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THE STATE BANK OF VIETNAM MINISTRY OF EDUCATION AND TRAINING HO CHI MINH UNIVERSITY OF BANKING PROJECT: MARKETING STRATEGY OF TESLA Instructor : Nguyen Thi Thanh Nhan Class Students : MAG309_231_TA_L25 Nguyen Thi Tam An Nguyen Thi Hong Tuoi : Dinh Bao Anh Pham Thi Kim Thao : 050609210014 Nguyen Thi Thao Ngan Nguyen Vu Tam : 050609212313 Nguyen Thu Thao : 050609210052 : 050609212196 : 050609212059 : 050609211266 : 050609212195 Ho Chi Minh city , 1st November, 2023 TABLE OF CONTENT I Overview of Tesla Company 4 1 Introduction to Tesla Company .4 2 Tesla’s core value 5 3 Tesla’s vision and mission 5 II Description of the target market, market positioning of Tesla (product/product line) and 4Ps strategies .6 1 The target market of Tesla .6 2 The market positioning of Tesla 7 3 What is Marketing Mix? Marketing mix of Tesla (7Ps of Tesla) 8 3.1 What is Marketing Mix? 8 3.2 Product Strategy of Tesla 9 3.3 Price Strategy of Tesla 10 3.3.1 Premium pricing .10 3.3.2 Value-Based Pricing 10 3.3.3 Dynamic Pricing .10 3.4 Place Strategy of Tesla 11 3.4.1 Direct Sales Model 11 3.4.2 Company-Owned Stores and Showrooms .11 3.4.3 Online Sales Platform .11 3.4.4 Service Centers and Mobile Service .11 3.7 Process Strategy of Tesla 12 2 3.8 Physical Evidence Strategy of Tesla 13 IV Evaluation of Marketing management activities: advantages and disadvantages 13 4.1 Advantages .13 4.2 Disadvantages 14 V Propose solutions to improve marketing management activities of that enterprise (product/product line) 14 5.2 Leverage influencer marketing: 15 5.3 Improve customer engagement through social media: 15 5.4 Expand product offerings: .15 5.5 Enhance the customer experience: 15 REFERENCES 16 3 I Overview of Tesla Company 1 Introduction to Tesla Company The U.S car market is saturated with established automakers like Ford, Honda, and Chevrolet But one company stands out from the mix: electric car maker Tesla Motors Tesla’s release positioned it as one of the few successful independent automakers and a pioneer in the electric car market Tesla Inc is an inseparable brand of Elon Musk, but a little-known fact is that he is not the founder of Tesla Tesla was founded by Martin Eberhard and Marc Tarpenning on July 1, 2003 in San Carlos, California, USA The company's previous name was Tesla Motors Inc before being changed in February 2017 Tesla not only makes all- electric vehicles, but also makes infinitely scalable clean energy generation and storage products such as Tesla batteries and panels, solar roof The corporation's headquarters is located in Palo Alto, California, US In addition, Tesla's factories are located in Fremont, California and Gigafactory in Shanghai The Tesla logo has a T-shaped design A curious Twitter user asked Musk to explain the futuristic, curved Tesla 'T' logo, which Musk said intended to represent a “cross section of an electric motor” According to US news, as of October 10, Tesla is the most valuable auto company in the world in 2023 by market capitalization with more than $800 billion 4 Tesla may be the most recognized company in the electric vehicle industry but that doesn't mean it's the only one The structure of the automobile industry is a concentrated industry, so it is a highly competitive industry There are a multitude of automakers, both established and emerging, that are developing exciting electric vehicles and technologies Some large companies include: Nissan, Toyota, General Motors, Nio, Ford… 2 Tesla’s core value "Doing the best, taking chances, respect, continuous learning, and environmental responsibility" are among Tesla's basic principles Tesla uses these core values as the guiding principles for all partners' and employees' general behavioral patterns The focus on performance is a core principle that has propelled Tesla's technological advancements The company also fosters a culture of encouraging its employees to take well-considered risks in pursuit of innovation Furthermore, Tesla's remarkable success can be attributed in significant part to the culture of respect that prevails among all stakeholders interacting with the company This supportive environment enhances the collective learning of all involved, resulting in outcomes that align with Tesla's commitment to environmental protection principles 3 Tesla’s vision and mission Tesla’s vision statement of “to create the most compelling car company of the 21st century by driving the world’s transition to electric vehicles” is an ambitious one and implies that Tesla firmly believes in its ability to become a major player in the automotive industry The company is confident about its products and believes that it can transition from being merely an automobile manufacturer to becoming a full- fledged mobility solutions provider for people who want sustainable and efficient transportation options: 5 Most compelling car company: The business approach adopted by Tesla is all about leading other manufacturers into understanding the concept of electric-powered vehicles and appreciating the benefits green energy has in the 21st century As a result, Tesla focusses all its resources and creativity into making this a reality Transition to electric vehicles Tesla has a global agenda of influencing the whole world to embrace electric cars For instance, Tesla has opened various production plants in various global regions With this approach, the company continues to influence other players to recognize the place of renewable and green energy in the modern era as well Tesla’s mission statement was “to accelerate the world’s transition to sustainable transport.” However, in mid-2016, under Elon Musk’s leadership, the company changed the corporate division “to accelerate the world’s transition to sustainable energy.” This new statement indicates a significant shift in the company’s business, to capitalize on market opportunities for renewable energy In some ways, the new corporate goal acknowledges the company's batteries and related energy storage technologies' value in areas other than the electric car market II Description of the target market, market positioning of Tesla (product/product line) and 4Ps strategies 1 The target market of Tesla Tesla's Target Market: Tesla has excelled in the electric vehicle market, particularly in the luxury segment Its primary focus lies within eco-conscious consumers seeking innovative, high-performance, environmentally friendly cars Tesla's targeting segmentation approach includes behavioral and psychographic segmentation It is aimed at dedicated and aspiring middle and upper-class customers who want and are looking for prestige, the appearance of being environmentally friendly, and the long-term cost-effectiveness of automobiles Because Tesla Inc.'s 6 Document continues below Discover more fmroamrk:eting management 120 - MMA Trường Đại học Ngâ… 386 documents Go to course Bài tiểu luận NLM làm về tập đoàn PePsiCo… 14 100% (22) Trắc nghiệm nguyên lý marketing… 3 100% (20) Marketing Strategies of Nestle Trong những… 42 marketing 100% (1) management Calculus for business, economics, and the… 80 Chứng 100% (2) khoán case study samsung group 100% (4) 15 marketing management QT Marketing (trắc nghiệm) 132 marketing strategic goal is to capture the mass market, the major target markets should be sect1o0r0s % (1) management with characteristics that are comparable to those of mass markets And purchasers who prefer automobiles that get them from point A to point B in a cost-effective and environmentally responsible manner without requiring other specialized attributes such as comfort or beauty Other consumer groups inside their target market acted and valued things differently from the group above, according to their marketing segmentation and targeting technique They were dubbed "fad users" since they would quickly follow a trendy trend or connect with stardom The typical customers of the brand today are business executives and entrepreneurs who can help position the company as a luxury, authoritative business Affluent individuals who want to position themselves as tech-savvy and eco-friendly are drawn to the company’s brand According to studies into the Tesla target market, most of the company’s customers are males (83.9% male and 16.1% female) They typically have an income of more than $100,000 too However, solutions like the Model X (a crossover SUV) aim to attract a wider range of customers due to the affordability factor This indicates Tesla is planning on expanding its target audience 2 The market positioning of Tesla Tesla’s brand positioning statement focuses on two core values for the company: sustainability and people Tesla emphasizes innovation, sustainability, and cutting-edge technology It focuses on delivering premium, environmentally friendly electric vehicles that redefine the automotive industry 7 The company is a customer-centric brand with a strong focus on its audience: “We’re building a world powered by solar energy, running on batteries, and transported by electric vehicles Explore the most recent impact of our products, people, and supply chain We design sustainable systems that are massively scalable resulting in the greatest environmental benefit possible.” Elon Musk and Tesla Motors have busted the myth that electric cars have to be slow cars with ugly designs Furthermore, they have proven that electric cars can look extremely different and sophisticated At a time when there is still no notable competition in the electric sports car market and when car manufacturers still only focus on gasoline cars, Tesla accidentally succeeded quickly and became a famous car brand with the highest capitalization on the market, despite being "born late" Tesla brand in the field of electric vehicles By positioning its products as a combination of advanced technology, high performance, and positive environmental impact, Tesla has created a unique position in the auto industry This brand is not simply an electric vehicle manufacturer, but a symbol of pioneering and breakthrough car technology Tesla's product positioning has attracted not only those interested in electric vehicles but also those who want to experience cutting-edge technology and environmental protection 3 What is Marketing Mix? Marketing mix of Tesla (7Ps of Tesla) 3.1 What is Marketing Mix? The marketing mix refers to the set of actions, or tactics, that a company uses to promote its brand or product in the market Marketing mix is inherently classified according to the 4P model which includes: Product (product), Price (price), Place (distribution), and Promotion (promotion) specifically used in commodity marketing activities However, over time this model was developed into 7Ps marketing according to the complexity and 8 improvement of today's modern marketing to meet the marketing needs of the market to help businesses' products/services be promoted strongly The 7Ps of marketing include essential strategic elements used to promote a brand, specifically: Product, Price, Place, Promotion, People, Process, and Physical evidence Tesla's marketing mix includes the following contents 3.2 Product Strategy of Tesla Tesla’s product strategy is central to its success Tesla produces high-quality electric vehicles that are both stylish and sustainable It also produces solar energy for both commercial and residential uses (Tesla, 2023) Tesla’s product portfolio includes the Model S, Model 3, Model X, and Model Y Each one's motor can go from 0 to 60 mph in 3 seconds Each has eco-friendly features This brand is using solar-powered innovation to improve its products and performance Each of these vehicles has unique features that cater to different customer preferences In addition, its Roadster, Semi, and Cybertruck are likely to revolutionize the future of transportation Tesla’s vehicles stand out for their innovative features The autopilot system, over-the-air updates, and high safety ratings are just a few examples of the innovation Its commitment to innovation is a key differentiator in the market, setting it apart from other automobile manufacturers Beyond vehicles, Tesla is also making waves in the clean energy sector with its solar energy products and power storage solutions These products align with the company’s mission of promoting sustainable energy and further differentiate the brand in the market 9 However, it should be noted that many customers are unhappy with the issues they face with their cars and the technical support they receive from the company This is clear from the reviews available on Trustpilot (Trustpilot, 2023) Tesla’s product strategy in its marketing mix focuses on innovation, performance, and sustainability, setting it apart from competitors and creating a unique brand identity By continuously pushing the boundaries of what electric vehicles and clean energy products can achieve, Tesla aims to accelerate the world’s transition to sustainable energy sources 3.3 Price Strategy of Tesla 3.3.1 Premium pricing Tesla’s vehicles were positioned as premium and high-performance electric vehicles, particularly the early models (Model S and Model X) These models were priced significantly higher than the average car, reflecting their unique features, cutting-edge technology, and luxury status This premium pricing strategy allowed Tesla to establish its brand as a leader in the electric vehicle market and gain a competitive edge over traditional automakers 3.3.2 Value-Based Pricing Tesla’s pricing strategy also considers the value proposition offered to customers The company’s vehicles have numerous features that justify the price points, such as long-range capabilities, impressive performance, advanced safety features, and cutting-edge technology like the Autopilot system and over-the-air software updates Additionally, Tesla’s clean energy products, like solar panels and energy storage solutions, provide customers with long-term savings on energy costs, further justifying their price tags 10 3.3.3 Dynamic Pricing Tesla has employed a dynamic pricing approach, adjusting prices based on product demand, manufacturing costs, and exchange rates Over the years, Tesla has made several price changes to its vehicle lineup, sometimes increasing prices due to rising production costs or lowering them to reflect improvements in manufacturing efficiency 3.4 Place Strategy of Tesla 3.4.1 Direct Sales Model Unlike most automakers that rely on a network of independent dealerships, Tesla uses a direct sales model, selling vehicles directly to customers through its website and company-owned stores This approach allows Tesla to control the entire customer experience, from marketing and sales to after-sales service It also eliminates the need for middlemen, reducing costs and enabling better communication with customers 3.4.2 Company-Owned Stores and Showrooms Tesla operates a network of stores and showrooms in strategic locations, such as shopping malls and city centers These stores serve as retail outlets and educational centers, where customers can learn about electric vehicles, test drive Tesla cars, and place orders This retail approach provides a unique buying experience and helps increase brand awareness and customer engagement 3.4.3 Online Sales Platform Tesla has embraced e-commerce, allowing customers to customize and order vehicles directly through its website This online sales platform makes the purchasing process more convenient and streamlined for customers while also reducing overhead costs associated with traditional dealerships 11 3.4.4 Service Centers and Mobile Service Tesla operates a network of company-owned service centers to provide after- sales support and maintenance Additionally, Tesla offers a mobile service program where technicians travel to customers’ locations to perform repairs and maintenance This approach enhances customer convenience and helps ensure high service quality 3.5 Promotion Strategy of Tesla The strategy that Tesla applies is to build an environmentally friendly, community-friendly brand image This brand image has helped Tesla win the hearts of a large audience Not just stopping at Tesla, Indirect brands receive a lot of attention from many of their informal businesses through the influence of Elon Musk Through him, Tesla can constantly launch resonant campaigns on the mass media, something no business can do 3.6 People Strategy of Tesla Tesla’s employees, from its engineers to its sales staff, play a vital role in delivering the Tesla experience The company invests heavily in training its employees to ensure that they have the knowledge and skills to promote its mission of sustainable energy Elon Musk, Tesla’s CEO, is a key factor in the brand’s success His vision, leadership, and charisma have significantly shaped Tesla’s image and market presence His active engagement with the public and his openness to feedback have helped build a strong rapport with the company’s customers and stakeholders 12 3.7 Process Strategy of Tesla Tesla’s process strategy is focused on efficiency, innovation, and customer satisfaction The ordering process for its vehicles is straightforward and user-friendly Customers can customize their vehicle and order online, making the purchase process convenient and hassle-free In terms of manufacturing, Tesla uses cutting-edge technology and automation to ensure the highest quality standards It continually innovates its manufacturing processes to increase efficiency and reduce costs 3.8 Physical Evidence Strategy of Tesla Physical evidence is the final element in the marketing mix of Tesla (7Ps of Tesla) In Tesla’s case, the physical evidence includes its stores, vehicles, charging stations, logo, color etc Tesla’s stores and galleries are designed to be inviting and informative They are more than just showrooms; they provide an immersive experience where customers can learn about electric vehicles and sustainable energy Tesla’s vehicles themselves are strong physical evidence of the brand’s commitment to quality, innovation, and sustainability Tesla’s charging stations (Supercharger network) not only provide a necessary service for Tesla drivers but also reinforce the feasibility and convenience of electric vehicle ownership However, more stations need to open to keep up with the demand Likewise, more stations need to be accessible to non-Tesla EV drivers IV Evaluation of Marketing management activities: advantages and disadvantages 4.1 Advantages Currently Tesla is a leading famous brand in the electric vehicle market 13 One of Tesla's outstanding strengths must mention the famous brand in the electric vehicle market, especially the luxury car market Specifically, Tesla is a company with a larger market share, mastering the luxury electric vehicle market At the same time, in the cheap electric vehicle market, rivals like Toyota and Honda are too familiar, Tesla has positioned its brand as a high-end customer and the only car manufacturer to target the luxury car market Not dependent on the intermediary: Another advantage of Tesla is that the brand sells directly to customers without going through any intermediaries or agents This saves Tesla a lot of money and has complete autonomy over the overall quality of the products the brand markets 4.2 Disadvantages Restrictions on the construction of vehicle production and distribution centers: The first weakness that Tesla needs to overcome is the restrictions on building car manufacturing centers If comparing Tesla with a large and long-standing competitor, The car brand owns fewer production centers and faces a limited number of vehicles Tesla can produce Not diversified customer audience: Positioning itself as a luxury car brand, Tesla aims at the target audience of a high- income customer class This makes it impossible for middle-income customer segments to meet the prices the brand values for its products V Propose solutions to improve marketing management activities of that enterprise (product/product line) This lesson emphasizes the importance of not being afraid of change, not being afraid to experiment, and constantly innovating in building marketing strategies to 14 make a difference and achieve success in an increasingly competitive business market complex and challenging There are several solutions that Tesla could implement to improve their marketing management activities for their products and product lines: 5.1 Increase brand awareness through targeted advertising campaigns: Tesla could create targeted advertising campaigns that focus on specific demographics, such as environmentally conscious consumers or tech enthusiasts These campaigns could be run on social media platforms, search engines, and other relevant websites 5.2 Leverage influencer marketing: Tesla could partner with influencers in the automotive and technology industries to promote their products This could include sponsoring content on YouTube, Instagram or inviting influencers to test drive their vehicles and share their experiences with their followers 5.3 Improve customer engagement through social media: Tesla could use social media platforms like Twitter and Facebook to engage with customers and respond to their questions and concerns This could help build a stronger relationship with customers and improve brand loyalty 5.4 Expand product offerings: Tesla could expand their product offerings to appeal to a wider range of consumers This could include introducing more affordable models or offering more customization options for their existing products 15 5.5 Enhance the customer experience: Tesla could improve the customer experience by offering more convenient and efficient ways to purchase and service their vehicles This could include expanding their network of service centers or offering online ordering and delivery options REFERENCES Hodgson, S (n.d.) Tesla Marketing Strategy, Segmentation, Positioning And Targeting Fabrik Brands https://fabrikbrands.com/tesla-marketing-strategy- segmentation-positioning-and-targeting/ Kissinger, D (2023, September 5) Tesla’s Marketing Mix: 4Ps Analysis Panmore Institute https://panmore.com/tesla-motors-inc-marketing-mix-4ps- analysis Marketing mix of Tesla (7Ps of Tesla) (2023, September 1) www.howandwhat.net https://www.howandwhat.net/marketing-mix-tesla-7ps- tesla/ Tesla Marketing Mix (4Ps) (2023, April 17) The Strategy Story https://thestrategystory.com/blog/tesla-marketing-mix-4ps/ Tesla Segmentation, Targeting, and Positioning (n.d.) EdrawMind https://www.edrawmind.com/article/tesla-segmentation-targeting-and- positioning.html Davids, N., & guide, s (2023, July 13) Tesla Customer Experience: Setting a New Standard in the Automotive Industry Handle https://www.askhandle.com/blog/what-is-tesla-customer-experience 16 Fortuna, C (2023, March 1) 12 Reasons Why Tesla Should Offer A Low-Priced Vehicle CleanTechnica https://cleantechnica.com/2023/03/01/12-reasons-why- tesla-should-offer-a-low-priced-vehicle/ Isidore, C (2019, May 31) Tesla has never needed to advertise, but that might have to change CNN https://edition.cnn.com/2019/05/31/tech/tesla- advertising/index.html Ku, D (2020, October 14) What Tesla's Social Media Strategy Has Taught Us PostBeyond https://www.postbeyond.com/blog/tesla-social-media-marketing/ 17 More from: marketing management 120 - MMA Trường Đại học Ngân… 386 documents Go to course Bài tiểu luận NLM làm về tập đoàn PePsiCo và… 14 marketing 100% (22) management Trắc nghiệm nguyên lý marketing BUHHHHHH… 3 marketing 100% (20) management CHIẾN LƯỢC XÂY DỰNG THƯƠNG HIỆU… 26 marketing 100% (17) management TIỂU LUẬN VỀ cà phê TRUNG NGUYÊN MÔN… 33 marketing 100% (13) management Recommended for you Marketing Strategies of Nestle Trong những… 42 marketing 100% (1) management Calculus for business, economics, and the… 80 Chứng khoán 100% (2) case study samsung group 100% (4) 15 marketing management QT Marketing (trắc nghiệm) 100% (1) 132 marketing management