Marketing Principles: Tesla Electric Vehicle Analysis and Strategy

This report provides a comprehensive analysis of Tesla's marketing strategies for its electric vehicles, covering key aspects of marketing principles. The report begins with an introduction to the marketing environment and planning process, including market research, target market identification, product analysis, competitive analysis, and the development of effective marketing strategies, budgets, and performance monitoring. A PESTLE analysis is conducted to assess the political, economic, social, technological, legal, and environmental factors influencing the EV market. The 7Ps of the marketing mix (product, price, place, promotion, process, people, and physical evidence) are examined in the context of Tesla's marketing efforts. The report then delves into segmentation, targeting, and positioning (STP), differentiating between B2B and B2C market segmentation and providing situational examples. The analysis includes an exploration of Tesla's market targeting and positioning strategies. Finally, the report concludes with an overview of the marketing mix analysis, summarizing the key findings and implications for Tesla's marketing approach.

Principles of Marketing

Table of Contents
INTRODUCTION...........................................................................................................................3
Section 1- Marketing Environment and Planning Process..............................................................3
Determine the Components of Marketing planning process in Electric Vehicles Marketing 3
Pestle Analysis for EV Market...............................................................................................4
7P’s of Marketing Mix and how it contribute to effective marketing planning for new
Concept...................................................................................................................................5
Section 2- Segmentation, Targeting and Positioning.......................................................................6
Outlining the distinctions between segmentation of the B2B & B2C markets about electric
vehicles providing situational examples.................................................................................6
Market Targeting for B2B market segment concerning electric vehicle...............................8
Market positioning concerning electric vehicle.....................................................................8
Section 3- Marketing Mix Anal.......................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
The Project is based on principles of marketing in which the marketing environment and
planning process, segmentation, targeting and position of electric vehicle in Market and
Marketing mix anal is conducted in order to increase the demand of Electric Vehicle (Chautard,
and Collin-Lachaud, 2019). The Chosen Organisation for completing the project is Tesla, it is
known for electric vehicle and clean energy company that deals in Electric Cars, Solar panels,
battery energy storage and solar roof tiles.
Section 1- Marketing Environment and Planning Process
Determine the Components of Marketing planning process in Electric Vehicles Marketing
The Marketing Planning process is an approach through which marketing goals can be
achieved. There are various components of marketing planning process they are as follows-
Market research is one of the components of marketing planning process in Electric
Vehicle Marketing as it is necessary for an Organisation to conduct a detail market research in
order to gain the information of market. For increasing the sale and demand of Electric Vehicles
Tesla must know the market dynamics and also understanding the customer’s preference, taste,
buying decision, market segment, demographic and target market in order to run the business
successfully (Dahl, Peltier and Schibrowsky, 2018). For Example, Tesla is expanding its
business in India so it is necessary for organisation to conduct the market research and analyse
the factors that could create an impact on its performance in Future.
Target Market helps in choosing the niche for selling the product and services of
Organisation in order to attract large number of people. As Tesla is known for its expensive
products so the target market of the company is the customer segment that is wealthy individual
and household who can afford the Car.
Product of Tesla is its Electric Vehicle for which they have to increase the sale and
demand of Cars in Market in order to gain high profit and enhance the growth of Organisation.
Tesla mainly deals in Electric Vehicles with unique features and design through which they can
attract the customers. As the Cars has many features including the games, multi device
Bluetooth, USB-C and wireless charging for people, best audio system, rear trucks and fold flat
seats with perfect environment.

Competition is one of the aspects which must be identifying by Organisation in order to
sustain in Market for long run. The Competitors of Tesla Electric Vehicle Car are Porsche
Taycan, Jaguar I-Pace, Audi, BMW and many others. Tesla must conduct competitor’s analysis
in order to collect and gain information related to the competitors action and moves. It is
important to identify the marketing strategy of Competitors (Ike, 2018).
Marketing Strategy is the toll which provides a guidance and plan to increase the sale of
Electric Vehicles. The Marketing strategies must include the networking, direct marketing, and
advertising, training program, website and publicity in order to improve the sale of Electric Cars.
So, to sell the Electric Cars it is necessary to develop proper strategies that help in reaching to
maximum number of people.
Budget is another component of marketing planning process in which company have to set
the budget for increasing the sale of Electric Cars. Tesla has to set a budget in order to increase
the marketing and advertising strategy so that more and more customers get attracted towards the
brand (Gama, 2017).
Monitor Result is the last strep of marketing planning process in which company analysis
and identify the strategies is working effectively, Tesla must also conduct survey in order to
collect the reviews and feedback of customers.
Pestle Analysis for EV Market
Political Factors determines the governmental impact on businesses and macro
environment. The trade policies can affect the limit the performance and profitability of Tesla.
The Company can garn the opportunity to increase their financial position by incentives from
government for electric automobiles. If there are free trade agreements, the company can easily
expand their business activities internationally.
Economical Factors is another factor that affects the performance of Organisation as it
includes trade levels, market growth, currencies and many other factors that create an impact on
automobile industries. If the battery cost is decreasing it helps in increasing the business
performance of Tesla. When Organization is able to improve as renewable energy solution they
can become popular and attract people.
Social Factors is also a factor that influences the performance of Tesla for increasing the
sale of Electric Cars. The Company must focus on aligning with social trends in its target market.

Tesla must focus on increasing the popularity of low carbon lifestyles, enhancing preference for
renewable energy and improving wealth distribution in developing market.
Technological Factors determines the influence of technology on Organisation. The
technological changes cane b the opportunity and threat for Tesla as they have to implement the
new technology in its business unit in order to increase their sale and profitability but it also
requires huge investment (Sun, Garrett and Kim, 2016). The Organisation must also focus on
increasing the business automation as it is the trend in Market.
Legal Factors determines the regulatory factors which can influence the business
development and management decision. The Strategies for increasing the sale of Electric Cars
must include expanding international patent protection, energy consumption regulations and
dealership sales regulations.
Environmental factors include the ecological condition of the Country that affect the
performance of Organisation. Tesla can promote its electric cars by concerning on increasing
environmental programs, climate change and rising standards on waste disposal.
The Competitors of Tesla are Volkswagen, General Motors Co., Ford, BMW, Jaguar and
Porsche. In terms of Electric Cars the competitors of Tesla are Audi e-tron SUV, Porsche Taycan
Electric, Jaguar I-Pace, BMW i3 and many others.
7P’s of Marketing Mix and how it contribute to effective marketing planning for new Concept
Product of Tesla includes fully electric vehicles, storage system, energy generation and
sell of solar electricity. The Organisation also runs the Supercharger powers station which can be
used by people in order to charge their vehicles. Tesla is focusing on increasing its sale of
Electric Vehicles for which they are producing attractive and creative designs and models of
Cars.
Price is another element in Marketing mix, the company deals in expensive and premium
product for which they target wealthy people who can afford the cars and its expenses. Tesla
uses premium pricing strategy as the target segment of Electric Vehicles is Wealthy customers
who can pay extra for driving Electric cars rather than traditional fuel Cars (Mohammadi and
Reed, 2020).
Place determines the location and area where organisation sell its products and services.
The place of Tesla for selling its Electric Cars is premium outlet, stores, galleries and online
medium through official website of Organisation.

Promotion activities conducted by Tesla minimum with Zero marketing budget as they are
not indulge with any advertising commercial and bill boards which makes the company unique
from its competitors.
Process of Tesla is effective they focus on availability of product in retail stores so that they
can fulfil the demand of customers (Bagheri, Fazlollahtabar and Ashoori, 2018). Tesla also
research market opportunities in order to gain the information related to needs and preference of
customers.
People are the other factors which are most important part for running the business
smoothly and efficiently. The Company provides training and development programs for their
employees in order to improve skills and knowledge.
Physical Evidence is also an element of marketing mix as Tesla provides its products in
retail stores and online website so that customers comfortably place their orders.
Section 2- Segmentation, Targeting and Positioning
STP stands for segmentation, concentrated on, & positioning. It is a three-step method
that lets in for the improvement of a particular & actionable advertising strategy. The important
precept at the back of the method is to section their target market, a goal every segmented
institution consistent with their options & habits, & make positioning changes on their branding
& advertising techniques to house their desires & expectations.
Outlining the distinctions between segmentation of the B2B & B2C markets about electric
vehicles providing situational examples
The method of segmentation is all approximately figuring out special & not unusual place
developments among humans on their marketplace, which lets in them to broaden a lot extra
applicable & tasty advertising campaigns. If they may use target market insights to become
aware of a particular choice or want in a collection of humans on their marketplace, they may be
capable of consciousness their message & supply it in a manner that has a far more potent effect
than broader advertising campaigns (Andayani, 2020). In fact, in saturated & mature markets,
they could even find out new possibilities, highlighting precise blessings to a section that wasn’t
catered to via way of means of absolutely everyone else.
B2B segmentation

 Priori segmentation: This is segmentation primarily based totally on facts associated
with clients who can be public to be had, consisting of enterprise length as well as
industry. This is a common technique to segmentation &its miles wherein a Business to
the business enterprise may begin if it became simply moving into consumer
segmentation 7 wasn’t but taking gain of the gear as well as analytics to be had for
consumer segmentation (Bigo, Rajand Situmeang, 2021).
 Needs-primarily based segmentation: This technique to segmentation organizations'
clients is primarily based totally on established wishes for merchandise or offerings.
While the cost-primarily based totally technique is possibly the maximum green for
salespeople, a wishes-primarily based totally technique presents the maximum correct
technique of concentrated on clients.
B2C segmentation
 Demographic segmentation: This is the Business to customer model of a firm's
demographic. Demographic segmentation separates clients primarily based totally on
elements consisting of age, gender, religion, education, income, occupation, & marital
status.
 Geographic segmentation: Under this technique firm’s clients are primarily based totally
on geographic location. It lets agencies recognize the goods & offerings presented to
exclusive segments primarily based on wherein they're located. It additionally allows
smaller agencies to store advertising expenses on impressions that aren't possible to turn
out to lead.
Segmentation about Tesla
While segmenting the marketplace Tesla didn’t ask which section is the maximum fuel-
aware however which section enabled the organization to construct long-time period &
progressive version of vehicles. It didn’t pick out the small automobile section (DIXIT, 2020).
The section of desire changed into the decrease volume, the price-insensitive performance-
automobile section which enabled them to create a logo identity, set up top rate pricing & earn
massive unit gross margins via way of means of focusing on the wealthy & prosperous who're
inclined to spend extra in comparison to their vehicles.

Market Targeting for B2B market segment concerning electric vehicle
The subsequent step is to have an observation of the segments which the company had
picked to become aware of the first-rate possibilities in their business. First, they may want to
have an observation of the scale of the section, to inform them whether or not it's well worth
pursuing. After all, the advertising possibility ought to be massive sufficient to warrant jogging a
marketing campaign. Otherwise, it truly won't be well worth the effort.
Tesla entered the automobile enterprise with an expensive, high-give-up product that
targeted on purchasers who should have enough money costly motors that have been eco-
friendly & geared up with one in every of its type are providing a brand new stage of
convenience (Islam, 2020). For Tesla Motors to preserve development now & into the destiny it
became essential that they amplify their goal marketplace to attain out to lots of purchasers. As
the company’s product & their consumer’s reputation matured they began out to shift into a
bigger & extra aggressive marketplace through decreasing their charge with the Model 3.
Market positioning concerning electric vehicle
Positioning possibilities are to help companies reply to an unmet want or choice on their
marketplace that their product can fulfil. Since they have got tangible records approximately
what segments of their target market choice, they may use the one's insights to put their product
& broaden a unique promoting proposition, supplying the proper message at the proper time.
Using purchaser segmentation models, they may revamp their product positioning & middle their
marketing campaign across the maximum urgent hassle that their target market is facing (Liuand
Shan, 2021).
Tesla Motor's marketplace role, in particular, is as it isn't always best-promoting motors
however additionally promoting technology. It has placed itself inside the marketplace as a high-
stop producer & provider of electrical sports activities motors. With its preliminary highly-priced
releases just like the Tesla Roadster’s, Model S’s, & Model X’s, Tesla constructed its popularity
inside the marketplace area as a frontrunner in electric-powered automobiles. However, one of
the long-time period desires of Elon Musk, mastermind of Tesla, as referred to in his 2006,
become to have a great variety of vehicle fashions which includes their cheaply priced own circle
of relatives motors that velocity the sector in the direction of an eco-friendly, solar-powered
future.

Section 3- Marketing Mix Anal
Marketing Mix Electric Hybrid Cars
Product The product of Tesla is made in order to attract and impress the
customers with its unique features and design which helps in
grabbing the attention of customers. For Increasing the sale of
Electric Cars, Tesla is focusing on implementing new marketing
strategies which helps in improving the sale of Cars. The Company
is known for manufacturing premium eco-friendly and battery
powered cars. The Cars of Tesla comes in three models they are
Model S, Model X and Model 3. To gain the competitive
advantages in Market, Tesla launches self driving auto pilot feature
cars that attract people to purchase the Electric Cars. The Company
targets the premium people that show interest in New and
innovative vehicles without worrying of money. Tesla must also
focus on in its competitor’s moves in order to gain competitive
edge. Through providing electric cars with good quality by
protecting the environment and increasing the renewable energy
helps in attracting more and more customers towards the brand
(Mishulin and et. al., 2016). There are various competitors of Tesla
in Market which deals with the same product. So it is important to
conduct competitor’s analysis in order to find the competitors move
and action. Nowadays people are focusing more on quality and
features of Electric Cars which must be assessed by Organisation.
Place The Company is operating its business across World; they usually
sell their Electric Vehicles Cars through various venues that makes
customers to buy the car without facing any issues. Tesla provides
it’s Electric Cars in Company owned stores and galleries, official
website, service centres and charging stations. The Distribution is
arranged keeping in mind the comfortable level of customers so that
they can easily purchase the Cars without facing any difficulty. The
Customers can go through the stores and galleries which is located

in malls and other areas for testing and purchasing the Cars. For the
people who are not able to go stores and galleries can visit to
official website to collect the information of product and complete
the sales transaction.
Price Tesla implements premium pricing strategy as well as Market
oriented pricing strategy to attract the customers. Tesla is premium
brand which focuses on wealthy people to increase their sale and
profitability of Electric Cars. The premium pricing strategy is
charged for its unique and high value attributed Electric Cars. The
Customers can pay extra for the product which is of new
technology and ecology so it is necessary to focus on innovation
and product designs in order to grab the attention of people. The
Company has launches Model 3 which is an affordable cars that can
be purchased by customers as it has great features and attractive
design.
Promotion Tesla uses various marketing communication strategies and tactic in
order to promote their Electric Cars and provide detailed
information to customers. Through tactics company can manage
and influence the people expectation and development of brand.
The promotional mix element which is used by Tesla is Viral
marketing, personal selling, Public relations, sales promotion and
direct marketing (Ioanid, 2020). The Organisation uses personal
selling in order to improve their relation with customers, they also
sell the electric cars personally through its stores and galleries.
Through promotional activities the marketing objectives can be
achieved by reaching the large audiences and informing about the
product and services of Tesla so that more and more customers get
attracted towards the product.
People For Tesla their Staff is an important part of the company they also
value their employees and treat them as a business family by
fulfilling their needs and demands and also satisfying them by

providing attractive compensation packages and other benefits. The
Company focuses on maintaining strong connection with their staff
in order to make them stay for long run. As Employees are the one
who give their efforts in incising the brand image and value of
Organisation.
Physical Evidence The Organisation must focus on selling products with unique colour
and features that can be easily identifiable on stores. The website of
Tesla is user friendly which allows people to view the product with
high quality images and gain the information related to the Electric
Cars.
Process The Organisation has installed the systems which help in
determining the availability of product in stores so that it can
provide information of inventory level. Tesla also has online
delivery process where customers can easily place their orders and
it will be deliver to customers with proper safety and security. It is
necessary for the company to provide excellent convince facility to
people that helps in creating loyal customers.
CONCLUSION
From the above report, it can be concluded that marketing is an essential part of any
organization, and following its principles makes its execution more effective as well as
profitable. The principles of marketing involve discussion upon the environment of marketing
along with its planning process, an analysis of market segmentation, targeting, and positioning. It
also includes a concept of marketing mix which covers several elements such as the product, its
price, promotion, place, people, and physical evidence as well as the process which needs to be
paid focus before launching of any item in a market. Without the presence of marketing
concepts, it becomes difficult for the companies to generate handsome profits and a higher brand
image.

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