Q Report is about MARKETING PLAN FOR TESLA- The Marketing plan for Tesla entering India and Indian Market Home, - MARKETING PLAN FOR TESLA MARKETING PLAN FOR TESLA Abstract The report is strategic marketing plan for Tesla in Indian Market. The specific focus is there on the target segments as well on the possible share of the Tesla products etc. Further there is discussion presented on the type of pricing strategies to be included in accordance with the Tesla expertise as well as per the market conditions of the country. Overview of the company and the background: Tesla Inc is a formerly Tesla Motors Company, the company is specialist in making automobile and energy related products. The headquarters of the company located in Palo Alto of California. The key products of the company at present include electric cars as well as solar panels from the solar city, its subsidiary company. Further the solar panel manufacturing operates on multiple production and assembly plants. Tesla is also into the production of the power-wall, power pack batteries as well as solar panels and solar roof tiles as well. Company has operations in United States, Canada, Europe, Asia and Australia as well. Company has tie-ups with several other partners like Daimler AG, Toyota, Panasonic, Airbnb, Liberty Mutual etc. The mission of Tesla is to accelerate the advent of sustainable transport. Tesla operational strategies consist of unique takeover of the sales and services division for its products. This is one of the main reasons for its successes in the forefront. In electrical car domain, extensive service network establishment for car battery charging is one of the main propellants of growth of revenue for Tesla in electric car segment. The following part of the write-up discusses a marketing strategy of the company to enable it to enter into India and India’s market as well. Marketing strategy for Indian Market Target Market overview: India is one of the few fast emerging economies in Asia. More and more middle class people of the country are moving to upper levels and the standard of living is changing as well. At present there is considerable growth in the market economy and there is good market for automobiles. Further there is recognition for renewable energy and other related sustainable energy forms in the country. Transition is in progress towards making transport more sustainable. The main marketing segments of Tesla are GoGreen, Electric Charging stations, Sporty, Fast, Status, Affordable models (IE -3). As per the investigations available in India domestic market, there are altogether about 6-7 millions of electrical vehicles are possible in the country by about 2020. Overall Electrical vehicle market in India by about 2022 is about 4.7GW. Domestic charging stations are expected to be installed in almost all the major cities in the country (Enincon). About 200 charging stations are expected to be installed in Delhi alone. Government of several states already launched subsidy schemes for the purchase of electrical vehicles. This is expected that this scheme can result in increase in the overall market for the Go-Green products of Tesla. In India the overall car market is high and growing at about 30%. It is expected that the India car market can be the world’s third largest by 2020. The affordable car markets are higher than the luxury, sports, fast and status segments in the car market of the country. Overall Car market in the country by 2020 is about 6- 7 millions. This is an aggressive and extremely lucrative market for both the electrial vehicels as well as for electrical batteries in the country. Tesla Solar products possible market in india: Present solar product market in india is at 12GW. The growth rate for the products is growing at very high rate. It is increasing at a rate of more than 35% by 2022. This is a promising market for Tesla to launch solar panels in the country. Further set of targets Tesla being a pioneer in enabling the trasition to the sustainable transport, need to expand its niche market area in the electrical vehicle section if need to take the best advantage of the indian market. Specifically there is considerable scope in the auto-rickshaws(e-rickshaws) and e-bikes market in the country. As the country is continuously working for rendering the support to this market, there is considerable scope for market in this sector. Obviously this need to be extended target sector for the company. Also from service perspective, there is much to do for the country to offer the charging stations in the country. There is need to extend the charging centers through out the country and this can provide considerable support to e-vehicle sales as well will also provide scope for tesla to sell its smart charging equipment. Market Growth Rate Current market for the e-vehicles and other cars in the country is increasing at a rate of about 30% and the solar panels and the solar industry is increasing at a rate of about 35% hence there is considerable scope for the market growth in the country. Expected market share It is more likely that the Tesla can take over the car market in all the niche areas of the top few models and hence there is considerable competition the Tesla can offer in the top trending model classes. The current market in the india is not very high for American models, however with the advent of Tesla with e-models, it is more likely that the company can take up the major share of the e-car market. Which can be about 20% of the total car sales in the first few years. This is predicted based on the trasitions rates to the sustainable energy and sustainable transport promotion incentives in the country. However the exact prices of the car will decide the final market share, as the market is more price senstive. Rationale and estimates The key rationale for the estimates is based on the automobile growth rate and the promotions of the sustainable energy market in the country. Further the client’s competitive market also is considered. However there is an element of prediction in the car market, as there is much to do with the final prices which the company will fix for each of the product. As of now there are no many competitors in the e-car market in the country. The key players are BMW i3, Tata indica vista electric, Mahindra Revo e2.0, Tata mega pixel and Nissan Leaf. However the prices of these car models do vary in price from 5 lakhs to 20 lakhs. As Tesla already is established brand in USA and about 13% market of USA is hold by Tesla as per the latest statistics, hence there is considerable scope to compete in all these sectros by Tesla, as it has already proven expertise and has models that fit in each of these price segements. However it is more likely that the affordable car models can have immediate market in the country. Discussion on pricing strategy: Pricing strategy is all about setting the prices of the products in accordance with the strategic marketing plan. Pricing strategy can be based on the social and economic conditions and living standards of the target audience. Considering the fact that India is an emerging nation, it is more likely that the country can think of penetration pricing strategy as this has more potential to outreach the target audience of the country. However the company can employ differential pricing strategies. It can have prices of luxury models higher, further middle segment of the cars can have value pricing and there is also reasonable scope to employ low pricing strategies such as economy pricing for market entry requirements. The sales price of the products are expected to meet these requirements. The most appropriate strategy is to fix the prices in accordance with the competitor pricing in each of the different sectors of the car models. The prices of the economy models can be set at slightly lower than the pricing of the tata models, the prices of the value models can be set at comeptitive or penetration pricing levels which is slightly less than the Mahindra models. BMW and Nissan models can be taken as market bench mark and the prices of the models can be set slightly less than these models for luxury modelas as per the penetration strategy recommended. Conclusion Tesla as is well established market player in e-cars and solar panel industry in United States, the company has good potential to excel in India as well. The main advantage is that at present very few players are there in the market in the india at present in e-car market and there is considerable scope for the company to lead the market with its new models and right pricing strategies.