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Tesla's International Marketing Plan
Transcript of Tesla's International Marketing Plan
Pricing must be in line with a firm’s target market objectives and positioning strategies (Hollensen, 2010).
Assuming a tax rate of 105% in total, the model S (with a starting price of $70000) would be 530,000 Ringgit Malays which places the model S as a direct competitor of BMW high standard sedan models (500,000 - 800,000).
By importing in Malaysia, Tesla’s positioning would still be achieved as competitors' price range.
An analysis of Malaysia as our target country
Tesla's Expansion Strategy
Extended product: charging stations facilities.
Regulations: left hand traffic regulation.
Model S: positioned on the luxury sedan market.
Model X: expected in 2016
Tesla Motors International Marketing Plan
Tesla's Unique Selling Point
Tesla's SWOT analysis
Greenfield sales subsidiary:
Provides us with interaction with customers
Receive feedback, allowing for flexibility
Minimizes risk of leakage
Higher cost than acquiring an existing firm
Higher risk involved
Culture has to be transferred/ created
Requires specialised market knowledge
Malaysia participates in AFTA & APEC
Tesla plans to construct an Asian hub
within 3 - 5 years.
Take advantage of preferential tariff rates and significantly reduced transportation costs.
International Strategic Alliance
Take advantage of complementary
knowledge & resources.
Share costs & risk
Enhance brand loyalty
Conflicts of interests
Both parent firms must be committed.
Clash of cultures
Tesla Motors is an American company founded in 2003,
Tesla designs, produces and sells electric-run sports cars,
Government encouragement use of green transport,
High-income consumer market
Their innovation ability
Components built in-house
Numerous investors and
Direct opening of wholly owned sales stores. Main goal is to educate customers of what Tesla offers.
Locate stores in shopping centres.
Make use of available technology.
Conduct effective recruitment to overcome language barriers.
Advertise by educating, urban development and social media (Chinese market failure).
Malaysia is amongst the first social networks user globally (TNS Global).
Effective use of social media to target market segments
Sponsorship through celebrity endorsement and technology related events.
Tesla’s lifetime debt $1,251,327,000 in 2014
economies of scale
yet - high price of cars
concerns about the environment
The electric vehicle business will approach a value of $500bn by 2025 (Colson, 2014)
small number of competitor models (Tesla, 2011)
lack of support infrastructure
such as charging stations
oil in Malaysia makes petrol cheap
Tesla's Internationalisation Progress
1) USA 6) France
2) China 7) Brazil
3) Japan 8) Italy
4) Germany 9) India
5) UK 10) Russia
International Business Times (2014)
Top 10 Worldwide Economies (GDP)
Successful expansion into the Asia Pacific region:
Malaysia is next!
Strategic alliance with greenfield sales subsidiary.
Marketing team to help with local know how
300 stations £900,000
We invest 15% = £135,000 by Autumn 2015
Borders singapore to make re-entry easier / entry into Indonesia (a MINT) country
- setting up superchargers will promote industry as a whole
- weak competition, with only Mitsubishi and nissan being major rivals in malaysia
Chew, T. 2013. http://leapingpost.com/2013/11/23/electric-vehicle-charges-malaysia/
National Electric Mobility Plan:
Establish 300 'Supercharger' charging stations across Malaysia = RM 5 Million (approx £900,000)
Our investment 15% = £135,000
Our proposed Strategic Alliance with the Malaysian government
Reasons why International Expansion to Malaysia would work
1) Strong government incentives for the electric automotive industry within the last 3 years
2) COSMOS (Malaysia's car sharing system)
3) Malaysia's 2014 Automotive Policy
Electric cars are slowly getting to the point where you can purchase advanced technology at an affordable price. This is not the case in Malaysia, however, as even the the Mitsubishi i-MiEV sells for over RM100,000. Despite the tax exempt status, the expensive price for electric vehicles limits its appeal to high-middle-class and upper-class earners.
For electric cars to be successful here in Malaysia, charging stations and other supporting infrastructure need to be made more commonplace. It is fair to say that the electric car industry is unestablished in Malaysia–yet one can also speculate that electric vehicles will be the best option for environmentally-friendly personal travel in the not-too-distant future. It is good to see that Malaysia is at least taking measures to ensure that the future of the electric car will be a promising one.
Malaysian in free-trade region?
2012 Budget - full exemption on import tax and excise tax
Transform Malaysia into a regional energy-efficient vehicle (EEV) hub
Electric Car fleet of 3,500 COSMOS Vehicles
1 Greenfield sales subsidiary in Kuala Lumpur - Budget: £10,000,000
300 Charging stations (as part of a strategic alliance) - to be installed by fall of 2015
Thank you for listening. We welcome any questions!
These celebrities drive Tesla Motors, will you be next?
Tesla Motors Internationalisation Strategy
‘to accelerate the advent of sustainable transport’ by introducing captivating and innovative electric cars to the market (Musk, 2013)
Bloomberg. A. Ho, C. Kong Ho. 2015. Musk Reboots Tesla's China Strategy. [ONLINE] Available at: http://www.bloomberg.com/news/articles/2015-03-29/musk-reboots-tesla-china-strategy-as-range-anxiety-crimps-sales. [Accessed 17 April 15].
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