Tesla's Marketing Strategy on Social - The "Apple" Approach This isn't an approach that necessarily works for everyone, but when you've built a hype machine as Tesla has done, the rules of social media start to change. Many customers who tweeted at the company received personal responses from Elon Musk who gave honest updates on the situation. Because get this: All these things add up to build a sense of exclusivity that makes you want one even more. In other words, nearly everyone hates ads. Teslaâs marketing strategy, then, goes against the trend of developing TV advertisements and pushing its products onto consumers. Let’s join forces to drive awe-inspiring results. It could work wonders for your branding and you won’t be spending a dime on ads. But not Elon Musk. Automotive marketing teams have long understood this bond between people and their cars, and are quick to take advantage of it. In this business analysis case, Teslaâs products are within the automotive, energy storage, and energy generation markets. Finally, for holistic branding, do more than just direct selling of your products or services by maybe supporting a cause or doing something for the greater good of the people. Do you prefer a supercharger or a turbocharger? As a consequence, there are no tedious salesmen. Now, to dive deeper into these points, here are fifteen lessons we can learn from the apparent marketing strategy of Tesla: One of the biggest drivers of Tesla’s success is its focus on providing the best possible customer experience. Interested in discussing marketing campaign for your website? Are you doing anything interesting or helping the world? It proves that instead of worrying about your competitors’ success, your focus should be to become the best at what you do while realizing your company’s mission – which, usually, is meant for the greater good of your target audience. He takes care of all the clients from closing to delivery. Tesla recognizes this fact very well. Now, vision statements don’t get much stronger than that of Tesla: “To create the most compelling car company of the 21st century by driving the world’s transition to electric vehicles.”, And Tesla’s mission is to “accelerate the world’s transition to sustainable energy.”. You order and configure your car online, without even seeing the actual car. Yet, Tesla name recognition is very high. So, how does Tesla do its marketing on a limited budget? Essentially, Tesla shapes its brand with innovation and simplistic minimalism – it sets itself apart by doing things differently without compromising on quality. They appear to be nonchalant and fun-loving while also being one of the most ambitious brands on the planet. In 2006, Elon Musk shared his â Secret Tesla Motors Master Plan (just between you and me)â on the Tesla website. Also, don’t be afraid of your competitors’ success but instead, focus on becoming the best in your industry while achieving your company’s long-term objectives and vision. In fact, you might say that his social media influence has contributed to Tesla’s success more than any money they spent on marketing. What’s the lesson here? After thinking of other companies as a competition for about a decade, the company simply decided it was ‘’silly’’ to think like that. Thus, it is a good idea to let the marketing team dedicate a part of their strategy and efforts to work on improving the leadership’s social media presence and authority. Also, responding to comments and complaints in a timely manner on social media is crucial to building a loyal fan base. Customers can easily appreciate that Tesla Motors exists to do more than just sell cars. Word of mouth and the free media coverage is enough to fuel demand for the brand. Surveying more than 330 workers on-site has enabled them to get a clear forecast of how can marketing concept will evolve in the coming years. So, transparency should be integral to your digital strategy. Your focus should be on providing amazing customer experience and creating the best possible products in your niche which, with the help of content marketing, sell themselves. The main role of a Tesla retail store is provide information about its vehicles. And that’s understandable – they have to be super careful about what they’re posting as they represent the company, so to speak. While Tesla can be seen as an inspiration to the industry, it also serves as an example of what happens â¦ Twitter thought I got hacked & locked my account haha. Not only does it serve to guide the company in a forward direction during times of turmoil, but if used strategically, it can greatly help with marketing efforts. Of course, your company’s CEO won’t be nearly as popular as Musk, but their personal brand can contribute substantially to the company’s growth, probably more so than a paid advert. Consistent messaging from every department and employee helps customers stay confident in the company and have a smoother buying experience. Tesla, on the other hand, is totally different. From the very outset of your buyer’s journey, you’ll realize Tesla is different. He speaks what’s on his mind, unlike other CEOs who use social media just to share rather uninteresting corporate updates and latest product information. © 2018-2020 Growfusely. Would this help the firms to improve its performance? Tesla bought its first factory from General Motors in 2010 and quickly transformed the facility into one of the worldâs most advanced automotive plants. So, how does Tesla do its marketing on a limited budget? Tesla indicated that it would cut about 9% of its global workforce, as Tesla is looking to eke out its first profit. In fact, over 70% of all Tesla sales are made online, away from stores. With over 34 million followers and 11,000 tweets, calling him a mere “influencer” would be an understatement. While nobody outside Tesla has concrete answers for these questions, thereâs certainly a lot we can learn from the way Tesla has stood itself apart as a car brand. Also, honest tweets from your company’s CEO likely hold far greater value than 30-second paid ads on YouTube, which brings us to the next point…. With over 29 million followers and 9,000 tweets, calling him a mere “influencer” would be an understatement. On an ending note – no, Tesla doesn’t have $0 as its marketing budget. Tesla has 17 stores worldwide (ACWI) to sell its cars. And Tesla, with Musk as its CEO, does a great job at it. At the same time, they have the most talented engineers building vehicles that help tackle the fossil fuel crisis. It can improve retailing strategy by collaborating with service providers like mechanics, part suppliers and sales teams across the countries. It also arranges different contests to motivate the customers for sharing their videos. All rights reserved. It makes you feel special to own a Tesla – a feeling you can’t put a price on. The tweet below from Elon conveys this point perfectly. Most CEOs are rather reluctant when it comes to going all out on social media. Any company or brand needs to have a solid vision statement. Established players like Ford, BMW, Volkswagen, Honda, Toyota, and what have you, are being challenged by electric and autonomous vehicles from novel brands like Tesla and Waymo (originally Google’s self-driving car project). The lesson here is that companies that consider post-purchase customer needs are the ones that win big in the long run. Rather than being pushed into a sale, they are given information to make their own decisions, which leads us to the next point…. This hasn’t been a strong point of Tesla as some of the major complaints of new car owners come from Tesla’s distribution strategy and delivery process. Long story short, customers are more inclined to bear with delays and issues if they understand what’s really happening behind the scenes. So if there is an automaker that can sell its cars using an online-only model, Tesla would seem to be it. The solution is to wean Tesla off of its near-term dependence on the capital markets by turning at least modestly profitable, which Goldman Sachs projects will â¦ And yet it seems like a necessity for companies to promote their products. In this way it can make sure whenever the products are damaged the customer has to face no trouble getting it repaired. On an ending note â no, Tesla doesnât have $0 as its marketing budget. As such, driving a Tesla is much more sustainable in Iceland than in India. If you haven’t already, consider creating an exciting referral program for your company that motivates your customers to spread the word amongst their friends and family. It encourages others, namely customers, to do the selling for them. You must make sure this is not the case with your company. Tweeting about new business ideas on the drive home, complaining about Twitter locking his account, live broadcasting rocket launches – there’s no holding him back. While nobody outside Tesla has concrete answers for these questions, there’s certainly a lot we can learn from the way Tesla has stood itself apart as a car brand. Whether you’re scrolling through social media or cruising along the highway, ads are a nuisance you can’t escape. So, if you wish to play your part in helping the environment and accelerate the world’s transition to sustainable energy, but can’t afford one right now, or aren’t sure about the commitment to an electric vehicle, you can “subscribe” to an electric vehicle from startups like Steer. They likely invest significant money in their marketing strategy. 3) They can go the traditional way of tie up with intermediaries and dealers. Teslaâs marketing strategy is as disruptive as its business model. People trust recommendations from friends and family more than they could ever trust ads of a brand promoting itself. What’s more, Tesla’s advertising budget is zero. Simply put, all these things generate positive brand awareness which ultimately translates into more sales in the long run. So, the internet provides potential customers with their first impressions of the brand. Many customers reported receiving conflicting information from different Tesla employees. For example, the company can expand in the global automobile market to support further business growth. Also, prices are not negotiated and the purchaser Tesla can be done within five minutes or less on its website. By the way, there’s a subscription model for practically everything nowadays – including electric vehicles. But today, the industry is undergoing a major reform. What’s the lesson here? For instance, Tesla built a massive network of supercharging stations across the United States and Europe to make it convenient for customers to charge their cars on the move. But that’s not the case with Tesla. Of course, most companies can’t match this level of ambition in their mission and vision statements – but you sure can emulate the strategy of using your statement to build a brand with a faithful following. They can tie up with government and start charging stations in bulk which will make their presence everywhere. And this is appreciated by the customers – 73% of customers say valuing their time is the most important thing companies can do to provide great service. Ordinarily, when you go to a car dealership, you have to deal with a sleazy salesman trying to earn as much commission as possible from your purchase. Put a face to the name. This is how you’ll rally a faithful fan following, and in turn, a loyal customer base. The company uses product development to fulfill corporate objectives in this 4P variable. The “$0 marketing budget” story is great marketing itself. If you take a good […], When you think of content marketing, Quora is probably not the first thing that comes to mind. Sometimes, standing out from your competition doesn’t have to just be about your business offerings, but your involvement in other important things in the world. 3. But Tesla spends $0 on ads. No bargaining, the price listed is the final price. Tesla and Elon share just about everything with their followers – mostly via Twitter or the company’s blog. Of course, your everyday company can’t match that level of ambition in its statement – but it can emulate the strategy of leveraging a vision statement to form a staunch following. Download our Tesla SOV brand report now! In fact, in less than two decades, it has become the most valuable car company in the United States and one of the most sought-after car brands with an astounding fan base. Thus, it is a good idea to let the marketing team dedicate a part of their strategy and efforts to work on improving the leadershipâs social media presence and authority. All information is conveniently made available on their website, you order and configure your car online, and schedule the pickup. As such, any company or brand must have a strong vision statement. The customers can easily contribute to the company's strategy because they don't have to â¦ For example, many customers who pre-ordered the Tesla Model 3 were discouraged to have their delivery dates delayed due to manufacturing problems. One wrong post can hurt the brand’s reputation, or even result in lawsuits. Customer experience doesn’t end once the purchase is complete. Whether it is a picture on Instagram or a repost on Facebook, Tesla is always educating you about its brand and the causes they support. Ultimately, people would appreciate that fact and prefer your brand over competitors. I think the OP fails to appreciate the elegance of Teslaâs current marketing strategy. The price listed is the final price. Apart from people in the marketing and advertising industry, there may only be a handful of people on the planet who actually enjoy ads. Are you a Ferrari or a Lamborghini person? Marketing Strategy We will increase the market share of Tesla Motors in the Electronic Vehicle / Hybrid market by 5% over the next 5 years by introducing a lower priced EV, the Tesla Gen3. They likely invest significant money in their marketing strategy. Here are four marketing lessons that can help any business wanting some of Teslaâs magic to work for them. Provide first-class customer service after the sale is complete, be transparent about your problems, and be bold enough to create some controversial content. This enables the company to improve its carsâ software functionality every few weeks. He doesn’t deter from speaking what’s on his mind, unlike other CEOs who use social media just to share boring corporate updates and latest product information. Marketing of Tesla communicating the benefits have to be strong. He smokes marijuana with Joe Rogan, sells flamethrowers for fun, and sends a Tesla into space – pretty controversial stuff that completely captures and keeps your attention for when there’s a product launch. With the internet becoming increasingly accessible in recent years, enter digital marketing — […], This is a guest post by AdNabu. The company controls everything (from the initial test drive to follow-up maintenance) about the journey and isn’t pushy with its sales, which makes for an outstanding car buying experience. He’s open and straightforward (about failures too) and engages with his following almost daily. Usually, CEOs are somewhat hesitant when it comes to going all out on social media. Nope. It needs to increase market share in states that have banned its stores. That is, word of mouth is one of the most effective forms of marketing and Tesla knows this well. Tesla has come so far in such a short while, but thatâs no guarantee it will be around forever. If your company has a clear vision that resonates with the target audience, every marketing material should incorporate that message – in a thoughtful and methodical fashion. Thus, it is a good idea to let the marketing team dedicate a part of their social media marketing strategy to work on improving the company leadership’s social media presence and authority. You’ll likely have to wait for a few weeks before you get your hands on your Tesla. And, of course, also on building exciting products that you can’t help but crave. Teslaâs latest updates show that it is improving its efficiency by 3% a year, which is increasing its already impressive lead over the rest of the automotive industry. Facilitate word of mouth marketing by creating compelling referral programs. Tesla suffered delays in the Model 3 production ramp, which also impacted its suppliers, but it now has achieved the long targeted 5,000 units per week production rate. Customers regularly engage with your product after the purchase, which affects their outlook of the company and its service. So while competitors shell out hundreds of thousands of dollars for a 30-second commercial to play during a sports event, Tesla sits back and lets their fans (many of whom are extremely influential) make (and promote) these videos for them. Its products are great in terms of technology, design and functionality. Rather than wasting time with unnecessary sales pitches, Tesla empowers customers to make their own decisions.