Tesla Motors, an electric car manufacturing based company situated in California. Tesla is bringing the world closer to sustainable energy with electric cars, and renewable energy solutions. Now, we will be highlighting the one-of-a-kind marketing strategy of Tesla Motors, which made the brand shine bright in the automobile industry. We will throw light on the interesting marketing strategies and marketing mix of Tesla and how the company has achieved a 0$ marketing budget. The company is currently gaining a lot of attention online compared to its competitors.
Before we race into Tesla’s Marketing Strategy, let’s get started with the company introduction for a better understanding of marketing strategy.
Tesla, Inc. is an American-based company providing clean electric power solutions and electric cars from Palo Alto, California. It specializes in producing clean renewable electric energy and top-notch electric cars for the general public all over the world. Tesla is world-renowned for its Tesla cars and their phenomenal performance slapping on the road. Furthermore, the CEO of Tesla is the world’s renowned entrepreneur Elon Musk.
Tesla is worldwide famous for its 0$ marketing strategy. That’s right. Tesla does spend any funds for its marketing other than its launches. This sounds very strange but this is true. Tesla has leveraged multiple benefits from its operations and directed those leverages into its marketing strategies. Now we have a brief knowledge about the company .let’s dive into its marketing mix.
Marketing mix of Tesla
The marketing mix consists of 4 P’s that helps in the growth, i.e its, provided, Product, Price, Place, and Promotion. It helps in developing the right marketing strategy for the company. Tesla has smart brains working hard in the back end to retain maximum profits out of the business. And, here is the marketing mix of Tesla.
Product Strategy of Tesla
Tesla has its vehicles in three models. Those are Model S, X, and 3. Every one of them is made with amazing motors that can go from 0 to 60 mph in just 3 seconds. Every one of them has its unmistakable eco-accommodating highlights. This brand is making critical changes by utilizing sun-powered innovation in its significant energy frameworks for having better products and enhanced performance.
Place Strategy of Tesla
Tesla doesn’t have any franchises. With its online-based organization claiming stores, this brand eliminated the scaffold of third-party interaction. it utilizes the difficulty to get the idea. Its vehicles are non-debatable; Because this organization doesn’t have a tremendous amount of items like other car organizations, Tesla makes it difficult to get its vehicles. Therefore, just a restricted segment of individuals can get them, and that is the thing that this organization needs.
Pricing Strategy of Tesla
The market cost of Tesla is far higher than other premium models of GM, Ford, Toyota, and so forth. The underlying pace of Tesla’s absolute first EV car model S had a sticker price of $71000! Different models additionally cost between $70000 to $152000!
Yet, the most amazing part is, the interest in these vehicles hasn’t diminished a piece; all things considered, the developing limit has made the cost of these vehicles increase considerably more as Tesla’s assembling plants don’t want to fulfil the high demand of cars.
This brand has utilized the eco-accommodating idea with superior tech, which has driven its estimating procedure to more achievement.
Promotion Strategy of Tesla
Tesla shockingly got a ton of inclusion from its business edges and informality. Its progressive items never required any extra advancement till now. Likewise, Elon Musk, the brainchild business visionary and CEO of Tesla, with his enchanting words and incredible information, has been effectively producing an enormous measure of free exposure oftentimes.
This organization consistently discovers better approaches to make media buzz, which no other organization’s marketing team or CEO could do. since we have gained a brief knowledge about marketing mix. let’s move to another important strategy called market strategy.
Tesla Marketing Strategy
The marketing strategy of Tesla is very interesting as its marketing budget is $0. So, here are some strategies used by Tesla for marketing its product.
Status Driven Product
Tesla built its business i.e electric car over the concept of status-driven business which always provides an upper hand in the market. Such status-driven products derive customers towards them instead of investing funds to grab their attention.
Tesla works on an efficient and effective method of promotion i.e word of mouth. Its goodwill is driven from the customers to the potential customers. Tesla provided the best customer experience it could provide with the bucks, making its customers happy and enthusiastic about its product. They provide quality cars with sensible fashion and tremendous use of technology like autopilot which gains attention in this digital and technology-run world.
As we all know that marketing strategy, as well as Social media marketing, go hand in hand let’s have a glance at how social media marketing works in this company.
Social Media Marketing of Tesla
Tesla’s CEO Elon Musk has provided a great boost to the presence of Tesla in the market. He is socially active on social media and is always into little controversies. His idealistic personality attracts many followers and his social platform becomes a platform for the marketing of Tesla. Every tweet of Elon Musk creates a change in the stock exchange. Such a social presence is beneficial for Tesla in the end for promotion.
Elon Musk has always been into creating buzz all over the internet. His latest buzz was his window glass test of the newly launched cyber truck that was not supposed to break, but it made a great buzz for Tesla, which turned out to be a promotion for Tesla’s cyber truck.
(Source: Les Echos)
– Sales Centers
Tesla does not work as any general auto company does. It does not have any franchises to offer to investors. They have created sales centres that work for sales and service at the same time. Sometimes these franchise owners work more for the incentives rather than for the brand. These centres are run by Tesla itself, therefore, cutting the incentive-based performance of franchise owners.
– After-Sales Service
Tesla provides world-class service support to its customers with facilities to enhance the experience of any Tesla car owner and let them drive their vehicles without any worries. This level of service support turns around customer loyalty and support.
– Authentic Humorous Approach
Tesla’s approach to its products starting from model x celebration mode to sending the Roadster to space justifies that the team of Tesla has some sense of humour. This connects the brand to the public and the leader leading this process is its CEO Elon Musk who creates buzz through his funny and attractive tweets.
– Engages with the Audience
Tesla is always loud and clear about what it is planning and true to its audience. Their launch events with crazy car tests and communicating with the audience through online platforms make the brand active in the market.
With this, we come to the end of the Marketing Strategy of Tesla. Let’s summarise all that we learnt from this analysis.
Tesla is among the leaders of car manufacturers, especially in the category of electric cars. They are doing a great job and it is very evident by the actions that they know what they are doing.
Tesla believes it is better to invest in customers by providing them with quality products rather than spending millions of dollars on marketing and promotion. Tesla’s 0$ marketing strategy is one of a kind and kudos to Tesla are still able to run it without any major issues. If you have made it to the end then it proves you are among the fanbase of Tesla.
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