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Running Head: Marketing Plan Milestones 2

Market Planning for Tesla Inc

This section entails developing a marketing strategy for Tesla's products. The plan will be based on the initially identified weaknesses and opportunities in the situational analysis. They will be used as a guide to develop marketing objectives as well as carry out research on the target market. One of the weaknesses of the company was that its operations are only limited to the United States. This, therefore, brings out expansion to oversea markets as an opportunity. This would make it benefit from economic growth in these markets (Wood & Jobber, 2016). An example would be the Asian markets for renewable energy and automotive. The company already has an added advantage in venturing into these markets since it has some presence in China already.

Marketing Objectives

The following are some of the marketing objectives for the company in the near future.

1. To increase the sales of the company by 200% in twelve months.

2. To attain a distribution coverage of 50% in the Asian market in twelve months.

3. To attain a trial rate of 40% in the untapped areas of the Asian market.

4. To attain 50% awareness of the company’s products in developing countries in twenty-four months.

Research

To achieve the above objectives, it is necessary to research to enhance the operations of the company. Besides expanding the operations of Tesla Inc. into the Asian market, there is a need to gather information about the market. This mostly entails the factors that are influential to the operations of the company in the new market. Political and legal factors are of great interest in this case. This is because the laws made in these countries will determine how Tesla carries out its operations. This would, therefore, necessitate an environmental analysis. I would also focus on the level of competition in the Asian market. This entails identifying the main competitors, their weaknesses and strengths as well as the sizes of their shares in the market and their marketing strategies. Another important factor is to gather information on the composition of the target group of the company's vehicles. This will help customize the products of the company to meet the needs of their customers (Simões, Barbosa, & Filipe, 2018).

The Target Market

The Asian market consists of countries such as China, India, Japan, and South Korea. Tesla company already has some presence in China. This is a good place for it to start. It already has a mega factory in China which enhances the distribution of the vehicles across the region since they are manufactured in the continent. China, which is part of Asia, is the largest auto market globally. This is an added advantage for Tesla since it can widen the market for its products. The government of China is also attempting to solve the air pollution problem in the country. Advocating for the use of electric vehicles is one of the ways it is using to reduce air pollution. Tesla is therefore likely to have an easy time since, despite being a foreign company, it is helping the government to achieve its goals (Hertzke, Müller, & Schenk, 2017).

In 2019, the company’s sales in China increased by 161%. Following the establishment of the factory and local manufacture of the cars, the sales are likely to triple this year. This is because distribution is likely to be more efficient. The cost of distributing vehicles to other countries on the continent will also be cheaper. As earlier stated, one of the hindrances of Tesla from attaining a great market share is that its vehicles are expensive. This is because of its focus on innovation and the high cost of its raw materials too. The costs of shipping the products from the United States to Asia must have contributed to the high prices too. The local manufacture of these vehicles in large quantities, therefore, will help take advantage of the economies of scale hence translating to lower prices. This will enable the company to charge lower prices for its products.

The main challenge that has contributed to a lower rate of adoption of electric vehicles in the Asian market is the lack of public facilities for charging and high costs of vehicles. Tesla company can, therefore, enhance the adoption of its vehicles by charging affordable prices for them. This will encourage potential customers to purchase their vehicles and therefore attain a reasonable trial rate. Factors such as the governments of these countries providing public charging facilities in their fight against pollution such as in China would boost the sales of the company (Hall & Lutsey, 2019).

References

Wood, M. B., & Jobber, L. (2016). The marketing plan handbook. Pearson.

Simões, D., Barbosa, B., & Filipe, S. (Eds.). (2018). Smart Marketing with the Internet of Things. IGI Global.

Hertzke, P., Müller, N., & Schenk, S. (2017). China’s electric-vehicle market plugs in. The McKinsey Quarterly.

Hall, D., & Lutsey, N. (2017). Emerging best practices for electric vehicle charging infrastructure. Washington, DC: The International Council on Clean Transportation (ICCT).