• Internal Code :
  • Subject Code : MKTG7891C
  • University : RMIT University
  • Subject Name : Consumer Behaviour

PART - A: Marketing Strategies Analysis of Tesla

Question- Answers

1) Telsa’s marketing strategy was based on the Maslow hierarchy of need theory. The objective of this theory was to meet the needs of the people. Tesla’s EV initially failed to capture the market as it was considered as a noneco-friendly vehicle but Tesla proved it wrong. Telsa’s biggest challenge was to create a supercharger that helps to cover more than 250 miles with its electric vehicle (Fisher and McCabe 2019). The company did it by choosing some strategic places for charging up the vehicle. Tesla’s differentiated strategy in selling cars helped in gaining potential customers. Tesla always used a different metric from the other automobile industries.

2) Yes, a consumer gets attracted to a vehicle only when he or she finds it better than the other. Moreover, it was seen through analysis that people were not purchasing an electric vehicle because it was not able to deliver good mileage for the long run. Maslow’s hierarchy helped Tesla to understand the need of the customers. Tesla’s ask its carmakers to tick on some essential criteria’s of developing a carthat is stopping at safety, belonging and self-esteem(Porteous et al. 2018). These things influence the customers to purchase a car which is launched in the market after checking its complete potential. This strategy helps in influencing the decision-making process of the customers.

3) Tesla created focus groups to understand the different needs of its customers. Like to attract women's Tesla would market on the safety of the car and similarly, it will find the other essential needs of the focus group and appeal these focus group based on their needs. Moreover, Tesla's car has a low running cost which is another key influence which attracts the customers towards it. The company also pay attention to the cultural considerations of the people. It understands consumer behaviour and how celebrity endorsement influences the decisions making the process of them. The industry is a legend in making celebrity ads from Matthew McConaughey’sto Clint Eastwood’s. These celebrities do their work of attracting customers. The company has used many stars to promote their business in the world market. Some popular stars include Alyssa Milano, director Jon Favreau, and Teller. All these celebrities have fragmented the social media network of the company by their social media followers. Tesla is improving its technology for its digital customers(Sharma 2016).

These customers will give the order of the car online without having to visit a dealer. It offers a driving test to its customers so that they can have complete satisfaction before purchasing the car. Tesla targets those people who want to balance their luxury goods with social responsibility. These are middle-aged affluent customers, they are the only one who gets influenced by the marketing strategies of the company and purchases an electric car for themselves. Tesla as achieved zero-emission and environment-friendly tag. Thus, it aims to innovate a technology-driven car which does not emit harmful gases in the environment. The company is psychologically targeting customers by making them purchase their electric vehicle.

4) From September 2014 to June 2015 the company has witnessed a growth of 33.74 per cent in research and development which indicates that the company is very serious about its expansion policies and it's trying to capture the Australian market(Aaij et al. 2016). The company is also putting some amount of money in the innovation and development projects of Tesla that is in bringing out better electric vehicle based on the needs of the consumer. There is a decline of 247 per cent growth in net income of the company. The loss incurred to the company is high and to turn its profit the organization would require better policies to appeal to the customers in Australia and the US(Aaij et al. 2016). The focus appeal needs to be changed and must be in favour of the business.

5) a) According to the analysis of Australian consumer law the company, tesla is meeting all the legal and ethical obligations for marketing and advertising about the company in Australia. Tesla does not false claim about its product, it does not mislead its consumers, it does not ask the consumers to agree on unsolicited agreements and it does not ask consumers to be a part of unfair contract terms. This proves the company follows all the Australian consumer laws(Thomas and Maine 2019). If Tesla wants to expand its business in Australia, then the company will not be able to compare the products with the others under the two price comparison advertisement. The company will have to accept the product back and refund the money of the consumer in case if he changes his mind.

b) If you are doing business in Australia it would be your responsibility to maintain work health and safety according to the WHS act and regulation. Currently, the WHS act states the companies to help the business that is affected by a coronavirus in Australia. It even has the following trade laws which state that all the goods will pass through Australian custom goods for security reasons. The company has to follow the Trade practice act which states that the company will do fair trading as well as provide protection for the consumers.

6) Tesla needs to understand that there is a wide range of cultural preferences among the people and it is hard to comprehend the attitudes of the consumer It is one of the main barriers to consumer widespread and consumer adoption. It adopted a global standardized approach in the international market. The company currently is facing the challenge of cost reduction.It witnessed that people were not ready to adopt the new car as they doubt the disruptive technology through which it was developed. No doubt, some people have a positive attitude towards the electric car and are ready to use on the roads. The people who have individual concerns for the environment are ready to use Tesla’s electric car in the market(Thomas and Maine 2019). Until and unless it will not be able to reduce the high prices of the car by cutting its manufacturing cost, the company will not be able to attract potential customers towards it. The organization needs to appeal to the customers in the international market which is full of competitors. Tesla to attract people is using celebrity endorsement technique which is proved to be a fruitful strategy for the company. Its strategy of creating a focus group is all appreciated by the people of the world. The company is targeting females as they constitute 48% of the purchase and their preferences for selection of car is different from the others.

7) Here are some external sources which will help in formulating marketing strategies for the international market in Australia.

  1. Census data

  2. Car industry report

  3. Business statistics

  4. Social media analytics

The company can also retrieve information from some authentic websites about the competitors of Tesla in the Australian market like Forbes magazine, Internal sources which will help Tesla to analyze the Australian market includes company reports, case studies, company’s websites and so on.

Tesla needs to gather maximum information that it can get through external and internal resources as it would help them in making strategies before entering the Australian market.

8) In this report SWOT analysis, marketing mix, 4M’s of marketing and competitor analysis has been carried out. They all have their importance like SWOT analysis helps in identifying, strength, weakness, opportunities and threats of the company while the marketing mix helps in understanding and meeting the needs and desires of the customer. It is important for maintaining a balance between the organization and the market(Chen and Perez 2018). On the other hand, 4M's of marketing helps in creating strategic marketing for the products of the company. Besides, competitor analysis helps to maintain a competitive advantage in the market. These strategies help to boost the revenue of the company.


Aaij, R., Amato, S., Anderlini, L., Benson, S., Cattaneo, M., Clemencic, M., Couturier, B., Frank, M., Gligorov, V.V., Head, T. and Jones, C., 2016. Tesla: an application for real-time data analysis in High Energy Physics. Computer Physics Communications, 208, pp.35-42.

Chen, Y. and Perez, Y., 2018. Business model design: lessons learned from Tesla Motors. In Towards a Sustainable Economy (pp. 53-69). Springer, Cham.

Fisher, M. and McCabe, M.B., 2019. Tesla: Accelerating to Market. Journal of Strategic Management Education, 15.

Porteous, C., Godfrey, B. and Finkel, A., 2018. Taking change: The energy storage opportunity for Australia. Office of the Chief Scientist, Occasional paper, pp.1-6.

Sharma, S., 2016. The Tesla Phenomena A Business Strategy Report.

Thomas, V.J. and Maine, E., 2019. Market entry strategies for electric vehicle start-ups in the automotive industry–Lessons from Tesla Motors. Journal of Cleaner Production, 235, pp.653-663.

Remember, at the center of any academic work, lies clarity and evidence. Should you need further assistance, do look up to our Consumer Behaviour Assignment Help

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