Tiểu luận marketing strategy of tesla

Description of the target market, market positioning of Tesla product/productline and 4Ps strategies...61.The target market of Tesla...62.The market positioning of Tesla...73.What is Mar

HO CHI MINH UNIVERSITY OF BANKING

PROJECT:

MARKETING STRATEGY OF TESLA

Instructor : Nguyen Thi Thanh Nhan

Class : MAG309_231_TA_L25

Nguyen Thi Tam An : 050609210014

Nguyen Thi Hong Tuoi : 050609212313

Dinh Bao Anh : 050609210052

Pham Thi Kim Thao : 050609212196

Nguyen Thi Thao Ngan : 050609212059

Nguyen Vu Tam : 050609211266

Nguyen Thu Thao : 050609212195

TABLE OF CONTENT

I Overview of Tesla Company 4

1 Introduction to Tesla Company 4

2 Tesla’s core value 5

3 Tesla’s vision and mission 5

II Description of the target market, market positioning of Tesla (product/product line) and 4Ps strategies 6

1 The target market of Tesla 6

2 The market positioning of Tesla 7

3 What is Marketing Mix? Marketing mix of Tesla (7Ps of Tesla) 8

3.1 What is Marketing Mix? 8

3.2 Product Strategy of Tesla 9

3.3 Price Strategy of Tesla 10

3.3.1 Premium pricing 10

3.3.2 Value-Based Pricing 10

3.3.3 Dynamic Pricing 10

3.4 Place Strategy of Tesla 11

3.4.1 Direct Sales Model 11

3.4.2 Company-Owned Stores and Showrooms 11

3.4.3 Online Sales Platform 11

3.4.4 Service Centers and Mobile Service 11

3.7 Process Strategy of Tesla 12

IV Evaluation of Marketing management activities: advantages and

disadvantages 13

4.1 Advantages 13

4.2 Disadvantages 14

V Propose solutions to improve marketing management activities of that enterprise (product/product line) 14

5.2 Leverage influencer marketing: 15

5.3 Improve customer engagement through social media: 15

5.4 Expand product offerings: 15

5.5 Enhance the customer experience: 15

REFERENCES 16

1 Introduction to Tesla Company

The U.S car market is saturated with established automakers like Ford, Honda, and Chevrolet But one company stands out from the mix: electric car maker Tesla Motors Tesla’s release positioned it as one of the few successful independent automakers and a pioneer in the electric car market

Tesla Inc is an inseparable brand of Elon Musk, but a little-known fact is that he is not the founder of Tesla Tesla was founded by Martin Eberhard and Marc Tarpenning

on July 1, 2003 in San Carlos, California, USA The company's previous name was Tesla Motors Inc before being changed in February 2017 Tesla not only makes all-electric vehicles, but also makes infinitely scalable clean energy generation and storage products such as Tesla batteries and panels, solar roof The corporation's headquarters

is located in Palo Alto, California, US In addition, Tesla's factories are located in Fremont, California and Gigafactory in Shanghai

The Tesla logo has a T-shaped design A curious Twitter user asked Musk to explain the futuristic, curved Tesla 'T' logo, which Musk said intended to represent a “cross section of an electric motor”

According to US news, as of October 10, Tesla is the most valuable auto company in the world in 2023 by market capitalization with more than $800 billion

doesn't mean it's the only one The structure of the automobile industry is a concentrated industry, so it is a highly competitive industry There are a multitude of automakers, both established and emerging, that are developing exciting electric vehicles and technologies Some large companies include: Nissan, Toyota, General Motors, Nio, Ford…

2 Tesla’s core value

"Doing the best, taking chances, respect, continuous learning, and environmental responsibility" are among Tesla's basic principles Tesla uses these core values as the guiding principles for all partners' and employees' general behavioral patterns

The focus on performance is a core principle that has propelled Tesla's technological advancements The company also fosters a culture of encouraging its employees to take well-considered risks in pursuit of innovation Furthermore, Tesla's remarkable success can be attributed in significant part to the culture of respect that prevails among all stakeholders interacting with the company This supportive environment enhances the collective learning of all involved, resulting in outcomes that align with Tesla's commitment to environmental protection principles

3 Tesla’s vision and mission

Tesla’s vision statement of “to create the most compelling car company of the 21st century by driving the world’s transition to electric vehicles” is an ambitious one and implies that Tesla firmly believes in its ability to become a major player in the automotive industry The company is confident about its products and believes that it can transition from being merely an automobile manufacturer to becoming a full-fledged mobility solutions provider for people who want sustainable and efficient transportation options:

leading other manufacturers into understanding the concept of electric-powered vehicles and appreciating the benefits green energy has in the 21st century As a result, Tesla focusses all its resources and creativity into making this a reality

Transition to electric vehicles Tesla has a global agenda of influencing the whole world to embrace electric cars For instance, Tesla has opened various production plants in various global regions With this approach, the company continues to influence other players to recognize the place of renewable and green energy in the modern era as well

Tesla’s mission statement was “to accelerate the world’s transition to sustainable transport.” However, in mid-2016, under Elon Musk’s leadership, the company changed the corporate division “to accelerate the world’s transition to sustainable energy.” This new statement indicates a significant shift in the company’s business, to capitalize on market opportunities for renewable energy In some ways, the new corporate goal acknowledges the company's batteries and related energy storage technologies' value in areas other than the electric car market

II Description of the target market, market positioning of Tesla (product/product line) and 4Ps strategies

1 The target market of Tesla

Tesla's Target Market: Tesla has excelled in the electric vehicle market,

particularly in the luxury segment Its primary focus lies within eco-conscious consumers seeking innovative, high-performance, environmentally friendly cars

Tesla's targeting segmentation approach includes behavioral and psychographic segmentation It is aimed at dedicated and aspiring middle and upper-class customers who want and are looking for prestige, the appearance of being environmentally friendly, and the long-term cost-effectiveness of automobiles Because Tesla Inc.'s

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strategic goal is to capture the mass market, the major target markets should be sectors with characteristics that are comparable to those of mass markets And purchasers who prefer automobiles that get them from point A to point B in a cost-effective and environmentally responsible manner without requiring other specialized attributes such

as comfort or beauty

Other consumer groups inside their target market acted and valued things differently from the group above, according to their marketing segmentation and targeting technique They were dubbed "fad users" since they would quickly follow a trendy trend or connect with stardom

The typical customers of the brand today are business executives and entrepreneurs who can help position the company as a luxury, authoritative business Affluent individuals who want to position themselves as tech-savvy and eco-friendly are drawn

to the company’s brand

According to studies into the Tesla target market, most of the company’s customers are males (83.9% male and 16.1% female) They typically have an income of more than $100,000 too

However, solutions like the Model X (a crossover SUV) aim to attract a wider range

of customers due to the affordability factor This indicates Tesla is planning on expanding its target audience

2 The market positioning of Tesla

Tesla’s brand positioning statement focuses on two core values for the company: sustainability and people Tesla emphasizes innovation, sustainability, and cutting-edge technology It focuses on delivering premium, environmentally friendly electric vehicles that redefine the automotive industry

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marketing management 100% (1)

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“We’re building a world powered by solar energy, running on batteries, and transported

by electric vehicles Explore the most recent impact of our products, people, and supply chain We design sustainable systems that are massively scalable resulting in the greatest environmental benefit possible.”

Elon Musk and Tesla Motors have busted the myth that electric cars have to be slow cars with ugly designs Furthermore, they have proven that electric cars can look extremely different and sophisticated At a time when there is still no notable competition in the electric sports car market and when car manufacturers still only focus on gasoline cars, Tesla accidentally succeeded quickly and became a famous car brand with the highest capitalization on the market, despite being "born late"

Tesla brand in the field of electric vehicles By positioning its products as a combination of advanced technology, high performance, and positive environmental impact, Tesla has created a unique position in the auto industry This brand is not simply an electric vehicle manufacturer, but a symbol of pioneering and breakthrough car technology Tesla's product positioning has attracted not only those interested in electric vehicles but also those who want to experience cutting-edge technology and environmental protection

3 What is Marketing Mix? Marketing mix of Tesla (7Ps of Tesla)

3.1 What is Marketing Mix?

The marketing mix refers to the set of actions, or tactics, that a company uses to promote its brand or product in the market

Marketing mix is inherently classified according to the 4P model which includes: Product (product), Price (price), Place (distribution), and Promotion (promotion) specifically used in commodity marketing activities However, over time this model was developed into 7Ps marketing according to the complexity and

to help businesses' products/services be promoted strongly

The 7Ps of marketing include essential strategic elements used to promote a brand, specifically: Product, Price, Place, Promotion, People, Process, and Physical evidence Tesla's marketing mix includes the following contents

3.2 Product Strategy of Tesla

Tesla’s product strategy is central to its success Tesla produces high-quality electric vehicles that are both stylish and sustainable It also produces solar energy for both commercial and residential uses (Tesla, 2023)

Tesla’s product portfolio includes the Model S, Model 3, Model X, and Model

Y Each one's motor can go from 0 to 60 mph in 3 seconds Each has eco-friendly features This brand is using solar-powered innovation to improve its products and performance Each of these vehicles has unique features that cater to different customer preferences In addition, its Roadster, Semi, and Cybertruck are likely to revolutionize the future of transportation

Tesla’s vehicles stand out for their innovative features The autopilot system, over-the-air updates, and high safety ratings are just a few examples of the innovation Its commitment to innovation is a key differentiator in the market, setting it apart from other automobile manufacturers

Beyond vehicles, Tesla is also making waves in the clean energy sector with its solar energy products and power storage solutions These products align with the company’s mission of promoting sustainable energy and further differentiate the brand

in the market

they face with their cars and the technical support they receive from the company This

is clear from the reviews available on Trustpilot (Trustpilot, 2023)

Tesla’s product strategy in its marketing mix focuses on innovation, performance, and sustainability, setting it apart from competitors and creating a unique brand identity By continuously pushing the boundaries of what electric vehicles and clean energy products can achieve, Tesla aims to accelerate the world’s transition to sustainable energy sources

3.3 Price Strategy of Tesla

3.3.1 Premium pricing

Tesla’s vehicles were positioned as premium and high-performance electric vehicles, particularly the early models (Model S and Model X) These models were priced significantly higher than the average car, reflecting their unique features, cutting-edge technology, and luxury status This premium pricing strategy allowed Tesla to establish its brand as a leader in the electric vehicle market and gain a competitive edge over traditional automakers

3.3.2 Value-Based Pricing

Tesla’s pricing strategy also considers the value proposition offered to customers The company’s vehicles have numerous features that justify the price points, such as long-range capabilities, impressive performance, advanced safety features, and cutting-edge technology like the Autopilot system and over-the-air software updates Additionally, Tesla’s clean energy products, like solar panels and energy storage solutions, provide customers with long-term savings on energy costs, further justifying their price tags

3.3.3 Dynamic Pricing

Tesla has employed a dynamic pricing approach, adjusting prices based on product demand, manufacturing costs, and exchange rates Over the years, Tesla has made several price changes to its vehicle lineup, sometimes increasing prices due to rising production costs or lowering them to reflect improvements in manufacturing efficiency

3.4 Place Strategy of Tesla

3.4.1 Direct Sales Model

Unlike most automakers that rely on a network of independent dealerships, Tesla uses a direct sales model, selling vehicles directly to customers through its website and company-owned stores This approach allows Tesla to control the entire customer experience, from marketing and sales to after-sales service It also eliminates the need for middlemen, reducing costs and enabling better communication with customers

3.4.2 Company-Owned Stores and Showrooms

Tesla operates a network of stores and showrooms in strategic locations, such as shopping malls and city centers These stores serve as retail outlets and educational centers, where customers can learn about electric vehicles, test drive Tesla cars, and place orders This retail approach provides a unique buying experience and helps increase brand awareness and customer engagement

3.4.3 Online Sales Platform

Tesla has embraced e-commerce, allowing customers to customize and order vehicles directly through its website This online sales platform makes the purchasing process more convenient and streamlined for customers while also reducing overhead costs associated with traditional dealerships