Marketing Strategy Analysis of Tesla: A Detailed Report

This report provides a comprehensive analysis of Tesla's marketing strategy, examining its approach to the electric vehicle market. The report begins with an introduction outlining Tesla's vision and situational analysis, including PESTLE and SWOT analyses to assess external and internal factors impacting the company's growth. It delves into Tesla's competitive advantages, such as its innovation in electric vehicles and strong brand reputation. The report then evaluates Tesla's current marketing strategies, emphasizing its unique reliance on word-of-mouth marketing. The second part of the report focuses on Tesla's segmentation, targeting, and positioning (STP) strategies, particularly in the UK market. It recommends specific objectives and goals, along with marketing strategies that leverage the marketing mix (product, place, price, promotion) to target the youth demographic in the UK. The conclusion summarizes the key findings, highlighting how Tesla can gain market share through strategic marketing initiatives. The report also covers marketing mix and STP analysis of Tesla focusing on the UK market.

Marketing Strategy

TABLE OF CONTENTS
Part1.................................................................................................................................................3
INTRODUCTION...........................................................................................................................3
Executive Summary.....................................................................................................................3
Situational Analysis of Tesla.......................................................................................................3
Competitive advantage................................................................................................................5
Evaluating Marketing Strategy of Tesla:.....................................................................................6
Part2.................................................................................................................................................6
Segmentation Targeting & Positioning of Tesla.........................................................................6
Recommend Objective and goals:...............................................................................................7
Recommend Marketing Strategies...............................................................................................7
Conclusion.......................................................................................................................................8
REFERENCES..............................................................................................................................10

Part1
INTRODUCTION
Marketing strategy used to target market share and customer by the organisation. Tesla is
one of the leading electric vehicle manufactures and clean energy provider in the world with the
vision of providing of focus on renewable and environment friendly products and services. The
report highlights situational analysis of Tesla and its competitive advantage. Report also
evaluates current market strategy of the organisation. Next Part of the report analysis sub brand
of Tesla and its strategies for market gain.
Executive Summary
The report describes briefly market strategy and analysis of Tesla. In the report explain
effect of external and internal environment on organisation growth and market strategy. Pestle
and Swot analysis in the report helps Tesla to understand business environment of the
organisation. It also explains competitive advantage of Tesla and evaluates current marketing
strategy of the organisation. In the next part describe about racing car of Tesla analysis and
marketing strategy of it.
Situational Analysis of Tesla
PESTLE Analysis of Tesla
PESTLE analysis describes effect of external factors on the growth of Tesla. It helps in
formulating policing and gaining market share in the country.
Political Factors:
British is one of the political stable country which decrease in changing policies and laws
by government for organisation. After BREXIT, New government focus for the use of renewable
source of energy and decreasing pollution (Kanten and Darma, 2017). It will provide incentives
for the development and innovation of Electric vehicle which helps Tesla in expanding business.
Again it is assuming that citizens of the country will gain subsidy in purchasing renewable and
pollution free source of products which again increase market share of Tesla.
Economic Policy:
Government decided to decrease corporate tax in the mid of 2020 and hence Tesla’s
profit share will increase and can be utilise for further innovation and development of the
products. After BREXIT, government is focused on electrification of automobiles and for this
decrease different types of taxes on renewable and pollution free product. This will increase
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purchasing capacity of the customer for Tesla electric vehicle and hence improve growth of the
organisation (Mothersbaugh and Hawkins, 2016).
Social Factors:
British customers developed their taste for electric vehicle and also they welcome new
product and hence it support Tesla’s market and product development in different part of the
country. UK citizens are highly educated and support environment conservation which again
creates opportunity for Tesla to sell its pollution free product in British market. One stop
shopping of UK customer and attraction of Hybrid and electric vehicle with variety of models by
Tesla showroom is another advantage of the organisation.
Technological Factors:
Britain is technological advance country which creates opportunities for Tesla automation
and innovation. However, it will become difficult for the organisation to align with continuous
technological changes and modification and hence increase the expenditure of the organisation.
UK citizens developed taste for automation which creates opportunity for Tesla and hence can
increase its market share.
Legal Factors:
There are number of laws and policy by government to protect customers, employees and
environment. After BREXIT, government frames new policy to support employees in the
organisation for example decreasing working hours and days, increasing daily wages, health
security, paternal and maternal leaves etc. This kind of amendment applied in the organisation,
increases its good-will but decrease its revenue. Again international patent protection,
consumption regulation of fuel creates opportunity for Tesla for expanding its business by
introducing more and more electric vehicle.
Environment factors:
There are number of environment factors which can impact on the growth of
organisation. As the climate changes increase, government focus on its maintenance by
supporting eco friendly industries and hence create opportunity for Tesla as it focus on clean
energy and electrified automobile. Company focus on building automobile for sustainable
growth and hence create uniqueness of product and services in the market.
SWOT Analysis of Tesla
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SWOT analysis is used to check strength, weakness, opportunities and threat for the
organisation and hence help in framing marketing strategy according to it. Tesla swot analysis
for framing UK market is given below.
Strength of Tesla:
Tesla is one of the largest investor and developer of electric vehicles and hence it helps in
gaining market share. Company has a long reputation of selling electric vehicles innovation and
development and hence fame all around the world for uniqueness of its product. Again
Company’s co founder Elon musk is widely known for futuristic approach and hence experience
of developing space ex like products and hence company has highly skills, talented and
professional worker which create competitive advantage.
Weakness of Tesla:
Company is limited to technological advance countries like UK and USA and not focused
to operate in under developing countries which create advantage for competitors. Product prices
are comparatively high which effect on purchasing capacity of the customer and hence decrease
its market share. Very limited number of customer focus on environment and hence again
decrease its market share.
Opportunities for Tesla:
Company can expand its business by price cut which increase its product sales and hence
increase its market share. Company is limited to few citifies of country and market development
in different part of country helps in gaining more and more customers. UK customer welcomes
new taste and trend and hence by diversification of business, organisation can increase its market
share and expand its business.
Threats for Tesla:
Government frame different policy and laws for new entrants and hence aggressive
competition and price cut decrease Tesla’s customer. Fluctuating prices of raw material of Tesla
product again become threat for maintain market. Various models technology and design leaked
by employees or by cyber attacks and hence to secure the company in advanced technology and
maintaining employee loyalty become difficult.
Competitive advantage
Tesla’s large investment in innovation and technology advancement attract large number
of customer with variety and hence increase competitive advantage for the organisation.
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Company has a strong reputation and fame across the world for selling electric vehicles around
the world. Again electric vehicle with single charge can run for longer period then other product
in the markets. Highly skilled and talented worker is again creating competitive advantage for
the Tesla (Thomas and Maine, 2019). Variety of product with amazing design and comfort
attract large number of customer to purchase Tesla product in the Market.
Evaluating Marketing Strategy of Tesla:
Tesla marketing strategy is entirely different from all the competitors as company spent
very less in digital and other form of product advertisement. Organisation believes in mouth to
mouth publicity and referrals. Tesla creates a unique image of product in the mind of customer
and hence increases its market value and on the hand customers become marketers for Tesla.
This is one of the strategies used by Rolls Royce which has still large market and product
demand across the world. Market through customer experience helps in decreasing cost and time
for the organisation. However, this kind of policy can create competitive advantage for
competitors as present generation purchase according to product advertisement and description
on different platform.
Part2
Segmentation Targeting & Positioning of Tesla
In this model focus on discovering customer and target them for selling the product.
Segmentation:
In this Tesla focus on individual for selling the product rather than targeting large number
of customer and develop product and services according to that. In this geographic position of
customer demand kept in mind for example company electric vehicle has a large demand in
London. Demographic of the region then focused for example London has large number of youth
population and it can be easy for organisation to attract by selling racing cars which attracted to
them and as they support new taste and trend. In the next step of segmentation organisation focus
on Psychographic for example British is highly educated and focus health conscious and believe
in environment protection but also has attraction for in luxury and stylish racing cars. Uk
customers are not loyal to particular brand even they welcome new market product and market
and it will easy to attract them for sub brand of Tesla.
Targeting:
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In Targeting, Tesla focuses on youth as most of the racing cars purchase by this segment
and hence London will be better place for business diversification. Tesla gain large market share
in London become of large youth population which welcomes new market and product and on
the other side they believe in eco friendly and sustainable environment.
Positioning:
This is final stage of STP and in this marketing process in positioning. Tesla can used
digital and other form of marketing to reach target segment and sells its product. Company
already has a strong worldwide for selling variety of racing electric vehicles with unique design
and on the other hand long battery backup with high speed again attract large number of
customer.
Recommend Objective and goals:
Tesla objective and goal should be expand its market with attracting large number of
customer though all kind of platform for example digital marketing, mouth to mouth publicity
and media. Build a brand for selling variety of unique racing electric vehicle which can attract
large number of diverse population of UK and hence increase its market share (Falát and
Holubčík, 2017)
Recommend Marketing Strategies
Marketing strategy can help Tesla in targeting large number of UK youth for purchasing
its racing electric vehicle. Marketing Mix helps in broadcasting different factor that influence
marketing strategy.
Product:
There are varieties of electric vehicle sell by Tesla. But company can gain large market
share in UK by introducing variety of racing and luxuries electric vehicle. UK is rich country and
hence it will easy to attract customer by this product development and management.
Place:
Company has good reputation among customers of UK. But it can focus on opening the
market in whales and Scotland which increase its customer and market share and hence increase
growth of the organisation.
Price:
Tesla has to focus on price fluctuation in initial level or by giving discount and offer
which increase its market share in UK (Bilbeisi and Kesse, 2017). Company will benefit after
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sometime as the UK citizen is addicted to one stop shopping and hence increase number of loyal
customer for the organisation (Chen and Zhang, 2017).
Promotion:
Company focus on mouth to mouth publicity and focus on customer marketing. Tesla
has to focus on advertisement on different platform for example Digital marketing and media to
attract large number of customer for its racing vehicle. As mouth of youth inspired by social
media and hence increase focusing on such platform will be competitive advantage for the
organisation (Kim, 2020)
Company can frame strategy to sell electric racing vehicle to attract large number of youth
and promotion through social media and other platform will be advantage for the country.
Fluctuating price in marketing development will attract large number of customer and hence
increase market share of the company.
Conclusion
From the above it can be concluded company can gain large market share by situational
analysis for example technological advancement of Tesla attract large number of customer.
Analysis of opportunities like market development in different part can again help in the growth
of organisation. Company focus on electric vehicle innovation and development for example
high battery backup car is competitive advantage of the organisation. Company focus on mouth
to mouth publicity and hence customer becomes its marketers. STP helps in targeting young
generation for selling racing electric vehicle in UK again increase the growth of organisation.
Company has a objective and goal for gaining large market in UK by product and market
development. Using marketing mix company can target large number of youth in different
Britain for selling racing vehicle and also social media platform can become additional
advantage for the organisation.
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REFERENCES
Books and Journals
Bilbeisi, K.M. and Kesse, M., 2017. Tesla: A successful entrepreneurship strategy. Morrow, GA:
Clayton State University.
Chen, R. and Zhang, W., 2017. Research on the Marketing Strategy of Electric Vehicle based on
Consumer Behavior. DEStech Transactions on Social Science, Education
and Human Science, (msie).
Falát, L. and Holubčík, M., 2017. The influence of marketing communication on financial
situation of the company–a case from automobile industry. Procedia
Engineering, 192, pp.148-153.
Kanten, I.K. and Darma, G.S., 2017. Consumer Behaviour, Marketing Strategy, Customer
Satisfaction, and Business Performance. Jurnal Manajemen Bisnis.14.
(2).pp.143-165.
Kim, H., 2020. Analysis of how Tesla Creating Core Innovation Capability. International Journal
of Business and Management.15.(6).
Mothersbaugh, D.L. and Hawkins, D.I., 2016. Consumer behavior: Building marketing strategy.
McGraw-Hill Education,.
Thomas, V.J. and Maine, E., 2019. Market entry strategies for electric vehicle start-ups in the
automotive industry–lessons from tesla motors. Journal of Cleaner
Production.235.pp.653-663.
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