Tesla MotorsDan Orcutt, Rachel Smith, Donna Moulton, Kelsey Rondeau, Lauren Dufrense

Executive Summary

• Telsa’s an eco-friendly company and the current trend in our culture is environmentalism and eco awareness, so the expected outcome in today’s market is to offer an electric car that provides a product that is high in popularity and unique to the existing car market.• By increasing the availability of electric vehicles

to the majority of consumers, we plan to enhance the overall driving experience to buyer through consistently delivering an econ-friendly yet luxurious electric vehicle.

Economic Growth and Stability

• Within the automobile industry, Tesla is positioned within a growing sector• According to a 2014 Green Car Report “Plug in

electric car sales have increased 27% over 2013” (Green Car 2015)

Political Trends

• A new regulation has been passed in the auto industry to satisfy the EPA that will be implemented by 2025• Raises the fuel efficiency standard to approx. 55

miles per gallon, which is 40% decrease in fuel emissions

Legal and Regulatory Laws

• NADA • National Automobile Dealers Association• North Carolina

• President Obama• White House Petition

• State Bans

Technological Advancements

• Tesla is the first American automotive company to emerge in years and with that they also produce lithium-ion battery packs and electric vehicle powertrain components.• With continued improvements to battery

performance and battery technologies the company can expect to see price reductions in battery costs, which would make the electronic vehicle market more competitive.

Sociocultural Trends

• Society is becoming much more environmentally conscious and eco-friendly• Telsa is using this trend to highlight the fact that

the car is electric, a fact that they were not promoting before• Tesla feels it is our responsibility ethically to keep

the environment clean, which is why they created a eco-friendly car

Competitive Environmental Forces• Potential Threats• Supplier power• Buyer power• Threat of substitutes

• Indirect competitors • BMW• Mercedes Benz• Jaguar• Cadillac• Nissan• Toyota

Industry competitors-General Motors Company (GM)-Toyota Motor Corporation (TM) -Pininfarina S.p.A.

Marketing Goals and Objectives

• Mission statement: “Accelerate the world’s transition to sustainable transport”• Goals: Increase the availability of electric

vehicles• Objectives: design, manufacture, and market

socially responsible luxurious electric powered vehicles. Integrate technological innovation as well as luxurious features into our products.

How Tesla meets the Goals and Objectives

• Tesla provides an environmentally friendly car that offers safety to the driver and the atmosphere.

Current Organizational Resources• Tesla is worth approximately $30 billion and is

projected to increase to $700 billion by 2025.• Telsa has achieved sales in 30 countries and

established retail stores in 8 foreign markets• Human Capital – 10,161 employees• Tesla creates the battery and many other parts of

the car in house, but has a close relationship with its suppliers

Suppliers

SWOT MATRIX

Marketing Goals

• Marketing Goal A: Generate demand for our products to increase leads, in turn, driving sales.• Objective A1: Increase demand by an upwards of

10% by years end through increased integrated marketing communications efforts• Objective A2: Allocate a combined total of $6

million towards advertising and promotions to attract new customers.

Marketing Goals

• Marketing Goal B: Build long term brand awareness and manage corporate reputation.• Objective B1: Consistently curate content amongst social

media platforms, exposing the brand, boosting website traffic, cutting marketing costs, and building the business-client relationship. • Objective B2:Utilize both traditional and digital

advertising among various media outlets, as well as, pay per click ads on websites to targeted demographics.

Product Market Combinations

• New product, existing market.• Product development – create growth by selling

new products in existing markets

Segmentation

• Segmentation- Tesla focuses on the upper-class males who are looking for a luxury sports car. Telsa's drive as well as a sports car putting them in direct competition with brands like BMW and Audi.

Target

• Upper class business executives and other affluent members of society.• Relatively small niche market• These are the early adapters, and they want

cutting edge technology and extravagant features.

Positioning

• Positioning themselves a competitive luxury sports car that is also electric. • When Tesla first made their car, electric cars

weren’t “cool,” so they positioned themselves as a luxury vehicle to entice consumers

Product Strategy

• Major features and benefits: zero emissions, seats 5 people, battery operated, 2 trunks, autopilot, self-parking• Differentiation/positioning: ground-breaking, safe,

and luxurious• Customer service strategy: Tesla’s Financing Program

offers customers to sell their Tesla back at a comparable price to a BMW, Audi or other comparable seller.

Pricing Strategy• The brand is a premium brand and has adopted

premium pricing strategies for their products. • Their flagship model the Roadster started with a

price point of 100,000+, this pricing strategy accommodates the high unit costs/low unit volume sales which is typical of the new technology marketing model. • The company’s ultimate goal is to sell their brand to

more mainstream consumers at affordable prices. • Breakeven point is 8,000 units annually, which is

$560 million.

Promotion Strategy

• Tesla Does not pay for advertising like commercials or print ads, all of their promotional budget goes towards events like car shows.• They rely on the uniqueness of the product to

create a buzz and bring in the right kind of consumers.

Promotional Budget

Operational Budget

Works Cited• BMW: advertising spending in the U.S. 2013 | Statistic• Gilbert, Ben. "Why Tesla motors can't sell in the U. S." July 2014.

Engadget. • Mangram, Myles Edwin. "The Globalization of Tesla Motors: A

Strategic Marketing Plan • Analysis." Journal of Strategic Marketing 20.4 (2012): 289-312.

Business Source Premier. Web. 28 Apr. 2015.• Muller, Joann. "5 Big Trends Driving The Auto Industry in

2015." Forbes. Forbes Magazine, 18 Jan. 2015. Web. 30 Apr. 2015.• Musk, Elon. "United States Securities and Exchange Commission."

26 Feb. 2014. Web. 5 May 2015. • "Support." Roadside Assistance & Tech Support. N.p., n.d. Web. 07

May 2015.