But does that mean they spend $0 on marketing? The process of buying a car is essentially the same as it was a generation ago. 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. This multinational company also takes the help of media releases and its PR team to create positive brand awareness. In order to create fully-electric vehicles available to the masses, a 3-phase Tesla marketing strategy was drafted and put in practice. Elon Musk. 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. “There’s a starman waiting in the sky The Model S is the only fully electric luxury sedan made by any company. “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. It was an expensive sports car with outstanding handling, performance, and long range, which demonstrated what’s possible with EVs. Did you know that Neil Patel increased lead capture by 500% using LeadQuizzes. Let’s say you’ve decided to buy a new Tesla. 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. I rely on them to grow my own search traffic. But an expensive sports car was the only type of electric car effective in terms of ROI back at the time. Tesla’s marketing strategy is different from others and special. That’s reinforced in Tesla’s mission statement: Tesla’s mission is to accelerate the world’s transition to sustainable energy. It has no advertising commercial or bill boards, no ad agency, no CMO, nothing and that is the most awesome part about it. The marketing mix used by Tesla Inc. is a unique one, even in an industry where there are some brilliant marketing strategists. 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. It's Weasley's Wizard Wheezesmeets Tony Stark. 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. It’s a $30,000-sedan, intended to be sold to the masses. Of course, this aspect of the Tesla marketing strategy is only a marketing strategy to a small extent. I love it! Global awareness of climate change is forcing companies to seek alternatives to traditional fuels. Tesla grasp this. 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 … 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. If you enjoyed it, sharing the article with marketing friends or with Mr Musk himself is thoroughly appreciated. You may have to wait for months before you get your hands on your Tesla. 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. The substantial amount of money is set up for a distribution channel. 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… It may be true that they do not spend money on traditional ads, but still, it’s undeniable that Tesla invests significant sums into their marketing strategy. It’s like if you’re a restaurant and you’re serving hamburgers and there’s like an hour and a half wait for hamburgers do you really want to encourage more people to order more hamburgers?”. And, simultaneously, they have the best engineers in the world working on a solution to the fossil fuel crisis. Notably, China exempted Tesla from a … Use Content Marketing to Champion Your Vision Any company or brand needs to have a solid vision statement. Instead of asking “How many views?” ask yourself “How many fans?”. Still, the “not spending any money on marketing” story is great marketing itself. Tesla, Inc.’s promotional mix has the following components, arranged according to significance in the automotive and energy solutions business: 1. If authenticity is how to connect with an audience, controversy is how to multiply an audience. Tesla’s mission statement: “to accelerate the world’s transition to sustainable energy”. They are unashamedly themselves. Required fields are marked *. And it has proven effective. Copyright © 2020 LeadQuizzes. They have zero advertising budget. Essentially, Tesla markets to its customers by not directly marketing to them. The price is the price, there’s no negotiation. The car makes “fart noises”. Like all other things, Tesla’s placement and distribution strategy are unique than others in the market. 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. However, as the latest data shows, Tesla has more than doubled the number of vehicles delivered worldwide in the 3rd quarter of 2018 (83,500 units) compared to the previous quarter (40,740 units). What’s so different about Tesla’s Marketing Strategy? The reason is as follows: “We’re not promoting the car,” Musk said. 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. Sometimes in the marketing of services an extended mix of 7P’s (Process, People and Process) is used. 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. Another rather obvious piece of advice (so obvious that I didn’t think it deserved a section in this article) is to innovate. It seems like people from Tesla are trying their best not to sell. The car makes “fart noises”. Sure, it was done under the veil of the SpaceX launch, but still, it’s Tesla advertising 101. And the juxtap… Traditional advertising is less effective than ever before. Having fans sell your product is more effective than ever before. So you can see who links to you and your competition! I can help. And the juxtaposition is captivating. At least not at the moment. 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. Elon Musk, the mastermind of Tesla’s enormous success, joined the company’s board of directors in 2004 as a chairman, providing much of the initial capital needed to run it. This paper applies theories, models, and practices of marketing. Viral marketing (most significant) 2. 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. Still, plain spaceships are plain boring. The company owned distribution is fraught with several challenges. 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. Personal selling 3. The promotional and advertising strategy in the Tesla marketing strategy is as follows: Tesla Motors has absolutely zero marketing budget. Tesla's marketing strategy on social media This approach doesn't work for everyone. Which makes Ford, Audi, and other manufacturers not able to replicate such a result. In fact, in February 2018, they performed one of the most expensive publicity stunts in the history of marketing. I rely on Ahrefs to grow my search traffic. 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. 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. In order to create fully-electric vehicles available to the masses, a 3-phase Tesla marketing strategy was drafted and put in practice. As a consequence, there are no sleazy salesmen. Tie a face to your brand, take a bit more personal approach, engage with your audience, and it could be all the marketing you’ll ever need. Of course, there’s a simple explanation behind the alleged absence of a more meaningful Tesla marketing strategy. The marketing strategy is also known as the marketing mix or the 4P’s (Product, Place, Price and Promotion). 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. Not if you’re buying a Tesla. In summary, Tesla can achieve more with less, because they are always thinking outside the box. Tesla Mission “Our goal is to create awareness of the potential of Electric Vehicles and particularly around those created by Tesla Motors” We want to bring powerful electric cars from the narrow luxury market to mainstream America -Elon Musk | CEO and Chief Architect 3. 3. It's Weasley's Wizard Wheezes meets Tony Stark. Just click here to share with Elon. Marketing Examples is so f***ing great. Tesla's Model 3 marketing strategy ditches specs for end results. Take the money you earned from the expensive sports car, the somewhat more affordable family car, and invest it into building an even more affordable car – Tesla Model 3. Recently, CEO Elon Musk boasted that “Tesla shells out virtually nothing on advertising and endorsements, and relies heavily on word of mouth.” The result is both one of the most carefree and one of the most ambitious brands on the planet. One organic tweet from Laura resulted in 5x as many newsletter sign ups as $30 worth of Facebook ads: Thank you for reading. Probably one of the greatest marketing and publicity stunts of our time. 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 generic strategy of Tesla, Inc. requires suitable strategic objectives to ensure competitive advantage. At the same time, China made exceptions for Tesla. 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. To own a successful business in 2018, you need to be doing it too. Perhaps now more than ever (which is unfortunate, as he never really got the credit he deserved). Many CEOs are still somewhat reluctant when it comes to using social media. Instead of following the usual guidelines of "tweet this much, include videos" etc., you start to make your own. It has adopted a unique strategy for promoting its products amongst customers. Digital Content Strategy. Tesla was named after Nikola Tesla, who was a very successful inventor and scientist of his time. In this element of the marketing mix, Tesla’s marketing communications strategies and tactics are considered. 5. Such a business model has brought Tesla Motor’s revenue for the year 2017 up to a whopping $11.8 billion. 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. So, Tesla doesn’t invest in paid advertising because… they don’t need to. In this paper, the approach will be a brief introduction of the company as a player in the larger auto industry, with a presentation of the situational analysis being made thereafter. Apart from several surprisingly high-quality fan-made ads, there seem to be no official ads for Tesla cars up to this date. We’ve learned to ignore it. What can you learn from this aspect of the Tesla marketing strategy? 1. In the year 2017, Tesla Motors approved a budget of 52 US dollars for marketing purposes and used word of mouth and referral program to attract buyers. As you can see, Tesla in number 3 at the moment, threatening to overtake BMW some time soon. In most cases, however, you don’t even get to see the car before you buy it! Here’s a brief overview of what you’re going to learn in this article: Tesla Inc. was founded as Tesla Motors by Martin Eberhard and Marc Tarpenning, back in 2003. And, simultaneously, they have the best engineers in the world working on a solution to the fossil fuel crisis. 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. Tesla has long favored word-of-mouth and organic strategies to promote its all-electric vehicles over traditional marketing initiatives. They are unashamedly themselves. 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. You're going to be looking for a long time. Of course not. Instead, the electric automaker focuses on social media marketing. One of the many reasons for this unique strategy is that Tesla has more number of orders for cars than they can actually manufacture. 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. 6. It would make your average CEO nervous, but Musk isn't your average CEO. It can’t get through ad blockers. And a free website backlink-checker. Through low prices and differentiation strategies as well as effective product placement, Tesla has an effective marketing strategy. Whether it is a picture on Instagram or a repost on Facebook, Tesla is always educating you about its brand and the causes they support. Many CEOs, but not Elon Musk. While its competitors shell out an astronomical amount for its marketing budget, Tesla firmly sticks to its $0 budget marketing. I couldn’t, either. Then there’s, The email turned my phone into a solid brick. Launching Tesla Roadster to space atop SpaceX's Falcon Heavy rocket is the latest example. In fact, one might say that his public popularity has contributed to the company and the brand more than any money they (didn’t) spend on marketing. But if not, you can still benefit from Tesla in an unexpected way. He had remarkable achievements in Radio technology and electrical engineering of Serbian descent. And it's fair to say they've succeeded: If I had one just one word to summarise Tesla's success it would be authenticity. 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. You need to make a $5,000 deposit to book a test drive. Tesla’s marketing strategy, then, goes against the trend of developing TV advertisements and pushing its products onto consumers. He’d like to come and meet us So, I googled. The thing about Musk is that he just loves to get personal on social media. The result is both one of the most carefree and one of the most ambitious brands on the planet. There are only a few slight problems with the abovementioned approach: 2. As a brand, Tesla’s following has stemmed from the ability to create something that people want to be part of. Hence, the Tesla Roadster model was born in 2008. If I had one just one word to summarise Tesla's success it would be authenticity. Not just any Tesla Roadster – the Tesla Roadster Musk bought for himself (paradoxically – from himself) back in 2009. All Rights Reserved. The next chart shows the percentage of the social discussion on the subject of electric vehicles: The secret to Tesla’s huge popularity on social media? 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. It interrupts. 4. Musk’s master plan was (and still is) to rid the world of its oil addiction by offering effective electric cars people would actually want to own and could actually afford. Thanks to Ahrefs for sponsoring. The focus is on turning customers into fans. Tesla’s Marketing Strategy It is no secret that brands have started to show more interest in electric vehicles. But for now on, they are still selling more than they’re producing. 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. The tried and tested guidelines that state - tweet this much, avoid saying this, include videos, etc. That’s why his SpaceX ship was seen cruising the orbit to the tune of David Bowie’s Space Oddity while carrying a Starman in a Tesla Roadster. Figuratively speaking, Musk took Tesla’s name and launched it into space (he also literally launched some things into space, but I’ll get into that a bit later). 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. They've also got an awesome YouTube channel for anyone wanting to learn SEO. It encourages others, namely customers, to do the selling for them. Tesla marketing strategy has been dubbed as USD0 (zero dollar) marketing strategy largely for its avoidance of paid advertising. Join our team on Kiva. In addition to today’s announcement of the standard $35,000 Model 3, Tesla has also described a significant shift in their sales strategy. In recent years, Nikola Tesla’ s name has once again caught the public eye. Tesla does it. Not only does it serve to guide the company in a forward direction during times of turmoil, but if used strategically, it can greatly help with marketing efforts. The graph below shows the total number of mentions across social media channels for most of the world’s most famous car brands. In this category, Tesla cars have become … Marketing strategy involves the analysis of Tesla as a company without focusing on any of the two brands of cars that are currently at its disposal. And that’s called the place or distribution strategy. I experienced this on a micro level last week. And vision statements don’t get much stronger than Tesla’s: The base price of $200,000 doesn’t really sound like that “affordable vehicle for the masses”, right? The original model was sold for 4 years, after which period it was discontinued, but a new version has been announced for 2020, at the base price of $200,000. 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. Many people have tried to change the auto industry over the last 40 years and none have succeeded. Their CEO makes memes. What is pretty remarkable is that Tesla does not need to look far to find a marketing strategy that works without being deceptive. LeadQuizzes has lent $21,750 and counting to support entrepreneurs around the world. I open the moment I see it, and read from, There’s “marketing examples”. If the vehicle production trends continue to increase, however, people from Tesla will probably have to rethink their “no investments in marketing” strategy. Right? If we bear in mind that 95% of car buyers research cars online before they buy, it makes perfect sense – you need to be where your target audience is. The Initial Tesla Business Model Phase 1: Release a powerful, expensive sports car And it certainly did cost a substantial amount of money. Of a Tesla ad you ’ ve decided to buy a new Tesla Radio. That Neil Patel increased lead capture by 500 % using LeadQuizzes with Mr Musk himself is appreciated... By Tesla Inc. is a unique one, even in an industry where are. Or with Mr Musk himself is thoroughly appreciated remarkable achievements in Radio technology and electrical engineering of Serbian descent,! Weasley 's Wizard Wheezes meets Tony Stark on the planet a Model 3 YouTube for. Years to come alternatives to traditional fuels most ambitious brands on the revenue trends ever since 2008 it. Your competition it certainly did cost a substantial amount of money is set for... Veil of the Tesla Roadster to space atop SpaceX 's Falcon Heavy is. 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