4. For example, one of the company’s strategic objectives is to increase investment in research and development (R&D) to develop new products that satisfy market demand for enhanced renewable energy solutions, such as batteries for various purposes. Their CEO makes memes. Hence, the Tesla Roadster model was born in 2008. Tesla, Inc., which was Tesla Motors Inc. in the former days, has reached the heights of success as a dynamic automotive and energy solutions organization. I had worked with Tesla Marketing in the past and I had confidence in Joan’s business savvy and marketing and writing talent. “If you go to our stores, we don’t even want to talk about it, really, because we want to talk about the thing that we can supply. The marketing strategy of Tesla, definitely has a number of problems, but no one can deny that Tesla has now become a brand to be reckoned with and if they are successful in achieving their vision, the whole world might be happier for it. It's Weasley's Wizard Wheezes meets Tony Stark. I rely on Ahrefs to grow my search traffic. Marketing Strategy of Tesla Mission and Vision: The vision and mission statement of Tesla reflect the company’s aim for dominance in the global electric vehicles and battery market. You may have to wait for months before you get your hands on your Tesla. In recent years, Nikola Tesla’ s name has once again caught the public eye. Normally, you’d go to a car dealership, listen to a sleazy salesman trying to push you into buying the more expensive version, decide that you still want the more affordable one, take it out for a test spin, haggle about the price, and eventually walk out with the keys to your new car. The company owned distribution is fraught with several challenges. Personal selling 3. But does that mean they spend $0 on marketing? It can’t get through ad blockers. 1. This one took a while to write. In most cases, however, you don’t even get to see the car before you buy it! As part of its PR activities, its surcharging stations on highways and charging ports at malls, hotels, and restaurants have brand nameTesla written over them… Then there’s, The email turned my phone into a solid brick. But he thinks he’d blow our minds…”. David Bowie’s lyrics predicted it decades ago, Musk made it possible in 2018, while the rest of us are still recovering from having our minds blown. In fact, in February 2018, they performed one of the most expensive publicity stunts in the history of marketing. Marketing Examples is so f***ing great. An army of YouTubers explaining “Why I bought the new Cybertruck” in a far more sincere way than any commercial could: 6.9M views * 1 / 5000 conversion = 1,380 Cybertrucks. Tesla’s marketing strategy is different from others and special. The car makes “fart noises”. It has no advertising commercial or bill boards, no ad agency, no CMO, nothing and that is the most awesome part about it. Another rather obvious piece of advice (so obvious that I didn’t think it deserved a section in this article) is to innovate. In addition to today’s announcement of the standard $35,000 Model 3, Tesla has also described a significant shift in their sales strategy. The Initial Tesla Business Model Phase 1: Release a powerful, expensive sports car For those of you who don’t know, Nikola Tesla was a Serbian inventor, scientist, and one of the greatest innovators of all times, known for his enormous contributions in the areas of electricity, radio, and robotics. The base price of $200,000 doesn’t really sound like that “affordable vehicle for the masses”, right? The thing about Musk is that he just loves to get personal on social media. Not just any Tesla Roadster – the Tesla Roadster Musk bought for himself (paradoxically – from himself) back in 2009. As Musk’s innovation is something you can read about all over the internet, here I’m going to focus on the Tesla marketing strategy and hopefully pass some of Musk’s marketing genius to you. Notably, China exempted Tesla from a … Such a business model has brought Tesla Motor’s revenue for the year 2017 up to a whopping $11.8 billion. We’ve learned to ignore it. Tesla does it. So, I googled. These strategies and tactics enable the global automotive business to manage and influence customer’s expectations and the presentation and development of the corporate brand. And, simultaneously, they have the best engineers in the world working on a solution to the fossil fuel crisis. This paper applies theories, models, and practices of marketing. I open the moment I see it, and read from, There’s “marketing examples”. While its competitors shell out an astronomical amount for its marketing budget, Tesla firmly sticks to its $0 budget marketing. Elon Musk may be one of the hottest CEOs right now, with Tesla, SpaceX, The Boring Company, OpenAi he has his fair share of experience with marketing. Tesla is departing from its stated marketing strategy to adapt to the Chinese market. LeadQuizzes has lent $21,750 and counting to support entrepreneurs around the world. 6. With a growing focus on the damage we’ve done to planet and the need to protect it for future generations, the pressure on individuals to address their footprints has never been greater. They have zero advertising budget. Viral marketing (most significant) 2. Join our team on Kiva. Tweeting about the newest business ideas on the drive home, complaining about Twitter locking his account, live broadcasting rocket launches – you name it, Musk tweets about it. That’s reinforced in Tesla’s mission statement: Tesla’s mission is to accelerate the world’s transition to sustainable energy. The result is both one of the most carefree and one of the most ambitious brands on the planet. Their CEO makes memes. And that’s called the place or distribution strategy. And Musk is the master of this: He smokes weed with Joe Rogan, sells flamethrowers, blasts a Tesla into orbit, and then when it’s time to launch a real product he’s got our attention. They've also got an awesome YouTube channel for anyone wanting to learn SEO. SpaceX is Musk’s aerospace company, which he founded prior to joining Tesla. 3. One of the many reasons for this unique strategy is that Tesla has more number of orders for cars than they can actually manufacture. The reason is as follows: “We’re not promoting the car,” Musk said. It's Weasley's Wizard Wheezesmeets Tony Stark. In B2B marketing, you need great digital content that drives awareness and creates marketing-qualified leads for your sales team – from blogs, to compelling social media and web content. There are only a few slight problems with the abovementioned approach: 2. They are unashamedly themselves. The substantial amount of money is set up for a distribution channel. I experienced this on a micro level last week. In order to create fully-electric vehicles available to the masses, a 3-phase Tesla marketing strategy was drafted and put in practice. And a free website backlink-checker. Tesla, Inc.’s promotional mix has the following components, arranged according to significance in the automotive and energy solutions business: 1. So, Tesla doesn’t invest in paid advertising because… they don’t need to. The promotional and advertising strategy in the Tesla marketing strategy is as follows: Tesla Motors has absolutely zero marketing budget. Sometimes in the marketing of services an extended mix of 7P’s (Process, People and Process) is used. And it has proven effective. The generic strategy of Tesla, Inc. requires suitable strategic objectives to ensure competitive advantage. And the juxtap… Now, to dive deeper into these points, here are fifteen lessons we can learn from the apparent marketing strategy of Tesla: Create the Best Possible Customer Experience; Build a Strong Referral Program; Don’t Rely on Paid Advertising; Leverage Your CEO’s Social … No, they haven’t discovered any of his long-lost prototypes that could change the world as we know it (Tesla already did that once, actually) – it’s literally his name that has been in the spotlight lately. Tesla’s mission is to accelerate the world’s transition to sustainable energy. The graph below shows the total number of mentions across social media channels for most of the world’s most famous car brands. When it comes to CEOs on social media, only Bill Gates’ 46 million followers significantly top Musk’s 23.2 million on Twitter, but it’s not just a game of numbers. The focus is on turning customers into fans. If somebody orders a Model 3 now, it’s probably late next-year before they get it.”. It interrupts. It encourages others, namely customers, to do the selling for them. What’s so different about Tesla’s Marketing Strategy? Let’s say you’ve decided to buy a new Tesla. Many people have tried to change the auto industry over the last 40 years and none have succeeded. The ad spending per vehicle sold chart below shows that Tesla spends $0 on paid advertising. Tesla has long favored word-of-mouth and organic strategies to promote its all-electric vehicles over traditional marketing initiatives. Many CEOs, but not Elon Musk. Use Content Marketing to Champion Your Vision Any company or brand needs to have a solid vision statement. But an expensive sports car was the only type of electric car effective in terms of ROI back at the time. You're going to be looking for a long time. Perhaps now more than ever (which is unfortunate, as he never really got the credit he deserved). The other reason for so many “obstacles” when trying to buy a Tesla car is the scarcity or the lack of a more serious mass production. I couldn’t, either. The Model S is the only fully electric luxury sedan made by any company. The decision to start the company was made after General Motors forcibly recalled all of its EV-1 electric cars from customers in 2003 and crushed them in a junkyard. Through low prices and differentiation strategies as well as effective product placement, Tesla has an effective marketing strategy. Instead, the electric automaker focuses on social media marketing. What is pretty remarkable is that Tesla does not need to look far to find a marketing strategy that works without being deceptive. In this element of the marketing mix, Tesla’s marketing communications strategies and tactics are considered. Their strategy is a force to emulate and with a few simple changes, you can put your brand on the same marketing fast-track as Tesla. And vision statements don’t get much stronger than Tesla’s: Touted as the most valuable car company in the world, Tesla has earned this position within a short span of 17 years, dethroning the long time champion, Toyota. As a brand, Tesla’s following has stemmed from the ability to create something that people want to be part of. Your email address will not be published. Imagine any other automobile company attracting the world's media to a launch event, smashing two windows, and selling 250k+ units upfront: Competitors spend hundreds of thousands of dollars for a 30 second commercial to play during a basketball game. Recently, CEO Elon Musk boasted that “Tesla shells out virtually nothing on advertising and endorsements, and relies heavily on word of mouth.” I can help. And they needed money for the second phase – a slightly more practical and more affordable (albeit, still expensive) models – Tesla Model S and Tesla Model X. They are unashamedly themselves. Instead of asking “How many views?” ask yourself “How many fans?”. Of course not. It was an expensive sports car with outstanding handling, performance, and long range, which demonstrated what’s possible with EVs. Which makes Ford, Audi, and other manufacturers not able to replicate such a result. Exactly innovation is the characteristic shared by both Nikola Tesla and Elon Musk. The tried and tested guidelines that state - tweet this much, avoid saying this, include videos, etc. Required fields are marked *. Tesla grasp this. One organic tweet from Laura resulted in 5x as many newsletter sign ups as $30 worth of Facebook ads: Thank you for reading. To own a successful business in 2018, you need to be doing it too. Thanks to Ahrefs for sponsoring. He sure doesn’t restrain from speaking what’s on his mind at any given moment, unlike other CEOs who use social media only to share dull corporate updates and products info. So you can see who links to you and your competition! Looking for horsepower output or battery capacity? He’d like to come and meet us If authenticity is how to connect with an audience, controversy is how to multiply an audience. Can you think of a Tesla ad you’ve seen most recently? When I needed marketing help and a website to bring my vision to offer my services as an entrepreneurship through acquisition mentor to life, Joan was my first call. I love it! And it certainly did cost a substantial amount of money. Distribution strategy in the marketing strategy of Tesla : Tesla mostly uses online sales model coupled with company-owned stores to sell its cars and doesn’t use the conventional dealer network. The process of buying a car is essentially the same as it was a generation ago. Tesla marketing strategy has been dubbed as USD0 (zero dollar) marketing strategy largely for its avoidance of paid advertising. Having fans sell your product is more effective than ever before. It’s a $30,000-sedan, intended to be sold to the masses. Tesla's Model 3 marketing strategy ditches specs for end results. Tesla's Marketing Strategy on Social - The "Apple" Approach This isn't an approach that necessarily works for everyone, but when you've built a hype machine as Tesla has done, the rules of social media start to change. I guess that’s because they have to be extremely careful about what they’re posting in order to avoid public shame, damaging the brand’s reputation, or even lawsuits. In February 2018, they launched their Falcon Heavy rocket from the Kennedy Space Center. Instead, Tesla focuses on word of mouth advertising, and referrals. Place Strategy of Tesla After releasing the product and deciding the price, a company needs to make its products visible and available among the target groups. Probably one of the greatest marketing and publicity stunts of our time. Strategies and tactics enable the global automotive business to manage and influence customer’s expectations and the juxtap… mission! 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