Writing Assignment 1- MKT PDF

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Tesla Marketing Mix

Patricia Rodriguez MBA, University of People BUS 5112- AY2021-T3 Dr. Jessica Talia February 3, 2021

Introduction Tesla is an American company well known for its electric cars and energy products sold in some countries. This company was founded in 2003 by engineers who believe cars move to a zero-emission future instead of the traditional gasoline automobile. Tesla is proud of designing the first sedan model electric car in the world. Tesla electric cars are manufactured in California, the US, and Gigafactory Shanghai, China. Tesla’s mission is to accelerate the world’s transition to sustainable energy. Its focus on the innovative approach of clean transport and clean energy production (Tesla.com, 2021). Even though there are many competitors in the vehicle industry, Tesla has achieved to positioned as a major producer of electric cars in the United States. Tesla highlights in the vehicle industry by using the marketing mix or 4Ps. These are the components of marketing that support its sustainable products. For this reason, Tesla achieves great managerial control of the company's marketing mix to focus on its customers and increase profits. Its vision is to conquer foreign countries by using advanced technology to maintain a competitive advantage in the automotive industry. In addition, Tesla's marketing mix of 4Ps stands out against famous competitors such as General Motors, BMW, Nissan, Toyota, and Volkswagen (Kissinger, 2018). Product Mix Analysis Product Tesla provides a high-quality electric automobile such as the Model S well known for its acceleration time of 2.28 seconds measured by Motor Trend. Another vehicle considered as a sports car is the Model X that has 5-star safety by the National Highway Traffic Safety Administration. In 2016, Tesla presented the Model 3, a low-priced electric car. Around 2017,

Tesla introduced the truck called Tesla Semi that consumers can save on gasoline costs. After that, Tesla produced Model Y, an SUV, for up to seven people seating (Tesla.com, 2021) In addition, Tesla produces sustainable energy storage and offers energy solutions to customers for renewable energy sources. Its energy products such as Powerwall, batterie that recharges energy when using solar panels for home. Another is Powerpack, batteries for commercial clients, and Solar Roof. Tesla manufactures batteries in the facility Gigafactory 1 to reduce its costs (Tesla.com, 2021). Promotion Tesla’s marketing strategy is to promote its automobiles through company stores and galleries with well-trained sales staff. Another promotion tactic is public relations that improve Tesla’s brand by promoting its inclusion programs which influence customers viewpoint. The company also offer sales promotion such as a discount for some products (Kissinger, 2018) Moreover, Tesla’s promotion is involved actively through its websites and social media. For example, Tesla has videos posted on YouTube channel followed by more than three hundred thousand subscribers (Musonera & Cagle, 2019). Tesla has demonstrated its marketing communication to be efficient to gain customer’s acceptance and impress its brand nationwide. Place Tesla increases its locations gradually in the United States and other countries. The customers can purchase Tesla’s electric cars or energy products at company-owned stores inside malls but previously ordered through the Tesla website. Customers also can visit Tesla service centers where their cars can receive maintenance services or repair. In addition, Tesla expands its charging stations to strategic places (Kissinger, 2018). For instance, Tesla expands

its stores and charging stations in Virginia that caused disagreements from other car dealers in the region because of Tesla's direct sales to gain more customers (Voccella, 2016). Price Tesla uses premium prices that target wealthy consumers who want to pay high for innovation and design quality in the products. Tesla’s mission of using advanced technology influences customer’s perception that they are agreeing to purchase the product. Thus, Tesla demonstrates the market-oriented pricing related to its solar panels for homeowners or business consumers. The price marketing strategy contributes to competitiveness in a changing industry (Kissinger, 2018). Value Proposition Tesla has demonstrated to be positioned in the automobile market against its competitors because of its high-tech electric cars, and energy products. In addition, Tesla’s design and production keep innovated with advanced technology that customers eco-friendly prefer. In the last years, Tesla achieves to be more accessible to customers worldwide by creating more charging stations close to them. Tesla continues to be competitive because of its sustainable energy performance and value.

References

Daniel Kissinger. (2018). Tesla, Inc.’s Marketing Mix (4Ps) Analysis—Panmore Institute. (n.d.). Retrieved January 31, 2021, from http://panmore.com/tesla-motors-inc-marketing-mix4ps-analysis Electric Cars, Solar & Clean Energy | Tesla. (n.d.). Retrieved January 31, 2021, from https://www.tesla.com/ Musonera, E., & Cagle, C. (2019). Electric Car Brand Positioning in the Automotive Industry: Recommendations for Sustainable and Innovative Marketing Strategies | Journal of Strategic Innovation and Sustainability. (n.d.). Retrieved January 31, 2021, from https://www.articlegateway.com/index.php/JSIS/article/view/991 Vozzella, L. (2016, November 28). Auto dealers sound alarm as Tesla pushes for second Virginia store. Washington Post. https://www.washingtonpost.com/local/virginia-politics/autodealers-sound-alarm-as-tesla-pushes-for-second-virginia-store/2016/11/27/371cb280b0e0-11e6-8616-52b15787add0_story.html...