Marketing Strategy of Tesla – Tesla Marketing Strategy: Tesla, Inc. which was previously called Tesla Motors was founded in 2003, and was only profitable until 2013. It is located in Palo the city of Alto in California with a focus on manufacturing solar panels and lithium-ion battery energy as well as electric vehicles. Elon Musk, who runs the business as its CEO, sees Tesla as an independent technology company as well as an independent automaker, which intends to make electric vehicles affordable for consumers of all ages. Read Article: What Is Marketing Strategy? Definition
Did You Know About Tesla?
Company : Tesla
CEO: Elon Musk
Founder: Elon Musk, Martin Eberhard, JB Straubel, Marc Tarpenning, Ian Wrigh
Year founded: July 1, 2003
Headquarters: San Carlos, CA
Annual Revenue : US$31.5 billion
Profit | Net income : US$721 million
Products & Services: Tesla builds not only all-electric vehicles but also infinitely scalable clean energy generation and storage products.
Competitors: General Motors Co.(GM) | Ford Motors Co.(F) | Li Auto Inc. (LI) | Nio Inc. (NIO) | Nikola Corp. (NKLA) | Canoo Inc. (GOEV) | Volkswagen | Nissan | Toyota Motor Corporation | BMW. | Honda. | Audi. | Mercedes Benz
Tesla Fun Fact : Serbian-American engineer and physicist Nikola Tesla (1856-1943) made dozens of breakthroughs in the production, transmission and application of electric power. He invented the first alternating current (AC) motor and developed AC generation and transmission technology.
Segmentation, targeting, positioning in the Marketing Strategy of Tesla
When it came to segmenting in the marketplace, Tesla did not ask what segment is the most energy-conscious, but what segment allowed the company to create models that are long-term and ingenuous. The company didn’t go with the smaller segment of cars. The choice was the one with lower volumes and the price-sensitive performing-car segment, which allowed them to develop a brand identity as well as establish the highest prices and generate large gross margins per unit targeting the wealthy and wealthy who can afford to pay more than their cars.
In 2015 and since then, Tesla has been selling an electric luxury SUV that has performed fairly well in the marketplace and has sold a record of 100,000 vehicles in 2017. Tesla’s distinctive position in the automobile market is among its greatest advantages. Tesla does not just sell cars but also offers tech. The positioning statement for the company is “the only stylish car that can go from 0 to 100 in 3 seconds without a drop of oil”.
Mission and Vision of Tesla
The vision and mission statement of Tesla reflects the company’s aim for dominance in the global electric vehicles and battery market.
Tesla’s mission statement
“to accelerate the world’s transition to sustainable energy”.
It believes that the faster the world stops relying on fossil fuels and moves towards a zero-emission future, the better it will be for the world.
The vision statement
“to create the most compelling car company of the 21st century by driving the world’s transition to electric vehicles”.
Tesla wants to accelerate the advent of sustainable transport by making products accessible and affordable to more and more people ultimately leading to clean transport and clean energy production. Tesla focuses on bringing compelling mass-market electric cars to market as soon as possible.
Competitive advantage in the Marketing Strategy of Tesla
Driven by Technology
Beyond an automaker, Tesla is a technology company that is developing technology platforms. The betting upon Tesla tech is gambling on the future of technologies. The company does not only sell cars but also has built the infrastructure needed to facilitate the operation of these automobiles. It has constructed the supercharger network as well as battery swap stations along with service stations.
Tesla is poised to provide fully autonomous driving capabilities earlier than the majority of car manufacturers by taking advantage of millions of kilometers of data on driving that Tesla has been collecting.
This could be thought of as an intangible advantage of the business.
Tesla’s Roadster transformed the perception of electronic vehicles from tiny slow ones, to stunningly fast cars of desire. It offered a speed of the range of 0-60 miles per hour that could be faster than the top automobiles. Tesla later produced the more affordable Model S sedan that ended up winning almost every major auto award. With its reputation for excellence, it has helped create an amazing image of its brand.
Expanding its operations
Tesla appears to be diversifying its operations and stepping into the world of solar roofing tiles, which can be combined with the market of rechargeable lithium-ion batteries that offer homes the ability to store solar-generated energy.
BCG Matrix in the Marketing Strategy of Tesla
Model 3 is the combination of style, design as well as convenience, and security. It is priced as the most affordable model ever developed. Its official debut and the delivery date for its first thirty cars are expected to occur on the 28th of July, 2018. This means that Model 3 belongs to the category of question marks in BCG’s matrix. BCG matrix.
Model S is a beautiful model that comes with convenience, functionality, and security, along with elegance and style. It’s been claimed that it has beaten the competition of luxury cars within the USA. Of the 10 largest automobiles it was the Tesla Model S that gobbled up the largest share of 34% sales. This puts it in the top category on the BCG Matrix.
Model X is a long-range SUV. It features unique designs and falcon wings which create a distinctive and luxurious feel and look. Tesla is believed to be reversing their production plan for Model 3. Model 3. The Model 3’s Model X and Model S have been booming, however, Tesla has a problem in Model 3 production. This places Tesla’s Model 3 in the Dog category of the BCG matrix.
The ZEV credits or Zero Emission Vehicle credit may be part of the company’s cash cow, Tesla. It is required by automakers to ensure that a certain percentage of their products produce no greenhouse emissions. Tesla is the only manufacturer of cars that run on batteries and emit zero emissions. It generally has surplus selling. This is why, when it sold this, Tesla earned 100 million in revenue in the year 2017. Its Profit margin for this is 95 percent. Therefore, ZEV credits are the cash cow. ZEV credits represent the money cow.
Distribution strategy in the Marketing Strategy of Tesla
Tesla generally uses a courses sales model, which is paired with stores owned by the company to sell its vehicles. It doesn’t rely on the traditional dealer network. The company’s distribution is not without its issues. A large amount of money is put into the channel for distribution. distribution channel.
Other companies like Ford as well as General Motors collaborate with the third party to market their vehicles. For Tesla brick and mortar stores, it acts as a means to market the concept of EV and also. Selling the cars courses has cut down the selling costs. The physical stores serve as showrooms for Tesla. There are around 17 Tesla locations around the world to sell its cars, which according to Tesla helps in communicating with potential buyers.
Brand equity in the Marketing Strategy of Tesla
Tesla owns a market value of 60 billion dollars when it has failed repeatedly to meet its production objectives and is spending billions of dollars each year.
Tesla as a brand is much more than an auto manufacturer It is a vision for the next generation. The brand’s face for Tesla is the CEO, Elon Musk, who is known as a businessman and a well-known influencer. A reason behind why it’s impossible to distinguish Elon Musk’s brand from Tesla is due to how responsive he is to Tesla customers who contact him and his presence is seen on social media.
Tesla has proven time and again that they care about the experience of their customers which has helped shape public perception of the company’s image. The power of word-of-mouth is a major driving force behind the company’s growth, with many loyal supporters who don’t have Tesla but are adamant about the concept and the vision of Tesla.
Market analysis in the Marketing Strategy of Tesla
The market for electric vehicles in the world is expected to expand by a compound annual rate of 21.4 percent between the years 2018 and 2026 as per ReportBuyer.
Tesla remains the king of the EV market. In the USA, Tesla sold three of the nation’s top five-selling electric vehicles during the first four months of 2018. Tesla’s competitions include Toyota’s Prius Prime plug-in hybrid, and General Motors’ Chevy Volt. Both do not have the same brand appeal as Tesla However, Tesla is struggling with production bottlenecks.
Based on McKinsey Research China has gained ground in EV production. The country also has the biggest fleet of EVs in the world and has been able to surpass the US markets for the very first time. China is now responsible for more than half of all EVs sold in the world. Although Tesla isn’t in a position to meet its production targets, it is expected to be responsible for 605 percent of the sales of electric vehicles within the US.
Customer analysis in the Marketing Strategy of Tesla
The majority of customers for the brand are business professionals and entrepreneurs who are green, tech-savvy, and rich. Most of the customers are males who are looking for luxurious cars. According to Investopedia the profile of the buyer is around 83.9 percent male and 16.1 percent female. 77% of buyers earn more than $100,000. Based on the registration statistics for Model X, it tells that young and wealthy buyers are choosing Tesla’s SUV crossover. It is expected that Model X, will have more of a market share because of its affordability.
Promotional strategy in the Marketing Strategy of Tesla
Tesla is a huge fan of social media, and the CEO is the spokesperson for the brand. In social media, when compared with other auto giants, Tesla is at the top of the list, surpassing Volkswagen, Ford, and Toyota. Tesla does not require advertising to make sales. Word of mouth and free media coverage is enough to create the demand for the company’s brand. Tesla is believed to have created a solid brand image that needs less advertising and promotion. marketing. Tesla’s website is an effective sales channel and marketing. It has also utilized Twitter to connect to a huge base of followers and fans.