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T7 Marketing Plan

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T7 Marketing Plan
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    Marketing Plan   Of    Opened Market in South Korea   For Tesla Inc.   MTKG7501   Fundamentals of Marketing   Course Coordinator: Mr. Owen Seamons   Dan Zhang 44053493   Rui Xiong 44034831   Jia Dong 44041119   Chengze Wang 44100829   23/10/2015     2 Table of Contents 1. Executive Summary ............................................................................................................. 3   2. Current Situation Analysis.................................................................................................. 4   2.1 Internal Situation ........................................................................................................................ 4   2.2 External Situation ....................................................................................................................... 5   2.3 SWOT Analysis ........................................................................................................................... 6   2.3.1 Strengths ................................................................................................................................ 6   2.3.2 Weakness ............................................................................................................................... 6   2.3.3 Opportunities ......................................................................................................................... 6   2.3.4 Threats ................................................................................................................................... 7   3. Marketing strategy............................................................................................................... 7   3.1 Critical Issues .............................................................................................................................. 7   3.2 Value Proposition ....................................................................................................................... 7   3.3 Financial Objective ..................................................................................................................... 7   3.4 Marketing Objective ................................................................................................................... 7   3.5 Target Market Strategy ............................................................................................................. 8   3.6 Positioning ................................................................................................................................... 8   3.7 Branding ...................................................................................................................................... 8   3.8 Strategy Pyramids ...................................................................................................................... 9   3.8.1 Increased awareness and image  ......................................................................................... 9   3.8.2 Construction of infrastructure ............................................................................................. 10   3.8.3 Selling  ................................................................................................................................. 10   3.8.4 Customer Service  ............................................................................................................... 10   4. Marketing Mix Strategies .................................................................................................. 11   4.1 Product ...................................................................................................................................... 11   4.2 Pricing ........................................................................................................................................ 11   4.3 Promotion .................................................................................................................................. 11   4.3.2 Advertising  ......................................................................................................................... 12   4.3.3 Event Sponsorship  ............................................................................................................. 12   4.3.4 Public relationship  ............................................................................................................. 12   4.4 Distribution ............................................................................................................................... 13   4.5 Customer Service ...................................................................................................................... 13   4.6 Implementation Schedule ......................................................................................................... 14  5. Financials ............................................................................................................................ 15   5.1 Sales forecast ............................................................................................................................. 15   5.2 Expense Forecast ...................................................................................................................... 16   5.3 Linking Expenses to Strategy .................................................................................................. 17   5.4 Contribution Margin ................................................................................................................ 17  6. Controls ............................................................................................................................... 18   6.1 Implementation ......................................................................................................................... 18   6.2 Objective of goals ...................................................................................................................... 18   6.3 Marketing Research ................................................................................................................. 19   6.4 Contingency Planning .............................................................................................................. 19  References ............................................................................................................................... 20   Appendix ................................................................................................................................. 21     3 1. Executive Summary It is a marketing plan which aimed as opening market in South Korea for Tesla Motor Inc. Firstly, the internal situation, external situation and STOW analysis will be demonstrated to define the circumstance that the company might be faced. Then marketing strategy part argued some crucial questions. Moreover, the details marketing methods will be included in marketing mix strategies part. Furthermore, action programs could be the indicators and guideline of this plan. In addition, the budgets controlled financial risk and sales forecast show the outlook of Tesla open business in South Korea. Besides, some controlling method has been designed to avoid unexpected conditions.   4 2. Current Situation Analysis 2.1 Internal Situation First of all, the internal circumstance might need to be discussed. Recent years, Tesla  prepared much to perfect it self’s ecological chain. The upstream of this chain is related to increase production capacity, the downstream of this chain is related to improve after-sales services. Whereas, both ends aimed as the expanded in market. According to the annual report from Tesla, now the company hold factory in Fremont, CA and manufacturing in Lathrop, CA, the company also set a branch in Amsterdam as the headquarters in European. Moreover, Tesla begun to established a Gigafactory at Reno, Nevada. As an electric car  brand, this factory might have a significant meaning for company because electricity is the  power sources of the car. Furthermore, company established relationships with Panasonic, Daimler AG and Toyota Motor Corporation as the battery supplier, supplied powertrain and strategic partners. It might need to be mentioned that company also build governmental  programs, the two iconic programs are “Full Re  payment of United States Department of Energy Loans” and “Californian Alternative Energy and Advanced Transportation Financing Authority Tax Incentives”. Thus, from both hardware and software angle, Tesla is prepared for expanded the market (Tesla Motor, I nc. 2015). In addition, also according to the Tesla’s annual report, the company put international market in a crucial position, the report mentioned that if the company could not control the future grow or could not growth effectively, especially internat ionally, and then the company “may not be able to produce, market, sell and service our vehicles successfully”. More details, the cooperation stressed that they will expand the operations particular in “North America as well as Europe and Asia. Tesla wish that it could sell 500,000 car each year in 2020, therefore it might need new growth points. Asia already showed potential as the financial part in annual report demonstrated that in 2014 China was already the second biggest income market. Thus Asia could  be an important piece of the company’s business puzzle (Tesla Motor, Inc. 2015). The next questions might need to analysis is that could the company support itself expanded from financial aspect. As the annual report revealed, in 2014 the total revenues of Tesla Company is 3,192,723 (in thousands), in 2013 this number is 1,997,786. The cash low in 2014 is 2,143,130 and this number is 635,422 in 2013. Also, until December 31, 2014, company’s gross margin was 27.6% and the gross margin was 22.7% as the end of December 31, 2013 (Tesla Motor, Inc. 2015). Thus, Tesla need to expand internationally cause international   5 market has an essential meaning for company. The company has the capacity to expand itself on hardware, software and financial support aspect. 2.2 External Situation The external environment which is South Korea might also need to be analyzed. According to Korean Statistical Information Service, South Korea is the 109 TH  largest countries in the world, it has 38, 691 square miles. In 2014, South Kore a’s population was 50,617,045 which ranked as 26 TH  in the world and to check the population by density South Korea ranked as 16 th  in the world (Korean Statistical Information Service, n.d). Although it is a small country  but it has large population, and South Korea has a relatively strong economy power. International Monetary Fund reveal that as an estimation, in Purchasing Power Parity pattern, Korea’s GDP might be $1.853 trillion which ranked as 13 th  and as per capita it might be $36,601 which ranked as 29 th . Directly, Korea’s GDP is predicted as $1.435 trillion in 2015 which ranked as 11 TH  and the per capita number is $28,338 which ranked as 28 TH  (International Monetary Fund, 2014). Moreover, the Central Intelligence Agency of USA demonstrate that South Korea’s Gini coefficient in 2011 was 31.1 as 113 th  in the world (Central Intelligence Agency, n.d.). Furthermore, South Korea’s Human Develop Inde x is 0.891, ranked as 15 th  in world which is quite high (United Nation Development Program, 2014). Therefore, South Korea might could be defined as a country with mature and sound market economy system with the relative strong economic strength and some international influence. The next factor might need to be discussed is auto industry in South Korea. According to Korean Automobile Manufacturers Association, in South Korea the industry  began in 1955 and now it is the 5 th  largest in the world both by automobile unit production and automobile export volume (Korean Automobile Manufacturers Association, 2014). Although in early time of 2015, Tesla had posted job positions in South Korea, but for sale cars in South Korea, Tesla might need to consider about competitors (Vikas, 2015). In vertical comparison angel which means in field of electric vehicles, company saw Audi, BMW, Lexus and Mercedes as powerful competitors, however none of South Korea auto manufactures has been mentioned by company (Tesla Motor, Inc. 2015). In horizontal comparison angle which means sale cars in South Korea, although there are about 1.7 million cars sold in this country annually but Hyundai and Kia two brands carved up to 60% market share (Benjamin, 2015). Thus the company will both face opportunities and challenges
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