Elon Musk — Marketing Strategy For Tesla
Tesla is currently the most valuable automotive company in the world with a market cap of well over $200,000,000,000. The reason for their massive valuation is due to the projected future valuation of Tesla, which is based on the strength of Tesla products combined with the genius marketing moves of their CEO: Elon Musk. Indeed the strength of Tesla products is a genius marketing move of Elon since Tesla does not buy traditional advertising and pours the money they save into research and development.
These are some of the strategies used by Elon Musk to make Tesla Big:
- Leverage Twitter Marketing — On average Elon tweets 6 times per day and 110 times per month, and currently has 36.6 million followers. Tweeting is a communication and marketing strategy that has worked well for Elon and has helped other influential rise to power, most notably Donald Trump.
- Mention your competitors by Name — Brands may avoid mentioning other brands during presentations or talks because they do not want to step on any toes or want to avoid looking like a bad person by doing so. However, this is something Tesla have already done. Musk has openly bashed Ford on stage, as well, saying their Ford Tough slogan couldn’t be true and even saying that their cars’ doors were made out of tissue paper. And the audience loved it! Musk even showed footage of a Cyber truck pulling an F Ford-150 uphill once.
3. Try to turn bad publicity in a good one — Musk does a great job at avoiding disaster, thanks to his counter actions and his strategy to always put the consumer first. This was especially evident during the Roadster launch in 2017, which he launched to make up for the delay of Tesla Model 3 deliveries. To pacify the customers who were waiting for their Tesla Model 3, he gave them the option to drive a Roadster in exchange for having to wait another year for their Tesla Model 3. Of course, it is important to time these things perfectly, too, though.
4. Direct sale
One of the characteristics of Tesla’s business is that it does not sell its cars through intermediaries. Tesla wants to control the entire purchasing process so that the user experience is complete. Thus, you can have a greater margin of benefits at the same time that the customer can save by paying less than if he bought it through the current dealer. All cars are available on the Tesla website, and its marketing was conceived to be entirely online. Even so, they have opened many stores in the most important cities of USA, Europe and Asia where they can see and try Tesla models. With this they intend to offer the customer a convincing experience while getting sales and service benefits that traditional manufacturers do not have in the distribution model for franchises and official workshops. Customers deal directly with Tesla staff and not with franchisees. According to George Blankenship, sales director of Tesla Motors: “We do not want to sell a car to people, we want people to buy us a car because they want to, it’s different, I think that anyone who comes to a Tesla store today will want to buy us a car in the next 10 years. , not the next 3 days, but the next 10 years.”
5. Podcast Marketing — Musk has done a lot of podcast marketing since last year. He has been to various podcasts like Joe Rogan, Lex Fridman etc.
6. Referral Programs — Tesla previously offered its customers a rich and dynamic referral program. At one point buyers who referred new customers could receive free Tesla products or services. At various stages, the program allowed buyers to earn Tesla charging credits or even a free car. However, as of September 2021, the referral program for vehicles has been discontinued. This may just be because they no longer need it, but Musk reportedly said that the cost of the program is a factor. Referral or affiliate programs can be effective ways to increase brand awareness and get more customers in the door, but they can also be expensive. Business leaders can create successful referral programs by ensuring that any commissions they plan to pay are built into their monthly recurring revenue from the beginning.
7. Building QSR’s — Musk has planned to build a chain of QSR’s near the charging stations of Tesla where he will be selling burgers and other fast food items now. He has done this because after 1–2 years a lot of people were giving the cars back or selling it because charging of cars took at least 30 minutes so he decided to open Quick Service Restaurants from where he can generate wealth and is doesn’t lose his customers.
Tesla has been creative with the activation of the brand through experiences. They have got consumers talking about the brand, but without paying a dime in advertising. Like Apple, Tesla controls the technological content and brand positioning. The attractive design is, the technological content also (autonomy, super loaders, punctual updates, Autopilot). Tesla is a luxury object that both geeks and sheikhs like as those who only want a Tesla because celebrities have one.
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