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Discuss about 'the Marketing Elements and its Success in regards to Tesla Motors’ an American Automobile Company.

The following report is going to analyse the product and marketing qualities that has made a brand to be at the top most choice of the consumers. In the world of invention and innovation, product manufacturing and marketing has reached to a new height thus reaching to the greatest number of people around the world (Castells 2014).  According to Davenport Davenport and Kudyba (2016), technological advancement in the sphere of production and marketing has accelerated the agility of the reach of the products to the greater number of audiences.

The report tries to find out the top consumer product of this century.  There are different parts of the report that constitutes the summary of the product, target market of the product, market genre of the product, competitors, reasons behind the success of the chosen product and its life cycle stage. The report ends with a fair recommendation that can be implemented in the marketing criteria of the chosen product.

The report illustrates the marketing elements and its success in regards to Tesla Motors’ an American automobile company that has manufactured an autopilot car Model 3. However, the latest model of Tesla Motors did not create a huge market scope in the global marketing arena. One of the best cars that Tesla has ever produced in the Model S, the best selling Sedan in American as well as global market. Every detail of the car’s marketing is going to be chronicled in the following report.

Model S, manufactured by Tesla Motors has created an epoch-making sales option in the global market. In its fourth quarter the product has reached to 76% growth in its sales. The electric car of Tesla, to me, tops the list of the best consumer products of the century. The chosen product has the highest amount of market share in the United States. thorugh the car did not make a move to the developing  countries in the African and Asian continent, its market move to the developed countries like the USA, Germany, France, Australia and other has been note worthy. Among twelve top rated cars Model S won the best car award in the Car Sales 2015 award.  Tesla Motors has always been in the headline for its products innovation and marketing criteria. It has been considered one of the best cars of the twenty first century in Car Sales best car festival.  In terms of the quality of the car it can be said that Model S is an electronic sedan that has been first of its kind in the US market thus creating a huge opportunity for high level sales. Innovation in technological application in the manufacturing of the car has also attracted million of the customers.

The car has also held the record of highest number of test drive. However, the high cost does not allow the car to reach to customers of the developing countries. There have been many debates because of this approach of Tesla that the company does not make cars for the daily commuters. Followings are the most attractive features Model S:

Tesla Model S Target Segment

It is all electric thus creating an economical and gas free driving. The concept of being eco friendly has also created a scope of marketing in the international arena.

The aluminium body of the car also makes it light weight. Moreover the comfortable body structure of the car has also become centre of attraction for the customers.

The target segmentation of Tesla has always remained classy and elite. Due to its highly innovative product launch, the company does not facilitate the middles class to afford the cars.  It is obviously not the commuters’ vehicle, since it has the quality of a sports car. Yet, Model S has been into the market for a long time and it has become one of the best selling cars in the United States. Moreover, the best selling market of the car does not target the audience who want to use it in a daily use purpose.

Though Tesla sounds bit costier than the other cars, the present customers of the brand purchases it in not more than seventy thousand USD. Most of the customers are esteemed and well established business executives or entrepreneurs. The other types of the customers are the tech savvy or the renowned engineers.  It can therefore be said that the product is launched for the upper middle-class customers who have sound economic stability and stable income source.  Moreover, Tesla Model S has been manufactured in order to target the generation Y who has core fascination to luxury cars.

 Tesla does not look for a huge group of market audience. It rather targets the individuals belonging to the upper-middle class society. It generally looks for the people who have their income over $100,000. Hence it has failed to reach to more than seventy percent of the customers thus not providing scope to enjoy one of the best cars in the world.

In case of the demographic market segment, the brand typically targets the male sections of the society that has the brand fascination for the sports and luxurious cars. However, there are numbers of female sections in the global market arena who are found to be purchasing the car for their drive purpose.

Moreover, it has also ensured the behavioural segmentation of the customers. Since the car is eco- friendly band does not run on fuel, it has also created likeliness among the traditional customers who support sustainable development. The other behavioural segmentation for Tesla S is the customers who have the tendency to go with the technologically sound vehicle.  Tesla S is the perfect amalgamation of technology, luxury and sustainability.

Model S is seen to be posting advertisements of the cars pertaining to its great performance on the road. The electric bvehicle benefits the ecology without sacrificing the style and elegance.  The advantage of the car is that it does not divert from the traditional European style of luxury cars though maintaining sustainability in the business. It has the potential to be called a complete car because of its approach towards the environment as well as the broad automobiles market.      

Market Segment

The marketing authority of the car decided to position the car in its entry level after the survey of its sales in the growth stage.  Now the car has again come to the growth stage after resubmission of strategies in the market.

Since there are different segments of consumers in the market, they have different needs and demands form a particular product. In the age of sustainability, a particular segment of the customers have been demanding for a vehicle that does not harm the environment. Moreover there are other customers who love their cars to be technologically equipped. There are customers who have the fascination towards luxury and class. Tesla S covers all the criteria of customer need and demand.  There is no single corner of the customer demand for a perfect car that is not fulfilled by Tesla Model S. This is why the car has been top rated by most of the car lovers in the world (Bohnsack,  Pinkse and Kolk 2014).

According to an article published in Forbes, there is decent amount of information that is available pertaining to the geographical market of Tesla Model S. However, there are some obvious markets for Tesla S to be sold and promoted. Tesla’s major market has been USA- the home country for Tesla (, 2017).  It has the projection of more than 4000 models in the local country. The second largest market of Tesla S has been China with more than fifteen hundred models to be sold in the market. The third largest markets have been the European countries where the brand is projected to have more than twenty two hundred (2200) models. Tesla’s best selling cars are found in the countries of Netherlands, United Kingdom and France.  It has not successfully entered into the market of Germany so far because of the presence of car giants (Frome et al. 2014).

There is no specific region for the marketing availability for Tesla S.  However, the market is limited for the car. It has not reached to the greater market segment in the developing countries that has the greater population strength.

There are other products of Tesla Motors that are available in the market. The product line of a product is the other products of the same company. The strongest internal competitor of Tesla S is Tesla 3- another epoch making car brand that has repeatedly been giving strong competition to Tesla S. However, the basic difference between Tesla S and Tesla 3 is zero pilot.  The pilotless car Tesla 3 has been in the line of competition since 2015; however, ease of access and affordable price of Tesla S has put Model 3 back to the former one.

Another important and strongest competitor of Tesla S is Tesla X. According to the consumer report of Australia and USA, Tesla X is friendly to most of the consumers who cannot afford to buy Tesla S. The consumer friendly model of Tesla x has been favourite for the commuters from almost every economic class. However, Tesla X could never give hard competition to Tesla S (, 2017).


The basic reason behind Tesla’s eye cracking market success is its marketing strategy. Besides wonderful features of the car, the marketing strategy adopted and designed by the company has been a determining factor to give a lead in the market. Since, Tesla S is the perfect ensemble of class, style, technology and sustainability; it has created huge market response. The main reason behind the market success of Tesla S has been its product quality and marketing strategy. According to the consumer report, the car has got 99 points out of 100.  It has been the highest rated car of he century, as per the decision taken by the Forbes. The person behind the successful sales of Tesla S is Elon Musk a marketing master. However, the key reason for the success of Tesla is its being an electric car. It is perhaps the first electric luxurious sedan that has been technologically at its highest innovation. Most of the cars in the world lack these criteria thus making it truly a unique car in the global market. Model S has inspired Model S SUV that was launched in 2015 thus becoming one of the most awaited cars of the century. The fame and esteem of Model S has been carried forward to model S SUV and there is another effort to make it look bigger than ever (Bae and Kwasinski 2012.).

Though Tesla had initiated a venture with innovative idea for e-car, there are other solid competitions in the external product line. The German car giants BMW andMercedes have also launched their latest products causing threat to Tesla.  BMW’s i5, Mercedes Benz IAA, Porsche’s Pajun EV and Fisker Karma’s E-Lux are the major global competitors of Tesla S.. The aforesaid models have almost same criteria as Tesla S has. In recent years BMW i5 has created a threatening market review to Tesla. The present market competition has also given an extra edge to the marketing of Tesla S. Both S and S SUV have provided advantage to the marketing advancement of Tesla. The following diagram illustrates a competitive advantage of Tesla S in the market (Palin et al 2012)

Fig1: Comparative Market Study

As per the previously mentioned graph, it can be said that the current market position of Tesla S is higher than any other automobile brand. There is a huge marginal gap between the sales of Tesla S and other luxury sedan brands           

Tesla’s Model S has been one of the most innovative products with it being in the growth stage of the product life cycle. It has gone on to become one of the most bestselling vehicles in America in the segment of electric. They are positioned in the growth stage as the electric vehicles are finding more acceptances among the people and the sales figure is on the rise. This new section of consumers have been showing enough interest in buying these electric vehicles and the companies that have been producing electric vehicles are witnessing a rise in the purchase of this cars. Electric vehicles are quickly becoming a custom where Tesla can endorse their products to a customer base that is larger in nature.

Consumer Needs and Satisfaction

The growth stage is the second step in the product life cycle and for most of the manufacturers this is the important platform for ascertaining the position of a product in the market with enough increase in sales and augmenting on the margin of profit (Bartlett and Twineham 2013). Tesla has definite plans in expanding their production and increasing their distribution for meeting the ever increasing demand of the car in Asia and Europe. The expectation that the company has kept from its sales in Europe and Asia would enable it to reach an annual production of 50000 by the end of this year.

The product quality of model S is being well-maintained by the organization, for instance, it has been paced the safest car by NHTSA. The advantage of using this model is the lack of gas tank in it, which generates a longer crumple precinct for absorbing the impact of high speed. The starting price of this model from the house of Tesla has been kept at 70,000 where the company is being enjoying an increase in the demand with little or no competition. Tesla would be rising from here on as the industry of electric vehicle would be expanding in the days to come. As of now there is no scope of this product from Tesla to reach the stage of maturity as there lays many untapped markets in the regions outside of North America. Tesla needs to cover all those before any other brand taps into any of those.

There is always room for improvement and the same is the case with Tesla Model S, where the company can focus on more in-depth analysis of the car to make it perfect.

-Estimating needs of mileage: Tesla sales executives need to make clear that there is every chance the rated miles (ideal range) would not be attained by the user. Some of the reasons would be like intraday drain of battery and driving on the throughway above 65 miles per hour. People have been getting 90 per cent of the “Ideal Range” but even sometimes fewer than to facilitate. Moreover, when the user gets hold of the car, they would be recommended in configuring the battery so that it only arraign around 70-75 per cent of the capability that would be extending the life of the battery but limiting their range. These factors should shape into the preparation of the battery size for the car to be ordered.

-Spare tire option: There is lack of spare tire with no standard sized spare tire and no donut which according to the customers have been one of the bad decision made by the company. it might happen any time that the driver might experience a flat tire and the gas station might be far away from that place. Moreover, it would require for the gas station service providers to make safe the same brand for replacing the tire. It is recommended for the company to include a donut as a standard or for-free alternative.

Product Market

Tire: Goodyear eagle RSA tires have been a bit harsh for the road conditions that exist on some of the areas, producing a ride that is devoid of any sort of comfortability. A softer tire might solve the purpose and a few modifications on the style of the tire too keeping in mind the bumpy and uneven roads. The only good news that the users of this car can find is the replacement tire that is being installed costs less than $200, half of what it costs for the tire of Mercedes.

Accessories: It offers the alternative for conservatory cords for 110 and 240; people can buy this at a hardware store or some other sporting goods store, but then why would people have to do this when they are already paying so much for the model.

Bag that is being included for charging cables: It is generally cheap in nature and a tiny one having only one zipper. Drivers and other users find it hard in stuffing things like the charger cords in and out of it. The company should focus on these little details and would do well in upgrading this for the same.

Topping off: This is the challenging part to do. It happens when one is driving his Model S for approximately 10-15 miles and then tries to charge it at night with it exhibiting full charge when it actually is not. If people are leaving their car unplugged for several days without involving it in driving, the battery is such that it would drain out and would not be recharging at night time. The customers or the users should be made aware by the company about the cutoff below which the battery might charge.

-Sealed location for papers, coins and garage door openers: Users have been trying to get an easy access but sealed off location for the items such as registration papers, coins, and the opener for garage door.

-A/C: The air conditioning machine installed in the Model S cars takes a while to cool. It is suggested to design their cars with 3 sets of triples and bigger single vents instead of the 3 sets of corresponding vents and a single emit.

-Trunk of the car: It is well recommended to have an option from where the users would be able to open the trunk with the help of the app existing in the phone and also from the control panel that is there present in the car.

Despite having competition in the global market, Tesla S has retained its market fame and top position. No other automobile brand in the world has been able to compete with the Model S and win it.


Having gone through the features nad the marketing strategies of Tesla S, it can be said that the brand has been at its marketing apex because of its advance technology and sustainability.  The product life cycle of Tesla S has been in an evolving stage that is the growth stage. During its initial years, Tesla S was at its peak of market rumours. However it has not offended the consumers with any discrepancies of the projected commitment. The users have been highly satisfied with the product and the car has been voted at the top list of favour. The car has mostly given edge to driving luxury of the customers thus creating a sense of satisfaction. As per the customer reviews, Tesla S is so far the most comfortable car while driving. The model also looks executive and it has a brand image as well.  the class S has created can be retained in the further manufacturing of the cars. This is why the company has decided go forward with Tesla S SUV recovering the setbacks that it had in Tesla S.

The report has produced an insight to the product criteria as well as the marketing segmentation of the car that has its effect on the entire sale


Bae, S. and Kwasinski, A., 2012. Spatial and temporal model of electric vehicle charging demand. IEEE Transactions on Smart Grid, 3(1), pp.394-403.

Bartlett, D. and Twineham, J., 2013. Product Life Cycle. In Encyclopedia of Corporate Social Responsibility (pp. 1914-1920). Springer Berlin Heidelberg.

Bohnsack, R., Pinkse, J. and Kolk, A., 2014. Business models for sustainable technologies: Exploring business model evolution in the case of electric vehicles. Research Policy, 43(2), pp.284-300.

Castells, M., 2014. Technopoles of the world: The making of 21st century industrial complexes. Routledge.

Davenport, T.H. and Kudyba, S., 2016. Designing and Developing Analytics-Based Data Products. MIT Sloan Management Review, 58(1), p.83.

Eberhard, M. and Tarpenning, M., 2006. The 21 st Century Electric Car Tesla Motors. Tesla Motors. (2017). Forbes Welcome. [online] Available at: [Accessed 24 Apr. 2017]. (2017). 2016 Used Model X Market | Tesla. [online] Available at: [Accessed 24 Apr. 2017].

Frome, A., Corrado, G.S., Shlens, J., Bengio, S., Dean, J. and Mikolov, T., 2013. Devise: A deep visual-semantic embedding model. In Advances in neural information processing systems (pp. 2121-2129).

Palin, R., Johnston, V., Johnson, S., D'Hooge, A., Duncan, B. and Gargoloff, J.I., 2012. The aerodynamic development of the tesla model s-part 1: Overview (No. 2012-01-0177). SAE Technical Paper.

Stark, J., 2015. Product lifecycle management. In Product Lifecycle Management (pp. 1-29). Springer International Publishing.

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