Tesla Inc. is an electric automobile manufacturing American multinational company. Elon Musk, JB Straubel, Wright, Marc Tarpenning, and Martin Eberhard established the automobile company in 2003. The name of the company is inspired by the famous scientist Nikola Tesla. Today, we’ll discuss the market mix of Tesla; it focuses on the 4Ps and 7Ps of Tesla like product, price, place, promotion, people, process, and physical evidence.
The marketing mix of Tesla has brought revolutionary changes in the electric automobile industry and established higher standards for other brands to follow. The mix comprises of 4Ps and 7Ps like product, price, place, promotion, people, process, and physical evidence.
Marketing Mix of Tesla
Let’s discuss the 4Ps and 7Ps in the Marketing Mix of Tesla are as follows;
Products of Tesla
I-Diversified Portfolio
Product is the key element in the marketing mix and it focuses on producing the output for the customers. Tesla has established a well-diversified portfolio consisting of electric-powered vehicles, energy storage systems, and energy generation. However, there are various other products in the pipeline and the developmental stage that the automobile company plans to manufacture in the upcoming years.
II-Electric Vehicles
Tesla has earned a global reputation for the production and manufacturing of eco-friendly electric vehicles. It began with the launch of the famous Model S Sedan electric and then launched Model X, Model 3, and Model Y with various features to target different segments of the customer market.
III-Energy Production
Tesla has recently expanded its product portfolio after the acquisition of SolarCity Corporation. It allowed the company to offer a variety of solar energy equipment, batteries, installation, and maintenance services. However, electric vehicles are still the premium product of the company and the main source of profitability.
Price Strategy of Tesla
I-Cost & Profit Margin
Pricing is a very important element in the marketing mix. However, the pricing strategy of Tesla is just like any other automobile corporation and that is production cost plus acceptable margin of profit. The objective of the company is to meet its profit targets and impact the purchasing decisions of customers.
II-Premium Pricing Strategy
As the name implies, the premium pricing strategy of Tesla’s vehicles is when the company sets fixed prices to show the high-fi and top-quality nature of its products. In order to purchase and own Tesla’s vehicles, customers are aware of the fact that they have to pay high prices for them. The premium pricing vehicles of Tesla show the company’s technological development in the production of innovative and eco-friendly products.
III-Market-Focused Pricing Strategy
Tesla follows the market-focused pricing strategy for the sale of other products like solar energy equipment and systems. The company sets market competitive prices for those products like solar panels. However, the company follows this strategy due to the perception of customers in terms of quality and uniqueness.
Place of Tesla
I-Distribution Network
The place and location where customers could view, try, experience, and purchase Tesla’s product is equally significant as the product and pricing. The real-life experience of the product impacts the purchasing decision of the customers; the company is aware of it. In order to deal with it, Tesla has established a well-diversified and structured distribution network comprising various methods to distribute its products to the target customers.
II-Showrooms, Galleries, Stores
Tesla has established a network of stores, galleries, and showrooms in different location points like shopping malls. Their showrooms allow customers to view, experience, and check the solar power system and energy storage capacity of the electric vehicles. After trying out and experiencing Tesla’s vehicles, the company requires them to complete the transaction on its official website.
III-Service Centers
Tesla has developed service centers across the US and worldwide to offer solar systems, electric-powered vehicles, and energy storage to customers. They also offer repair and maintenance services to Tesla’s vehicles and other products.
The automotive brand has established a charging power station, where the company offers the service of charging their electric vehicles in the quickest possible time.
Promotion of Tesla
I-Marketing
The promotion mix of Tesla comprises all marketing and advertisement activities that the company employs for the promotion of its products and brand. The objective is to attract the attention of customers and help them to make the purchasing decision. However, some of the marketing activities that Tesla employs are as follows;
- Viral Marketing
- Public Relations
- Sales promotion
- Personal selling
- Direct marketing
II-Viral Marketing
Viral marketing is dependent on social media channels to share videos and pictures of Tesla’s vehicles. Model S electric vehicle toy for kids is a great example of viral marketing and it boosted the sale of the company’s products to a great extent.
However, personal is the other popular approach that the company employs to sell its products and approach the target audience in its stores and showrooms.
Process of Tesla
The focus of Tesla’s various processes is on innovation, customer satisfaction, and efficiency. The online ordering process, vehicle customization, and purchase process of Tesla’s vehicle are very simple and easy. In order to maintain high-quality standards, Tesla employs the latest technology and automation processes to increase efficiency and decrease costs.
People Strategy of Tesla
Tesla allocates a significant amount of resources to the training and development of employees, engineers, and sales staff to update their skills and expertise; so that they can reach the company’s mission. The visionary leadership of Elon Musk has allowed the company to set a unique branding position in the market. However, the objective of Tesla is to increase the customer satisfaction level, quickly respond to the complaints of customers, and offer them technical support when they need it.
Physical Evidence of Tesla
The physical evidence of Tesla comprises of color, logo, charging station, vehicles, and stores. Tesla’s showrooms and stores are highly informative and they educate customers about sustainable technology and electric vehicles.
Conclusion: Tesla Marketing Mix
After an in-depth study of the marketing mix of Tesla; we have realized that Tesla is the world’s leading electric-powered automobile manufacturing company. If you are learning about Tesla marketing mix analysis and its strategies, then you should keep in mind the abovementioned elements.
Ahsan is an accomplished researcher and has a deep insight in worldly life affairs. He goes Live 3 days a week on various social media platforms. Other than research writing, he’s a very interesting person.
