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.