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Tesla Motors


Provide a market summary including market demography and demand analysis, marketing environment/SWOT analysis, current competition, competitors' marketing promotional budget and sales analysis for similar and competing products, target market and market positioning analysis.


Tesla Motors

Martin Ebcrhard as well as Marc Tarpenning established Tesla Motors in the year 2003. Its products as well as technology are significant different from its competition. In the year 2010, Tesla Motors revenue exceeds around $ 2.44 Billion with Gross Profit of $ 456.26 million. 

This particular name pays homage to the Serbian inventor named as Nikola Tesla. This person was responsible in creation induction motors as well as alternating current power transmission. Irrespective of Tesla vision and brilliance, company would be having no particular product at the same time. In the year 2008, Elon Musk became CEO of Tesla Motors. The main aim of Musk is to offer electric cars at affordable prices especially to average income consumers. 

Products of Tesla Motors

The main products of Tesla Motors sell under premium models. Tesla top selling cars includes Model S. As far as other models are concerned, Tesla produces products depending upon demand like Model X and Roadster. Tesla Motors plans in bringing another forth vehicle in market. Model 3 are made available in the mass markets for retailing operations in the year 2017. 

Mission and Vision Statement of Tesla Motors 

“Tesla Motors mission statement is to accelerate advent of several sustainable transports with bringing compelling mass market electric cars to other markets as far as possible” (Tesla Motors, 2016). 

Tesla Motors focus on transportation that is eco-friendly, performance driven as well as stylish and customer accessibility. Tesla Motors main mission is to offer several compelling experience especially to the potential customers. It aims at taking feedback from the customers for gaining high level of efficiency in operational activities. This company enhances better control over inventory cost as well as pricing and warranty services in an overall manner. 

Tesla Motors focus mainly on the usage of electric cars as well as treated in form of sacrificed mode of transports. This particular company brings towards advancement of technologies in the automotive world. It aims at describing image of cars as well as designing efficiency and performance at the same time. Tesla Motors vision is to aim 100% electric power terrain. It does not particularly reflect strong future in the upcoming years. Tesla Motors tries hard in setting perception on electric cars availability considers as best viable alternatives in the near future (Tesla Motors, 2016).

Marketing Objectives of Tesla Motors

Several marketing objectives of Tesla Motors that suggest as follows:

Tesla Motors believes in generating greater demand in case of vehicles as well as driving leads in the sales teams

Tesla Motors aims at building brand image as well as awareness of brand in and among people.

Tesla Motors focus mainly on retaining existing customer’s base through word of mouth communication as well as referrals. It should increase customer loyalty in the global marketplace. 

Tesla Motors encourages inputs of potential customers in the developmental aspects of products (Tesla Motors, 2016). 

Situational Analysis

Market Demography and Demand Analysis

Male population due to their immense inclination towards car mainly demands the products of Tesla rather that their female counter part. Since the company only offers luxury cars, so the demand for the cars is mainly from the elite class or business class. The most demanded car by Tesla is the Roadster. The common person they are not able to afford the luxury cars, as there is a huge down payment involved. The Tesla motors have not yet explored the Australian market but as per research, there is a huge demand of the electric vehicle in the market (Boone, 2012). The company has designed the Model 3 so that it can attract both the business entrepreneurs and younger generation. The price of the Model 3 that is to come out will be available at the rate 70000 dollars. More number of customers is concerned about the environment and so they prefer eco friendly products. 

Market Environment or SWOT Analysis:

Strength Weakness

The secondary components outsourcing  helps the company to keep the cost low  and this helps in the focus on the advancement in technology

The lean system of management will help in making the decision making process of the company to be simplified and this would be enhancing trust among the managers and the employees (Zimmerman & Blythe, 2013).

There is good distribution of the store which helps in the interaction with the potential customers There is a greater problem related to lack of liquidity.  The company has witnessed a loss of 70 million dollars due to the large amount of debt, lower demand for the cars of Tesla and failure in controlling the cost of operation.

The historical background of Tesla motors is not that strong so there is no brand recognition and expertise engineers are no efficient  like that of the Ford Motors or the General Motors (Weinstein, 2014).

Opportunity Threat

The most significant changes involve customer awareness about the advantage that is held with electrical car, as there is significant rise in the price of conventional resource like the fossil fuel.

With the availability of the subsidy program by the government of Australia, the company Tesla would be able to invest more that would help the company to flourish With a innumerable number of firms in the market, selling the  similar type of cars at a much affordable price than that which is sold by the Tesla Motors

The competitors are also seen to sell cars with the  hydrogen powered cars which is more demanded by the customers

Competition in the market

The following tabular representation helps in identifying the competitors in the Australian Market:

Toyota General Motors

The company uses the hybrid technology which helps in the entry in the market of fully electric car market

The company has influenced the Australian market with the use of the hybrid technology though the base of the company is in Japan (Peter & Donnelly, 2013)

Prius is the electric version of car that is provided by the Company Toyota.  There is a station for home charging and  large battery pack (Chernev, 2012)

The above car Prius would help the company Tesla to offer cars at the different level of price. General Motors helps in imposing threat to the Tesla Motors.  Tesla will enter the premium market through the price 30000 dollars (Tesar & Kuada, 2013).

The company builds Volt model, which is not completely an electronic car but expects to enter the electric car soon.

The design of the electric car would be including a  battery that would help the car to run almost 40 miles  before there is a recharge of battery by 1.0L turbo gas recharge engine. The Volt will be increased to 640 miles on highway (Peñaloza, Toulouse, & Visconti, 2012)

BMW Daimler AD

BMW sells luxury cars, with low consumption of electricity and lower emission in the market of vehicles. This brand is a tough competition for Tesla Motors (Clow & Baack, 2012)

The rates are competitive and there would be availability of the electric cars in the Australian market in the coming years.

The first type of electronic vehicle by the company BMW is the i3 version.

The electronic motors in the vehicle would also be manufactured by the company The Mercedes Benz B class is the electronic vehicle that is to be launched soon in the  market of Australia

SLS AMCG Coupe E Cell would help in the running of the B class and charging it.

The vehicles that are manufactured by Mercedes Benz runs for longer miles on electricity, which would help reducing the stress on the conventional resources.

The technology of battery and  the motor that is used in the electric car by Tesla motors is also shared with the company Mercedes Benz.

Promotional marketing budget

Different type marketing techniques Amount 1 billion USD is divided into promotional marketing

Public Relations 25,00,00,000 USD

Sales Promotion 15,00,00,000 USD

Advertising 30,00,00,000USD

Direct Marketing 30,00,00,000USD

Sales Analysis

 There has been a rapid increase in the cars by more than 100 percent in the year 2015. Technology development when incorporated will help in the development of the batteries and there are more charging stations available (Paliwoda, Andrews, & Chen, 2013). The main reason for the greater demand for the product is due to the growing concerns related to the environment (Mullins & Walker, 2013). The competitors are trying to make the products available at affordable rate but Tesla need to make the brand unique and try to make it completely different from that of the other products. The company Tesla motors is mainly concentrating on the younger generation for the sale of their product in Australia as  they youth are more attracted to fuel based cars rather than cars  that are based on the electricity (Paliwoda, Andrews, & Chen, 2012). The figure helps showing the market trends of the sale of vehicles in the market of Australia.

Target Marketing

 The Tesla marketing to flourish in the near future it is targeting the market Australia so that they are able to get demand from a large number of customers.  The target market in Australia is the age group of the youths of the mid 20 to that of the mid 40s.  The main aim of the company is to attract the middle class young working population (Hutt & Speh, 2013). There is an ample production being made by the company to satisfy the demand of the customers, The young professional they mainly demand for the entry level luxury product. The data from NADA sourced, the average price of the new cars sold is approximately 30000 dollars who are not willing to invest in cars (Middleton, 2012).

Market Position Analysis

The company Tesla motors will be bringing in entry-level cars with fully electric system while keeping the performance at par with that of the other companies the performance is maintained.  The design and performance of the electric cars does not attract the young buyers.  The technology and design will help in the entry of the cars in the market of Australia this will help in changing the whole concept that is held by younger citizens (Hutt & Speh, 2014). The luxury cars would be fixed at the price of 30000 dollars this would help the company to attract a large number of customers who are willing to avail the luxury cars. The craze for these cars are increasing is helps the customers to save money on the fuel which maximum form of the investment (McAllister & West, 2013).

Marketing Promotion Objectives and Strategies for 2016 to 2017 

Tesla Motors makes efforts in increased market share of Electronic Vehicles in Australian markets in the year 2016 to 2017. The main objective of Tesla Motors is to increased in the market shares with 20% (Marich, 2013). Tesla Motors involves in brand awareness in and among young generation in and around Australia. It helps in creation of brand loyalty. This particular company builds in targeted segments in current markets. As far as positive and secondary research is concerned, Tesla Motors brings solution to demand especially for young professional in Australian Markets (Jackson, 2013). It brings out in rendering affordable luxury to the potential customers. Survey indicates price that is quoted at 40000 dollars at rebate taxes as well as costing around 32500 dollars. Consumers can easily save on fuel cost from net purchases in the most appropriate way. 

Promotional Strategies of Tesla Motors 

Customer Loyalty Programs 

Tesla Motors is a Company that aims in providing its customer base with safe as well as comfortable vehicles. This particular company provides safe as well as comfortable driving in form of reliable vehicles at the same time (Lee & Carter, 2012). As far as loyalty program is concerned, Tesla Motors deals in making customers as family where they can enjoy added bonus for targeted potential customers (Johnson, 2012). It requires special promotion of products as well as owing customers buying fewer than 2000 dollars. It ensures free years services as well as unlimited services ranging appointments. This particular promotion conducts under four-year programs at the end of first year to 5 years. 

Test Drive Campaigns 

One of the promotional strategies adopted by Tesla Motors is Test Drive Campaigns. It helps in spreading brand awareness as well as giving future opportunities to the drivers in testing car for the same. This test drive campaign launches in most of the selected cities in and around Australia (Lamb, Hair, & McDaniel, 2013). This particular city targets Queensland, Perth as well as Brisbane and Melbourne. Sales involve 50% of most of the selected cities in form of heavy demand for electric vehicles in the most appropriate way.

Website and Social Media 

It is important to understand the fact that Tesla Motors involves in websites and social media campaigns for bringing brand awareness in the global marketplace. It ensures details regarding new car as well as promoting campaigns in and through popular company websites at the same time (Kotler & Keller, 2012). Social media is one of the event types undertaken by Tesla Motors. Advertisements displays in home page websites for rendering global exposure in the most appropriate way. 

Google Advertising 

Tesla Motors promotes by way of Google advertising. It uses advertising with the help of Google Ad words. It includes targeted advertising as well as focusing on hybrid electric vehicles in the near future (Jolibert, 2012). This particular company advertises through online in accordance with pay per click model at the same time. 

Media and Budget Allocation in 2016 to 2017 

Media Budget

It is important to understand the fact that site traffic emphasis on increased use of newspaper advertising as well as targeting specified demographic areas. Some of the popular newspaper taken under study is Sydney Morning Herald, The Australian as well as The Guardian for promotion purpose. It mainly focuses on college students as well as income households of around 70000 dollars. It makes one-page advertisement in the magazines that costs around $ 34580 and $ 56470 in case of coloured advertisements. 

From the above table and graph, it is easy to predict the total cost incurred by Tesla Motors in the upcoming year from 2016 to 2017. Tesla Motors involves in variety of promotional marketing campaigns like test drive campaign. It aims at building communication between customer and retention for the same for smooth functioning of business enterprise. 

There is a need to predict expected profits generated by Tesla Motors within specified time span. The difference between total cost and total revenue needs consideration as far as possible. Tesla Motors should find innovative ways in generating revenues in the near future. 


Thus, the market for the electric cars is very competitive in the Australian market. There innumerable number of sellers in the market for the sale of the hybrid cars. The most important sellers of the Electric vehicles are General Motors, Mercedes Benz, BMW and Ford. Since the above companies have already, a brand name and larger market share so the least popular company Tesla Motors would be having a tough time to capture the market of Australia. The company Tesla is trying to invest more on technology so that it comes up with the most efficient cars. The company has come up with the idea of manufacturing cars as based on electricity due to the increasing environmental issues and scarcity of the conventional resources.   The company uses the promotional strategy for successfully marketing and pricing the commodity at a rate so that the younger generation is able to get the opportunity to buy the product.  The company needs to analyse macro and microenvironment so that it is able to grow in the near future. 

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