Marketing and Customer Engagement Price of Tesla Model

Question: Describe about the Marketing and Customer Engagement for Price of Tesla Model. Answer: Marketing Plan Assessment: Tesla Model 3 Tesla Motors is an established brand name in the market of electronic vehicle and is known to be a leader in innovation. The brand Tesla is not widely known in Singapore and very few citizens of the country know about it. The price of Tesla Model 3 cost about US$ 35,000 and based on the exchange rate of Singapore Dollars, it would be around S$47,000 as the base price (Tesla.com, 2016). Including the taxes like GST, excise duty and additional registration fee, the car would cost about S$ 118,000 in Singapore. No dealer of Tesla has been assumed to be in Singapore while estimating the price of the car and including one would further raise the tag to up to S$ 135,000, including the dealer margin (Channel NewsAsia.com, 2016). Considering these factors, this assignment aims to design a marketing plan for Tesla Model 3 to be launched in Singapore and a SWOT analysis will be performed for the same. Customer Behavior Analysis Considering our stringent budget of $ 50,000, we will begin with the customer behavior analysis as it plays a pivotal role in determining the future of the car in the market. Although Tesla 3 has been declared as an affordable model by the makers, considering its appearance price in Singapore, it can be called a luxury car in the market as the price is in alignment with the Mercedes-Benz A-Class vehicles. Therefore, the consumer behavior for luxury cars in Singapore is important as they not only buy a symbol of social status, but also the unparalleled experience of ownership that is unavailable for the car buyers of the mass market (Winter Heil, 2016). The segment of the luxury car market in Singapore is increasing with the increasing affordability of the financing options and the people getting richer. Luxury cars are getting within reach of many who desired to own a luxury car since a long time. Existing users of luxury cars have to be considered as after the launch of the model, many will be switching brands as it will be easy without much entrenchment of the loyalties (Atwal, 2014). The global car market is indicative of the fact that the overall experience of the user matters the most and the service enjoyed by him should be personalized and truly different for recognizing him for the social status that is enjoyed by him. Therefore, while designing the marketing plan, the customer satisfaction aspect has to be considered that includes user-friendly options for the internet buyers. Considering the CEVS (Carbon Emissions Vehicle Scheme), Tesla 3 is an energy efficient and environment-friendly vehicle and is entitled to a maximum discount of S$30,000 (Woo, 2015). That does not significantly change its segment of luxury cars but makes it a bit more affordable for the ones, who desire to own a luxury car with the assistance of financial schemes. 93% of the consumers of the luxury cars in Singapore choose to finance their automobile with the confidence of their sustained power of earning in future. This trend of the customer behavior can widen the market for Tesla 3 is alignment with the government policy for the rebate (Melo, Beng Massier, 2014). The consumers of luxury cars in Singapore has to pay a heavy deal for the registration and excise duties that extends up to 150% of the market value of the vehicle. In addition, the government policies like COE (Certificates of Entitlement) tend to increase the car price to about S$ 30,000 higher (Lta.gov.sg, 2016). Considering 95% of the Singaporean families are middle class, the marketing plan should aim at including them as well apart from the richer families to extend the market of Tesla 3 by giving out easy financial assistance in the form of loans and easy monthly installments. The buyers of luxury cars look out for the special needs and essential commodities in the vehicle (Chow Dula, 2015). While some look out for the essentials like horse power, acceleration rate and maximum speed, others look out for the special need like the brand or the country of origin of the brand. Tesla 3 will be able to satisfy both the types of consumers in Singapore as ranked 5 globally in the car brand and is an impressive feat owing to its product quality and marketing strategies. This factor will help to smooth the launch of Tesla 3 as many of the potential consumers would be ready to spend a few extra dollars for owning a world class product in Singapore. SWOT Analysis SWOT analysis is a structured planning method used for evaluating the four elements of a business venture or a project. The four elements include strengths, threats, opportunities and weaknesses and it is carried out for a person, industry, product, place or a company (Kwok et al., 2013). The SWOT analysis of Tesla 3 in Singapore will provide a visual overview of the situation and strength of the market regulation of luxury cars in Singapore prior to the launch of the vehicle. Table 1: SWOT analysis of Singapore market regulation of luxury cars Strengths Low political violence and terrorism Easy for starting new business Stronger ability of consumption Good environment of business Weaknesses Limited island size Frequent involvement of government Global orientation Opportunities Tourism favoring country Foreign expansion and emerging markets Cheaper business costs Increased lands Threats Multi lingual nation Rising levels of sea Incomplete supply chai Strengths Singapore is a country with a peaceful political environment without any threat of wars. Tesla can easily launch its model 3 in such an environment and focus on the investment for the growth of the business. The per capita income of the country is increasing and this can aid to robe in the middle-class people in the luxury cars segment, thereby increasing the market for the car. The regulations for starting a new business in Singapore are easy and the registration can be done online (Sundarakani, De Souza Goh, 2012). Singapore belongs to the category of high income and ranked high in the business topics which is a facilitator for the sales profile of Tesla 3. Weaknesses Since the island of Singapore is small, the market for Tesla is also restricted. The government of Singapore poses constant intervention which is harmful to the business investments and hampers the market by imposing strict procedures and regulations for conducting business. Since the economic growth of the country is export oriented, therefore, the market of Tesla will be fluctuated by the global business environmental changes (Sundarakani, De Souza Goh, 2012). The economic growth might get reversed if the developed nations are severely affected and this may consecutively affect the business of Tesla 3. Opportunities Since Singapore is a tourism based country, buyers can be expected from foreign countries as well apart from the advertisement opportunities. Business changes and areas are increasing in Singapore which will increase the marketing opportunities of Tesla in the country. The business cost in the country is cheaper when compared to the other neighboring countries and this will add to the profit margin of the company (Sundarakani, De Souza Goh, 2012). Resolving the disputes of land with Indonesia and Malaysia will increase the territory of Singapore and therefore, increase the market of Tesla 3. Threats Since Singapore has four different official languages, therefore the marketing of Tesla 3 has to be done in four different languages to attract customers from all segments or else they will get ignored. The sea level is rising globally and this will perish many of the islands and make them useless (Sundarakani, De Souza Goh, 2012). This will further decrease the land resources which are already limited and reduce the market for Tesla 3. The supply chain of Singapore is not fully developed and the parts for Tesla 3 has to be imported for after sales service as the country is dependent on import of the raw materials instead of manufacturing. This will affect the profit margin of the company in the long run. With a stringent budget, the preferred market plan can be online and media marketing. Prior to the marketing, a survey can be conducted to know about the potential customers for Tesla 3 and help for the advertisement of the car. The environmental friendly policy of the government will further help in the promotion of the electric vehicle in the island country. References Atwal, G. (2014).Luxury brands in emerging markets. Springer. Certificate of Entitlement (COE) | Vehicle Quota System | Owning a Vehicle | Roads Motoring | Land Transport Authority. (2016).Lta.gov.sg. 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