Marketing Strategy And Plan Tesla Model 3 - Free Sample

Question: Describe about the Marketing Strategy and Plan for Tesla Model 3. Answer: Introduction Tesla Model 3 is the upcoming sensation in the market of automobile industry (Tesla.com, 2016). The main aim of the company is to make ownership of the car more affordable by a huge amount of people. The marketing plan will help the organization to target the customers and the design their promotions accordingly. The strategic analysis will talk about the political, economic and social/cultural analysis of the external market will help Tesla model 3 to thrive in the competitive market. The competitor analysis will make Tesla model 3 aware of the competitors in the market so that Tesla will know about the strategies of the competitors. Tesla will be able to design their strategy accordingly. Finally, recommendations will be given based on pricing, distribution and promotional strategy that they can implement to promote the business. Potential of the product Until date, Tesla has been preferring the high-end customers who would be interested in the high priced cars manufactured by Tesla. However, with the introduction Tesla model 3, the company has planned to target a mass market. The middle-income buyers will be able to fulfill their dream to own a Tesla (Kiley, 2016). The Tesla model 3 is priced in the range of $35,000 so that the middle-income group in the society could afford it. Going by the price, it can be said that the products has the potential to make the cars affordable to the middle-income group of the country The weight of Tesla model 3 is quite light as compared to the previous Tesla models. In addition to this, the model is directed towards the family with children. It has been said that one can sleep in the car due to the extra space in the car. The rear sets could be flattened by giving a space of 66 inches in the front. The flat surface will help in turning the cabin of the car into a tent (Branman, 2016). The customers who are having small children will be able to make them rest in the car. The interior of the car will be completely silent; hence, a baby will be able to sleep peacefully in the car if required. Thus, the car has the potential to attract the family buyers. It can be said that the B2C type of business will be best suited for the Tesla model 3 Strategic analysis Political The free trade agreement by the government of Australia has been beneficial for the Tesla. They will be able to supply parts of the car from different parts of world. In addition to this, it would not be an issue to export or import final made cars to different parts of the world (Czinkota Ronkainen, 2013). However, the presence of liberal-capitalist democracy makes the government interfere in the business of the international location. The government imposes the tax on the trade that is being done between the international locations. Economic The economic condition of Australia us quite stable. Australia, being a developed country, the customers will be able to afford high-priced products. As a result, the market of Tesla Model 3 will be strong. The added advantage of the Tesla model 3 is the lower price range of the car. Social/ Cultural It can be said that Australia is a multi-cultural nations. The footfall of the immigrants from different parts of the world is quite high. The economic status of the aboriginals is rising as well as the footfalls of the migrants from some of the developed countries of the world are also high. Thus, for Tesla it would be easy to attract the people who have migrated to Australia and have tight budget to live in the country. Hence, it can be said that the presence of multi-cultural people and the migrants will be helpful for the management of Tesla. Competition Analysis Competition is one of the major factors in the external market. The three major competitors for Tesla in the market of Australia are: Holden Controlled and owned by American general motors, GM Holden Ltd is car manufacturers in Australia (Holden.com.au, 2016). Holden was at the peak of the business during 1950s. The Holden special vehicles is an official partner of Holden. The official partner helps in converting Holden Marques like Ute, Commodre and Caprice. Holden is suffering from an economic downturn. As a result, Holden might stop their production in the year, 2017. Ford Ford is one of the major automobile brands in the market of Australia. It started its operations in the year 1925 as being an associated company for the Ford Motor Company located in the United States (Ford.com.au, 2016). The best part of Ford is that it has the high-volume engines that are being manufactured by them. The Australian unit of ford mainly concentrated on the sports section. In spite of being in e of the successful company, it has been suffering financial issues since the year, 2013. Toyota The origin of Toyota is mainly in Japan with a strong presence in Australia since the year, 1958 (toyota.com.au, 2016). In the years 1978, Toyota manufactured gearboxes and engines in the factory present in Altona, Victoria. By the year, 1992, Toyota manufactured 1million cars. The number doubled in the next decade. The performance of Toyota has been able to surpass the sale Holden by 200 new cars. However, the major drawback of the company is that due to the economic issues, the factory of Toyota is Australia has been due a shutdown in the year 2017. Recommendation for the pricing strategy Pricing Strategy The pricing strategy of Tesla Model 3 should be done by keeping in mind the middle-income group (McKenzie-Mohr, 2013). Thus, the price of the cars should be cheaper than other model that have been previously manufactured by the company. Distribution Tesla should use different types of distribution strategy like: Direct to end users Using the online sites will be helpful for Tesla. The sales team would not take part in the sale but the product would be sold direct to the customers (Mols, 2013). Selling through dealer network Separating the dealers based on the geographical area. The dealer will help the company to know the choice of the customers in that area and that will help in increasing the sales of the company (Jobber Ellis-Chadwick, 2012). Promotion The principle promotional strategy that could be used by Tesla Model 3 is with the help of electronic media (Czinkota Ronkainen, 2013). Tesla should focus on the advertisements that show families travelling in the car. The extra space should be highlighted in the advertisements. In addition to this, the cheaper price of Tesla as compared to other cars should be highlighted in the advertisements. Conclusion After going through the strategic analysis of Australia and the competitors in the market, it can be concluded that Tesla will have a favorable market in Australia. The competitors of Australia have been performing well in the market. However, all the three competitors are suffering from economic downturn. Hence, Tesla model 3 should take opportunity of the downturn. The economic and social analysis reveals that the market of Australia would be perfect for Tesla to launch the model 3. The migrated population is always will prefer the car that are comparatively cheaper than other models that have been launched by the company. The two distribution strategies that have been used by the company are direct to end users and selling through dealer network. References Branman, M. (2016).TESLA MODEL 3 PERFORMANCE, SPECS, AND NEWS.Digitaltrends.com. Retrieved 26 September 2016, from https://www.digitaltrends.com/cars/tesla-model-3-performance-specs-news-rumors/ Czinkota, M. R., Ronkainen, I. A. (2013).International marketing. Cengage Learning. Ford.com.au,. (2016).Ford Australia - New Cars, SUVs, Utes Commercial vehicles..Ford.com.au. Retrieved 26 September 2016, from https://www.ford.com.au/ Holden.com.au,. (2016).Holden Australia - Discover New Possibilities.Holden.com.au. Retrieved 26 September 2016, from https://www.holden.com.au/ Jobber, D., Ellis-Chadwick, F. (2012).Principles and practice of marketing(No. 7th). McGraw-Hill Higher Education. Kiley, D. (2016).Forbes Welcome.Forbes.com. Retrieved 26 September 2016, from https://www.forbes.com/sites/davidkiley5/2016/03/30/tesla-model-3-could-be-timed-perfectly-for-mass-market-electric-driving/#6d8994b22ce8 McKenzie-Mohr, D. (2013).Fostering sustainable behavior: An introduction to community-based social marketing. New society publishers. Mols, N. P. (2013). The Internet and the banks strategic distribution channel decisions.International Journal of Bank Marketing. Tesla.com,. (2016).Model 3 | Tesla Australia.Tesla.com. Retrieved 26 September 2016, from https://www.tesla.com/en_AU/model3?redirect=no toyota.com.au,. (2016).New Cars Toyota Australia: Prices, Service Centres, Dealers, Test Drives.toyota.com.au. Retrieved 26 September 2016, from https://www3.toyota.com.au/home