1 International Marketing Final Project ( Tesla / Karsan Joint Venture in Turkey) 1. Executive Summary XXXXXXXXXXFounded in 2003, Elon Musk alongside Martin Eberhart and Marc Tarpenning are three...

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1 International Marketing Final Project ( Tesla / Karsan Joint Venture in Turkey) 1. Executive Summary Founded in 2003, Elon Musk alongside Martin Eberhart and Marc Tarpenning are three Silicon Valley engineers who founded Tesla Motors Inc. to prove that electric vehicles will soon be on the rise over gasoline-powered cars. Over the years, the electric vehicle industry growth has been increasing due to fuel prices remaining high in several foreign countries. As a result, the demand for more energy efficient cars has been on the rise due to the concern for the environment. Tesla Motors Inc., is about “being in the right place at the right time,” which is why they have been more successful than other electric car companies, “including Fisker, and other clean tech companies in general, [whom] have failed.” While it’s all about timing, Tesla Motors Inc., believe that Turkey will be the next emerging market for their consumers. As the Turkish Lira is losing value, this makes Turkey have the world’s most expensive oil and gas while electric prices are low. The Tesla Motor Company has created a lineup of vehicles which consists of Model S, Model X, and the Roadster. While each vehicle is made up of different components targeted to a specific consumer, Elon Musk was able to manage each vehicle under the same specifications, including zero emission cars with the ability to go nearly three hundred miles per charge. These vehicles have withheld the expectations of a luxury car featuring things such as a high tech panorama roofing and a touch screen dashboard. 2. Product / Service Instead of introducing an existing vehicle that has already been produced from the trio lineup, Tesla Motors would like to collaborate with Karsan, whom have been operating in the Turkish automative industry producing “light” commercial vehicles in a joint-venture. While Karsan is owned 100% by Turkish capital, together we will work to produce and manufacture a newly innovated electric vehicle using the base model S as a guide that will meet the needs of the Turkish consumers under two companies. Through this joint-venture, Karsan will provide the information and supply the resources for production throughout Turkey and give us insight on the current market in the constructive process while Tesla will aid in the creative design process, research and development, and innovation. We have chosen to do a joint-venture with Karsan of Turkey for a number of reasons. The Mission statement of Karsan is, “Identification of transportation needs, formulation of the necessary systems, products and services to design, produce and present”. The needs for transportation in Turkey is for electric cars. We will utilize Karsan for design, production, and presentation. Karsan has 4 main fields of operations, which fit into our needs as a joint venture. These fields are,"Original Equipment Manufacturing (OEM)", providing development, manufacturing, marketing, sales and after-sales services for Karsan brand vehicles in domestic markets and abroad, "Integrated Strategic Partnerships", providing manufacturing, marketing, sales and after- sales services for brands that have targeted growth in the region, “Contract Manufacturing", meaning design and engineering support as well as vehicle manufacturing for powerful global brands "Other Operations", covering various services that the company provides for both local and foreign 2 manufacturers”. Because the joint-venture is based on meeting the needs and desires of the people in Turkey, Karsan has “aimed to offer modern product and service solutions” since it was founded in 1966. ❖ Product: High technology electric car with the supply resources from our partner Karsan Company 3. Country’s Information for Decision Purposes ➢ Countries selected: Turkey (Middle East) and South Korea (Asia) Geographic and Demographic: Turkey South Korea Industry Textiles, food processing, autos, mining, steel, petroleum automobile production, chemicals, shipbuilding, steel, textiles Imports (Turkey does have much interaction business with US than South Korea does) specially absolute zero in vehicles import. America's exports to Turkey amounted to $11.1 billion or 5.6% of its overall imports. - Aircraft, spacecraft: $1.7 billion - Machinery: $1.2 billion - Iron and steel: $1 billion - Medical, technical equipment: $729.5 million - Oil: $689.1 million - Pharmaceuticals: $556.9 million Cotton: $532.3 million - Electronic equipment: $478.3 million - Plastics: $432.8 million - Organic chemicals: $415.4 million US exports to South Korea amounted to $44.2 billion or 10.1% of its overall imports. - Machinery: $7.8 billion - Electronic equipment: $6.7 billion - Medical, technical equipment: $3.5 billion - Aircraft, spacecraft: $2.4 billion - Vehicles: $1.7 billion - Oil: $1.7 billion - Other chemical goods: $1.5 billion - Plastics: $1.5 billion - Organic chemicals: $1.3 billion - Cereals: $1.3 billion Exports (Same like Import Factors) Apparel, foodstuffs, textiles, metal manufactures, transport equipment Electronic products, machinery and equipment, motor vehicles, steel, ships, textiles 3 Political Opportunities (The government on both Turkey and South Korea show interests on developing the electric car) • The Turkish government wants to promote green cars in the country. • The Turkish government has been working towards producing its own 'national vehicle', designed to showcase the region’s production and development facilities.The local and central Turkish governments and administrations show essential interest to the automotive industry and offer extensive incentives for the domestic manufacturers when the first Electric Vehicle was marketed by Renault in 2012. • Initially the South Korean government had the ambitious goal to become the fourth largest market for e-mobility in 2015. • The Korean economic system and Electric Vehicle Industry are dominated by large government-sponsored industrial conglomerates known as ’chaebols‘ which were formed after the Korean War. • The government said it will invest 562.1 billion won (US$490 million) this year to promote the application of nano-technology on not only automobiles, but also in the development of semiconductors and new materials. GDP per Capita (2014-2015) And The GDP annual growth rate of Turkey will have significant raise in 2016. U.S. $20,438 (1.00 USD= 2.83287 TRY) U.S. $33,629 (1.00 USD= 1,154.86 KRW) Consumer Behaviors (Both Turkey and South Korean has a good consumer purchasing power on quality product which is a huge opportunity for announcing new technology products such as high quality car by our Tesla Company) - Consumers are aware of quality (certificates of guarantee). - When deciding to buy, the Turkish consumer finds out about conditions of payment. - Young people are aware of advertising and like products close to those which suit western tastes. However, concerning foodstuffs, traditional Turkish products are unanimously approved. - Korean consumers are very sensitive to the power of the brand name, the healthy aspect of a product and perfect after sales services. - They are ready to pay for the quality. Korean consumers like to be guided and well informed when they buy something. - They are less and less nationalist in their purchasing preference. Consumer Segmentations and Trends Middle aged in Turkey probably is our target because: - The largest population in Turkey. - Middle Youth consumers value their car brands. - All consumer segmentations in South Korea does not look like they have much interest on cars or electric technologies. - Generations like beauty products or spend much money on education, entertainments, fashion, travels, or family life. Climate Temperate; hot, dry summers with mild, wet winters; harsher in interior Temperate, with rainfall heavier in summer than winter; cold winters Terrain High central plateau (Anatolia); narrow coastal plain; several mountain ranges Mostly hills and mountains; wide coastal plains in west and south 4 Market Comparisons and Reasons why our company chose Turkey ❖ Car Market from the past few years: Turkey Top 5 largest Automotive Companies: Oyak Renult, Ford Otosan, Tofas, Hyundai Assan, and Toyota • There are 4 popular types of vehicle in Turkey: Passenger car (Oyak Renault and Hyundai), Light Commercial Vehicle (Ford Otosan and Tofas), Heavy Commercial Vehicle (M.Benz Turk and Ford Otosan), and Tractor (Turk Traktor) • The highest domestic market sales (demand): Passenger Car and Light Commercial Vehicle that our main product is Tesla which will be a good choice for expanding the market to Turkey. • The electric vehicle is still not broadly available in Turkey and still underdevelopment which is a good opportunity for us to come in and create a new product. --> Finally, we decided to choose Turkey as our target market to expand and export our electric car technology. South Korea Top 5 largest Automotive Companies: Hyundai Motor, Kia Motors, General Motors Korea, Ssangyong Motor, and Renault-Samsung Motors. • There are many types of electric vehicle in South Korea has been sold already. Below is the chart of EVs was sold in 2015 Model Jun 2015 2015 Market Share BMW i3 39 12% Chevy Spark EV 4 5% Kia Ray EV 0 4% Kia Soul EV 221 52% Samsung SM3 ZE 101 27% Total 365 100% • --> So if our Tesla Company enters this market, there will be many risks because of potential competitors in South Korea, so we will have many disadvantages on developing the product and gaining more market share. These barriers can lead us into a dangerous situation and the loss will be absolutely presented. 5 In addition, the people of South Korea do not live in a brick and mortar
Answered Same DayNov 27, 2021

Answer To: 1 International Marketing Final Project ( Tesla / Karsan Joint Venture in Turkey) 1. Executive...

Sanjukta answered on Dec 07 2021
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International Business
1. Executive summary
a. The company that is selected for this particular report is Starbucks and their main headquarter is at USA. The product that is selected is sandwiches and baked goods and the country in which it will be imported is Ethiopia. It very well may be said that Starbucks is the market chief in the coffee market over the globe. Furthermore, it is also the American multinational chain of coffeehouses that is headquarter in the Washington. In other words this company a
lso represented the United States’ second wave of the coffee culture. As this firm is available in all across the globe so it affected its reputation is influenced throughout the years regarding going into new business sectors. It is obviously that Starbucks has encountered some bombed endeavours in terms of entering in the new market sections. In this new market they will not import or highlight their coffee products but they intend to market baked goods and sandwiches in a most innovative manner. Illuminating the previously mentioned conversation it very well may be expressed that dependent on the administrations and items offered by Starbucks to the customers, this firm expects to enter the market of Ethiopia. This specific report will introduce a showcasing plan for passage in terms of introducing the new products of Starbucks into Ethiopia.
2. The product( Sandwiches and baked goods) that will be imported from USA to Ethiopia
The product that will be imported from USA is baked goods and sandwiches to Ethiopia and there are several reasons behind choosing this product. In the recent times, consumers in Ethiopia have less time to create homemade, wholesome breads. Therefore, this was another major reason why Ethiopia is selected by Starbucks in terms of introducing these products (Marcus, 2002). The following are some of the products in terms of the baked goods that will be imported to Ethiopia such as Banana Nut Bread, Blueberry Muffin, Morning Bun, Pumping Bread, 8 Grain roll, Old Fashioned Glazed Doughnut, Chocolate Croissant, Butter Croissant, Blueberry Oat Cake, and Plain Bagels. On the other hand, following are some of the sandwich products that will be marketed in Ethiopia are Tomato and Mozzarella Sandwich, Crispy Grilled Cheese Sandwich and Chicken Caprese. The above-mentioned products are selected because of the taste and preferences of the consumers in Ethiopia. However, as the market of Ethiopia is growing a mixed picture is emerging in terms of the diet (Isara et al., 2010). Ethiopians are also seen to be consuming a lot more calories on an average as well as more diverse foods, and it is projected that they can soon face the issues regarding the over nutrition such as obesity and overweight. These products will be healthy and cost effective for them.
3. Rationale behind this particular choice
This particular country is selected because the bakery goods market is projected to grow CAGR of 2.2% during the forecast period between 2020-2025. This market is also driven by the accessibility, convenience as well as nutrition profile connected with them. Keeping everything in mind such as the market of baked goods and sandwich along with the needs of the consumers this is the reason why Starbucks is all set to introduce healthy sandwiches and baked goods that will provide the consumers of Ethiopia with appropriate amount of calories. It can be said that the bakery market in this particular country is excellent. Awareness in terms of the high quality baked goods is rising at an alarming rate. The bread consumption in Ethiopia is expected to be quite high in the form of packaged products in the future. Specifically, in the rural regions of Ethiopia the consumption of bread is expected to grow at an alarming rate during the forecast period.
When contrasting both of the countries such as USA and Utopia it has been observed that Utopia is much more promising country than US in terms of the bakery goods market. At present, the rise in demand for the baked goods in Ethiopia as the scramble way of life of individuals is helping the market for suitable food. On the contrary, investigating these variables this nation is chosen for Starbucks (Teferi, Admassu & Mengistou, 2000).
a. Contrast between the countries
The countries that is selected for comparison is Ethiopia and Morocco
    Ethiopia
    Morocco
    In terms of climate Ethiopia is much more diverse
    Less diverse
    Consumers are quite aware of Starbucks
    Less aware about Starbucks
    Huge political turmoil
    Political instability is low
    Huge consumer base
    Less consumer base
b. Location and the target market
Country selected- The country that is taken into account is Ethiopia.
Specific location of the country that is selected- the location that is Addis Ababa This location is selected for importing the products because of the following reasons: The people living in Addis Ababa loves to eat different sandwiches so the demand is extremely high, it is needless to say that the demand for the options in terms of the healthier snacking is enhancing to a great extent, sweet baked goods tend...
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