Tesla Motors: Business Strategy and Market Positioning Analysis, Assignments of Marketing

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PRINCIPLES OF MARKETING

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1. Introduction American producer of electric cars, Tesla Motors. Established in 2003, it was nicknamed after Serbian American inventor Nikola Tesla, by the American entrepreneurs Martin Eberhard and Marc Tarpenning. So development of an electric sports automobile was created by Tesla Motors. Tesla's CEO was Eberhard and the Chief Financial Officer of Tarpenning (CFO). Financing for the firm comes from a number of sources, namely the co-founder of PayPal Elon Musk which, from 2004 onwards, gave over $30 million to the firm and acted as chairman. Tesla's objective is to speed up the world's sustainable energy transition. Tesla was formed in 2003 by an engineering group which intended to demonstrate that electric vehicles cannot be compromised, and that electric vehicles may be faster and more fun to drive than gasoline automobiles. The latest product being unleashed is the Tesla driverless bus which is a lightweight battery all-electric bus, which Tesla, Inc. has unveiled. There have been three versions revealed which, depending on the model, have an estimated EPA span of 400– kilometers and an estimated 2.9–6.5 seconds between 0–100km (0–62miles).This bus supports full self drive functionality with 62 seat capacity.Can hold a charge for 24 hours and charge the next day.This new product is the most innovative product we have. The main purpose of this report to have the knowhow on the principles needed in marketing. (Gregersen & Schreiber, 2018) 2. Product background In 2008 Tesla Motors delivered its first vehicle, the totally electric Roadster. In organization tests, it accomplished 245 miles (394 km) on a solitary charge, a reach remarkable for a creation electric vehicle. Extra tests showed that its exhibition was similar to that of numerous gas fueled games vehicles: the Roadster could speed up from 0 to 60 miles (96 km) each hour in under 4 seconds and could arrive at a maximum velocity of 125 miles (200 km) each hour. The lightweight vehicle body was made of carbon fiber. The Roadster created no tailpipe discharges, as it didn't utilize an interior ignition motor. Tesla Motors tracked down that the vehicle accomplished effectiveness evaluations that were identical to a fuel mileage of 135 miles for every gallon (57 km for each liter). The vehicle's electric engine was fueled by lithium-particle cells—regularly utilized in PC—that could be re-energized from a standard power plug.

heritage producers, for example, Ford, Volkswagen, and General Motors just as new participants that incorporate China-based organizations including NIO and XPeng. The car business is moving towards electric vehicles (EV) at a hysterical speed. The quantity of organizations entering this profoundly troublesome area keeps on acquiring force in 2021 and EV stocks were a portion of the top-performing organizations in 2020. Over the previous decade, vehicle producers, for example, Tesla have figured out how to expand the quantity of miles an auto can run on a solitary charge and the quantity of charging stations, just as lower fabricating costs driven by economies of scale. Tesla is the main EV maker on the planet and the organization has figured out how to expand yearly deals from just $400 million of every 2012 to $31.5 billion out of 2020. The organization finished 2020 with a piece of the pie of 16% in the EV fragment. Nonetheless, there is a decent possibility that inheritance car producers are currently hoping to enter this high-development market given the numerous common tailwinds and a quickly extending addressable market which may affect Tesla's administrative role soon.

4. Macroanalysis PESTEL Analysis is an essential structure used to assess the outside climate of a business by separating the chances and dangers into Political, Economic, Social, Technological, Environmental, and Legal elements. (Kissinger, 2019) PESTEL Analysis can be a powerful structure to use in Corporate Strategy Planning and for recognizing the upsides and downsides of a Business Strategy. This system is an augmentation of the PEST key structure, one that incorporates extra evaluation of the Environmental and Legal elements that can affect a business. Beneath we separate the vital things of every one of the 6 Factors of the PESTEL structure (Political, Economic, Social, Technological, Environmental, and Legal). Focuses got from PESTEL Analysis can be consolidated into other key structures, for example, SWOT Analysis and Porter's 5 Forces, where important. Tesla, Inc. has the chance to reinforce its monetary presentation through impetuses from governments. This outside factor straightforwardly relates with the limited fossil fuel byproducts of the organization's tasks and items. Moreover, this PESTEL/PESTLE examination discovers that extending international alliances open freedoms for the organization to grow its activities

universally. Then again, the political steadiness of significant business sectors makes the distant or full scale climate good for Tesla's conventional serious procedure and concentrated development systems, which incorporate market entrance. In this piece of the PESTEL/PESTLE examination of Tesla, political outer elements present freedoms for developing the auto business. political economic socBothial techological legal environmnetal Political stability Currency exchange rates Increase social staus Manage the marketplace's competitive edge. Direct sales is affected Build a strong brand image Trade agreements made internationally Decreasing cost of battery Less expensive in regard to maintainence Each technology is outdated Patent laws and regulations on energy use. Energy efficiency The far off or full scale climate of the worldwide business is dependent upon the impacts of natural conditions canvassed in this piece of the PESTEL/PESTLE Analysis of Tesla, Inc. For instance, natural patterns decide the accessibility of materials utilized in the organization's creation measures. For this situation, the accompanying environmental outer variables influence Tesla's market: Environmental change (opportunity) Extending natural projects (opportunity) Rising principles on garbage removal (opportunity) This PESTEL/PESTLE examination thinks about biological components as critical powers on Tesla, Inc's. industry climate. For instance, the organization has freedoms to advance its electric

Segmentation allows marketers to be time, money and other resources more efficient. Market segmentation enables organizations to get to know their clients. You obtain a better grasp of the demands of the customers and hence create customer campaigns most likely to buy items. segmentation of the market Tesla motor’s market is the market for electronic communications which is categorized by variables like geography, population, economics, psychology and behaviour. 5.2 Targeting Target marketing consists of dividing the total market into several parts and designing marketing strategies for each group to grow market share correspondingly. Tesla Motors is focused on men (83.9%) and managers. Most of them are between 45 and 64 years old. 77.3 percent are well-off and in the top-middle class and earn above $100,000. (LeBeau, 2013). They're cheaper, considering TM vehicles to be a prestige and an integral part of their lifestyle (KPMG, 2014) and concentrating on high-end luxury automobiles that are quick, safe and environmentally friendly. Also vital is outstanding service, performance and brand reputation (Tesla Motors, 2014). 5.3 Differentiation Product differentiation is essentially a marketing approach to urge the consumer, over a crowded field of rivals, to pick one brand or product. It finds the features which distinguish one product from other comparable items and uses them to promote customer choices. (ValensPoint, 2015) The broad difference is Tesla's generic competitive approach. It builds on the competitive advantage of developing items that distinguish the company from other businesses in the industry. Tesla initially employed distinctiveness as their generic competitive advantage approach. 5.4 Positioning

Market positioning refers to the act of identifying a brand or product to ensure that the customer perceives the brand or product in a specific way. For instance, a vehicle manufacturer might portray itself as an emblem of the luxury. While a battery manufacturer can place the most trustworthy and durable one in its batteries. (Wilkinson, 2019)

6. Marketing mix 6.1 Product According to the product definition of the marketing mix, a commodity is something on the market to meet human needs and wishes. Mixing products is not the name of the commodities tangible. It generally covers actual items, humans, places, organizations and even concepts or combinations. (ValensPoint, 2015)Tesla car have evolved in 3 levels model s ,model 3 and its latest modle x. Step 3: Market growth-Tesla electric automobiles are a wonderful illustration of growth (EV). As many large car businesses continue to develop and refine their goods on the market, Tesla dominates the rising automotive sector. Tesla is also a big participant. 6.2 Place Place refers to where your product or service will be sold. (Beltis, n.d.)This includes actual sites for tangible things like your own shop or a retailer where your item is being sold back. Contrary to other automobile manufacturers, Tesla sells directly to consumers through franchise dealerships. A global network of exhibition halls and galleries has been built, especially in urban

6.4 Promotion Marketing refers to the sort of marketing communications used to enlighten target audiences, most of the time persuasive in nature, about the relative benefits of the product, service, brand or problem. Promoting is also one of the promotions or promotional schemes features. (“What is Promotion in the Marketing Mix?,” 2019) Promotion plays an essential function in the marketing mix. Promotions often focus on how to attract and drive consumers to behave or to buy on ecommerce or other channels. Tesla's marketing strategy therefore runs counter to TV advertising development trends and consumer marketing of its products. Rather, Tesla concentrates on word-of-the-mouth advertising and references. In essence, Tesla is not directly marketing to its consumers. Conclusion Tesla bus will be the first new electric bus that has never existed before. It has traits and abilities that we are extremely confident about including its uniqueness. This will be an eye opener to the world about using sustainable energy. Although it is always difficult for a new product to be embraced , we are so confident the tesla bus will accepted by everyone. As our motto says “ride free” REFERENCES analyst, F. B. F. L. K. Z. is an investment, Portfolios, F. W. with 15+ Y. of E. M., & Zucchi, conducting equity research L. about our editorial policies K. (n.d.). What Makes Tesla’s Business Model Different? Retrieved June 15, 2021, from Investopedia website: https://www.investopedia.com/articles/active-trading/072115/what-makes-teslas- business-model-different.asp#:~:text=Direct%20Sales Corporate Finance Institute. (2019). PESTEL Analysis - Corporate Finance Institute. Retrieved from Corporate Finance Institute website: https://corporatefinanceinstitute.com/resources/knowledge/strategy/pestel-analysis/ Gregersen, E., & Schreiber, B. A. (2018). Tesla, Inc. | History, Cars, Elon Musk, & Facts. In Encyclopædia Britannica. Retrieved from https://www.britannica.com/topic/Tesla- Motors

Juneja, P. (2015). Marketing Strategy - Meaning and Its Importance. Retrieved from Managementstudyguide.com website: https://www.managementstudyguide.com/marketing-strategy.htm Lotame. (2019, March 11). What is Market Segmentation? 5 Benefits to Maximize Results. Retrieved from LOTAME website: https://www.lotame.com/what-is-market- segmentation/ Oxford College Of Marketing. (2018, November 23). Micro and Macro Environment Factors | Oxford College of Marketing Blog. Retrieved from Oxford College of Marketing Blog website: https://blog.oxfordcollegeofmarketing.com/2014/11/04/the-impact-of-micro- and-macro-environment-factors-on-marketing/ Rowl, C. (2016, July 26). Tesla, Inc.’s Generic Strategy & Intensive Growth Strategies (Analysis). Retrieved from Panmore Institute website: http://panmore.com/tesla-motors- inc-generic-strategy-intensive-growth-strategies-analysis#:~:text=Tesla The Economic Times. (2018). Marketing Mix - What is Marketing Mix? Marketing Mix meaning, Marketing Mix definition - The Economic Times. Retrieved from The Economic Times website: https://economictimes.indiatimes.com/definition/marketing- mix ValensPoint. (2015, June 30). Undifferentiated vs. Differentiated Marketing Strategy: Which is Right for Your Business? Retrieved from Valens Point website: https://valenspoint.com/undifferentiated-vs-differentiated-marketing-strategy-which-is- right-for-your-business/ What is Promotion in the Marketing Mix? (2019, August 15). Retrieved from Tweak Your Biz website: https://tweakyourbiz.com/business/marketing-strategy/what-is- promotion#:~:text=Promotion%20in%20the%20marketing%20mix%20refers%20to %20communication%20with%20the What is Target Market? Definition of Target Market, Target Market Meaning. (n.d.). Retrieved June 15, 2021, from The Economic Times website: https://economictimes.indiatimes.com/definition/target-market?from=mdr Wilkinson, J. (2019, January 25). The Strategic CFO. Retrieved from The Strategic CFO website: https://strategiccfo.com/market-positioning/