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MKT306-MARKETING STRATEGY ASSIGNMENT SAMPLE

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MKT306-MARKETING STRATEGY ASSIGNMENT SAMPLE

INTRODUCTION

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In the fast-growing business world, it is important for businesses to focus on their marketing strategies. As the competition in the industries is increasing rapidly, it had become important for the businesses to have better marketing strategies which are crucial for the success of the company.The automobile industry is having a high level of competitive rivalry due to which the businesses operating in this industry needs to be effective in manufacturing the high quality and innovative product range and marketing of the products in an effective manner(Deepakand Jeyakumar, 2019). The present report will focus on the automobiles sector for explaining their manufacturing and marketing strategies in an effective manner. Tesla, which is a hybrid car company, had been taken as a case company for explaining the different concepts in detail. In this report, the researcher would conduct a situational analysis of the entire industry by apply PESTLE and SWOT analysis. The citAwill focus on evaluating the current marketing strategy and analysing the market segmentation targeting and positioning. Along with this, the report will recommend the marketing strategy on the basis of the marketing mix of the company.

AUDIT OF EXTERNAL ENVIRONMENT OF TESLA

External business environment in which the businesses are operating is having a greater impact on the effectiveness and success of the company. The businesses need to analyse their external business environment in an effective manner by applying relevant models which can help the businesses in getting knowledge about how the factors of the external business environment are affecting the businesses. PESTLE analysis is one of the effective business analysis tools which is widely used by the businesses for analysing the external business environment(Perera, 2017). This model focuses on six important factors of the external business environment, which are having a significant impact on the organisations. These six factors of the PESTLE include political factors, social factors, economic factors, environmental factors, legal factors and technological factors. The factors are explained below in the context of Tesla, such as:

  • Political factors:the political stability of all the business markets in which the company is operating is important for the better performance of the company, and if there is political instability then it would have a negative impact on the cited company. The government incentive and rules and regulations related to the electric automobiles are having an impact on Tesla. As the cited company is operating in the electric automobile sector, they have better opportunities to expand themselves and lead the company towards success as the political factors support them.
  • Economic factors: the economic stability of all the different nations in which the company is selling its products and services is important. For instance, the Brexit will have an impact on the way the cited company operates in the UK and the EU nations. Along with this the factors such as the increasing price of the fuels is creating a great opportunity for the e-car industry and had createda great opportunity for Tesla to expand their business and generate higher growth in their revenue. Also, the company is focusing on developing the product range, which can target all the section of the society which is supporting the economy and increasing the sales of the company(Stobbe, 2019).
  • Social factors:the cited company enjoys great support from society in all the different nations in which they are operating, which is providing great benefits to the company. Tesla is offering the products which aim at low carbon emission and focuses on using renewable energy which helps the company in gaining support from society. Also, the increasing concern of society towards a low-carbon lifestyle is also an important social factor which is having a positive impact on the organisation.
  • Technological factors: the cited company is using the latest technologies and is investing better capital in the research and development department, which is helping them develop the products which aim at reducing the carbon footprints. Also, the increasing technological advancement and increase the use of the latest technologies are having a positive impact on the company. For meeting the competition in an effective manner, the company should focus on using the best technologies and the latest one so that they can sustain their market position(Dudovskiy, 2018).
  • Legal factors:the regulations are increasing for the automobile sectors by the different governments. The cited company needs to be updated regarding all the rules and regulations and have to work in accordance with it. As the company is using renewable sources,the government had developed separate rules and regulations for the electric automobiles, and the cited company needs to follow all these.
  • Environmental factors:as the government's concern is increasing towards the greenhouse gas emission; the government had developed several rules and regulations related to the safety of the environment(Kauerhof, 2017). The cited company is focusing on reducing the carbon footprints, which is providing them with environmental benefits, and they are also focusing on reducing their waste disposal.

AUDIT OF INTERNAL BUSINESS ENVIRONMENT

Analysing the internal business environment is one of the important business practice as it helps the company in making continuous improvements in their business practices which is important for the firms. Different analysis tools are being used by the companies for analysing the internal business environment in which they are operating. For analysing the internal business environment, the present report applies SWOT analysis. It is an effective tool which helps the businesses in analysing four important factors of the internal business environment such as strengths, weakness, threats and opportunities for the company(Vlados, 2019). SWOT analysing in the context of Tesla is explained below, such as:

  • Strengths: the technological advancement of the company is one of the greatest strengths for the company, which is proving a great competitive advantage to Tesla in the automobile sector. Using the electric power in such a way and developing the product range, which aims at reducing the carbon footprint is also an important strength of the company. The high product differentiation of the company and their diversified product range which attracts all the different sectors of the society is an important strength of the company. Along with this great market presence and effective marketing strategies of the company is also the strength of the company.
  • Weakness:the company is having limited production and is not expanding itself in the developing nations, which is a weakness of the company. Due to lower production sometimes, the company is unable to meet the market demand, which is having a negative impact on the brand value of the company and is a weakness as well. As the company is focusing on bringing higher innovation due to which the company faces great manufacturing complications(McCain, 2019). The company also faces a shortage of batteries which is also a weakness of the company.
  • Opportunities: as the company has great market presence, it has better opportunities to expand themselves in their emerging or the developing markets. The cited company hasa great opportunity to enter into the Asian market, which can lead the company towards great success. The company also hasa better opportunity to develop low-cost products which can help the company in attracting the customers belonging to all the different sectors of society. Tesla also hasa great opportunity to bring the battery production technology in the house, which can help them in gaining several benefits and will reduce the cost of production for the company(Li, 2018).
  • Threats:the major threat which is being faced by Tesla is the increasing competition in the industry. The company is facing great competition from the automobile brands such as BMW, Audi, Mercedes, Ford, Toyota and Lexus. The company is also facing the threat of defects in the products as the products are highly innovative due to which it has complex engineering, which is increasing the threat of defects in the products. Tesla has a threat due to the lesser number of suppliers which can lead the company towards facing a shortage of material which can have a negative impact on the overall performance of the company.

ANALYSING THE COMPETITIVE ADVANTAGE OF THE COMPANY

Tesla is one of the leading brands, which is offering highly innovated product range to the customers and maintaining a better market position as well. The cited company specifically focuses on making use of the latest technologies which can help them in offering the best high quality and innovated products to their customers which is offering a great competitive advantage to the company over other businesses operating in the industry(Kancherlaand Daim, 2018). The reputation of Tesla in the international automobile industry is also an important strength of the company,which is providing a competitive advantage to the company. The diversified product range of the company is also offering several benefits to the company over other competitors and increases its brand value as well(Kim, 2020).

USP's of Tesla

There are several unique selling points of the company, and the automation of their product range is an important USP for the company(Teece, 2018). The highly technologically advanced products which are offered by the company is an important USP for the company, and the special features of cars of Tesla is also a USP for the company. The feature such as automatically opening and closing doors, self-cooling and adjustable trunk size is an important benefit for the company. It can be said that the technological advancement of the company is a unique selling proposition of the company which is providing several benefits to the company.

EVALUATION OF CURRENT MARKETING STRATEGY

As the automobile industry is highly competitive, it is important for the businesses to use better and effective marketing strategies which can provide them witha great competitive advantage over others. The cited company make better use of the technologies for marketing also as the company use multiple digital platforms for attracting the customers and affecting marketing(Gali, 2020). The company does not invest more on the paid promotions as word of mouth, and the free media coverage is helping the company a lot in doing effective marketing of their products. Due to the great market position, the company invest less in promotion and marketing. However, the company is using social media marketing strategy in an effective manner. The cited company focuses on providing the best customer experience, which is part of their marketing strategy as they implement word of mouth(Toumi, 2018).

MARKET SEGMENTATION, TARGETING AND POSITIONING OF TESLA

Dividing the market into the small segment is termed as marketing segmentation, and this is an important marketing strategy which is helping the businesses(Dolnicar, et. al.2018). The cited company should focus on doing effective market segmentation which can help them in offering different products to different sections of the society on the basis ofusing multiple parameters. The market segmentation of Tesla focuses on all the different types of market segmentation which includes geographical, demographic, behavioural and psychographic market segmentation(Stobbe, 2019). The company needs to focus on all the important factors such as age, gender, occupation, social class, lifestyle and region while offering products to the customers which would help them in enhancing the sales of the company.

The company is developing high quality and premium products for attracting the customers and targeting the single market, which is the premium electric car market. Tesla needs to focus on developing a diversified product range which can help them in targeting the customers of all the different social groups(YANGand LIANG, 2017). The group of individuals belonging to the upper-middle class are also the potential customers for the cited company, and they should also focus on targeting them. Positioning the products for the customers is also an important concept for the company,and Tesla is using the mono-segment positioning strategy for positioning their products and services. This strategy is helping the company in specifically positioning their products effectively in the minds of its customers as no other company is selling the products similar toTesla(Bhardwaj, et. al. 2020).

For targeting and positioning of the products for the middle-class customers, the company should focus on offering low-cost products to them, and this can also help the company in entering into the potential markets in the developing nations(Camilleri, 2018). The company should focus on making changes in their pricing strategy and then on the basis of it;they should redefine their segmentation, promotion and targeting of the products and services. Tesla hasa great opportunity to target the middle-class section of society, and the company should focus on targeting them only. Implementation of low-cost strategy and better customer segmentation can help the cited company in targeting the middle-class population of both developed and developing nations. This customer segment is a better option for the cited company as the firm hasa greater opportunity to enter intoa new market segment and expanding the business in an effective manner.

RECOMMENDED OBJECTIVES AND GOALS FOR TESLA

  • To increase the customer base by the end of the year 2021 with 20%.
  • To introduce the company products in at least two of the countries having emerging economies.
  • To increase the customer visit on social media platforms by 30% till the end of 2021.

RECOMMENDING MARKETING STRATEGIES

For recommending the marketing strategies to the company, it is important to analyse how the company presently is promoting their products and services. In the present study marketing mix of the Tesla is being applied for understanding that how the company is doing marketing of their products and services and on the basis of it different things are being recommended to the cited company.

Marketing mix for Tesla

The marketing mix is a set of marketing tool which is being used by the businesses for targeting the customers in an effective manner. This model focuses on four important factors place, promotion, product and price. These four factors for the cited company are mentioned below, such as:

  • Product: the company is offering high quality and premium products to the customers. The cited company is offering highly innovated products in the automotive, energy generation and energy storage market. The company is developing the products which are based on their concept of leading the world towards electric automobiles/vehicles and using sustainable energy.
  • Place: this factor explains the places which are being used by the businesses for reaching the customers. The cited company is offering its products through their own stores and trying to reach the customers through the official website of the company and selling the products from the online-based company-owned store. For reaching more customers, the cited company is also attracting the customers through their service centres, charging stations and other places also which can help them in interacting more with the customers which is important for developing better customer relations(Bilbeisiand Kesse, 2017).
  • Promotion: for promoting the products the cited company is focusing on word of mouth for which the company emphasises on providing the best customer experience to the customers. Also, the company is using digital marketing strategies for reaching customers. The cited company is not using traditional marketing strategies.
  • Price: the cited company is implementing the premium pricing strategy in which the company is selling their products at high prices as they are offering unique products and they are highly valued by the customers, and they are willingly paying the money as well because the products which are being offered to them are technologically advanced(Teece, 2018).

Recommendations

Through this analysis, it can be said that although the company is using better marketing strategies but with the increasing competition in the industry, it is important that the company should redefine their marketing strategies. The cited company needs to have effective marketing strategies which can help them in leading the company towards success and development. When the company is entering into a new market, and at the same time the company is also looking to increasing their sales in the existing market than it is important for the company to use effective tool which can help them in doing effective marketing(Kauerhof, 2017). The present report recommends that Tesla should focus on applying the Ansoff matrix, which is an effective manner.

According to the Ansoff matrix, the cited company should focus on market penetration and market development. Market penetration is an effective strategy which can help the businesses in increasing the sales and profitability of the company in the existing market. For attracting the customers in an effective manner, the company should focus on using different marketing strategies such as digital marketing, word of mouth, paid promotions and many more. Although the company has better market position due to which they invest less in the paid promotions, but as the competition in the industry is increasing, so it is important for the company to use this marketing strategy.

For market development, it is important that the company should focus on using effective strategies for enteringa new market. The company should enter the new markets of the nations which are having emerging economies which can help them in increasing the sales and expanding their customer base in an effective manner. The company should enter the new markets by implementing low-cost strategy and effective marketing strategies. Paid media advertisement, internet marketing and digital marketing are some of the effective marketing strategies which can help the company in successfully entering the new markets(Bruijl, 2017). For attracting and targeting a particular market segment, it is important to implement effective marketing strategies. For attaining the different objectives, the cited company should focus on implementing the following marketing strategies in both the existing market and for attracting the selected target market as well., which are explained below such as:

Search Engine Optimisation

Search engine optimisation is an effective marketing strategy which can help the company I increasing the traffic on the social media platforms and will help the company in targeting audience in an effective manner and targeting mass audience as well. This is a type of digital marketing strategy, although the company is using digital marketing for promoting their good and services, for enhancing customer visits, SEO is an effective marketing strategy(Zhang and Cabage, 2017). This marketing strategy will help the company in attracting customers across the globe and will help the company in enhancing the quality of the traffic on online platforms.

Social Media Marketing

Social media marketing is an important strategy which can help the business in attracting more customers. In the present era of digitalisation, it is important that the businesses should use effective digital marketing tools which can help them inincreasing the sales of the company. The cited company should focus on using the multiple platforms for social media marketing and should be more active on all the social media platforms so that the customers can get all the information related to the products and services offered by the companydifferent platforms such as Facebook, Instagram, Twitter and other social media platforms can be used for social media marketing.

Influencer marketing

Influencer marketing had gained a lot of importance in the present era, and the majority of the organisations are implementing this marketing strategy. In this marketing strategy, social media and celebrities are being hired for promoting the products and services of the company(Jahnke, 2018). The cited company should focus on using this strategy as it is having the greater influence of the customers and will help the company in attracting more customers and enhancing the sales of the company.

CONCLUSION

Marketing is the most important business operations, and the company needs to have effective marketing which can help them in leading the company towards success and development. The above-mentioned report had described regarding the different concepts associated with the marketing, and for explaining this the case of a leading car manufacturing firm, Tesla is being considered. The internal and external business environment had been conducted on Tesla, which had explained how the different external factors are supporting the company and what are the different strengths and weakness of the cited company. Currently, the company is using better marketing strategies and customer segmentation, but the report had suggested that the cited company should focus on targeting the middle-class section of the society and should focus on market expansion by entering into new markets.

The report had recommended that the cited company should focus on using the marketing strategies such as social media marketing, search engine optimisation and influence marketing which can help the company in increasing their sales and making better use of their strengths and opportunities. The study concludes that if Tesla implements these recommendations in an effective manner that it will help the company in successfully entering into the new market, targeting the middle-class customers, doing effective marketing in the existing market and increasing the customer base as well.

REFERENCES

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