BTEC HNC Business Unit 2: Marketing Essentials - Tesla Report

This report provides a comprehensive analysis of Tesla's marketing strategies, focusing on its marketing mix and comparing it to Land Rover. The analysis covers the 7 P's of the marketing mix, including product, place, price, promotion, physical evidence, process, and people. The report also includes a detailed marketing plan for Tesla, outlining objectives, segmentation, targeting, positioning, and a PESTLE analysis to understand the political, economic, social, technological, legal, and environmental factors influencing the company. The report aims to provide insights into Tesla's approach to the market and how it competes with other automotive companies, particularly Land Rover. The report explores the company's objectives, including increasing sales, enhancing consumer experience, boosting profitability, and expanding market share, along with a look at its segmentation, targeting, and positioning strategies. The report is based on the provided assignment brief which is a BTEC Level 4 Higher National Certificate in Business Unit 2: Marketing Essentials.

MARKETING ESSENTIALS

TABLE OF CONTENT
INTRODUCTION.......................................................................................................................................3
LO 2............................................................................................................................................................3
P 3 Marketing Mix Analysis....................................................................................................................3
LO 4............................................................................................................................................................8
P 4 Marketing plan..................................................................................................................................8
CONCLUSION.........................................................................................................................................12
REFERENCES..........................................................................................................................................13

INTRODUCTION
Understanding of the market is a very essential factor for the organization to establish
them in it. Tesla is a United States company which is public and having its headquarters
California. The report is going to consist of marketing mix of Tesla with another company and
the market plan of the organization.
LO 2
P 3 Marketing Mix Analysis
Marketing mix is a tool which is used by organizations so that they can improve the
operations and processing of the company so that they can achieve their objectives from time to
time. There are seven strategies which the companies can uses in marketing mix which can help
the organization to make decisions accordingly for the future (Kuntonbutr, 2019). It is very
important for the companies to make the decisions accordingly so that they can have a stable
future and maintain their reputation in the market. Tesla is a very well established organization in
the market which is why the company has to analyse and evaluate these factors so that they can
perform better in market. The following report is going to discuss the marketing mix of Tesla
with its competition Land Rover.
7 P’s of
Marketing
Tesla Land Rover
Product Tesla provides effective electric cars
which reduce the cost of customers to
maintain their vehicles and increases
their satisfaction effectively.
Company also provides better
efficiency to compete with different
fuel consumption cars with better
mileage for long travel as Tesla
Land Rover has divided its vehicle in
5 segments according to customers to
increase their satisfaction and also
reduce the cost. As company provides
high quality materials which helps
customers to improve their
experience. Company is innovating
and entering in electric cars as they

develop high power batteries which is
very cost effective and also helps
customers to increase their
experience. Due to increase in the
sustainable energy. Tesla also
implement solar energy driven cars to
compete with existing players and
gain higher profit margins with better
product specification effectively.
With better interiors and high
advanced technology Tesla is leading
the automotive market and also
providing better choice to customers
in their fore said budget effectively.
are currently selling diesel and petrol
vehicles (Lancaster and Massingham,
2017).
Place Place is very essential factors which
helps business to deliver its products
to its customers effectively and also
promote the brand image in market to
increase opportunity to gain higher
profit margins. Tesla also uses
franchisee and licensing stores which
are legally authorized to sell Tesla
cars. This also increases the market
coverage of company and reduces the
investment to manage the entire store
by the company itself. By this
method company also reduces the
maintenance cost and increases the
sales of the company effectively.
Company also has its personal
showroom to get real information
Land Rover is very effective in
distributing its products in the market
which are having the highest income
level customers to gain higher market
share with better profit margins
effectively. As company implements
intensive marketing strategy to attract
more customers.

about customer buying pattern and
develop effective products and
resolve all the issues to attract more
customers in the business effectively.
Price Tesla uses competitive pricing
strategy due to high completion in the
market which increases the threat to
reduce market share and profitability
negatively. Tesla uses different cost
analyzing tools which helps to
determine the operational and
functional cost of the company to
determine effective process of the
cars which also increases the
satisfaction level of customers and
also provide opportunity for company
to gain higher profit margins
effectively. As company has higher
and innovative feature and
technology which also provide
company opportunity to change
higher prices to attract more
customers and also generate better
revenue while competing in the
market. The pricing of the Tesla of
the electrical cars are high but the
customers are willing to pay that
because they prefer driving electrical
rather than traditional fuel vehicles.
As there are high competition in the
petrol and diesel cars land Rover uses
high pricing strategy which helps
business to increase the efficiency of
the company to sell more products
and attract more customers. As the
company produces luxury cars which
are only affordable by rich customer
which needs quality and do not focus
on prices. Pricing strategy which is
used by Land Rover is even higher
than Tesla because the company
focused on the comfort level of the
customers and provide them with all
the expectations (Pooler, 2018).
Therefore the company prices their
products higher so that the customers
by the products high all facilities and
luxury in the product.
Promotion As company has the innovative
workforce it is also very essential for
Land Rover uses different methods of
promotion which can be print media

company to adopt innovative
marketing strategies by using digital
technology. This reduces e the cost
and also increases the performance of
company to communicate with all
customer segments faster and very
easily.
and social media. The main focus of
company is to reduce cost of
promotion and invest in quality of
product to increase customer
satisfaction which is the best
promotion method of mouth
publicity. Land Rover does not have
to promote them because the brand
name is enough to get customers in
the company. The quality and
facilities in the product is built in a
manner which makes the customers
trust the products of the company.
Physical
Evidence
Tesla uses effective packaging and
labeling of all the products which
adds value to customer to buy their
product more effectively and increase
education level of customers. Tesla
provide detailed information on its
packing and labeling which also
helps customers to choose effectively
from the existing market and
increase trust on the company. Tesla
uses attractive and catchy colours
which increases the attraction level of
customer towards those products and
increase their sales effectively
(Greasley, 2019). This also helps the
company to increase profit margins
and brand values effectively.
Land Rover implements different
types of products with different
message and tagline which helps to
position each product differently.
This also increases the perceived
value of customers for the products
and increases opportunity to improve
profit margins and customer
satisfaction effectively.
Process Process is the strategy which helps Land Rover has adopted effective

Tesla to increase the brand value and
contributes in the growth of the
company effectively. Tesla also tries
to identify the lack of inventory and
refill them to ensure the availability
of all the products which increases
the services engagement of customers
and make them loyal to the company
effectively. Company also operates
its stores online due to increase the
customer trends to shop online which
also attract this customer segment
and improve sales of the company
effectively.
online store and customer feedback
forum which helps to increase the
information about all the issue which
customers are facing and by
establishing effective customer
service team Land Rover are
resolving all the issue and increase
customer satisfaction effectively.
People Tesla has effective marketing and
sales team which identifies to all the
information and needs and wants of
customer to produce effective product
and increase market share. Tesla uses
training and develops programs to
increase the potential of their
employees which also helps to
increase the job satisfaction and
employees retention effectively.
There are also different types of
structure which helps Tesla stores to
increase customer engagement
effectively. As the company uses the
motivation in their management to
increase employee’s performance and
also improves organisation culture to
Land Rover is very effective in
maintain the employee relations by a
using different motivation theories
ands focusing on employment benefit
to attract potential talents in the
company to increase the operational
performance to compete in market
effectively. As company also uses
effective performance evaluation
system which helps company to
understand the performance to
determine the cost. Land Rover is
using Hierarchical structure which
helps to determine all the roles and
responsibilities of employees to
increase healthy working
environment and achieve objectives

achieve objectives effectively (Pater
and Cristea, 2018).
of the company effectively with
reduced disputes and high
performance teams effectively.
LO 4
P 4 Marketing plan
Executive Summary
There are a lot of changes which take place in Tesla so that they can meet the customer’s
needs and expectations. The company has come up with electrical cars which is the new
requirement of the customers. This is going to be a great advantage for the company for the long
run in this industry as well as they will be able to have high revenue generation.
Objectives
 To increase sales of new product of Tesla by 30% till the end of year 2022.
 To enhance consumer experience by 40% in upcoming 10 months.
 To increase the profitability by 20% till the end of year 2023. To increase the market share by 40% till the end of year 2023.
Segmentation, targeting and positioning
 Segmentation
There are four segmentation categories which are psycho graphic, behavioural, geographic
and demographic. All the segmentations have to be focused on by Tesla so that they can make
the new product reach the customers from time to time. It is very important that the company
makes products according to the needs of the customers which is a very important factor for the
company (Brychkov and Domegan, 2017). Customers need attractive models in cars which
Tesla’s new product will not be able to meet that is why improvement has been done in the
product.

 Targeting
The target is not going to be the young generation for the company because they do not have
any interest in the environmental friendly products. The target is going to be the loyal customers
of the company and those who understand the importance of making the environment a better
place to live in which is a very important factor for the company (Cluley, 2017). The upper class
those are ready to pay the price for the electrical cars and value that vision of the company.
 Positioning
The pricing is premium because of the material which is used in the product and the changes
which have been made in the product so that they can match the lifestyle of the customers and
the needs as well. The company will be able to profit more when they make the customers aware
of the environment saving process the company has started which is good for a long run.
PESTLE
 Political factors
The government is promoting the electrical cars as well globally which is a great opportunity
for Tesla to grow in the market and faster (Chernev, 2018). There are new global trading
agreements which have come up which can also be a great factor for the company to expand
themselves and there is stability in the government as well which can make the expansion
process easier.
 Economic factors
The economic stability is an issue for Tesla because of the current situation globally but the
cost of the batteries has reduced which can be used as an advantage for the product of Tesla.
There is a reduction on the renewable resources which can be a great factor to promote their
products and increase the profit margins.
 Social Factors
The customers or population of the world wants low carbon lifestyle which is why they will
appreciate the electrical cars of Tesla (Hisrich and Ramadani, 2017). There are a lot of

improvements which have been made in Tesla electrical car so that they can match the standards
and expectations of the customers which is a great factor for the company.
 Technological Factors
The rate of change in technology is high which are a great threat and an opportunity for Tesla
because they are being able to have a better functioning for them. There is a lot of popularity of
the company online which is why the company should invest in the technologies in the
organization so that they can have a better functioning.
 Legal Factors
There is a patent protection which Tesla is having for the expansion globally which is a great
opportunity for the company and the reputation as well in the market (Malhotra, 2018). There is
energy consumption which is being regulated in the company so that they can satisfy the
customers the most in all the ways possible.
 Environmental Factors
The company is very particular for the environment which is why they are having a better
waste disposal plan and that creates a better standard for the company in the market. The climate
change is also an opportunity for the company because they have a huge contribution in that
factor (Wirtz and Lovelock, 2016).
SWOT
 Strengths
Tesla can produce products which are environmental friendly and that is a great advantage
for the company to have a long run in the market. There is a decrease for the batteries and
renewable resources which is a great advantage for the company for production.
 Weaknesses
The company is not being able to reach the customers from time to time for delivery which is
a great threat for the company (Stephens, 2016). This is giving the competitors an upper hand on

the organization. There is a lot of debt in which Tesla is currently which can make the company
not have a better future in the market.
 Opportunities
There is a change in the concern level of the customers towards environmental friendly
products which is a great opportunity for the company (Pantano, Bassano and Priporas, 2018).
There is self drive features which Tesla has come up with is another factor which can make Tesla
capture the market easily.
 Threats
The competitors of Tesla are strong in the market and the factors which the electric cars do
not have are being provided by the competitors to the customers. The young generation does not
appreciate the models of the electrical cars and this idea of environmental friendly products
which can be a great threat for Tesla.
Budget
Particulars Amount
Direct Materials £800.00
Labour £550.00
Production £700.00
Marketing and advertising £550.00
Other costs £400.00
Total £3,000.00
Investment Techniques
Tesla is going to opt for venture capital for the new product which the organization has
come up with so that they can have a better functioning. The competition in the market is
growing which is why the company will have to make changes in the organization accordingly

and make the right measures for the company to grow. The portfolio and customers base of Tesla
is strong and the advantage with the product is also good there the company will opt for this
option so that they can function effectively and meet the expectations of the customers on time.
Monitoring and Evaluation
Tesla is having a skilled and experience employees in the organization but there has to be
a monitoring and controlling over them as well because the company is not being able to reach to
the customers on time. It is very important that the production, operations is taking place on time
so that the company can have a better functioning and the company will be able to have a better
place for them in the market globally (Kimura, 2017). There has to be a transparency in the
organization which is present in Tesla which is making the working of the company even better
and the employees are giving their best for the new product of the company.
CONCLUSION
From the above report it can be concluded that it is very essential for the organization to
have a better functioning for them after understand the market for them which is a very important
factor. This will make the company grow in the market and get a lot of profit margins.