MKT 315 RS Marketing Plan Analysis and Presentation Part 3 Research Template PDF

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Download MKT 315 RS Marketing Plan Analysis and Presentation Part 3 Research Template PDF

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Marketing Plan Analysis and Presentation: Part 3 – Research Template Directions: Using the company and research sources from the Topic 2 and Topic 5 assignments as a starting point, conduct additional research to acquire information related to place and promotion associated with the company you selected. In the “Strategy Recommendation” section, recommend a strategy that you believe will increase profits and sales to the target market. Cite your specific research findings to justify your strategy assessment and recommendations. Information to be Researched Describe distribution channels (direct, manufacturer to consumer, indirect, wholesalers/retailers, multichannels).

Research Findings ● Tesla follows the direct to consumer model, where currently they do not rely on showrooms or franchised dealers to sell their vehicles. This is based on the company’s idea that most consumers have a solid idea of what they want before they ever leave for a dealership.

Resource Citation Information Musk, E. (2014, December 11). The Tesla Approach to Distributing and Servicing Cars. Tesla, Inc. https://www.tesla.com/blog/tesla-approach-distributing-andservicing-cars. Zucchi, K. (2020, March 20). What Makes Tesla's Business Model Different? https://www.investopedia.com/articles/activetrading/072115/what-makes-teslas-business-modeldifferent.asp.

● Tesla also does not outsource any of it’s car servicing as stated in earlier research, this keeps the consumer engaged constantly with Tesla instead of a third-party.

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Discuss possible channel conflicts.

● While touting that their direct to consumer business model leaps beyond the traditional dealership that the average individual would find themselves in, it does not come without its own pitfalls. While Tesla employees are paid on salary instead of commission this could heavily impact the drive of sales.

Evannex. (2020, January 23). Tesla Has Altered The Car Dealership Model For The Better. https://insideevs.com/features/394452/tesla-transformingcar-dealership/. Quora. (2013, June 4). Why Doesn't Tesla Use Dealerships To Sell Their Vehicles? Forbes. https://www.forbes.com/sites/quora/2013/06/04/whydoesnt-tesla-use-dealerships-to-sell-their-vehicles/.

● While saving costs on brick and mortar locations, solely providing a limited location for customers to browse for products Tesla limits itself from potential foot traffic buyers among other consumers. What forms of advertising and promotion does the company use? What role does personal selling fulfill for the company?

● The company refrains from relying heavily on traditional advertising. Instead word of mouth is the main focus for them, where people who buy their products, see them on TV, as well as social media 2

Zart, N. (2014, September 5). The Brilliant Tesla Advertising Strategy, or Lack Thereof. TESLARATI. https://www.teslarati.com/brilliant-tesla-advertisingstrategy-lack-thereof/.

influencers spread constant awareness of the “lifestyle” that comes with the luxury brand. ● Where their competitors spend a hefty amount on paid advertising, Tesla as of an article from 2019 boasts a whopping 0% spent on paid advertising in the fiscal year. ● The traction they gain with their consumers is astonishing in that they have instant brand recognition, also that they are tied to other subsidiaries of their own such as “SpaceX” which recently launched its first successful mission to the international space station.

What forms of media does the company use? Describe the media mix.

● Well known platforms such as Twitter, Instagram, Facebook, and Youtube are a few of the media platforms that Tesla touts in their arsenal. Their approach is highly praised in that they engage on a variety 3

Koetsier, J. (2019, May 6). Tesla Spends Zero On Ads. Here's Where BMW, Toyota, Ford, and Porsche Spend Digital Ad Dollars. Forbes. https://www.forbes.com/sites/johnkoetsier/2019/05/06/teslaspends-zero-on-ads-heres-where-bmw-toyota-ford-andporsche-spend-digital-ad-dollars/.

Manecuta, A. (2018, November 20). Tesla: How to Leverage Social Media to Build a Top Brand. Medium. https://medium.com/@13alexm/tesla-howto-leverage-social-media-to-build-a-top-brandb7a043da68ff.

of levels with their customers and prospective buyers. Where other companies pay for the same recognition and brand praise Tesla’s ingenious approach is more genuine than staged and has grown a respectable organic following.

Illustrate the messages the company currently uses. Note: Include links to specific YouTube and social media site examples.

● Taken straight from their Twitter bio, the message they are trying to convey to their consumer is that they are, “On a mission to accelerate the world’s transition to sustainable energy.” ● From their social media platforms you can immediately get the message that they are working for the betterment of all humanity, ranging to their current work on ventilators to their “anything is possible” mentality with their recent launch from SpaceX. 4

Hogan, M. (2018, May 15). Social Media Marketing Highlight: Tesla and Elon Musk. Stunning Strategy. https://www.stunningstrategy.com/social-mediahighlight-tesla-elon-musk/.

Musk, E. (2018).TESLA Model 3 Commercial – "Feel It". https://www.youtube.com/watch?v=laW8rtUEMyc Telsa. (2019). Cybertruck. https://www.youtube.com/watch? v=J2U9Hmmpqhc Telsa.https://twitter.com/Tesla?ref_src=twsrc% 5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Eauthor.

● In another one of their YouTube videos, they show a timeline of the past. In the video it begins as a child beginning his life in an older time period, eventually catching up to him when he is much older who is fascinated by the technology in the Tesla vehicle. You get the sense that another message they are trying to convey is that they are bringing us into the future.

Strategy Recommendation: In 250 words, recommend a strategy that you believe will increase profits and sales to the target market. Cite your specific research findings to justify your strategy assessment and recommendations. Tesla has a proven track record of the benefits of a direct to consumer model. They also do little to spend on paid advertising and while that may have worked for them when they were a startup company, I do believe that they should usher in new tactics such as moving away from heavily relying on social media influencers to spread brand recognition. While those who keep up with current social media platforms may be exposed to the brand and product, there are just as many who could be reached in different arenas. For example, while Tesla did not spend any money on paid advertising in the past year companies such as Toyota and BMW did, this may be due to the fact that the company touts their vehicles as a luxury brand, however BMW and specific Toyota models like the Supra do as well. It would only be in their direct benefit to divert some type of revenue to reach an audience outside of the socialites. Second, while in a cited article Tesla stated that they would expand their showrooms and service centers, owners of their vehicles still have no choice but to have their parts and vehicles maintained by anyone else but Tesla. I do believe that it would be a winning solution to take some of the strain of being the only provider of maintenance and to certify other dealerships or automotive shops to work on their vehicles. This in turn could also be a way of opening more jobs to teach qualified technicians on how to work on renewable energy 5

vehicles, as well as expanding the market that they already maverick, and possibly charging some sort of fee to be certified that would indirectly generate its own profits.

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