Marketing Plan Tesla Motors
Buy custom Marketing Plan Tesla Motors essay
The need for companies to develop effective ways to carry out its marketing activities is a critical part for their success in this highly competitive market environment. As indicated by Ashe-Edmunds (2014), one marketing aspect affects the others, therefore making it important for firms to coordinate their activities with the aim of eliminating interferences, thus reducing the overheads. Through a well planned marketing plan, firms can easily identify as well as target new business markets, as tangible and solid goals are established, thus being able to pin expansion plans to specifics (Ashe-Edmunds, 2014). Marketing plan also helps in the elimination of unproductive initiatives as well as focus on crucial factor.
Further, firms can be able to come up with optimal prices when selling their products or services. For instance, if the targeted customers are high-end valued, then it is required to change the pricing strategies to meet this need. Generally, as a result of increased competition in such areas as information technology, automobiles, among others, firms have been forced to develop marketing plans to ensure that their market position is not lost. Based on this rich background, this paper will explore the marketing strategy which can be adopted by Tesla Motors to keep its sustainability. In this paper, several areas will be addressed; background at Tesla Motors, SWOT analysis, marketing strategies of the company, marketing mix and market segmentation. Further, recommendations on ways to deal with the weaknesses as well as methods of transforming opportunities to reality will be offered.
Background at Tesla Motors
Tesla Motors, incorporation based in the US, which designs, manufactres as well as sells electric vehicles, electric cars and power train components. As noted by Burns (2014), the company acquired a wide attention after the production of the famous Tesla Roadster, which was the first fully electric vehicle globally. Other notable models such as the Model S (a full electric luxury sedan) and Model X later followed. As indicated above, the company also sells components of electric power train and this includes lithium-ion battery to automakers like Toyota and Daimler (Tesla Motors, 2014).
The firm was incorporated in 2003 by Marc Tarpenning and Martin Eberhard, who played an important part in ensuring a successful development of the firm during the early stages. It is believed that the main reason why this company was founded was to enable the founders to develop an electric vehicle having same performance like Porsche and being more environmental than Toyota Prius. In order to increase its balance sheet strength, the company became a public one in 2010. In the same year, it announced strategic partnership with Toyota Inc (Burns, 2014). In this partnership, Toyota agreed to buy US$50 million common stock belonging to Tesla as a private placement, which was supposed to close after the initial public offer. According to the agreement, the two firms were to develop electric vehicles and other engineering support services together. In June 2010, Tesla was able to raise approximately US$ 226 million through IPO, making it the first firm allowing public participation in its management since FORD in 1956. Despite the drop in share prices in 2013, due to reduced buying power of customers in the US, the share prices remained one of the best selling at the Nasdaq 100 index. As of 21 November 2014, the firms share price was retailing at US$$ 248.710 indicating a 0.39% from the previous trading (NASDAQ, 2014).
Current Situation and Future Innovations
It is clear that, unlike other venture-backed firms, Tesla Motors needs a notable amount of physical capital as well as equipment and plant for its growth. This is due to the fact that all aspects of its activities, from development and design right to mass production, are all capital intensive. Consequently, the firm has to continuously seek for alternative sources of funding as indicated in the table above. Further, the operations of the firm are highly complex. For instance, developing electric cars requires high level of expertise, both in design and supply chain management. As a result, there is a need for the firm to develop an elaborate marketing plan. This will enable Tesla to disrupt an already established market where competitors such as General Motors among others have a considerable market advantages both in terms of position and size (Larcker and Tayan, 2010).
In the future, there is a need for the firm to advance autonomous driving features, thus enabling it to compete effectively with other upcoming competitors venturing in the area of electric cars. For instance, the firm has to invest in the area of driverless cars, in order to counter the one being manufactured by Google, Inc., although not yet released to the market. Further, there is a need to speed up the production of crossover SUVs, electric minivans targeting municipal governments across various parts of the world. All these aspects will ensure that Tesla remains competitive in the market, thus raising its profitability levels especially in the non-traditional markets such as those outside the US market (Tesla Motors, 2014).
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