Başak Özkan
May 31, 2021
Almost everyone who owns a Tesla will have a reason for buying that goes beyond just driving. For a company that spends zero dollars on advertising, it's amazing to see how much attention Tesla is getting for their vehicles.
Almost everyone who owns a Tesla will have a reason for buying that goes beyond just driving. For a company that spends zero dollars on advertising, it's amazing to see how much attention Tesla is getting for their vehicles.
Why has Tesla become so popular and valuable over the past year? In this blog, we'll look at the branding and marketing tactics they use to stand out from the competition.
After launching Elon Musk's third company in 2002, the world watched closely as he co-founded his fourth company to launch a new brand of electric cars.
In June 2012, the company released the Tesla Model S, a vehicle focused on the luxury brand segment. Then, by 2015, they had sold over 100,000 Model S cars. In 2015, the Model X. Production of the Tesla 3 began in mid-2017, and more than 300,000 units had been sold by the end of 2019. The Tesla 3 is aimed at the mass market and is labeled as a family car. The launch of this new model is perfectly in line with Elon Musk's vision and business model to build more affordable cars over the years.
Despite Tesla's success, the company's entire history has not gone smoothly. Over the years in the current media climate, Tesla has received criticism for not being able to keep its promises. Nevertheless, they have shown that it is possible to keep growing despite these challenges.
In 2006, Elon Musk shared his'Secret Tesla Motors Master Plan (just between you and me)” on the Tesla website. This was two years before the car went into production.
Elon Musk said, “the overarching purpose of Tesla Motors (and the reason I am funding the company) is to help expedite the move from a mine-and-burn hydrocarbon economy towards a solar electric economy, which I believe to be the primary, but not exclusive, sustainable solution.”
This is a very unique vision. Unlike most car companies that were in business then (and now), Tesla wasn't just about producing cars that were incrementally better than the year before. In 2016, Elon updated the vision with 'Master Plan Part Deux'.
The benefit of sharing this vision with the world is that the brand has been given a mission and personality. As a result, the general public felt personally involved in Tesla's journey. It also made people want to own the products Elon Musk was talking about.
However, this inspiring start was not without setbacks. Over the years, the company has faced many concerns. Concerns such as finances, building cars to scale, delivery delays and Elon Musk's comments.
One tactic that Tesla and Elon Musk often use is to acknowledge and address the issues directly via social media.
Musk is known for responding to tweets from both reviewers and Tesla owners with suggestions for improvement. This shows that the company is listening and humble enough to take feedback. It increases consumer loyalty and strengthens trust in the organization. It also adds a bit of fun for Tesla owners who have a direct line to the company's CEO with whom to share ideas.
Buying a new car is just the beginning of a relationship with a new customer. Very often, a new customer will be encouraged to go to a dealer for repairs as part of the purchase. This is a great marketing strategy because it also increases revenue for traditional car manufacturers.
As an electric car manufacturer, Tesla doubled its service offerings. Due to the innovative nature of each Tesla vehicle, Tesla owners would be required to have their car serviced by Tesla Motor themselves.
To eliminate the inconvenience of having to visit and wait at a dealer for repairs, the company developed the Tesla Rangers. This is a mobile service team that visits the Tesla owner's home. This approach is also an asset to the company's marketing. Other vehicle owners see that the Tesla vehicle is easily cared for. This not only increases brand loyalty, but also attracts the attention of potential customers.
Another smart part of Tesla's marketing strategy is setting up their own Tesla charging stations, known as Superchargers. With a futuristic look and no staff, the Supercharger stations offer a futuristic piece of real-world advertising.
Tesla's marketing strategy is the opposite of other traditional car manufacturers. Tesla doesn't spend money on paid ads. This is incredible considering the $11 billion dollars that other car companies spend collectively on marketing each year. This may seem like a counterproductive marketing strategy, but it hasn't affected Tesla's brand awareness at all.
Tesla also does not do social media marketing, except for Elon Musk's occasional promotional Tweet. In March 2019, Tesla famously closed their Facebook page.
Another major difference between Tesla and all other car brands is how they sell their vehicles. Tesla does not offer cars for sale through dealers. Instead, they place showrooms in malls. The innovation of each car is on full display in the showrooms.
This is common sense marketing: go where your customers already are. As people walk around buying other items in malls, they notice the store and are slowly starting to get more exposure to the brand. Every company can do this by finding ways to go where their customers come together. By being directly in their field of vision, customers are more likely to want to know what is being offered.
The Tesla brand is indelibly linked to Tesla CEO Elon Musk. The iconic personality is a huge asset to the company. The CEO's public image has a major impact on the company's success.
One way Elon brings brand personality to Tesla is through the humor they inject into their marketing.
When the company announced that they would release all patents to the public to promote electric vehicle development, it wasn't a cramped business announcement. Instead, the headline included a parody of an internet memo titled “”All Our Patents Are Belong To You.
This combination of humor and marketing is an excellent way to build trust with your customers. It shows that you are human and want to enjoy the time you spend working to help them.
Of course, there are limits to how free you can be with your online social media posts. Elon Musk has received criticism and even had to pay hefty fines from $40 million pay for sharing information that was not approved by the board. It's wise to balance your brand's frivolity and personality with the core values that your company strives for.
At the heart of the Tesla brand is innovation. They are advancing the possibility of what an electric car and transport will look like in the future. Their goal to make the world run with renewable energy has completely changed the car industry. This is both inspiring and engaging for the audience.
As the company's target market evolves from luxury vehicles to affordable electric cars and trucks, their brand recognition has only increased.
Telsa owners are unique and among the most loyal on the market. They eagerly place orders two years in advance and are a walking advertisement for the innovation that the company provides.
These Tesla marketing lessons can be incorporated into any company that wants to make a positive impact on the world. All it takes is openness, consistency and courage to move forward.
