[solved] Week 9 Group Marketing Plan

  • Strategy Project: Work Plan for Week 10

    One member is to post the  team work plan for next Week 10 into your  group assignment folder by Thursday night .

  • W9 Group Marketing Plan



     Due November 12 at 11:59 PM

    .Strategy project: Marketing Plan (6% of course grade)






    Assignment overview: Marketing Management is the process of analyzing, planning, implementing, coordinating and controlling programs involved with  the 4 P's of Product conception, Pricing, Promotion and Placement (distribution) of products, services, and ideas.  The  purpose of the marketing strategy  is  to gain access to target markets and win market share.. In this assignment, you will develop a marketing plan to reach your  client 's target Buyer and win market share. Marketing is the function that generates revenue, so this is where you will estimate  the Revenue projections for your income statement. .

    Assignment Requirements/format.

    I. The Introduction to this paper (same as week 8)  should consist of (a) statement of purpose (b)  description of the company and its industry, (c) the  product/service that will be entered in the new country; (d) description of the target country and why it was recommended as better opportunity than the other country; the target Buyer and the size and growth of the target market 


    II. The body of this paper  (approximately 10 -15 pages,double spaced) will:

    • Describe the market size of each  target buyer segment in quantifiable units (number of buyers and/or  dollars)
      • Identify any further segmentation that may be needed to reach the best target or set of targets for  your client's product/service offering.
      • specify projected market growth of each segment over 3-5 years
    • Estimate your expected  market share as a percent of each target segment
      • explain the rationale for your estimates, considering the competitors and their market share, and your client's competitive position;
      • specify all assumptions you used in your estimation (e.g., about price, competitors' market share, new entrant threat), 
      • show  all your calculations so they can be readily verified


    • Pricing: Describe the pricing strategy (low  price leader? High priced luxury leader? Value pricing?)  How will the pricing strategy support market entry? Competitive positioning?  (You may have addressed pricing specifically in your competitive strategy in Week 6)
      • . Specify  the recommended sales price.


    • SUMMARIZE EXPECTED REVENUE  in a table showing
      • Sales price,
      • Market share in units or expected sales 
      • Projected growth in Revenue over 3-5 years


    • ESTIMATE THE ANNUAL COSTS  of each component of your marketing  plan ( product modifications;  promotion costs, distribution costs).  My section 
      • You have already identified the marketing/sales headcount in your organizational chart, but you still must show in each marketing component  who will do these marketing functions.  When you summarize your  marketing cost in the required table below,  note the headcount dollars that are already in the organizational chart so that you don't double count those dollars when the marketing costs are put into the income statement.
        • Note: The dollars for marketing headcount should be reflected on the organizational chart you developed last week.  If you identify any new headcount in this plan, go back and add it to your organization chart, so the people costs of your strategy will be clear and all in one organization chart..
      • For costs in each component, show  dollars separately for start -up costs, needed to prepare for market entry (e.g., establishing showrooms, designing websites, modifying the product, developing prototypes or samples) and for on-going operational costs to support the marketing function once revenue begins to flow ( e.g., continuing sales efforts; distribution of  your product/service). 


    • Product:  Are there any modifications needed to reach the buyers in this market segment(s)? This could be based on your previous country and competitor analyses, if certain Buyer preferences or competitive  opportunities or threats were identified (e.g, language modifications to the software you sell; size preferences for the cell phones you sell) .SUMMARIZE PRODUCT COSTS, including headcount and any other expenses. (note: product modifications will likely be all start up costs)
    • Promotion: State your recommended Promotion/Positioning with the target markets/segments, which you initially addressed in your Week 6 competitive strategy assignment. State what the promotional message will be to position your product/service  within each market segment, what kinds of promotional materials will be needed?.SUMMARIZE PROMOTION COSTS, including headcount and any other expenses. 
    •  Placement (distribution):  How will the buyers be reached?  Will you need a direct sales force? Online sales support? For a sales force, what kinds of incentives might you propose? For online sales, what kinds of back-office support would be needed for getting your product/service to the buyer? Consider both physical distribution/geographic spread and distribution of the message that must reach your target markets. What will be the promotional channel? The media used? SUMMARIZE DISTRIBUTION COSTS, including headcount and any other expenses. 
    • SUMMARIZE ALL MARKETING  COSTS in a  a table that aggregates all of the above components, with all costs identified as either start up or operational costs
      • Product modifications
      • Promotional materials
      • Distribution/Advertising costs
      • Headcount costs for all categories should note that these are already included in your organizational chart dollars. 

    III.  Include

    • Title page with name of every contributing member
    • Approximately a 2-3  page Executive Summary that summarizes the entire paper 
    • Table of contents
    • *The body of the paper should have page numbers, starting with page one.
    • Reference list, including proper APA format for all in-text citations.



    One member is to post the assignment in the Group Assignment folder by the end of week 9 and title it “Marketing Plan.”


    For now:  You have a corporate level  entry strategy, business level competitive strategy, and functional marketing plan.  You have estimated the market share (revenue) expected from this marketing strategy and the headcount and marketing costs of this plan.


    With  the completion of this assignment, you  have the information needed to abstract section 15 of the Business Plan Template.  Add section 15 to your Draft Business Plan, along with all feedback on previous assignments that has not yet been incorporated into your draft. Post the updated draft in your group locker. Next week, you will submit the full business plan with your week 10 financial assignment.


    Looking ahead:  You will next estimate  the remaining costs to implement your plan, including any  upfront capital investments  and other administrative/ operational expenses.  Next week's financial evaluation will tell the company whether the strategy you recommended is worth the costs!

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15-06-22 | 04:26:09

Market Segmentation
The electric vehicle market is largely shaped by a lower tier, short range vehicles like the
Renault Twizy. The Twizy is a two-seat small all-electric passenger vehicle that retails for under
$10,000. Tesla does not figure to penetrate this low cost market that is relatively untested
despite early promising sales in the summer of 2017. Rather there is a larger mid-tier passenger
sedan market of electric vehicles retailing in the $30,000 to $40,000 range with varying degrees
of performance. The Model 3 figures to directly compete in this emerging segment across
import and domestic electric vehicles. The Model S and Model X figure to compete in the larger
luxury import vehicle segments; more specifically the luxury sedan and luxury SUV sub-
Market Segment Definitions and Growth Projections
The majority of the electric vehicle competition is in the mid-tier level, but also an
emerging single and two-seat passenger vehicles for short trips. Tesla transcends the electric-
vehicle market with its high performing luxury sedan and SUV that will look to maximize on
two growing markets. The total passenger vehicle market for South Korea has seen steady
growth over the last decade. From 2004 to 2017, South Korea average 3.90% year-over-year
growth with 1.1M to 1.8M care sales or a 63.4% total growth in 13 years. If Korea continues the
average growth, the total market will expand to over 2.2M sales by 2023. The import market
segment has grown from a market share of 2.09% in 2004 to 12.89% in 2017 and a total market
growth of 891%. The average growth in market share over the last 13 years is 16.04%.
However, over the last five years the growth in market share has slowed to 9.13%. For
projections in further growth through 2023, the group calculated half of the 13-year market share
growth, or 8.02%.

A closer look at the specific segments reveal a potentially higher ceiling of market
penetration for Tesla. Approximately 71% of the import market is luxury vehicles that the
higher end Tesla models figure to compete well against. Furthermore, the current market leader,
Mercedes Benz owns 31% of the total import market followed by BMW with 24% of the market.
Of the luxury import market, 76% is made up of sedans and 24% to SUVs. The estimated mid-
tier all-electric vehicle market is expected to hit 25,000 by the end of the year or 1.4% of the
total market. According to the Global Electric Vehicle Outlook 2017, this could total 250,000
vehicles or 12.4% market share. Conservatively, if the market share doubles by 2023 or 25% the
electrical vehicle sales could top 546K.

South Korea Automotive Total and Import Sales & Projections

Import SalesTotal SalesProject Import SalesProjected Total Sales
Figure 1. South Korea Automotive (Total and Import) Sales and Projections
Tesla’s Market Position Projections
Tesla currently holds several key competitive advantages that could indicate significant
market penetration across both key segments. Tesla currently offers fully autonomous
operations that is unrivaled by any competitor across domestic and import vehicles sold in South

Korea. All automotive manufacturers are heavily invested in autonomous vehicle operations, but
are years away from fielding full autonomy. Tesla will need to continue to press innovation to
stay ahead of competitors. In the luxury and performance segments, Tesla significantly
outperforms its competitors. The market share leader in import luxury vehicles is Mercedes
Benz and is the closest in competition. The Mercedes-Benz GLE 550e is the closest competitor
to the Model X, and the AMG E63 S is the nearest competitor to the Model S P100D. The
Model X has some critical advantages in performance and technology. The Model X has a range
of 237 to 295 miles on a single charge, whereas the GLE 550e offers 50 MPGe; thus, requiring a
full routing fuel load. Additionally, The Model X narrowly beats the GLE 550e in acceleration
at 4.9 seconds versus 5.2 seconds; the P100D increases the acceleration to 2.9 seconds. A core
competitive advantage across all comparisons is Tesla’s ability to be over-the-air upgraded;
offering new features and capabilities through software upgrades. All Tesla models provide full
autonomous driving capabilities that are a clear distinguishable competitive advantage to all
other car companies. Finally, the Mercedes-Benz AMG E63 S is one of the highest performing
vehicles on the market and directly competes with the Tesla Model S P100D. However, the
Model S proved too much for the AMG E63 S during a Top Gear comparison at a drag strip,
where the Model S beat the AMG E63 S by at least a half second at every driving interval and
exceeded its top speed threshold (Marriage, 2017). Additionally, the Model S would likely have
a cost advantage depending on options over the AMG E63 S due to the generous Korean tax
The mid-tier all-electric vehicles have several key competitors with vehicles in the
market today. While all are poised for significant increase in sales with the exploding market,
none can compete with the Tesla Model 3 in single-charge range and acceleration performance.

Several offer assisted driving automation systems that offer lane drift awareness and automated
braking options; none offer fully autonomous operations nor over-the-air upgrades. The closet
competition is the Chevrolet Bolt, a vehicle in which has sold 416 units in under 6 months and is
on track for a 2.5% market share in this mid-tier all electric vehicle segment. The Model 3 has a
lower starting base price of $35,000 versus $37,500 with a 5.6 second 0-60 mph time on the base
model versus 6.5 seconds on the Bolt. An important consideration is the Model 3 can be
substantially upgraded from its base model to increase battery capacity to 310 miles on a single
charge, improve acceleration to 5.1 seconds and full autonomous operations.
Table 1. Mid-Tier All-Electric Vehicles
Manufacturer Single


Base Price Jan-Sep 2017
Sales (South

Tesla Model 3 220-
5.1-5.6 Yes (Full-

$35,000 N/A+


84 7.6 ADAS $39,900 345
RSM SM3 ZE 83 8.0 (est.) ADAS $37,000 5379*
Chevrolet Bolt 234 6.5 ADAS $37,500 416
BMW i3 111 6.6 ADAS $43,000 102
Nissan Leaf 107 8.8 ADAS $31,565 47
Hyundai Ioniq EV 124 8.0 ADAS $29,500 8863*
Kia Soul EV 93 9.7 ADAS $33,950 1924*
Note: Data pulled from manufacturer websites. + Tesla Models not officially reported in South
Korean auto sales data as of 29 Oct 17. *Indicates total sales across all models.

Tesla Projected Sales and Revenues
The Model S and Model X figure to offer South Koreans an attractive high performance
option that outperforms electric vehicle in terms of acceleration, single charge rates and
advanced technological options. Tesla has yet to fully roll out the Model 3 and has only had
limited market deployment of its Model S and Model X to compare market share penetration

rates. Despite significant domestic competition in China, Tesla has raised its market share from
2.1% in 2016 to 5.1% in 2017 (Global EV Outlook 2017, 2017) . This market share is poised to
significantly increase as Tesla has announced an agreement to produce Teslas in Shanghai. This
success is despite a 25% tariff levied in their vehicles. Using a similar, yet more conservative
rate of 1.5% market share of import luxury sedan and import luxury SUV for the Model S and
Model X in 2018. If market share acquisition occurred at an additional 1.5% per year they
would reach 9% by 2023. Deeper market penetration is held back by the higher prices of the
Tesla in comparison to its competition and could be at risk should South Korea reverse
government incentives. However, Tesla is already taking proactive measures by reducing their
prices as they gain efficiencies (Etherington, 2017) .
The Model 3 is better positioned to make deeper penetration into the mid-tier all-electric
segment due to its competitive pricing and marked competitive advantages. The Model 3 at full
production capacity is well positioned to enter with a 3% market share in 2018 and growing to
10% by 2023. The sales numbers dramatically increase to coincide with the expansion of the all-
electric vehicle market. The group predicts that with the emerging market, more options will
emerge in the electric vehicle market at the low end and luxury models and computed a 75%
market share of the mid-tier electric vehicle market segment. This results in real sales of the
Model 3 from 1129 in 2018 to 42,340 by 2023. Finally, with sales of 2102 of the Model S in
2018 and growing to over 22,000 by 2023 and the Model X growing from 664 to 7091, Tesla
could expect revenues starting $307M in 2018 to $4.5B in 2023.



Projected Tesla Revenue Growth

Figure 2. Projected Tesla Revenue Growth

Etherington, D. (2017, August 5). Tesla lowers Model X base price due to improved margins.
Retrieved from TechCrunch:
(2017). Global EV Outlook 2017. Paris: International Energy Agency. Retrieved from
Monthly Sales by Maker/Brand in Korea. (2017). Retrieved October 29, 2017, from MarkLines:
Automotive Industry Portal:
Marriage, O. (2017, October 14). Tesla Model S and Merc-AMG E63 vs the stopwatch. Retrieved
from BBC: Top Gear:

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