TESLA- MARKETING PLAN

INDUSTRY

• We are one of the many companies competing in the premium all-electric sports car market.

• This market's value is projected to be $567,299.8 million by 2025.

• Currently China has the largest number of electric vehicle manufacturing companies.

• The demand for these cars are driven by the increase in demand for fuel-efficient, high performance and low emission vehicles. However, the high manufacturing costs limit this markets growth.

TARGET MARKET

• Individuals willing to spend alot of money on a product because they believe successful people like them can change the world.

Primary target: Secondary target:

30-60 years old 18-24 years old

Upper income class College students

Upper social class Prestigious universities

Concerned about gas consumption

POSITION IN THE MARKET

• Positioned as the 'new technology for clean energy'.

• Mono-segment positioning: Focus on one segment and pay attention to the micro-segments within this segment.

• Highest loyalty in the market

PRODUCT

2012

Model S: Premium all electric car

First to ever be created in the world

Best selling because of its performance, safety and efficiency

Heated seats + LED adaptive lighting

2015

Model X: Quickest and safest sports utility automobile All products

7 seater Family car have a 4 year warranty

'Falcon wing' doors and additional warranties for

maintenance and repairs.

2017

Model 3: High volume low cost electric car

5 seater luxurious car

Autopilot function

PRICE

Unlike our competitors, we have stuck to producing electric cars even if it means higher costs.

Excellent performance + Sleek modern designs + Expensive battery technology = High prices

Demand is exceeding supply because we don't have the manufacturing capacity = High prices

HOWEVER, customers are willing to pay due to the green energy movement.

Currently in the UAE our Model S is selling from AED 295,470 onwards. Our family car, the Model X, is selling from AED 332,500 and our most affordable car so far is our Model 3 which is selling from AED 129,000.

PLACE

1. Direct sales

2.Internet sales

Direct sales

• Own many showrooms around the world
• Customers can discuss any problems directly with our staff
• Good environment: Showrooms have a minimalistic design + Free international calls + Coffee shops

Internet sales

• Customize your car at the comfort of your own home

Both

• Car can be picked up or delivered to a location that is convenient
• Delivery team is sent to make payments, delivery and document signing easier for the customers
• Complimentary repair through mobile service
• Mobile technicians
• Supercharge stations- Fully charge in 30 minutes for free
• Repairs at sales centers

PROMOTION

CONCEPT: PLAY HARD TO GET

1. Most expensive marketing strategy in history

In February 2018, we advertised Elon Musks' very own Tesla Roadster in a SpaceX campaign.

2. More personal approach

Elon Musk: Presence on social media + Public popularity has increased our brand image. He is the face of Tesla.

BENEFITS TO THE CUSTOMER

• Our products are cheaper to run and maintain.

• Less harmful emissions (better for your health).

• You don't need to pay for petrol anymore.

• You get one of the best customer experiences.

CUSTOMER WANTS AND NEEDS

Customer wants:

• Hardcore users- Status + Socially responsible
• Fad users- Trends
• Switchers- Easily switch based on price + No loyalty

New customer wants:

• Some want a smaller SUV
• Some want cheaper offers with more benefits

HOW DO we BUILD CUSTOMER RELATIONSHIPS?

• Direct sales (distribution channel).

• Good experience creates a loyal customer.

• Be honest and transparent- Don't hide behind the problem and be honest. Elon Musk personally responded to customers on twitter with honest updates.

• Focusing on the digital experience.

• Mission focused- Purpose is to 'accelerate the world's transition to sustainable energy'. A strong mission makes customers more engaged and dedicated to the cause.

our company GOALS

5 objectives:

• Model S is still in its growth stage --> Reach our highest possible sales.

• Reduce our costs to get a higher gross profit margin.

• Take advantage of the trends and globalization--> Introduce Model S to new markets.

• Set up more charging stations to encourage people to buy electric cars.

• Develop new products to satisfy demands of the high end all-electric car industry.

who are OUR suppliers?

Most basic components like the electric motor, battery pack and charger are manufactured in our own factory.

Other parts:

• Windshields from AGC Automotive
• Brakes from Brembo
• Power seats from Fisher Dynamics
• Acoustic dampers from Sika

WHO ARE our MAJOR COMPETITORS?

Top competitor: Ford

• They are also focusing on manufacturing unique products and using high-tech gadgets to improve their products.

Mercedes Benz

• Well-known name and they are very famous for their concept cars. Very similar to Model X.

Honda

• World's largest motorcycle manufacturer and they are also using high-tech gadgets to improve their products.

Volkswagen

• Volkswagen golf is the second highest car seller in UK. They innovated a very expensive electric version of the hatchback.

what are their strategies?

Ford

• Invested $4.5 billion on technology for electric cars, to develop 13 new electric vehicle models.

Mercedes Benz

• Manufacture 10 plug-in hybrids which will include SUV's. No longer focusing only on the product but also on services related to mobility (Ex. exclusive Mercedes me connect functions).

Honda

• Advancing technology to address environmental and energy concerns. Committed to 15% Electric Vehicles and 50% Hybrid target of global sales by 2030.

Volkswagen

• Launch 70 new electric models in the next 10 years. Have multiple plants of theirs around the world to switch over to electric production, from 2022.

STRENGTHS

• Well recognized brand.

• First to build a premium all-electric car.

• Known for being environmentally friendly- attracts customers with a 'green' attitude.

• Cars are built with advanced hardware and software.

• Direct distribution channel.

• Ability to create one of the best customer experiences.

WEAKNESSES

• Don't have much profits--> May not be sufficient to survive.

• Spent majority of government incentives in research and development.

• Our cars are more expensive than our competitors.

• High production and operation cost.

• Our manufacturing factories are a lot smaller than our competitors--> Can't reach our target volume.

OPPORTUNITIES

• Building gigafactories --> Increase production. This can lead to economies of scale.

• Increasing government incentives to produce electric cars. (Political factors)

• Expanding free trade agreements --> Operate internationally. (Political factors)

• Decreasing battery and renewable energy costs. (Economic factor)

• More people have 'green' attitudes and prefer cars that are good for the environment. (Social factor)

• Technological changes. (Technology factors)

THREATS

• Increasing competition--> Wider variety for consumers to pick from --> Less sales.

• Economic instability in Europe and Asia can affect our financial performance. (Economic factors)

• Technology changes --> Technology used in older products become obsolete.

• Certain states in U.S.A do not allow companies in this industry to sell directly and require a dealership --> Ruin's our customers experience and takes away our competitive advantage.