Week 8 Team Assignment – Final Paper
February 21, 2015
Marketing strategy: Denmark
Based on Hofstede cultural dimensional analysis for Tesla, a high end premium automobile, it would require a higher individualism score. (The Hofstede Center, 2015). Moreover, based on the second dimension, power distance, Tesla’s main customers should be those wealthy individuals in Denmark with a vast amount of income that have a significant contribution to the society. (Hofstede Center, 2015). Thereafter, based on the third dimension, masculinity, Tesla would target the male audience that are driven by ambition and competition. (Johansson, 2012) Finally, by analyzing the last ...view middle of the document...
For instance, a partnership with a famous rock band Kashmir, famous actress Connie Nielsen and well-known actor Viggo Mortensen would help promote Tesla Motors. (Famous Natives, n.d.) Moroever, such partnerships could be a stepping stone into a television ad, magazine/newspaper articles, famous rock band events (held throughout the year in Denmark), etc. Such techniques would help drive brand marketing and loyalty campaign for Tesla.
Apparently, in order to be sensitive to local Denmark needs, all marketing campaigns should be in the local Danish language, including television ads, magazine/newspaper articles, etc. Such tactic is essential to really target the wealthy Danish population. All such schemes are vital to promote brand loyalty for Tesla Motors.
As we approach the marketing campaign kick-off time, it is necessary to hire a local Danish Manager to handle the campaign. Such a manager would be responsible and accountable for all aspects of communication and coordinating the event. Prior to the event, it is important to physically be present in planning the entire event with an official time and date that works around the Danish curfew. (Griffith, 2012)
Adaptation strategy: Denmark
Some of the challenges facing Tesla are: cost of lithium will increase, dealing with competitors making similar automobiles and selling its automobile in the mass market.
Cost of lithium will increase
Tesla Motors is anticipated to invest a lot of money in the billions range on an upcoming factory that makes just batteries. Accordingly, such a strategic move could help increase Tesla’s car production from 35,000 to approximately 500,000. However, a big challenge that Tesla may run into is the increased demand for lithium. Consequently, it is essential for Tesla to utilize alternative forms of technology, and not be completely reliant on a car-battery solution. Based on such a potential unforeseen dilemma, Tesla should invest in a research and development project exploring alternative ways to utilize other resources that fuel a car not compromising fuel economy or overall cost of the car, such as natural gas (CNG), biodiesel, etc. (Bedigian, 2014)
Dealing with competitors making similar automobiles
Tesla could be facing a fierce competition in Denmark from BMW, Mercedes, Audi and Nissan in trying to compete with an equivalent level car as the Tesla. Consequently, Tesla Motors should continue heavy investment in their research and development labs by constantly finding ways to innovate and improve the Tesla automobile while keeping costs down. For instance, increase fuel economy, alternate fuels, etc.
Selling its Automobile in the mass market
Currently, Tesla is strategically targeting the wealthy as the current Tesla models are premium high-end cars that only the wealthy could afford. Consequently, in order to gain profitability and beat its main competitor Nissan Leaf, Tesla should consider a slightly lower end model to compete with...