Marketing Strategy for Business: Tesla Analysis Report

This report provides a comprehensive analysis of Tesla's current marketing strategy, examining its growth strategies, competitive landscape, and marketing mix (4Ps). It delves into Tesla's generic and intensive growth strategies, including market penetration, product development, market development, and diversification. The report also presents a SWOT and PESTEL analysis to evaluate the opportunities and challenges facing Tesla from both strategic and operational perspectives. Porter's Five Forces analysis and an Ansoff matrix are employed to assess the competitive environment and growth options. Furthermore, the report explores Tesla's target market segmentation, brand strategy, and positioning, offering recommendations for future marketing strategies and digital integration. The conclusion summarizes key findings and suggests short-term recommendations to enhance Tesla's strategic position, emphasizing the importance of digital marketing.

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Student Number 2057132 Email [e-mail]
Assignment Details
Module name Marketing Strategy for
Business Module Code 7MK007
Lecturer Dr.Ravi Dissanayake For the attention of Dr Imran Khan
Due date 4/10/2021
Assignment title Tesla current Marketing Strategy and recommendations for future sustainability
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Table of Contents
1 Executive Summary ..................................................................................................................... 4
2 Tesla Electric vehicle Productions. .............................................................................................. 5
3 Growth strategies followed throughout ....................................................................................... 6
Tesla-Generic Strategy .......................................................................................................... 7
Tesla’s Intensive Growth Strategies ...................................................................................... 7
3.2.1 Market Penetration (Primary Strategy). ......................................................................... 7
3.2.2 Product Development..................................................................................................... 7
3.2.3 Market Development. .................................................................................................... 8
3.2.4 Diversification................................................................................................................ 8
Major Competitors ................................................................................................................ 9
3.3.1 Competitive Sales and Market Share: ............................................................................ 9
Overall assessment of the marketing mix (4Ps) Analysis ................................................... 10
3.4.1 Product mix to Tesla .................................................................................................... 11
3.4.2 Place/Distribution in companies’ Marketing Mix........................................................ 11
3.4.3 Tesla, Inc.’s Promotion (Promotional Mix) ................................................................. 12
3.4.4 Tesla’s Pricing Strategy followed ................................................................................ 12
4 Critical evaluation of the opportunities and problems facing the organization from both the
strategic and operational perspectives: .............................................................................................. 13
Tesla Inc. SWOT Analysis & Recommendations ............................................................... 13
4.1.1 Tesla’s Strengths (Internal Strategic Factors) .............................................................. 13
4.1.2 Tesla’s Weaknesses (Internal Strategic Factors) ......................................................... 14
4.1.3 Opportunities for Tesla, (External Strategic Factors) .................................................. 14
4.1.4 Threats Facing Tesla, Inc. (External Strategic Factors) ............................................... 15
Proposed TOWS Matrix ...................................................................................................... 16
Tesla, PESTEL Analysis & Recommendations .................................................................. 17
4.3.1 Political Factors Affecting Tesla’s Business ............................................................... 17
4.3.2 Economic Factors......................................................................................................... 18
4.3.3 Social Factors Influencing Tesla’s Business Industry ................................................. 18
4.3.4 Technical Factors ......................................................................................................... 19
4.3.5 Ecological/Environmental Factors ............................................................................... 19
4.3.6 Legal Factors ................................................................................................................ 20
STRATEGIC MANAGEMENT PORTERS 5 FORCES ANALYSIS .............................. 21
4.4.1 Porter's Five Forces in case TESLA Motors ................................................................ 21

4.4.2 Bargaining power of suppliers ..................................................................................... 22
4.4.3 Bargaining Power of Buyers ........................................................................................ 22
Substitute and Threats ......................................................................................................... 24
Ansoff Matrix for Tesla....................................................................................................... 25
4.6.1 Market penetration. ...................................................................................................... 25
4.6.2 Product development. .................................................................................................. 25
4.6.3 Market development. ................................................................................................... 25
4.6.4 Diversification.............................................................................................................. 27
5 Knowledge and understanding of alternative competitive positions/strategies ......................... 27
Analysis of Target market segmentation and targeting strategy ......................................... 27
5.1.1 Target market segmentation ......................................................................................... 27
5.1.2 Geological segmentation .............................................................................................. 27
5.1.3 Demographic segmentation ......................................................................................... 27
5.1.4 Socio-economic segmentation ..................................................................................... 27
5.1.5 Psychographic segmentation ........................................................................................ 27
5.1.6 Behavioural segmentation:........................................................................................... 27
Target markets and targeting strategy – UK context........................................................... 28
5.2.1 Target market 1 ............................................................................................................ 28
5.2.2 Target market 2 ............................................................................................................ 28
5.2.3 (Future) Target market 3 .............................................................................................. 28
Tesla’s brand strategy and Positioning Analysis................................................................. 28
5.3.1 Tesla’s product strategy ............................................................................................... 28
5.3.2 Proposing alternative target markets for Tesla ............................................................ 29
6 Recommended marketing strategy with justification ................................................................ 30
Assumptions, Interpretations and strategic Suggestions based on strategic analysis ......... 30
Conclusion and short-term recommendations ..................................................................... 30
Competitive sales growth and potential product growth:.................................................... 31
Adding value to Tesla’s strategic position .......................................................................... 31
Should be implemented with digital strategy ...................................................................... 32
6.5.1 1. Tesla’s Instagram is more organized ....................................................................... 32
6.5.2 Tesla’s twister is synched with CEO Musk’s Twitter ................................................. 32
7 Conclusion................................................................................................................................ 34
8 Content Tables ........................................................................................................................... 35
9 List of Figures ............................................................................................................................ 35
10 References .................................................................................................................................. 36

1 Executive Summary
Tesla motors is a USA EV (electro vehicle) and green energy organization located in California. It
was found in 2003 by a set of skilled engineers who needed to demonstrate that individuals who are
motivated to drive electric cars rather than traditional fuel engine cars. Tesla believes that in future
the fossil resources will coming to an end then the world will be moving towards EV sector.
This report describes the market by analysing the internal, external and strategies for investigation
incorporate SWOT and PESTEL. Other researches include new market segment for Tesla by
analysing it’s positioning, Targeting based on the findings.
This report also explores the marketing mix for focused markets and target areas as analysed. Also
report evaluates and concludes that it would be ideal to choose UK as the market for the development
of Tesla in Europe region.

2 Tesla Electric vehicle Productions.
For EV market tesla made it first product, the Roadster uses its powerful battery technology and
electric powertrain. Since then, Tesla initiated the world first since forever luxury EV vehicle –
Model S – which performed best in all segments.
High safety, Efficient, and Production, Model S was able to full fill the requirements for the vehicle
of this century which recorded that can accelerate from zero to 60 within 2.3 seconds.
In 2005 tesla launched Model X which is faster, safety vehicle which was graded 5-star in overall in
US national highway and Traffic administration
Then according to Elon Musk’s plan they launched model 3 for the market
Afterwards, Tesla produced the most agreeable truck ever. It can run up to 1 million cost per
$200,000 which vary on fuel costs
In 2019, Tesla divulged Model Y, a medium size SUV, Cyber truck, which has the features of a
truck than a sports car. (Tesla, 2018)

3 Growth strategies followed throughout
Figure 3-1
Tesla uses generic strategy to achieve their goals in global automobile industry. In potters theory
they are used to call company’s strategy of marketing segment
Tesla’s generic strategy help to keep the company more competitive, and survive in the world
automobile industry. The intensive strategy helps to develop its revenue generation of Tesla. The
growth strategies with the generic competitive strategy help for companies’ operational adequacy
(Rowland, 2018)

Tesla-Generic Strategy
Tesla's uses broad differentiation as its competitive strategy. This broad differentiation implement
the competitive advantage on the manufacturing of new innovations that separate Tesla from
different competitors in the automobile business.
Tesla themed eco-friendly products. In applying broad differentiation competitive strategy, the
every person who are motivated towards eco-friendly can get to its business.
At first, in this automobile industry Tesla used differentiation focus as its generic strategy for their
advantage. In applying, the organization followed it’s the uniqueness of its automobiles, also
targeted high end market for electric vehicles.
These first customers are rich people who have a high inclination to purchase recently launched EV
products. Somehow the company is popular and creation costs are declining, their strategy has
moved for broad differentiation.
Tesla’s Intensive Growth Strategies
3.2.1 Market Penetration (Primary Strategy).
Market penetration is their primary intensive growth strategy. This intensive growth strategy help
business development by expanding sales incomes in current business industry.
Consider an example, with aggressive marketing, Tesla planning to sell huge amount of cars across
the US. Along these lines, these sales help tesla to gain more income and same it made all the way
here up to now.
This intensive growth strategy match with other competitions generic strategy by creating
competitive advantage on achieve their share in the market. This aggressive marketing helped to
expand their incomes and it depend on intensive strategy.
3.2.2 Product Development.
As its secondary intensive growth strategy, Tesla has chosen product development. In this case, the
company develops by growing new items that create fresh market opportunity.
Tesla applies this strategy by producing new EV vehicles with cutting edge innovations for
insignificant environmental effect.
This intensive strategy keeps Tesla’s differentiation generic competitive strategy procedure by focus
high tech innovation to get their customers attention.
When considering, a strategic objective for this intensive growth strategy is to work on research and
innovations.

3.2.3 Market Development.
Tesla uses market extension as intensive growth strategy. This strategy also has entering new
markets and expand its global business activities.
For example, Tesla step by step expand their global market by building up new facilities and
offices. As of now, the Tesla sells few countries, however its normal that future expansion in global.
This intensive strategy upholds Tesla's central goal and vision explanations, which feature
worldwide leadership in the car business, with energy solutions for the transportation and different
areas.
Differentiation generic strategy helps market improvement by developing unique products that pull
in customers comes to new sectors.
In market perspective development intensive strategy, important target for its growth. Global
business by developing up alliances with another companies that make it easy to enter new industry
sectors. (Kissinger, 2018)
3.2.4 Diversification.
Tesla follows the strategy diversification, yet just as an insignificantly huge identified intensive
growth. This intensive strategy help company to go through new business segments.
For instance, the company means to make new battery items for an assortment of manual
applications. Be that as it may, this intensive growth strategy has an insignificant effect on Tesla’s
overall budget performances.
Tesla focuses in the vast majority of its endeavors on market penetration and Vehicle development
to implement its auto and power solution industries. Tesla can apply the differentiation generic
competitive strategy to improve the probability of achievement in using this intensive growth
strategy.
A strategic target linked to diversification is to build Tesla's research and development venture to
distinguish new business opportunities. The other strategic objective dependent on this intensive
strategy is to secure different companies or enter partnership to grow totally new innovations.

Major Competitors
3.3.1 Competitive Sales and Market Share:
Being that the Tesla S can run within a single charge almost 483Km and the milage is not more than
less; the makes when considering BMW, Mercedes-Benz, Renault, and BYD. The BMW i3 is
recorded for to get more than 100 miles in range with when its features used power saving mode (AG,
2018).
Mercedes-Benz has likewise has launched a product that has mileage of 137 Km. All these models
are less expensive than the Tesla by GBP 10,850 to GBP 14,465. The I3 would be in luxury Vehicles
column and the B-Class in the luxury Vehicles line.
These vehicles are a lot less expensive, yet they actually miss the mark regarding the reach Tesla
Models put out. In its first year on world market in 2013, it sold more than 10,000 models, which is
40% of the market cover.
Figure 3-2
Other car companies notably:
Finally, the Asian vehicle BYD is the top Chinese producer of electric vehicles. The e6, go upto a
mileage of 196 Km, making it the second place with the proce GBP 25,300 before any incentives. On
the world’s biggest auto industry, as indicated by records; they figured out how to sell more than
18,400 vehicles, holding 31% of the complete piece of the industry.
Volkswagen, Kia, Ford, Toyota, Smart, Chevy, and Nissan all have electric combination with hybrid
technology however they focus around gas power, and low mileage give an clear difference between
them. (Chint, 2018)

Overall assessment of the marketing mix (4Ps) Analysis
Figure 3-3
Tesla uses its own marketing mix to survive in automobile industry. The 4Ps (Product, Place,
Promotion & Price) are the factors considered when targeting a marketing campaign. Tesla keeps up
Tesla controls its marketing strategies so strictly so far which helped them to bring more profits to
the company. As a Lead manufacturer of EV industry in the globe, the organization keeps on use its
marketing mix to help market penetration and possible expansion in abroad nation.
In using Tesla’s marketing mix or 4P develops its brand fame alongside make higher market
penetration. Elon Musk's public image is a advantage to the promotional success in reinforcing the
brand. (Kissinger, 2018)

3.4.1 Product mix to Tesla
In marketing mix this element recognizes the Companies outputs or products offered to aimed
clients. Here when analyzing Tesla's products are inside the Automobile, batteries and power
generation segmeentss. Beneficial innovations are the ones that offer some benefit that clients pay
for. In this 4p scope tesla innovate new products that customers get satisfied, Tesla has the
following products:
1. EV – Electro vehicles
2. EV components
3. Batteries ,
4. Solar systems
As we all know company manufacture electric vehicles. As Model S vehicle is one of the world's
most prestigious EV product. Nonetheless, beside vehicles, the Tesla furthermore makes EV car
parts and electric trains that other auto firms produce, this is how they achieve their vision for the
company by contributing world's development toward electric vehicles and maintainable energy.
Additionally, the organization offers batteries for domestic and industrial use. This element of
Tesla's marketing mix shows center around electric vehicles, As Tesla tries to expand its
innovations. (Kissinger, 2018)
3.4.2 Place/Distribution in companies’ Marketing Mix
This element discuss about the venue that motivated a customer to buy tesla products. When the
company grows in a larger scale some expansion of the venue has to be done in 4Ps. The
organization may add more places as its requirements the new way of distributions must done.
Below this are done for the time being.
 Tesla owned Galleries and Shops
 Official Company Website
 Tesla-owned Service Centres
 Charging stations
Clients can check its products in above mentioned display locations situated worldwide.
Nonetheless, clients need to use the company’s site to finish sales exchanges. Additionally,
Customers can interact with its products where the maintained, charging also repair centers.
Also, clients can charge their vehicles through the organization's charging stations. These locations
have limitations but overall it’s a good way of promoting its products. By considering the above
factors, the place element of Tesla’s marketing mix shows huge corporate management control on
the sales for their innovations. (Steen, 2015)

3.4.3 Tesla, Inc.’s Promotion (Promotional Mix)
In this component of the marketing mix, the company’s strategies and what they are through. This
expect to fulfill the clients requirements and help to develop the company brand. Tesla’s
promotional mix use below methods for both automobile and power industries.
 Viral marketing (most significant)
 Personal selling
 partnerships
 Sales promotions
 Direct marketing
Tesla's marketing mix is quite different from other manufacturer promotions, they do viral
marketing to attract new clients for their business. For instance, they targeted kids largely when they
launched model S, in this way likewise promoting the organization's product mix. Personal selling is
a 4P strategy executed through sales work force at company-owned stores and galleries.
Then again, they have a referral program to get new clients to their business. In some areas
company do direct marketing, for instance they promote power trains to target professional
companies through this. Here viral marketing plays a major role in their marketing mix. (Kissinger,
2018)
3.4.4 Tesla’s Pricing Strategy followed
Prices plays a major role in marketing mix. In this organization analysis instance of Tesla, prices
support the premium brand, just as profit focuses for a limited production scale. These prices impact
benefits and clients' insight. The organization has the below pricing strategies:
 Premium pricing strategy
 Market-oriented pricing
Tesla, uses a premium pricing strategy. This uses the proce for tesla’s uniqueness and high quality
technical features. For instance, Customers will follow the process as they are ecofriendly products.
Along these lines, technology and product design are critical factors in effectively using the
organization's way when deciding this factor. Higher valuing agrees with the generic strategy of
differentiation, which express the Tesla’s uniqueness of EV product. Additionally, the organization
follow the market-oriented pricing strategy for its solar panels base company SolarCity.
.