova, 2016). Tesla product categorised on the
premium pricing strategy because company occurs heavy cost on research and development.
Prices is set on the basis of company's objective can be achieved like sustainable energy. Model
S set a high price rather model X in order to gain market share in the market.
Place-: Tesla is US based company which is perform their operations in word wide with
its headquarters is situated in Palo alto California. They use flexible distribution system in order
to easily available a product in car layouts. Their factory layout are fulfil demand of customer so
easily product is delivered to the customer. It is mainly focused on needs of customer
accordingly increased rate of production and the most important aspect of electric cars. It uses
different methodology to overcome hurdles, so the company is building Tesla Gigafactory in
Nevada USA to manufacturing a car batteries (Eleboda, 2017).
Promotion-: Tesla use various promotion tool and techniques to promote their brand and
services. It is not promote their product like other companies they use very different strategies.
Tesla use a zero base marketing budget strategy in that no advertising on commercial or bill
boards and no ad agency. It is does a lot for promotional activities but use other way like their
charging ports on hotel, restaurant and malls and also have written about the brand. It is use
online strategy to promote their products like twitter,Facebook, YouTube and Instagram. It is
gain a positive public image and position itself as gooder brand for the humanity.
People-: Manpower is essential for a company in order to carry out many activities in
effective and efficient way. Tesla recruit those candidate who is fully capable for doing a
particular activities. It includes sales consultant, sales representative and customer care
department so customer easily accessible 24/7. Manger provides information to HR manager on
that basis providing training facility on timely manner (Fraga, 2016).
Process-: Process is a step for an organisation which is utilize to deliver service to
consumer. Tesla work in various techniques like solar energy and sustainable renewable energy
so all is included as process of company. It is used advanced techniques to manufacturing cars. It

is utilize those tools and technique so operation activities perform smoothly and easily increase
productivity of company (Hancock, C. 2016).
Physical evidence-: It refers to that which is see a customer and easily interacting with
business. Tesla deal in advanced technology or electric cars which is see in the product and it is
also help to fulfil the requirement of customer. It is interior design and factory layout all are
includes as evidence of company. It is global company so know about there customers
accordingly creating evidence connectivity.
CONCLUSION
It can be concluded from above mentioned information that it is mandatory for
organisation to formate effective marketing strategy which can be use to achieve business
objectives in time related manner. For this Tesla can use internal and external scanning which
states that firm is performing better in both marketing and there are various options available for
firm to deal with these markets (Kadarisman, 2019). Here organisation can use STP approach to
implement its function and achieve business objectives in time effective way for better function
and implementation of marketing strategy achieve goals and objectives.