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 as part of its Tesla marketing strategy. 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, which is an integral part of Tesla's marketing mix, 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.

Elon Musk’s Influence on Tesla’s Marketing Strategy

Elon Musk, Tesla's visionary CEO, has had a profound impact on the company's marketing strategy. His unique approach to marketing has set Tesla apart in the automotive industry.

1) Innovative Communication: Musk's unorthodox and direct communication style through social media platforms, especially Twitter, has generated immense public interest. His tweets often create buzz, spark conversations, and even influence stock prices.

2) Brand Storytelling: Musk is a master storyteller, and he uses narratives of innovation, sustainability, and a vision for the future to captivate audiences. His ability to convey Tesla's mission as more than just a car company has been instrumental in building brand loyalty.

3) Personal Branding: Musk's personal brand is closely tied to Tesla. His charismatic and often polarizing persona has added an intriguing dimension to Tesla's marketing. His appearances at product unveilings and interviews generate media attention.

4) Product Teasers: Musk has a knack for teasing upcoming products and features, generating anticipation and excitement among Tesla enthusiasts. His cryptic tweets and hints keep the Tesla community engaged.

5) Crisis Management: In times of crisis or controversy, Musk's transparency and willingness to address issues head-on have helped maintain trust in the brand. He takes personal responsibility, which resonates with Tesla supporters.

Elon Musk's influence extends beyond conventional marketing strategies. His unique approach has turned Tesla into a brand with a cult-like following, attracting not only car enthusiasts but also those who believe in Tesla's mission to accelerate the world's transition to sustainable energy.

Tesla marketing mix – 4Ps Strategy

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.

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, and their Tesla Motors marketing strategy, including their Tesla distribution strategy, is making a significant impact. The company has eight locations in Canada, including Montreal and Ontario. Tesla Motors has also strategically built retail outlets in prominent locations like Los Angeles and Manhattan, further reinforcing their marketing strategy.

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. When it comes to their Tesla Motors marketing strategy, they have a unique approach. 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.

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.

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.

Their innovative Tesla promotion strategy was designed to promote their products among customers and attract buyers in a distinctive way.

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. In line with their Tesla promotion strategy the charging stations on highways and charging ports at malls, restaurants, and hotels proudly display the brand name Tesla 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 utilizes a comprehensive digital marketing strategy that incorporates the Tesla marketing mix. They maintain a strong presence on platforms like YouTube, where they have amassed 2.29 million subscribers and shared 275 videos showcasing the exceptional features of their cars. In addition to YouTube, Tesla leverages its Facebook page for promotional activities and to enhance brand awareness.

Tesla Marketing Channels for Brand Awareness

Tesla's marketing channels play a vital role in their global outreach. The company strategically employs various channels to reach its target audience and create brand awareness.

1) Online Presence: Tesla leverages its official website as the primary hub for marketing and sales. Customers can explore Tesla's product lineup, configure their vehicles, and make purchases online.

2) Social Media: Tesla actively utilizes social media platforms such as Facebook, Twitter, and Instagram to engage with its audience. These platforms serve as a space for sharing updates, showcasing product features, and interacting with Tesla enthusiasts.

3) YouTube Marketing: Tesla boasts a YouTube channel with a substantial subscriber base. They regularly release videos highlighting the unique features and innovations of their vehicles. These videos provide an immersive look into the Tesla experience.

4) Word-of-Mouth Referral Program: Tesla's referral program encourages existing customers to refer new buyers, effectively utilizing word-of-mouth marketing. This program fosters a sense of community and loyalty among Tesla owners.

5) Public Relations: Media releases and public relations activities contribute significantly to Tesla's marketing efforts. They ensure that the public remains informed about the company's developments, innovations, and milestones.

6) Physical Presence: Tesla strategically places retail outlets and galleries in high-traffic areas, including shopping malls, to maximize brand exposure. These physical locations allow potential customers to interact with Tesla's products firsthand.

7) Charging Infrastructure: Tesla's Supercharger network and destination charging stations not only serve as a convenience for Tesla owners but also prominently display the Tesla brand. These stations reinforce the brand's commitment to electric mobility.

Tesla’s Unique Sales and Service Approach

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.

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 finalizing 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.

After - Sales Service and Support

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.

Encouraging 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.

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.

Conclusion

Tesla is the leading manufacturing company in the field of electric cars. When it comes to Tesla marketing strategy, it's built on online awareness, promotions, and, of course, the social engagement of the company's CEO, all integral to its success.

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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