INT MARKETING FINAL REPORT

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Feb 20, 2024

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TESLA: A MARKETING PLAN Manjot Kaur, Manu Sharma, Ramandeep Singh, Regila Raimand, Vishal Khanna. MKTG119: International Marketing. Ms. Mahi Tyagi December 02, 2023

MARKETING PLAN TABLE OF CONTENTS 1. INTRODUCTION………………………………………………………………….2 2. POSITIONING OF TESLA……………………………………………………….2 2.1 BRAND POSITIONING OF TESLA………………………………………...2 2.2 POSITIONING STATEMENT……………………………………………….3 2.3 TAGLINE………………………………………………………………………3 2.4 POSITIONING MAP………………………………………………………… 3 3. TARGET MARKET PROFILE…………………………………………………...4 3.1 CLASSIFICATIONS BASED ON CATEGORIES…………………………4 3.2 DAY IN A LIFE………………………………………………...……………...4 3.3 MIND MAP OF MARKET SEGMENTATION……………………………...5 4. TESLA: MODEL 3 LIFE CYCLE………………………………………………...6 5. TESLA: PRICING………………………………………………………………….7 6. TESLA: IMC TOOLS………………………………………………………………7 6.1 INNOVATIVE DESIGNS……………………………………………………..8 6.2 PERSONALIZED SERVICE……………………………………………… .... 8 6.3 TRANSPARENCY………………………………………………………… .... 9 6.4 WORD OF MOUTH…………………………………………………………...9 7. ADVERTISEMENT CREATIVE…………………………………………………10 8. REFERENCE……………………………………………………………………..11 1

MARKETING PLAN INTRODUCTION: Tesla segmentation, targeting, and positioning is a series of processes that entails identifying a certain population segment(s) and designing goods to meet the requirements and desires of the segment's customers (s). Tesla, Inc. , which was previously known as Tesla Motors , was created in 2003 and only became successful in 2013. The company's headquarters are in Palo Alto, California, and it specializes in solar panels, lithium-ion battery energy, and electric vehicles. Elon Musk, Tesla's CEO, sees the company as a technological corporation and an independent manufacturer to make electric cars affordable to the wider populace. People and families who are conscious of environmental concerns and the unfavorable environmental consequences of CO2 emissions make up Tesla's target market sector. Tesla successfully caters to the target consumer segment's emotional demands to feel environmentally responsible by purchasing electric cars and installing solar panels. POSITIONING OF TESLA In this competitive market, the burgeoning e-car industry faces various hurdles. These difficulties include a limited driving range and increased automobile prices. Companies in this area must generate value and must find a solution to these issues. Due to limited resources, cutting-edge technology, and growing demand for sustainability, several new automotive manufacturers are attempting to enter the market. The strategic positioning of Tesla Motors is investigated in this research through an analysis of its external factors and quality enhancement. The whole automobile industry is undergoing a technological transformation. Tesla Motors Inc. is an American automobile and energy storage company that produces, develops, and distributes premium electric vehicles. It also has an electric vehicle powertrain and battery components. Elon Musk, the CEO of Tesla Motors, has stated that the business plans to develop and introduce a budget vehicle in 2017, which will be far less expensive and smaller than prior models. Tesla's competitive advantage stems from its ability to employ current technologies more efficiently. The brand positioning of Tesla Tesla Motors, owned by Elon Musk, first launched in 2003, focusing on the burgeoning market of electric vehicles, battery storage, and sustainable energy. At present, the company is one of the world’s most valuable organizations, capturing around 14% of the plug-in automotive market and 21% of the battery-electric vehicle space. At the core of the Tesla brand positioning strategy is a focus on preserving and protecting the planet. More than just an innovator, Tesla positions itself as a quirky and creative brand, willing to go beyond the limits of other organizations. It experiments with technologies like autonomous vehicles and has even launched a car into space. 2

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MARKETING PLAN Positioning statement Tesla’s brand positioning statement focuses on two core values for the company: sustainability and people. The company is a customer-centric brand with a strong focus on its audience: “We’re building a world powered by solar energy, running on batteries, and transported by electric vehicles. Explore the most recent impact of our products, people, and supply chain. We design sustainable systems that are massively scalable —resulting in the greatest environmental benefit possible.” Tagline "Empower Your Drive, Embrace the Future - Tesla Model 3: Driving Tomorrow, Today." POSITIONING MAP 3

MARKETING PLAN TARGET MARKET PROFILE: ELECTRIC VEHICLE ENTHUSIASTS IN URBAN INDIA Psychographics:  Values sustainability and environmental consciousness  Tech-savvy and early adopters of innovative technology  Seeks status and luxury through their purchases  Interested in reducing their carbon footprint  Values convenience and efficiency in daily life Lifestyle:  Active urban lifestyle with a focus on modern amenities  Enjoys premium experiences and luxury goods  Commits to a sustainable and eco-friendly lifestyle  Frequent travelers within the city for work and leisure  Values a work-life balance and appreciates leisure activities Behavioral Factors:  Interest in cutting-edge technology and innovation  Willingness to invest in premium products that align with their values  Prior experience with electric vehicles or a keen interest in adopting them  Regularly follows updates in the automotive and technology industries  Open to online purchasing and exploring new buying experiences Needs and Wants:  Desire for a high-performance, technologically advanced electric vehicle  Interest in reducing their carbon footprint and contributing to environmental sustainability  Convenience of charging infrastructure and a sufficient driving range  Desire for a sleek and stylish design that reflects their lifestyle  Access to premium features and cutting-edge technology in their vehicle Day in the Life:  Morning: Starts the day with a focus on health and well-being, possibly engaging in activities like yoga or fitness routines. Commutes to work, preferring the comfort and eco-friendliness of their Tesla Model 3.  Work: Engages in a professional setting, values efficiency, and embraces a tech- driven work environment. Uses electric vehicle features like autopilot and smart navigation for convenience.  Evening: Enjoys leisure activities such as dining out, socializing with friends, or attending events. Utilizes charging stations strategically placed in urban areas to ensure a seamless driving experience.  Weekend: Embarks on weekend getaways, taking advantage of the Tesla Model 3's long driving range. Enjoys the thrill of driving and the comfort of a sustainable, luxury vehicle. Mind Map of TESLA Market Segmentation 4

MARKETING PLAN Tesla mostly caters to a single market. The luxury all-electric sports vehicle market, which they founded. They're now figuring out how to bring their Model 3 series into the mainstream market. However, it will take another couple of years to do this. And, if they can, a lot more private investment money. As a result, Tesla employs mono-segment placement. That is, they concentrate on a single part in detail. Inside this one market segment, however, they pay particular attention to customer sub-groups. TESLA: MODEL 3 LIFE CYCLE 5

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MARKETING PLAN Tesla Model 3 is in GROWTH stage, because it expanding its business internationally as it surpass the threshold of sustainable customer base. The expanding EV market is being dominated by Tesla. Currently, Tesla is extremely profitable due to its sound growth strategies. There is a significant rise in the sales volume, reduction in the cost, and increase in the annual production which boost the profit per product, thus Tesla is in growth phase of its product life cycle. By 2030, Tesla wants to grow its yearly auto sales from roughly half million sold in 2020 to 20 million electric vehicles. Therefore, Tesla has plans to build more factories across the globe as it assist in the expansion into new markets and realize economies of scale to help manage and reduce the costs of selling and production. In this stage, Tesla model 3 getting more attention in the market, increase its revenue and demand in domestic and international market over the competitors. The first electric vehicle to sell more than a million is unit was Tesla’s Model 3. Compared to the prior years, it grew its deliveries by 40%. Globally, Tesla lowered its price of its vehicles. Tesla Model 3 become more affordable to the customers worldwide. Marketing strategies should be considered next  Customer-centric approach: Tesla should maintain its outstanding customer experience by undertaking user-centric marketing strategies to meet the needs and wants of its existing and targeted customer base. Their after sale service help them to keep the relationship with the customers. They can significantly improve brand loyalty and growth by the referral program.  Innovative strategy: Tesla can come up with more innovative features and improved performance in Tesla Model 3 electric vehicle in affordable price to increase its demand in the international market.  Contemporary promotion strategies: Tesla has the capability to achieve significant outcomes with minimum investment. It should improve its advertising campaigns and social media networks to familiarize the features and competitive advantages of Tesla Model 3 EV. 6

MARKETING PLAN  Brand management: It is necessary to analysis the perceptions of customers across the globe about the Tesla’s Model 3 to ensure or improve its market presence. It will help to improve the product awareness which eventually leads to greater demand for the product. TESLA: PRICING Current pricing strategies of tesla as compared to Maruti Suzuki tata nano. Tesla’s used the pricing skimming methodology. Firstly costs of tesla in order to attract high-end customer with larger profit margins, then it introduced inexpensive electric cars in order to take market share and revenues. Maruti Suzuki tends to maintain competitive pricing within its segments. This involves aligning the prices of its vehicles with the features offered, targeting a balance between affordability and value. The Tata Nano , initially when it introduced, had a different pricing strategy focused on being the world's most affordable car. The main concern was to create an entry-level vehicle that would be reachable to a large range of consumers, particularly in growing markets. Pricing is appropriate or not. Pricing is appropriate because it provide various type of automotive features to individuals. Consumer demand: The price of tesla also depend on the demand of electric vehicles in India or Indians are willing to pay for automotive. Economic factors: in this economic conditions of customer is important as they pay that amount for the tesla or not . Technology features: Tesla vehicles are equipped with advanced technology and features. the pricing effects the value of these technologies and features, consumers demand for seeking high-end electric vehicles. Marketing Positing: The appropriateness of pricing also based on how Tesla brand positions in the Indian market. If Tesla is targeting a economic market of electric vehicle customers, the pricing should be match with that positioning in Indian market. RECOMMENDATIONS Profit methods : Tesla's objective in India is to maximize profits, tesla set prices that not only cover production costs but give guidance related to positioning their electric vehicles. Brand image : Tesla's premium brand image, a value-based pricing strategy is appropriate, focus on technology, performance, and features of Tesla vehicles. Strategy : Competitive pricing and cost plus pricing . The growing competition in the electric vehicle market in India, Tesla employ competitive pricing strategies to position its offers correct price as compared to other electric vehicle manufacturers. Tactics: tesla should create the additional services and comprehensive package, discounts for their customer to increase their sales. Tesla should invest in make changes in infrastructure , tactic to increase the value proposition for Tesla owners in India. 7

MARKETING PLAN TESLA: IMC TOOLS Tesla takes a customer-focused approach to promotion , focusing on building connections with buyers not just through excellent customer service but with a unique personality. The CEO and business visionary for the brand, Elon Musk, plays a significant part in developing brand awareness. The core elements of the Tesla marketing plan Tesla has experimented with a host of different and unique marketing strategies over the years, designed to further position the company as an innovator in its field. From carefully cultivated social media marketing strategies to stunts that generate media buzz, the Tesla marketing strategy is forward-thinking and inspirational. However, while the marketing department at Tesla is always experimenting, the core components that drive the promotional strategy remain the same: human-centric thinking and innovation. Here’s how Tesla draws attention to its company: IMC TOOL RATIONALE FOR SELECTION 1. INNOVATIVE DESIGNS Tesla is laser-focused on positioning itself as an original, innovative brand. Every year, it invests billions of dollars in research and development to stay one step ahead of the auto industry. Tesla has introduced everything from more intuitive steering wheel technology to autopilot functionality with AI and more. Plus, customers can also design elements of their Tesla vehicle themselves, styling the car’s interior and exterior to their own tastes. 2. PERSONALIZED SERVICE Tesla makes buying your first car as simple and convenient as possible. Not only is it easy to arrange a test drive, but Tesla has its own innovative online sales center, which works to make purchasing vehicles as seamless and convenient as possible. Additionally, prospective buyers can choose if they want to customize their vehicles before purchase. Alongside making purchasing easy, Tesla preserves excellent levels of customer satisfaction by delivering phenomenal 8

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MARKETING PLAN customer support. The Tesla team offers access to a collection of trained professionals who can deliver repair services to clients anywhere. 3. TRANSPARENCY To keep customers talking about its products and generate a level of trust, Tesla also commits to high levels of transparency. Not only does the organization keep the public updated with information about its products, work culture, and operations via sustainability reports, but it also releases patents to the public and hosts events too. Tesla even provides other companies with the opportunity to build on its technology to help further its mission toward achieving sustainability, even if it means compromising on profits. 4. WORD OF MOUTH The Tesla marketing strategy involves spending as little money as possible on traditional advertising, which means the company relies heavily on word of mouth . Tesla’s publicity stunts regularly capture the attention of both the news and its customers. As an example, Tesla launched a roaster into space with a rocket via a SpaceX collaboration. The company has had press members test drive cars and write reviews about them. Plus, Elon Musk is committed to constantly drawing attention to the company on social media. Musk even responds to tweets and commentary from other customers regularly to highlight his commitment to serving its customers. The company also highlights the feedback and user-generated content of customers regularly in its marketing campaigns. 9

MARKETING PLAN TESLA: ADVERTISEMENT CREATIVE Tesla is positioned in the growth stage of product life cycle for tesla 3 model. This model is gaining vogue yet and company is enhancing its sales and the share price in market. Tesla is installing innovative points of charging for better feedback of customers and to change the view of users. According to our opinion advertising should be better if all the considerations are good. Advertisement should be always according to the product life cycle. The growth stage company should always focus on differentiate the product from the other competitors. Always highlights the positive reviews of consumers. Due to the growth stage of product the advertisement expense should be always high because it helps the company to go to the maturity stage. The advertising objectives are as follows. • Focus on social media campaigns, active website of company • Reach popular media for approach wider audience. Place products in different T.V shows. • Campaigns environment friendly products for the positive impact on users. The key message of tesla is transition to renewable energy in future. Tesla always focus on high performance products, innovation, and cutting-edge technology. We can say that today tesla is the leader of electric vehicle industry. According to us it is the great message for the environment by the tesla. Recommended forms of media. Blogs: Informative content for users on the different platforms to give knowledge to the users about their product. Product launches: Generating buzz with the live streaming of product launching is the better method of advertisement . In fact, tesla always use this method on their users. Self-promotion: promotion by participating in networking events, showcase work on social media is a great recommendation for the media. 10

MARKETING PLAN References:  TESLA MOTORS INC.: TARGET MARKET SEGMENTATION AND PRODUCT STRATEGY  Tesla Inc. Report 2021  Guinn, J. (2022, August 5). A beginner’s guide to the product life cycle . The Motley Fool. https://www.fool.com/the-ascent/small-business/e-commerce/articles/product-life- cycle/#:~:text=Products%20that%20cross%20a%20sustainable,Tesla’s %20electric%20vehicles%20(EV) .  Romero, D. (2022, March 25). Tesla “is entering a new growth phase”: Analyst . Yahoo! Finance. https://finance.yahoo.com/news/tesla-is-entering-a-new-growth- phase-after-torrid-pandemic-analyst-160124651.html  Equities, D. S. expertise:, & Equities, expertise: (2023, November 23). Tesla growth and production statistics: How many vehicles are sold across the globe? . Investing.com. https://www.investing.com/academy/statistics/tesla-facts/  Tesla’s marketing strategy - how to succeed without traditional advertising . Brand Vision. (2023, August 16). https://www.brandvm.com/post/teslas-marketing  https://www.tesla.com/  https://teslagov.com  case study by Sundeep Kumar P https://pdfcoffee.com/a-case-study-of-tesla- motors-pdf-free.html 11

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MARKETING PLAN  https://en.wikipedia.org/wiki/Tesla,_Inc . 12

INT MARKETING FINAL REPORT

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