International Marketing — project to The major project in this unit is to develop a marketing plan for expanding a product into a new market Essay Example
Tesla Car 1
Saudi Arabia is emerging as the automobile business hub of the Middle East. This requires Tesla to strive hard to remain ahead of its competitors from Japan and South Korea.
The present and future growth of Tesla requires a new technology based dynamic approach to marketing management. As such, Tesla has to persist with its efforts to manufacture innovative products. Moreover, Tesla could broaden its brand in the luxury vehicle market segment and thereby make itself sufficiently attractive for being acquired by a large automobile manufacturer. While, its competitors endeavour to generate a plethora of gasoline powered, electric and hybrid automobiles, Tesla should concentrate upon the production of a restricted and exclusive area of memorable electric vehicles of outstanding quality.
The primary target market of Tesla is that of the upper middle class and the wealthy, in the age range of 30 to 60 years, this makes the cost of its automobiles quite high. For capturing the Saudi Market, Tesla would benefit by reducing its automobile cost initially. This would enable the other classes of society to purchase this vehicle. Subsequently, Tesla can increase the price of its vehicles and position its product at higher levels in the Saudi market. In addition, compliance with customer expectations requires Tesla to be sufficiently concerned with the aesthetic and other features of its vehicles.
In addition to battery powered electric cars, Tesla can focus upon manufacturing cars that run on fossil fuels and other eco-friendly substances, such as solar or wind energy, or biomass. This would be highly appreciated in Saudi Arabia, where the oil pollution levels are high. Moreover, Tesla should ensure that all imports are made directly from Freemont, California, where its cars are manufactured. This will reduce transportation costs dramatically, and prove to be a major advantage for product distribution. Moreover, Tesla has to set up several more distribution and customer service centres in Saudi Arabia to address competition from Japan and South Korea.
The Saudi culture is dominated by collectivism, and this requires Tesla to be better aware of these issues, which in turn will render its dealings with the Saudis more trustworthy. Tesla cars, per se, should continuously innovate and comply with customer expectations, to occupy a dominant position in the Saudi automobile market.
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