2B&L

Tesla
Marketing assignment
 1. Present your company

Tesla is an American automotive and energy company based in California. The

company specializes in electric car manufacturing and solar panel manufacturing.

They also sell powerwalls, powerpack (=rechargeable battery stationary energy

storage products, used for home energy storage and stores electricity for solar self-
consumption, …) and megapack batteries (=a grid energy storage battery, this is a
collection of methods used to store electrical energy on a large scale within an
electrical power grid), solar panels, solar roof tiles and some related products

Source: Wikipedia

a. What is the value the company/brand wants to create towards the

consumer (B2C)/customer (B2B)

Tesla is a B2C brand, their end goal is to get the world off gas.

2. Take your product and service and explain underlying

Needs: a person needs a car to transport himself from A to B

Wants: a person wants the brand Tesla because it’s a luxury brand and it gives them
a ‘status.
Demands: you have to have the money to be able to afford a Tesla

a. For my company, How did the market change the last year? What are the
effects on my brand?

Tesla’s stock has fallen 21,3%. One of their primary concerns for their investors is the
company’s profitability. In more than ten years of its stock trading, the company has
achieved profits in just four quarters. This means that their budget for innovations
isn’t that big anymore and for their new Model Y.
https://marketrealist.com/2019/10/could-the-model-y-change-teslas-profit-game/

b. Risk on marketing myopia: explain by giving an example

(Marketing myopia = focussing only on existing wants and losing sight of underlying
consumer needs, pay more attention to the product then to the benefits and
experiences produced by the product
Short: focussing more on products and not on customers)

They can be so focussed on improving the electric car, that they forget to look at the
cost and customers. Therefore the car gets too expensive for the customers and will
go to other, maybe cheaper, competitors who offer the same product.

3. What is the target group of our brand?

People between the age of 20 and 40, eco-friendly, tech-savvy and entry-level luxury
buyer.
 a. Give your target consumer a name and describe him/her?

Peter, a 35 year old man that loves technology and cares for the environment. He
works as a manager at a multinational company.

b. What are the risks of targeting this group?

When he gets older, he might not associate with our brand and buy another car.
People who aren’t familiar with technology, might be afraid to buy from brand.

4. Average customer life time value: calculate for your product

a. Share of customer: explain
b. Partner relationship management: give an example on this using
your company
 Nog niet gedaan

5. Mission of the company?

Tesla reflects the company’s aim for dominance in the global electric vehicles and
battery market
Mission statement: ‘to accelerate the world’s transition to sustainable energy”
They believe that the faster the world stops relying on fossils fuels and moves
towards a zero-emission future, the better it will be for the world
https://www.marketing91.com/marketing-strategy-of-tesla/

b. Search mission/vision of your competitors

BMW: "The BMW Group is the world's leading provider of premium products
and premium services for individual mobility."

Chevrolet: "At General Motors, innovation is our north star. As the first
automotive company to mass-produce an affordable electric car, and the first
to develop an electric starter and air bags, GM has always pushed the limits of
engineering."

c. Explain why mission/vision exist

The vision and mission statements define the purpose of the organization

and instill a sense of belonging and identity to the employees. This motivates
them to work harder in order to achieve success.
The vision and mission statements are important tools of strategic planning,
and thus they help to shape the strategy that will be used by an organization to
achieve the desired future.

6. Strategy of your company: use BCG matrix: where would you put
different products/parts of your company? Explain why

The Tesla car is a starting star. The Tesla power wall is a question mark.
The car has been on the market for a couple years now and it is still new for the
consumers. The technology used for these cars aren’t 100% reliable.
The power wall is a very new product. It has just entered the market. It hasn’t been
on the market long enough to determine if this will be a success or not.

a. Product/market expansion grid: what are possible strategic

moves?

For the Tesla car it’s market development and the power wall is diversification.

b. What are to pro and cons of these different moves?

PRO’s CON’s
Market development Market development
- New target group - People are not familiar with
- Growth and revenue this type of product
Diversification Diversification
- You don’t know if it will be
beneficial

7. Go briefly through the different steps of a marketing plan for your

company/brand: concrete on: analysis current situation, make SWOT.

Strengths:
 Technology (other brands use Tesla’s technologies)
 Great leadership and team spirit (CEO Elon Musk is extremely passionate
about Tesla)
 Distribution channel (they make their own distribution channel)
Weaknesses:
 Customer awareness (a lot of customers are not sure about wether or not they
need to invest in the new technologies which are expensive as well)
Opportunities:
 Preference for new technologies
Threats:
 Competition (Ford, General Motors, Fiat Chrysler, google, …)
https://www.marketing91.com/swot-analysis-of-tesla-motors/

a. How could you overcome potential weaknesses and threats?

NOG NIET GEDAAN

b. What is the positioning of your product or service?

NOG NIET GEDAAN

8. Look at the structure of your companies’ customers;

Which customer sectors are relevant?
Rank them by importance

1. Consumer markets
2. International market
3. Business market
(examples, charts on paper)  wat wordt hiermee bedoeld?
 9. Who are key micro economic stakeholders for your product/company?

 shareholders

Internal stakeholders: Elon Musk, Ceo, chairman, and product architect was the most
invested

Potential new stakeholders:

https://www.coursehero.com/file/p3f73ie/Ranking-of-Tesla-Motors-Stakeholders-1-
Internal-stakeholders-Elon-Musk-CEO/

Tesla’s key stakeholders include its investors, directors, employees, suppliers,

shareholders, partners, the government, financial institutes, and the public.

10. What are long term impacts of the macro environment on your
company?
Present at least 4 trends

 Natural forces (electric cars  no CO2)

 Technological forces (self-driving cars)
 Economic forces (luxury car)
 Cultural forces (only countries where the cars are known for their prosperity)

11. Define for your brand/product (vs. competition)

Points-of-difference  better for the environment, better technology

Points-of-parity  it’s a car with 4 wheels, to transport

12. What are the latest new products or services your company launched.
How did they obtain the new product/service

New product: a new type of car

New service: insurance, they copy it but customised it to their own consumers

13. Analyse your companies’ pricing strategy which price level vs.
competition did they chose and why? Motivate.

NOG NIET GEDAAN

14. How does your companies’ products or services get to the customer and
consumer?
Draw a chart  nog niet gedaan
Who are the most important distribution partners in Belgium?
Producer  consumer
Tesla itself, they don’t have distribution partners
Cars  Tesla
Solar panels  Sol distribution https://sol-distribution.com.au/partners-tesla
Tesla doesn’t have any distribution partners in Belgium, they only sell their products
in their own stores.

15. Which message does your company want to bring across in advertising?

Informative advertising, they want to inform people about the new electronic cars
because these don’t exist for a long time. They also want to show that an electronic
car doesn’t stop driving after a short distance, they really put the focus on the fact
that their batteries last very long and that they also charge very quickly. Mostly even
for free (if you would charge them at one of their chargers).

a. Which message does competition use (take 2 competitors)

Chevrolet and BMW, they also have electric cars, they’re increasing their offerings of
hybrid gasoline-electric cars as well as pure electric vehicles. But companies involved
with developing and producing commercially available electric cars  wat wordt
hiermee bedoeld?
https://www.investopedia.com/ask/answers/120314/who-are-teslas-tsla-main-
competitors.asp

Which media does your company use? Do you see differences vs.
competition?

 Television
 The internet (Twitter, Facebook, Instagram)
Tesla uses a more organic approach to advertising by leveraging popular social
media platforms, over 25% of all conversations about electric cars on social media
are connected to Tesla.

They use Elon Musk (CEO) as advertisement on social media, he focuses on

building his personal brand to promote his companies. Tesla has permeated the hip-
hop culture and is often seen in social media post of rappers like Snoop Dogg, Jay Z
and Dr. Dre.
Tesla itself doesn’t have that many followers on social media, they only have 7
million social media fans, BMW has 35 million, Tesla only has the eighth largest
social media following out of car companies, their true success is due to an extremely
high rate of engagement, this is what makes the young company a force in the
automotive industry. Their social media accounts are as successful or at times more
successful than companies that have four times as many aggregate followers
https://medium.com/@13alexm/tesla-how-to-leverage-social-media-to-build-a-top-
brand-b7a043da68ff