Downloaded 15 times
More Related Content
Final Campaign Presentation_kswearingen
- 1. TESLA MOTORS CAMPAIGN PLAN KAYLEESWEARINGEN, VP OF MARKETING AT KSWEAR CONSULTING
- 2. SITUATION ANALYSIS • TheAffordable Mass Market Electric Car • Model 3 cars are distributed at the end of 2017 • SWOT Analysis and Marketing Challenges • No Previous Advertising • Sell 500,000 cars by 2018 Strength Weakness Opportunities Threats - high quality products with outstanding execution (Sparks, 2015) - Tesla expanded Supercharger locations worldwide in fivefold (Sparks, 2015) - 198,000 deposits have already been received for a car that was not unveiled until recently (Fleming, 2016) - Great price point for a high-end Tesla car -Attempting to reach a “mass-market” - First-movers advantage in the fully electric vehicle (Sparks, 2015) - Gigafactory manufactures all their lithium ion batteries allows them to reduce costs by 30 percent (Sparks, 2015) - No commissioned sales people - No negotiating the price - Brand new luxury brand from scratch -Brand positioning: They are trying to build the best car ever and not just the best electric car (D'Arcy, 2013) - Not being able to meet high demands for the Model 3 (SWOT Analysis - Tesla - SWOT Analysis Strengths -The Model S is the best) - Majority of the Tesla’s are produced in the US so the cost to ship around the world is high (SWOT Analysis - Tesla - SWOT Analysis Strengths -The Model S is the best) - Heavy spending (Sparks, 2015) - Quick expansion (Sparks, 2015) - Made in the United States, lack of skilled labor and high costs - Not good at meeting deadlines (Fleming, 2016) - Tesla has such a great reputation that it can flow over into their new “mass- market” Model 3 - Growing support from governments to become more environmentally friendly (Tesla Motors | SWOT Analysis | USP & Competitors) - Millennials being environmentally friendly and coming into their largest spending phase - Oil prices have currently been down but they could easily rise again (SWOT Analysis - Tesla - SWOT Analysis Strengths -The Model S is the best) - People who buy a $35,000 car use that as their primary car, people are still reluctant to the only car they own being an electric car (Fleming, 2016) - Never did advertising before, could do it for the Model 3 - price of lithium could rise drastically if these cars start to get massively produced (Bedigian, 2014) - Competitors will eventually catch up to the electric car (Bedigian, 2014) - $30,000 is not a “mass- market” the $20,000 is (Bedigian, 2014) - Maintain its own fueling/ charging stations (DeBord, 2015) - Automobile manufacturers cannot act as a dealer in certain states such as Texas and Michigan - Competition such as the BMW i3, Nissan Leaf, Chevy Volt, Chevy Spark, Toyota Mirai, Ford Fusion, Ford Focus, Ford C-Max, Honda Prius and other hybrid or electric cars (Hybrid and Electric Cars 2016-2017: The Best and the Rest) - Competing against hundred-year-old technology
- 3. CREATIVE STRATEGY • Objectives: •Engage new users who have never owned a Tesla • Increase number of consumers in the target market who associate benefits with Tesla • Reach goal of 500,000 automobiles sold by 2018 • Audience: Middle Class and Upper Middle Class • Message: Cost effective, low maintenance, no emissions, price, performance • Tone: Classy, High Tech, Simple, and high contrast
- 4. CREATIVE ELEMENTS • Storyboardfor a TV spot • Layout and Copy for a Print Ad • Press Release • Facebook Ad and Instagram Ad • Trade show Booth layout and vision
- 5. TELEVISION AD Scene 1:FADE IN FROM BLACK: You hear the engine and the car driving. Wide angle city shot with the Tesla below Scene 2: See the car speeding through the city, looking all fancy and cool with all the Tesla Technology and features inside and out Scene 3: Pulls into the garage, you hear children and a dog barking. Man gets out of the car, plugs in the Model 3 NARRATOR “Now you can be stylish, efficient and afford a Tesla. The Tesla Model 3 drives you home November 2017” For more details on how to secure your Tesla Model 3 today, go to teslamotors.com
- 6. PRINT AD • Showsoff the major benefits • Gives a call to action • Shows off the Model 3 • All branded fonts and colors To reserve your Model 3 go to teslamotors.com
- 7. PRESS RELEASE • PressRelease used to announce the official launch of the Tesla Model 3 • Copy of full release in the upload section • Sources used for press release are on final slide
- 8. FACEBOOK AD &INSTAGRAM AD Tesla Motors Tesla Motors The Model 3 goes from zero to 60 in under 6 seconds. #ElectricAvenue 98997 likes view all 31493 comments TeslaMotors.com 215 miles per charge with seating for five Get the Tesla quality without the Tesla cost. Reserve yours now. • These ads will be used to gain attention to both parents and young adults • Facebook is a prime spot for attracting all different age ranges • Instagram has become a popular channel as well
- 9. TRADE SHOW BOOTH •5” x 5” represents 100’ x 100’ booth space • Middle circles represents the Model 3 and Model S on a rotating pedestal • White Cubes are interactive kiosks with details on Tesla the brand, Model 3, Model S, and electric car understanding and benefits • Outlined rectangles are seating areas Reception and information Stage Area s e a t i n g s e a t i n g Model S Model 3
- 10. CAMPAIGN TEAM Management Copywriting Artand Layout Media Account Services Research
- 11. MEDIA SCHEDULE ANDBUDGET Tesla Model 3 Advertising Budget 2017-2018 Budget Trade Show Budget 8,000,000.00 SEMA 2,000,000.00 Las Vegas Auto Show 2,000,000.00 Detroit Auto Show 2,000,000.00 Baltimore Auto Show 2,000,000.00 Super Bowl Ad 5,500,000.00 30-sec ad spot $5,000,000 Production costs $500,000 Television Advertising 111,616,000.00 October - February 71,772,000 ABC and NBC - once during 6pm news daily, once between 7pm - 9:30pm on Tuesday, Wednesday, Thursday 37,704,000 HBO at 7pm, 8pm, 9pm on Wednesday, Thursday, Sunday 34,068,000 March - September 39,844,000 ABC and NBC - once between 7pm - 9:30pm on Tuesday, Wednesday, Thursday 26,426,000 HBO at 8pm Wednesday, Thursday, Sunday 13,418,000 HBO at 8pm Wednesday, Thursday, Sunday 13,418,000 Print Advertising 9,000,000.00 November - April Reader's Digest 1,500,000 Time Magazine 1,500,000 ESPN Magazine 1,500,000 Men's Health 1,500,000 Motor Trend 1,500,000 Allure 1,500,000 Digital Advertising 32,000.00 October - January 16,000 Google AdWords 8,000 Facebook 4,000 Instagram 4,000 February - September 16,000 Google AdWords 16,000 Total 134,148,000.00
- 12. MEDIA SCHEDULE ANDBUDGET Tesla Model 3 Production Budget 2017-2018 Budget 30-Second Ad Production Costs 1,026,000.00 (3) different commercials 342,000.00 License Period 44,999.95 1 year @ 100% Media Options All Print Media @ 200% Digital - TV @ 100% Digital - PR @ 25% Digital - Internet Advertising @ 75% Digital - Company Website @ 100% Digital - Social Media @ 100% Digital - Mobile @ 100% Total 600% Territory Options North America @ 250% Total 250% Total = 100% x 600% x 250% = 1500% of B.U.R. ($3,000) = $44,999.95 Total 1,030,499.95 Agency Mark Up Costs 2017-2018 Budget Production Budget 1,030,499.95 Advertising Budget 134,148,000.00 $135,178,500 x 15% Total 20,276,775.00 Total Budget 2017-2018 Budget Tesla Model 3 Advertising Budget 134,148,000.00 Tesla Model 3 Production Budget 1,030,499.95 Agency Mark Up Costs 20,276,775.00 Total 155,455,274.95
- 13. FINAL REMARKS • KSWEARConsulting thanks you for the opportunity to work with you on such an exciting opportunity with the Tesla Model 3
- 14. REFERENCES • About Tesla.(n.d.). Retrieved June 03, 2016, from https://www.teslamotors.com/about • AcceleratingSustainable Transport. (n.d.). Retrieved June 03, 2016, from https://www.teslamotors.com/model3 • AcceleratingSustainable Transport. (n.d.). Retrieved May 01, 2016, from https://www.teslamotors.com/model3 • Advertising Industry Careers. (n.d.). Retrieved May 27, 2016, from http://www.aef.com/industry/careers/9000 • Bedigian, L. (2014, March 7). Tesla Motors, Inc. (NASDAQ:TSLA) - The 3 Biggest Challenges Facing Tesla's Future Growth. Retrieved May 01, 2016, from http://www.benzinga.com/trading-ideas/short-ideas/14/03/4374622/the-3-biggest-challenges-facing-teslas-future-growth • Brand Strategist Salary- United States (n.d.). Retrieved May 23, 2016, from http://www.payscale.com/research/US/Job=Brand_Strategist/Salary • Creativepool. (2015, July 29). Retrieved May 27, 2016, from http://creativepool.com/articles/jobdescriptions/copywriter-job-description • D'Arcy, P. J. (2013, January 20). Tesla Model S: The Disruptive Marketingof an ElectricCar. Retrieved May 01, 2016, from https://scienceofrevenue.com/2013/01/20/tesla-model-s-the-disruptive-marketing-of-an-electric-car/ • DeBord, M. (2015, October 31). Tesla has 2 major problems, and they have nothing to do with its cars. Retrieved May 01, 2016, from http://www.businessinsider.com/teslas-problems-are-not-its-cars-2015-10 • Fleming, C. (2016, April 1). Tesla faces stiff challenges with Model 3. Retrieved May 01, 2016, from http://www.latimes.com/business/autos/la-fi-tesla-model3-20160402-story.html • Graphic Designer. (n.d.). Retrieved May 27, 2016, from http://www.truity.com/career-profile/graphic- designer • Goliya, K. (2016, May 4). Tesla Plans to Sell 500,000 Cars in 2018. Retrieved June 14, 2016, from http://time.com/money/4318604/tesla-2018-sales-goals/ • Hybrid and ElectricCars 2016-2017: The Best and the Rest. (n.d.). Retrieved May 01, 2016, from http://www.caranddriver.com/best-hybrid-electric-cars • Market Research Analyst. (n.d.). Retrieved May 27, 2016, from https://www.marketresearchcareers.com/jdmarketresearchanalyst.aspx • Media buyer/planner. (n.d.). Retrieved May 27, 2016, from https://gradireland.com/careers-advice/job-descriptions/media-buyerplanner • Sparks, D. (2015, May 13). SWOT Analysis of Tesla Stock -- The Motley Fool. Retrieved May 01, 2016, from http://www.fool.com/investing/general/2015/05/13/swot-analysis-of-tesla-stock.aspx • Supercharger. (n.d.). Retrieved June 03, 2016, from https://www.teslamotors.com/supercharger • SWOT Analysis - Tesla - SWOT Analysis Strengths -The Model S is the best. (n.d.). Retrieved May 01, 2016, from https://www.coursehero.com/file/11889383/SWOT-Analysis-Tesla/ • Tesla. (n.d.). Retrieved May 02, 2016, from http://www.caranddriver.com/tesla • Tesla Motors | SWOT Analysis | USP & Competitors (n.d.). Retrieved May 01, 2016, from http://www.mbaskool.com/brandguide/automobiles/4475-tesla-motors.html • Zart, N. (2014, August 22). The BrilliantTesla Advertising Strategy, or Lack Thereof. Retrieved May 01, 2016, from http://www.teslarati.com/brilliant-tesla-advertising-strategy-lack-thereof/
Editor's Notes
- #2 Hello Everyone, My name is Kaylee Swearingen. I am the VP of Marketing for KSWEAR Consulting. I am very excited to be with everyone at Tesla Motors. I have been working for weeks on how to craft the perfect campaign that fits your market and audience, while making you stand out. First I will discuss Tesla and the Model 3’s situation- going over your position in the market place, SWOT and your strategic goal. Second, I will explain our creative strategy for you then follow that with the creative elements. I will introduce the campaign team that would be working for me when we win your business. Then we will end with the media strategy and budget for television, print, web and trade shows.
- #3 About the Affordable Mass Market Electric Car The Tesla Model 3 is Tesla’s most affordable electric car (Accelerating Sustainable Transport). The Model 3 combines real world range, performance, safety and spaciousness into a premium sedan (Accelerating Sustainable Transport). The Model 3 gets 215 miles per charge while only starting at $35,000 (Accelerating Sustainable Transport). The Model 3 goes zero to 60 mph in under 6 seconds (Accelerating Sustainable Transport). The Model 3 seats five adults and has autopilot hardware capabilities (Accelerating Sustainable Transport). Review SWOT and marketing challenges together: Telsa has decided to market the Model 3 to a completely new audience. The have the Model S and the Model X. The Model S sells for $71,200 to $109,200 (Tesla). The Model X sells for $81,200 to $116,700 (Tesla). The Model 3 has an MSRP of $35,000 (Tesla). They are selling the Model S and Model X to a rich and affluent consumer. Is Telsa ready to stray from the rich, upper class? The Model 3 is targeted to be a more “mass-market” car. The challenge with this is, does the middle class want an electric car that can only go for 200 miles then must be charged? Do they even know Tesla is coming out with this new car? Does Tesla know what the middle, mass-market class even wants? Tesla has not done paid advertising in previous years. This could be because of their niche rich, affluent market the world gets around quicker in that circle of people. The rich and affluent may also rely heavily on word of mouth along with “keeping up with the Joneses”. Since Tesla is now targeting the mass-market, middle class, they might have to consider the costs of advertising. Since they currently do not have a budget for advertising, this could be a possible conflict for their future. According to your brief, your goal was to sell and produce 500,000 Tesla automobiles by 2018. That is roughly 10 times as many cars as you sold in 2015 (Goliya, 2016). With this hefty goal and a new target market, advertising is a must.
- #4 Objectives: Engage new users who have never owned a Tesla Increase number of consumers in the target market who associate benefits with Tesla Reach Goal of 500,000 automobiles buy 2018 Audience: Since the Model 3 has been labeled the mass market electric car, the Model 3 must have mass appeal. This means that the target market is very broad. This would be someone who is in the middle class or upper class since the car is $35,000. The middle class is one part of the mass markets that Tesla is targeting. This group of people makes between $45,000- $74,999 as a household (THE MIDDLE TO UPPER-MIDDLE CLASS, 2002). Men generally make $57,000 and a woman makes $40,000 typically (THE MIDDLE TO UPPER-MIDDLE CLASS, 2002). The middle class also values a college education which usually makes them salaried professionals and managers (THE MIDDLE TO UPPER-MIDDLE CLASS, 2002). The middle class usually lives comfortably with significant economic security making them able to rely on themselves (THE MIDDLE TO UPPER-MIDDLE CLASS, 2002). The middle class values independence, innovation, non-conformity and they adhere to intrinsic standards (THE MIDDLE TO UPPER-MIDDLE CLASS, 2002). The middle class is politically split. Societal trends in US originate in the middle class (THE MIDDLE TO UPPER-MIDDLE CLASS, 2002). The other half of Tesla’s target market is the upper middle class. The upper middle class is mostly white-collar professionals that make above-average personal incomes and advanced educational degrees (Upper Middle Class). The personal incomes are more than $62,500, who commonly reside in households with six figure incomes (Upper Middle Class). The upper middle class is also a dominant group to shape society. The upper middle class brought movements such as the Peace Movement, The Anti-Nuclear Movement, and Environmentalism (Upper Middle Class). This group of people are highly educated. They understand the importance of conserving energy which makes the all-electric Tesla Model 3 a perfect car for them. This person will care about the environment, the over consumption of oil and gasoline and someone who has an interest in advanced technology. Message: The audience should be left with all the benefits of the Model 3 which include: no gas, no emissions, cost effective, low maintenance, reduced noise pollution and most important the Tesla name (Advantages and Disadvantages of Electric Cars). Model 3 is a luxury electric car with looks, price, performance, and most importantly the Tesla name but not the Tesla price. We want the audience to see that the Tesla Model 3 is the high end electric car anyone can afford. Model 3 Features and Benefits (Accelerating Sustainable Transport): 215 miles per charge Zero to 60 mph in six seconds Seating for five adults Designed to achieve 5-star safety rating Autopilot hardware Supercharging Tone: Overall look needs to be classy, high tech, and simple. The color scheme needs to stick to the Tesla red, Tesla gray, Tesla white and Tesla black. The look with be high contrast to keep the whites white and the blacks black. The Model 3 with communicate the brand’s personality. Possibly even show all robotics and technology that is used in creating a Tesla. Now only are the cars high tech, but also the entire manufacturing process. Designs should not be cliché. We want people to know that this car is the future.
- #5 The tactics that we are using to spread the word about the Model 3 are: television commercials, print ads, press releases, facebook and instagram ads, and a trade show booth layout. We created one of each, to give you a taste of what we are all about.
- #6 This storyboard shows that the Tesla Model 3 is just as high tech and luxurious as the other Tesla’s but it is at the right price point for families and people in the middle to upper middle class. This tv ad will be very high tech, high intensity, sports and stylish, then as soon as you hit the last 8-10 seconds of the commercial it hits the consumers with the breath of normalness, kids laughing, a garage, a single family home. Just shows the consumers that they can be stylish, efficient and afford a Tesla Model 3. There will also be a special Super Bowl ad to reach ALL of the consumers we are looking for. There plan for tv ads is as follows: October - February ABC and NBC - once during 6pm news daily, once between 7pm - 9:30pm on Tuesday, Wednesday, Thursday HBO at 7pm, 8pm, 9pm on Wednesday, Thursday, Sunday March - September ABC and NBC - once between 7pm - 9:30pm on Tuesday, Wednesday, Thursday HBO at 8pm Wednesday, Thursday, Sunday
- #7 The print ad shows off all the benefits about the Model 3. It gives the audience a chance to see how cool the Model 3 is and how efficient it is. It then gives them the call to action, to reserve their own. The print ad plan is as follows: November - April Reader's Digest Time Magazine ESPN Magazine Men's Health Motor Trend Allure
- #8 This press release just explains the Model 3 and how to reserve it. It will be sent to all of our automotive outlets along with the major news stations in North America.
- #9 Facebook and Instagram are gaining a lot of traction for raising brand awareness and even making sales. These ads will run from October until January to gain traction to the Model 3.
- #10 These booths will all be very similar. It will show off the Model 3 and the Model S. There will be interactive kiosks for consumers to be able to learn about the cars along with the Tesla brand. The stage will allow us to host apperances with people famous to each city or of interest to each city. For example. The Detroit show we can have appearances from players on the Lions and Tigers teams. We will have you show in four trade shows in North America on the east and west coat, along with the midwest.
- #11 Management will be our brand strategist that will be assigned ONLY to you. They will have 5+ years as a brand strategist, 5+ years involved in the automotive industry, Master’s Degree a plus but not required. They will be responsible for: Be the hub for everything involving Tesla, Brainstorm development and implementation of Tesla’s campaign needs, Work closely with market researcher to discover insight on target market, and Make recommendations for Tesla knowing competitive market place. Copywriting will have a senior copywriter who is also assigned ONLY to you. They will have 3+ years of copywriting experience with an emphasis in the auto industry. He or she will be responsible for Communicating Tesla’s core message, writing website, print, and content copy, editing and proofreading copy, oversee the production phase. The art and layout department will have two graphic designers who will collaborate on your projects. They will have at least 3 years experience and skills in all the standard design programs: Illustrator, InDesign, PhotoShop, Premiere. They will be responsible for: Creating graphics, visuals, videos for website and social media, Creating print and web advertisements for Tesla, incorporating changes recommended by client, reviewing and editing designs all while sticking to Tesla’s brand guidelines. The media department will have fa media planner and buyer. This will be one person who works with all of our major clients. This person has at least three years in the auto industry, and experience with evaluating campaign effectiveness. This person will be responsible for: Identifying most appropriate vehicles for Tesla’s ads, establishing and maintaining contracts with media owners, evaluating effectiveness of the campaign, booking space or airtime, and negotiating the best deals to stay within budget. The account services department will have you’re an account manger who will have great understanding of this role and the industry with at least 5 years experience in each. This person will be your go-to for any and all of your needs. This person will be Tesla’s representative from agency, works closely with the Brand Strategist, assists with strategy and recommendations and understands your market place. The research department will have you a market researcher who has vast knowledge in the auto industry, at least 5 years. This person will be responsible for: understanding and documenting business objectives, formulating analysis, creating questionnaires, hosting focus groups, etc., reporting recommendations, presenting and answering questions about research findings.
- #12 Trade Show Budget for the Tesla Model 3 will be $8 million split between four trade shows. This allows for $2 million per show. This would allow them to have a booth that is at least 100 ft. x 100 ft. This will give them plenty of room for the Model 3 and for people to walk around the booth. This would also allow them to have many interact parts for attendees. This would allow for major video screens, graphics, and hanging signs. These numbers are based off a trade show budget for Mazak Optonics Corp. Since Mazak is privately owned, the full details of the budget relations cannot be explained. Super Bowl Advertising this budget is based off of the numbers for the 30-second advertising cost in 2015 which is $5 million (). I estimate a $500,000 in production costs for this commercial for such a major audience. Television Advertising costs changed per period of the year. These numbers are from page 86 in the Advertising Media Planning book. The estimated costs for October to December for early news are $77,000, prime time estimated costs are $189,000. There are a total of 130 commercials during early news at this time frame. There are 198 commercials during prime time from October to December. January and February had 80 early news commercials at an estimated cost of $67,000 each. These months also had 130 commercials at a cost of $146,000 each. March is there the early news commercials are done running and there are fewer prime time ads. March has 38 prime time ads at $146,000 each. During the third quarter of April, May, and June there are 117 ads at $160,000 each. The last quarter of July, August, and September had 118 prime time ads at $132,000 each. This gives a grand total of $111,616,000. Print Advertising will run in six of the most highly circulated national magazines. The average cost per print ad in these national magazines costs $250,000 per ad (Becket, 2016). With six months of six national publications, each publication will cost $1,500,000 totally $9,000,000. Digital Advertising costs include Google Adwords, Facebook and Instagram during October, November, December and January. The Google Adwords will run $2,000 per month running as cost per click (CPC). Facebook will also run CPC but this will only be $1,000 per month. Instagram will have sponsors posts of a $1,000 limit each month. February to September will run the same $2,000 CPC campaign for Google Adwords.
- #13 Creative Production Costs, Licensing Fees and Usage Fees 30-Second Advertising Production Costs average at 342,000 (Wagner), since we are creating three different commercials totaling $1,026,000. From The Association of Photographers, they have a usage calculator that formed this calculation. The Base Usage Rate (B.U.R.) ranges from $1,500 to $3,000 (Commercial Photographer Cost), I rounded high. Total for licensing period 100%, media options 600%, territory options 250% totaling 1500% of the B.U.R. which is $3,000 (The Association of Photographers). This equals $44,999.95. Agency Mark-Ups The average agency markup is 15% of the production and advertising fee (Commission Systems, 2003). With all of the costs for this advertising campaign, the percent markup would be $20,276,775. The total of the entire budget is approximately $155,455,274.95. With the total budget being $155,455,274.95 for the campaign we have suggested.
- #14 I believe that our advertising strategy will increase brand awareness by keeping Tesla top of mind and increase sales to reach your goal of 500,000 automobiles by 2018. Do you have any questions? Thank you