Tesla Company Enters the Middle Eastern Market

The Tesla's electric cars were launched Monday in the United Arab Emirates. Tesla is one of the fast growing vehicle manufactures with sales of 27% increase in the last quarter of 2016. The Middle East will be a great market for its sport and luxury cars due the wealth found in that area. The cars prices will start from $74,850 for Model S and about $93,650 for Model X.

Relevance to Marketing

Before taking such steps of expanding the company by going to the Middle East, the top executives thought about the place they were entering and the development of channel systems. When we discussed the chapter about place in class, we talked about having the right quantities, right locations, and delivering the product at the right time.

Right Quantities: Tesla's executives plan on making 500,000 cars by the end of 2018, and 1,000,000 cars by the end of 2020.

Right Locations: the broader Middle East and Dubai will be good locations because of the wealth found in those areas. Middle Easters are already buyers of fancy cars every year, so Tesla will be one more in their list.

At the Right Time: with the decrease in the oil prices since 2014, many governments in the Middle East have cut fuel subsidies, which has made gasoline-powered cars more expensive. 

This article illustrated how important it is to plan about the place and development of channel systems!

https://www.wsj.com/articles/tesla-makes-first-foray-into-middle-east-1486999094

Priscila Quimboca

MKTG 3343