Marketing Management Analysis Essay


Your task is to prepare a report containing information that may be used for a marketing plan. Identify one product/service from your own business or from another business with which you are familiar. In your report you should include:

?–? The current marketing situation with background data on the market segments, product, competition, and distribution. Keep this discussion brief.

?–? Market analysis through a SWOT analysis. Make sure to discuss the SWOT analysis adequately.

?–? Objectives with goals for sales volume, market share and profit. These goals should be realistic but may have to be somewhat hypothetical because of the lack of time and absence of market research to provide better ones.

?–? Marketing strategies with details of the 4Ps (i.e. Product, Place, Price, Promotion).



Marc Tarpenning and Martin Eberhard founded the company Tesla in the year 2003. Once the company went public in the year 2010, the revenue generated has increased by 2.44 billion dollars and thus the profit amounted to 456.26 million dollars. The name of the company Tesla was due to Nikola Tesla who was the creator of induction motor and alternating current power. The company could manufacture quality products due to the brilliance by Nikola Tesla ( 2016). The company Tesla is into the manufacturing of eco friendly stylish cars, which was driven by electricity. The company Tesla is going to enter the Australian market in the coming year and wants to increase their sales of the cars and more specifically their new launch i.e. Model 3 into the market.

Market Segment:

The products of Tesla Motors are more demanded by male population. The Roadster Model is more preferred by the upper class business executives, as they like to travel in luxury cars. These types of cars are not designed for the common person, as the down payment is 100000 dollars. The main reason for the marketing manager to enter the market of Australia is due to the demand electricity based cars as people are trying to get more eco friendly and they are also tech savvy (Hutt and Speh 2013) . The Model 3 was priced in Australia as 40k dollars (Chernev 2012).

The company Tesla to increase their future marketing in Australia is trying to reach out for more number of customers. The target for the company is the youth of the country Australia. The age groups of these are early 20s to mid 40s (Hollensen 2012). This type of adults they belong to the middle class. The company is trying to increase their capacity, as there is a more demand for such luxury cars. The target market is the young professionals who are looking for the luxury cars at an affordable rate. When the cars are priced at 30000 dollars it shows that, many of the people are not willing to purchase as that was not affordable. This was reflected in the NADA Data.

The company is trying to bring out the best in the entry level luxury car so that it helps in providing added benefit. The electric cars are generally thought to perform much lesser than that of the fuel enabled cars but Tesla’s electric cars has also shown remarkable performance. The young buyers they were not attracted towards the electric cars as it did not provide design and performance like that of the fuel-based cars. The company Tesla Motors want to enter the Australian market and change their mentality towards electricity enabled cars. The lower the price quoted for the new car there will be more customers for its products. There will be a huge rise in the sales as the customers they are looking out for the entry-level luxury cars (Jolibert 2012). The electric cars are preferred as there are no emissions. Moreover, the customers they longer have to rely on the fuel as a result the customers will be able to save money.


The company Tesla motors sells luxury cars under its name. The car which is the top seller is Model S. The models that are equally demand like that of Model S is the Model X and Roadster. The company is trying to launch their latest model i.e. Model 3 in the market of Australia in the coming year ( 2016).

Competition and Distribution:

There are mainly four types of competitors in Australian market:

General Motors


· This company is a major threat for Tesla as GM is renowned for its expertise and luxury cars, The Company Tesla has so decided to enter the luxury market through the offering of cars price at 30000 dollars (Clow and Baack, 2012).

· The electric car market is yet to be intervened by the company GM but it has introduced model Volt that was not a fully electric based car.

· The feature of the car would be including battery that would help in running for 40 miles before there is a recharge by 1.0L turbo gas charged. This would make the Volt to run for 640 miles on the high way (Kotler and Keller 2012).

· The company is already running hybrid cars but there is strong determination that it would be entering into the electric vehicle markets

· The company is based in Japan but it would be entering into the economy of Australia so that it can make the hybrid market more famous (Glynn and Woodside 2012).

· Prius is a hybrid car offered by Toyota, which offers home charging station and battery pack. Prius model is fully electric based.

· The above design by Toyota will lead company Tesla to offer electric sedan at different prices.


Daimler AD

· The major competitors of Tesla is BMW as the company is focusing on the entry of the luxury , high performance, lower emission and lower consumption of electricity based cars in the market.

· There will be electric cars available in the market at a more competitive rate, which is a major challenge for Tesla Motors.

· The company BMW has come up with the electric vehicle called the i3 so that there is individual mobility

· The model that is made by the BMW will be having their own type electric motors.

· The company has brought into the market the Mercedez Benz B class which would soon be in sale in the Australian market

· The charging of the system of B class will be done by SLS AMG Coupe E cell (Keegan and Green 2013).

SWOT Analysis:



· The focus is on investing on technology of the company

· The company Tesla adopts a lean management process

· Strategic relationship with the competitors

· The company faces the problem of liquidity.

· Shortage in the manufacturing of lithium batteries

· Lack of modern expertise



· Increased sale as there is a demand for eco friendly cars

· Government subsidy on production

· Competitors selling similar products at lower price

· Competitors coming up with hydrogen enabled vehicles.

SWOT in detail:


The cost will be kept low through the secondary component and the focus should be centered on the technological development. This would help in establishing a strong department of Rand D. The system of management for the company Tesla motors is lean which helps in reducing the cost of operation and the workers they work in the cheap and small-decorated offices. This helps in reducing complexity and encourages more trust between the employees and the manager. In order to provide benefit to each, there is a strategic relationship established by the company Tesla Motors with the companies like Panasonic, Toyota Motors and Daimler.


The company Tesla Motors faces a strong liquidity problem. The company had a huge sales in the year 2013 for Model S still there was loss of amount 70 million dollars as a result there was a large amount of debt , higher cost of operation and slow demand from the client. The capacity of manufacturing is very limited and this is a setback for the company to meet the demand of the future customers. The batter cells based on lithium is also short in supply (Philip Kotler et al. 2013)

The company is a not a renowned company like that of the Ford or GM. The expertise is still not efficient enough for the company and need proper enhancement.


The significant change involves propagating the benefits of the use of electric cars and their environmental benefits.Since electric cars are environmental friendly so the government is encouraging more amount of subsidies so that the company is able to grow and attract new customers.


There are innumerable sellers of electric cars in the market who sells cars at a much affordable rate. This has led to immense competition for the company Tesla Motors. The competitors they are trying to base their vehicles through the energy use like the hydrogen-powered vehicles that gives the same level of performance.

Objectives with sales volume, profit and market share:

There is a great demand for the electric cars in the Australian market. With the development in the technology, there are more charging stations and batteries developed. Since there is rise in the price of the petroleum product , there is more demand for the electric or the hybrid vehicles. The electric cars generally do not appeal people easily so there is a need for the marketing technique. The company Tesla Motors in the coming 2016-2017 wants to increase the market share of electric vehicles. The company would try and capture more than 20% of the market in Australia. The objective of the volume of sales is approximately 50000 to 100000 cars. The expected profit is likely to be 316079033 in the year 2016 while it would rise by 516320752 in the year 2017.

Marketing Strategies:

The marketing strategy of Tesla would involve product, price, place and promotion of the Model 3. All these are interrelated for an effective marketing strategy. Marketing strategy is important to achieve the targeted sales. The use of the marketing strategy will help in creating the product that will help in making of profit (Farrington 2012). The marketing strategy takes into account the market place research through the consideration of the targeted customers. The strategy adopted for marketing will help in deciding the correct price for the product as per the market research (Lee and Carter 2012). Since Tesla is targeting the youth generation of Australia so there is a need for the price to be quoted reasonably. Marketing is maximized when the target customer, product and the price is set perfectly. Sales of the product will be maximized when the company Tesla incorporates promotional techniques. Thus, the 4 Ps of marketing as per marketing strategy of Tesla are as follows:


The Company Tesla Motors is coming up with the Model 3, which is an electric vehicle that is designed for the younger generation in the Australian market. The main reason for electric vehicles is less demanded by the youths.


The Company to market its product has selected some of the important cities like Perth, Melbourne Canberra and Sydney.


The Company Tesla Motors in Australia will charge at 40000 dollars, which after a rebate tax would lower the price to around 32500 dollars.


The company Tesla Motors wants to increase the market share of electric vehicles in the Australian market. In order to fulfill that objective the communication channels that it can adopt.

Loyalty Programs:

The company Tesla Motors ensures that they are going to be comfortable and safe in the vehicles. The company’s loyalty programs will help the family of the customers to enjoy some added benefits from the purchase of the car. With special promotion, the premium customers of Tesla would be purchasing another car for their family for which they could avail a large discount, free service for car and after sales services within the validity of the promotional package (Mooradian, Matzler and Ring, 2012). The promotion will be valid for a period of four years with the maximum benefit.

Test Drive campaigns:

Test drive will help in creating brand awareness and the genuine purchasers can test the car before they actually purchase the car (Sethna, Jones and Harrigan, 2013). There will be test drive campaigns in all the targeted cities of Australia. The cities that are targeted are Perth, Melbourne, Canberra and Sydney. It is expected that there would be 50% of sales in these selected cities. The teams who are promoting the brand throughout the campaign will be provided with lodging and food.

Websites and Social Media:

The company website of Tesla Motors will help in the advertising of the new car that being launched by the company. The details of the new car need to be promoted through the website of the company. The website is the place where more number of customers would be visiting for knowing about the new brand (Pen??aloza, Toulouse and Visconti, 2012). The social media forum would be used for the purpose of promotion of the events outdoors (Clow and Baack 2012). The maximum exposure or effect of a promotion will be made when it is shown on the home page

Advertising through Google:

Google Ad words can be used for advertising of the product of Tesla Motors in the Australian market. The advertising will be targeted towards electric and the hybrid cars. Advertisement would be made through the pay per click model (Belch and Belch 2012).


The use of the newspaper is the traditional method through which the targeted population can be made aware (Peter and Donnelly 2013). The local newspapers of Australia are The Guardian, Sydney Morning Herald and The Australian. There will be advertisement given on the front page in black and white or colored advertisements (Anderson 2012).


Global marketing is in this scenario is indeed a great concept. The leveraging of the marketing strategy across a number of markets is quite beneficial. This will help in higher degree of consistency and saves the resources and the efforts.

  • There is a need for the clarification the things that is to be considered globally and that which is managed locally. The local aspects are present in the global marketing approach . It must be noted that they are complementary The marketing area that help in leading into global level is marketing planning , budgeting , branding , creating market campaigns and global PR. Local marketing involves local social media , partnerships and Tesla Motors should select marketing strategy as per it.
  • The global concept of marketing is much different to the local markets as there are cultural differences across the countries. There is a need for Tesla Motors to understand the local market and develop a close relationship with the local team for marketing.
  • The campaigns in case of marketing needs to managed like an army operation. There is a need for appointing a global campaign manager who would be responsible for delivering results.
  • Effective communication is very important for running a campaign, as this will help company Tesla Motors to establish a relationship with the customers.


The Australian market of electric vehicles is highly competitive s o the company Tesla Motors needs to adopt the necessary marketing strategy for overcoming the barriers. The renowned manufacturers like BMW, Ford, General Motors and Mercedes dominate the electric vehicles market. The company Tesla Motors is a startup company Australia but the sound technology and innovation it is likely that it is also going to come in par with the other major competitors. The customers are eyeing for this product, as they are interested in purchasing affordable luxury cars, which is environment friendly. The company Tesla Motors needs to know about the internal and the external market of Australia to become a leading company in the Australia electronic vehicle car market.


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