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Programme

BA (Hons) Events Management

Module Code and Module Title

BRA BIH2014 Consumer Behaviour and Experiential Marketing

Assessment Type

Individual Report

Report Title

XXXXXXXXXXX

Student Name and Student ID

XXXXXXXXXXXX

Word Count

XXXXXXXXXXXX

Submission Date

XXXXXXXXXXXX
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Table of Content

1. Introduction......................................................................................................................3

2. Analysis of Target Market...............................................................................................4

2.1 Characteristics (Demographic/Psychographic/Geographic) ……….……….…….5

2.2 Consumer decision making patterns…... ……,,,…….......…………….…………5

2.3 Macro influences (External influences) ……………......………….……………. 6

3. Marking Plan....................................................................................................................7

3.1 Marketing Mix with Experiential Elements………………….………….......…….7

3.2 Evaluation with KPIs (Justify how the experiential elements can contribute to the

effectiveness of the marketing plan)….…..............................………………………9

3.3 Social Media Strategy………………………………………………...................

………….……….9

3.4 Sample Social Media Content……..……………..............………………….....10

4. Conclusion.....................................................................................................................11

5. References.....................................................................................................................12

6. Appendices……………………………………………………..................................……13
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1. Introduction

As one of the most innovative pioneers in the field of electric vehicles and renewable

energy sources, Tesla stands out as a major player in the car manufacturing industry. While

emphasizing sustainable technology, Tesla not only reconfigured more traditional automotive

markets but also created a luxurious brand that is rapidly associated with innovation, style,

and environmental sustainability (Mangram, 2012, p. 110). As the company plans for future

growth, there is still great importance in the development of its marketing approach, including

the use of experiential marketing. According to Schmitt (1999, p. 56), experiential marketing

means focusing on efficacy and establishing consumption experiences that make customers

engage with the Brand on an emotional level. Tesla needs to find ways of developing its

brand loyalty to ensure it addresses the growing competitive forces that will eventually

influence consumers" decision-making.

Introducing an experiential element as a concept means that normal commercial

interaction between a brand and consumer is taken up a notch and made into an engaging

experience. For Tesla, this approach can go a step further to encompass the live ads, the test

drive sessions, and realized events where customers are invited to engage with the Brand in a

live manner, and not just associatively, though highly impactful appeals (Pine & Gilmore,

1999, p. 14). As the market is changing, though, Tesla has to adjust its marketing approaches,

and therefore, leveraging the context of experiential marketing can be critical for this process

(Grewal et al., 2017, p. 19).

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2. Analysis of Target Market

2.1 Characteristics (Demographic/Psychographic/Geographic)

The company's target market is made of consumers who are eager to protect the

environment, those who have an interest in new technologies, and rich people who are ready

to pay for quality and unique products. These segments span multiple demographics, but

several key characteristics stand out:

Demographic: It is imperative to note that Tesla's main target market is people within the age

bracket of 25-54 years, who are more likely to have a disposable income. Most of them

belong to the middle to upper-middle class with professional jobs or businesspersons

(Berman, 2021, p. 44). Most of them are educated, and many of them have university degrees

in engineering, business, or other related field. With regard to gender, Tesla has a fairly equal

gender distribution when it comes to customers; however, if we look at the early adopters,

male consumption patterns are slightly predominant (Berman, 2021, p. 46).

Psychographic: Tesla services consumers who are affordability-conscious, environmentally

friendly, innovative, and prominently interested in luxurious cars. They are a fairly tech-savvy

group and are overwhelmingly driven by the need to exhibit environmentally conscious

behavior. Tesla's focus on technology in cars, including online features like Autopilot, smart

and other features, and long battery range, is stimulating innovations that consumers within

the market are attracted to (Mangram, 2012, p. 113). Also, Tesla has a positive attitude from

its consumers that they are buying environment-friendly products with the added advantage of

high-performance luxury cars (Grewal et al., 2017, p. 21).

Geographic: Tesla operates primarily in urban and suburban centers with the company

focusing mainly on places that have emerged policies to support green energy. North America

and especially the state of California are relevant markets, while there are indications of
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increased interest in the Western European market and Asia and other markets (Berman,

2021, p. 45). Tesla's target market in these countries may be located primarily in the major

cities that are home to a higher number of professionals and tech-savvy, environmentally

friendly buyers (Lemon & Verhoef, 2016, p. 235).

2.2 Consumer Decision-Making Patterns

Different from most automobile consumers, Tesla consumers are relatively more

selective in their purchase decisions. Given the high price point and the relatively niche nature

of electric vehicles, the purchase decision is heavily influenced by both rational and emotional

factors:

Information Search: Customers typically start their journey by using electronic sources to

research Tesla cars and compare them with traditional cars or electric cars. Consequently, the

internet presence, and more so the customer reviews, are essential aspects of decision-making

(Hoch, 2020, p. 34). Word of mouth from other Tesla owners and Fame trips also represent a

significant influence (Grewal et al., 2017, p. 23).

Evaluation of Alternatives: Tesla has a large reference pool against which consumers compare

particular Tesla models to other electric vehicles (EVs) from substitute traditional auto-

makers like BMW, Audi, Ford and newcomers like Rivian (Tai, J. (2023.p.17). Tesla's strategic

advantages are range, charger points, the Tesla ecosystem, e.g., Superchargers, and the Tesla

application. Customers compare these features as well as the power and eco-friendliness of

electric driving, according to Mangram (2012), p. 115.

Purchase Decision: The final stage of choice is always based on emotional triggers as

consumers are making a ‘car’ decision but what they are actually buying is a statement of new

technology and sustainability. It must be noted that the direct sales system is more convenient

than the legacy one: there are no intermediaries between the buyer and the manufacturer, and
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the configurations are made using the Internet without the participation of middlemen, and

direct communication with the representatives of Tesla is possible (Berman, 2021, p. 48).

Post-Purchase Behavior: The Tesla experience is satisfactory after the purchase because of

the driving experience, features, and services offered by the company. It is necessary to have

positive word of mouth and relatively high customer loyalty to get more advocacy for the

Brand (Lemon & Verhoef, 2016, p. 237).

2.3 Macro Influences (External Influences)

Several macro influences affect consumer behavior in the automotive and technology

sectors, especially for Tesla:

Cultural Factors: Cultural factors in Tesla's favor revolve around sustainability and the

environment. The public is becoming more conscious of the impact that they cause on the

environment, hence using electric vehicles to navigate their way around. Tesla has managed

to associate with the environmental movement, and this explains the appeal that the company

has to people who are conscious of environmental conservation (Mangram, 2012, p. 112).

Social Factors: Tesla can be associated with status as it represents modern technology,

especially in big cities. Another factor that will be useful in forming the public perception is

social media and influencers. Tesla owners also spend most of their time on internet forums,

mostly posting good experiences with their cars, and would recommend them to other people

(Hoch, 2020, p. 33).

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Technological Factors: Tesla customers' purchasing behavior is majorly driven by battery

technology, self-driving capability, and smart car functionalities. Updates to cost-effective

technologies like Autopilot and the constant release of new battery technologies put Tesla

ahead of the competition in the automotive tech sector (Grewal et al., 2017, p. 19).

Economic Factors: The trend towards sustainability is supported by the rise in the economic

feasibility of electric vehicles. This situation means that subsidies for such vehicles, rebates,

and even tax credits make Tesla more accessible to the general public. Also, volatility in the

cost of fuel plus stringent environmental laws play their part in steering people away from

vehicles that use traditional combustion engines (Berman, 2021, p. 50).

3. Marketing Plan

3.1 Marketing Mix with Experiential Elements

Experiential marketing strategies included in Tesla's marketing mix can foster unique and

interactive experiences that directly influence customers' perception of the Brand.

Product: The Model S, the Model 3, the Model X, and the Model Y are at the heart of the

experiential marketing plan at Tesla. Taking consumers through an actual test drive or an

interactive demonstration inside Teslas showrooms will go a long way in giving the potential

consumers a real feel of the various innovations on the Teslas (Maoheng, W. (2018.p.5).

Furthermore, Tesla can arrange days of experience in chosen metropolitan areas for customers

who would be able to get acquainted with the vehicles and attend various events, for instance,

the excursions to Gigafactories or shows of the latest technology developed by Tesla (Lemon

& Verhoef, 2016, p. 241).

Price: Tesla cars are placed in the premium segment, hence attracting customers with

relatively high incomes. Through financing solutions and take-back programs, Tesla could

make their cars affordable and, at the same time, keep a luxury feel to them. Experiential

events relate well when communicating the generic benefits in terms of the traditional concept
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of value proposition, where there is a long-term value proposition associated with owning a

Tesla, including the amount one could save on fuel and the reduction of the carbon footprint

left to the environment (Pine & Gilmore, 1999, pp. 18–19).

Place: Tesla follows very distinct supply chain management strategies by not relying on any

middleman and ensuring customers access their range through online sales and servicing their

ph through worldwide service centers. Concerning sensory marketing, Tesla can activate

different pop-up experiences in strategic sites or events (for instance, technology or

environment-related fairs). Such experiences may include a virtual test drive of Tesla by

which customers could get to feel the actual driving experience of a Tesla vehicle but without

actually getting into a car (Schmitt, 1999, p. 60).

Promotion: Awareness can be raised from promotions such as live demonstrations and VIP

experiences for customers and influencer marketing. Other experiential campaigns that can be

used include those where consumers are encouraged to share their experiences with Tesla on

social media (Chen, Y., & Perez, Y. 2018.p.15). For example, 'Tesla Road Trips' could mean a test

drive across the country in Tesla-produced cars to test the car's stamina in real-life conditions.
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Such experiences could be conducted 'live' and then likely broadcast and posted on the social

site to generate appeal and distinctiveness (Pine & Gilmore, 1999, p.22).

3.2 Evaluation with KPIs

The success of Tesla’s experiential marketing campaign can be evaluated through several key

performance indicators (KPIs):

Brand Engagement: In terms of social media response, event attendance, and the number of

posts created by the target audience (Berman, 2021, p. 52).

Customer Satisfaction and Net Promoter Score (NPS): High customer satisfaction and

enhanced NPS prior reflect the concept of experiential marketing. Tesla can use

questionnaires after events to determine customer satisfaction (Hoch, 2020, p. 38).

Sales Conversions: The extent to which people who attend experiential events go on to

purchase the cars will help determine if the broader strategy of experiential marketing is

effective (Mangram, 2012, p. 117).

Brand Awareness: The degree of coverage achieved in the media, the total number of

advertising message exposures possible through all types of digital and non-digital media, and

the rate of growth in Website traffic are major measures of the campaign's effectiveness

(Berman, 2021, p. 54).

3.3 Social Media Strategy

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The social media plan for Tesla should involve the adoption of one or more of the

following: a user inclusion strategy that will involve using content created by a firm's

customers; using live broadcasts and creating content through live events; and utilizing

influencer marketing, which refers to partnerships created between brands and influencers.

Tesla should regularly share the emotions that a car evokes and the advantages of its cars

through Instagram, Twitter, and YouTube (Mayakkannan, R. 2024.p 19).

Social Media Content: Behind-the-scenes, customer experiences, new model sneak peeks, and

exclusive event promotions should be employed. Other possible measures include

encouraging other car users, including Tesla influencers and devotees, to share their

experiences with the cars (Schmitt, 1999, p. 65).

3.4 Sample Social Media Content

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4. Conclusion

An analysis of key success factors of Tesla depends heavily on its capacity to create

experiences with customers and outdo other prominent electric vehicle companies. Due to the

identification of target consumer awareness, the use of proper experiential marketing tactics,

and the measurement of the results by unambiguous KPIs, Tesla can enhance consumer

loyalty and acquire new consumers. That is why social networks help share these initiatives

and make Tesla's activities more widely known to other people and stimulate others. Thus,

with a successful implementation of the below outlined experiential marketing plan, Tesla
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will be better placed to create and sustain its permanent revolution in the transportation

industry, through sustainable technology.

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5. References

Berman, B. (2021). Tesla: Market segmentation and targeting strategy. Harvard Business Review.
Chen, Y., & Perez, Y. (2018). Business model design: lessons learned from Tesla Motors. Towards a
sustainable economy: Paradoxes and trends in energy and transportation, 53-69.
https://link.springer.com/chapter/10.1007/978-3-319-79060-24
Grewal, D., Roggeveen, A. L., & Nordfalt, J. D. (2017). The future of retailing. Springer.
https://doi.org/10.1007/978-3-319-59492-2
Hoch, D. (2020). The influence of experiential marketing on consumer behavior. Journal of
Marketing, 58(3), 32–40. https://doi.org/10.1177/2049716620917237
Lemon, K. N., & Verhoef, P. C. (2016). Understanding customer experience throughout the
customer journey. Journal of Marketing, 80(6), 66-83. https://doi.org/10.1509/jm.15.0420
Mangram, M. E. (2012). Tesla Motors: A case study in disruptive innovation. Journal of Strategic and
International Studies, 8(3), 110-120.
Maoheng, W. (2018). Research on the brand marketing of Tesla Electric Vehicle. Siam University.
https://e-research.siam.edu/wp-content/uploads/2019/08/IMBA-2018-IS-Research-on-the-
Brand-Marketing-of-Tesla-Electric-Vehicle_compressed.pdf.
Mayakkannan, R. (2024). Marketing via Social Media: A Case Study. International Journal of
Advanced Scientific Multidisciplinary Research, 1(6), 195-198.
https://globalarchives.in/index.php/ijasmr/article/view/35
Pine, B. J., & Gilmore, J. H. (1999). The experience economy: Work is theatre, and business is a
stage. Harvard Business Press.
Schmitt, B. H. (1999). Experiential marketing. Journal of Marketing Management, 15(1), 55-67.
https://doi.org/10.1362/026725799784870496
Tai, J. (2023). Artificial Intelligence Application in the Three Stages of Marketing: An In-Depth Case
Study of Tesla. Highlights in Business, Economics and Management, 23, 13-18.
https://drpress.org/ojs/index.php/HBEM/article/view/14537
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6. Appendices

Appendix A: Tesla’s Marketing Campaign Timeline for Experiential Events

Event Timeline Key objective Target Audience

Tesla Experience Q1-Q2, 2024 Promote hands-on Tech enthusiasts,

Days experience with Tesla eco-conscious

vehicles consumers

Tesla Road Trip Summer 2024 Showcase Tesla’s Early adopters,

Event performance and influencers, eco-

range in real-world conscious individuals

conditions

Pop-up Tesla Q3, 2024 High-traffic locations Urban residents,

Experience to engage with urban young professionals.

audiences.

VIP Tesla Owner Fall 2024 Strengthen loyalty Current Tesla

Day and build community owners, high-end

among existing consumers

customers

Virtual Reality Test Ongoing Provide a unique test- Tech enthusiasts,

Drives driving experience in potential buyers in

high-traffic areas or urban areas

events
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Appendix B: Example of Tesla Experience Day Schedule

Time Activity Details

10:00 AM Registration & Welcome Attendees check in, receive

Tesla-branded swag, and

enjoy light refreshments

10:30 AM Introduction to Tesla’s Presentation on Tesla's

Technology vehicle features and

innovations

11:00 AM Test Drives & Attendees take test drives in

Demonstrations Tesla models (Model 3,

Model Y, etc.)

12:30 PM Lunch Break Tesla-branded snacks and

beverages, networking

opportunity for guests

1:30 PM Factory Tour or Virtual Either a live tour of a nearby

Reality Session Gigafactory or a VR

immersive Tesla production

tour

3:00 PM Q&A Session with Tesla Guests engage with Tesla

Engineers engineers to learn about new

tech developments

4:00 PM Closing Remarks & Future Offer special promotions for

Purchase Incentives attendees to reserve a Tesla

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vehicle or schedule a follow-

up consultation

5:00 PM Event Closing Attendees receive exclusive

Tesla merchandise as they

depart

Appendix C: Sample KPI Dashboard for Tesla’s Experiential Marketing Campaign

KPI Target Current Status Comments

Brand Engagement 20,000 social media 18,500 interactions Slightly below target;

interactions per event (Event 1) post-event follow-up

needed

Sales Conversions 5% conversion from 4.2% conversion Adjust promotions to

event attendees (Event 1) encourage immediate

purchases

Customer 90% satisfaction rate 93% satisfaction Exceeded target,

Satisfaction (Event 1) continued focus on

customer experience

NPS 70 or higher 75 (Event 1) Strong positive

response from
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attendees

Event Attendance 500 per event 450 attendees (Event Need to boost

1) attendance through

targeted invites