Tesla Model 3 - Marketing Plan

Meet the Team

Abdulrahman Joshua Hughes

Hajjaj
Aryan Sagar Zhengyao Wang
Presentation Agenda
Agenda Items

● Tesla Introduction

● Strategic Business Units (SBUs)

● Mission and Vision

● Canadian Presence

● PESTEL Analysis

● Competitor and SWOT Analysis

● Marketing Mix

● Target Market Analysis

● Presentation Summary
Company/Organization
Overview
Introduction To Tesla
● Tesla founded in 2003 by Martin Eberhard and Marc
Tarpenning.
● Focus on high-performing, environmentally friendly
electric vehicles.
● Elon Musk's pivotal role as CEO from 2008.
SBU’s

● Research and Development: Investment in automation, materials, and software.

● Production: In-house manufacturing in Fremont, California.
● Supply Chain Strategy: Secured relationships with suppliers.
● Human Resources: Innovative hiring, global expansion.
● Total Quality Management: Balancing productivity and quality.
● Marketing: Relies on viral, social media, and limited advertising.
● Pricing Strategy: Mix of premium and market-oriented pricing.
● Distribution Channels: Direct-to-consumer strategy, online sales focus.
Mission And Vision
● Mission: Accelerating the global transition to sustainable
energy.
● Vision: Becoming the most compelling car company,
leading the shift to electric vehicles.
Canadian Presence
● Growing presence with over 1,200 employees.
● Store and Supercharger locations across provinces.
● Potential future plans for a manufacturing facility in Canada.
PESTEL Analysis

Key Aspects of PESTEL Analysis

● Political Factors

● Economic Factors

● Social Factors

● Technological Factors

● Environmental Factors

● Legal Factors
PESTEL Analysis for Tesla
Political

● Government incentives for EV purchase favor Tesla

● Gas companies oppose EVs due to profit loss

● Challenges in meeting emissions regulations due to Economic

manufacturing emissions

● Inflation affects consumer purchasing power and

affordability of Tesla's products

● Tesla's market limited by low purchasing power, but

benefits from luxury brand image

● Tesla owners benefit from low cost of maintenance and

fuel, impacting their purchasing power and satisfaction
PESTEL Analysis for Tesla Cont.
Technological

● Advancements in EV technology and software, including

self-driving capabilities.

Social ● Improvements to Tesla's batteries, making them more

efficient and durable.

● The importance of charging infrastructure for the

● Impact of Tesla's social media presence and Elon Musk's
adoption of EVs.
influence on brand image.

● Growing environmental awareness and its effect on

consumer attitudes towards EVs.

● Public perceptions and concerns about EVs, specifically

in Canada.
PESTEL Analysis for Tesla Cont.
Environmental

● EVs have a significantly lower environmental impact

than gas cars.

● Challenges in battery disposal and recycling.

● Impact of Green Energy Trends on Tesla's business

Legal

● Regulations on Autonomous Driving

● Cybersecurity and Data Collection implications

● Open Intellectual Property risks

Competitor and SWOT Analysis

General Motors Hyundai

Competitor Marketing Mix Analysis
General Motors Hyundai Tesla

Large Portfolio: wide range of vehicles. Electric Sedans, Coupes

Product Including Sedans, Coupes, SUVs, Crossovers, etc. and SUVs
EV models available

EV models priced to EV models priced and CA$50k - 100k

Price avoid direct competition featured similarly to
with Tesla Tesla, direct competition

Global Dealership (12,358 VS 5,000) 438 Total Stores around

Place the world

Discounts
Promotion Multichannel advertisement

Event marketing and Sponsorship

Competitor SWOT Analysis
General Hyundai Tesla
Motors
Strength Good Reputation Cost Efficiency Leader of EV market
Large Company Design Innovation
Many Brands Surge in Sales

Weakness Labor Relations and Low price and stereotype of poor Dependence on Elon Musk
Workforce management quality lead to bad reputation Supply-Demand Unbalance
Strikes Safety Concerns

Opportunities Reputation in the Advantage in both ICE vehicles and Market Expansion
conservative segment EV sector Affordable Model Launch
helps change perception Truck Segment
of EVs of people who Fuel-efficient ICE models can
despise it compete EVs

Threats Latecomer of EV industry Intense competition Intense Competition

full of competition Threats from Chinese and Japanese Product Defects
Government Policies and automakers Long-term Credibility
trend
Competitor Marketing Share Breakdown
Marketing Mix
Analysis
Product/Service and Positioning Strategy for Tesla
Positioning Strategy Product/Service Strategy

● Tesla positions itself as a premium luxury brand.
● Marketing strategy involves direct-to-consumer sales.
● Dealerships are located in popular areas globally.
● Tesla faces the challenge of being a newer company.
● To secure its market position, Tesla aims to exceed
expectations in key areas.
● Model 3 is the first EV to surpass 1 million units sold
globally.
● Model 3 is classed as a premium-luxury electric vehicle.
● Model 3 appeals to a younger demographic, aged 35-44.
● Model 3 also appeals to those with a slightly lower
income of 50-100K.
Pricing and Promotion/Advertising for Tesla
Promotion/Advertising Strategy Pricing Strategy

● Unconventional approach to advertising and promotion,
gaining rapid attention without a significant advertising
budget.
● Products have a certain prestigious factor, making them
attractive without traditional advertising.
● Opposite approach to pricing, building a reputable brand
image to demand competitive prices.
● Direct selling model, utilizing online sales to decrease
costs and demand higher prices.

● Masterful approach to publicity and customer experience,

utilizing attention-grabbing 'stunts' for mass media
attention.
Target Market Analysis
Key Aspects of the Target Market

● Geographic and Demographic information

● Psychographic traits

● Behavioral patterns
GEOGRAPHIC
● Sustainable Urban Centres

https://www.cntraveler.com/gallery/best-things-to-do-in-toronto https://electricautonomy.ca/2023/08/04/tesla-supercharger-kwh-billing-canada/
DEMOGRAPHICS
● Tech-Savvy Generations
● Affluent Urban Professionals

https://www.coxautoinc.com/market-insights/can-tesla-find-new-buyers/
PSYCHOGRAPHIC
● Environmental consciousness
● Long-term Cost Effectiveness
● Technology and Futuristism Enthusiasts
A Brief Comparison of the Vehicle Price and Theoretical Energy Cost per KM of Tesla Model 3 and Cadillac CT4 2023

Tesla Model 3 Cost of fully charging the Theoretical Range Energy Cost per Vehicle Price
Standard Version vehicle during Ultra-Low Kilometer
Battery kWh Overnight Period in
Ontario
57.5 kWh CA$1.61 @ 2.8 cents /kWh 438 km
3.7 cents/km CA$53,999

2023 Cadillac CT4 Cost of fully fueling the Theoretical Range Based Energy Cost Per Vehicle Price
V-Series AWD Fuel vehicle for #91 Gasoline on Average Fuel Kilometer
Capacity Priced 160 cents/L Consumption of 10.2L
/100km

64 L CA$102.4 @ 160 cents /L 626 km

16.4 cents/km CA$50,373
BEHAVIORAL
● Performance Focus
● City Driving and Commuting

https://www.bbc.com/news/magazine-19660765 https://newatlas.com/electric-gt-epcs-race-ready-tesla-p100dl-barcelona/55163/
Conclusion
● Overall Tesla has done a very good job marketing the Model 3, maintaining a higher
market share than both competitors.
● The PESTEL Analysis reveals that Tesla isn’t infallible, and even slight changes in
the market could make a huge impact on sales.
● It is also clear that these cars, and the new features that Tesla plans on releasing to the
public, are an integral part of their strategy, focusing their efforts on marketing
towards a younger, more tech-savvy and eco-conscious generation.
● Despite being one of the youngest car companies, their focus on the EV market
allowed Tesla to become the powerful force that it is today.
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