Strategies of tesla

1. STRATEGIES OF TESLA MOTORS

MARKETING STRATEGIES
PROMOTIONAL STRATEGIES
ADVERTISEMENT STRATEGIES
RESEARCH & DEVELOPMENT STRATEGIES

As Per ELON MUSK.. The MARKETING STRATEGY to bring up the TESLA MOTORS is:

Start with a great product :

Tesla would be dead today if they didn’t build the best car available today. Tesla used electric
technology to build a car that can’t be reproduced with a combustion engine. It’s as fast as a
Porsche and gets the equivalent of 100 miles per gallon. It has very few moving parts. It is the
most aerodynamic car made and has the most cargo space of any car in its class.

Start high and work your way down :

Tesla started with the $100K plus roadster built on a modified Lotus platform. With the Model S,
they started with production of $100K vehicles and are working their way towards the $45k Model
3. By starting high, Tesla is letting early adopters fund technology development. As volume
increases, prices are coming down.

Turn auto industry strengths into weaknesses :

Historically, luxury cars have been sold and justified based on the quality of their engineering.
While most luxury automobile companies tout “performance through engineering” as the one thing
that makes them special and desirable, Tesla marketing focuses on performance through
technology.

Build the community & focus on the experience :

From the beginning, Tesla has made user forums and user community a key part of the online
experience. Tesla marketing highlights the unique Tesla buying and ownership experience and
encourages owners to interact with the company and each other in full public view on the Tesla
site.

PROMOTIONAL STRATEGY…

Create a new multi-channel model: Tesla decided not to build a traditional car dealer network.
Nobody likes car dealers: even buying and servicing a high-end car like a Porsche is a dreadful
experience. • Tesla looked at the car buying process and optimized its sales model to fit the way
people buy cars today. • Since people start online, Tesla designed their process around online
information, commerce, and community. • Their site is unusually clear, clean, and effective. For
people who want to see the car, they are building kiosk stores in malls with Tesla experts who
can’t sell cars and who aren’t commissioned. • When a buyer is ready, they place a refundable
deposit online. If they want to drive a car, they can arrange a test drive after they’ve placed a
deposit.
Essentially, Tesla is selling cars the same way Apple sells the iPhone. Gasoline v/s Electric events
Existing franchise dealers have a fundamental conflict of interest between selling gasoline cars,
which constitute the vast majority of their business, and selling the new technology of electric cars.
It is impossible for them to explain the advantages of going electric without simultaneously
undermining their traditional business. Tesla Model S. Despite being purely electric, it is faster 0-
100 than BMW’s top of the range M5 CONTINUE...
2. 11. Tesla does not spend millions of dollars in a traditional ad campaign. • They let you and I
discuss it, rave about it, hate on it, or rejoice in the spirit of going electric in a Tesla, be the catalyst
to a viral and brilliant marketing campaign. • At the end of the day, Tesla advertising is free.
 Although Tesla Motors has no advertising department, nor an ad team, and certainly, no Chief
Marketing Officer (CMO), spokeswoman Alexis Georgeson, who is a PR person in the company
says: “Right now, the stores are our advertising. We’re very confident we can sell 20,000-plus cars
a year—without paid advertising. It may be something we’ll do years down the road. But it’s
certainly not something we feel is crucial for sales right now. By contrast, Nissan spent $25 million
advertising its Leaf EV in 2012.” The TESLA SHOWROOMS are the biggest advertisements
centers for the company. ADVERTISEMENT STRATEGY..
3. 12. Tesla motor showrooms • They are not located along main roads like every other car dealer,
they are in shopping malls – right alongside brands like Zara, Bloomingdales and Sees Candy.
Hence because of their location, Tesla gets tens of thousands of people walking right past their car,
every single day. • Incredibly, many sales have come from people who had zero interest in buying
a car until they saw Tesla’s showroom (They were probably in the mall to buy a dress or see a
movie). Impressed by the car’s design they could walk right in and immediately talk to a sales
person – rather than have to specifically drive out to a dealership. CONTINUE...

RESEARCH & DEVELOPMENT STRATEGY..

Battery technology Tesla Electric Car Recharging Station (USA, 2014) Unlike other automakers,
Tesla does not use single-purpose, larger format cells. Tesla uses thousands of lithium-ion 18650
commodity cells. 18650 cells are small, cylindrical battery cells, which are usually found in
laptops and other consumer electronics devices. Tesla Motors uses a unique version of these cells,
designed to be cheaper to manufacture and to be lighter than the standard cells. Fast charge
network In 2012, Tesla Motors began building a network of 480-volt fast charging Supercharger
stations to facilitate longer distance journeys in the Model S.
4. 14. CONTINUE... COMPETITIVE ADVANTAGE THE MORE EFFICIENT BATTERY
TECHNOLOGY
5. 15. Becoming Energy Positive Tesla Motors will be co-marketing sustainable energy products
from other companies along with the car. For example, among other choices, we will be offering a
modestly sized and priced solar panel from SolarCity, a photovoltaics company. This system can
be installed on your roof in an out of the way location, because of its small size, or set up as a
carport and will generate about 50 miles per day of electricity. If you travel less than 350 miles per
week, you will therefore be “energy positive” with respect to your personal transportation. Tesla
Motors’ Gigafactory The 35 GWh lithium-ion cell production facility, in partnership with
Panasonic, will cut battery cost in a lower-cost electric vehicle by only $2,800, and create
overcapacity as Tesla likely working on its target of selling 500,000 electric cars in 2020.
FUTURE ROADMAP..