This case analysis is designed to encourage you to evaluate the pricing and promotion strategies for...

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This case analysis is designed to encourage you to evaluate thepricing and promotion strategies for Tesla Motors, the Californiabased company. The company designs, manufactures, and sellselectric cars and electric vehicle powertrain components. Thecompany also provides services for the development of electricpowertrain systems and components and markets its vehicles throughTesla stores and over the Internet. The company has 80 stores andgalleries in North America, Europe, and Asia. Currently, TeslaMotors is planning to go into Indian market.
Imagine you havebeen hired as a consultant to the VP of Worldwide Sales and Servicefor Tesla Motors Mr. Jerome Guillen. The VP wants to get anobjective opinion from someone outside the company who is familiarwith international marketing basics.
Your job is to writea 1- to 3-page memo (single spaced) critically analyzing Tesla'spromotion and pricing strategy for Tesla Model 3 if the companyintroduces this model into the market in India. Take intoconsideration the current promotion and pricing tactics used by thecompany in the United States. Make sure to address the followingissues:
Evaluate if the current promotion strategies employed byTesla Motors in the United States should be adapted to meet marketneeds in India. If so, how? If not, why not?
Assess if the current pricing strategies employed by TeslaMotors in the United States should be adapted to meet market needsin India. If so, how? If not, why not?
What key challenges would Tesla Motors face in Indiacompared with its experience in China? Propose creative strategiesto tackle these challenges in India.
Do you think the Tesla Model 3 would help Tesla successfullyenter the Indian market? Explain your position.

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3.8 Ratings (405 Votes)

It is an intelligent decision to make a foray into the Indian market for Electrical cars by Tesla as the market is supposed to bro at an exceptional 37 in the coming years This exceptional growth rate is expected due to numerous initiatives undertaken by the government by offering incentives to encourage use of more environmental friendly means of transportation since air pollution is a major concern in India especially in all the important cities The use of electrical vehicles in India is growing fast but it has moved in a direction quite opposite from the United States as the beginning was from the bottom level including two wheelers and three wheelers and is gradually ramping up to affordable family cars Since Tesla 3 is aimed exactly at this segment of consumers the response from India for the product should definitely be encouraging However the market is currently in the nascent stage with consumers not really confident about the life and durability of electric cars and also the availability of the support system it would require for charging As the United States and India are two entirely different markets economically and culturally the promotional strategy required for India cannot be a standard adoption and needs to be modified to meet the See Answer

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