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Marketing Management - Tesla

University: London School of Commerce

  • Unit No: 5
  • Level: High school
  • Pages: 20 / Words 4990
  • Paper Type: Assignment
  • Course Code: N/A
  • Downloads: 558

Table of Content

Question :

This assessment will cover the following questions:

  • Provide in-depth marketing research skills with suitable approach of searching, collecting and interpreting and evaluating data to support the formation of the suitable marketing plan.
  • Tesla is an electric automotive manufacturer company. Implement the findings to creation and positioning a new unique selling proposition.
  • Highlights the skills in carrying out a comprehensive marketing audit and identifying Opportunities and Threats which will change the industry.
Answer :
Organization Selected : Tesla


The ultimate goal of marketing management is the generation of acceptable profits which could be achieved by selling of products and services offered to the consumers. Creating tactics as well as strategies to satisfy the demands for the company by generation of policies and programs of marketing under the process of implementation, controlling, organising and planning is known as marketing management. Marketing is done in order to create and maintain the organisational demands of services and goods. Moreover, the demands in the market of the product or level of its compositions is been controled by the functions of business known as marketing. In the field of marketing all the manegerial functions are been performed by the marketing management. Thus, implementations of appropriate strategies as well as identifications of market opportunities is been explored by the marketing management, therefore, promoting trade as well as consumer need access is been done by the creative management functions known as marketing management (Mullakhmetov and et.al, 2016). The report will discuss about the electric vehicle market of UK which holds shares the approx market value of around $2.4 billion in 2018 and thus provides a great opportunity for growth to automative companies (United Kingdom electric vehicle market by vehicle type, 2020). In this report it has been discussed about the automotive company Tesla, where it has been discussed about its industries background and its market positioning, followed by the PESTEL and SWOT analysis of the company Tesla in order to determine its potentials of market growth. Lasty, in this report it has been discussed about the electrical bus which is a new product which the company Tesla could launch on the basis of its SWOT analysis followed by the 4P's model for the new product (Foroudi and et.al, 2017).

1 Industry Background, Company Background and Market Positioning


Automotive industry is a wide range of organizations which involves designing, development, marketing, manufacturing and selling of motor vehicles. Compared to revenue aspect this sector has the largest revenue generation (Chernev, 2018). The industry has a turnover of £82 billion with around 1.5 million passenger vehicles including 85,000 commercial vehicles. The industry lost a lot of customers in 2014. Around 2.71 million engines were produced in 2018 in United Kingdom. There are 38,500 employees in this industry. Automotive industry in now investing in electrical Buss so that non-renewable resources can be preserved and not exploited. United Kingdom is having the 12th largest producer of automotive industry in the world which is a great improvement for the organization. There are safety measures which are being added in automotive vehicles because it is basic right of customers to get safety with products which they are purchasing. Air bags have been added in Buss so that if there are any accidents then customers are safe. Electric Buss are still being improved so that customers can get luxury which consumers expect. Customer needs are changing therefore designing of Buss have to be improved or changed according to trends of customers.


Tesla is an energy storage and automotive company which is producing electrical Buss so that they can preserve non-renewable resources. As of 2018, company had 45,000 employees with a net income of $0.98 billion and revenue of $21.46 billion (Tesla, Inc, 2020). Tesla has the highest sales of electronic vehicles as of 2018. Tesla is producing out at least 367,500 vehicles as of 2019. There are a lot of improvement or development which is taking place in vehicles which company is producing so that they can benefit from that factor. Needs and demands of customers are being met so that they can make most from that factor so that they can capture more market and customers. Tesla has introduced power pack, power wall, mega pack batteries, solar panels, solar roof tiles, and other products related to automotive industry (Haider and et.al., 2017). With time Tesla is being able to reach out the customers better and the new product Tesla has come up with will capture the industry very quickly. 


It is very important for Tesla to have a segmented market for themselves because only then the company will be able to have a competitive advantage in market (Deepak and Jeyakumar, 2019). The company has developed a different customer base for themselves so that they can have a competitive advantage and that is done by the company by providing the customers with electrical Buss. Aim and objective of the company is well-placed in market for a long run and that is making the environment of the world improve so that the customers can have a healthy lifestyle. Using of renewable resources is a very brilliant idea which the organization has come up with. This method is not being used in the market which is making the organization have an upper hand for themselves. Experience in this field will make Tesla have a competitive advantage in market. 


Tesla has targeted the market in a very different approach which will make the organization have a long run in the market. Customers are not being targeted by the organization because the vision of the company is very clear with the customers therefore there are a lot of customers which are getting attracted in the organization (Kotler and et.al., 2018). Customers understand the view point of Tesla which is a great advantage for the organization since there are a lot of supports which the organization has made over years. There are a lot of changes are taking place in the organization so that the firm can attract more customers by providing them the right product. 


Loyal customers are there in the organization which is making the organization have a competitive advantage in the market. The brand image is very well-built by Tesla so that they can attract more customers in the organization. It is a very important factor for the organization to get more customers to understand the organizations vision and mission so that the organization can make a better understanding and revenue for themselves. Customers have a lot of complains about the products Tesla is making therefore to gain the trust of the customers Tesla is working very hard to make the changes and satisfy their customers from time to time. 


The organization is not online but the customers are updated about the changes which are taking place in the business. Tesla will have to start online marketing for themselves so that they can reach out to more customers in the organization (Keegan, 2017). Customers must be contacted from time to time so that Tesla can inform the customers that what are the changes which are taking place in the organization. Online marketing will also help Tesla to have an automated customer's in the firm. It is very essential for the organization to have more customers who like this method which Tesla has taken for themselves so that the customers shift from fuel to gas and electrical. Tesla has a very well-made structure for themselves so that they can make the change's int he market accordingly. Customers will shift from other products to Tesla products very soon because this is a requirement in the world to use these type of Buss.

Tesla is unique because they are having a very futuristic plan for market which is making the company have a lot of advantage. Improvement is still in process so that all the demands can be met which will make the customers more satisfied. Luxury aspect of the customers is also being dealt with in the company which is making the company have a uniqueness in the organization. Luxury is being added to the electrical Buss as much as possible so that the customers get attracted to the products of Tesla.

Unique Selling Proposition

Tesla is unique because they are having a very futuristic plan for market which is making the company have a lot of advantage. Improvement is still in process so that all the demands can be met which will make the customers more satisfied. Luxury aspect of the customers is also being dealt with in the company which is making the company have a uniqueness in the organization. Tesla is one of the leading company because they have a control over the nmarket in their own ways because they have understood the demands of the cusomters. It is very important for the organization to understand the demands and needs of the cusomters so that they can make the proper place for themselves in the market.

2. Marketing audit internal and external of the company Tesla

Tesla has vast range of opportunities in UK market for its electrical vehicles. The factors such as sruging pollution level, affordability and increasing need of low and premium priced elecrical vehicels encourages the growth of electrical vehicles in UK market. Climate change act 2008 of UK and climate control commission UK have been taking initiatives to encourage the support for electrical vehicles. It is also incrasing populatity of these products among UK target markets. The external market audit for the electrical vehciles is as follows:

PESTEL analysis of Tesla

Political factors that affecting Tesla

The various incentives provided by the government gives the organisation Tesla an opportunity to strengthen its financial performance. Purchasing an electric vehicle could qualify the customer with tax credit in accordance to the Federal government i.e. Upto $7500 tax credit is been offered by the government (The Plug-In Electric Vehicle Tax Credit, 2019). The strategy of intensive growth of Tesla as well as for its favorable environment of business, there are several major markets for the industry of automobile.

Developments of electrical and hybrid vehicles is been supported by the government. Loan at a low interest of $465 is been granted by the department of justice (The Plug-In Electric Vehicle Tax Credit, 2019). Such kind of assistance enhances the easiness for the organsiation to promote and develop electrical vehicles which are not only innovative and efficient but are also essential for the sustainability and development goals of UK government. Expansion in products by the company is been facilitated by the amount of loan granted to the company. Thus, a move to next step is been helped by the loan that is granted (Wagner and Eggert, 2016).

Read also: BU7006 International Marketing Strategy - McDonald

Economic factors that are affecting Tesla

Sustainable development and regulation of pollution levels through automobile industry is one of the essential criteria and pollicy of UK government. Thus government is providing loans and necessary financial support to organisations which are working with electrical vehicles. It is making UK as an attractive market for growth on the basis of strong and supportive economy which has favourable environment for the same.

Global economies commection with electric Bus is gaining popularity everyday. By the year 2020 it is expected that the growth in global economy would be remaining 3%. market of electric vehicle in the year 2018 is around $39.8 billion and it is expected that by 2025 it would be reaching $1.5 trillion (Personal electric vehicle EV cars market size is expected to exhibit USD 1.5 trillion by 2025, 2020). For the company to capatalize, economic factor is one of the great opportunity available for the company. Decrease in the cost of the battries is the another economic factor as cost of electric vehicle is mostly dependent on the cost of battery. One of the great opportynuity is the developments of companies powerwall batteries as the company is making it more over accessible as well as affordable such that making themselves capable to do productions of more affordable electric vehicles.

One of the another good news for the company Tesla is the reduction in the cost of the material as with the lower cost of materials the consumers of the Bus could be availed with the more cost effective vehicles (Usui, 2017).

Social factors affecting the Tesla

As for the individuals who prefer most of the eco friendly products, than the concept of electric Buss is facinating these individuals. As for the environment it is better to use Buss that run on electricity rather than on the fuel. Running cost as well as terms of maintenance are comparetively lower for the electric Buss thus this makes it less expensive. Moreover, automobiles by these company is sustainable to the environment. Additionally, social status is the another social factor affecting the business of the comapany as it is expected that the social stutus of and individual is been increased by having an electric Bus. UK social groups are greatly felxible and concerned about the need of environmental protection and sustainability. Thus launching of electrical vehicles is greatly appreciated by communities. The flexibility from people will benefit Tesla in positive way for making its new product successful.

Technological factors that are affecting Tesla

The company is been affected positively as well as negatively due to rapid technological changes, thus threats as well as opportunies both are been offered by the technology to the organisation Tesla. As to to remain at the competitive edge in the market place the technology helps in managing the company. Therefore, the portfolio of products by the company is been effectively enhanced by the technology. Moreover, advancement in technology could bring more competitive advantage for the company over its competitors as the company, if possible, is expecting to make fully driverless Bus in the near furture. In terms of technology UK can be considered as good choice for the Tesla. Organisation will get all necessary technologies and resources for the development of its product. However the quick and increasing technological devleopment also encourages the tough competition for the Tesla as more and more service providers are coming up with new and advanced technology based solutions for electric vehicles.

It is obvious that the technologies became obsolete with the passage of time so it is essential to get regular update and upgrades in an obsolete technology. Moreover, the company Tesla might had to face the negative as well as positive impacts of the technology is all of its electric vehicles is obsolete on the roads.

Environmental factors that are affecting Tesla

Usage of electicity for moving as well as development of Buss which are environment friendly is one of the key concern that the company Tesla is currently focusing on. The this creates several opportunities for the company Tesla in regards to the environment factors. As in the traditional Buss the emission of Busbon in the environment has brought great negative impact but now the company is more concern towards the environmental factors thus it is stricty following regualtions of environment and developing the Buss such that it would barely have negative impact on the environment. UK is greatly concerned with for the issue of its environmental sustainability. Thus environment factors such as need of electric vehicle to reduce pollution is helpful for success of the new Tesla product.

Addtionally, the company became successful in becoming the leader of the industry as it had build a very strong recognisation as well as brand image while being very much concern towards the environment. Concept of energy saving so as to maintain its focus on sustainability is been achieved by the developments of electric vehicles. Furthermore, the organisation is focusing on to its supply chain so that it could be more energy efficient, this is achieved by the company's strict concern towards the environmental impacts and thus in this way the company has gained good reputations in the market place (Chonko and Hunt, 2018).

Legal factor that are affecting Tesla

The delivery of Bus to the customers by the company Tesla is been affected by the several of the law suits and regulatory issues. As temporarly many of the states had blocked the direct delivery of Buss to the customers by the manufacturers itself. An engagement of third party delership is very much essential in such states according to the legislations of those states. Thus, this has affected the profitability of the company as dealers keep their margins for giving services to the customers and this makes the Bus more expensive. Regualtions regarding consumptions of energy as well as rights of patents are the other legal issues that affects the company. Thus, in order to have smooth running of the operations of the business the company Tesla had comply several regulations and laws. Along with strict copyright and patent regulation UK also has strict regulation for employment and business regulation. The failure to comply with such regulations or the legal disputes in UK can lead to great losses for the Tesla. Thus for making electrical buses successful in UK, Tesla must ensure that it ensures the legal compliance.

SWOT analysis of Tesla

Strength of Tesla

Brand equity in automobile industry is one of important strength possessed by the company Tesla. The thing that matters most is the customers satisfaction as well as their good experience with the product. The company Tesla excels both increased competitions as well as customers. Due to innovative nature the brand Tesla has acquired lots of fame and due to which it has got huge sales. One of the another reason of trusted and strong brand image is the company's quality product as well as excellent user experiences. Thus, achievement of higher revenue and sales along with the extra competive advantage is been achieved by this organisation due to its strong brand equity.

All across the globe the company is expanding its galleries and stores. Only in china and US the company is having more than 30 service stations and stores. Moreover, for inhancing the customer base the brand is expanding it super charger network by investing more and more in opening its galleries and stores thus these stores could be used for the purpose of marketing as well. Arracting to higher end customers is done by brands premium galleries and stores at the metropolitan cities. Building of supercharge network throughout north America, Europe and Asia so as to enhance its customers convenience all across the geographic areas.

Quality is core focus since the foundations of the company. Along with it the brand is known for its Buss of premium segments. Attractive styling is the another strength of the company apart from its high performances. Addtionally, the company has produced best electric Bus in the world while focusing on its innovation technologies. Furthermore, the organisation had kept on increasing its investments in the development and research of its products every year. As the company is expertise in automotive engineering and thus, this made the company global producers of electric vehicles (Johnsen, 2018).

Weaknesses of Tesla

With the every year, the company's operational cost is been increasing. Not only the quality of raw material that has been used in the Buss is adding to the revenue cost but the cost at the several other areas too. For the growth in super charge network as well as in its dealers the company is continuously ramping up its productions. Thus, over the past three years there is a faster growth that has been observed in the companies revenue costs.

The growth in the business as well as its competitiveness is been reduced by the companies weaknesses. The following weaknesses which makes the companies furture growth suffers are

  • Higher prises
  • Limited chain of supply
  • Limited presence in the market

limited presence in the market is one of key weakness of the company Tesla. As in terms of market the organisation is only been able to generate its major revenue through US and a small portion from China and other developing countries. Moreover, in the overseas market, the rapid growth developments proved to be the weakness for the companies internal strategic factors. Addtionally, the company's rapid expansions in the other markets is been limited by the it weakness in its supply chain network. Buss having internal combustion engines are the products of company Tesla whose prices are comparetively higher than the other competing Bus companies. Therefore, the market share of the company as well as customer base is been highly affected by the high prices of the companies product. Thus, this had made the company slower in generating huge revenues. Furthermore, in order to have rapid growth in global world as well as to have global expansions, the company Tesla is needed to reform its strategies so that it will have positive impact on the business of the company.

Opportunities of Tesla

  • The various opportunities possesed by the company Tesla are
  • Diversification in the busniness
  • Expansions in the global supply chain
  • Expansions in the global sale

Expansion in the global sales is one of the great opportunity that is possesed by the company Tesla as it is facing the weakness in the same. As in most of the economies the brand has insufficiently lower presence in the market such as in the Asian market the company is having comparetively very lower presence thus, it could increase its revenue by expanding in these market and in several other renewable energy markets. Expansions in sales as well as in the production operations is been supported by the supply chain management which is the opportunity that the company Tesla could possess in order to support its global expansions. Moreover, through diversification in the products the company could easily inhance its performance in global sales just like other larger firms such as general motors. Exposures to the risks in the markets of automobiles could be reduced by the acquiring and establishing of factors of external strategies. Therefore, international expansions of the business of Tesla is been benifited by the Tesla's SWOT analysis.

Threats faced by Tesla

The company Tesla is facing several threats that prevents it to maximize its profits from its various opportunities and strengths. Such as due to competitions in the electric vehicles global market the company could not been able to generate the desired or potential revenue nor from its solar panels, batteries and etc. Although the company is successful in generating huge profits but it is essential for the company to address its threats so as to maintain resilience despite of automotive industries changing environment.

  • Regulations of dealerships
  • Fluctuations in the prices of the materials
  • Aggressive competions

Competitions between automotive companies is been very aggressive. As currently several other companies started producing the the electric Buss which has proved to be the biggest threat to the company Tesla. On one of the weakness of the compnay it could be determined that fluctuations in the prices of the raw material is the another threat which the company Tesla is facing. For the storage of energy products, the compnay is concern towards the increasing costs of Lithium and as its price is fluctuating, thus this had proved the another threat to the comany. Regulations in dealerships is one of the another threat faced by this brand of Tesla. As with the involvement of dealership i.e. Third party involvement the price of the product gets increases, thus in this way the company could get higher profits by direct selling of the Buss to the customers. But on the other had several of the states does not allow direct selling and had made regutaions that there must be an involvement of third party in the business. Therefore, this had created another threat for the company in doing its business. Furthermore, it could be considered that in order to remain competitive in front of the firms of other large automobiles the company Tesla must maintain its innovative invenstions in the automobile industry (Quelch, 2017).

3 New product that the company Tesla could launch

The new product the company Tesla could launch is buses. In order to stand above the other competitions the company Tesla uses the strategy of marketing mix. Thus in the huge industry of automobile in order to have competitive advantage the company Tesla regularly undergos the analysis of 4P's which are price, promotion, place and product. In the several components of marketing mix the company Tesla maintains its manegerial control significantly. Thus, for the purpose to have maximum profits as well as to reach the target customers the company Busies out such strategies. Moreover, in order to expand in the overseas market as well as penetrate in the market usages of strategy of mareting mix support the company to a greate extent (Chonko and Hunt, 2018).


Selling of product to the targetted customer by identification of organisational output is one of the element of marketing mix known as product. As the company is concern towards the production of product which the could give the company the maximum profits, thus for this the organisation tends to produce which could fulfil the objectives of the corporations. The organisation Tesla could launch Tesla Buses, as currently the company is not engaged in the production of this product. Thus, by doing business in this product the company would capable to generate huge profits and could increase its revenue as well as its market share (Johnsen, 2018). These buses will have fixed pantographs for charging at various bus stops as well as in depot. They will also consist of monitoring and controlling units so taht charging can be regulateld and batteries can be safeguarded.


For the new electirical bus initially Tesla will launch its products in UK only instead of haivng ga global approach unlike its other products. Reaching to the targeted customer is done by analysis of place. This analysis could be Busried out by the element of marketing mix. Vanues and places are considered to be very important where the comany could do its business. Generally, the company Tesla expand its products rather than expansion in place attribute. Tesla will launch its product in entire UK on various locations. Eacho f the UK destination will have more than one store as well as galleries the company could add more places for reaching its desired customers. Currently the company has several of its charging stations, service centers as well as its self owned galleries and stores to better serve its customers with the best in class services.


In order to develop the corporate brand and to present in front of its customers in accordance to their expectations is Busried out by the tactics and strategies of marketing communication. There fore, the promotional mix of the organisation Tesla uses various powerful strategies to convey its message of new product of Tesla bus through direct marketing, sales promotions, through public relations, from personal selling as well as through viral marketing.


This element of marketing mix covers the price levels as well as its related strategies. As the price of the product is totally dependent on the scale of production, profitability targets as well as level of quality. As the products of the company Tesla are produced on the limited production scales, with higher profitability as well as by maintaing the premium brand product the company uses pricing strategies such as market oriented pricing as well as premium pricing strategy. The premium pricing strategy is totally dependent on the company's unique product which could capabilities to have higher level of profitability margins (Quelch, 2017). The proposed price for the electric vehicles will be $500,000.


This report could be concluded as, the ultimate goal of marketing management is the generation of acceptable profits which could be achieved by selling of products and services offered to the consumers. Creating tactics as well as strategies to satisfy the demands for the company by generation of policies and programs of marketing under the process of implementation, controlling, organising and planning is known as marketing management. Marketing is done in order to create and maintain the organisational demands of services and goods. Moreover, the demands in the market of the product or level of its compositions is been controled by the functions of business known as marketing. In the field of marketing all the manegerial functions are been performed by the marketing management. Thus, implementations of appropriate strategies as well as identifications of market opportunities is been explored by the marketing management, therefore, promoting trade as well as consumer need access is been done by the creative management functions known as marketing management (Kotabe and Helsen, 2020). If you want to receive an original document according to your university guidelines, then take our assignment writing help at the best price.


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