Marketing Strategy

 

Tesla has situated themselves with a main focus on three themes:

• A different driving experience

• Provide zero emission electric power generation options

• Built electric (sport) cars

       →towards a more affordable prize

 

Aiming at getting closer to the customer, they focus on:

• Own shops in highly frequented places 

• Online website and communities

• Usage of celebrity endorsers to reinforce fashionable image

• Advertising at highly visible events

• Patent strategy

• Transparency

• Visibility of CEO

 

Tesla created their own shops to advertise and optimize the buying process without 3rd party dealers. Located in highly frequented streets or shopping malls, a maximum capacity of potential customers is reached. By displaying Tesla in these shops, customers can immediately take a look at the car and can acquire more information if needed.

 

In the US and other western markets Tesla have positioned the Model S as an exclusive all electric sedan. They target the upper middle and upper class that can afford to pay a premium price. In their communication, Tesla has focused on using families with young children to show the car can be family friendly, sporty and exclusive. In the US, the Model S is more affordable than in China, resulting in a target group composed of upper class. The main competitors are the other western luxury sedans as BMW and Mercedes.

 

With their online website, they’re starting to build a community with forums and blogs, where Tesla explains its research & development. It furthermore provides the opportunity for customers to exchange experiences. Tesla is investing a small amount of money in marketing compared to their competitors. They prefer a word of mouth strategy, which includes magazines, newspapers, professional or amateur reviews. On Tesla’s website, one can find some short films, including an award winner, which shows the benefits that one can gain by driving a Tesla; the differences between an electric and a gas vehicle; and several statements by experts.

 

Until recently, Tesla kept their battery technology secret. The main reason for publishing the secret, refers to the main goal of spreading the technology and increasing the amount of electric cars produced. With the current amount of charging stations, not enough people are convinced to buy an electric vehicle. Because Tesla has published their battery technology, more car companies are now able to produce electric cars, which will contribute towards a further installation of charging stations. Overall, Tesla wants to help expand the current electric car market by releasing their patents to the public, driving other manufacturers to produce their own electric cars, keeping in mind that they have to continuously improve their products as well in order to remain market leader.

 

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