Tesla Example 2 .pdf - MK9700 Strategic Marketing in the Digital Era Summative Assessment Component 2 Tesla Case Study W12022215 Word Count 2,196

Tesla Example 2 .pdf - MK9700 Strategic Marketing in the...

This preview shows page 1 out of 11 pages.

Unformatted text preview: MK9700: Strategic Marketing in the Digital Era Summative Assessment Component 2 Tesla Case Study; W12022215 Word Count: 2,196 Words (Excluding title page and Reference Pages) Introduction Founded in 2003 with a mission to prove sustainable vehicles can provide an improved performance over their gasoline alternatives, Tesla pride themselves on all-round safety and sustainability whilst creating consumer car options which are accessible and affordable through pioneering technologies. Tesla’s corporate slogan sets out that the company aims to “accelerate the world’s transition to sustainable energy” (Tesla, 2019). Utilising this slogan, it can be understood that the company’s vision centres about provision of sustainable energy through an offering of options to the mass market in such a way that it can provide impact on a global scale at relative speed. Promotional strategy and branding concerns itself with the manner in which a company 1 language and imagery on a wishes itself to be perceived and consequently promotes this through variety of platforms and outlets, centred around its ethos and aims. Through use of promotional branding and strategy, Tesla have placed themselves as a key contender within the technologically advancing climate of the 21st century. However, it is an ever-developing market and new emerging trends must be acknowledged and engaged with effectively in order for the brand to remain relevant in the coming years. In order to effectively connect with a potential customer, an emotional engagement must be formed; “An emotional engagement develops when a customer identifies with the values of a company” (Wrigley & Straker, 2019, p. 18). To continue aligning themselves with innovative technology and ground-breaking advancements, Tesla must present their ethos clearly and through appropriate channels with relevant messaging in order to ensure continued and improved relevance with their target market. In order to maintain their positioning as an innovative force within their sector, three digital themes key to the development of Tesla’s promotional strategy and branding over the coming five years must be addressed. These three key themes are digital message creation, experiential2events and the digital platforms used to achieve the correct impact with the correct audience. This report aims to address Tesla’s overarching target market, discussing the manner in which this presents itself within America as well as its transposition globally. It will then proceed to illuminate the manner in which awareness of the target market should influence the three aforementioned digital trends and how these must be addressed to ensure continued success in coming years. Tesla; Target Market Tesla have multiple target markets for their products, which have evolved from Tesla’s inception through to present day. Tesla initially aimed for the “high-end sports car market” (Mangram, 2012) and has since placed itself within the “Mainstream vehicle consumer segment” (Mangram, 2012). In order to develop their market share, Tesla’s business model was to sell a number of highly priced cars to a premium paying market, before using the success of the sales to produce further cars with higher levels of production and smaller price tags to sell to slightly lesswealthy audiences. As such, they have penetrated a larger segment of the market upon each product release by targeting segments containing those who are eco-conscious and technically minded. With technological advancements and eco-friendly solutions at the core of Tesla’s offering it is important to note the rising interest in sustainability and sustainable living amongst the population, and to note that it stems from a particular sociodemographic subset; “studies […] provide general support to the general view of the environmentalist as a fairly well off mature individual” (Gilg, Barr & Ford, 2005). However, with the technological advancements offered by Tesla, this reduces the age range of the audience targeted to that of digital natives rather than digital immigrants. Demographic Sociographic Psychographic Geographic Tesla's Target Market Profile 25-34 Young Professionals Early adopters of New Technology Predominantly American market Digital Native' ABC1 Sustainably minded Global aims Tesla’s predominant target market is also arguably a younger audience, likely made up of young professionals and business people, who are either early adopters of new technology or sit on the periphery of this psychographic criteria. They have a desire to keep up with the trends and are also more likely to be digital natives and therefore largely reside in the 25-34 bracket. The Acorn CACI profile most reflective of the aforementioned target market would be that of the Metropolitan Professionals within the Rising Prosperity category (Acorn CACI, 2019). As reflected by this profile, they are also a wealthier segment who are likely to live alone, with friends or a partner and are yet to have children leaving them with further expendable income. Whilst limitations surrounding use of Acorn CACI mean it is not a perfect reflection of the American market in which Tesla is based, the profile serves as an insightful tool to better understand the target market within America whilst also allowing an insight into their global audience. It should be noted that at present Tesla’s market penetration is mainly within the United States market, where they are estimated to hold a 1.29% share of the market in December 2019. (Statista, 2019). 3 4 Digital Trends (1100/1200) Digital Message Creation (473); To fully understand Tesla’s digital message creation, both official and unofficial channels must be considered. It is important for the purposes of evaluating this trend to refer to the brand’s own social channels as well as to the personal accounts of their CEO; Elon Musk. All social platforms associated to either Elon Musk or the brand have an impact on the success of the company due to the growing importance and influence of digital media and it’s consumption by the general population. The importance of any message conveyed online is therefore paramount to the positive alignment of current and potential consumers. The brand uses social media primarily to provide content concentrated on presenting their pioneering technology in order to portray themselves as a “disruptive force in the car industry” (Falát & Holubčíkb, 2017, p. 151). Tesla’s message creation must align itself to the values of sustainability as well as technological innovation in order to succeed for them in the future. Whilst the technology they publicise is important to brand image, it must also place itself within the eco-friendly movement during the new decade in order to continue its mass market growth through its mission to ‘accelerate the world’s transition to sustainable energy’ (Tesla, 2019). Messages created must align strongly enough with the sustainable values of the target market in order to attain the endorsement of the audience through sharing; “By the very act of forwarding a viral message, there is an implicit endorsement of the content and the credibility of the message is enhanced” (Harvey, Stewart & Ewing, 2011). The tie strength of each message must be reflected upon in order to ensure success through strategic content creation; “combination of the amount of time, the emotional intensity, the intimacy (mutual confiding) and reciprocal services which characterize the tie” (Granovetter, 1973, p1361). Tesla must also ensure that the sustainable energies they utilise are portrayed correctly alongside technological advancements in order to create consumer affinity with the brand. This would be beneficial for them as it would place them as a sustainable leader in a market 5 where sustainable options are rapidly becoming a mass market concern, especially amongst a younger demographic such as their target market, due to climate change. Furthermore, in regards to message creation, Tesla must also be wary of the impact Elon Musk’s social feeds have upon the company as a whole. Mueller (2019) notes “What are a CEO’s words worth? In Elon Musk’s case, they are getting costlier almost by the day.” Tweets by Musk have cost the company several hundred million dollars, legal battles and implications implemented by the U.S. Securities and Exchange Commission due to incorrect content or inflammatory language amongst other reasons. It is important, to avoid further negative brand image or monetary repercussions, that Tesla ensure messages created and promoted from Musk’s accounts align with the company values and have minimised chance for negative repercussions. Use of Platforms (355); Tesla use a variety of social platforms in order to convey their6message and engage with their audience; Twitter, YouTube, Instagram and Facebook primarily. However, it is apparent that on social platforms owned by the brand posts are irregular. Through a number of platforms, Tesla have utilised brand-led social media to lead conversation regarding their products, yet this must become more strategic if Tesla are to succeed in the coming years. For Tesla to make meaningful changes in the use of their platforms, it should first be considered the manner in which their target market consumes information. Using the age bracket 25-29 from the table below as guidance, it is apparent that content through YouTube is most impactful for Tesla’s target market, alongside use of Facebook as a secondary platform (Marketing Charts, 2019). Tesla’s current strategy sees a primary usage of Twitter which is less impactful for the audience being targeted. Therefore, to have the most successful impact within the coming five years, Tesla should begin using YouTube primarily as well as a much more concentrated organic content schedule through Facebook. Whilst LinkedIn is a lower percentile within the age bracket, it should also be utilised in order to attract the younger professional audience. (Marketing Charts, 2019) 7 Furthermore, it has been noted that “companies should choose carefully which digital channels they use, as being active is one of the key requirements of successful digital channel design.” (Wrigley & Straker, 2019, p.15) In line with the above, Tesla’s strategy should aim to pursue a more regular content schedule in order to curate a successful brand across their chosen platforms in order to better engage with their digitally native audience. There are a number of theories on how many times content should be uploaded to any one site; “The “ideal” frequency depends entirely on your business goals and the amount of time that you are willing to commit to your social media marketing efforts.” (Patel, 2016). Without an assigned and financially backed marketing budget, it is arguable that content should be posted regularly in order to stay at the forefront of consumers minds. As such, Tesla should engage with a more regular post schedule across the appropriate platforms in order to ensure they maintain and improve upon their digital presence over the coming years. Experiential Marketing (262); Tesla’s experience-led sales approach is one which sets it apart from market competitors. Experiential marketing allows an organisation a “Two-Way Interaction-focused, experience-oriented strategy across everything they do in an authentic and real way that has relevance to their audiences.” (Smilansky, 2017, p.12). Smilansky argues that some of the most valuable companies, as identified by Forbes’ in 2016, have created a “golden brand bond” (2017, p. 11). The methodology of experiential marketing leads brands to create an advocative community who are genuine ambassadors of the brand through meaningful two-way interaction. Tesla has, and should continue to, seek to create a similar bond with its own consumers in order to remain an impactful brand in spite of their unpaid marketing strategy. Alongside use of organic social media interest, Tesla utilises a more experience-led approach to their marketing and sales through an unfinanced approach to advertising and the use of test driving at brand-led showrooms in place of this. Through this approach, Tesla initiate a meaningful conversation through direct interaction with their consumers. The brand confidence held by Tesla’s consumers stems from a marketing style relying prominently on a direct to consumer approach. As suggested by Mangram (2012), Tesla have adapted this marketing approach for their showroom environment from Apple who “provided customer prospects with a ‘hands-on’ experience of Apple's brand values within a stimulating, no-pressure environment and allowed them to leisurely learn more about the Apple family of products.” Tesla utilise this technique to offer an air of exclusivity, whilst also placing themselves as a brand relatable to current and potential buyers. In order to remain ahead of the trend, Tesla need to look for new opportunities to develop their experiential marketing offer to their target market utilising their successful no-pressure approach and engaging with the sustainable values of their audience. Conclusion; All three digital trends identified in this report have far reaching implications to the success of any business in the coming years, should they be correctly engaged with. This is due to the developing nature of the digital industry and consumers having the power to request the ways in which they are consume content and products; particularly online. Message creation has to be directly relevant to the needs and desires of the target audience, as well as the developments within the world which directly impact them. For instance, Tesla’s target market needs organic and meaningful interaction in order to become engaged and their values would align with content promoting a clear approach to sustainability alongside technological advancements. Use of platforms requires that any company identify which platforms are relevant and utilised by the target market and avoid potential fads. In this instance, ensuring use of established platforms associated with the young professional demographic is imperative. Experiential marketing is directly attributable to the success of Tesla thus far in an increasingly sceptical world. Ensuring that consumers have an authentic connection to a company is key to the longevity of any given relationship with the younger target market who, as digital natives, have the strategic thinking and contemplative skills of their own to look elsewhere should they not be fully satisfied with a company’s offering. 8 References Acorn CACI. (2020). 16: METROPOLITAN PROFESSIONALS - SUMMARY. Retrieved from Bamberg, S., & Möser, G. (2007). Twenty years after Hines, Hungerford, and Tomera: A new metaanalysis of psycho-social determinants of pro-environmental behaviour. Journal of Environmental Psychology, 27(1), 14-25. doi: Falát, L., & Holubčíkb, M. (2017). The Influence of Marketing Communication on Financial Situation of the Company – A Case from Automobile Industry. Procedia Engineering, 192, 148-153. doi: Gilg, A., Barr, S., & Ford, N. (2005). Green consumption or sustainable lifestyles? Identifying the sustainable consumer. Futures, 37(6), 481-504. doi: Granovetter, M. (1973). The Strength of Weak Ties. American Journal of Sociology, 78(6), 1360-1380. Retrieved January 7, 2020, from Harvey, C., Stewart, D., & Ewing, M. (2011). Forward or delete: What drives peer-to-peer message propagation across social networks? Journal of Consumer Behaviour, 10(6), 365-372. doi: Mangram, M. E. (2012). The globalization of Tesla Motors: a strategic marketing plan analysis. Journal of Strategic Marketing, 20(4), 289-312. doi: Marketing Charts (2019). US Adults’ Social Platform Use, By Demographic Group. Retrieved from Mueller, W.F. (2019). Death by social media—Elon Musk is showing us how it’s done. Retrieved from Patel, N. (2016, September 12). How Frequently You Should Post on Social Media According to the Pros. Forbes, , Retrieved from Smilansky, S. (2017). Experiential marketing: A practical guide to interactive brand experiences. Kogan Page Publishers. Statista. (2019). Tesla's estimated U.S. market share from January 2019 to December 2019. Retrieved from Wrigley, C., & Straker, K. (2019). Affected: Emotionally Engaging Customers in The Digital Age. John Wiley & Sons. Comment Summary Page 2 1. Reference? 2. Sign post research that informs these trends Page 4 3. Wide range of segmentation varaibles audiences seems logical Page 5 4. ensure you proof read 5. Agree research to support Page 6 6. stats to support this e.g audiences engagement 7. good use of research Page 8 8. In what ways? ...
View Full Document

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture