Tesla is one of the most innovative and popular companies in the world. The company's branding and promotion strategies have played a significant role in its success.
Image Source: Unsplash
For some recent University work, I had to write a business report that was based on Tesla. I had to think and investigate further into their promotional strategy and branding and what this involves. Furthermore, I had to consider the future and consider what the future of marketing and technology might mean for Tesla. I knew absolutely nothing about cars before I started this particular module and now I would say I am no expert but have definitely extended my knowledge.
I try and keep my website fashion and lifestyle-based, but cars are fashionable right? To have a trendy, stylish and flash-looking car is so important for some people and creates happiness for them. Work hard, play hard and enjoy what you love in life. Anyway, back on topic, what I want to do in this blog post is inform you (my wonderful readers) a bit about Tesla!
Image Source: Unsplash
In 2022 Tesla was ranked the 4th fastest growing brand worldwide with a revenue of $74.863 billion by the end of September 2022. But how is Tesla so successful when they have no marketing team or chief marketing officer? They must be doing something right. With $0 spent on advertising it shows that the brand is strong enough without any skilled marketers working for them (Khemchandan, A).
Image Source: Wix
Ok, we will start right from the beginning and for those of you who don’t know the aim and purpose of branding is to:
Tap into values and beliefs
Create connections
Generate an emotional response
Provide reassurance
Ensure consistency
Build Loyalty
Add value and charge a premium
Then there is Brand Identity which can include:
The logo
The product and service
Packaging
Retail environment
Visual Merchandising
Promotion, advertising and PR
Website, blog and social media
(Posner, H. 2015)
Fabric Blog has given some key facts about Tesla and I have to say the sales figures blow me away! They are successful and they are continuing to grow.
Over $31.5 billion in sales in 2020.
Tesla achieved an annualised production run rate of over one million cars per year at the end of September 2021.
On October 26, 2021, the company’s market capitalisation surged to over $1 trillion, making it the fifth U.S. company to reach the trillion-dollar milestone.
They delivered over 936,000 vehicles in 2021—nearly doubling their output in 2020.
In 2021, the company had 630 stores and service locations open, up 35% from the 466 locations a year ago. It also had 1,190 mobile service vehicles in operation, up 43% from 833 a year ago.
Image Source: Fabric Blog
I am sure you are aware of the significant presence that social media has today and despite having no dedicated marketing team Tesla is quite the expert in using it. The company has a strong presence on platforms like Twitter, Instagram, and Facebook. They are so focused on engaging with its audience, sharing updates about its products, and promoting its brand values. This particular applies to Elon Musk who engages with consumers a lot through Twitter.
As discussed by 'buildd', Tesla has no marketing department. So how do they sell...
Innovative designs- big investments in R&D and features such as cameras that allow you to be aware of the environment around you and the ability to design a car with features that you want.
Referral programme- a 2015 programme brought in many referees that received incentives like accessories, free car servicing, and software updates.
Accessible post-purchase customer support- delivers repair services to your homes, on the highway, or anywhere else convenient for you. An automatic self-diagnosis software program identifies issues and updates riders on them. This then means that a remote Tesla technician can communicate instructions for a quick fix or be physically present if it is more complex.
Company’s Goal- Tesla’s mission to accelerate the world’s conversion to sustainable energy resonates with car buyers.
WOM- Cross-promotion between Tesla and SpaceX, Press members testing models and writing reviews, FOX and MSN spreading news which has made Tesla go viral, Elon Musk responding to customers' ideas/thoughts through Twitter almost instantly (24 minutes). This got Tesla on Forbes, obviously not its list of world billionaires, for having Musk's Twitter account as their primary marketing channel worth $40 billion.
Elon Musk, the co-founder and CEO of Tesla, is a visionary leader who has played a significant role in the company's success. Elon Musk is known for his innovative ideas and his ability to disrupt. Musk's vision for Tesla was to create a company that would accelerate the world's transition to sustainable energy. He has managed to create electric vehicles that are not only environmentally friendly but also stylish and luxurious.
Image Source: Wix
Another part of the success and strategy of Tesla is its relationship with customers and its ability to connect with the community. According to Forbes, for Tesla connecting with the community includes customer forums and an owner club. This allows the company to build loyalty and passion for the brand.
As Tesla’s CEO Elon Musk said in an earnings call with analysts, “Every time the customers drive the car, they’re training the systems to be better. I’m just not sure how anyone competes with that.” By enhancing their products with digital capabilities, Tesla will continue to be able to deliver more value to customers. Tesla has also unlocked value by digitising aspects of their business processes.
(ThriveGlobal)
Tesla is very successful regardless of their marketing technique. Customer experience, technology, digital capabilities and Elon Musk are key elements in their successes. A video from the Capitalist emphasises some marketing tactics. Give it a watch and see what you can learn from it...
Video Source: YouTube, The Capitalist
I hope this blog post has learned you something new. What do you think about Tesla's marketing strategy? Does this now make you think more about other brands and their marketing?
As always thank you for reading my blog post, I hope you enjoyed reading it!