Pricing and Promotion Strategy for Tesla



As your future marketing agency, we have overlooked TESLA’s current situation and believe

that there are some ways that TESLA can improve their marketing mix. Listed below are some

criteria in which improvement can be made.

1. Social factors

Social changes are the most unpredictable, however, important external variables which may

significantly affect the effectiveness of our marketing strategies. Thus, it is extremely important

that marketing managers keep adjusting their marketing mix to best meet all these changes.

Compare to the traditional gasoline-powered cars, Tesla best meets the nature of the Canadian

society. As a large immigration country, Canada embraces multiculturalism and this welcoming

nature is especially picked up by large cities, such as Vancouver. 

Tesla Model 3, as the Tesla’s

first revolutionary consumer-friendly electrical car, is especially attractive to those young

Generation-Y- who are socially responsible environmentalists. Model 3’s mediocre selling price,

when comparing with those high-ended luxury cars, is more affordable and acceptable by the

middle-class resident in Vancouver considering their average income. Hence, with its overall

high quality, reliability and environmental friendly nature, this new Tesla Model 3 will become

the best option to those who are seeking the environmental friendly automobile in the market.

2. Demographic factors

1). Tesla is the biggest automaker, energy storage company in America. Canada as the

neighboring country of America, Canadian market should be one of the biggest market.

2). Canada is a highly-developed country, the gross domestic product (GDP) per capita is 21 th in

the world (International Monetary Fund, 2016) . As an electric luxury auto brand, Tesla is

effortlessly entering Canadian market.

3). Canada is the most educated country in the world. 51% of Canadian adults have

undergraduate college, university degree or higher degree (Organisation for Economic Co-

operation and Development, 2015) . Therefore, Canadians are easier to accept new energy


4). Approximately 60% Canadians speak English, and most of citizens know English (Statistics

Canada, 2011) .Thus, marketing costs are much lower than other countries which don’t speak


3. Economic factors

Comparing to the social values, Tesla, with all its unique characteristics, not only sells the

automobiles but also its newly innovated technologies too. This new Model 3 is fairly energy

efficient and the energy loss during the charging process has been minimized, thus, the average

energy cost is as low as $0.12 per kilometer. 

Theoretically, the best marketing is, the product

markets for itself. One of the examples is Tesla Motors allocates nearly zero dollars to its annual

advertisement budgets. Nowadays, as the competition is becoming more and more fierce in the

automobile industry worldwide, this phenomenal cost advantage enables Tesla to maintain the

low sales costs while delivering the same product values to its customers.

From the economic

point of view, this cost edge ought to be considered as part of Tesla’s core competencies.

On top of that, since Tesla is most likely to become the sole electrical automobile manufacturer

in Vancouver markets, 

thus, it may need to start building out the all necessary infrastructures,

such as the battery swap stations, the service networks etc., to better support its gigantic

Vancouver consumer markets. This specific demand itself may directly lead to the creation of

thousands of job opportunities which may further the City of Vancouver’s prosperity.

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