COMPLETION CERTIFICATE
Date:
This is to certify that Mast.Yash Santosh Vadhane of
BBA-IB Roll no. 779 having specialization in
Marketing has successfully completed his project
titled MARKETING STARTAGIES OF STARBUCKS IN
AUSTRALIA as per the norms of Savitribai Phule Pune
University under the guidance of Ms. M. M. Mendu for
the academic year 2024-25
Internal Guide External Guide HOD /Principle
INDEX
No Particular Page No
Certificate of the college
Acknowledgement
Certificate of Guide
Chapter 1 Introduction of Topic 1-2
Chapter 2 Country Details 3-5
Chapter 3 Company Details 6-8
Chapter 4 Marketing Strategies of Tesla 9-11
Chapter 5 Data Analysis and Interpretation 12-16
Chapter 6 Finding, Recommendations and Conclusion 1-19
Chapter 7 Bibliography 20
CHAPTER 1:- INTRODUCTION:-
On January 7, 2020, Tesla formally entered the Chinese market for new energy vehicles, with
the mass delivery of its Model 3 at Tesla Giga Shanghai. As the world’s largest producer of
electric vehicles, Tesla is expected to considerably impact Chinese manufacturers of new
energy vehicles, thereby altering the competitive environment of the Chinese market.
China is widely recognized as one of the fastest-growing markets for new energy vehicles. The
industry has already passed the cultivation stage and is now in the growth stage, which marks
a critical period for reinforcing and establishing core competitiveness. In 2010, the Chinese
government made a strategic decision to promote emerging industries and identified the new
energy vehicle industry as a key field for development. Central and local governments have
implemented several industrial policies, such as financial subsidies and tax breaks, to stimulate
industry growth and encourage market demand. The sales of new energy vehicles in China have
surged from 8,000 in 2011 to more than 3.52 million in 2021. Thus, China has globally
dominated the new energy vehicle production and sales for seven consecutive years. Pure
electric vehicles remain the primary type of new energy vehicles, accounting for the largest
share of both production and sales.
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The market for new energy vehicles in China is currently dominated by the three following
distinct groups: (1) international and joint-venture automakers, such as GM, Volkswagen, and
Tesla, whose primary objective is to introduce innovative products rapidly to the Chinese
market; (2) established Chinese automakers such as BEIJING, BYD, and Great Wall Motor,
who focus on optimizing their product portfolios, innovating core technologies, and
maintaining market leadership; and (3) China’s “new forces of car making,” including NIO,
XPENG, and Li-Auto, which prioritizing delivering products, enhancing brand exposure, and
increasing customer adoption. Each group has its own strengths and weaknesses. With the entry
of Tesla, the competition for new energy vehicles in China is expected to intensify. Then the
following questions arise: is Tesla a “shark” or a “catfish”? How has Tesla’s entry impacted the
Chinese market for new energy vehicles? How are the Chinese automakers responding? Can
they withstand the pressure and sustain their businesses, or will Tesla gradually erode their
market share? Answers to these questions are critical to the development of China’s new energy
vehicle industry.
To examine the impact of Tesla’s entry into the Chinese new energy vehicle market, this study
selects Beijing, Shanghai, Guangzhou, Shenzhen, Chengdu, and Hangzhou as the markets for
new energy vehicle research; acquires monthly data on the characteristics and sales of pure
electric vehicles provided by the data platform “DASOUCHE,”1 and collects the transaction
prices of vehicles. We estimate the demand function, calculate the self- and cross-price
elasticity of each automobile brand, and simulate the counterfactual scenario in which Tesla
does not enter the Chinese market within the context of the random coefficient logit model
(Berry et al., 1995). Finally, returning the equilibrium price to the counterfactual scenario helps
on measuring the change in consumer welfare.
The elasticity analysis shows that Tesla behaves like a “shark” once it enters the Chinese
market, and any changes in its price substantially affect the market share of other brands.
Meanwhile, Chinese automakers, particularly the “new forces of car making,” such as Li-Auto,
NIO, and BYD, have begun competing with Tesla. This represents the introduction of Tesla’s
“catfish effect.” Our counterfactual analysis shows that the introduction of Tesla increases the
total welfare of customers in 90 markets. On close examination of the changes in consumer
welfare driven by the introduction of Tesla, we found various factors accounting for 73% of the
increase, while the price effect accounted for the remaining 27%. Other results from the demand
estimation show that consumers prefer new energy vehicles that are inexpensive, have low
power consumption per 100 km, have a reasonable mileage, and are large in volume and weight.
Unobservable individual traits can partially explain the differences in consumer preferences for
vehicle price, mileage, and energy consumption per 100 km.
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CHAPTER 2 :-COUNTRY DETAILS :-
China, officially the People's Republic of China (PRC), is a country in East Asia. With a
population exceeding 1.4 billion, it is the world's second-most populous country after India,
representing 17.4% of the world population. China spans the equivalent of five time zones and
borders fourteen countries by land.[k] With an area of nearly 9.6 million square kilometers
(3,700,000 sq mi), it is the third-largest country by total land area.[l] The country is divided
into 33 province-level divisions: 22 provinces,[m] five autonomous regions, four
municipalities, and two semi-autonomous special administrative regions. Beijing is the
country's capital, while Shanghai is its most populous city by urban area and largest financial
center.
China is considered one of the cradles of civilization: the first human inhabitants in the region
arrived during the Paleolithic; by the late second millennium BCE, the earliest dynastic states
had emerged in the Yellow River basin. The eighth to third centuries BCE saw a breakdown in
the authority of the Zhou dynasty, accompanied by the emergence of administrative and military
techniques, literature, philosophy, and historiography. In 221 BCE, China was unified under an
emperor for the first time. Appointed non-hereditary officials began ruling counties instead of
the aristocracy, ushering in more than two millennia of imperial dynasties including the Qin,
Han, Tang, Yuan, Ming, and Qing. With the invention of gunpowder and paper, the
establishment of the Silk Road, and the building of the Great Wall, Chinese culture—including
languages, traditions, architecture, philosophy and technology—flourished and has heavily
influenced both its neighbors and lands further afield. However, China began to cede parts of
the country in the late 19th century to various European powers by a series of unequal treaties.
After decades of struggle, the 1911 Revolution resulted in the overthrow of the monarchy and
the establishment of the Republic of China (ROC) the following year. The country under the
nascent Beiyang government was unstable and ultimately
