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Running Head: Marketing Plan Milestones 3

The Marketing Mix

The marketing mix refers to the elements that when put together by Tesla Incorporated can influence customers to buy its vehicles. This includes not only the newly entered Asian market but also globally. These elements and factors, therefore, need to be controlled for the best results. In most cases, the factors include a promotion, price, place, and product. They form what is called the four P's of the marketing mix (Thabit & Raewf, 2018). They will determine to a very great extent the profitability of Tesla company in its operations in the Asian market. That is why the company needs to control them in a way that contributes to the achievement of its objectives as earlier outlined. This paper discusses each of the four elements and how they contribute to the success of the company's project.

Product

This is the main element of the marketing mix. It refers to the service or good that the company is offering for sale in the market. Tesla Inc deals in the manufacture of electric vehicles, solar panels, and roofs. The main product of focus, in this case, will be the electric vehicles. It currently has four models of electric vehicles. These are models 3, S, Y, and X. Model 3 has constituted the most deliveries in the recent past. To attain the objectives of increasing the company's sales by 200% and increasing the trial rate in the new market by 40%, there will be a need for the company to ensure that its vehicles of great quality and good performance. It is almost certain that its vehicles are of good quality especially because of its innovative culture. This is, therefore, an added advantage as the company aims at reaching the objectives. It should, therefore, maintain its innovation and this will enhance the rate of adoption in the new Asian market (Kucuk, 2017).

Promotion

This element of the mix entails making the public aware of the company's products to influence them to purchase them. As earlier stated, Tesla Inc uses social media to promote its products. It does not invest in intensive advertising and promotion. This is because the company has invested in strong brand equity. This contributes greatly to its marketing strategy. This could, however, be a point of weakness for the company. This is because other firms in the industry are promoting their products aggressively. The increased level of competition might hinder it from attaining its expected trial rate and projected sales target despite its high level of innovation. It is therefore crucial that the company employs more aggressive ways of promoting its products in addition to social media marketing and strong brand equity. It can consider options such as advertising and direct marketing (Subramanian, 2017).

Distribution

It is through the distribution of products that they reach the buyer or customer. It, therefore, helps attain the third P of the mix which is place. Companies achieve this by choosing strategic points of sale. This makes it convenient for customers to purchase their products. Tesla Inc uses E-Commerce which enables its customers to place orders online. This helps reduce the selling costs involved. It also has seventeen stores worldwide that it uses as showrooms and platforms for contact with potential clients. The company, therefore, sells its vehicles directly to its customers without involving agents or middlemen. Its strategy of distribution may be a little limiting. To achieve a 40% trial rate in the new Asian market, it is crucial to employ more aggressive approaches. These include increasing its points of sale and contact with potential customers to more locations worldwide. It should also consider options such as the use of middlemen and more sales agents to widen its reach and to increase the awareness of its products faster. Distribution is also likely to be easier since production and distribution are being done on the same continent (Pradhan & Kundu, 2016).

Pricing

This element indicates the value attached to a certain product. The price attached to a product is determined by factors such as the capability of the customers to pay and the costs of production. As earlier stated, the products of the Tesla company are in most cases more expensive compared to those of its competitors. This could be due to the innovative practices of the company. As a result, it is unable to attract more customers and grow its market share. Following the establishment of a mega factory by the company in China, the company will be able to carry out mass production. This way it will take advantage of the economies of scale to reduce the cost of manufacture per vehicle. The company can, therefore, adjust and lower the prices of its vehicles to enhance the trial rate and also increase its sales (Lin, 2019).

References

Thabit, T., & Raewf, M. (2018). The evaluation of marketing mix elements: A case study. International Journal of Social Sciences & Educational Studies, 4(4).

Kucuk, S. U. (2017). Marketing and Marketing Mix. In Visualizing Marketing (pp. 3-7). Palgrave Macmillan, Cham.

Subramanian, K. R. (2017). Marketing and Promotion of a Single Product in Different Regions. International Journal of Engineering and Management Research (IJEMR), 7(4), 183-190.

Pradhan, D., & Kundu, N. (2016). Distribution Strategy of a Global Firm in an Emerging Market: The Case of 3M India. Asian Case Research Journal, 20(01), 219-251.

Lin, Y. (2019). Essays on pricing strategy and market effects of new product introduction (Doctoral dissertation).