Project Report
Marketing
Management Project
Group 9
IIMU PGDBAWE 23-
25
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Table of Contents
1. Executive summary.................................................................................................................3
2. Problem Definition................................................................................................................. 3
3. 5C Analysis..............................................................................................................................4
4. Market Segments................................................................................................................... 6
5. Industry Analysis (Porter’s 5 Forces)...................................................................................... 7
6. Targeting................................................................................................................................ 7
7. Positioning.............................................................................................................................. 7
8. Customer Survey.................................................................................................................... 8
9. Market Strategy......................................................................................................................9
10. Financial Analysis................................................................................................................ 9
11. 4P Analysis.......................................................................................................................... 9
12. Conclusion.........................................................................................................................10
13. References........................................................................................................................ 10
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1. Executive summary
Tesla is one of the emerging markets in EV industry with their services mainly focusing on a
niche market of four wheelers and two-wheeler market segment. Tesla Motors was founded as
an electric carmaker by engineers Martin Eberhard and Marc Tarpenning in 2003. Elon Musk,
co-founder of Paypal, led the initial rounds of investing for Tesla before taking over as CEO. In
2008, Tesla released its first electric car, the Roadster.
Tesla's mission statement is “to accelerate the world's transition to sustainable energy.” This
mission reflects the company's commitment to helping lead a global shift away from fossil fuels
and towards renewable forms of energy.
Since its founding in 2003, Tesla, Inc., has been a driving force behind the revolution of the
motor vehicle industry, focusing on providing reliable, efficient, and sustainable electric cars.
Tesla sells 1,30,000 products online from 1300+ curated brands. Growth of Tesla %XYZ YoY.
Tesla started expanding the business . Presence of Tesla in YZ different countries through it’s
channel. As of 16th Jan 2024, they have a total of 127,000 employees across globe.
2. Problem Definition
This report analyses the possible marketing opportunities for expansion of the Tesla in EV Bike
market. The interest from several EV players like Honda, TVS, Hero to enter the EV bike market
has increased the competition in this space.
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We carried out industry, brand and competitor analysis and customer interviews to assess
Tesla’s position to enter in the EV market and the possibilities of expansion.
3. 5C Analysis
3.1 Company
Tesla, Inc., American manufacturer of electric automobiles, solar panels, and batteries for cars
and home power storage. It was founded in 2003 by American entrepreneurs Martin Eberhard
and Marc Tarpenning and was named after Serbian American inventor Nikola Tesla. It quickly
became one of the most recognizable car brands in the world.
The company also branched out into solar energy products. A line of batteries to store electric
power from solar energy for use in homes and businesses was unveiled in 2015. Tesla bought
the solar panel company SolarCity in 2016 and offered rooftop solar panels, a solar roof with
energy-generating tiles, and a large battery called the Powerwall to store the power generated
for use when the sun was not shining or as a backup in case of a power outage. In 2017 the
company changed its name to Tesla, Inc., to reflect that it no longer sold just cars.
Tesla Inc (Tesla) is an automotive and energy company. It designs, develops, manufactures,
sells, and leases electric vehicles, energy generation, and storage systems. The company
produces and sells the Model Y, Model 3, Model X, Model S, Cybertruck, Tesla Semi, and Tesla
Roadster vehicles. Tesla also installs and maintains energy systems, sells solar electricity; and
offers end-to-end clean energy products, including generation, storage, and consumption. It
markets and sells vehicles to consumers through company-owned stores and galleries. The
company has manufacturing facilities in the US, Germany, and China and has operations across
the Asia Pacific and Europe. Tesla is headquartered in Austin, Texas, the US
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3.2 Competitors
Competitive advantage is all about high quality performance. Traditional car companies are
increasing their offerings of hybrid gasoline-electric cars as well as pure electric vehicles, such
as the Nissan Leaf. What's more, in China, where Tesla is a well-known brand, it holds just 6.6%
of EV market share. Competitors continue to ramp up manufacturing and sales efforts, and with
good reason. Fortune Business Insights estimated an annual growth rate of 24.3% for the
worldwide electric vehicle industry, from $287.36 billion in 2021 to over $1.3 trillion in 2028 .
Ford Motor Cosmpany, General Motors, NIO, Volkswagen
Market share is an important competitive advantage to capture and maintain. Tesla has four
EVs that own part of the electric vehicle market. As of October 2022, the top five selling cars
and their market share for Q2 were:
1. Tesla Model Y (30.4% market share)
2. Tesla Model 3 (27.8%)
3. Ford Mustang Mach-E (5.6%)
4. Tesla Model S (4.6%)
5. Hyundai IONIC 5 (3.8%)
Tesla remains the dominant player in the total luxury car market, but not necessarily in the EV
market. According to Cox Automotive, Tesla was the top-selling luxury brand in the U.S. That
comparison included well-known names such as Audi, BMW, Cadillac, Lexus, and Mercedes-
Benz.
However, Tesla’s share of the EV segment is dropping as the EV market expands and more
makers either enter or establish a greater foothold in the EV market. In 2022, Tesla 's market
share dropped to about 65% of new electric vehicles sales from about 72% in 2021. Tesla U.S.
market share in Q4 2022 was about 58%, down from almost 78% in the Q4 2021
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3.3 Collaborators
In a surprise May 25 2023 announcement, Ford and Tesla unveiled a collaboration
that astounded the electric vehicle (EV) industry, its analysts, pundits, news outlets, and the
stock market with the news that Ford is embracing Tesla’s EV charging technology, dubbed the
North American Charging Standard (NACS). Just as the dust began to settle, GM followed
suit on June 9, announcing its own collaboration with Tesla, with essentially the same
agreement as Ford.
The two largest automakers in the U.S. — who together with Tesla hold 72% of the U.S. EV
market—have declared that NACS is the EV charging standard they will use going forward,
rather than the Combined Charging System (CCS) standard used today by most EV
manufacturers in North America and Europe (including, for now, GM and Ford). Major EV
charging equipment manufacturers and leading EV charging network operators quickly followed
with announcements to support NACS.
3.4 Context/Climate
i. Political and Legal:
ii. Economic Environment:
iii. Socio-Cultural Environment:
iv. Technological Environment:
3.5 Customers
4. Market Segments
4.1 Geographic Segmentation
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4.2 Demographic Segmentation
4.3 Psychographic Segmentation
4.4 Behavioral Segmentation
i. User Status:
ii. Usage rate:
iii. Buyer- Readiness stage:
5. Industry Analysis (Porter’s 5 Forces)
i. Competitions:
ii. New Entrants:
iii. Substitutes:
iv. Customers:
v. Suppliers:
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6. Targeting
6.1 Evaluation of Target
Targeted market segment is evaluated primarily based on two factors:
i. Segment Attractiveness:
ii. Objectives and Resources:
6.2 Selection of Target
7. Positioning
7.1 Competitor Analysis
7.2 SWOT Analysis
i. Strength:
ii. Weakness:
iii. Opportunity:
iv. Threats:
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7.3 Brand Positioning from Bull’s Eye
8. Customer Survey
TBD
Additional Observations
9. Market Strategy
10. Financial Analysis
11. 4P Analysis
11.1 Product Strategy
11.1.1. Current Product Strategy: At present Tesla follows omnichannel model with online
stores. It houses xyz brands of cars, solar panels and other products.
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11.1.2. Proposed Product Strategy:
11.2 Pricing Strategy
11.2.1. Current Pricing Strategy:
i. Penetration Pricing Strategy:
ii. Skimming Price Strategy:
iii. Perceived Value Pricing Strategy:
11.2.2. Proposed Pricing Strategy:
iv. EDLP as a special option of Value Pricing Strategy:
v. Bundle Pricing:
Demand Forecasting:
i. Marketing Costs and Consumer Confidence:
ii. Staffing Efforts:
iii. High Sale:
11.3 Placement Strategy
11.3.1. Current Placement Strategy:
i. Tesla’s owned stores:
ii. Licensed stores:
iii.E- commerce (App and website):
[Link]-up counters in supermarkets:
v. Partner agents:
11.3.2. Proposed Placement Strategy:
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11.4 Promotional Strategy
11.4.1. Current Promotion Strategy:
11.4.2. Proposed Promotion Strategy:
i. Guided Customer service:
ii. Store Ambience:
iii. In-store events:
iv. Customer Loyalty Program:
12. Conclusion
13. References
[Link]
[Link]
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