The Marketing Mix of Tesla tells the 4ps (Product, Price, Place, and Promotion) of the best American multinational automotive and clean energy company – Tesla!
Tesla, Inc. (formerly Tesla Motors, Inc.) is an American multinational corporation that specializes in electric vehicles, energy storage, and solar panel manufacturing based in Palo Alto, California. Founded in July 2003, the company specializes in electric cars, lithium-ion battery energy storage, and residential photovoltaic panels (through the subsidiary company named Tesla Energy) and it is one of the most valuable car makers by market capitalization.
The CEO of Tesla is Elon Musk.
The company’s mission is to accelerate the world’s transition to sustainable energy. Tesla’s products include electric cars, battery energy storage, and solar products. The company operates primarily in North America, China, and Europe.
Let’s start with the Marketing Mix of Tesla to learn more about its product, price, promotion, and distribution approaches.
Product In The Marketing Mix Of Tesla
The Product element of the marketing mix refers to the outputs or products that an organization sells to its target customers. In the case of Tesla, the company operates in the automotive, energy storage, and energy generation markets. Profitable products are those that provide value that customers are willing to pay for.
Tesla uses product development to achieve its corporate objectives in this aspect of the marketing mix. Additionally, the company has gradually expanded its product mix by introducing new product lines.
As an international business, Tesla offers a range of products including automobiles, electric vehicle powertrain components, batteries and energy storage systems, and solar panels. The company is best known for its electric vehicles and its Model S sedan is one of the world’s most popular electric cars.
However, Tesla also manufactures powertrain components for other car manufacturers, which aligns with its mission of facilitating the world’s transition to electric vehicles and sustainable energy.
In addition to cars, Tesla also offers batteries for both home and industrial use. After acquiring SolarCity Corporation, the company expanded its product mix to include solar panels and related installation services.
This aspect of Tesla’s marketing mix demonstrates the company’s focus on electric vehicles and its efforts to grow and expand its multinational business. The company’s strategies support profitability in this element of the marketing mix.
Tesla’s product line is aimed at providing customers with sustainable energy solutions, which is in line with the company’s vision of accelerating the world’s transition to sustainable energy.
Price In The Marketing Mix Of Tesla
The Price element of the marketing mix refers to the levels and strategies used by an organization to set the prices of its products or services. In the case of Tesla, the company’s prices support its premium brand image and profitability targets given its limited production scale.
Prices also play a crucial role in determining profits and customers’ perceptions of the company’s products. Tesla uses a combination of premium pricing and market-oriented pricing strategies to set its prices.
Tesla primarily uses a premium pricing strategy, which involves setting high price points based on the uniqueness or high value attributed to its products. For example, customers are willing to pay relatively high prices for Tesla automobiles, which are considered advanced in terms of technology and ecology.
Therefore, innovation and product design are critical factors in successfully using this approach in Tesla’s marketing mix. This pricing strategy aligns with the company’s generic strategy of differentiation, which emphasizes the uniqueness of its products.
In addition to premium pricing, Tesla also uses a market-oriented pricing strategy for its solar panels and related products and services through its subsidiary, SolarCity.
This strategy helps the company maintain competitiveness in a rapidly changing industry and manage the strong force of competition in the energy solutions market. This pricing strategy helps Tesla to stay competitive in the market, while still maintaining its profitability.
As the transportation industry and energy solutions market continues to evolve, it is expected that Tesla will change or add new pricing strategies to account for new products and trends.
This will help the company to stay ahead of the competition and maintain its position as a leader in sustainable energy solutions.
Overall, the Price element of the marketing mix is crucial for Tesla’s success as it helps the company to maintain its premium image while also ensuring profitability and competitiveness in the market.
Place In The Marketing Mix Of Tesla
The element of place, or distribution, in the marketing mix, refers to the locations or venues an organization uses to reach its customers. Tesla Inc. has a strategic approach to this aspect of its marketing mix, gradually expanding its products while maintaining the same distribution channels.
The company may add more places or venues as it expands, such as through acquisitions or new ventures.
In this case, Tesla Inc. uses several key places to reach its customers:
Company-owned Stores and Galleries: These locations allow customers to check out Tesla’s automobiles, energy storage, solar panels, and related products in person. They are located in malls and other areas, providing a convenient and immersive way for customers to experience the company’s products.
Official Company Website: Customers can visit Tesla’s website to purchase products online. The website provides detailed information on the company’s products, as well as the ability to customize and order vehicles.
Company-owned Service Centers: Tesla owns its service centers, where customers can access repair and maintenance services, and where the firm can render services as part of its sales contracts. This allows Tesla to maintain control over the customer experience and ensures that its products are serviced by trained professionals.
Charging Stations: Customers can charge their cars through the company’s charging stations. This allows customers to easily and conveniently charge their vehicles, which is important for electric vehicles and provides an additional service for Tesla’s customers.
Overall, the place element of Tesla Inc.’s marketing mix highlights the company’s strategic approach to the sale and distribution of its products. By using a combination of company-owned stores, websites, service centers, and charging stations, Tesla can provide a comprehensive and convenient experience for its customers while maintaining control over the distribution of its products.
Promotions In The Marketing Mix Of Tesla
In this element of the marketing mix, Tesla’s marketing communications strategies and tactics are considered. These strategies and tactics enable the global automotive business to manage and influence customers’ expectations and the presentation and development of the corporate brand.
Tesla, Inc.’s promotional mix has the following components, arranged according to significance in the automotive and energy solutions business:
Viral marketing: This is the most significant component of Tesla’s promotional mix. Viral marketing is the practice of using the internet and social media to create a buzz around a product or service by encouraging customers to share content through word-of-mouth. Tesla uses this strategy to promote its products, such as the release of the Tesla Model S for Kids, which was largely promoted through viral videos on social media. This helped to increase awareness about the product and drive sales.
Personal selling: Personal selling is a 4P strategy implemented through sales personnel at company-owned stores and galleries. Tesla uses this strategy to provide customers with a personalized buying experience and answer any questions they may have about the products. This helps to build trust and increase customer satisfaction.
Public relations: Tesla uses public relations to manage and boost its popularity. Public relations is the practice of managing the spread of information between an organization and the public. Tesla uses this strategy to promote its commitment to driving the world’s transition toward sustainable energy. For example, the company’s inclusion of its patents in the open-source movement is a testament to this commitment. This helps to improve customers’ perception of the organization and its brand.
Sales promotions: Sales promotions involve discounts for certain items and the company’s customer referral program. This strategy is used to increase sales and encourage repeat customers. For example, Tesla might offer a discount on a new car model if a customer refers a friend to purchase one as well.
Direct marketing: Occasionally, the company uses direct marketing, such as selling powertrain components and batteries to other businesses. Direct marketing is the practice of communicating directly with potential customers to promote a product or service. Tesla uses this strategy to target businesses that might be interested in purchasing components for their products.
In this element of the marketing mix, viral marketing significantly determines Tesla’s effectiveness in promoting its products and brand. By using a combination of strategies, such as viral marketing, personal selling, public relations, sales promotions, and direct marketing, Tesla can reach a wide range of customers and promote its products in a variety of ways. This helps to increase brand awareness, drive sales, and improve customer satisfaction.
I hope you have gathered all the essential information about the Marketing Mix of Tesla and the 4 P’s of Tesla. Stay tuned for more Marketing Mix Articles.