Published by Group 168: Chi S Siu (211274448) & Mazharul Islam Sujan (215305696)
Tesla Motors has no advertising, no ad agency, no CMO, no dealer network. And that’s no problem.
In 2014, electric-car maker Tesla Motors (NASDAQ:TSLA) delivered 41% more vehicles than it did in 2013. In 2015, Tesla expects to sell 55,000 vehicles, 74% more than it did last year. To sustain this type of growth, the company will need demand for its vehicles to continue to grow. Fortunately for Tesla, demand seems to be the least of its concerns — even as it refuses to spend a dime on advertising.
Tesla is a young company, but it’s already made history. Bloomberg’s Sam Grobart takes a quick look back at some of Tesla’s milestones since its founding in 2003.
Despite the fact that Tesla (NASDAQ:TSLA) spends no money advertising, does not employ an ad agency or a chief marketing officer, and has no dealership network, the company’s founder Elon Musk is building an auto brand whose reputation far exceeds the 10,000 cars it has sold in the past 10 years.
Instead of utilizing dealership as major automakers like Ford (NYSE:F) or Toyota (NYSE:TM) do, Tesla sells its electric vehicles through “stores” in upscale shopping malls and through the Internet. Currently, the company has 35 stores across the United States, Europe, and Asia, and has plans to open an additional 15 in the next few years, according to a filing made with the Securities and Exchange Commission.
Test driving also helps sales. “If you’re driving a Tesla, it changes your life. This thing is an incredible wonder,” said CNBC’s Jim Cramer on “Squawk Box” at the end of May 2013, regarding his test drive. “I’m not talking about the stock, I’m talking about driving the car.” Consumer Reports is in agreement. The iconic ratings magazine gave the vehicle a near-perfect score of 99 out of 100 in its May 2013 issue, citing the electric car’s power, “pinpoint” handling, and its quiet, well-crafted interior.
Communication Strategy
With Tesla only focusing on online sales, site traffic begins to be a major concern. Increasing site traffic is essential to the overall health of the company. The company’s communication strategy concentrates on three main media sources: Google’s Ad Words, major newspapers or magazines, social media outlets and company sponsored events.
The Tesla Motors website will be the main hub of all announcements and advertisements. The company will use this platform to announce new car, promote the campaigns, and give complete details
Social Media Platforms
Tesla also use the Social Media platforms, such as Instagram, Twitter, Facebook, YouTube, etc to make announcement and promote the events taking place.
Google Advertising
To help promote Tesla on the internet, the Company will use targeted advertising through Google Ad Words. The targeted advertising would be focused on those who are looking at electric vehicles or hybrid cars. Tesla will use Google’s specialised program to increase site traffic.
Media
Newspaper will be used to reach a certain demographic area that will increase site traffic. The New York Times, Wall Street Journal, Forbes magazine and Motor Trend magazine will be used.
Incentive Program
The online program is also a “guerrilla tactic” against car dealers in states where the automaker is not legally allowed to sell cars through physical stores, Tesla CEO Elon Musk said.
Tesla Motors introduced an incentive program on June 2015 to encourage owners of its electric vehicles to convince their friends to buy cars, even as the company spurns traditional marketing tactics such as advertising.
Tesla CEO Elon Musk described the incentives as an effort to ascertain whether the company can rely on social marketing tactics more heavily and open fewer retail locations.
Personal Experience on how Tesla does it differently:
The incomparable Tesla Model S, the ground breaking electric vehicle, which has taken the world by storm, has won the top prize at this year’s prestigious Good Design Awards.
The Model S is considered a leader in disruptive design and technology and is the world’s fastest four-door vehicle. It’s also earned the title of safest vehicle ever tested in the USA. It is changing the way the world thinks about transport.
Another judge commented, “Every aspect of this entry is amazing and truly deserves to be recognised at this level”. The Tesla Model S is described as delivering “supercar performance in a sedan”.
One of our group members was lucky to attend the Good Design Australia Award 2015 where Tesla won the award. The winners of various awards in that event whether a company /person had spoken in front of the audience on their work. But in case of Tesla they did not have any company representative for that speech, they had a customer there who recently bought Tesla to speak about the design of the car. It was really out of the box experience and that’s how Tesla does it differently.
Tesla believes in best product which will satisfy the customer needs and which will provide them the best possible advertisement.
Watching the success of Tesla, I think that’s about to change.
References:
http://adage.com/article/news/tesla-generates-small-sales-big-buzz-paid-ads/241994/
http://www.cheatsheet.com/automobiles/heres-why-tesla-doesnt-need-traditional-
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