Marketing Strategy Report: Tesla's Competitive Advantage

This report provides a comprehensive analysis of Tesla's marketing strategy, examining both its internal and external environments. It begins with an executive summary and an introduction to the company and its products, including electric vehicles, solar panels, and batteries. The report then delves into a PESTLE analysis to assess the political, economic, social, technological, legal, and environmental factors influencing Tesla's operations. A SWOT analysis evaluates Tesla's strengths, weaknesses, opportunities, and threats, particularly considering the impact of the epidemic and Brexit. The report further explores Tesla's competitive advantage and current marketing strategies. Part 2 focuses on market segmentation, targeting, and positioning (STP), followed by recommended marketing objectives and goals using the SMART framework. The report concludes with suggested marketing strategies based on the marketing mix and offers recommendations for enhancing Tesla's market position and profitability. The report concludes with a concise conclusion and a list of references.

Marketing strategy
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Executive Summary
Marketing strategy plays a crucial role for an organisation to reach out maximum number of
consumers. It helps company to gain maximum competitive advantages and brand reorganization
in respective industrial sector. With the help of marketing strategies company can use their
resources in best way through which they can increase visibility of their organisation. With the
assistance of effective marketing strategies organisation can create trust and loyalty among new
and existing consumers and can build credibility. With the help of effective marketing strategies
Tesla develops long lasting relationship with their audience and sells their products and services
to customers in efficient way. Present report includes discussions upon internal as well as
external environment audit of Tesla along with organization current positioning. In addition to
these marketing objectives of company is also covered in this report through which company aim
towards enhancing their sales value, market shares and brand profitability in industry.
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Executive Summary.........................................................................................................................2
INTRODUCTION...........................................................................................................................4
Part 1................................................................................................................................................4
Situational analysis – (PESTLE)............................................................................................4
Evaluate the threat of epidemic or Brexit on your choosing org. (SWOT)............................7
Analyse competitive advantage (USP).................................................................................10
Evaluation of current marketing strategy.............................................................................10
Part 2..............................................................................................................................................11
Analyse Market Segmentation Targeting & Positioning (STP)...........................................11
Recommended objectives and goals for the choosing organisation (SMART)...................12
Recommend marketing strategies, based on the application of the marketing mix to your
chosen brand or Sub-brand...................................................................................................12
CONCUSION................................................................................................................................13
REFERENCES..............................................................................................................................14
INTRODUCTION
Marketing strategy is defined as a long term planning of business objectives which is
basically formulated to achieve company marketing objectives. Main aim of this strategy is to
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reach out to targeted base of consumers and make them buy services and products of company
(Shipley, 2020). Organisations undertake advantage of different marketing strategies like social
media marketing, email marketing, SEO, content marketing and more in order to gain maximum
number of consumer attention towards their organisational offerings. It is a blueprint that allows
marketers to attain marketing objectives. For this detailed marketing research is being conducted
in order to gain best possible opportunities for higher sales and profitability.
Present report has been conducted on Tesla which is an Electric Vehicle and clean Energy
Company. Main products of entity include electric vehicles, solar panels roofs and Tesla
batteries. This company was founded in the year 2017 by Elon Musk. In these report formative
discussions has been conducted on pestle and SWOT analysis of company in order to identify
internal as well as external factors affecting organisational activities. Current marketing strategy
and USP of Tesla is also being covered in this report. Along with this, analysis of company
SMART objectives and STP is also mentioned in this report. Lastly company is recommended
with some certain marketing strategies.
Part 1
Situational analysis – (PESTLE)
Pestle analysis is a strategic framework through which organisation can monitor macro
environmental elements that are having negative or positive impact upon performance and
profitability of organisation (Wang and Peng, 2020). With the help of pestle analysis Tesla can
maximize the effectiveness of their marketing strategies through which they can assure high
competitive advancements on electric vehicle market while assuring long-term sustainability:
Political:
This factor includes influence of government on company business operations. Tesla can
undertake advantage of the opportunities to strengthen their financial performance with the help
of different type of incentives that are being offered by government. It has been identified that
UK Government offer customers UK tax credit if they purchase an electric vehicle. Along with
this, with the assistance of political stability in UK Tesla automobile segment develops a positive
environment for companies through which they can undertake opportunities for higher
competitive growth (Samano and Santugini, 2020). It has been identified that UK Government
promote various initiatives towards advanced vehicle technology and reduced emission level
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through which Tesla can not only gain financial aid for their research and development
operations but can also assure strong political relationship with the government. It maximizes
future growth and development of company along with long term sustainability is respective
market.
Economical:
There is significant increase in demand and sales of electronic cars in global market
especially in European, Asian, UK and United States market. Global economy measures high
demand of electronics vehicles, day by day increase in popularity of electric vehicles enhances
Global economic growth expectation at 3% in the year 2019 and 2020. This creates a great
economic importance for Tesla through which company can gain maximum profitability and
market growth (Sheth and Parvatiyar, 2020). In addition to this it has been identified that in
electronic vehicles, battery plays a crucial role thus, with the decrease in cost of battery is also an
effective economic factor through which company can assure better opportunities. With the help
of this, Tesla power wall batteries development segment can ensure more economic
advancements. Company by providing accessible and affordable batteries can develop more
affordable electronic vehicles through which they can not only effectively serve their existing
consumer base but can also expand their business in Asian market for affordable consumer
groups. However, economic sustainability issues can acts as a major threat for company that can
further adversely affect their business operations.
Social:
Large number of consumers on a global scale is tending towards the idea of electronic
car. Due to the increase in love for eco-friendliness large number of consumers prefers to have
products and services those who does not cause harm to environment in any way. Along with
this government of different nations are also supporting electronic vehicles in order to have
positive contribution towards environment (Forbes, Han and Schaefer, 2020). It has been seen
that the UK Government are investing in sustainable products as well as fuels and offer various
leverages in taxes for the company’s in this sector. It creates significant opportunity for Tesla
through which there can not only contribute in environment sustainability but can also assure
long term sustainability and positive relationship with consumers. Thus, increase in popularity of
low-carbon lifestyles and improving wealth distribution in developing markets is acting as
opportunity for Tesla growth.
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Technological:
Technology is the most essential factor of pestle analysis which is affecting organisation
in both negative and positive manner. It has been evaluated that Tesla is the leading innovator of
technology in terms of electric car (Sheth and Parvatiyar, 2020). Company undertakes advantage
of AI technology and automation to assure competitive edge in respective industry. With the help
of this Tesla assure company to be fuel efficient that expanded their future sustainability growth.
However, technology takes no time to become obsolete as competitors are constantly advancing,
creating and developing. Although, Tesla shows that they undertake efficient use of automation
and artificial intelligence into their vehicles which is significant opportunity for company.
According to the evaluation it has been identified that CEO of company Elon Musk states that
future Tesla model offers customers with advantage of fully driverless technology that ensured
company higher technological competitive advancements compared to other rivals.
Legal:
This factor includes the manner in which legal issues are influencing company
operations. In this, it is essential for company to abide all the environmental regulations and legal
laws that are being imposed by government of country (Weinstein, 2020). It has been evaluated
that Tesla abides all the legal regulation such as energy consumption and patent right in order to
ensure that their business activities undergoes on smooth manner (Healy and Herrmann, 2020).
However negligence of this factor lead entity to face many lawsuits, regulatory investigations
and issues that can affect the national as well as International brand image of company growth
and development. It has been identified that government of United Kingdom increased
regulations that are associated to automobile standards that are required to be abide by company
in order to ensure their sustainability.
Environmental:
This factor of pestle analysis states ecological trends and availability of raw materials for
company production process. It has been evaluated that, Tesla offer eco-friendly car that uses
electricity to their customers. Along with this company also complies different compliances and
environmental regulations that create strong brand image of entity in market comparatively with
other market leaders. It has been identified that company effectively maintain emphasize upon
sustainability and energy saving in their production process in order to enjoy a good reputation in
industry. Many countries imposed heavy tax penalties and other obligations in order to overcome
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the environmental issues like climate change and global warming. They also encourage electric
vehicle expansion that creates significant opportunities for Tesla. Going green is also becoming
very popular term in these days in various countries thus, electric vehicle segment of Tesla have
significant opportunity to expand their business operations for feature development and growth.
According to the above pestle analysis it has been identified that Tesla is having significant
opportunities in terms of political, social and environmental aspects. But company can somehow
get affected with economic stability issues, high rate of technological changes and many
regulations imposed by government on automobile sector. This can affect their growth, Tesla
with the help of this analysis can be develop effective strategies through which they can further
assure high sales and profitable advantages for their future growth.
Evaluate the threat of epidemic or Brexit on your choosing org. (SWOT)
SWOT analysis is a strategic framework through which company can evaluate its strength,
weakness, threats and opportunities. With the help of this analysis entity can identify its threats
and weakness that are affecting their business operations and can further undertake advantage of
prevailing opportunities for higher growth and development. It has been evaluated that Tesla is
one of the leading players in electronic vehicle segment (Papenfuss, 2020). This company
engages in the process of continuous development and delivery of new advanced electric
vehicles and charging technologies. Further it has been evaluated that despite of Covid-19 impact
this company delivered more than 88, 000 electric vehicles in first quarter of 2020 that surpasses
sales of Volkswagen. It has been identified the Tesco is having significant potential to
manufacture highly innovative vehicles with great quality. According to the reports it has been
underlined that respective organisation started delivering the Model Y — its fifth electric vehicle
in 2020 quarter. Mentioned below there is a SWOT analysis of Tesla that identifies company
strength, weakness, opportunities and threats:
STRENGTH WEAKNESSES
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 Tesla is one of the most dominant
companies in all around the globe, it is
a top employer company which is its
one of their remarkable strength
(Parashar, 2020). As per the report of
Wall Street Journal this company
emerged out as an ideal company for
employers because of their innovative
and diverse culture.
 It is the leading automotive company
that emphasize upon innovation and
satisfaction of customers. It has been
evaluated that being one of the finest
electric cars this company occupies top
three places in terms of range.
 Innovation is most important strength
of this company as organisation offers
profitable as well as competitive
products to customers with the help of
in depth research. Tesla is also having a
strong brand image.
 One of the most important strength of
company is that it is having control
over its production process. As Tesla
manufacture most of the components
that are required to produce a vehicle
by themselves. It not only enhances the
quality of company but also assure
smooth operations of business
activities.
 Poor consumer awareness is the main
weakness of company, as even Tesla
manufacture innovative and exclusive
products but lacks in making customers
aware about their organisational
offerings. It has been evaluated that in
most of the markets customers are still
unaware of the features and
effectiveness of Tesla products and
restrict themselves to invest in
company offerings. Lack of proper
marketing strategy affects Tesla sales
in number of ways.
 Tesla products are quite expensive
comparatively to other brands that are
prevailing in market place. Thus, it acts
as a weakness that restricts company to
expand their overall base of consumers
and maximizing shares in market in
order to expand their international
market presence (Gans and et. al.,
2020). Company is required to offer
services and products in comparatively
low price range to assure more market
shares.
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THREAT OPPORTUNITIES
 Covid-19 imposes number of threats
upon an organisation that hinders their
future growth and development.
However irrespective of this epidemic
Tesla maintain business stability.
However shortage of material acts as
major threat for company which is
having capability to adversely affect
company distribution and
manufacturing process.
 Consumer purchasing behavior is also
a major threatening factor for Tesla, as
most of the consumers restrict
themselves to buy new innovative
products. This factor can affect sales of
company in many ways (Habib and et.
al., 2020).
 Increase in competition post covid is
major threat for Tesla, as now many
leading competitors will attract
customers with affordable products and
services in order to become market
leaders.
 Tesla is having significant opportunity
to maximize their sales in un-tapped
markets. For instance company can
expand their business operation in
Asian countries like India, which is one
of the leading economies in the world.
It not only aallows entity to strengthen
their financials growth but also assure
their strong marketing presence
comparatively to other rivals.
 By offering affordable car models
company can gain maximum growth
opportunities. It has been identified that
many countries around the world are
providing financial support to the
organisations who are engaged in
electric vehicles operations. Thus, by
taking advantage of these institutions
Tesla can provide affordable vehicles to
customers to maximize their suitability.
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Analyse competitive advantage (USP)
Tesla leverages its expertise in battery technology to reduce the total cost of ownership
over the vehicle’s lifetime. It is most important competitive advantage (USP) of Tesla that not
only reduces customers total cost of ownership but also assures company market growth. With
this USP Tesla assure higher competitive edge in marketplace compared to other rivals (Cao,
Qiao and Kotler, 2020). Thus, according to the evaluation it has been underlined that, Tesla
mainly emphasise upon their battery technology in order to significantly improve their electric
car range and power. With this Tesla distinct themselves from other competitors like, Mercedes
Benz and Honda. It will further lead company to offer low range products to their consumers that
maximise their market visibility.
Evaluation of current marketing strategy
Marketing strategy allows organisation to underline organisational vision and marketing
goals and sales objectives effectively. Marketing strategy allows company to access their
weaknesses, strength, threats and opportunities in order to leverage maximum advantages.
Effective marketing strategy allows Tesla clarify their objectives and goals with a disciplined
and focused approach to use their resources effectively. Mentioned below there are some certain
current marketing strategies undertaken by Tesla:
Tesla mainly emphasize upon attracting attention of customers with the help of Tesla
referral program marketing strategy. With this, company aim towards increasing customers to
make them aware about vehicles of company (Pettinico and Milne, 2020). In this strategy
company provide customers with certain credit towards a new Tesla vehicle, service or
accessory. If a consumer purchases was made from recommendation then company offer them
certain credits. With help of this marketing strategy Tesla get tons of press coverage. It further
encourage number of consumers, it has been identified that current referral program of Tesla
allows customers to have 5000 free supercharged miles for each referral and five chances to win
a Founders Series Model Y or Roadster supercar. In addition to this company also provide
customers with the facility of Tesla Ranger which is mainly a mobile service team. In this
customers can have their repair done from wherever they want. Thus these marketing strategies
not only allow Tesla to assure long-term sustainability but also facilitate them to provide
outstanding and effortless service to customers. With the help of peace marketing strategies
Tesla assure its leading position in electric vehicle segment.
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Part 2
Analyse Market Segmentation Targeting & Positioning (STP)
(STP) segmenting, targeting and positioning is a strategic framework through which
organisation can simplify or summarise the process of market segmentation. With this entity can
identify most attractive segment in which they can gain significant capability of enhancing their
profitability for organisation. Mentioned below STP analysis of Tesla is being conducted through
which company can assure activities to attract right consumers. Along with this, it reduces
company risk that enhances their competitiveness in respective industrial sector:
Segmentation:
It has been identified that Tesla target customers on the basis of psychographic
segmentation approach. In this company target towards those consumers who are
environmentally conscious and are looking for those companies those who are socially
responsible. Tesla is one the leading electric vehicle company thus; this approach allows entity to
target right people for their services and products.
Targeting:
It has been evaluated that Tesla target customers of the age group of 30-55, as Tesla
mainly offer sports vehicles thus they basically target males sex. Along with this services and
products of company is somehow expensive thus, by targeting this gender company aim towards
having right customers. In addition to this it has been evaluated that company mainly target
customers those who are from high income (Gao, Zhao and Qin, 2020). Along with this, it has
been identified that companies also target customers those who are socially responsible and
environmentalist in order to achieve higher sales and profitability.
Positioning:
It has been recognized that electric cars are not very common in some of the geographic
areas. Tesla positions themselves in market by undertaking use of message to sell their electric
cars and position them effectively in market. The message states, use of electric cars for earth
care. It enhances visibility of company, due to the increase in awareness about climate change
and global warming customers nowadays or more tend towards environment. This makes Tesla
to effectively fill the environment consciousness gap.
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Recommended objectives and goals for the choosing organisation (SMART)
SMART objectives assure Tesla to ensure its long-term sustainability and more
competitive advancements comparatively to other rivals in electronic vehicle segment. There are
some recommended goals and objectives for Tesla (Rivera Diez, 2020). These goals and
objectives will allow the company to increase their production profitability and market
shareholding:
Specific: Tesla by producing energy that can power their cars can accomplish the growth
of 8% by the year 2023. With this objective company can transform themselves to be a full-
service sustainable energy organisation.
Measurable: By maximizing that supercharging networks and doubling the number of
their superchargers worldwide from 7000 to 10000 and more Tesla can gain more competitive
advantages by the year 2023.
Achievable: By producing 1 million cars per year by 2020 company can achieve their
aggressive growth. Tesla by increasing their production can also assure additional capital by
serving more number of consumers every year.
Relevant: By increasing the number of sales Tesla can enhance their overall
performance. With the help of this Tesla can transform themselves into large scale economic
company. Along with this, by making improvements in batteries segment will also facilitate
Tesla to encourage customers to purchase electric cars.
Time-Oriented: By accomplishing all the underlined objectives and goals by the year
2023 Tesla can achieve their objectives and goals in effective manner and can become market
leader in electronic vehicle segment worldwide.
Recommend marketing strategies, based on the application of the marketing mix to your chosen
brand or Sub-brand
I in order to capture your managerial components in all the aspects Tesla is recommended with
certain marketing strategies through which they can I sure effectiveness in targeting right
customers in order to optimise their profitability in electric vehicle segment
Product:
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