Tesla Motors Advertisement Plan: A Marketing Strategy Report

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Organizational Analysis
Tesla Motors is an American Automotive organization that has achieved remarkable success and
recognition in the industry. The organization has several objectives and aims that have driven the
operations and functions at the firm. These are discussed below:
Primary Objective
 To drive the world's transition towards a sustainable energy
 To develop for scalable clean energy generation (Tesla, 2019)
 To generate demand and drive sales for electric cars produced by Tesla
Secondary Objective
 To support for management of corporate reputation
 To manage the existing customer base and create customer referrals (Tesla, 2019)
 To build long term band awareness
The aims and objectives of Tesla are achieved bale and realistic as the company is
accommodating for transiting the world automation towards sustainable energy and its
development. The company aims at driving 20% of it’s a market share to use electric cars and
develop the scope of sustainable energy (Tesla, 2019).
The organization is working continuously for accomplishing the goal of developing sustainable
sources of automation. To support for building an entirely sustainable energy ecosystem, Tesla
is manufacturing a unique set of energy solutions (Tesla, 2019). The plan at Tesla is to develop

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Power wall, Power pack and Solar Roof programs enabling the homeowners and businesses to
manage and utilize a renewable source of energy generation.
The business has worked in an effective manner to implement the advertisement plan and
achieve organizational and marketing aims. The company is actively engaged in developing an
online presence and brand value of the cars (Tesla, 2019). Tesla is famous for not investing
magnitudes of amounts into marketing capital and expenses of the business. The company
actively participates in developing online brand value and presence in the global environment.
The marketing strategy had worked effectively as Tesla was the most tweeted when it launched
its Model X (Tesla, 2019). However the company requires undertaking effective marketing
decisions and campaigns to reach out for an increased level of consumers and generate higher
brand awareness in the market.
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Marketing Background
Tesla is highly recognized for investing in the designing and quality of the products rather than
spending on marketing and advertising costs. The company develops useful products and
maintains a strong customer relationship that enforces for word of mouth publicity and customer
referrals for the business. Tesla is able to sell around 20,000 cars a year without spending any
amount on marketing and promotional activities (Tesla, 2019).
External Influences
Economic Trends: There are various economic trends and concepts that impact on the
advertisement and marketing strategy of an organisation. It is extremely necessary for business

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organizations to study the economic environment and economic trends to undertake effective
advertising and marketing decisions (Raj, et. al., 2013, para 3, pp.48). Tesla is required to
consider the economic patterns such as income available with the target market to expand,
increase or decrease in the Gross Domestic Products, economic cycles and taxation regulations
impacting on the purchasing power of the consumers.
Social and Demographic Trends: These are the social trend that highly reflects on the
impression and potential demand of the products for the consumers. The social trends such as
acceptance towards the electric cars and sustainable sources of energy have positively reflected
on the markets and the sales of Tesla (Raj, et. al., 2013, para 3, pp.48). The company has been
benefitted with the increase of awareness towards sustainable sources of energy in different
demographics of society.
Technology Trends: The technological trends such as increased involvement and dependency
on the application of social media and digital marketing have also impacted on advertising plans
for Tesla (Raj, et. al., 2013, para 3, pp.48). Therefore, the business is more involved in the
process of social media marketing rather than paid forms of marketing.
Regulatory Trends: The regulatory trends includes any legal and social regulation developed by
the government or regulatory authorities. The regulation of laying a greater focus on sustainable
sources of energies has positively impacted Tesla’s operation and advertising plans (Raj, et. al.,
2013, para 3, pp.48).

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Market Analysis
Tesla acquires for a significant share in the global automotive industry and the transportation
sector. Tesla has emerged as a strong competitor in the electric car production which has
supplied for substantial growth in sustainable energy usage and production in the automotive
industry. The business has depicted growth and a constant increase in the market share profits
with GAAP profits of $2.90 per share in the third quarter of 2018. The market segments of Tesla
include for different products such as electric cars, Model X, Model S, Model 3 and Roadster etc.
Competitor Analysis
Tesla is observing major competition in the market with the entrants of new organizations and
competitors. The business has observed high competition and dynamic factors such as changes in
the demands of products or changes in the preferences of the consumers. It has also analyzed an
increase in the awareness of sustainable energy resources and developments in the demand for
non-traditional products (Ha & Janda, 2014, para 5, pp.216-230).
Tesla follows an effective and highly consumer integrated marketing communication strategy.
The business has involved into social media connectivity and development of digital marketing
strategies in order to connect and communicate with the consumers on a regular basis. The
business has developed a strong consumer relationship with effective consumer centres and
programs to support for redressing consumer issues and grievances (Ha & Janda, 2014, para 5,
pp.216-230). The marketing and communication strategy at Tesla includes gathering feedback
and informative information from the consumers through regular email systems and consumer
service assessments.

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Target Market Analysis
The target market of Tesla represents an age range of 30-60 years of age. The company targets
explicitly upper-middle-class families and working sections of the population. Tesla believes in
the power and therefore also focuses on market segments that represent power and force in the
society (Ha & Janda, 2014, para 5, pp.216-230). The company target consumers with
demographics of attraction towards speed and power in the vehicles. The target market includes
a small section of the younger generation that is attracted to high speed and technological
products. The product line is defining electric cars and supporting sustainable sources of energy
targets for an environmentally aware section of society. The business also targets for the market
section that requires high technological features and products that are environmentally stable.
The consumer behaviours include brand loyalty and consumers providing a fair share of profits
for the business. The company enjoys a loyal consumer base and has developed as a preference
in the mind-sets and choices for a particular section of the market and the company has sustained
the market share for a long time due to the presence of a loyal consumer share (Fujimoto, 2014,
para 6, pp.8-16).
Product Analysis
The business of Tesla has a fair share in the market with more than 200,000 happy and
successful deliveries on the road. The company has observed an increase in the share with the
launch of Model S and Model 3. The company has a reputation and image of an environmentally
responsible company which is working towards instilling the automotive industry with the
practice of sustainable energy consumption. The business has developed a market image and

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brand equity that supports carbon reduction, development of sustainable sources of energy and
including electric cars into the automation industry.
Market Communication Plan
A Marketing communication plan is a document prepared to strategize and develop the
marketing policies and approaches of an organization. The market communication plan is
devised to educate and communicate the consumers regarding the company's products and
services (Mahfooz, 2015, para 4, pp.81).
Target Market Profile
Demographic:
 Age Range: 30-60
 Upper Middle-Class Families
 Household Income of $80,000
Psychographics
 Aware of gas consumption and the environmental impact of the car
 The desire for an affordable luxury car
 High safety value
 Designs and Technology as a preference

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Geographic
 Urban Area
Positioning Strategy
The positioning strategy for Tesla is to position the products as specialty products that require an
investment of time and money on the part of the consumers. The company aims at designing
such products that attract a class of the economy who are aware of the environmental impact of
the products. The target market and positioning strategy include focusing on consumers
demanding for luxury products with the combination of technology and sustainability (Shende,
2014, para 6, pp.1-8). Therefore, Tesla places the products developed whether electric or non-
electric as specialty products. These products are treated as the preference of the consumers a no
other alternative is considered by them when undertaking a purchase decision.

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References
Fujimoto, T. (2014). The long tail of the auto industry life cycle. Journal of Product Innovation
Management, vol.31, no.1, pp.8-16.
Ha, H. Y., & Janda, S. (2014). Brand personality and its outcomes in the Chinese automobile
industry. Asia Pacific business review, vol.20, no.2, pp.216-230.
Mahfooz, Y. (2015). Brand equity-consequence relationship: Evidence from automobile
industry. International Journal of Business and Management, vol.10, no.3, pp.81.
Raj, M. P. M., Sasikumar, J., & Sriram, S. (2013). A Study on Customers Brand Preference in
Suvs and Muvs: Effect of Marketing Mix Variables. Researchers World, vol.4. no.1,
pp.48.
Shende, V. (2014). Analysis of research in consumer behavior of automobile passenger car
customer. International Journal of Scientific and Research Publications, vol.4, no.2,
pp.1-8.
Tesla. (2019). About Us. [Online]. Tesla. Retrieved from: https://www.tesla.com/.