GLOBAL BUSINESS PLAN PROJECT

In this course, you will be required to complete a group project in order to gain hands-on experience in

the development of international marketing strategies. Groups will work on a group project constructing

an international marketing strategy to penetrate a self-choice target country. The purpose of this project

is to analyze the foreign market for a company Tesla Inc., a leading automotive company specializes in

the manufacture, design, development of electric vehicles. While Tesla Inc. is looking to expand

their electric car sales internationally, your job is to develop a global marketing plan for this company.

You can choose any foreign country to enter, but please be aware that your target country should not

currently have Tesla, Inc.’s operation. You will be introduced to this company and the project as the

semester progresses.

and we picked Brazil….country for our research .

THIS IS GROUP research project

Here are the required components for this project.

segmentation, Targeting, Positioning Strategy

-Segmentation methods

-Criteria for targeting: Current size of the segment and growth potential, potential

competition, compatibility and feasibility

-Target market strategy

-Product positioning, adaptation or standardization policy

my group member did this part.. which is segmentation method, criteria for targeting.Current size of the segment and growth potential, potential competition, compatibility and feasibility…(u don’t need to do this part)..

Requirements = well my part is to do complete research of

–Target market strategy (of Tesla in Brazil)

-Product positioning, adaptation or standardization policy(of Tesla in Brazil)

I need you to do research, cite use credible sources and put references

requirement 4.5 page (if any confusion/question regarding this then please inform me asap )

my group member did the below research part with all the bold letters

you should link this below research information in my part which is Target market strategy

-Product positioning, adaptation or standardization policy

Segmentation methods:

In order for Tesla to succeed in Brazil they must first decide which market to target. They will do this using segmentation to help decide which market best fits their business goals and ideas. Tesla should use segmentation in order to narrow down the population into more manageable groups. Tesla does fit in the luxury vehicle category, but it also has multiple appeals outside of just that category, the main one being it’s sustainability. While segmenting Brazil for Tesla, it was decided that a mixture of different strategies would be the most beneficial, focusing on demographics and benefit segmentation.

Demographic segmentation was chosen because it was the most effective to define the brazilian luxury consumer segment. Lorenzo Ruggerio presented data from Mckinsey & Company that gave insight into the most desirables demographic groups for luxury products. A study done by Mckinsey & Company reveals that 53% of luxury consumers in Brazil live in São Paulo (McKinsey & Company, 2012). Alini Teiking presented statistics from Diniz stating that about 60% of luxury consumers are between 40-64 in age (Diniz, 2014). This data is instrumental to the targeting and segmenting process and helps to narrow down the segments. At this point, Tesla could segment Brazil’s consumers by age, and location, focusing on ages 40-64 who live in São Paulo.

While with luxury vehicles it would usually make sense to also use income levels as a segmentation tool, this was not a viable option due to two main factors. The first reason is the lack of data and statistics available for Brazilian consumers – the inadequate amount of credible and up-to-date demographic reports for the country meant that a current and accurate income segmentation would be near impossible. The second reason is because of the popularity of loans in Brazil, it has been reported that 70% of luxury sales are completed using credit card installments (Mazzo, 2014). This allows a wide range of income levels to purchase luxury vehicles and again wouldn’t be reflected using an income segmentation method.

Benefit segmentation was chosen because of Tesla’s unique brand and appeal. Tesla has done a great job in the past few years at positioning itself as a symbol of status, environmentalism, and being ahead of the trend. Purchasing a Tesla is more expensive than purchasing the average automobile, which typically shows the owner has a certain status with the purchase. Popular culture has also given Tesla a superior status with creators like David Dobrik using the vehicle as a symbol of their success. Tesla’s status as an electric vehicle attracts individuals who value sustainability or the appearance of sustainability. Aline Teiking found that Brazilan luxury consumers main motivation to buy luxury items is a social one, in order to improve reputation and show their own status (Teiking, 2016). The already segmented market can now be broken down into more focused groups based on what priorities they might have. Breaking down the market into smaller sections will help to identify segments. For example, the segments could be broken up into groups A, B, C, and D. Group A consists of those individuals wanting a flashy vehicle that also shows they care about the environment. They are most likely newer money, or a public figure that feels the need to flaunt their money and values with this purchase. The younger members of Group A typically will use their purchases as a symbol of status and exclusivity. Group B are wealthier individuals, who have disposable income, and don’t put much thought into purchases. They would benefit from the status symbol that Tesla holds in Brazil. Group C are environmentally conscious consumers or activists who would try to go minimal or zero waste and probably compost food. They might be off the grid and don’t really follow trends and they might live in a more rural area. This also might include some individuals who are “green by necessity”. These consumers would be attracted to Tesla because it is an electric vehicle company. Group D consists of consumers not heavily influenced by sustainability or status and don’t have much disposable income.

After segmenting the Brazilian market, it was decided to target individuals aged 40-64 who live in Sao Paulo and belong to Group A. Group A was further examined for its size and growth potential. According to the Atlas of Human Development in Brazil, individuals age 40 – 64 make up 23.75% of the residents living in Sao Paulo. In order to segment the market further, it was concluded to expand the age range to not be so restrictive. Alina Teiking presented data which only focuses on Rio de Janeiro. Because of the similarities between Sao Paulo and Rio de Janeiro, it can be assumed that the data found during the study can still be applicable. Data was used to create a new age range of 35 – 54, which was found to be the most likely age group to buy luxury goods (Teiking, 2016). This age range has a larger potential to grow as Sao Paulo and Rio de Janeiro are known to have younger populations. In 2010, 41.78% of Sao Paulo’s population was under the age of 25, and if there were no changes in population from 2010 – 2019, 33.65% of Sao Paulo would be aged 35-54 today based on the available data (Atlas Brazil, 2010). This data shows that the target market has good growth potential and is large enough to help Tesla generate profits.

Now that the target market has been identified, possible competitors for Tesla must be addressed. BMW is one of the biggest competitors in the luxury car sector as it ranked the highest out of luxury vehicles on The Brazil Sales Satisfaction Index Study (The Financial, 2019), and sold 1307 units in 2014 (Possato, 2015). There are reports that BMW is questioning its operation in Brazil, and as reported by Leonardo Lara, the company seems to be frustrated by the lack of structure and direction the government has given (Lara, 2018). While the validity of the situation is questionable, Tesla should still use the information to their advantage when considering entering Brazil.