Analysis Of Tesla Marketing Assignment

MARKETING MIX OF TESLA COMPANY.
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MARKETING MIX OF TESLA COMPANY.
Question 1
Tesla Company was started in 2003 by a group of world’s successful engineers who had the thought of proving to the world that it does not have to always compromise the efficiency of electric cars and that they are quicker, simpler and more fun to drive compared to gasoline driven cars. The company has ventured in to the field of manufacturing electric cars, storing products as well as producing clean and scalable energy (Stolze, 2015).The company started growing in 2008 when it launched its first ever battery technology and an electric power train before designing and unveiling the world’s first ever and efficient electric car which received numerous positive reactions and receptions. The literature review of this company’s operation shows that although it has certain accounts of preceding reputations in the minds of its customers, certain aspects of its marketing strategies requires improvement.
The analysis of this company’s marketing mix is majorly based on three concepts or theories of marketing suggested by Kotler in his book, Principles of Marketing. His first theory states that a marketing mix is a set of marketing tools that a company uses to promote itself and its product development (Kotler & Armstrong, 2012). The theory supports the 4P marketing mix which entails the product, price, place and promotion, a notion that the essay on the analysis follows to the last section. The second concept applied is the concept of marketing environment of the company where the micro environment has a branch called marketing intermediaries which deals with how a company promotes, sells and distributes its products through different channels to the final buyer using supply chain management. This theory also entails the concept of has been applied in the text in the distribution and place section which states that Tesla Company prefers setting up stores, galleries and service centers for the purpose of distributing its products.
Additionally, the theory of consumer relationship management is applied in the text to analyze how the company collects and evaluates detailed information about their individual customers and carefully managing its services in order to increase loyalty. The analysis of the company proves this theory in that the company has several service centers in the United States of America tasked with the responsibility of interacting with customers, advising them on the ideal features of products that will suit their immediate pleasure, qualities and personality. The next theory deals with how a company ensures that it builds customer value and how it correctly tabulates its pricing strategies. This notion is evident in the analysis of Tesla Company as the company appreciates customer value-based pricing where the standard prices of its products are wholly customer oriented and facilitated by numerous pricing considerations. Finally, the concept of communication strategy is used in the text in the description of the promotion section which is evident as the company employs certain promotion tools such as advertisements using social media platforms such as Facebook (Kotler & Armstrong, 2012).
In the product section of the company’s marketing mix, the main product of the company under review in this text is its premium electric car called Tesla Model S. The company has ensured that its customers and admirers of its operation, products and services are satisfied by improving its performance though its designation of an update software that gradually increases its efficiency over time. Also, the company has improved the vehicle’s acceleration by a record of 0.6 meters per hour on top of its initial making the car 2.28 seconds faster(Stolze, 2015). Additionally, looking at the overall cost of the vehicle and such updates, the company ensures that its products are customer’s pocket friendly, used in realistic and the best environments. Moreover, the company has ensured customer’s appeal and experience by making its Tesla Model S a beautiful and presentable by making it simple-looking, low, completely tinted, high-quality and ridged tyres as well as a software that allows a user control it with a remote. Again, the company’s branding is completely significant to the company since calling it Model S means that it is on its way to producing many other improved models in the future apart from the already launched five-star Model X and Model 3 in 2016 and 2017 respectively.
In the price part of the marketing mix, Tesla Company has set its main product, Tesla Model S, at approximately $75,000. The company offers several other high quality services that come at an affordable price. These services include product transport and delivery, spare part provision, repairs and it also makes significant recommendations for the best insurance company in the area. Moreover, the company has a service card for its customers so that when a customer buys a product, they earn a particular number of points (Bahadir, Bharadwaj & Srivastava, 2015) This aids the company in creating loyal and happy customers since frequent purchases from Tesla earns one enough points for one to buy different other products from any branch of the company in any region. In addition, according to customer ratings on the basic price of the company’s product, it is agreeable that the price is customer friendly and the company does not have to increase the amount in the view of making more profits. The company, however, after the release of Model X, reduced the initial cost of Model S in order to gain an extra market gain and as a response to its biggest competitor, Audi, which reduced the price of its Audi 2018 Audi A7 to $72,000 in 2018.
After the reduction in price, the company experienced a whole year of success, an increase in the number of customers and a great reputation throughout the world and in the field of car manufacturing. In the mid of 2018, with the same price, Tesla ensured that Model S is a total package by improving the performance of the vehicle by introducing a software to the car that is customer oriented and operated an also making its cabin more spacious and loaded with other tech features for complete efficiency (Stolze, 2015). Additionally, in 2018, after the company has identified that their success lies on their first model vehicle, it created another product, Model 3, and sold it at an affordable price at first, then after two months, Tesla started selling it at a discount of $5,000 in order to maint...