THE STATE BANK OF VIETNAM MINISTRY OF EDUCATION AND TRAINING

HO CHI MINH UNIVERSITY OF BANKING

PROJECT: TESLA AND ITS MARKETING STRATEGY

INSTRUCTOR : NGUYỄN THỊ THANH NHÀN

CLASS : MAG309_231_9_TA_L25

NAME STUDENT ID
NGUYỄN THỊ TÂM AN 050609210014
NGUYỄN THỊ HỒNG TƯƠI 050609212313
ĐINH BẢO ANH 050609210052
PHẠM THỊ KIM THẢO 050609212196
NGUYỄN THỊ THẢO NGÂN 050609212059
NGUYỄN VŨ TÂM 050609211266
NGUYỄN THU THẢO 050609212195
 Ho Chi Minh city - Year 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.........................................................................................8

3.3. Price Strategy of Tesla..............................................................................................9

3.4. Place Strategy of Tesla............................................................................................10

3.5. Promotion Strategy of Tesla...................................................................................11

3.6. People Strategy of Tesla..........................................................................................11

3.7. Process Strategy of Tesla........................................................................................11

3.8. Physical Evidence Strategy of Tesla......................................................................12

III. Evaluation of Marketing management activities: advantages and disadvantages. . .12

1. Advantages..................................................................................................................... 12

2. Disadvantage.................................................................................................................. 12

IV. Propose solutions to improve marketing management activities of that enterprise

(product/product line).............................................................................................................13
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 1. Increase brand awareness through targeted advertising campaigns:.......................13

2. Leverage influencer marketing:...................................................................................13

3. Improve customer engagement through social media:...............................................14

4. Expand product offerings:............................................................................................14

5. Enhance the customer experience:...............................................................................14

REFERENCES........................................................................................................................ 15

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 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.

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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:

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.

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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 strategic goal is to capture the mass market,
the major target markets should be sectors 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.
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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.

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,
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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 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

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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.

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

a. 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.

b. 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.

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 c. 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

a. 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.

b. 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.

c. 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.

d. 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
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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.

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.

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 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.

III. Evaluation of Marketing management activities: advantages and disadvantages

1. Advantages

 Currently Tesla is a leading famous brand in the electric vehicle market:

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.

2. Disadvantage

 Restrictions on the construction of vehicle production and distribution centers:

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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.

IV. 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 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:

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.

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.

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 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.

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.

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.

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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
 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/

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