Tesla's Marketing Strategy: Distribution, Market Reactions Analysis

This report provides a comprehensive analysis of Tesla's marketing strategy, covering its background, strategic positioning, distribution methods, brand equity, and customer analysis. Tesla's innovative approach to electric vehicle manufacturing and its commitment to sustainable transport are highlighted, along with its unique $0 marketing strategy. The report also examines market reactions to Tesla's strategies and the company's global expansion efforts, including its presence in Asian markets. Ultimately, the report concludes that Tesla's focus on sustainable energy and technological innovation positions it for continued success and growth in the automotive industry, attracting investors and environmentally conscious consumers alike. Desklib provides a platform for students to access this and many other solved assignments.

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Table of Contents
Introduction.................................................................................................................................................2
Background of the company........................................................................................................................2
Strategic position, choices, and actions.......................................................................................................3
Distribution strategy of Tesla:.................................................................................................................3
Brand equity in Tesla:..............................................................................................................................3
Customer analysis of Tesla:.....................................................................................................................4
Marketing strategy of Tesla:....................................................................................................................5
Market reactions to tesla’s strategy............................................................................................................6
Conclusion...................................................................................................................................................6
References...................................................................................................................................................8

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Introduction
There are many positive impacts of strategic marketing on the business on the company. Tesla motors
founded in 2003 and it has created solar panels. It has converted into Tesla Inc. there are many reasons
behind the growth of the company, such as leadership, strategies, innovations, and others. The company
gets a profit in 2013 only. The company was selling, batteries for electrical vehicles and manufacturing
solar panels. Elon Musk is working as CEO of the company and he makes a new image of the company in
the whole world through independent automaker (Dudovskiy, 2018).
This report will describe the background of the company and it will describe the strategic position of the
company and the strategic position of the company in the world. In this report, tesla strategic action will
describe in the later section of this report.
Background of the company
Tesla has a good image in the industry because of its different concept of fuel-conscious. The company
has invented a new concept to optimize and reduces greenhouse gas emission and it has used
renewable energy sources for electrical vehicles (Folschette, 2017).
Tesla has sold electric luxury SUV cars and it has created a record of selling 100000 vehicles for 2017. It
is the only car in the world that goes from 0 to 100 in 3 seconds. It makes different from all the cars. It
has created this concept towards zero-emission of gases that will create a serious issue for the world
(Jovancic, 2018).
The company has a good vision, which is ‘to create the most compelling vehicles firm of the next
century. It is necessary to improve strategic improvement. Tesla wants to accelerate the use of
sustainable transport through different products. The company is famous because of its products. The
corporation not best sells automobiles. There is the advantage of strategic marketing for the company
that provides better growth and success in the future (Mangram, 2012).
Strategic position, choices, and actions
Tesla is growing day-by-day in the industry because of its unique concepts in the field of automobile
manufacturing process (Investors, 2019). This product makes a good image in the market and it will

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provide huge profit and revenue to the company. In addition, the company has a mission to make a
good reputation in the international market (Mangram, 2012). In addition, the company position is on a
third number of the overall search of cars. It will increase its business and other things as soon as
possible in the future.
Tesla takes make actions that are in favor of the company and thier customers, which also provide
benefits to the whole world in terms of global environmental issue. The company always thinks about
the environment and creates such types of products that are environmentally friendly.
Distribution strategy of Tesla:
Tesla usually makes use of the online sales model coupled with agency-owned stores to sell its cars. In
addition, the company has provided various other sustainable products to their customers and does not
use the traditional dealer community. The organization owned distribution is fraught with numerous
demanding situations (Hill, 2008).
In addition, the company has created his demand in the international market based on their products
and services. Selling automobiles online has decreased the corporation’s promoting fee (Melton, 2018).
It has around 17 shops international to sell its motors, which in step with Tesla facilitates to interact with
capability clients (TESLA, 2019). Moreover, the company has planned about future projects, such as the
Indian market, the Australian market, and many others. Tesla is increasing its business day-by-day.
Brand equity in Tesla:
In addition, the company is behind their targets, which was based on demand. Tesla as a brand provides
the best automobile vehicles. The company has provided many benefits to their employees and other
stakeholders. CEO of the company is also an entrepreneur, which is good for the company as well.
Tesla has continually demonstrated to care approximately user enjoy. In addition, it has helped form a
public perception approximately the brand. In addition, new skills have required completing the work in
proper time. However, help the concept and imaginative and prescient of Tesla (Mangram, 2012).
Customer analysis of Tesla:
The standard clients of the emblem are commercial enterprise executives and marketers who are tech-
savvy, green-pleasant, and rich. The clients are in most cases men looking for luxurious motors.
Consistent with Investopedia, the client’s profile is round 83.9% male and 16.1 %. 77% of shoppers have
profited over $100,000 (Investors, 2019). Its miles anticipated that the model X could have even wider

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patron reach due to its affordability component. In addition, strategies make a company different from
others (Franken, 2014).
Source: (Jovancic, 2018)
The revenue of the company is increasing every year as shown in the above diagram.
Marketing strategy of Tesla:
Tesla is very lots keen on social media and other internet technologies. Elon Musk is the CEO who is the
face of the brand. In addition, the company has good leaders to acquire good benefits in the market
from their knowledge. On social media, in comparison to other vehicle giants, Tesla is inside the pinnacle
three, outperforming Volkswagen, Ford, and Toyota (Investors, 2019). Tesla does not want to pay
classified ads to make an income. There are many opportunities for the company because of its
sustainable uses of renewable energy. The company has good employees to manage their different
works. Tesla’s website is likewise a powerful channel for sales and marketing. However, many
companies focus on the marketing and sales of products. In addition, the company has provided many
benefits to their customers and environment (Jovancic, 2018).

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Source: (Jovancic, 2018)
The company has delivered more than 80000 vehicles in 2018. It is increasing every year and tesla’s
demand is very high in the market. Electrical vehicles will highly use in the future, as they are
environmentally friendly and zero-emission of carbon-di-oxide. It makes different from others and
customers are getting benefits in this product (Garfinkel, 2018).
Market reactions to tesla’s strategy
The market is in favor of Tesla, as it provides better products that have based on sustainable uses of
energy. Marketing strategies are different from others because those stories are providing better
qualities in their products with minimum marketing, which is known as a $0 marketing strategy (Melton,
2018).
In addition, tesla has provided many good things in their products, which makes a good reputation in the
whole world. Most of the countries have invited the company to establish their manufacturing process,
which is helpful for them.

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Source: (Jovancic, 2018)
The company is famous in the whole world because of its $0 marketing strategy. It makes the company
different from others. It can also help to research and development. Most of the organization has a
specific amount for the marketing of their products and services. However, tesla has different missions
and vision for their future (Bhasin, 2019).
Moreover, innovations are helpful in business strategies and goal achievements. There are many
advantages of innovative thinking and decision-making on the business (Goodman & Dingli, 2017). The
company has created a huge image in the global market. There are many technical issues in the
generation of such type of products. However, strategic alignment is necessary to manage all the
processes properly (Hill, 2008).
Conclusion
In conclusion, the company uses the latest technologies to provide better products to the industry of
automobile. It is necessary to manage various issues of technical things and innovations. This report has
provided the background of the company and its growth in the market. In addition, many critical issues
faced by the company in their business functions.
This report has explained about the strategic position of the company in the market and it had provided
strategic choices of the company for their products. It has described the market response to the

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company about its products and services. The Asian market is fully supporting the company and its
products. Tesla has started different manufacturing plants in China and other places.
Finally, tesla has adopted sustainable uses of energy concepts for their products and it will grow in the
market with a huge level of success. The company will provide environmentally friendly products. It will
attract investors to investing their amount for a long time with high benefits.

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References
Bhasin, H., 2019. Marketing Strategy of Tesla. [Online]
Available at: https://www.marketing91.com/marketing-strategy-of-tesla/
[Accessed 3 August 2019].
Dudovskiy, J., 2018. Tesla Marketing Strategy: a brief overview. [Online]
Available at: https://research-methodology.net/tesla-marketing-strategy-a-brief-overview/
[Accessed 3 August 2019].
Folschette, C., 2017. Tesla’s successful marketing strategy shows that it’s time for CEOs to get social.
[Online]
Available at: https://www.talkwalker.com/blog/tesla-marketing-strategy-social-ceo
[Accessed 3 August 2019].
Franken, H., 2014. Strategic Use of Business Models: Case Study. [Online]
Available at: https://bizzdesign.com/blog/strategic-use-of-business-models-case-study/
[Accessed 12 May 2019].
Garfinkel, J., 2018. Gartner Identifies the Top 10 Strategic Technology Trends for 2019. [Online]
Available at: https://www.gartner.com/en/newsroom/press-releases/2018-10-15-gartner-identifies-the-
top-10-strategic-technology-trends-for-2019
[Accessed 3 August 2019].
Goodman, M. & Dingli, S. M., 2017. Creativity and Strategic Innovation Management: Directions for
Future Value in Changing Times. 2nd ed. London: Taylor & Francis.
Hill, C., 2008. International business: Competing in the global market place.. Strategic Direction, 24(9),
pp. 1-15.
Investors, 2019. Financials & Accounting. [Online]
Available at: https://ir.tesla.com/financial-information/quarterly-results
[Accessed 3 August 2019].

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Jovancic, N., 2018. Tesla Marketing Strategy: 3 Lessons You Must Learn From Musk. [Online]
Available at: https://blog.leadquizzes.com/tesla-marketing-strategy/
[Accessed 3 August 2019].
Mangram, M. E., 2012. The globalization of Tesla Motors: a strategic marketing plan analysis., 20(4),
289-312.. Journal of Strategic Marketing, 20(4), pp. 289-312.
Melton, A., 2018. What can we learn from Tesla's $0 marketing strategy?. [Online]
Available at: https://dma.org.uk/article/what-can-we-learn-from-teslas-0-marketing-strategy
[Accessed 3 August 2019].
TESLA, 2019. Model X. [Online]
Available at: https://www.tesla.com/
[Accessed 3 August 2019].