TESLA

Running head: TESLA MOTORS MARKETING PLAN 1
Tesla Motors Marketing Plan
Name of Student
Institutional Affiliation
TESLA MOTORS MARKETING PLAN 2
Executive Summary
Tesla Inc. is an automobile company that manufactures, develops, designs, and sells electronic
automobiles and designs. The company also installs, manufactures, and sells solar energy and
energy storage products. Tesla Inc. segments are energy storage, solar generation, and
automobiles. From this, the automobile segment entails the development, designs, production, or
manufacture of automobiles, leasing of electronic automobiles, sales of automobiles, and those
of automobile regulatory credits. The company energy storage and generation segment include
the manufacture, design, installation, sale, and leasing of these solar products. This marketing
plan report will explore the essential marketing planning segments' analysis such as target
market, competitors, and product strategy on Tesla Motors. This report will outline the company
overview, the SWOT analysis, marketing objectives, and Tesla Inc. and marketing issues.
Therefore, developing this marketing plan will allow Tesla Inc. to increase its sales volume and
increase its influence globally. The plan will also allow the company to understand their
strengths, weaknesses, opportunities, and threats that the company has or faces in its business
operation.
Table of Content
Executive Summary…………………………………………………………………...….….2
Company Description………………………………………………………………………….4
Mission and Vision Statement…………………………………………………………...….…4
Current Marketing Situation………………………………………………………...………7
Market analysis………………………………………………………………………. ………8
Target Market Review…………………………………………………………………...…….8
Product Analysis…………………………………………………………………….………... 9
Competition Review ……………………………………………………………………. ..…..12
Tesla Inc. SWOT Analysis…………………………………………………………………...14
Marketing Objectives and Issues……………………………………………………...…….19
Marketing Strategy…………………………………………………………………...………22
Product/brand positioning…………………………………………………………………………...…22
Market segmentation………………………………………………………………………………...….23
Product design strategy………………………………………………………………………….…….23
Product pricing strategy……………………………………………………………………………….24
Branding strategy…………………………………………………………………………………...…24
Sales and services strategy………………………………………………………………….……......25
Marketing communication plan…………………………………………………………...…...…….25
Advertising strategy……………………………………………………………………………………26
Public relations strategy……………………………………………………………………….……...26
Sales promotion strategies…………………………………………………………………………....26
Action Program……………………………………………………………………...………27
Budgets …………………………………………………………………………………......28
Controls…………………………………………………………………………………......29
Conclusions…………………………………………………………………………………30
References………………………………………………………………………………......31
Company Description
Tesla Motors is a United States car manufacturing company that was established in
Silicon Valley by a group of engineers in 2003. The engineers wanted to prove that electric
automobiles are far better than gasoline cars. The company is also a leading design and focused
on energy generation and storage and innovations that surround energy production (Park et al.,
2014). The first car that the company made was Tesla Roadster which was launched in 2008.
Tesla Motors are produced in its factory situated in Fremont and can produce 1,000 cars in a
week. Tesla Motors have begun expanding its business operations into other places such as
Tilburg, Lathrop, California. And The Netherlands.

Tesla Motors is known for manufacturing, designing, selling Battery Electric Vehicles
(BEV) and electric powertrain elements and lithium-ion packs. Tesla Motors’ marketing
approach and culture are more ‘Silicon Valley’ than the ‘Detroit’ that reflects a strategy
characterized by high innovation, competitiveness, and efficiency (Thomas & Maine, 2019). The
company's operation has grown tremendously from a single rental store that it uses to market its
products in 2008 to close to 18 stores worldwide. The company has also managed to acquire a
production facility measuring 350,000 square and worldwide sales in more than 30 countries.
Tesla Motors Mission and Vision
The company's mission and vision statement outline the company's aims of dominating
the market through the production of global electric automobiles and batteries. The company's
mission statement states that “to accelerate the world’s transition to sustainable energy.” The
company believes that the faster people stop over-relying on fossil energy and shift towards zero-
emission, the better it will be sustainable for the world (Van den Steen, 2015). The company
vision states that “to create the most compelling car company of the 21st century by driving the
world’s transition to electric vehicles.” The company wants to speed up the advent of sustainable
movement by producing affordable and accessible products that will lead to clean energy
production and clean transport of people. The company is emphasizing introducing mass-market
electric automobiles to the global market as soon as possible.
Financial Overview
Fiscal Year 2020 2019 2018 2017 2016
Net 14,294,000 14,863,000 13,683,000 11, 824,000 11,262,300
revenue($)
Gross 10,742,000 11,476,000 10,839,000 9,387,000 9,081,200
profit($)
Net 696,000 1,794,000 1,117,000 1,256,000 1,120,800
income($)
Cost of 8,893,000 9,209,000 8,904,000 7,788,000 7,620,500
marketing($)
Stock price 188.68 183.11 142.69 95.98 91.02
Source: Tesla Motors financial report 2020
From the financial statistics above, the company's net revenue has been increasing and
steady from 2016 to 2020. The gross profit of Tesla Motors also has been steady throughout the
last five years, allowing the company to increase the innovative drive. The net income reduced in
2020 because of the reduced sales volume due to the corona pandemic that disrupted the business
environment despite the steady increase of the net income from the previous years. The
marketing cost is also steady for the last five years of operation, with a relative increase in the
stock price.
Tesla Motors Financial Ratios
Fiscal year 2020 2019 2018 2017 2016
Return on 1.653 -2.258 -3.574 -7.8205 -3.41
Asset Ratio
Asset 0.6047 0.7164 0.7216 0.4104 0.3089
Turnover
ratio
Current 1.8751 1.1346 0.8313 0.8561 1.0743
Ratio
Inventory 6.0732 5.7739 5.5956 4.2129 2.6123
Ratio
Source: https://www.macrotrends.net/stocks/charts/TSLA/tesla/financial-ratios
The financial ratios help the company to determine asset management, liquidity, and profitability
margin. The current ratio enables the company to gauge if they are capable of paying their long-
term and short-term obligations. From 2016 to 2019, the return on asset ratio was negative
because of the net loss.
Current Marketing Situation
When the company was segmenting its market, the company did not decide which
segment was the most fuel-conscious but which segment would allow the company to develop
innovative and long-term model vehicles. The company decided to go with the segment that had
lower volume and was characterized by a price-insensitive performance segment. This segment
would enable Tesla Inc. to develop and establish brand identity and premium pricing that enables
the company to earn gross margins by focusing and targeting the affluent and rich people who
are not afraid of spending (Toumi, 2018). Beginning in 2015, the company has been selling
electric luxury SUVs that have performed well in the market and made a record of 100,000
vehicles in the year 2017. The company positioning is one of the company's biggest strengths
because the company not only manufactures and sells cars, the company also sells technology.
The company positioning statement read that “the only stylish car that can go from 0 to 100 in 3
seconds without a drop of oil.”

Market analysis
The global car industry is thriving with technological advancement and clean energy
technology. For the last ten years now, the market has experienced heavy investment that focuses
on reducing automobiles' carbon emission, and the trend has been successful. Despite this,
customers are also becoming more aware of the climate issues now more than the recent years.
Hence, thousands of customers are looking for cars that will reduce the emissions of carbon that
are affecting the climate (Voigt, Buliga & Michl, 2017). Therefore, due to this trend, there is a
massive shift of interest in electric cars for the last five years. This change can be attributed to
the change of preferences of consumers, federal regulations, price fluctuations of gas, and desire
to reduce the emission of carbon gas into the atmosphere. Therefore, this provides is providing a
massive opportunity to Tesla Inc. that is currently the world-leading manufacture of electric cars.
Target Market Review
Tesla Inc. Target Profile
Male 84%
Female 16%
Income<$50,000 17%
Income >$100,000 83%
18>44 years 33%
45>64 years 50%
65 years and above 17%

From the beginning of 2013, Tesla Inc. has been targeting wealthy middle-aged
individuals to old people of between 40 years to 60 years. Out of this, there has been a gradual
swift positioning of the company products for the target market. The company is now trying to
expand its target market to cover the generation Y aged between 20 years to 40 years and the
middle class who are working. The company manufacture and sells the Model S to men who are
wealthier and younger by age. The target market of Tesla Inc. is categorized into three areas that
include people with high disposable income (Perkins & Murmann, 2018). Other categories
include people who are between 30 years to 60 years and have children, and lastly, individuals
who are single and technologically savvy and are aged between 20 years to 30 years. The
company also targets the companies that purchase their battery components that are superior
electric. Companies that Tesla Inc. targets for this segment include Toyota, Daimler, SolarCity,
and Edison International.
Product Analysis
In 2011, Tesla Inc. began to reduce the production of the Tesla Roadster and focus more
on products that will meet the consumers' needs and demands in the market. The company
decided to research and focus on designing and manufacture BEVs that of current taste to
generation Y. Therefore, the company, through its research and development, begun
manufacturing BEVs such as Model S Sedan and Tesla Blue Star.

Tesla Model S Sedan
This brand was designed and delivered to the market by mid-2012 at priced at $57,000. The
brand was positioned in the market to compete with other brands such as Mercedes E-Class,
Audi A6, and BMW 5-Series in terms of comfortability and luxury. The brand is designed to seat
up close to 7 people with adjustments of the third row of the rear-facing seats (Bruijl, 2017). This
brand also incorporated the BEV technology just like the Tesla Roadster and has a battery that
can last between 160 miles to at least 300 miles. The batteries can also be recharged with any
power source of 200V, 100V, and 480V and have the ability of quick battery swaps.
Model S Sedan Product Anatomy
Core product
The performance of this car provides comfort and luxury, driving an exhilarating experience to
the buyers. Model S acceleration is smooth, instantaneous, silent, and can travel for close to 3.2
seconds without any drop of gasoline.

Tangible product
Tesla Model S has very astonishing features and stylish design. The car's inbuilt touch screen
controls most of the car's functions that include opening the roof, window and changing the radio
in the car in one touch. In addition, the car also offers other benefits such as cabin, climate, and
personalization.
Augmented product
The service and annual inspection of the Model S sedan cost close to $600 while Tesla Inc.
indicates that no oil changes, fuel filters, smog checks replacements for this Model S. In
addition, Tesla Motors also ships dual onboard chargers and wall connects to clients for home
charging services and installation.
Blue Star
The company has to continue to produce BEV Blue Star and Model X to increase its sales
volume. These cars are target toward the large mass production in the market for their middle-
class market target consumer segment.
Tesla Energy Group
Tesla Inc. created a special division within the company that deals with energy components. The
Group is tasked with marketing and developing the power train components, battery charges,
designed battery packs, and market and supply the technology of supply management. The
Group also helps the company to generate the revenues stemming from the sale of the BEV
credits.
New Product Development

The company continues to invest its technological drive to develop more products that
will meet the needs and demands and create extraordinary luxury and comfortability. Through
this, the company has been on a mission to develop electric SUV vehicles, vans for municipal
governments, and family-sized minivans (Bruijl, 2017). This enabled the company to enter into a
strategic partnership with other companies such as Daimler, Toyota, Panasonic to design and
manufacture electric-related components.
Competition Review
The overall manufacture of BEV and plug-in hybrid automobiles has increased
significantly, dominating the car industry. This expansion has come from the design and
manufacture of Tesla Inc.'s current models such as Model X, Model S, and Blue Star and other
brands that are slated for mass production for the consumer segment (Jiménez Falcón, 2015). In
its strategic plans, the company plans to develop electric truck vehicles that will also shift the
consumer preferences towards their products, hence, continue dominating the market.
Tesla Inc. continues to face direct competition from other companies dealing with BEV
and indirect competition from existing companies. The company also faces indirect competition
from companies emerging in the line of plug-in hybrid automobiles. Tesla Inc. also experiences
competition from BEV substitute products that include gasoline-powered cars and gasoline
hybrid cars (Jiménez Falcón, 2015). Out of this, the area where Tesla Inc. has a significant
amount of competitive advantage and experiences less direct competition are areas of luxury
sedan car markets and high-end sports cars.
The competitive advantage of Tesla Inc.
Driven by technology
Tesla Inc. is a technology company that focuses on developing and designing technology
platforms, and this makes it more than just an automotive company. This means that betting on
the Tesla Inc. technology is betting on the new technology in the market. Tesla Inc. designs and
manufactures the car, but instead, they develop the necessary infrastructure to aid the operation
of those vehicles. Through its technology, Tesla Inc. has managed to build stations for battery
swaps, service stations, and networks of superchargers.
Tesla Reputation
Tesla Roadster managed to change the electronic motors' image from considered slow vehicles to
fast-moving motors of desire. The car provided acceleration with a 0 to 60 mph that can beat
superior high-end cars. The company also produced Model S that won most of the company's
awards, allowing the company to build a stronger reputation. With this excellent reputation,
Tesla Inc. has managed to develop an effective and impressive brand image.
Diversifying its business
The company has diversified its business and entered the production of solar generation and
storage components. The company is also in the rechargeable lithium-ion batteries that allow
households to have storage power for solar energy. This has enabled the company to increase its
volume of businesses and sales.
Distribution Review
Tesla Inc. uses an online sales approach alongside the company-owned stores for selling
their cars and other products. The firm-owned distribution is fraught with many challenges, and a
substantial amount of money is used to develop the distribution channel. Therefore, Tesla Inc.,
the brick-and-mortar store, enables the company to sell its vehicles. Online selling has reduced
the company selling costs, and the company's physical stores are used as a showroom for its
electric vehicles. Globally, the company has 17 stores to market and sells its cars, and it helps in
maintaining contact and interaction with customers.
Tesla Inc. SWOT Analysis
Tesla Inc. continues to emerge as the most analyzed and discussed company because of
its innovative approach in the industry. The company has managed to reach successful heights as
a company that provides needed solutions in the energy and automotive market. Conducting a
SWOT analysis is essential because it allows the company to understand its strengths and
weaknesses in the market and adopt appropriate approaches to respond to the challenges they
face internally. The analysis will also allow the company to have a deeper insight into the
opportunities they have in the market and the threats they are likely to face in their operations.
This enables the company to devise effective strategies that will enable Tesla Inc. to curb these
external forces that the companies face.
Tesla Inc. Strengths
A top employer company
Any business is as good as the way it employs. Tesla Inc. has been successful because of the way
it employs. It emerges that Tesla Inc. is emerging as an ideal organization for employees because
of its innovation drive and diversity culture. This makes it a place where job seekers would want
to work, hence, attracting fresh energy and talents.
Leading automotive company
Despite the issues the company face, the volume of sales of Tesla Inc. has increased, becoming
the leading car brand delivering close to 367,500 vehicles in 2019. Due to its technological drive
and innovation, the company has overcome exclusive automotive brands that include BMW and
Mercedes in the car industry.
Best-in-class electric cars
The company has topped in the race of electric cars, leaving behind many brands in the market.
In comparing of range, Tesla electric cars are proving to be leading in covering maximum
distances. In terms of range, the company electric cars are proving to be the best and occupy the
top positions. With Tesla Model S, this car will drive you furthest, covering close to 600
kilometers using a single battery charge.
Innovative company
Tesla Inc. has a higher rate of innovation than other brands in the market. This creates market
trust for Tesla Inc. and expects the company to create profitable and competitive products that
can lead to sustainable and substantial financial gains.
Tesla Inc. Weaknesses
Manufacturing complications
The company has a higher rate of innovation which poses the production risk factor and
mechanical complications. The company experiences continuous launch, production, and
manufacturing ramp delays when they are launching their new products that can create
challenges in the distribution process. For instance, the company experienced manufacturing
challenges when they wanted to launch Model X, resulting in distribution delays. The company
also faced significant challenges while producing the Model X battery assembly line at the new
site in Gigafactory 1.
Unable to meet demand might affect brand value
From the highly complicated procedures and experimenting, Tesla Inc. may experience
unbalanced demand and supply, unable to meet the requirements of production. The delivery rate
of the first quarter of the company was alarming. The company delivered 63,000 cars in the first
quarter of 2019, and this represented a 31% drop the previous quarter. Therefore, the drop in
supply can affect the demand for the products as the clients affect the products' brand value.
Lack of high volume production
Tesla Inc. It is the leading manufacture of emerging saving cars in the market, but the company
has failed to manufacture high volumes of automobiles. For instance, the company is already
facing challenges in producing Model 3 in high numbers because of the lack of space for
expansion at Gigafactory 1, management resources, and production cost.
Shortage of batteries
In an annual meeting of shareholders, admitted that there is low production of batteries leading to
the limited supply of batteries in the market. The shortage of batteries is the sales volume of the
company of energy storage systems and electric vehicles.
Tesla Inc. opportunities
Sales expansion in new markets
The most important opportunity for Tesla Inc. is the untapped Asian market unsaturated with
renewable energy and automotive markets. In the event that Tesla Inc. wants to expand its global
influence, the company still has the untapped market to venture in to increase its market presence
and financial stability.
Less expensive car
Tesla motors are expensive due to their reliance on technology and innovation that requires a
good investment to sustain such innovations. Recently, the company launched Model 3 that is
more affordable, just like Model S, with less range, fewer features, and power enabling the
company to have an opportunity to expands its target market.
Bringing battery manufacture technology in-house
The company's move to build its own battery cells will be a game-changer in the car industry.
The move will allow the company to increase its production rates while reducing the cost of
production.
Market confidence in Tesla
The stock market has indicated confidence in Tesla Inc. after experiencing two profitable
quarters. The stock price of Tesla doubled, enabling the company to have a sound financial
background.
Tesla Threats
Product liability claims
Though the company has high standards of production and premium quality assurance, Tesla Inc.
is still facing significant claims of product liability that the company fear can affect the financial
status of the company. Tesla company has introduced several autopilot vehicles, and not many of
these vehicles have not been successful during accidents. Tesla is facing many claims and
lawsuits attributed to the failure of technology, and if these claims continue, the company will
face a big problem financially.
Extensive competition
The company is facing stiff competition from alternative fuel vehicles such as fully electric cars
or plug-in hybrid and self-driving technology. Many car companies in the comfort and luxury
segment, such as Lexus, Audi, BMW, and Mercedes, are ready for stiff competition to lead the
market. Competitors are willing to use a low pricing-strategy and introduce environmental-
friendly vehicles to attract more customers. This poses a threat to Tesla Inc. because it thrives in
the innovation of unique cars and unaffordable and expensive for many individuals.
Product defects
Owing to their complex engineering, Tesla automobiles and other diversified products have
exhibited significant cases of flaws in many cases. The defective products indicate weaknesses in
the manufacturing and design and can affect the company image permanently.
Long-term confidence
The success of the company relies on its assurance for long-term sustainability because it
enables the company to maintain and sustain the morale and public image of the company. As in
the case of Tesla, the company has suffered from a loss of confidence with the segment of the
customers because of its unstable production conditions.
Disruption of supply due to shortage of materials
Tesla Inc. may face severe suspensions in the supply of production materials because of these
materials' increased prices. The company uses materials that have volatile prices, such as steel,
aluminum, nickel, lithium, cobalt, and copper. Due to the volatility of prices of these materials,
the company's manufacturing can be affected in the future.
High-risk factor
Tesla Inc. uses lithium-ion cells that are a highly explosive and reactive element and can increase
their products' risk factor. The company has faced cases where the cars have vented smoke and
caught fire which has affected the image of the company.
Marketing Objectives and Issues
Desire to dominate the car industry and solar generation and storage components market,
Tesla Inc. will adopt a unique marketing approach that will enable the company to meet its
objectives. The following are Tesla Inc.'s marketing plan to deal with the issues they face within
their operation.
Objective 1
Through the marketing plan, Tesla Inc. plans to generate demand for its BEV products and
increase its sales revenue. Through its innovation drive, the company plans for mass production
of less expensive and affordable vehicles that can increase the company's sales volume. Creating
demand for its products requires the company to design and manufacture unique BEVs that can
attract more customers.
Objective 2
Tesla Inc. also plans to plans to develop long-term product awareness and manage the company's
reputation. Achieving this objective requires the company to produce electric vehicles that will
transform the image of BEVs and create an impressive brand image. Therefore, through Model S
and Model X's introduction, the company homes to build a strong reputation and long-term brand
awareness.
Objective 3
The third objective of this marketing plan is to find ways to manage the existing client base and
develop impressive customer referrals and loyalty. As a company driven by technology, the
customers always expect the best from Tesla due to its high manufacturing standards. Relying on
technology will enable the company to develop unique products that can allow the company to
develop a client base and increase client loyalty and referrals
Objective 4
The fourth objective of this marketing plan of Tesla Inc. is to increase the customer input
throughout the product development procedures. Involving the customers in the development
process of the product enables the company to increase and maintain the customer base and, in
turn, maintain brand loyalty. This process will also allow the maintain its brand reputation
enabling the company to attract more customers.
Issues
Objective 1
The main issue with developing a market for its products is that the company may develop a
product that does not meet the customers' tastes and preferences. This may affect the company's
financial status and reputation of the company, which may take longer to build. This effect will
reduce the volume of sales and business, reducing the profitability margin of Tesla.
Objective 2
Maintaining brand loyalty and reputation requires the company to make it right during the
production process. Tesla must keep the customers informed and provide information efficiently
were needed to keep the reputation that Tesla has as the leading producer of electric vehicles in
the car industry.
Objective 3
Again managing the customer base and loyalty base can be challenging for many organizations.
In the case of Tesla, the company must ensure it has the newest technological advancement in
the market to come up with unique products in the market that clients can easily identify in this
market and be loyal to those brands.
Objective 4
Involving the customer input during the product development process may be a challenge
because the company may, in some instances may not the needed information they want. Lack of
adequate information on consumer behavior in the car industry may affect the product
development process because the company produces a product that does not meet customers'
needs and demands in the industry.
Marketing Strategy
Tesla Inc.'s business approach reflects the marketing strategy that is similar to that of
Apple's marketing model to innovations. This marketing approach began with the idea that new
technology is very expensive and only rich customers have the opportunity to adopt first. Tesla
Inc. began with targeting the first production of its electric vehicle, the Roadster, to first
‘adopters’ within the segment of sports cars so that they can optimize the use of technology
before the company began producing less expensive cars (Abdulsater et al., 2014). Through this
marketing approach, Tesla Inc. focuses on its marketing and production, emphasizing the Model
S, Model X, and Model 3, targeting the rich who are not afraid of spending. Achieving its
objective, the must focus on attracts the attention and minds of its key target market categories,
industry analysts, the press, and its devoted sales force.
Product/brand positioning
Positioning in marketing refers to the attempts by a ‘marketer’ to locate the unique sales
position of a product in the market. This means placing or arranging the product to have a clear,
attractive, and distinctive position in relation to the competing goods in the market in the targeted
group's minds. In the case of Tesla Inc. products, the image and position of the electric cars that
the company produces embody the features of being attractive, high-tech, environmentally
friendly, and reliable (Abdulsater et al., 2014). With these characteristics in mind, an effective
positioning statement can be along the lines of ‘Tesla electric vehicles represents an attractive,
environmentally, reliable, and high-tech transportation option for forward-thinking clients.’
Market segmentation
Market segmentation entails the division of potential clients into market segments who
share distinct behaviors and needs in the market. This process's primary purpose is to group the
prospects of buyers who share a higher degree of similarity and can be distinguished from other
groups of consumers. An organization can better address the needs of the consumers by grouping
the large heterogeneous market segment into smaller market segments. In the case of Tesla Inc.,
the company has identified three consumer market segments to adapt its production strategies
effectively (Hongyu, 2014). The first category is the high-end sports car market that targets a
small niche market for introducing the Tesla brand. The second category is the luxury vehicle
sedan market that targets the larger market with a highly competitive market segment for
broader-based client adoption. The last category is the mainstream vehicle consumer market that
targets mass production of vehicles and penetration of the market.
Product design strategy

Product design entails the functionality, feel, and look of the product with regard to
consumer demands. As the market becomes more competitive, effective product design can
provide a company an effective way to position and differentiate the company’s services and
products. In the case of Tesla Inc., the company will continue to produce unique products such as
Model X, Model 3, and Model S that have ground-breaking technology and design to enable
Tesla to continue position and differentiate its products in the latest product line (Hongyu, 2014).
For instance, the primary design of Tesla for the Model S was to develop a mid-sized sedan that
can seat up to seven people in a vehicle that is environmentally friendly, attractive, and
extremely functional. In addition to this, the vehicle would have a zero-emission ability.
Product pricing strategy
A company's pricing decisions need to be reflective and supportive of the specific
marketing strategies that the company will use. The pricing strategies must be aligned with the
positioning strategies and target market objectives. Therefore, for Tesla Motors, the company
can adopt premium prices for its premium brands. Being a company driven by technology, it
makes sense for Tesla Inc. to use high-end prices because new technologies are expensive
(Hoffman, 2015). This strategy will help Tesla to accommodate better the high unit cost or low
unit volume of a new technology model of marketing. Therefore, the premium branding of Tesla
can allow the company to sell its BEVs at affordable prices to many mainstream consumers.
Branding strategy
Branding for many organizations is a tool that marketers are using to differentiate goods
and services in a concrete manner. Companies must manage their global, local, and international
features of their brands effectively. This is vital for Tesla Inc., which understands the market
expansion into lucrative foreign markets. For the future operation of Tesla, the company needs to
find a way of evolving around the brand-savvy customers fast and develop a strong brand
identity. Therefore, Tesla must continue producing innovative products that are aligned with the
technology hub tactics (Hoffman, 2015). New technology hub strategy must be included in the
manufacture of battery packs, solar generation and storage components, and powertrain
components for the company to build a firm brand image.
Sales and services strategy
Tesla Inc. has a unique sales model where the company sells and markets its vehicles
directly contrary to the franchise's traditional sales model. The company sells its brands online
through the company's global-owned stores, telephone, and in-person at their headquarters.
Through this sales strategy, the company has improved its sales channel, similar to Apple's sales
model. Tesla Inc. stores are situated in premium outlets and highly visible metropolitan markets.
These stores also act as showrooms and are created in a way that they can inform potential
clients about the Tesla electric vehicles ((Toumi, 2018). The company also provides high-speed
internet, coffee bars, free snacks, and comfortable couches, enabling the company to attract the
attention and mind of the customer. The company also offers free-drive with the salespersons
who are highly trained and knowledgeable to give a unique buying experience.
Marketing communication plan
Achieving these marketing objectives, Tesla Inc. requires consistent marketing
communication that focused on all the communication media platforms. Therefore, Tesla must
develop a message derived from the positioning statement and is consistent, concise, and
frequently communicated to the consumers (Toumi, 2018). The message should be created to
educate the sales prospects, such as the importance of Tesla electric vehicles compared to other
electric vehicles or gasoline-fueled automobiles, and, lastly, encourage them to its stores for a
free test-drive of the product.
Advertising strategy
Tesla company acknowledges the significance of global advertising in the case of a new
technology product. The company has been using traditional advertisements such as product
placement on various media outlets and other websites. Increasing the sales volume requires
Tesla to emphasize advertising around conferences and ‘specialist events,’ an approach that
Apple uses to advertise its products. Tesla should also come up with a highly creative campaign
theme to advertise its products.
Public relations strategy
The primary objectives of public relations of Tesla include launching the BEVs product
with maximum media impact and ascertain the market as the leading producing of electric
vehicles. The second objective to reinforce the significance of electronic vehicles and assure the
market that they are available in the market. Lastly, clarify and reinforce Tesla Inc.'s product line
strategy in the market (Toumi, 2018). Therefore, the company should continue to manufacture
BEVs that are compliant with the federal government's laws and has a market range with the use
of a single charger. This is achievable through the use of significant use of social media
platforms and media platforms to gain the public's trust and confidence.
Sales promotion strategies

Sales promotion is the number of incentive types and strategies directed the consumers in
the market with a motive of short-term sales effects. Tesla's promotional efforts have been
directed towards displaying and demonstrating their products in events. These events include
public events and private events oriented towards sales promotion. Therefore, achieving its
objectives requires the company to partner with influential car magazines to support electric
vehicles' publication in the magazines. Tesla Inc. should also continue partnering with green and
clean energy non-profits campaigns to increase the awareness of the benefits of BEVs on the
environment.
Action Program
These programs are essential in increasing the sales volume and increase their market influence
in the global car industry. Tesla Inc. company plans to release Tesla Model Y between 2021 and
2022, and the following programs will be useful in penetrating the market.
2nd Quarter of 2021: Create truly memorable ads
As Tesla Inc. continues to adhere to a highly limited and selective advertising strategy, the ads
that the company is creating should be unique and highly themed to penetrate the minds of the
consumers. Therefore, during this quarter, Tesla Inc. will focus on developing unique and
memorable ads relating to Tesla Model Y. These ads will help the company to reinforce Tesla's
drive sales and brand.
3rd Quarter of 2021: Work with tastemakers
Tesla Inc. has and continues to develop an aggressive rollout of retail stores in ‘taste maker’ in
cosmopolitan areas. The company should also adopt a ‘PR-centric’ model or approach to getting
its products reviewed and take part in other strategies such as television shows and product
placement in motion visuals. Therefore, during this period the Tesla will work with tastemakers
to bring the expected Tesla Model Y to the attention of the consumers.
4th Quarter of 2021: Offer surprises
Efforts to keep product launches close to the chest are essential for a company to penetrate a
market and attract new interest for the new product. This kind of secrecy is crucial and can be
beneficial for Tesla Inc. because technology shrouded in secrecy normally generate significant
new interest and important activity of word-of-mouth. Therefore, during this quarter, the
company will operate in surprises in relation to the new product launch.
1st Quarter of 2022: Put on a show
Companies that are driven by technology often organize expensive events to launch their
products. During this period, Tesla will take the opportunity to organize attention-grabbing
events concerning the expected Model Y that is merit-worthy of its high-tech, environmentally
friendly, and attractiveness. This will help in increasing the awareness concerning the product.
Budgets
Tesla Inc. does not have a marketing department or a chief marketing officer within its
organizational structure. This is because Tesla Inc. has a $0 budget for advertising and uses other
means to market its products. Instead of investing in a paid advertisement, the company has
invested in earned media through innovative car design, public stunts, and word-of-mouth buzz.
Through these means, the company has managed to generate consistency in consumer demand
and press coverage (Bruijl, 2017). Tesla Inc. will continue to use genius by cultivating press
coverage through adopting unique methods to piggyback off important events such as the
SpaceX Falcon launch and continue to build an extreme expectation in the lead-up to
announcements of the company. Tesla Inc. also uses their brand's design to act as the
advertisement of the brand when they appear around the world. The company will continue to
invest in referral programs for the Tesla brand owners with exclusive benefits. This word-of-
mouth network approach enables the company to attract more clients further. Therefore, Tesla
Inc. will continue to use the earned media in penetrating the market rather than a paid
advertisement.
Controls
Tesla Inc. should continue to monitor and maintain the uniqueness and quality of its
products. The company will also have to maintain a strong reputation to attract and acquire more
clients to buy their brands. The company will also continue to diversify its products to increase
its sales volume and profitability margin (Bruijl, 2017). This requires Tesla Inc. to continue
relying on technology to innovate new products that will increase its influence on the global
market. Maintaining impressive brand awareness is essential for Tesla to maintain the customer
base and create brand loyalty and referrals.
Conclusions
From this marking plan, Tesla Inc. should continue to focus on technology to develop
unique brand that allow the company to meet its objectives. Focusing on the brand awareness
and optimization of the cost structure is essential for Tesla to increase its market influence. Being
a technology driven, the company must rely on the innovation to develop product that will create
its own market owing that the company has no budget on paid advertisement. Diversification of
the products is also essential for the success of the company due to the increase in sales revenue
and business volume.

References
Abdulsater, A., Balasubramanian, A., Wang, B., Madani, F., Mansour, M., & Talla, R. (2014).
Technology Road Map for Tesla Motors Sedan EV. In Planning and Roadmapping
Technological Innovations (pp. 215-238). Springer, Cham.
Bruijl, G. H. T. (2017). Tesla Motors, Inc.: Driving Digital Transformation and the Digital
Ecosystem. Inc.: Driving Digital Transformation and the Digital Ecosystem (October 14,
2017).
Hoffman, A. N. (2015). Tesla Motors, Inc. Strategic Management and Business Policy.
Hongyu, M. (2014). On High-tech Product Design Path: Taking Tesla Motors as an Example.
Design Research.
Jiménez Falcón, A. (2015). Plan de Marketing de la empresa TESLA MOTORS.
Park, J., Rast, J., MacDoughall, T., Nitti, B., Sinton, D., Geissler, A., & Roseli, K. L. (2014).
Marketing Plan for Tesla Motors’ Model S.

Perkins, G., & Murmann, J. P. (2018). What does the success of Tesla mean for the future
dynamics in the global automobile sector?. Management and Organization Review,
14(3), 471-480.
Thomas, V. J., & Maine, E. (2019). Market entry strategies for electric vehicle start-ups in the
automotive industry–Lessons from Tesla Motors. Journal of Cleaner Production, 235,
653-663.
Toumi, I. (2018). Exploring the success of tesla, Inc. ББК 65.290-2 я 73 П 78, 319.
Van den Steen, E. (2015). Tesla Motors. Harvard Business School Publishing.
Voigt, K. I., Buliga, O., & Michl, K. (2017). Driving against the tide: The case of Tesla Motors.
In Business Model Pioneers (pp. 187-198). Springer, Cham.


TESLA

Uploaded by

Copyright:

Available Formats

TESLA

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

TESLA

Uploaded by

Copyright:

Available Formats

Running head: TESLA MOTORS MARKETING PLAN 1

Tesla Motors Marketing Plan

manufacture of automobiles, leasing of electronic automobiles, sales of automobiles, and those

Tilburg, Lathrop, California. And The Netherlands.

Tesla Motors Mission and Vision

electric automobiles to the global market as soon as possible.

Fiscal Year 2020 2019 2018 2017 2016

Net 14,294,000 14,863,000 13,683,000 11, 824,000 11,262,300

Gross 10,742,000 11,476,000 10,839,000 9,387,000 9,081,200

Net 696,000 1,794,000 1,117,000 1,256,000 1,120,800

Cost of 8,893,000 9,209,000 8,904,000 7,788,000 7,620,500

Stock price 188.68 183.11 142.69 95.98 91.02

Source: Tesla Motors financial report 2020

Tesla Motors Financial Ratios

Fiscal year 2020 2019 2018 2017 2016

Return on 1.653 -2.258 -3.574 -7.8205 -3.41

Asset 0.6047 0.7164 0.7216 0.4104 0.3089

Current 1.8751 1.1346 0.8313 0.8561 1.0743

Inventory 6.0732 5.7739 5.5956 4.2129 2.6123

because of the net loss.

Current Marketing Situation

seconds without a drop of oil.”

Target Market Review

Tesla Inc. Target Profile

Income >$100,000 83%

18>44 years 33%

45>64 years 50%

65 years and above 17%

and Edison International.

manufacturing BEVs such as Model S Sedan and Tesla Blue Star.

Tesla Model S Sedan

Model S Sedan Product Anatomy

seconds without any drop of gasoline.

charging services and installation.

class market target consumer segment.

Tesla Energy Group

New Product Development

manufacture electric-related components.

sedan car markets and high-end sports cars.

The competitive advantage of Tesla Inc.

swaps, service stations, and networks of superchargers.

Diversifying its business

volume of businesses and sales.

maintaining contact and interaction with customers.

Tesla Inc. SWOT Analysis

external forces that the companies face.

Tesla Inc. Strengths

A top employer company

to work, hence, attracting fresh energy and talents.

Leading automotive company

Mercedes in the car industry.

Best-in-class electric cars

kilometers using a single battery charge.

can lead to sustainable and substantial financial gains.

Tesla Inc. Weaknesses

mechanical complications. The company experiences continuous launch, production, and

Unable to meet demand might affect brand value

Lack of high volume production

expansion at Gigafactory 1, management resources, and production cost.

company of energy storage systems and electric vehicles.