Why you don't have to spend big on marketing: a case story

This case study will look at Tesla and its marketing methods,

Founded in 2003, Tesla produced electric cars and energy for consumer use. It found fame when entreprenuer and business magnate, Elon Musk joined the company. Since then, it has grown international fame, mostly down to ideas and creations of Elon Musk but also the environmental output the card create. The world is waking up to the notion of global warming and the massive impact car emissions have.

CYBERTRUCK:

The muchly anticipated announcement of Tesla's new vehicle. No one new what to expect and i thing it's safe to say that no one was expecting the outcome. Within the first day after launch, the internet went mad over the futuristic and dystopian design of the CYBERTRUCK and how they failed showing off the 'reinforced' windows, only to break both with a metal ball. However, when the dust settled, people saw the benefits of having a car like this; unique look, good emissions, talking point/public notoriarty and much more. Price is most likely considered one of the main factors for its popularity. Only starting from around £35,000 meant that it was an affordable car much to the dismay of economists who may suggest that considering all the factors, the car could be worth twice what Tesla are charging.

Sales comparisons:

Toyota, debatably one of the largest vehicle manufacturers in the world, sold around 200,000 of its most popular pick up trucks, the Toyota Tacoma in 2019 with a yearly spend of £1.3 billion in advertising in the US alone. Understandbly this figure doesnt consider just the Tacoma but lets say Toyota spent around £250 million advertising just this car. That comes out to £1250 per unit sold! Minus the manufactoring costs, minus the shipping costs, minus other factors, the return that Toyota get from selling the Tacoma becomes smaller and smaller.

Announced on the 27th by Elon Musk, he declared that 250,000 CYBERTRUCKS had been pre-ordered. The crazy thing about this number, is that Tesla spent £0 on advertising. A press conference was enough to convince 250,000 people to pre-order this vehicle. Tesla is a forward moving company that knows how to use the digital world without having to spend billions on trying to convince others to buy their products. They know that they are a highly regarding company who continue to create such inconic and innovative products, that people will not hesitate to engage.

Basically, if you want to be a successful company that doesn't spend lots on advertising, make Elon Musk CEO.