The Strategic Marketing Process

Question: Write an essay on the strategic marketing process. Answer: Currently, the strategic marketing process is significantly prioritized by the global marketers, as it helps to create a right alignment of the potential marketing strategy with the operation and management goal of the firm. Depending on the leaders marketing orientation and analytical skills, the firm becomes able to analyse the recurring issues and the right path to utilize the effective marketing principle, strategies and the practices (Bhatt Emdad, 2010). The strategic marketing process, helps the managers to utilize multiple marketing channels to deliver and receive messages from the target audience, based upon which, the brand positioning takes place. As a consequence, the targeting, positioning becomes effective to experience potential growth and brand sustainability in the global market. The complexity, breadth and the richness of the marketing mix plan drive the firm to do consumer directed activities. Eventually, acquiring potential market share becomes comparatively easie r task to the brands. Considering all these aspects, the present study attempts to analyse the strategic marketing plan of the electric vehicle manufacturer, considering the case study of Tesla motors, which has profound marketing management implications. The study comprised of different segments such as the background of the Tesla motor company regarding the products, vision, mission and the current marketing objectives. In the latter part the study has conducted a detailed situational analysis, followed by the planning of the marketing promotion objective and strategies for the FY 2016-2017. The media and budgetary allocation are also described by the researcher, ending with the concluding notes based upon the overall analysis of the study. Background of the studies: Company: Tesla Motors, Inc.is an Americanautomotiveandenergy Storage Company was established in the year 2003 (Bolton et al. 2011). It designs, manufactures and sells the electric cars, electric vehicle power train components and battery products for its target market. Additionally, the Tesla Motors is a public company which trades on theNASDAQstock exchange. In the first quarter of 2013, Tesla posted profits for the first time (Baum et al. 2008). The strategy of selling eco friendly sleek designs with high margin echoes Apple computers business model has differentiated the brand from the competitors like Ford, Chrysler, etc. the electric vehicle ecosystem of Tesla motor has created a unique market environment in the global operation. The firm has met revenue of US$4.04 billion in the FY 2015. Products: The firm Tesla operates in the niche market segment. As a consequence, the product ranges offered by Tesla is relatively lesser than the other car manufacturer organizations. Mainly three types of products are sold by Tesla: Electric luxury cars Rechargeable energy storage system and The automotive components Vision and mission: The vision statement of Tesla motor is to build a wider range of model into the market, including a range of highly affordable priced cars for the global consumers. In this regards Cooper et al. (2009) informed that one of the investor Elon Musk believes that price affordability with high end specification is the prime attraction of Tesla motors, which is overarching the purpose of the Tesla motors. The firm has set a vision to move into the solar electric car from the mine-and-burn hydrocarbon economy. The mission statement of Tesla car is to accelerate the advent of the sustainable transport by introducing compelling mass market electric cars to market the products as soon as possible. In this regards Baron Henry (2010) also commented that Tesla is very specific and consistent with its goal, as the created goals and objectives before a decade has been found exact as it is today. Not a single alteration has been made upon the mission statement of Tesla. Current marketing objectives: To build a long term brand awareness among the target mass and manage long term corporate reputation To enhance the demand for the vehicles and provide leads to the sales unit To manage optimised brand loyalty To enable the customers sharing their views for improving the current product development process Situational analysis: Market demography: Tesla motors have established itself as one of the market leaders in global electronic vehicle market. As the company is going to attain a sustainable market position in the Australian market it is essential to develop an entry level luxury automobile marketing plan depending on the Australian demographic status. Due to the recent lethargic economic performances of the country, the Australian customers are little bit worried while assessing the personal finance advantages (Marthinsen, 2011). Although, as the consumers group are very competitive and like to spend money on the essential things, the entry level market position would be good for Tesla motors. Demand analysis: The market demand of Tesla motor is high from the beginning as the US Company has created the worlds first fully electric sports car. In the opinion of Eckhardt Shane (2010), Tesla motor has accelerated the development of the sustainable transport by introducing the electric vehicle technology. Tesla wants to develop a high performance electric vehicle power train technology to reduce the environmental impact of transportation energy. The power train technology is beneficial for increasing more renewable resources. Adding to this, the battery systems vehicle developed by Tesla performs a high volume function for the business purposes and residential utilities (Polatoglu, 2013). These types of features would be highly lucrative to the Australian customers. Thus, it could be stated that the products of Tesla must have a huge market demand in Australian vehicle market industry. SWOT analysis: According to Dibb, et al. (2009), SWOT model helps to analyse the current standing of a business unit against the market competitor. This analysis helps the firm developing a basis for the marketing firm to target and attract potential customers towards the brand. Strength: Superior products and the attractive vehicle design are the core strength of Tesla motors The unique brand name attracts customers towards the brand. In the BEV market, the first mover advantage is strength of Tesla motors. The innovative sales and distribution network has been found better than the competitors The strong capital base and greater flexibility to access into the capital market is a major strength of Tesla. The Powertrain technology and the unique battery configuration is the major strength of the brand (Cooper et al. 2009). Weakness: The lack of economies of scale and relatively high cost structure vehicle The firm has limited brand recognition within the target mass The issues in the component supply against the increased demand will increase the manufacturing time, thereby affecting the sales volume of the firm. The limited number of car charging stations resists a large group of potential customers to buy products form Tesla. Opportunity: Greater advancements in the battery technology The support from the Australian government is increasing to support the BEV adoption The price increment of the gasoline and driving procedure is forcing the consumers to shift into the alternative car segment The firm operates in a niche market segment, where the competition is comparatively lesser than the normal car segments. Threat: The increased number of the Australian direct BEV competitor could be potential threat o Tesla. The substitute of the BEV also growing in a significant manner, which could be another threat of Tesla The entry mode of the large automobile firms in the BEV market is changing and increasing in a rapid pace. This could be another significant threat for the Tesla motors. Current competition: Tesla has its own network of market located in North America, Europe and Asia. Tesla Motors has two revenue sections those are automotive sales and development services. Tesla is concerned to provide services to the other automobile firms (Cadogan, 2009). The major competitors for Tesla include Federal Signal, industrial conglomerate; Ford Motor Company,General Motors, Honda Motor Company, Oshkosh, PACCAR Inc., Spartan Motors, Tata Motors, Toyota Motors and Wabco (www.teslamotors.com, 2016). Product and competitors' marketing promotional budget and sales analysis: The base price of the Teslas flagship vehicle is $109,000. The high performance BEV has a range of up to 250 miles. The major difference is the speed which makes the products of Tesla more different in this competitive market place (Mangram, 2012). Roadster is the modern with sporty appearance has designed to attract the customers. Tesla has announced medium-term plans to construct electric SUV crossover vehicles, electric fleet vans for municipal governments. According to the opinion of Schoenecker Cooper (2010), Tesla has the potential to continue the experience of the direct competition from the other BEV entrants, indirect competition with the existing firm and emerging connect with the hybrid vehicle manufacturers. Furthermore, the firm has the greatest competitive advantage with BEV substitutes including gasoline hybrid and gasoline powered vehicles. Moreover, Teslas competitive advantages include superior BEV technology, first mover market position, brand recognition, and uni que component product lines such as power trains, vehicle batteries, etc (www.teslamotors.com, 2016). However, the companys indirect competitors are the traditional luxury vehicles like BMW, Mercedes Benz, Jaguar, etc. The loyal customer base of Tesla would help to earn good competitive advantage in the Australian market for achieving a sustainable market position. Target market and positioning analysis: Target market: In the words of Dibb, et al. (2009), the target market analysis includes the identification of different potential customers and their prospects in the marketing cluster, based upon the homogeneity of the customer segment. Teslas target market is focused on different consumer segments, which is as follows: Luxury vehicle sedan market: This target market is relatively larger than the other competitors. Australians are shifting more towards purchasing luxury sedans from the Mercedes Benz, which is the fastest growing segment of the Australian sports vehicle market. Divakar et al. (2009) stated that Tesla has targeted a competitive consumer segment to improve the consumer adoption degree. Thus, the luxury vehicle segment could be a potential target market for Tesla. Mainstream vehicle consumer segment: This segment has been targeted for the mass production and greater market penetration in the Australian market. High end sports car market: This target mass is relatively higher in the Australian sports car market. Lane (2009) also stated that it has been targeted to introduce the brand name Tesla in the global business market. Brand positioning: Positioning is defined as a term which helps the marketers to identify the unique sales proposition (USP) of a brand (Busch et al. 2007). The brand positioning of Tesla, has focused on arranging its products in a distinctive manner to capture a transparent, unique and attractive brand positioning, which is relatively higher than its competitors. However, Mangram (2012) argued that positioning helps to address different customer identification issue, the fulfilment of the product needed by the customers, and process of manufacturing which best meets the demand of the consumers. Tesla has significantly highlighted on the high-tech sports cars features, attractiveness, reliability and the environmental ethics as well. These characteristic frames at right positioning within the Australian sports car market. The Australians are buying luxury cars in the record numbers till date, although the recent trade shows a slight decline in the profitability of the sports car segment. This is mainly due to the accident met by the sports car named as Statesman, Fairlane, and LTD. However, PolatoÄÅ ¸l (2013) also mentioned that Australians have shown transparent love of the luxury brands. More than 11 of 18 brands had investigated that the test drives are mainly occurring from the Australian marketers. Marketing promotion objective and strategies: Tesla motor being an electric vehicle manufacturer, addresses the marketing investigation from the different perspective of its own technology based approach for its marketing strategies. In this regards, Eckhardt and Shane (2010) stated that the marketing approach of Tesla motor has been found unique compared to the rival brands. The firm basically favours a mass marketing approach to experience a rapid future growth in the given industry. The promotional objectives and the strategies of the brand had been discussed below: The technical promotion According to Elrod et al. (2011), Tesla had enabled to attain the affiant recognition for its fie3st car availability. The management team of Tesla had been efficient in using electrical technology to manufacture a car that can lead to be reproduced with the combustion of the engine. The management of the specific brand had managed to establish its personal brand that gain incredible equity. The similar personality had used the branding effort as an impactful marketing force for the Tesla Motors. The entire electrical car brand is irreplaceably tied up with the personal branding option of the management. The car products are as fast as Porche and coverts the equivalent miles (100) per gallon. The marketing team had promoted the exclusive features of the cars, like its unique and limited moving parts. Schoenecker Cooper (2010) stated that the individuality of the brand had been its exclusive branding actions and the brand persona of the management influence Tesla to emerge equally. Constructive branding aspects The management of the brand is of the opinion that it is quite relatively easier to manufacture the lust-inducing of the $100,000 car that manufacturing the cheaper model. The brand had penetrated with $100K plus roadster, which had been built on a customized Lotus platform (Clarke, 2010). With the Model number of S, the enterprise had started with fabrication of $100K vehicles and simultaneously started working the similar approach to manufacture $60K entry-luxury models. The management of the brand had instructed its marketing unit to keep updating the corporate blogs (Cadogan, 2009). The customers and the professionals often visit the blogs and the interactions between the experts often help the brand with indifferent and efficient messages. The specific strategies facilitated Tesla to resolve the marketing challenges. Tesla had also initiated the policy of releasing its branding patents (Knox, 2007). This allows the other automotive industry to follow the similar model of product ion and the very mean time Tesla comes up with its updated innovation Turning the strength of the automotive industry into its weakness According to Darke et al. (2007), the luxury cars are being sold and justified on the basis of the quality of the internal engineers. The majority of the luxury automobile brands emphasises on the performance through engineering. The brand believes on the fact that the above approach facilitates the brands to attain the desirable sales figure. Teslas marketing actions focuses on performance through its technology while promoting the simplicity of its individual platform. The Teslas Model S pitch had managed to reframe the automotive industrys strength as its weakness (Davidsson Honig, 2009).It had been inferred that with the support of the highly-effective marketing lens, traditional gas cars remains dirty, untidy, complex, unreliable, and difficult to preserve the well furnished looks. In an audacious marketing progress, Teslas service centres are basically designed with the white shiny floors to reinforce on the fact those electric cars do not have oil and the additional dirty flu ids that make a leakage on the floor. Marthinsen (2011) inferred that Tesla has been a leader at driving the press coverage, awards and reviews for its cars. It is clear that the enterprise had worked hard to place the firm before the media and made sure the precise and accurate messages come through the similar channel. Media and budget allocation for 2016-2017: Tesla has recently reported a loss of $0.01 per share and acknowledged that the sales volume has minimised as per the expectation. The firm is presently trying to reduce the cost of the batteries installed in the cars. It has been expected that this process could enhance the profit margin of the firm (www.teslamotors.com, 2016). The company has a vision to increase its overall revenue by US$1 billion after penetrating in the Australian market. Furthermore that brand has make an effective media plan to push the sales of the firm. The brand wants to increase its advertising allotment by 5% more, so that more profit could possible to earn through the effective promotion campaign. Conclusion The current study emphasises on the marketing for managers. In the similar instance, the marketing consideration had been made with regards to Tesla. The brand had been highly effective in its marketing measures. 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