Braley_International2015

Running head: TESLA INTERNATIONAL MARKETING PLAN (PROJECT 2) 1
An International Sales and Marketing Plan for Tesla Motors
Diana Ingle Braley
Westwood College Online Campus

TESLA INTERNATIONAL MARKETING PLAN (PROJECT 2) 2
Abstract
In this paper we will take a look at any trade agreements, regulations or hindrances which
Tesla may face in bringing their famous electric cars to the market in the Caribbean. We will look
at the capabilities for building electric car stations for recharging, regulations for this and
whether it would be lucrative or beneficial to bring this kind of product to the Caribbean. We will
also look at size, demographics and psychographic profiles of consumers who may be our target
market among the expatriates and locals of the islands.
Additionally we will do a SWOT analysis of Tesla in relation to the Caribbean market,
we will also take a look at Tesla as a company in general and also perform a situational analysis
of the company in their US market and also their market in Europe. How does each customer
differ from one continent to the next, and what kind of economic conditions will be ideal for this
brand and product to be available in the Caribbean.

Cultural Elements and Impact on Marketing
In order to understand the culture of the Caribbean and specific island of the Caribbean
like Jamaica or Barbados, one must understand it’s history. According to author Joyce Toney of
New York.org (2015) since colonial times the Caribbean has been a diaspora of many cultures
combined, primarily European, African, Asian and the native peoples of the Caribbean islands.
From this rich multi- cultural heritage comes the ability to retain their distinctive cultures but
also the ability to interact with outside cultures and meld their own culture to fit the needs of
those doing business there or just visiting there. This is apparent from the billion dollar industry
of tourism which flourishes in the Caribbean today.
After independence was achieved for most of the islands from their colonial settlers in
Europe, in the 1960’s there were several agreements achieved between some of the Caribbean
islands to bolster their common cultures and economies, by working together as a group of small
island nations, most notably the Caribbean Free Trade Agreement (CAFTA) in 1967, and the
Caribbean Community and Common Market established in 1972. Both these agreements sought
to unify the island nations to help them grow and prosper within the Caribbean. Member nations
include:
“ Antigua and Barbuda, the Bahamas (a member of the Community but not the Common
Market), Barbados, Belize, Dominica, Grenada, Guyana, Jamaica, Montserrat, St. Kitts and Nevis, St.
Lucia, St. Vincent and the Grenadines, and Trinidad and Tobago. Associate members of CARICOM are
Anguilla, Bermuda, British Virgin Islands, Cayman Islands, and the Turks and Caicos Islands (New
York.Org, June 14, 2015).”
These member nations seek to promote an economic integration between nations through
a common market and common trade agreements. It also includes “functional cooperation
(pooling resources and sharing services), and coordination of foreign policies” (2015).

Islands such as Jamaica have welcomed US enterprises to do business on the island –
with approximately 6.97 billion in US investments being invested over the span of the last 10
years. According to the US Embassy, Jamaica WI (2015) face to face networking is particularly
favored by Jamaican business people, who want to build relationships for the long term than do
any kind of business over the phone or over the internet. The culture of Jamaica favors informal,
face to face meetings over a period of time to get to know their business partners, or those who
will be doing business in their island- additionally Jamaica has one of the highest rating when it
comes on to the “ease of establishing licenses and incorporation of a business” among islands of
the Caribbean- they make it easy and less of a hassle to establish a business as compared to other
islands of the region. Consumers in Jamaica are traditional consumers who are very brand loyal
to those which have been around for many years, establishing a new brand identity can be hard if
not done in the right way. If the product or brand brings a new technology, new service or a
product that has never been seen before- Jamaicans will be open to this. However some of their
traditional imports such as Milo, Kellogg’s and the Toyota- have been around for at least 30
years and it is hard to penetrate a market where most consumers buy based on word of mouth
and are not as open to advertisers changing their minds.

Affordability is also of high value to those on the island, the per capita GDP of the island
is 522,000 Jamaican Dollars which equates to 4,350 US dollars (Jampro Online, June 14, 2015).
The GDP of the island is very low, with services being produced at 74% of GDP and products at
23% of GDP. This is a service driven economy and most products are imported, with this
knowledge a great marketing strategy could help in creating a viable avenue to doing business on
the island both for their local consumers and the 6.2 billion JA dollars - revenue gained from
visitors to the island.
Marketing Research Sources
Secondary Research Sources:
Some of the major research sources which come from a secondary source such as a website, data
gathering service or government entity for finding marketing and business information in
Jamaica includes – The World Bank Group (WBG Online, 2015) which according to their site
offers information on population, per capita economic index, ratings for the ease of doing
business in the region, getting permits, paying taxes and accessing utilities such as electricity and
water. This site is offered to business developers/companies interested in starting businesses in
the region.

Another website to gather both marketing data, economic conditions and data on the most
promising industries in the region is at Export.Gov (2015) a US government website which gives
information about business, marketing and demographics of the region.
A couple of major sites for finding data, are Hoovers.Com and Hourly Nerd Online (2015), both
of these websites enable a researcher to find out company information and profitability of
companies all over the world, while Hourly Nerd is a marketing research firm which will gather
the data needed by a company.
I would also think about local newspaper publications to research attitudes on environmental
issues and the popularity of certain cars. Finally gathering information from rental agencies, and
car dealerships.
Primary Research Strategy:
In the following chart a strategy on how to go about gathering necessary data for the Tesla Car in
Jamaica:

With both primary and secondary research being done by a marketer in this way, a strategy on
where, how and when a car such as the Tesla should be introduced into that country.
Demographics of Jamaica
According to The United Nations Population Fund (2015) the total population residing in
Jamaica is 2.4 million people, with the following breakdown among citizens of the island nation:
 95% of the population; male and female have completed at least 6 years of education.
 78% having completed a secondary school.
 The purchasing power per capita in Jamaica is 9,000 US dollars (average)
 Average salary of a worker in the hotel or services industry is 7,000 (PayScale.om, 2015).
 Average salary of educated professionals there is 35- 60, 000 (2015).
 The highest paying worker averaging 84,000 for an IT tech manager.
Online Survey
sent to car
buyers in
Jamaica
(client list
purchased)
In person
interviews
with
drivers
Find a
focus
group - to
do
telephone
interviews
with.
Questionnaire
sent to car
drivers and rental
car companies
Test Driving
with a few
cars offered at
car
distributors in
Jamaica -
questionnaire.

 Tourism hotel CEO’s also earn comparative earnings to US hotel executives at 45,000 –
100,000 or more
In Jamaica the population can be divided into 5 main categories including:
1. Working poor, service or freelance workers who may earn around 9,000 per year.
2. Middle class professionals earning anywhere from 20,000 – 45,000 per year
3. Wealthy professionals who earn anywhere from 50,000 US dollars to over 100,000 per
year
4. Very wealthy, which include the owner and CEO of Sandals Resort, whose net worth as
of 2015 is over 1billion US dollars
5. Foreign expatriates with retirement or accumulated wealth, .6% of the population
(100,000 expats)
Within these demographics and characteristics, there is a cultural awareness of using healthy,
natural and environmentally products among the expatriates and wealthier demographic. This
can be seen by the popularity of what is called “Ital” products which gets its name from the Rasta
culture but which widely spills its ideas over into popular culture. The more natural and more
earth conscious consumers are the better the earth will be (Eat Jamaican, 2015).
The word is derived from the original root word vital- which to Rasta’s in the region means
sustaining health and vitality with certain kinds of rich and complex foods, with an emphasis on
natural and earthy. The word has expanded beyond food to products and lifestyles. So in this
sense an electric car brought in, with an average price point of 20,000 – 35,000 could be a
competitive alternative to other luxury cars brought to the island. BMW, Toyota being the top
two cars being imported for consumption.

Model 3 Adaptation for Jamaica
As reported by Nations Encyclopedia Online (2015) Jamaica has infrastructure which directly
supports the sales of the Tesla Model 3 and any product adaptations based on needs and
preferences in the Caribbean. According to the site (Nations Encyclopedia, 2015) the electrical
infrastructure of the island is quite stable with 652.2 kilowatts of power delivered to the island by
the Jamaica Public Service (JPS). Tesla has invested in the development of freestanding
electrical power stations which are self -sustaining and which can be set up in remote locations.
With this kind of capability – the car will be a practical alternative to the gas powered cars
already in use. Gasoline prices are a very high commodity at this time being priced at 473.46 JA
dollars which equals roughly 4.00 US dollars per gallon (Numbeo Online, 2015). Because
Jamaica has no natural oil reserves 100% of oil is imported for gasoline- this is definitely an
expensive and heavy burden for the country which consumes gasoline both for electricity and
cars. The development of solar powered energy stations which generate electricity to power the
Tesla Model S or Model 3 – will be the ideal way to go.
Both fuel generation and solar generation of electricity will be deemed acceptable by the
Jamaican government to develop at least 3 stations on the island. Since each Tesla Model 3
achieves 97 miles per gallon on average there is no need to recharge on a constant basis (Tesla
Online, 2015).
The adaptation for this Model 3 will be the ability to be priced well below the current asking
price in the US of 35,000. The newer Model 3-A will be developed for the Caribbean and
developing countries at a cost of 20,000 with fewer features, basic electric power engines, and
available in 3 colors only. These models will come in standard shifts, power brakes, and a

smaller body contour- seating about 5 passengers. This model will be comparable to the Toyota
Prius.
Since smaller cars are more popular on the island creating a smaller version of the Model 3
called the Model 3-A to be unveiled in a promotional car show and working with two of the
major car dealerships on the island – Crichton Automotive and New Line Motors. Both carry
standard model Toyotas and BMW’s (Top 5 Jamaica, 2015). Tesla will be entering a joint-
venture contract with these two dealerships until a free standing store will be built in late 2018.
Marketing Mix for Tesla – Model 3
Product:
The product chosen for this international expansion of business for Tesla Motors is the Model 3-
A designed specifically for the Caribbean and developing countries.
The current Model 3 being developed by Tesla Motor Car Company is a mid-size vehicle which
is being developed for the general public and will only cost 35,000 for the consumer (Forbes
Magazine, July 12, 2015). This new model will be able to travel 200 miles on one full tank and
charge- there is also a model being developed which is 80% the size of the S Model which will
be able to travel 300 miles on the same energy consumption.
The Model 3-A Caribbean version will have all the great benefits, handling, torque and power as
the Tesla X or Tesla 3 but will come in at half the price- this will be a viable option for the
Caribbean market. We are expecting to price this version at 20,000 – 35,000 dollars.
The company will produce a variety of colors, variety of styles and interiors and there will be 1
charging station built by the time the first model is sold on the island of Jamaica. The test market
will be in Jamaica for 3 years to see how successful this brand can be there.

Price:
There will be two price points available based on a cost-plus method of pricing. They will be
25,000 to 35,000. With additional options being available for consumers who can afford the ad-
ons. Additionally – finance banks such as Barclays of London and Jamaica Bank are the main car
loan sources on the island. Money will be converted to US dollars upon receipt from the banks.
The Jamaican value of each car will be 2.28 million JA dollars – 3.99 million JA dollars (rate of
114.00 to 1 US dollar).
Promotion:
Main promotions will be a co-branding with Auto-Dealers of Jamaica- a family owned car
dealership with over 50 years established business on the island. There will be newspaper ads,
internet announcements and TV ads which show the new model 3 and all its many benefits.
Place/Distribution:
Our channel of distribution will be through a third party retailer where a 35% commission will be
paid to the dealership for each car sold. We are expecting to build our own freestanding store and
factory by the year 2018 as permits and licenses for building have been recently approved by the
Minister of Trade in Jamaica.

Implementation Schedule for Tesla Model S
Week 1
Week2
Schedule of exportation of 250 vehicles to Port of Jamaica – Tesla Model 3-A
Receiving of shipment at Port Authority – Transport to dealership (Auto-
Dealers JA)
Week 3 Launch of Car Show, advertisements on TV, Radio and Online
Week 4
Week 5
Week 6
July 2016
1 year review
Ready for sale on sales floor – Priced 20K – 35K US dollars
Evaluation of sales & promotions
Start of Negotiation for development of electric charging station (1) and a
free standing Tesla store (expected finalization in June 2018)
Update on service stations scheduled opening on island
Review of sales, development, success of plan- set up new order of 500
vehicles – new models priced between 20K -30K

References
Average Salary Online. (June 28, 2015) Average Salaries- Jamaica. Retrieved at
http://www.averagesalarysurvey.com/jamaica
Crothers, B. (July 12, 2015) Tesla Model 3 Comes Into Focus. Retrieved at
http://www.forbes.com/sites/brookecrothers/2015/06/22/tesla-model-3-comes-into-focus-
models-motors-manufacturing/
Eat Jamaican. (June 28, 2015). Ital Recipes & History. Retrieved at:
http://eatjamaican.com/ital-recipes/rastafarian-cooking.html
Embassy of the United States, Jamaica. (June 14, 2015) Doing Business in Jamaica. Retrieved at
http://kingston.usembassy.gov/doing-business-local.html
Export. Gov. Doing Business in the Caribbean- Jamaica. (2015) Retrieved at
http://www.export.gov/caribbean/doingbusinessinthecaribbeanregion/jamaica/index.asp
Hourly Nerd. Special Market Research (2015). Retrieved at
http://info.hourlynerd.com/special-market-
research?gclid=CKSV9Ob8ocYCFRAyaQod51gAoA
Jamaica Trade and Investment Association. (June 14, 2015). Doing Business in Jamaica.
Retrieved at http://www.jamaicatradeandinvest.org/about-ja/jamaica-by-the-numbers
Nations Encyclopedia. (July 4, 2015) Jamaica Infrastructure. Retrieved at
http://www.nationsencyclopedia.com/economies/Americas/Jamaica-
INFRASTRUCTURE-POWER-AND-COMMUNICATIONS.html
New York Org. (June 14, 2015). The Contemporary Caribbean. Retrieved at
http://exhibitions.nypl.org/africanaage/essay-caribbean-2000.html

Numbeo Online. (July 4, 2015) Jamaica Gas Prices. Retrieved at
http://www.numbeo.com/gas-prices/country_result.jsp?country=Jamaica
Pay Scale Online. (June 28, 2015). Jamaica Salaries, Average Salaries. Retrieved at
http://www.payscale.com/research/JM/Country=Jamaica/Salary
Tesla Motor Cars. (July 4, 2015) Model S & Information. Retrieved at
http://www.teslamotors.com/models
Top 5 Jamaica. (July 4, 2015) Auto Dealerships in Jamaica. Retrieved at
http://www.top5jamaica.com/category/Automotive/
United Nations Population Fund.(June 28, 2015) Jamaica Demographics. Retrieved at
http://caribbean.unfpa.org/public/cache/offonce/Home/Countries/Jamaica/JamaicaDemog
raphics;jsessionid=173EFEEBBDE7896870FF5882CFAE5CBD.jahia01
World Bank Group. Jamaica Business Information (2015). Retrieved at
http://www.doingbusiness.org/data/exploreeconomies/jamaica

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