Marketing Strategy Report: Analysis of Tesla's Business Objectives

This report provides a comprehensive analysis of Tesla's marketing strategies, aiming to address various business objectives. It begins with an introduction to Tesla, an American electric vehicle and clean energy company, and outlines the report's structure. The first part focuses on situation analysis, utilizing PESTEL analysis to examine political, economic, social, technological, environmental, and legal factors influencing Tesla's operations, along with a SWOT analysis considering the impact of epidemics. The report also assesses Tesla's competitive advantages. Part two delves into market segmentation, targeting, and positioning, recommending SMART goals and marketing strategies based on the marketing mix. The report analyzes the internal and external business environments, competitive landscape, and current marketing strategies, offering recommendations for potential improvements. The conclusion summarizes the findings and recommendations.

Marketing Strategy

Executive Summary
This report would project the precise information in respect to various marketing
strategies company can use to meet all its different business objectives. SMART Objectives
would also frame to support the marketing strategies. This report would involve situation
analyss of company, internal and external business environment analysis, competitive
analysis. This would also comprises with the current marketing strategies company has used.
STP tactics company has used would be analysed in this report. Recommendations over
possible strategies that company can use would also grant in this report. This report aimed
over adressing different marketing objectives.

Table of Contents
INTRODUCTION.....................................................................................................................................4
Part 1.....................................................................................................................................................4
Situation Analysis...............................................................................................................................4
Threat of epidemic on business operations of Tesla .........................................................................7
Analysis competitive advantages.......................................................................................................8
Evaluation of current marketing strategy..........................................................................................9
Part 2.....................................................................................................................................................9
Market segmentation, targeting and positioning..............................................................................9
Goals and objectives........................................................................................................................10
Recommend marketing strategy......................................................................................................11
CONCLSUION.......................................................................................................................................14
REFERENCES.........................................................................................................................................15

INTRODUCTION
Marketing strategies are the blueprint of the business objectives, that need to be
achieved in a certain period. It refers to a game plan to reach customers and attract them to
buy particular products or service (Boscor, 2016). Tesla is an American electric vehicle and
clean energy company, founded in 2003 and also deals in manufacturing of tesla batteries,
solar panels and roof (Clark, 2017). This firm mainly believe, that faster the world stops
replying on fossil fuels, movement towards a zero-emission future, will be more increased. In
this report, light will be put upon understanding full marketing audit of internal and external
environments of Tesla using appropriate sources. Details of Tesla current position relative to
other industry members and their marketing strategy also being examined with number of
illustrations. Analysis of market segmentation, targeting and positioning of one of its sub-
brand, with recommendation of SMART goals marketing strategies based upon marketing
mix are demonstrated.
Part 1
Situation Analysis
Tesla Company is an American automobile company. The organisation has been
engaged selling electric automotive products. Company has an aim to serve the best quality
of automotive products to enhance the customer lifestyle. Company aims to dominate the
entire automobile sector at global level. In recent time due to changing business environment
the demand of electric automobile products has been increased that’s why this situation
analysis is conducted. Situation analysis is about to assess the current situation of business in
respect to the environment in which it operates. In order to analysis the current situation of
company PESTEL Analysis is the tool that suits the organisation to channelize situation
analysis.
PESTEL Analysis
PESTEL Analysis and assess various external forces that put an impact over business
operations of company. Factors like political, economic, social, technological, environment
and legal factors are a part of this analysis tool..
Political factor: Political factor involves all different policies that government has
formed in order to enhance the growth of corporate sector. In United Kingdom government

has been very supportive towards the growth and development of corporate sector as it allows
the government to sustain and expand the economic growth of country (Pawaskar and Goel,
2016). Policies like licensing policy, taxation policy and many other policies of government
create an impact over the business scale of the TESLA Company (Trivedi, Trivedi and
Goswami, 2018). Political environment of country create surrounding atmosphere around
which all companies work and try to achieve the business objectives they carry. Political
factor also involve stability of government ruling the country. In recent time due to BREXIT
issues like restrictions over trade of Tesla Company has faced. BREXIT influenced the
company's policies and stratgeis related to trade and further business expansion. Due to the
BREXIT company needed to suffer restrictsions in trade. In United Kingdom country has a
very stable government which allows the government to form long run policies and sustain all
different rules and regulations in context to long run. This allows the company to sustain its
strategies and form the strategies in long run. Government in United Kingdomhas always
been supportive towards use of electric cars which has also allowed the TESLA Company to
enhance its growth potential in United Kingdom.
Economic factor: Economic factor is another crucial external business environment
factor influence the business operations of TESLA Company. It comprises with elements like
value of currency, currency exchange rate, inflation, growth rate of automobile sector in
United Kingdom, growth rate of gross domestic product of UK and all different economic
aspects. All these elements impact over production of company, sales and all associated
business functions (Massaglia, Merlino and Borra, 2018). Inflation involves in economy
influences directly the selling capacity of the potential customers of TESLA Company.
Inflation restricts the buying power of customers which also reduces the sales of company. In
recent time due to COVID 19 crisis Tesla Company has faced an immense deficit in its sales
turnover due to poor economic condition of United Kingdom. After BREXIT issue also
company needed to face trade restrictions whih has also made the company to suffer due to
economic crisis of United Kingdom (Zafari, 2017).
Social factor: Social factor involve elements like cultural and traditional values and
beliefs of people, education background or literacy rate of target customers in the market and
other associated factors. Social factors put a direct impact over the buying decisions of
potential customers in market as company get to interact directly with customers. TESLA
Company also channelizes various marketing campaigns to attract the buying decisions of
customers’ by taking competitive advantages through social factors. Current fashion and

trend is another key element involve in social factor which influences the business of
company (Janzer, 2020). In United Kingdom people are much aware in respect to utility of
the electric cars which has also boosted the sales of company. Due to attractive marketing
campaigns and strategies company could motivate efficiently all potential buyers to buy the
electric cars for the personal and professional use.
Technological factor: Technological factor is the major influence external business
environment factor that put an impact over the product development activities of TESLA
Company (Moriuchi, 2019). The segment company deals with has an strategic involvement
of all technological advancement in United Kingdom. Company also conducts research to
improve the technology company channelizes for its operations. Government all across the
globe has supported the technological advancement and development which has further
supported the company in advancing the technology of company.
Environment factor: Environment factor is another crucial external business
environment factor that influences the business operations of company. In recent time people
in United Kingdom has become much aware about the use of eco-friendly products (Rijhwani
and et.al., 2018). People became keen towards buying electric cars which has given a huge
scope to the TESLA Company to enhance its business growth in United Kingdom.
Government also initiate to use these products for protecting environment from pollution and
all the internal damages (Lim and et.al., 2016). Company has also been engaged in corporate
social responsibility operations in United Kingdom. Company also involve the people of
United Kingdom to conduct the corporate social responsibility functions to expand the reach
of such campaign among the people of UK. This is the recent development of business
environment and has drastically influenced the business operations of company.
Legal factor: Legal factor involve all different laws and legal regulations applicable
over the TESLA Company. Laws such as anti-discrimination act, equality act, data protection
act, licensing act and many other legal regulations are applicable over company as it is a legal
requirement of company. In order to conduct business operations company requires to cope
up with the regulations associated with all these act. Legal factor is one of the key business
environment factors and if the company aims to sustain the good flow of operations it
requires to utilise the legal factor well in favour of the business operations of company.
The above mentioned external business environment factor are the key factors that
directly influence the business operations of company.

Threat of epidemic on business operations of Tesla
This epidemic has greatly impacted Tesla's business operations and as per a report
over 130 Tesla employees or contractors have tested positive. They also took the decision to
suspend production at some of their factories (Gürel. and Tat, 2017). Following is the Swot
analysis of Tesla:
Strengths
 It is among the leading automobile company because of its unparalleled advancement
in innovation and luxury simultaneously. Thus even in epidemic company is able to
maintain a satisfactory pace as people are preferring personal vehicle in place of
public transport.
 It is the best in-class electric cars and occupies among top three places in terms of
range.
 Tesla has a high rate of innovation in their company therefore the market trust and
expects them to develop competitive and profitable products which leads to financial
gains. After epidemic also they will be able to regain the trust of their customers.
 They have the ability to manufacture environmental friendly cars which uses only
electricity and do not emit carbon dioxide or other air pollutants.
Weakness
 It does not have a strong distribution process as they say it is time-consuming to make
a delivery.
 As Tesla indulges in innovation therefore the risk of mechanical and production
complication is also greater. At present Tesla does not have any emphasis on
sanitisation and other epidemic precautions such as sanitizing the equipments, car
doors etc. It may withdraw customers away from purchasing of the products.
 Shortage of experience in comparison to other big players which are there from many
years (Gladka and Fedorova, 2019).
Opportunities
 Looks for expansion in untapped market, and they get greater opportunities in Asian
market which is still unsaturated in terms of automobile and renewable energy market
and can launch more modernized, and satisfactory from hygiene and safety point of
view in this epidemic.

 As Tesla has in-house battery production technology it helps the company in
increasing manufacturing rate and reduce production costs. In epidemic also they get
an advantage as they do not import and is safe (McCain, 2019).
 As they manufacture environmental friendly cars', government offers them different
facilities to do so.
Threats
 The greater threat to Tesla is extensive competition from both the alternative fuel
vehicle and self-driving technology. Its competitors are Toyota, Ford etc. Due to
epidemic competitors of Tesla are also making efforts to bring something innovative.
 New companies are also entering the market and offering environmental friendly cars
at lower costs. And after this epidemic more of environmental friendly cars will be
launched by new companies.
 As the company uses aluminium, steel, lithium, copper cobalt, nickel and lithium-ion
cells and all these materials have volatile prices which affects company's production
and the prices of all these materials will hike up and thus Tesla's production cost will
also increase (Schooley, 2019).
 Sometimes it is less attractive to young generation as they like fuel-driven sports cars
because of their unique feature.
Analysis competitive advantages
Tesla Company has been good knowing for its innovation and technology
developments. Innovation has been associated with the biggest USP Tesla Company possess
(Astuti, Afiff and Balqiah, 2018). Management of Tesla Company has always focused over
innovation in product development activities. Company has been one of the key players in
electric car segment that further can be projected as the USP for the company its brand value
in electric automobile segment (Mukonza and Swarts, 2020). Company usage another
strategy to enhance the growth of company. Customers can books cars of company over
internet. This is another USP that work for the company. This strategy support the company
in taking competitive advantages over their competitors like Nisan, Hyndai, Jaguar and many
other brands as customers get to book cars over internet which will provide a competitive
advantage to organisation. This has allowed company to attract the customers all across the
globe. Company also usage various marketing and promotion channels that consumes modern
tools and technologies. Company run its marketing campaign over digital mediums like
Amazon Prime, YouTube and all different digital platforms. Company also consume social

media for its promotional activities (Olanrewaju and et.al., 2018). This tactic support
company n taking competitive advantages by attracting the buying decisions of customers in
market. These strategies use by company has also become the USP for the company.
Management of company prioritises comfort in innovation that has supported the
organisation in producing the luxury modern cars which has created a good reputation in
front of target customers all across the globe.
Evaluation of current marketing strategy
Tesla Company has been using diversified strategies like social media marketing,
digital marketing and many other strategies that can support the growth of company.
Company has also constantly focused over innovation that also support the organisation in
continuous development of products offer by company. All these tactics has allowed
company to dominate at larger level the automotive sector. Company’s performance chart
indicate that company has generated approximately 87 million pound business in recent
financial year (Nedumaran, 2019). Growth rate of company is also approximately 5% per
year which also indicate that company could entertain effective success due to all the
strategies and tactics it has used. Evaluation can be done on the basis of total return over the
investment of company. Evaluation is about to analysis the outcomes of the strategy.
Evaluation on the basis of results are the best way to identify the overall outcomes of the
strategies. Performance chart of organisation project the reach of brand in the potential
customers of organisation. Growth rate is another indicative tool that project that how much
the profitability of company affected due to the strategies channelised by company.
Part 2
Market segmentation, targeting and positioning
Marketing team at Tesla Company follow the precise segmentation, targeting and
positioning process channelize the promotions of company.
Segmentation: Marketing team of Tesla Company follow the demographic segmentation and
geographical segmentation strategy for its marketing campaign related to its model Tesla S.
Demographic segmentation involves segmentation process based on age, gender, income,
education, family, social status, occupation and life style. Geographic segmentation drives
company to segment its products based on country, city, language, climate, density,
population and area (Eneizan, AbdWahab and Obaid, 2016). All these factors allow company

to segment Tesla S effectively in the market. Segmentation is a key factor that directly
influences the marketing campaign of company. This can be stated as the target zone which
company requires attracting for its marketing activities.
Targeting: Company follows the niche targeting strategy for all its marketing and
promotional activities. Niche will be the high income people for this product. As the Tesla S
offer by Company are associated with high cost so the company needs to target only specific
customers that can potentially afford the products offer by company. Company only target the
high income base people all across the globe. Targeting strategy is clear of Tesla Company
which allows the company to channelize all its resources in the specific manner (Chen, 2016).
Targeting play an important role for the company as it guides the direction of company’s
marketing campaign in such manner that company can entertain massive success for its
marketing and promotional activities.
Positioning:Tesla Company position Tesla S over all social media, digital networks and
other key promotional channels. Advertisements, slogans are used to position the products
offer by company. Positioning is an important aspect associated with the growth and success
of product offer by company. If the company is looking for the success of the product than it
has to position its product in the right direction so that buying decision of potential customers
can attracted by company. Company also give attractive offers like discounts, bonus and
many other offers to attract the customers in market.
The above mentioned strategies company use to segment, target and position all its
products in market.
Goals and objectives
Goals
To achieve the sales growth of 30% at the end of this financial year due to Tesla S in
the year 2020.
SMART Objectives
Company will use SMART Objectives for its business operations.
Specific: The objective of the company is specific in nature. Company aims to enhance the
sales growth of company with the support of its new launched Tesla S. This is the key
objective of the company that it looks for boosting the growth rate and profitability margins.
Company also specifically tries to enhance the customer experience from utilising the

products of company. The objectives of business is clear that company aims to serve the best
level of product in form of Tesla S at the competitive prices so that customers of company all
across the globe get the best level of automobile products.
Measurable: The sales growth of company is measurable. Company can assess the profit
margins with the support of its financial statements. The sales growth can easily be monitored
throw comparative analysis from the earlier financial years. Company can easily address the
sales turnover of Tesla S.
Achievable: The objectives set for the business are achievable. Company can easily achieve
the sales growth and profitability margins which it has targeted for its business. Tesla
Company has already achieved the sales growth of 30% in its earlier financial year’s
performance. This new product has an advanced features and long battery backup which
would attract customers. Tesla S design is also very attractive that can entertain the decision
making of customers in market.
Realistic: The sales growth of 30% is realistic in nature. Company has an effective resources
and an experienced team of professionals. With the support of effective marketing stragies
company can achieve his target. The product Tesla S would support company in acheivjng
this sales growth.
Time based: The objectives of company are time based. Company has set a target of one
year to achieve this objective.
The above mentioned goals and objectives are the most suitable for the business
operations of Tesla Company.
Recommend marketing strategy
Tesla Company can follow the strategies mentioned in the points below for achieving
all its various business objectives and goals.
Current marketing strategy of Tesla Company can be evaluated and analysed with the support
of marketing mix elements.
Product: Tesla Company has been well known for a multinational brand in electric
automobile segment. Company deals in different products like electric vehicles, batteries,
solar panels and roofs. All these products contain high quality that can support the best
consumer experience. In case of electric vehicle company offers both commercial and luxury

vehicles (Lewis and Ling, 2016). Tesla Company tries to serve the best quality products to its
customers in all product segments. Company has given huge emphasis over quality of
products to meet the needs and requirements of potential customers of company. Due to the
quality products of company in a very short time spam company has entertained huge success
and growth all across the globe.
Price: Price is a crucial marketing mix factor that influences the business operations of
company. Tesla Company offers various products at the best price possible. Company follow
the competitive pricing strategy to serve all its products. This policy for pricing allows the
company to offer the best luxury products at the best price on the basis of the per capita
income of people in country. In general case prices of electric car is higher than the petrol or
disel based cars. Also in case of other automobile products prices of electric automobile
segment is higher than the other fuel consuming products. Due to the efficiencies and
environment friendliness of these products customers are willing to pay such extra cost to
company.
Place: Tesla Company is currently operating its business operations across the globe.
Company has become a global brand in automobile sector. The global expansion of business
has allowed company to meet the needs of customers all across the globe. Finance team of
company also channelize various development campaigns to enhance the business scale of
company by opening up new business locations at different parts of world (Onyango, 2016).
Place is an important aspect of business as if the business of company has been extended to
the global level which denote that company has the higher brand value as compare to other
local or regional brands. Customers also stay ready to pay such extra amount for the
globalised brands due to quality assurance.
Promotion: Promotion is defined as promoting products offer by Tesla Company in front of
various potential customers all across the globe. Company usage different channels like
social media, digital platforms, radio, television and many other modes of promoting
company’s products. Promotion is a key aspect influences the growth of company in target
market. Promotion supports the organisation in attracting the potential customers towards
buying company’s products. Effective promotion strategies have been one of the key reason
behind the massive success of Tesla Company in such a short span of time. Company
highlight al; the attractive product features in all its promotional campaigns which support the