Created a 30 slide PowerPoint outlining Tesla Motor's marketing techniques, channels and target markets.

1. Marketing Channels Solutions Project

2. Executive Summary
Introduction
In 2003, Elon Musk a billionaire and founder of PayPal
combined with engineers Martin Eberhard and Marc
Tarpenning to found Tesla Motors.
Tesla Motors has created a trio lineup
of vehicles. These three zero emission
cars consist of the Model S, Model X
and Roadster. Also, Tesla has made
several first time initiatives including;
first car manufacturer to sell directly to
consumers, first to pay off government
loans as well as first to create an all
zero emission line-up of vehicles.
These innovations combined with their
sporty & luxurious designs of make
them a huge contender in the auto
industry.

3. Situational Analysis
Internal Assessment

4. Situational Analysis
Internal Assessment

5. Situational Analysis
Internal Assessment

6. Situational Analysis
Internal Assessment

7. Situational Analysis
Internal Assessment

8. Situational Analysis
Internal Assessment

9. Situational Analysis
External Analysis
Regulatory Factors
• Just like any other car
manufacturer, Tesla is subject
to the same rules such as
California’s Low-Emission
Vehicle Regulations
• They must provide the
consumer with safe and
reliable vehicles

10. Economic Factors
• Tesla Motors uses global
warming to their advantage
showing off their zero
emission vehicles
• Tesla is replacing oil which is
a exhaustible energy source
with electricity/battery
power which can be a
renewable energy source
Situational Analysis
External Analysis

11. External Analysis
• Tesla has been in the media as of
lately because of their fast growing
market and company
• They currently have the first mover
initiative. However, their sales are
limited due to their expensive cars
• In recent social news, Tesla is
expected to come out with a more
affordable model priced around
$65,000 in 2017.
Social
Factors
Situational AnalysisExternal Analysis

12. •Tesla Motors recently opened up their
patents to other auto makers in order to
inspire and encourage innovation in
regards to battery powered vehicles
•Tesla utilizes cylindrical battery cell
technology which allows for greater
distances between charge-ups
•Telsa also has an integrated system which
analyzes wind speeds, driving conditions
and weather to calculate an exact range
on the battery life.
Technological
Factors
Situational Analysis
External Analysis

13. Situational Analysis
Competitive Analysis
Target Market
• Tesla Motors Primarily targets the
affluent and particularly those who
are concerned about global
warming and being
environmentally friendly
• However, more recently Tesla plans
to create a car that is more
affordable to capture a larger target
market since their current market is
less than 1% of automobile total
market

14. Tesla Motors has established
much success in targeting
their market
•This may primarily be due to the
fact that they are currently the only
ones in the market that
manufacture these types of cars
•They have established themselves
in the market as a luxurious, rare
and sought after brand

15. Situational Analysis
Market Analysis
Market Leaders
• Interesting enough, Tesla Motors is
considered the market leader in their niche
market
• That being said, Ford, GM, Chevy, Nissan,
Mercedes and some other car
manufacturers have come out with electric
vehicles or are coming out with a version in
the near future
• These other car manufacturers are
attempting to create an affordable electric
car first
• Whereas Tesla created their luxury model
first which allowed them to develop the
brand they were going after

16. Competitive Advantage
• One major competitive
advantage that Tesla has is the
fact they are the first into the
market that they are in
• They set the industry standard
in regards to electric powered
sports and luxurious cars
• They are currently the only ones
in the market, but not for long
Situational Analysis
Market Analysis

17. The Mission
of Tesla
• The objective and goal of Tesla remains the same from the beginning
• Tesla wants to accelerate the production and consumer use of sustainable transport or in
other words battery powered vehicles
• Tesla started production with a sports car knowing that their first car would be very
expensive with the technology they are using
• In the future, they plan to roll out more affordable all electric cars to the general public
Objectives & Target Market
Objectives/Mission Statement

18. Objectives & Target Market
Stakeholders
• Many of the shares are held by Telsa employees and top management within the firm
• However, there are significant shareholders worldwide
• Particularly in investment institutions
**Refer to chart**
Objectives & Stakeholders

19. Objectives & Target Market
Target Market
Target Market
Tesla Motors targets the affluent
business minded individuals who
are looking for environmentally
friendly vehicles
This poses a problem to their
industry since it is entirely
dependent on such a small
market.
Tesla has recently announced
that it will be coming out with a
more affordable vehicle in order
that they expand their target
market to include the middle
class consumer as well.

20. Objectives & Target Market
Target Market
Target
Market
Demographic
As I stated before, Tesla targets the
affluent or rich class citizens because
they are the only ones that can afford
their expensive luxury models.
Geographic
Geographically, they target people
living within big cities. This is because
they don’t have an extensive network
of super fast charging stations.
Behavioristic
Behaviorally, they are targeting people
who are worried about global warming
or other such negative environmental
impacts that gasoline powered
vehicles have. They are ultimately
concerned about their footprint.
Psychographic
This is very similar to ones behavior
yet psychographics have to do with
ones interests , attitudes and opinions.
This is a very difficult thing to market
to. However, typically if you market to
the other three areas you will be
marketing to their psychographics as
well.

21. Objectives & Target Market
Target Market
Market Shift
Tesla knew this going into the
market that they would eventually
have to make the shirt to produce
cheaper vehicles in order to expand
their market and to increase sales.
This is exactly where the market is
taking them and in 2017 they plan
to unveil a new Tesla at nearly half
the cost of the current Model S.

22. Marketing Channel Strategy
Members

23. Outsourcing
•As you can see from the previous slide, Tesla Outsources many of
their parts because they currently do not have the plant capacity
to manufacture every part of the Tesla car.
•While Tesla outsources many of their parts, they cut out
dealerships of which every other car manufacturer has to deal with
in their marketing channels.
•By cutting out dealerships their marketing channels are much
different than a normal car manufacturer. Like other car
manufacturer they outsource parts yet unlike other car
manufacturers, they sell directly to the end user.
Marketing Channel Strategy
Members

24. Marketing Channel Strategy
Members Function
Members Function
Tesla’s channel member functions
simply as a suppliers to Tesla Motors
in which they manufacture the
entire car and sell directly to the
end user.
Every channel member of Tesla has
experience in building innovative
top quality products to existing car
manufacturers and therefore serve
Tesla’s Target Market.

25. Marketing Channel Strategy
Conflict
Conflict
There is always potential conflict between channel
members and Tesla as there would be in any other
situation. Any problem with Tesla and the vehicles
they produce could potentially ruin the reputation of
these channel members that supply the parts to Tesla.
Also, in order to become more vertically integrated,
Tesla will most likely start producing more of their own
parts in order to reduce costs. This may also be a
major source of conflict between channel members
and Tesla.

26. Marketing Channel Strategy
Efficiencies
Efficiencies
Tesla could become more
vertically integrated in order
to cut costs and become
more efficient by controlling
all aspects of the
manufacturing process.
Tesla has shown that they are
very innovative in regards to
new technology. In the
future, this may be a way in
which to make their cars
more affordable to the
general public by becoming
more energy efficient.
Over time, companies learn
about their ever changing
target market. Doing some
serious R&D Tesla will be able
to improve overall
effeciencies.
Since Tesla is a fairly new
company, they haven’t
perfected their
manufacturing and therefore
this could be a significant
area of improvement in order
to improve efficiencies.

27. Interesting Facts
Tesla markets
their cars to the
weaknesses of
their combustion
engine
competitors.

28. Conclusion
In conclusion, Tesla Motors
remains a very innovative
company and perhaps the
most in the industry
Some even compare Tesla
Motors to Apple INC in
how they are dominating
their target markets.

29. Conclusion Cont…
In studying Tesla Motors the have come up with a success story that many car manufactures have
been trying to do for years.
First they started with a great product. An all electric luxurious sports car unlike no other in the
market.
Secondly, they started high and are working their way down. This way they develop a luxury brand
from the start in hopes of eventually expanding their target market to the every day customer.
Thirdly, they turn auto industries weaknesses into strengths. They do this by showing the
simpleness of an all electric drive train and the fact that the don’t need oil and the many parts that
a combustion engine requires.
Fourthly, they created a new multi-channel model. This model is a model in which the end user
buys directly from the manufactures website.
Fifthly, they build the community & focus on the experience. This is evident from their website
which focuses highly on the experience.
Finally, they leverage the media and traditional press. This was especially the case when there was
recent talks of Tesla cars starting on fire.

30. Bibliography
(1) N.p.: n.p., n.d. Web. 3 May 2015. <http://sites.psu.edu/teslammportfolio/executive-
summary/>.
(2) N.p.: n.p., n.d. Web. 3 May 2015.
<http://www.mbaskool.com/brandguide/automobiles/4475-tesla-motors.html>.
(3) N.p.: n.p., n.d. Web. 3 May 2015. http://www.latimes.com/business/autos/la-fi-tesla-open-
source-20140613-story.html#page=1
(4) N.p.: n.p., n.d. Web. 3 May 2015. <http://www.teslamotors.com/blog/mission-tesla>.
(5) N.p.: n.p., n.d. Web. 3 May 2015. <http://scienceofrevenue.com/tag/tesla-marketing-
strategy/>.
(6) N.p.: n.p., n.d. Web. 3 May 2015.
<http://www.autonews.com/assets/PDF/CA843311210.PDF>.