BY- MEGHA BANDHAV KILARU

DHANUSH GOUD
CHETAN AKULA
SANTHOSH
DHEERAJ
HARI HARAN
 CONTENTS

 Introduction on the company

 Business vision and mission

 Situational analysis of the company (SWOT)

 Competitive advantage of TESLA

 Strategic directions of company product (BCG Matrix)

 Target market of TESLA

 Marketing Mix of TESLA (4 Ps)

 Follow up on Marketing plan

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 Introduction of TESLA

Tesla was founded in 2003 by a group of engineers who wanted to prove that people
didn’t need to compromise to drive electric – that electric vehicles can be better, quicker
and more fun to drive than gasoline cars. Today, Tesla builds not only all-electric
vehicles
Tesla, Inc. (formerly Tesla Motors, Inc.), is an American automotive and energy
company based in Palo Alto, California. The company specializes in electric car
manufacturing and, through its SolarCity subsidiary, solar panel manufacturing. As of
March 2019, Tesla sells Model S, Model X, and Model 3 cars. It is accepting reservations
for the Model Y, Roadster (2020), and Semi vehicles.
Tesla building its most affordable car yet, Tesla continues to make products accessible
and affordable to more and more people, ultimately accelerating the advent of clean
transport and clean energy production.
Tesla ranked as the world's best selling plug-in passenger car manufacturer in 2018, both
as a brand and by automotive group, with 245,240 units delivered and a market share of
12% of the plug-in segment sales. Tesla vehicle sales in the U.S. increased by 280% from
48,000 in 2017 to 182,400 in 2018, and globally were up by 138% from 2017. In 2019,
Tesla got approval to start manufacturing in China.

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 Vision and Mission of TESLA

Tesla’s mission statement is “to accelerate the world’s transition to sustainable

transport” This new statement indicates a slight but significant shift in the company’s
business, to address market opportunities for renewable energy. In a way, the new
corporate mission recognizes the relevance of the firm’s batteries and related energy
storage products in markets in addition to the electric vehicle market.

Tesla’s vision statement is “to create the most compelling car company of the 21st
century by driving the world’s transition to electric vehicles.” This corporate vision
emphasizes the company’s focus on renewable energy. Specifically, the corporation
addresses the electric vehicle market as a major avenue for facilitating growth of the
global renewable energy market.

Tesla's primary goal is to commercialize electric vehicles, starting with a premium sports
car aimed at early adopters and then moving into more mainstream vehicles, including
sedans and affordable compacts.

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 Situational analysis of TESLA(SWOT)

STRENGTH WEAKNESS OPPORTUNITY THREAT

Well known CEO with a Infrastructure still not Increasing awareness and Competition from
good track record. developed for electric support from established automobile
cars. environmentalism. companies.
Uses TESLA stores
instead of traditional The price of the Large international market Loss of government
distribution dealers. electric cars are potential. subsidies will drive up
expensive and not prices.
Availability of high Advances in tech may
affordable for
technology. increase in battery life Law suits could delay
average consumers. and may spark other innovations.
Popular in younger age
Customers are still innovations.
groups who use social
vary of such
media. New lower price models
innovations and appealing to wide range of
1st company to produce change doesn’t customers
fully luxurious electric happen quickly.
car.
The Tesla battery tech
and management system
is years ahead of the
closest competitors.

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 COMPETITIVE ADVANTAGE OF TESLA

More than an automotive company, Tesla is a technology company building technology

platforms. Betting on Tesla technology is betting on new technology. The company not
only sells cars but has also built the infrastructure necessary to support the operation of
those cars. It has built the network of superchargers, battery swap stations, and service
stations.
The Tesla battery tech and management system is years ahead of the closest competitors.
The close partnership with Panasonic also gives Tesla a huge advantage in production,
material supply, and cost.
The supercharger and destination charger networks. Tesla took a huge risk and invested
in infrastructure. As a result, no other EV manufacturer can deliver the stress-free long
distance driving experience that Tesla can.
Tesla is pushing self-driving technology. It’s one of the best, and getting better.
Within the electric car field, Tesla has the huge advantage of a worldwide fast charging
network, the Tesla Supercharger Network. It also has the longest range, and the fastest
acceleration. It probably has the best battery technology with the 2170 cell used in the
Tesla Model 3.

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Strategic Directions of TESLA products (BCG Matrix)

Model 3 is the combination of design, style, convenience, and moreover safety. It has
been priced as the least expensive model developed. The official launch and delivery of
the first 30 cars said to be on July 28, 2018. So the Model 3 belongs to the problem child
category of the BCG matrix.
Model S is a beautiful model which is packed with functionality, convenience, and safety
along with style and energy. It is said that it has crushed large luxury car competition in
the USA. Out of 10 large luxury car models, the Tesla Model S gobbled up a notable
34% of sales. So, it belongs to the star category of the BCG Matrix.
Model X is a long-range SUV. It has unique designs with falcon wings that give the
vehicle a unique and luxurious look and feel. Tesla is said to be pushing back its
production schedule for the Model 3. The sales for Model X and Model S sales are
soaring but Tesla is still struggling with Model 3 production. This puts the Model 3 in the
Dog category of the BCG matrix.

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BCG matrix of TESLA as a whole company compared to other automobile companies
competing in electric vehicle segment. With large number of tesla electric vehicles being
sold, it has crushed large luxury car competition in the USA. So, it belongs to star
category.

Target market of TESLA

TESLA have tested different ways to segment a market and positioned firmly in the
premium sports car market despite being a newbie with an alternative offer in a well-
established automotive industry.
However, it wasn’t always like this. Before 2008 the Tesla brand was a relatively
unknown, techy brand. Tesla Motors Inc was predominately an engineering firm (not the
fun-loving, Tesla technology brand we have all come to know). Their target market
segmentation and price positioning were vague and undefined, and their ideal target
customers had barely heard of them.
Their target market segmentation incorporates different types of segmentation. It includes
geographic, demographic and psychographic. Their target market segmentation criteria
include multiple variables: i.e., region, density, age, gender, life-cycle stage, occupation,
loyalty, benefits sought, personality traits, social class, and lifestyle.

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Tesla also uses an anticipatory type of positioning within their target market
segmentation process. They position Tesla’s products and services for a market segment
that has low turnover based on forecasts that the turnover will increase in the future as
clean energy becomes a societal norm.
Tesla only really serves one target market. The one they created: i.e., the premium all-
electric sports car market. They are currently working out their plans to cross over into
the everyday market with their Model X series.

Marketing Mix of TESLA (4 Ps)

Product
Tesla produces fully electric vehicles, and energy generation and storage systems, and
also installs and maintains such systems and sells solar electricity. The company also runs
Supercharger power stations, that can be used by customer to charge their vehicles on the
road. A typical Supercharge station has between six and twenty Superchargers.
Model 3
Model X
Model Y
Model S
PRICE

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TESLA pricing strategy can be described as a premium pricing strategy. Tesla electric
vehicles are expensive and customers are willing to pay extra for driving electric
vehicles, rather than traditional fuel vehicle. Unlike other automobile manufacturers,
Tesla does not use geographical pricing strategy. The electric automaker exercises the
pricing policy of “always offering the same prices everywhere aside from the difference
through exchange rates and import duties.”
PLACE
Tesla sells its vehicles through its own sales and service network. Tesla stores and
galleries are highly visible, premium outlets in major metropolitan markets. Some Tesla
stores and galleries combine retail sales and service. Tesla sells its vehicles online and in
company-owned showrooms. The company does not use dealership networks to sell its
products. The electric automaker operates stores and galleries in the US and 29 other
countries worldwide.
PROMOTION
Tesla is very much fond of the social media and it’s the CEO who is the face of the
brand. On social media, compared to other auto giants Tesla is in the top 3,
outperforming Volkswagen, Ford, and Toyota. Tesla doesn’t need paid advertisements to
make sales. Word of mouth and the free media coverage is enough to fuel demand for the
brand. Tesla is said to have built a strong brand identity that requires less promotion and
advertising. Tesla’s website is also an effective channel for sales and marketing, it has
also used Twitter to successfully connect with the large base of fans and followers.

Follow up on Marketing plan

Tesla, Inc. has the strengths to remain successful in the business in the years to come.
However, as identified in this SWOT analysis, there are various issues that the company
must address to maintain its competitiveness and improve its profitability. Tesla must
improve its multinational presence. For example, new facilities and sales operations in
high-potential developing countries can enhance business growth, satisfying Tesla’s
corporate mission and vision statements. Also, the company must continue its significant
investments in research and development (R&D) to produce technologically advanced
products that are competitive. This SWOT analysis shows that Tesla has the potential to
grow in the global automotive market despite aggressive competition.

In considering the results of this SWOT analysis, with the goal of improving business
competitiveness, growth, and development, it is recommended that Tesla Inc.:

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 Expand operations in foreign markets to exploit the global growth of the
renewable energy industry.
 Continue or increase investments for product innovation.
 Diversify the supply chain to reduce supply-side risks.

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