Tesla Motors is an eco-friendly company that produces all-electric vehicles. They aim to increase availability of electric vehicles to most consumers to enhance the driving experience while delivering environmentally-friendly yet luxurious cars. Tesla is well positioned in the growing electric vehicle sector and sees environmental consciousness as an opportunity. However, they face competition from other luxury brands and regulations could impact their business model.

1. Tesla Motors
Dan Orcutt, Rachel Smith, Donna Moulton, Kelsey Rondeau, Lauren
Dufrense

2. Executive Summary
• Telsa’s an eco-friendly company and the current
trend in our culture is environmentalism and eco
awareness, so the expected outcome in today’s
market is to offer an electric car that provides a
product that is high in popularity and unique to
the existing car market.
• By increasing the availability of electric vehicles
to the majority of consumers, we plan to
enhance the overall driving experience to buyer
through consistently delivering an econ-friendly
yet luxurious electric vehicle.

3. Economic Growth and Stability
• Within the automobile industry, Tesla is
positioned within a growing sector
• According to a 2014 Green Car Report “Plug in
electric car sales have increased 27% over 2013”
(Green Car 2015)

4. Political Trends
• A new regulation has been passed in the auto
industry to satisfy the EPA that will be
implemented by 2025
• Raises the fuel efficiency standard to approx. 55
miles per gallon, which is 40% decrease in fuel
emissions

5. Legal and Regulatory Laws
• NADA
• National Automobile Dealers Association
• North Carolina
• President Obama
• White House Petition
• State Bans

6. Technological Advancements
• Tesla is the first American automotive company
to emerge in years and with that they also
produce lithium-ion battery packs and electric
vehicle powertrain components.
• With continued improvements to battery
performance and battery technologies the
company can expect to see price reductions in
battery costs, which would make the electronic
vehicle market more competitive.

7. Sociocultural Trends
• Society is becoming much more environmentally
conscious and eco-friendly
• Telsa is using this trend to highlight the fact that
the car is electric, a fact that they were not
promoting before
• Tesla feels it is our responsibility ethically to keep
the environment clean, which is why they
created a eco-friendly car

8. Competitive Environmental
Forces
• Potential Threats
• Supplier power
• Buyer power
• Threat of substitutes
• Indirect competitors
• BMW
• Mercedes Benz
• Jaguar
• Cadillac
• Nissan
• Toyota
Industry competitors
-General Motors Company (GM)
-Toyota Motor Corporation (TM)
-Pininfarina S.p.A.

9. Marketing Goals and Objectives
• Mission statement: “Accelerate the world’s
transition to sustainable transport”
• Goals: Increase the availability of electric
vehicles
• Objectives: design, manufacture, and market
socially responsible luxurious electric powered
vehicles. Integrate technological innovation as
well as luxurious features into our products.

10. How Tesla meets the Goals and
Objectives
• Tesla provides an environmentally friendly car
that offers safety to the driver and the
atmosphere.

11. Current Organizational
Resources
• Tesla is worth approximately $30 billion and is
projected to increase to $700 billion by 2025.
• Telsa has achieved sales in 30 countries and
established retail stores in 8 foreign markets
• Human Capital – 10,161 employees
• Tesla creates the battery and many other parts
of the car in house, but has a close relationship
with its suppliers

12. Suppliers

13. SWOT MATRIX

14. Marketing Goals
• Marketing Goal A: Generate demand for our
products to increase leads, in turn, driving sales.
• Objective A1: Increase demand by an upwards of
10% by years end through increased integrated
marketing communications efforts
• Objective A2: Allocate a combined total of $6
million towards advertising and promotions to
attract new customers.

15. Marketing Goals
• Marketing Goal B: Build long term brand awareness and
manage corporate reputation.
• Objective B1: Consistently curate content amongst social
media platforms, exposing the brand, boosting website
traffic, cutting marketing costs, and building the
business-client relationship.
• Objective B2:Utilize both traditional and digital
advertising among various media outlets, as well as, pay
per click ads on websites to targeted demographics.

16. Product Market Combinations
• New product, existing market.
• Product development – create growth by selling
new products in existing markets

17. Segmentation
• Segmentation- Tesla focuses on the upper-class
males who are looking for a luxury sports car.
Telsa's drive as well as a sports car putting them
in direct competition with brands like BMW and
Audi.

18. Target
• Upper class business executives and other
affluent members of society.
• Relatively small niche market
• These are the early adapters, and they want
cutting edge technology and extravagant
features.

19. Positioning
• Positioning themselves a competitive luxury
sports car that is also electric.
• When Tesla first made their car, electric cars
weren’t “cool,” so they positioned themselves as
a luxury vehicle to entice consumers

20. Product Strategy
• Major features and benefits: zero emissions, seats 5
people, battery operated, 2 trunks, autopilot, self-
parking
• Differentiation/positioning: ground-breaking, safe,
and luxurious
• Customer service strategy: Tesla’s Financing Program
offers customers to sell their Tesla back at a
comparable price to a BMW, Audi or other
comparable seller.

21. Pricing Strategy
• The brand is a premium brand and has adopted
premium pricing strategies for their products.
• Their flagship model the Roadster started with a
price point of 100,000+, this pricing strategy
accommodates the high unit costs/low unit
volume sales which is typical of the new
technology marketing model.
• The company’s ultimate goal is to sell their brand
to more mainstream consumers at affordable
prices.
• Breakeven point is 8,000 units annually, which is
$560 million.

22. Promotion Strategy
• Tesla Does not pay for advertising like
commercials or print ads, all of their promotional
budget goes towards events like car shows.
• They rely on the uniqueness of the product to
create a buzz and bring in the right kind of
consumers.

23. Promotional Budget

24. Operational Budget

25. Works Cited
• BMW: advertising spending in the U.S. 2013 | Statistic
• Gilbert, Ben. "Why Tesla motors can't sell in the U. S." July
2014. Engadget.
• Mangram, Myles Edwin. "The Globalization of Tesla Motors: A
Strategic Marketing Plan
• Analysis." Journal of Strategic Marketing 20.4 (2012): 289-312.
Business Source Premier. Web. 28 Apr. 2015.
• Muller, Joann. "5 Big Trends Driving The Auto Industry in
2015." Forbes. Forbes Magazine, 18 Jan. 2015. Web. 30
Apr. 2015.
• Musk, Elon. "United States Securities and Exchange
Commission." 26 Feb. 2014. Web. 5 May 2015.
• "Support." Roadside Assistance & Tech Support. N.p., n.d.
Web. 07 May 2015.