Promotion

 

As Tesla does not hire third party partners and does all marketing and advertising in-house, the best way to educate consumers about the brand and generate awareness is making use of word of mouth and non-traditional advertising.

Tesla already has long waiting lists, and they are rapidly expanding in several markets; stimulating the demand is not the main priority. Furthermore, the outcome of our research shows that gathering information when buying a car is mainly based on word of mouth and Internet sources, which reinforces Tesla needs to focus on communicating their value through these channels.

The communication should also address the problem areas found in during quantitative and qualitative research. Underlining the actual safety ratings of Tesla and that the portfolio’s range increase as soon as the planed infrastructure is in place should be two of the priority topics. Also, emphasizing that the battery life is actually one of the best in the industry will benefit the brand appeal, since a lot of potential consumers show concerns towards that.

The target audience of the new marketing strategy will be upper-middle class and upper class and therefore, on the short term, Tesla will focus their promotional activities mainly in the following tier 1 cities: Shanghai, Beijing and Guangzhou. It is also recommended to invest in selected tier 2 cities at the same time, such as Hangzhou and Xi’An, known hubs that have a high concentration of wealthy consumers.

 

In order to implement the new marketing strategy, the following promotional activities need to be done: 

 

• Provide a Tesla Model S for Chinese version of Top Gear (巅峰拍挡). The recently launched TV show will review the Model S and explain to the viewer the safety features and performance of the car. By being featured on the Chinese TopGear, we can generate discussion among viewers and online platforms such as WeiBo and nudge an interest towards the brand. There are currently more than 13 000 followers on Tesla’s WeiBo account, and the show’s audience should help to increase this number. When the episode about the Model S is aired, Tesla can monitor customer’s comments and feedbacks through online discussions happening on different platforms.

 

• Tesla can have promotional stands/ mini-showrooms in popular places that have premium shops, such as Nanjing road or Xintiandi in Shanghai. This will serve to create brand awareness and familiarity, with the help of a highly qualified team on site to clarify any questions about Tesla and Tesla’s products. Most importantly, the promotional stands can emphasize the safety and environmental benefits of driving a Tesla, the performance of the car, battery durability and charging stations, clarifying to the public those themes that seem to concern them most.

 

• Elon Musk can speak about innovation and sustainability at selected Chinese universities. This will further increase awareness about the environment and how important it is for the future generations to be sustainable. Furthermore, this talk is not focused on Tesla itself, as Elon Musk is not there to promote the product, but to increase awareness of being environmentally friendly. This will also show the Chinese public that Tesla and Mr. Musk see the importance of the Chinese market and that they take seriously the concerns of the Chinese consumer.

 

• An event where Chinese VIPs will drive a Tesla for a few hours. An event where Chinese VIPs will drive a Tesla for a few hours. More than that, they can act as cabdrivers and pick up random people on the streets as a normal taxi – this will likely create an spontaneous buzz and earned (non-paid) media for the brand. The car will be covered with few slogans to be easier to distinguish and inside of the car there will be small cameras to record the passenger’s experience. VIPs would have to be educated about Tesla, the car and its features so that they can explain to the passenger and advocate for the brand.

 

• Small scale Supercharger. A small version of what is a Tesla supercharging station would be positioned in crowded places, and instead of cars, they would be available to recharge personal electronic devices (phones, laptops, etc) for free. While they are waiting for the devices to charge, they can play with interactive screens displaying information about Tesla or ask the staff placed around the charging station. This stunt will also allow Tesla to increase brand awareness and at the same time allow the customer to understand the Supercharger and its performance. Similarly with the previous event, the intention is that people share their experiences on social media and generate free media for the brand.

 

All of the proposed promotional activities are focused more on public relations instead of traditional advertising and on forcing the brand and product into the customer’s head. The success of the strategy relies on word of mouth and digital, which is both efficient and cost effective.