International Marketing Plan for Tesla in the Indian Market

This report provides a detailed marketing plan for Tesla's product launch in India. It begins with an executive summary outlining the report's objectives, which include a marketing audit (SWOT and PESTLE analysis), examination of the micro-environment (consumers and competition), and a justified conclusion regarding India as a suitable market. The report then delves into segmentation, targeting, and positioning (STP) strategies, recommending specific approaches for Tesla to identify and reach its target market. It also proposes market entry strategies and discusses the marketing mix (product, price, place, and promotion). The report includes an overview of Tesla's organization, a SWOT analysis, and an analysis of consumer behavior and competition within the Indian market. The report concludes with a reflective statement on teamwork, ethical dilemmas, and key moments during the report's completion, including the strengths of the group and areas for improvement. The goal is to provide a thorough, actionable plan for Tesla's successful entry into the Indian market.

Running head: GLOBAL MARKETING AND SALES
GLOBAL MARKETING AND SALES
Name of the Student
Name of the University
Author Note

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Executive Summary
The purpose of this report will be to prepare a marketing plan for Tesla, who is going to launch
their products in India. Marketing audit will be performed, where SWOT and PESTLE analysis
will be performed as a part of the marketing audit to study various factors of the market place of
India. The micro environment will also involve the factors of consumers and competition that
will be faced by Tesla in this market, which will help to identify the exact requirements of the
consumers of this place. Based on the marketing audit, a justified conclusion will be drawn,
which will help to understand whether India is an appropriate global market for the company of
Tesla to enter or not, where a clear rationale for this conclusion will be provided in this paper.
Recommendation will also be provided regarding the segmentation, targeting and positioning or
STP strategies that need to be structured and followed by the management of Tesla, which will
help to identify the exact target market segment from the vast market place of India and target
them with efficient strategies and position the products. Separate market entry strategies will also
be designed which will help to implement and follow to have a successful launch in this new
market place. Marketing mix will also be discussed in this paper, which will help to identify the
required step before launching their product, so that efficient strategies can be designed and
implemented by the management of this American company. At the end, a brief conclusion will
be discussed, which will include the summary of the main topics that are discussed in this paper
along with a critical reflection of working togetherness in completing this report. The strengths
of the group as well as the ethical dilemmas that the team faced and how these dilemmas were
addressed will be included in this section, along with a focus on critical moments which led to
good or bad performances, team conflicts, efficiency level and other factors faced by the team
members.

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Table of Contents
Introduction......................................................................................................................................4
Overview of the Organization.........................................................................................................6
Marketing Audit...............................................................................................................................6
Micro Environment......................................................................................................................6
Strengths..................................................................................................................................6
Weakness.................................................................................................................................7
Opportunities...........................................................................................................................7
Threats.....................................................................................................................................8
Consumers...............................................................................................................................8
Competition.............................................................................................................................8
Macro Environment.....................................................................................................................9
Political Factors.......................................................................................................................9
Economic Factors....................................................................................................................9
Socio-Cultural Factors...........................................................................................................10
Technological Factors............................................................................................................10
Legal Factors.........................................................................................................................11
Environmental Factors...........................................................................................................11
Segmentation, Targeting and Positioning......................................................................................12
Segmentation.............................................................................................................................12

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Geographic Segmentation......................................................................................................12
Demographic Segmentation...................................................................................................12
Behavioral Segmentation.......................................................................................................13
Psychographic Segmentation.................................................................................................13
Targeting....................................................................................................................................13
Positioning.................................................................................................................................14
Recommendations for Market Entry Strategy...............................................................................15
Marketing Mix...............................................................................................................................17
Product.......................................................................................................................................17
Price...........................................................................................................................................17
Place...........................................................................................................................................18
Promotion..................................................................................................................................19
Reflective Statement and Conclusion............................................................................................19
References......................................................................................................................................20
Appendix........................................................................................................................................23

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Introduction
The main objective of this report will be to prepare a marketing plan for the company of
Tesla, who is going to launch their products in the market of India. Tesla is an American
organization which is engaged in manufacturing selling of electric vehicles along with energy
storage in batteries and manufactures solar roof tiles and solar panels. The management of this
company has identified the market of India as one of the most potential areas to sale their
manufactured products. In this report, an overview of the organization of Tesla will be discussed,
along with a marketing audit that will be based in entering the market place of India. In the
marketing audit, SWOT analysis will be performed where the strengths, weaknesses,
opportunities and threats of entering the market place of India from the viewpoint of Tesla. Apart
from this, PESTLE analysis will be performed as a part of the marketing audit, which will
involve political, economic, socio-cultural, technological, legal and environmental factors, which
will help to study various factors of the market place of India. The micro environment will also
involve the factors of consumers and competition that will be faced by Tesla in this market,
which will help to identify the exact requirements of the consumers of this place regarding the
products that are going to be launched here along with the competition that is present here in the
form of rival business entities (Vynakov, Savolova and Skrynnyk 2016).
Based on the marketing audit, a justified conclusion will be drawn, which will help to
understand whether the chosen country, which is India, is an appropriate global market for the
company of Tesla to enter or not, where a clear rationale for this conclusion will be provided in
this report. Recommendation will also be provided regarding the segmentation, targeting and
positioning or STP strategies that need to be structured and followed by the management of
Tesla, which will help to identify the exact target market segment from the vast market place of

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India and target them with efficient strategies and position the products, so that Tesla will be able
to penetrate the market of India efficiently and gain a share in this market by fighting with the
rival business houses. The current STP strategy that is followed by Tesla in the United stars of
America will be drawn, and based on that evaluation, identification and selection of the target
segments in the Indian market will be discussed in this paper that the company should target. A
justified conclusion for this decision will be provided, and in addition to that, recommendation
regarding the positioning of the brand will be analysed, considering the competitors that are
already present in the Indian market, along with providing a rationale to support these
recommendations (Schowalter 2017).
Separate market entry strategies will also be designed in this report and recommended to
Tesla, so that they can implement and follow them and have a successful launch in this new
market place for them. It can be noted here that India possess a healthy opportunity for the
products that are manufactured and sold by the business house of Tesla. Marketing mix will also
be discussed in this paper, which will involve the 4 P’s, which includes product, price, place and
promotion. This marketing mix will help to identify the required step before launching their
product, so that efficient strategies can be designed and implemented by the management of this
American company. At the end, a brief conclusion will be discussed, which will include the
summary of the main topics that are discussed in this paper along with a critical reflection of
working togetherness in completing this report. The strengths of the group as well as the ethical
dilemmas that the team faced and how these dilemmas were addressed will be included in this
section, along with a focus on critical moments which led to good or bad performances, team
conflicts, efficiency level and other factors faced by the team members.

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Overview of the Organization
Tesla Motors, Inc. is an automobile company that has a specialization in the manufacture
of electric vehicles, energy storage in batteries and also manufactures solar panels and solar roof
tiles. It is an organization from America with its headquarters in Palo Alto, California that deals
with clean energy with the help of electric vehicles. It was founded by Marc Tarpenning and
Martin Eberhard in July 2003 (Krüger 2019). The initial funds were provided by Elon Musk, the
Chairman of the Board. The company operates in various branches that comprises of production
and assembly plants, the main automobile manufacturing plants being located at Tesla Factory
located in Fremont, California. Tesla has been recognized as the best-selling plug-in and
passenger car that runs on battery electricity in the world. Tesla’s sales of vehicles around the
globe has been increasing rapidly since 2018 with the production of the 1 millionth car on 9
March, 2020. Later in the same year, the company scored a profit of US$166 billion (Hoffman
2015).
Marketing Audit
Micro Environment
As discussed, a SWOT analysis will be performed here in this section of the report that
will help the management of Tesla to design their market entry strategies to enter the Indian
market. Identification of the consumers as well as the competition that will be faced will also be
discussed under this section.
Strengths
There are several positive aspects of Tesla that have pushed its position for becoming one
of the world’s most leading companies. The company has been one of the most ideal places to
work since ages, which attracts fresh and energetic talents. Tesla makes innovation at a very high

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rate, which in turn helps the market to develop the trust for them in making profitable and
competitive products. It has developed vehicles that have advanced in luxury and innovation at
the same time. In a country like India where population and pollution are increasing serious
hazards, Tesla will be able to provide eco-friendly vehicles which runs on renewable energy and
also reduces environmental pollution. Tesla manufactures the finest electric automobiles while
reducing the transportation cost to the minimum and simultaneously covering the maximum
distance (Bilbeisi and Kesse 2017).
Weakness
There are certain drawbacks in the organizational structure of Tesla as well which lower
its growth and competitiveness. Due to the high rate of innovation, risk factors in production and
mechanical complications do prevail. While launching new products and vehicles in a new
market, Tesla faces continuous delays. Meanwhile, the company has to boost the promotion of
the electric vehicles in Indian automobile market to reach out to the mass. The company may
also face difficulties in terms of heavily imported tariffs and low brand awareness in India. Other
weaknesses of Tesla include lack of high-volume production of its models, reduced rate of
production due to limited battery supply and highly complicated procedures and experiments
leading to an imbalance in demand and supply market (Hoelzlhammer 2018).
Opportunities
The most important opportunity for Tesla at the moment is the Asian market as these
markets are quite unsaturated in terms of renewable energy and automobile markets. Similarly,
Tesla has a huge opportunity to grown in the Indian automobile market where there is an
increased demand for such electric or battery run vehicles (Rodrigues et al 2015). A serious
threat has been imposed to the country due to the uncontrolled increase in environmental
pollution. Therefore, there will be large demand of such vehicles in the near future and this is the

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best opportunity for Tesla to expand its global market in India. The latest models of Tesla are
much affordable which another opportunity for a developing nation like India is. The company
will also get the advantage of cheap labor in Indian market while setting up factories (Gujarathi,
Shah and Lokhande 2018).
Threats
Though the company has high standards of manufacturing, it also has certain product
liability claims which, according to the company, is one of the largest financial threats. The
autopilot vehicles launched by the company were not successful in accidental cases. Several
other companies are also developing in the alternative fuel vehicle as strong competitors in the
market. This may also result to rapid change in preference of customers. Therefore, Tesla must
operate according to the appropriate demand of Indian automobile market. Moreover, product
defects have occurred due to highly complicated manufacturing of innovative vehicles. This may
permanently harm the company image if Tesla fails to maintain the sustainability (Park et al
2014).
Consumers
As discussed earlier, people who are environment conscious will be the major targeted
segment for the products which will be sold in the market place of India. Apart from this, people
who possess high disposable income will also be another major targeted segment for Tesla.
People need to be made aware about the benefits that they will get by using the products of
Tesla, so that more people can be attracted towards them after their launch in Indian market. So,
it can be stated that the eentrepreneurs and business executives who are green-friendly, tech-
savvy and wealthy.

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Competition
The major competitors who are present in the Indian market for the products of Tesla
which are discussed above are Mahindra, Hyundai, BMW, Tata Motors, Nissan, Volkswagen,
Honda and many more. It can be stated in this context that India is the second most populated
country across the whole world, so there are presence of many national and international brands
to capture this lucrative market (Symbol, Manufacturers and Cyclical 2013). This indicates a
tough competition that will be faced by the management of Tesla while entering this particular
market place. All the organizations which are mentioned above are already established brands in
the Indian market place, so it will be tough for the company of Tesla, so the management of this
organization have to design their strategies accordingly so that can have a successful launch in
the market place of India and penetrate this lucrative market place with the products that are
designed, manufactured and sold by this automobile organization.
Macro Environment
As already discussed, PESTLE analysis will be done here to identify the potential factors
that will be faced by Tesla and need to be followed, so that a successful launch in the Indian
market can be done by this automobile business entity.
Political Factors
The driving forces that affect industries and business in a country are the governmental
entities. Since ages, the automobile market of India has attracted multiple foreign investors.
Tesla will get an opportunity to grow in this country as this field is more developed than other
markets. The government has also funded in the automobile market as well as taken initiatives to
enhance the development of eco-friendly and electric vehicles. The company must look into the
latest trends on global agreements as well as the political stability in the automobile markets.

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These factors will ensure a successful market penetration of the company by providing favorable
macro or remote environment to Tesla’s intensive growth and strategies (Purificato 2014).
Economic Factors
The automobile industry of India contributes almost 22% to the country’s GDP while the
economic growth is 6% at an average. This is an essential activity of generating income for the
nation. This growth has paved the way to attract more consumers as there is a rapidly growing
middle-class section in India. This section of people holds a record of increasing purchase of
vehicles in the last few decades. Due to all these, there is a serious concern about the
environmental pollution for which there is a demand for pollution free and eco-friendly
technology in the market. Tesla can grab this opportunity to extend its global market in India.
With reducing costs in manufacture of batteries and renewable energy production, the company
may achieve its objectives in the new market. With the availability of cheap labor, Tesla will also
ensure a growth in the employment rate of India (Ghosh 2014).
Socio-Cultural Factors
One of the main reasons why India has become the hub of automobile industry is its large
population. This provides the manufacturers with a bustling market. Though the taste of
individuals varies, manufacturer’s track the automobiles that sell fast and develop deigns
accordingly. In India there has been a noticed surge for vehicles that run on electricity or
batteries. The government as well as citizens are growing their concern to save the nature and
make it pollution free through various practices and methods, using electric automobiles being
one of the most important alternatives. It will not only reduce the consumption of fuels but also
lower the prices as compared to traditional cars. The increasing popularity for low-carbon
lifestyles and growing preferences of renewable energy can be beneficial for the company.

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While, the unequal distribution of wealth in the country as well as developing markets can be
challenging for Tesla (Sharma 2016).
Technological Factors
The continuous innovations in the field of technology is both a bliss and foe for Tesla. On
one hand it helps the company to maintain a competitive aspect and directs its way for usability
and sustainability in the future. On the other hand, the company must have to upgrade and update
in order to keep in pace with the constant advancing, developing and creating technologies in the
market. Hence, the high rate of technological alteration is both regarded as opportunity and threat
for Tesla. The government of India is ensuring help in the research and development of eco-
friendly automobile industry so that both the manufacturers and customers remain encouraged to
invest in this industry. Nowadays, everything has online facilities and services including the
automobile industry. With the help of the internet, Tesla can promote, spread awareness and
reach out to a wider range of people in the market (Liu et al 2014).
Legal Factors
In the latest expansion of the automobile industry in India, legal factors play a vital role.
The reason is that the industry is highly incentivized where investors are provided with direct
passes having 100% foreign investment. The government of India has motivated numerous
automobile companies to set up their business in the country by simplifying the legal norms.
Tesla must need to update itself on their global patents otherwise it consumes a lot of time. The
company can safely expand their business around the globe by expanding the international patent
protection (Wills 2014).
Environmental Factors
The environmental factors are the primary factors that are constantly influencing the
investors across the globe to manufacture environment friendly products. The most important