“Tesla,” the name itself creates another level of craze among people. Formerly known as Tesla Motors, is a US-based automobile manufacturer company. This company has always been a talk of the town for its new inventions and activities, and also for Elon Musk, the CEO of Tesla. This brand made a sustainable brand image with its electric vehicles and solar energy products. When Tesla launched its first car in 2008, since then, this company has never failed to amaze people worldwide. This brand may not have a large consumer base like other automobile brands, but the fan base of Tesla is huge! And this is why this brand’s marketing strategy is unique to any other company around the world.
4Ps or Marketing Mix of Tesla
Product Strategy of Tesla
When a brand or company started to do business, it comes with something to offer, either tangible or tangible. That’s what is called a product.
Tesla is known for making sustainable products, especially electric cars. It has always kept its product line, primarily focusing on electric vehicles. It has some mind-blowing EV car models that changed people’s way of thinking towards cars. Till now, Tesla has its cars in three models. Those are Model S, Model X, and Model 3. Each of them is made with powerful engines that can go from 0 to 60 mph within only 3 seconds. All of them have their distinct eco-friendly features. This brand is creating significant change by using solar technology in its major energy systems. But this company isn’t bound to make electric vehicles only, it has released some limited edition lifestyle products as well. For example, in 2018, this brand started to sell wireless smartphone chargers, surfboards, tiny die casts, even shirts, hoodie caps, as well! If you want to gift your child a car before they’re capable of driving a car, you can give them a tiny replica car of Model S. Truly, this brand never loses a chance to surprise us with its unique product strategies.
Price Strategy of Tesla
After making and releasing the product in the market, the company needs to decide the price which will be accepted among its target market. That chosen negotiable value is called price.
Tesla has always shocked people with its new technological inventions. And the ultimate focus of inventing these new technologies is to provide a premium experience that couldn’t be found somewhere else. Tesla has always focused on making sustainable products with an unconventional manufacturing process. And, those are really expensive, especially the battery technology this brand uses consists of high-capacity kilowatt powers. As a result, each car market price of this brand is far higher than other premium models of GM, Ford, and Toyota, etc. The initial rate of Tesla’s very first EV sedan model S had a price tag of $71000! Other models also cost between $70000 to $152000! But the most surprising part is, the demand for these cars hasn’t decreased a bit; instead, the growing capacity has made the price of these Tesla cars to increase even more as Tesla’s manufacturing plants can’t meet the increasing demand. This brand has used the eco-friendly concept with high performance, which has led its pricing strategy into more success.
Place Strategy of Tesla
After releasing the product and deciding the price, a company needs to make its products visible and available among the target groups. And that’s called the place or distribution strategy.
Like all other things, Tesla’s placement and distribution strategy are unique than others in the market. Buying is a Tesla car doesn’t mean that you’ve to go to a dealership’s store, listen to some ponderous description, and getting the desperate push to buy a car from them. Then how Tesla sells its products? Here’s the catch. This brand doesn’t have any dealership. With its online-based company-owned stores, this brand has removed the bridge of third parties. Also, this brand made a global network of showrooms and galleries only to some specific areas. In the placement strategy of this company, it uses the hard to get the concept. Its cars are non-negotiable; for a test drive, you have to deposit $5000 first, and customers have to wait almost four-month to get their delivery. Because this company doesn’t have a vast quantity of products like other automobile companies, that’s why this company isn’t focused on getting more customers and disappoint them with a shortage of supply. Tesla makes it hard to get its cars. As a result, only a limited portion of people can get them, and that’s what this company actually wants. It doesn’t only make premium products; it made its distribution channel premium as well.
Promotion Strategy of Tesla
Marketing strategy is incomplete without promotion. Because it’s the base of making people know about a company’s product.
Have you ever saw any advertisements or promotional campaigns of Tesla in any traditional marketing media? Well, the answer is no, because this company never invested in doing any extensive promotional activities. But still, it manages to be the talk of the town every now and then. How does this company do it? This company surprisingly got a lot of coverage from its sales margins and word of mouth. Its revolutionary products never required any additional promotion till now. Also, Elon Musk, the brainchild entrepreneur and CEO of Tesla, with is charming words and powerful knowledge, has been successfully generating a massive amount of free publicity frequently. The social presence of this company’s CEO has beat all other publicity stunts of automobile companies. This company always finds new ways to create media buzz, which no other company ever did—for example, sending Tesla Roadster to space! Who could’ve thought of something like that!
Summary for the 4Ps of Tesla Motor
Tesla is full of surprises and innovations. Although the EV cars of this company are worldwide popular, the biggest obstacle for this kind of car is the scarcity of charging options. This company couldn’t solve this problem until now, and for that reason, people are still hesitating to adopt EV cars. If Tesla has the intention to become the world leader of the EV manufacturing industry, it should think of how to solve this significant problem of limited charging stations.
Related
References
- https://www.businessinsider.com/tesla-lifestyle-products-2018-8
- https://www.caranddriver.com/tesla
- https://www.investopedia.com/articles/personal-finance/032415/why-are-tesla-cars-so-expensive.asp
- https://www.leadquizzes.com/blog/tesla-marketing-strategy/
- https://www.investopedia.com/articles/active-trading/072115/what-makes-teslas-business-model-different.asp
- https://www.rightmixmarketing.com/marketing/3-lessons-to-learn-from-teslas-marketing-strategy/
- https://www.evolving-digital.com/resources/tesla-marketing-machine
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