Tesla Inc. Marketing Plan: Situational Analysis, Strategy, and Mix

This report provides a comprehensive marketing plan for Tesla Inc., examining its marketing objectives, and strategies. It begins with an executive summary highlighting Tesla's premium pricing strategy and target audience. The report then delves into a situational analysis using PESTLE and SWOT frameworks, revealing the company's strengths, weaknesses, opportunities, and threats, alongside the impact of political, economic, social, technological, environmental, and legal factors. The marketing strategy section outlines Tesla's approach to segmentation, targeting, and positioning. The marketing mix (4Ps) is then detailed, covering product, price, place, and promotion strategies. The report evaluates the marketing plan, providing pros and cons, and concludes with recommendations such as implementing AI and ML, and exploring lower pricing models. References are included to support the analysis.

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STUDENT DETAILS
STUDENT DETAILS

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Executive Summary
Tesla Inc. is the selected company for this report. In this report, it is concluded that
Tesla incorporates the premium pricing strategy and they target the audience who belongs
from the rich class category. This report incorporates the marketing mix of 4P's. Apart from
this, internal situational analysis is conducted through SWOT analysis and external analysis
is conducted through PESTLE analysis. Through PESTLE analysis, it is concluded that the
company will get the major benefit from the government and other political agencies because
they are making electronic cars that are safer for the environment. Apart from this, it is
concluded that they are utilizing the same in their marketing function.
Content

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s
Introduction................................................................................................................................3
Aims and Objectives..................................................................................................................4
Situational Analysis...................................................................................................................5
PESTEL..................................................................................................................................5
SWOT....................................................................................................................................6
Marketing Strategy.....................................................................................................................7
Marketing Mix...........................................................................................................................7
Evaluation of Marketing Plan....................................................................................................8
Pros & cons of this marketing plan............................................................................................8
Recommendations......................................................................................................................9
Conclusion................................................................................................................................10
References................................................................................................................................11

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Introduction
The Tesla Model 3 has quickly become the UK's third most famous automobile.
Tesla's Model 3 retails at somewhere in the range of £36,490 and £50,000 (Chen & Perez,
2018). In this report, the marketing plan of TESLA will be developed by describing clear
aims and objectives by using SMART format. The situational analysis of the company will
also be done by using PESTEL and SWOT. The market strategy will be described by
segmentation, targeting and positioning. The report will also describe about the pros and cons
of the marketing plan.

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Aims and Objectives
This report will focus on the marketing objectives and strategies of the Tesla. The
objective of this report is to focus on producing a basic marketing plan. Apart from this, the
focus areas of the report will be on the company's business plan, marketing concepts, current
situation, marketing mix, etc (Hardman, Shiu & Steinberger-Wilckens, 2015). This objective
will be described through the SMART objective analysis format:
 Specific: By the end of 2020 the company will achieve a growth of 10% enhanced
market shares. Below marketing plan will help the company to achieve its growth
objectives.
 Measurable: This growth will be major through the increase share price of the
company. Currently, the share price of the company is trading at $430.94 with the
market capitalization of $77.67B (Oates, 2019).
 Achievable: For measuring the growth, the management will modify their existing
KPIs (Hess & Andiola, 2017).
 Realistic: This objective is realistic because this objective is designed for only a
10% growth rate, instead of other non-realistic imaginary figures (Hettich &
Müller-Stewens, 2017).
 Timed: Period of 12 months is considered.

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Situational Analysis
PESTEL Analysis
Political analysis: The decision of the transport ministry to completely launch electric
cars in the United Kingdom by the year 2025 will provide a fast mover advantage to the
company (Ingle & Phute, 2016).
Economic analysis: This factor incorporates the economic growth rate, interest rates,
inflation rate, disposable income of the targeted audience, etc. For example: the positive
relationship between inflation rate and disposable income of the upper-middle-class families
implies that management will have a wider targeted audience. Current inflation rate in the
United Kingdom stands at 2.4% (Krebs, 2016).
Social factors: The management also studies about the population growth, age
distribution, lifestyle choices of the targeted people, etc. These factors have a direct effect on
the marketing strategies process by the company (MacDuffie, 2018).
Technology factors: Landscape technology changes to empower the growth of the
company. For example: the management is moving towards implementing Artificial
Intelligence (AI) and Machine Learning (ML) in their cars to enhance consumer safety. This
is the aspect of future technology (Perkins & Murmann, 2018) .
Environmental factors: The company deals in automobile industry and automobiles
produces lot of carbon and other harmful substances that has negative impact on the
environment. Tesla incorporation produces electronic cars to reduce such impact on the
environment (Chen & Perez, 2018).
Legal factors: The company have to follow their legal duties. For example:
Employment Act 2002, describes the legal norms in favour of the employees. The

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management has to fulfil all such legal aspects in order to conduct operations (Rogerson,
2017).
SWOT
Strength: This section will conclude the internal strategic factors of the company.
These are the internal factors that empower the company to ensure profitably, especially in
the long-run process. Their strong points are highly innovative processes, strong bran and
effective control on production processes. CEO. Elon Musk has adopted the democratic
leadership style to strengthen the organizational structure of the Tesla (Stringham, Miller &
Clarke, 2015).
Weakness: These factors are the internal strategic factors that limit organizational
performance. Despite its strong brand performance, the company has major weak points such
as limited supply chain, limited market presence and high prices of their vehicles (Wagner,
2019). For example: the company has a huge market presence in the market of the United
States, on the other hand, they have a low presence in China (Chen & Perez, 2018).
Opportunity: The company is operating in the electronic car segment and they are
moving towards the driverless technology in the automobile industry, thus this provides a
major fast-mover opportunity to the company. It is estimated that by the year 2025, the
Transport ministry is planning to completely launch the electric care to take over the diesel
and petrol engines. Apart from this, the management also has the opportunity for global sales
expansion, supply chain expansion and business diversification (Hardman, Shiu &
Steinberger-Wilckens, 2015).
Threats: The company also incorporates major threats through aggressive
competition, fluctuations in material prices, government regulation and fluctuation in the
supply chain plans. For example: due to aggressive competition the company incorporates

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less profitable market shares. Competitors of the company are: Tata Motor Corp, Hyundai,
Chevrolet, Volkswagen, etc (Hess & Andiola, 2017).
Marketing Strategy
Segmentation: Under this the management divides the population into group as per
their age, social status, psychological characteristics, etc. They issue segmentation based on
the region, density, age, life-cycle stage, degree of loyalty, benefit sought, social status, life
style choices, personality, etc. After evaluating, under segmentation they incorporate the
people of age 30+, both genders include (male & female), they occupational status lies under
employees, professionals, self-employed and business owner. All three degree of loyalty are
including under their segmentation, apart from this the personality type of people are
determined & ambitious (Hettich & Müller-Stewens, 2017).
Targeting: Under this the company choses specific groups to offer their products.
They target people who belongs from the rich class because they incorporate premium
pricing strategy (Hardman, Shiu & Steinberger-Wilckens, 2015).
Positioning: TESLA uses mono-segment positioning has it is suitable for the target
customer segment. TESLA also incorporates anticipatory type of positioning under which
they positioning themselves under the market segment that has low turnover with the
anticipation to increase in future (Chen & Perez, 2018).
Marketing Mix
Product:
The company has various models such as Model S, Model X, Model, Commercial
Evs, etc. These models come with powerwall2 and powerback2. Apart from this, these
models also have solar panels, inverters, monitoring devices, etc. These specifications will
help marketing management to fascinate a large number of consumers.

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Price:
They incorporate the premium price strategy technique. Tesla cars are expensive
because of their electric vehicles and driverless technology even customers also willing to
pay high prices. Unlike other automobile companies, Tesla does not incorporate geographical
pricing strategy (Ingle & Phute, 2016).
Place:
The company sells their vehicles through showroom (Krebs, 2016). The organization
doesn't utilize vendor systems to sell its items. The electric automaker works stores and
displays in the US and 29 different nations around the world.
Promotion
The management of the company incorporates various methods for promotion such as
viral marketing, digital marketing, etc. Their marketing management focuses on viral
marketing methods, this style is unique among the automotive industry (MacDuffie, 2018).
Evaluation of Marketing Plan
This marketing plan will help the management in establishing an effective presence in
the market of the United Kingdom with effective and immediate efforts. Marketing
management of the company should focus on the norms of digital marketing as currently,
they are only focusing on the viral marketing aspects (Perkins & Murmann, 2018).
Pros & cons of this marketing plan
PROS:
This marketing plan provides detail aspects about the scenario and future changes. This
incorporation is obtaining through the SWOT and PESTLE analysis.
This marketing plan with help the company in fascinating audience.

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This marketing plan also showed that the company should say in their marketing campaign
that they care about the environment and they come up with the solution of the electric cars.
CONS:
This plan do not guarantee for success as no plan in the world is comes with the 100%
guarantee for success. Although by following this plan, the management can enhance their
chances of success.
Recommendations
 Artificial Intelligence: The management of the TESLA should effectively implement
the process of AI and ML in their automobiles (Rogerson, 2017).
 Low pricing methods: The company should lower their car model prices because their
current price strategy is only focusing on the upper-middle-class people (Stringham,
Miller & Clarke, 2015).

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Conclusion
It is concluded that the company should incorporate the norms of the AI and ML in
their future technology cars. It is also concluded that the company focuses on the premium
pricing strategy method to target only financially sound people. Apart from this, through
political analysis, it is concluded that electric cars are safer for the environment and in future
government will also support the electric car engines.

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References
Chen, Y., & Perez, Y. (2018). Business model design: lessons learned from Tesla Motors.
In Towards a Sustainable Economy. New York: Springer.
Hardman, S., Shiu, E., & Steinberger-Wilckens, R. (2015). Changing the fate of Fuel Cell
Vehicles: Can lessons be learnt from Tesla Motors?. international journal of
hydrogen energy, 40(4), 1625-1638.
Hess, M. F., & Andiola, L. M. (2017). Fraud Risk Brainstorming at Tesla Motors. Issues in
Accounting Education, 33(2), 19-34.
Hettich, E., & Müller-Stewens, G. (2017). Tesla Motors. Business Model Configuration. New
York: Springer.
Ingle, S., & Phute, M. (2016). Tesla autopilot: semi autonomous driving, an uptick for future
autonomy. International Research Journal of Engineering and Technology, 3(9), 78-
89.
Krebs, S. (2016). Silent by design? Tesla's Model S and the discourse on electric vehicle
sound: Tesla Motors Germany, Model S 85D (2015). Sound Studies, 2(1), 93-95.
MacDuffie, J. P. (2018). Response to Perkins and Murmann: Pay attention to what is and isn't
unique about Tesla. Management and Organization Review, 14(3), 481-489.
Oates, J. (2019) Tesla has made a profit. Repeat, Tesla has made a profit – $143m in fact.
Retrieved from: https://www.theregister.co.uk/2019/10/24/tesla_makes_a_profit_shocking/
Perkins, G., & Murmann, J. P. (2018). What does the success of Tesla mean for the future
dynamics in the global automobile sector?. Management and Organization
Review, 14(3), 471-480.

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Rogerson, S. (2017). Is professional practice at risk following the Volkswagen and Tesla
motors revelations?. ORBIT Journal, 1(1), 78-90.
Stringham, E. P., Miller, J. K., & Clark, J. R. (2015). Overcoming barriers to entry in an
established industry: Tesla Motors. California Management Review, 57(4), 85-103.
Wagner, I. (2019). Tesla – Statistics & Facts. Retrieved from:
https://www.statista.com/topics/2086/tesla/