Introduction to Tesla Marketing Strategy

Tesla, Inc. is an American-based company that offers clean electric power solutions and electric cars from Palo Alto, California. It was founded in 2003 by American entrepreneurs Martin Eberhard and Marc Tarpenning and was named after the Serbian American inventor Nikola Tesla.

With electric cars and renewable energy solutions, Tesla is bringing the world nearer to sustainable energy. It has focused 100% on electric vehicles. Tesla cars are world-renowned for their phenomenal performance on the road as well as for Tesla zero marketing strategies.

Today, Tesla builds not only all-electric vehicles but also infinitely scalable clean energy generation and storage products. The faster the world stops relying on fossil fuels and moves towards a zero-emission future, the better.

The Tesla statement on vision and mission reflects the company's aim for dominance in the global electric vehicle and battery market.

The mission statement of Tesla is, "to accelerate the world's transition to sustainable energy".

And the vision statement is "to create the most compelling car company of the 21^st century by driving the world’s transition to electric vehicles."

In the competitive world of business, people always wonder how this electric car company is running its business without making use of traditional marketing strategies. Let’s drive to know what marketing strategy Tesla uses and how these marketing strategies of Tesla bring business to them.

A high-level plan-Tesla Product Strategy 

Tesla cars come in three different variants, i.e., Model S, X, and 3. All three models are made with amazing motors that can go from 0 to 60 mph in just 3 seconds. Every one of them has unique eco-accommodating highlights. Tesla is incorporating solar technology into its major energy frameworks to improve products and performance.

Tesla Motors gives importance to their cars' technology. They develop software for their cars to keep them updated. Basically, this gives Tesla the ability to improve its car engine software to enhance the consumer experience every few weeks.

The stylish design of the cars adds value to the product strategy of Tesla. The brand understands that an expensive car must be beautiful and eye-catching. It attracts teenagers the most because they are cool and stylish.

Target the market-Tesla Place Strategy

Tesla Motors serves its worldwide audience through its headquarters situated in Palo Alto, California. The international company has stores in Asia, Europe, Australia, South Korea, Dubai, and North America, which work as extensive sales and distribution centres.

China is one of the largest markets for Tesla for electrical vehicles. The company has eight locations in Canada, including Montreal and Ontario. Tesla Motors has built retail outlets in Los Angeles and Manhattan. 

There are 438 Tesla Motors stores throughout the world and 100 service centers. They have 30,000 individual fast-charging points across the globe, with the major number of supercharger stations situated right here in North America.

Tesla Motors has its own website for selling products and dealing with interested customers. In the United States, to maximise brand exposure, several galleries and stores are put up at shopping malls. This is how Tesla's marketing strategies have facilitated gaining brand value.

The company believes in a direct to customer sales approach through its service centres and stores. The Tesla Motors manufacturing centre is in Fremont, situated in California. Other manufacturing plants are spread far and wide, like Giga Factory 1 in Nevada and Giga Factory 2 in Buffalo, New York. The Tesla R&D departments are in Athens, Greece.

A set model for best price-Tesla Pricing Strategy

Tesla Motors' primary aim was to target wealthy buyers, making a conscious decision to seize the larger markets. The buyers in the market were more interested in high-quality products with advanced technology regardless of their cost, because they could easily afford such products.

Later on, keeping in mind mid-scale consumers, the company launched products that were affordable. The company captured a large part of the consumer market by adopting a reasonable pricing strategy. The marketing strategy of Tesla benefited them with higher profit margins and greater revenues by selling a large number of products.

A high service demand plan-Tesla Promotion Strategy

Tesla Motors approved a budget of 52 US dollars for marketing purposes in the year 2017. To promote their product, they used a word-of-mouth referral programme to attract buyers.

It was a unique strategy to promote their products among customers and attract buyers.

Media releases and public relations activities had a significant impact on product promotion and positive brand awareness.

As a part of Tesla's marketing strategy, the PR activities played a crucial role in spreading awareness. The surcharging stations on highways and charging ports at malls, restaurants, and hotels have the brand name Tesla written over them.

The Tesla marketing strategy was a zero-dollar marketing approach. The company's website is the main source for product deals and marketing. Online platforms like blogs and forums are also used for marketing and promotion purposes.

Tesla has a YouTube channel with 2.29 million subscribers and 275 videos showing great features of the car. For maximum benefits, they use their Facebook page for promotion and brand awareness.

Focus on your Goals

The company aims to build a sustainable community in the future. Tesla’s first vision was to build electric cars. They achieved the goal within a decade, and then Tesla added another mission to become a renewable energy provider.

To accomplish their mission, they have produced solar chargers and provided alternative solutions to homeowners. Recently, Tesla announced the development of solar neighborhoods using in-house energy storage products.

Easy buying process

The Tesla marketing strategy also includes creating a simple buying process. The most preferred and straight-forward procedure to improve the customer experience is the online buying process.

To make the process easy and convenient for customers, Tesla made the whole buying process online.

The website contains all the information you need to make an informed decision. From making a test drive appointment to finalising the product, all the process is conducted online.

Tesla doesn’t involve the intermediary and takes charge of the whole procedure. It saves time and improves the customer experience.

Sales Centers

Tesla Motors' marketing strategies work differently. The electric car company doesn’t work like any other auto company. Foremost, it does not have any franchises to offer to investors.

The sales and services are provided by the sale centers established in different countries. They have created sales centers that work for sales and service at the same time. Sometimes, these franchise owners work more for the incentives than for the brand.

These centers are run by Tesla itself, which means cutting the incentive-based performance of franchise owners.

After-Sales Service-Tesla service and support to retain customers

The company is well known for its remarkable customer service. Tesla has proved that to retain their customers, after-sale services play a major role.

To enhance the experience of any Tesla car owner and let them drive their cars without fear, they provide world-class service and support to their customers. They book appointments if someone needs car maintenance and get it done as quickly as possible.

This marketing strategy of Tesla, which shows a high level of service support, turns around into a customer’s loyalty and support.

Customer Experience-Tesla's impression on buyers

Tesla's marketing strategy includes effective and efficient techniques of promotion, i.e., word of mouth. It works in such a way that goodwill is driven from the customers to the potential customers. Word of mouth motivates 74% of consumers to buy a product because people not only favour the opinion of a friend over a stranger but love sharing it with others.

Since Tesla’s cars are really recommendable, Tesla’s CEO, Elon Musk, favoured word of mouth to promote the product.

Tesla marketing strategy also includes providing the best customer experience, making their customers happy and enthusiastic about the product. They make sure to provide tremendous use of technology like autopilot and the best quality cars in sensible fashion.

Encourage Competitors- Tesla Competitive strategy

In the business industry, pulling each other down is pretty common practice, but Tesla has never fallen into this practice. In fact, the company openly encourages competitors and wishes them to build better electric cars.

The marketing strategies of Tesla are not just about selling wonderful cars; they support their rivals and encourage them to do better for the environment and the future.

They believe in healthy competition and this has made Tesla successful in business.

When a Chinese-based group entered into the business of selling electric cars, Tesla Company announced it would open its charging station to everybody. This makes Tesla's competitive strategy extraordinary.

Conclusion

Tesla is the leading manufacturing company in the field of electric cars. Tesla's marketing strategies are based on online awareness, promotions, and, of course, the social engagement of the company's CEO.

Tesla believes that it is better to invest in customers by offering them the best products rather than spend millions of dollars on marketing and promotions. Tesla gives importance to their cars' technology. They develop software for their cars to keep them updated.

Tesla has found success through word of mouth marketing. The company has shown that a brand can establish itself as a market leader by just putting its mind and skills to it rather than following the path of traditional marketing.

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