Ch. 16 - Advertising, Public Relations and Sales Promotion

Tesla advertising strategy is unique because they don't spend millions of dollars on ad campaigns like other car companies. Most of there advertising is by word of mouth, videos, forums and blogs. Also, Tesla retail stores are part of the adverting too.

Tesla hasn’t needed to advertise its cars or spend not one penny because its fans do that for them and for free. According to spokeswoman Alexis Georgeson, who is the closest to a PR person in the company says:

“Right now, the stores are our advertising. We’re very confident we can sell 20,000-plus cars a year—without paid advertising. It may be something we’ll do years down the road. But it’s certainly not something we feel is crucial for sales right now.”

Tesla offers consumers free test drives. The consumers spread the message to family and friends about Tesla cars which later result into sales without spending any money on advertising.

Tesla Model S: Gallons of Light Video

Goal: The goal of this campaign is to show that long range travel is finally accessible to electrical vehicle owners without spending a single penny on gas.

Motto: Tesla’s motto is “we love our customers.” They captured a real family’s first road trip in their new Tesla Model S. Use Tesla’s network of solar-powered Superchargers to fuel the journey.

Impact:

The campaign was tweeted by Tesla CEO Elon Musk and distributed across Tesla’s social media channels. Over 200k YouTube views. Press coverage from FastCompany, AutoBlog Green, Current TV and many more.


 

Ch. 14 - Marketing Channels and Retailing

Tesla Motors retail experience is unique because it owns and manages every stage of its business model, from concept to design to manufacturing and sales. Unlike the rest of the auto industry, Tesla sells its Model S directly to customers, also known as a direct channel, bypassing franchised dealer networks.

“Our technology is different, our car is different, and, as a result, our stores are intentionally different.”

Elon Musk Tesla Chairman, Product Architect & CEO 

I decided to go into one of Tesla Motors retail stores (511 W 25th St, New York, NY 10001) to research and view the current retailing mix. 

Overall, going inside the store was a good experience for me in learning the retailing aspect of marketing. The only problem with this store I visited was the lack of sales personnel (only one sales person at that time) and I waited for 45 minutes before the salesperson arrived from his lunch break.  

Retailing mix: 

 

Product:

The Model S has excellent handling, is very quiet, spacious, and safe.  

 

• Highest safety rating in America
• Autopilot equipped
• Available All-Wheel Drive Dual Motor
• Zero to 60 mph in as little as 3.2 seconds
• Up to 270 miles range (EPA)

Place:

Tesla sells their cars in their own stores and online. They currently have about 41 stores and galleries. Tesla opened its stores in high traffic retail locations. 

Price:

The price is the price: no negotiation. The price of a Tesla car depends on the buyers preferences. The price is the price: no negotiation. Prices range depending on which packages are selected in the customizing process by the buyer.

I.E.

60 kWh Battery option is available at $71,070 - $7,500 Federal Tax Credit
State incentives available in CA, CO, GA, IL, LA, MA, UT.
 Promotion:

Tesla uses social media as their sole promotion technique and test drives. 

Personnel:

At a Tesla store, their goal for its employees is to educate, not to use aggressive sales tactics. There are no commissioned sales people.  

Presentation:

Tesla Motors retail stores are similar to the layout as an apple store.  The retail stores have one or few floor models for customers to view. The stores layout engages the customer through a series of hands-on interactive touchscreen experiences.