Marketing For Managers: Social Entrepreneurship In Tourism Essay


Discuss about the Marketing for Managers of Social Entrepreneurship in Tourism.



The following report analyzes the marketing plan of Tesla Motors in Australia. Tesla Motors is a motor brand based in California, United States. The brand deals in automobile cars, electric powered train as well as battery products. The brand has been executing consistent business performances in the domestic as well as the International market. There is intense market competition in the automobile industry, which shall hamper the business growth and expansion of the market in the existing market conditions. Tesla has a budget comprising of US$ billion. Currently its objective is to sell 20, 000 units of Tesla vehicles in the existing year.

Hollensen (2015) mentioned that the marketing business plan would help the organization to frame the operational and the marketing policies of an organization. Besides this, it shall assist the organization to achieve its sales of 200000 units in the existing financial year. The promotional budget of the business organization is US$1 billion. Thus, the marketing plan of the organization would facilitate the operational and the financial aims of the business organization. The Australian market possesses significant opportunities for Tesla Motors. In this regard, it can be said that the business enterprise would be offered with several business opportunities in the Australian market. Therefore, it can be said that the brand would avail the service of effective distributors that would enable the business organization to reach remote areas.

Environmental Analysis

Internal Environment

According to Pride & Ferrell (2012), the internal environment would be composed of several attributes like workforce strength, skills and aptitude of the employees in the organization and the leadership and the marketing strategies followed in the business organization. Besides this, it includes the recruitment procedures of the business organization. In this regard, it can be said that the recruitment procedures adopted should be stringent to select the most effective candidate in a business organization. The internal environment also includes the alteration in marketing strategies to suit the Australian market. The Australian market shall have a variety of cultures, backgrounds and nationalities. As such, there shall be no single preference of consumers in the automobile market. According to Grabara (2013), The Internal environment would affect the operational and the marketing strategies within the organization. The level of technological competencies present in the business organization shall affect the productivity rate and the output present in the organization. Therefore, this would have an effect on the production processes followed in a business organization. According to Lovelock et al., (2014), the presence of adequate funds present in an organization is also an essential factor in executing pre-determined plans of a business enterprise. Therefore, important strategies should be undertaken to enhance the financial condition of a business enterprise. As such, pertinent measures should be taken to consolidate the existing condition of a business enterprise (Kotler & Armstrong, 2014). These include reducing the cost of production and other variable expenses o f the business organization. However, penetrating a new market would incur additional expenses of the firm. Teller and Thomson (2012) mentioned that the firm would require establishment expenses apart from the variable expenses that the firm has to bear. Besides this, certain start –up and distribution expenditures expenses shall be there in the existing financial year. Therefore, it is pertinent that the financial condition of the business enterprise is considered before taking any essential measure for the growth and development of the business organization. As such, marketing and operational policies should be as per the promotional budget of US $ 1 billion. In this regard, it can be said that the marketing strategy of Tesco should relate to the emergence of substitute brands in the market. Thus, effective marketing and sales promotional events should be conducted regularly to raise consumer awareness about the brand.

External Environment

The external environment constitutes of several factors like political, economic, social, technological and legal. Following is the PESTLE analysis of the external environmental relating to Tesla Motors.

Political: The political factors are the government policies, laws and regulations, fiscal policy as well as the trade tariffs existing in the organization. According to Totten & Cross (2015). The import and export of goods shall be essential to the business sustainability of the business enterprise. The political factors also relate to the political instability in the country, which can lead to interruptions in the existing business functionalities of a particular region. The social policies as well as the trade regulations have an essential impact on the political parties of a business organization

Economic – The economic factors have an essential impact on the performance of a business enterprise. Thus, Tesla Motors have to consider factors like purchasing power of the people, the business opportunities in the market. Besides this, the economic attributes are inflation rate, foreign exchange rate as well as the recent economic trends in the market. Apart from these factors, the FDI (foreign direct investment) is an essential factor that has been affecting the economic condition of a particular country (Pearce and Sch?nzel 2013). It can be stated that there is a direct relation between the inflation and adverse economic condition in a specific place.

Social: The social attributes affecting the social environment are cultural characteristics, demographics and the size of the population in the country. The social attributes also relate to the social constituents in Australia. Xiao, H. (2013) mentioned that the social attributes include the effective distribution policies of the wealth. The education levels of the general population are an important social factor that has a relevance in the decision making process of the individual

Technological: According to Prayag et al. (2013), the technological attributes affect the innovation policies in the business organization. The amount of technological innovations present in a particular country determines the amount of innovation existing in the country. Australia has abundant resources of technology that can assist the business enterprise to implement a large scale of production. Therefore, the brand would be able to manufacture a wide range of items with minimum amount of time and resources. Fernie and Sparks (2014) noted that in the technological aspect of a business enterprise also include the essentials of the technological obsolescence in a business enterprise . In addition, the technological platforms that are available in a particular region is an essential attribute in the technological aspects of a business enterprise.

Legal - Hood, D. (2013) mentioned that the amount of laws and regulation present in a particular country should have an essential influence on the marketing and operational policies of a business organization. Thus, Tesla Motors shall have to understand the legal implications of doing a business. There shall be various restrictions relating to the manufacture of automobiles that would have an influence on the production and distribution process in an organization. Wu (2012) mentioned that the major pertinent legal attributes are employment regulations health as well safety regulations in a working environment. Besides this, the competitive and product laws are essential factors in the legal characteristics of a business enterprise. In this regard, the essential patent Laws would enable Tesla Motors to avoid any unfair advantages taken by the competitors in the market .

Environmental – According to Grewal and Levy (2012), the environmental factors are the external constituents that can affect the business sustainability of a business enterprise . These are geographical locations, climate as well as the consumer taste and preferences. It is expected that these factors would positively contribute towards these business profitability of the enterprise. Besides this, it includes waste disposal laws as rules and guidelines relating to the environmental protection. Chan (2013) noted that the brand would have to adhere to the procedures that would enable the business organization to reduce consumption of electricity and other energy resources.

Common attitude- According to Gummesson (2014), Tesla motors would have to consider the general opinion of the common people to re-adjust their policies as per the attitude of the masses regarding environmental protection and preservation. By judging the common opinions and beliefs held by the masses, Tesla Motors would frame the marketing policies accordingly.

Issues -

There are pertinent issues that the business enterprise has to face that can adversely influence the marketing policies of a business enterprise. When exploring a new market in Australia, the business enterprise has to readjust its policies as per the market situation of the country. The following are the issues that can be identified when Tesla aims to penetrate the Australian market.

Market Competition - According to Wilson and Gilligan (2012), the automobile market is intensely competitive with a very less space for a new brand to enter. Thus, the brand has to develop distinctive marketing policies to create market demand for the product. As such , it has to develop unique features in the product offerings to assist the brand to attract potential customers .

Brand Identity – Tesla would be relatively unknown in the Australian market. Therefore, it would be difficult for the brand to develop newer market opportunities. Nunkoo et al. (2013) stated that the level of brand identity of Tesla would have an adverse influence on the market share of Tesla in the Australian market.

Consumer perception - Weinstein, A. K. (2014) stated that upon entering the market in Australia, Tesla would have to face obstacles in developing a positive consumer perception . Gaining the trust of Consumers would be difficult due to being a relatively unknown retail brand. Therefore, a proper consumer perception would be difficult in assisting the economic growth of the business organization. According to Altinay et al. (2015), the consumer perception plays an important role in the purchase decision making of a business enterprise.

The emergence of substitute products - The presence of substitute brands in the market would pose a threat to the business sustainability of Tesla Motors . The substitute products in the market have the ability to reduce the market share. Philip (2016) mentioned that the automobile industry operates in a perfectly competitive market, where there is free entry and exit for business enterprises. Therefore, it remains essential for business enterprises to constantly innovate and upgrade the products to suit them as per the existing market conditions.

Distribution- Developing a potent distribution system shall assist the business enterprise to enhance the sales revenue of a business enterprise. However, availing such facilities can be difficult in the initial stages. Philip (2016) stated that reaching remote areas of the country would be an issue in the existing economic conditions of the country. In this regard, it can be said that accessibility is a pertinent issue that Tesla can face when adopting expansive business strategies in the country of Australia . The distribution policies remain essential for proper meeting the supply demands of the market.

Cultural perception - Australia has a unique culture that is quite unique from the rest of the world. Therefore, judging Australia’s consumer behavior and culture can be an issue for Tesla. Having a positive impact on the consumer perception is a problem that can pose a threat to the business sales and the profitability levels in the global market (Desbordes & Richelieu , 2012). The cultural perception has an essential role to play in the decision making process of the business organization.

Marketing Strategies of Tesla Motors

The marketing strategies are defined as a process of using the marketing mix in order to satisfy and also to attract the customers with the aim to make profit for the company. Teller & Thomson (2012) mentioned there are various types of marketing strategies, these include – market scope strategy, product strategy, promotion strategy, pricing strategy and distribution strategy. In this marketing plan report, the marketing strategies that have been applied and implemented by the company Tesla Motors have been discussed as follows:

Distribution Strategy:

The company Tesla Motors uses the model of online sales along with the organization owned stores in order to sell the cars of the firm. Fernie and Sparks (2014) mentioned that the company owned model of distribution is a new strategy that helps the firm to earn more revenue and also to maximize its profit. However, for this unique distribution strategy of the firm Tesla Motors, the company is overburdened with various challenges. It has been found that for the particular firm Tesla Motors, the biggest challenge is to set up its own distribution network that is capital or it can also be said that the lack of capital is another issue or challenge for the firm. Therefore, it is expected that the management of the company Tesla Motors will reduce its investment in the distribution channel. Thus, Tesla shall have to consider local distribution channels to serve the purpose .

Pricing Strategy:

For the company Tesla Motors, the Brick and Mortar stores serve the channel in order to promote the concept of the electric vehicle as well as the own brands of the firm. Totten and Cross (2015) mentioned that the product specialists of the firm in its stores are not based on the commission, thus the management of the company differ them from other ordinary auto salesman. This view towards the product specialists help the company to earn more revenues and more profit. In addition to this, online selling of vehicles reduces the selling costs of the firm. Therefore, it can be said that the particular firm should implement the cost-cutting strategy in order to increase its profit as well as its revenue. Thus, the management should stop selling cars through some of its stores and should sell them through online only in order to cut its costs. This would assist the brand to reach its target of selling 20, 000 units of Tesla Vehicles in the existing financial year.

Promotion Strategy:

Chan et al. (2013) mentioned that Tesla Motors should promote its products through various campaigns, by providing advertisements in magazines, business journals, televisions, newspapers, social media sites and many more. Now a day, the social media sites have been proved to be the essential media that helps in promoting the business. Thus, the company Tesla Motors should also promote its products through the social media sites like Facebook, LinkedIn, Twitter and many more in order to earn more and also to maximize its profits

Product Strategy:

The particular company provides various types of products to its customers like Model-S, Model-X is expected is take the market in the coming quarter. In addition to this, Model-3 is another product that is expected to hit the market in future and will bring in more profit and revenue to the company. Thus, it can be said that for capturing most of the target market and to take competitive advantage in the competitive market, the particular firm should bring in more models and products to the market.


The competitiveness is much high in the present market. The most important competitors of the firm are – Fiat Chryzord and General Motors. Thus, Grewal and Levy (2012) noted that in order to beat the market of the competitors, the company Tesla Motors should modify its products and should implement newer strategies in order to gain its competitive advantage in the present market. By looking into the present scenario, it can be said the company Tesla Motors has a narrower scope in the market. However, by gaining advantage that is more competitive and by modifying its existing products and also by bringing in newer models and products in the market as per the demand of he customers, it can be said the company will find success in the future.


The following are the essential recommendations that can be made to Tesla, in the context of the existing economic condition of Australia.

Assessing consumer behavior - The consumer behavior shall be properly assessed to gather knowledge about consumer demands and wants. This would assist the business enterprise to make pertinent alterations in the marketing policies of a business enterprise. The consumer behavior is an essential consideration to frame the marketing strategies of a business enterprise.

Setting up distribution policies - Establishing effective distribution channels shall assist the business organization to reach a wide variety of consumers in the domestic and international market. It can develop business partnerships with other business entities to set up effective trading channels for business enterprises.

Brand identity - The brand identity of a particular business entity would largely determine the business success of a particular brand. As such, it remains essential to develop a distinctive brand identity in the domestic as well as the international market. This would develop a positive consumer perception among the consumers in Australia

Adapting to the local culture and traditions - Adapting to the local culture and traditions would be essential to the business sustainability of a enterprise. Therefore, effective policies dealing with the organizational changes in the pursuit of adapting to the local culture shall be a major tool for organizational growth.


It can be said that the marketing plan of Tesla Motors constitutes of the necessary aspects that would enable it to succeed in a competitive market in Australia. The internal and the external factors affecting the organization points towards an intensely competitive market. In addition, there is the threat of substitute products in the market. It is expected that this would add to market competition, lack of brand identity as well as consumer perception in a market. Overcoming these threats would require effective m marketing and sales promotional activities to build the brand identity of the business enterprise. In addition, developing potent distribution channels shall enable a business enterprise to successfully reach every consumer in the society. The external market environments shall include pertinent political, social as well as the economic factors affecting the business sustainability of Tesla Motors affecting the economic situation of a particular place. Exploring newer markets would require alterations that would affect the existing market strategies of a business enterprise. The cost-cutting strategy would entail reducing the operational expenses of the firm to achieve the target of achieving the sales of 200000 units of vehicles with a promotional budget of US $ 1 billion.


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