This document provides an integrated marketing communications proposal for Tesla Motors from Oklahoma State University. It includes a situation analysis of Tesla's strengths, weaknesses, opportunities, and threats. It then outlines Tesla's promotional mix, including their products, pricing, financing options, and distribution. It discusses Tesla's marketing communications strategies such as press conferences, YouTube videos, retail establishments, and celebrity endorsements. It identifies Tesla's target consumer segments as urban and affluent groups interested in technology.

1. CHARGE
FORWARD
An Integrated Marketing
Communications Proposal
for Tesla Motors
Oklahoma State University
MKTG 3433 Fall 2014
Written by Breckenridge,
B; James, O; Mellons, A;
Romans, A. and Wells, M.

2. SITUATION ANALYSIS
Strengths of Tesla
Weaknesses of Tesla
Opportunities for Tesla
Threats to Tesla
THE PROMOTIONAL MIX
Product
Pricing
Financing, Leasing, Loans
DISTRIBUTION
Buying a Tesla
Using a Tesla
MARKETING COMMUNICATIONS
Advertising
Personal Selling
Direct Marketing
Interactive/Internet Marketing
TARGET SEGMENTS
PRIZM Social Groups
VALS Social Groups
CURRENT BUDGET
DIRECT COMPETITORS
Toyota Motor Corporation (The Prius)
Nissan Motor Company (Nissan Leaf)
BMW I Series (i3)
INDIRECT COMPETITORS
California’s High-Speed Rail Authority
Commuter bicycles from brands such as Dahon and Genesis
Public Transit through the TIGER program
INTEGRATED MARKETING PLAN
The Big Idea
Communication Brief
Recommended Plan
Recommended Budget
BIBLIOGRAPHY
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cover image: http://images6.alphacoders.com/477/477020.jpg

3. Company
Analysis
Situation Analysis
Strengths of Tesla
• Tesla developed the first all-electric sports car named
“The Roadster”
• Tesla has the ability to develop and create all vehicles
in house.
• Execution of production went from producing a few
hundred cars in 2012 to producing a little more than
22,000 the following year.
• Tesla has created a one of a kind experience when
driving their vehicles which has led to winning several
awards.
• The range of their battery is largely above direct
electric vehicle competitors.
• Tesla has secured many partnerships with companies
such as Google, Daimler, Toyota Motors, and
Panasonic which helps to provide trust with customers
as well as helps all parties to stay on the forefront of
new technology.
• Forward-thinking corporate leadership
Elon Musk is not only Tesla Motors’ CEO and Product
Architect. Musk is also the CEO and Chief Designer
of Space Exploration Technologies (SpaceX), the
non-executive chairman and principal shareholder of
SolarCity, and he co-founded both PayPal and Zip2
(internet software provider). With a strong-willed and
passionate corporate leader like Musk, Tesla
Motors will still be at the peak of innovation and new
developments for electric vehicles through many years
to come. Musk and the rest of Tesla’ s executive team
have multiple decades of combined global automotive
financial experience. The team’s combined talents,
skills and attention to detail has perfected every inch of
each of Tesla’s models. They strive to make every Tesla
model completely custom for the buyer, and they prove
efficiency and excellence within every aspect of their
design and continue to make it better.
• Primary candidate for superior performance
Tesla Motors is the primary leader in well-to-wheel
energy efficiency and zero to sixty miles per hour
acceleration, and is the top competitor for the least
well-to-wheel carbon dioxide emissions. Tesla is
rapidly exceeding in manufacturing the most fuel-
efficient and least pollutant electric vehicles on the
road, while at the same time doubling the horsepower
of their electric motors to accelerate just as well as the
leading sports cars. Tesla proves their electric vehicles
can compete against any new fuel-efficient vehicles
on the road because of the stature of their vehicles’
performance, high torque levels and all around superior
convenience.
• Direct sales and service model
Tesla’s biggest advantage over its competitors is its
direct sales and service model. Musk’s idea for this
model was simply to get rid of the middle man and
make it easier to manufacture and sell his vehicles
directly to the general public. This smart move puts
the customers in more control of the transaction, while
earning Tesla Motors more profit. Musk’s purpose for
his direct sales and service model is not only to make
more profit, but to bring more compelling mass-market
electric cars to market and to do so in just a few short
years. Tesla’s plan is to grow and sell a large number of
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4. vehicles in the United States directly from their stores
and store service centers.
Weaknesses of Tesla
• There is an immature industry focus. This is because of
the fledgling nature of electric vehicle market overall.
• Brand recognition of Tesla is limited within the mass-
market consumer segment.
• If demand of Tesla products increases significantly,
there is a possible component supply problem.
• Tesla’s current manufacturer, Lotus, has limited
production capacity. This could lead to potential
production output problems if demand in the targeted
luxury sedan market increases significantly.
• Lack of electric vehicle charging stations
Anyone in the United States can customize a Tesla
model and have it delivered directly from the factory.
The main problem is not everyone in the United
States has access to a Tesla Motors electric vehicle
charging station. There are more charging stations
along the west and east coasts, but there are few near
the Midwest or Southwest regions. This is a main
concern for consumers in these regions who want to
purchase a Tesla model because they may be driving
longer distances or may simply live in a state that does
not have a charging station available. This concern also
prevents cross country traveling because it is almost
impossible to drive long distances without constant
detours.
• High labor costs
Musk and his executive team at Tesla Motors strive
to increase the rate at which they turn out cars. There
is no problem improving production and increasing
productivity, but labor costs get expensive when
employees are working almost 70 hours per week.
On top of this, Tesla has to pay additional overtime
wages, further increasing the cost of labor. This makes
the cost per car higher for Tesla to make and exhausts
the employee if the process continues. This can also
generate a malfunction in their manufacturing system
if Tesla wants to keep increasing the amount of cars in
production every week.
• Small economies of scale
In just a year’s time, Tesla Motors went from
manufacturing hundreds of cars per year to thousands
per year. In the electric vehicle industry, this is a
huge accomplishment. Although this is a strength for
Tesla, the main concern is how much longer Tesla
can continue to execute these large numbers in their
small line of production. This company’s market
capitalization already equals almost one-third of Ford’s
market, but with a small economies of scale it is more
likely to result in a standstill of all operations within
the manufacturing and factory like of their vehicles.
Opportunities for Tesla
• As more consumers recognize the increasing financial
and environmental cost of gasoline-powered cars, there
will be an increasing market in which to sell battery
electric vehicles (BEVs).
• An increasing number of consumers are searching for
alternatives to high-priced gasoline.
• Pollution, loss of fossil fuels and global warming, side
effects of the heavy use of gasoline-powered cars, are
becoming hot-button social issues.
• There is an increasing amount of government
regulations and incentives supporting the use of BEVs.
These include subsidies, tax breaks and grants.
• The market for BEV is still considered a niche market,
and for the time being, it is easy for Tesla to keep a
large market share (Mangram).
• Gigafactory
The largest opportunity for Tesla is their Gigafactory.
This Gigafactory will help Tesla reach its goal
of producing an electronic car mass market. This
Gigafactory will help Tesla meet the projected demand
for lithium ion batteries. It will also reduce the cost of
making the battery. Tesla’s Gigafactory will reduce cell
costs much more quickly than normal and is expected
in 2020 to produce more lithium ion batteries per year
than what was produced in 2013 worldwide. This will
help drive down the cost per kWh in Tesla’s battery
pack by over 30 percent. (Blog)
• China
Tesla has a large opportunity in China to become a
household name. Because of its pollution problem,
China’s government is making moves toward becoming
the world’s leader for plug-in vehicles. They will
be offering tax incentives on purchases and will be i
investing funds to make an infrastructure that will
trigger innovation and production in the electric vehicle
field. (Tesla Motors Inc.)
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5. Threats for Tesla
• Tesla wants to be able to produce, distribute and sell
its cars to average consumers, which seems difficult to
achieve due to their current business model.
• Their pricing strategy has not yet been used in the car
industry.
• Possible loss of government subsidies.
• Gas powered fuel efficiency continually increasing.
• Other vehicle manufactures
Companies such as Ford and Nissan also have electric
vehicles. This is a threat to Tesla because it is a way
for people to have an electric vehicle that is more
affordable. The reason people often veer away from
Tesla is the price. With other companies offering what
Tesla has, this could really impact Tesla’s profits.
• Threat to the Gigafactory
In order to fund the Gigafactory, Tesla Motors needs
to make enough profit from its Model S, X and E. It is
estimated that Tesla would have to sell over 500,000
units per year to meet this demand. Unfortunately,
Tesla has a tendency to miss deadlines. For example,
the Model X SUV went on sale a year later than
originally planned. This leads to concern of Tesla being
able to make the requirements in order to produce
the Gigafactory to continue Tesla’s overall growth (5
Biggest Threats).
The Promotional Mix
Product
Tesla is currently the only manufacturer making
and selling highway-capable electric vehicles. At the
moment, they are producing around 15 cars per week.
A majority of those are custom-made to the buyers’
specifications. Aside from Tesla’s Roadster and Model S,
the focus for this promotional mix will be the Model X
4-door crossover.
The premium performance of the Model S is due
to Tesla’s newly designed rigid body structure. The car
is set upon a metal frame, which gives it a 50/50 weight
distribution and a low center of gravity. The Model S is
equipped with an 85 kWh electric battery and the rotor is
the only moving piece of the car, which makes for faster
and more instantaneous speed. Also, this sedan is equipped
with power steering, door handles that retract into the body,
and smart air suspension to fully optimize the vehicle’s
aerodynamics.
The styling of the Model S includes, but is not
limited to, an all glass panoramic roof that blocks 100%
of UV light, an enclosed charging port that is basically
hidden, and a 17 inch touch screen dashboard with a
premium center console. Every feature of the Model S is
used effectively, from the rear-faced seating that comes out
of the back trunk and two USB ports within the console, to
using the typical engine space as an extra trunk and a front
crumple zone that makes it the safest car on the road.
Pricing
The pricing of a Tesla Model S is determined by
the options that are available at the time and the buyers’
specifications. The pricing of a Model S that is constructed
online does not include taxes, license and title fees, or
regionally required equipment, service, and charges.
Although the factory price will vary between $70 and $80
thousand, the price can exceed $120 thousand with multiple
detailed specifications.
Financing, Leasing, Loans
Financing a Tesla Model S is available in certain
states, mostly along the East and West coasts. Approval
for financing is based on the buyers’ credit and program
guidelines. Tesla uses monthly payments that are calculated
with an annual percentage rate, usually at 3.50% for a term
of 72 months with a 10% down payment. Tesla also offers
business leasing to those who it applies and works with
specific bank corporations that offer loans.
Distribution
Buying a Tesla
Consumers can buy a Tesla from a dealership
in 22 states and in 4 Canadian locations. States such as
California, New York, Illinois and Florida have upwards of
15 distribution centers. There are also charging stations and
service centers across the country.
The Tesla Model S is also available by online
order on the Tesla website. Through this channel, the
consumer can finance or lease the car, or the consumer can
pay by cash with a $7,500 incentive. With these options is
a breakdown of monthly payments, savings on gasoline,
guaranteed resale value, business tax benefits, state-based
incentives and lastly, the total monthly cost including
savings. Also through the website, you can choose add-ons
(Tesla).
Personal tours of the Model S and test drives are available
at Tesla dealerships.These tours allow the consumer to ask
any questions they may have about the car.
Using a Tesla
Along with the many distribution centers located
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6. across the country, the Tesla Model S offers a unique
feature on its GPS. Tesla’s system locates other Tesla
owners who are willing to offer travelers free electricity
from their homes, making it easier for owners to travel
further (Tesla Model S).
Marketing Communications
Tesla does not employ traditional forms of
marketing and advertising such as television or radio
commercials or print or digital advertisements. They also
don’t have a history of using promotional strategies such
as sales or coupons. However, the company is gaining
increasing amounts of recognition through other areas
including press conferences, YouTube videos, enticing
retail establishments and celebrity ownership.
Use of press conferences
Tesla’s press conferences are as exciting as they
are informative. These conferences often feature light
shows and give the press an opportunity to sit in and
interact with the cars. Indeed, it is not the normal show
of a spokesperson speaking to an audience of the press,
then taking questions at the end. These press conferences
exemplify the Tesla brand and its personality. Tesla is an
exciting and innovative brand, and these abnormal press
events push against the normal, boring narrative (Tesla
Motors, August 2013).
Other forms of Publicity
Tesla is frequently in the news. Recently they
announced the location of their new “gigafactory,” which
will allow Tesla to lower the cost of production of their
vehicles, thereby allowing them to begin production
of a lower-cost vehicle. Whether it’s about their new
factory, or the ever-increasing value of their stock, Tesla
is being portrayed favorably in the news seemingly every
week. Positive publicity is Tesla’s strongest marketing
communication, and they rely on good press for a large
portion of their marketing strategy.
Use of YouTube
With almost 70 videos, nearly 75,000 subscribers
and more than four million views, Tesla Motors has a fairly
hefty YouTube presence. These videos cover a range of
topics including recent news, event announcements, Elon
Musk and the different Tesla models. These are used to
engage and educate their audience, allowing both owners
and non-owners a taste of the Tesla life. Many of the
videos on Tesla’s channel highlight a certain feature of the
cars, such as their ability to drive safely in harsh winter
conditions (Tesla Motors, December 2013). Lastly, the use
of YouTube acts to exemplify the idea that Tesla is a high-
tech and modern company.
Use of retail establishments
To increase Tesla’s brand awareness, the company
has placed its retail establishments in wealthy districts
with high amounts of traffic, which include large cities
of California, New York and Florida. These also include
high traffic malls, where storefronts feature the models
and accessories. Many of these act not only as places for
purchasing, but also as galleries for the product, which
can be used as education tools, teaching consumers about
electric cars and, more specifically, the Tesla brand. This
unique strategy seems to be a successful one. Though
many consumers don’t buy at the store, they will buy
online after visiting because they desire participation in the
Tesla community. Rather than using these establishments
as a means to push salespeople on consumers, these
establishments are used to introduce the brand in a low-
pressure environment (Chambers).
Tesla also has an extremely interactive website,
where customers can create their Teslas and see what they
will look like, and can actually order them online. Tesla’s
website is packed with informative graphics, links to news
sources, and announcements from the company.
Celebrity Ownership
Many A-list celebrities are proud owners of a Tesla,
giving the company unintended yet positive attention.
This group of “green” celebrities includes, but is not
limited to, Anthony Bourdain, James Cameron, Morgan
Freeman, Anthony Kiedas, Jay Leno and Will Smith. This
is important for Tesla because many people in the target
audience are likely to know and like these celebrities. It
seems to have given Tesla good a good PR opportunity
through a sort of testimonial (Meggison).
Target Segments
PRIZM Social Groups
• Urban Uptown
Home to the nation’s wealthiest urban consumers,
Urban Uptown is one of Tesla’s key target segments.
These consumers are typically midscale to upscale,
college educated and ethnically diverse. They tend to
shop at exclusive retailers, drive luxury cars and spend
heavily on technology.
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7. • Young Digerati
The Young Digerati is Tesla’s most promising PRIZM
segment. Tech savvy, affluent and highly educated,
Young Digerati are exactly the type of people likely
to purchase Tesla vehicles, and with a median income
of $91,183 they have the means to do so. Young
Digerati live in trendy neighborhoods filled with fitness
clubs, clothing boutiques, coffee bars, juice bars and
microbreweries.
• Money & Brains
Another segment within the Urban Uptown social
group that Tesla could target is Money & Brains.
These consumers have high incomes with a median
of $88,837, advanced degrees and sophisticated
preferences. Often these consumers are married with
little to no children, making them ideal targets for the
upcoming, family-oriented Model X hatchback. Money
& Brains tend to live in cities in fashionable homes,
which are perfect for charging their electric vehicles.
• Elite Suburbs
This is the most affluent suburban social group, home
predominantly to Caucasians along with groups of
Asian-Americans. This group is full of single-family
homes of owners and managers of large companies.
Tesla has a strong hold in this segment due to their
value of large homes, luxury cars and luxury clothes.
Although this group is small in population, they
represent a large portion of the nation’s income.
• Upper Crust
The Upper Crust is a PRIZM segment Tesla can count
on. These are the elite of the elite, celebrities and the
like, who have the disposable income to buy a Tesla
and then a few more. This is the wealthiest lifestyle in
America, full of empty-nesting couples with a median
income of over $110,000. This is perfect for the Model
S or even a Tesla Roadster, which would be used as a
status symbol. The Upper Crust stows their golf clubs
in their Model S before heading to the country club and
turning all the heads along the way.
• Winner’s Circle
This segment is young and suburban. It includes those
who have just acquired wealth with a median income
in excess of $107,000. Those in the Winner’s Circle
love to take in shows, eat at fancy restaurants and drive
luxury vehicles. Tesla is a large player in this market
because the segment spends their wealth on luxury
items. These consumers possibly still have kids at
home, making them the perfect candidates for the new
Model X. Whether it is traveling to the mall to shop or
heading to a professional sports game, a Tesla will take
the Winner’s Circle where they need to go.
VALS Social Groups
Tesla’s chief target segment within the VALS
framework is the Innovators. They have high resources
and are often on the cutting-edge of technology. They
are leaders of change, often leaders of business and
government.
Budget
Current Budget
Advertising and sales promotion costs are expensed
as incurred. During the years ended December 31, 2013,
2012 and 2011, advertising, promotion and related
marketing expenses were $9.0 million, $3.9 million and
$2.9 million, respectively.
Competitive
Analysis
Direct Competitors
ford Motor Company (focus)
About
Ford Motor Company, founded in 1903, is one of
the United States’ oldest and most prominent car brands. In
2013, the company earned $146.9 billion in revenue from
automotive and financial services (Ford Annual Report).
Ford Motor Company carries five hybrid and
electric models ranging from $27,170 to $35,170. Its only
all-electric model is the Ford Focus Electric, which is
contains a 23 kilowatt hour (kWh) lithium-ion battery and
gets an EPA estimated 99-110 MPGe. With a maximum
speed of 84 miles per hour, drivers get an estimated 76
miles on each charge.
The vehicle is equipped with Brake Coach and
SYNC® with MyFord Touch® technology, which helps to
extend the life of the car’s brakes and connects to music,
navigation and other devices, respectively. The upholstery
is made with recycled materials, and the foam cushioning
is made of plant seed oils. The Ford Focus Electric also
features push-to-start technology and offers cargo space in
the rear of the car. It also comes standard with a rear-view
camera, dual zone temperature controls and a Sony audio
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8. system. There are no other packages available.
For this model, Ford created a mobile device
application that helps the user track the car’s charge
and locate nearby charging stations. In addition to these
charging stations, Ford sells an in-home, 240-volt charging
station (Ford).
Place
The Ford Focus Electric is available at any of
Ford’s certified EV dealers. For the Oklahoma City area
alone, there are 25 EV dealers within 300 miles. For large
metropolitan areas such as Los Angeles and New York City,
there are more than 25 dealers, though the website’s locator
only displays the 25 closest dealers. For more stranded
areas, such as Alaska, there are only three dealers within
300 miles (Ford).
Positioning
The Ford Focus Electric is the not-so-sexy version
of the electric car. Often compared to Tesla’s Model S, is
has been dubbed by many as the “Tesla Model S For the
Middle Class.” It is a modest car when compared to Tesla’s,
but it intrigues consumers in the way it interacts with the
driver. The application analyzes the driver and indicates his
or her “driving style” while also tracking the car’s charge
and notifying the driver when the charge is low (Woody
2012a).
Despite the intrigue and excitement of Ford’s electric
model, some consumers are still shying away from the
unknown. Challenges such as the low mileage range higher
upfront costs are repelling many consumers, even after
in-depth searches (Woody 2102b). At this fragile economic
time, many consumers prefer to play it safe.
Price
When leased, this model starts at $35,170 and
would cost $194 a month. Ford also estimates a total
of $825 in “destination charges.” As of Sept. 24, 2014,
incentives reaching as much as $11,750 may be available
for qualified drivers. With these charges and incentives,
and after a down payment of $2,640, the user endures an
adjusted capitalized cost of $21,605.
When financed, this model starts at $35,170, or
$194 a month. Ford estimates a total of $825 in “destination
charges.” As of Sept. 24, 2014, incentives reaching as much
as $6,000 may be available for drivers. With these charges
and incentives, and after a down payment of $3,600, the
user endures an adjusted capitalized cost of $26,395 (Ford).
Nissan Motor Company (Leaf)
About
Nissan Motor Company was founded in December
of 1933. Today, they have more than 20 different models.
Nissan has two vehicles that fall under the electric/hybrid
car category. The Pathfinder is the hybrid version and the
leaf is the electric version.
The Leaf was introduced in 2011. It was the
world’s first mass-produced 100% electric, zero emission
automobile (Nissan Vehicle History). It has a 24 kilowatt
hour (kWh) battery and has an 84 mile pure electric
range. It is powered by an 80 kilowatt electric motor, 107
horsepower and 187 pound-feet of torque. This allows for
acceleration from zero to 60 mph in 10.2 seconds (The
Nissan Leaf).
Place
Nissan’s Leaf is available at dealerships in all 50
states. This makes the Leaf the only pure electric vehicle
available throughout the United States. Most dealerships
will have models available for test drives and purchases on
the spot. (The Nissan Leaf)
On one charge, the Nissan Leaf has a driving range
of 84 miles. This allows for drivers that average 35 to 40
miles a day to go two days without having to recharge
their battery. The battery can charge in home in a 240-watt
charging dock. It takes five hours to go from an empty
charge to a full one with the 6.6 kW onboard charger. It is
also estimated that by 2015, there will be 20,000 public
charging stations across the US. (Nissan LEAFÂ).
nissan
leaf
7.9/10 overall
8/10 safety rating
quiet, composed
handling,
roomy cabin
ford focus
electric
7.8/10 overall
9.7/10 safety rating
many standard
features, fun driving
dynamics
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9. Positioning
According to Joann Muller, the Nissan Leaf is
the ‘thinking person’s car.’ While the Nissan is a more
affordable option for the environmentally conscious,
it does come at a price. Drivers of the leaf will have to
be consumers that do not drive long distances for their
everyday commute, who live in higher populated areas in
order to recharge the battery and who are not concerned
with using the heater in the winter season. (Muller)
Price
The Nissan Leaf has a starting value of $21,510
after federal tax savings. The price can go as has $27,620
with additional features. (2015 Nissan LEAFÂ)
BMW i Series (i3)
About
The BMW i Series is a sub-brand of BMW founded
in 2011 to design and manufacture plug-in electric vehicles.
The company’s initial plans call for the release of two
vehicles; the i3 all-electric car and the i8 plug-in hybrid.
BMW’s new i Series is boosting BMW’s global image,
and in the United States the automaker intends to boost
availability.
The 2014 BMW i3 is an all-new electric vehicle
that is powered by a lithium-ion battery pack and an all-
electric drive train. The lightweight i3 has a carbon fiber
reinforced plastic passenger cell and the range is expected
to be 80 to 100 miles on a full charge. In addition, a range
extender generator is available which doubles the driving
range. To date, BMW has sold 3,104 i3’s from May to
September of this year. This adds to a total of 10,000 i3’s
sold globally.
The BMW i8 will debut as a 2014 model. This
is a significant vehicle to BMW because it is their first
plug-in hybrid and they claim it is “the world’s most
forward looking sports car.” The driver of the BMW i8 can
choose from five driving models, including a Sport mode
with an ultra-intense boost function, and a fuel-saving
Eco Pro mode that programs certain functions to operate
at minimum power consumption. The official EPA fuel
economy numbers have not been published, but BMW said
the i8 is expected to return 94 mpg in the United States.
Place
BMW is looking to increase the production of i3
and i8 models in the United States. Both cars are assembled
in Germany. A total of seven BMW i3 models are available,
in new and used conditions, at the Jackie Cooper BMW
dealership in Edmond, Oklahoma. For larger more
metropolitan areas, there are a large number of dealerships
with more variations of the i3 model.
The BMW i8 is extremely hard to find at
dealerships, more so than the i3 model. Currently, BMW
is making their profit of the model from custom builds and
deliveries. Heavy U.S. demand is coaxing BMW to adjust
its inventories in the states over the coming months.
Positioning
The BMW i3 model is a significantly lower price
and smaller electric vehicle than the Tesla Model S. The
i3 is a truly radical attempt to reinvent an electric powered
luxury sedan.
The i8 sportscar is said to compete with high-
performance cars in the general price range and has been
compared as an alternative to the Tesla Model S and a
direct competitor to the Tesla Roadster. It is promoted as
the first serious contender for the Model S and has drawn
plenty of attention from wealthy buyers who want a green
image. This car is pitched at high-tech pioneers who can
afford a car in this price range and are ultimately intrigued
by new things.
Price
Despite the hefty price tag of the Tesla Model S,
the BMW i3 model has a base price $41,350 MSRP and
$369 per month. If the i3 model is ordered with the range
extender generator, that brings the base cost up to $42,500
MSRP and a cost of $439 per month. A potential benefit of
purchasing a BMW i Series model is a person could receive
a Federal EV Income Tax credit of up to $7,500. For these
electric cars, BMW also offers financing for the purchase
and installation fees of the BMW i Wallbox home charging
station. They also offer three different forms of financing to
fulfill every potential customer’s needs.
The BMW i8 model has a base price of $135,700
MSRP. Along with financing, BMW offers leases for the
i Series models. They also offer flexible payment options
which you can make either automatically, by mailing a
check, or via your mobile device. A person can set up
semi-monthly or monthly plans, in which money can be
confidentially withdrawn from your bank account. If a
person wants to pay off their purchase at a faster pace, they
bmw i3
8.4/10 overall
safety rating n/a
comfortable, unique
interior, fun driving
dynamics
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10. can choose the special payments option in which they can
make additional principal payments at their convenience
and without any financial penalties.
Indirect Competitors
California High-Speed Rail Authority
About
For the environmentally conscious, which is often
a characteristic of Tesla purchasers, high speed train travel
is a very viable option for transportation. After initial
financial and bureaucratic delays, the California High-
Speed Rail system is finally beginning construction. At 200
miles per hour, the final product will be a fast, affordable
way to travel through California, similar to the high speed
trains of Europe and Asia.
Place
The California High-Speed Rail system will
obviously be only in California, but similar systems
could crop up nationwide. The proposed system will
run from San Francisco to Los Angeles, and eventually
to Sacramento and San Diego, covering over 800 miles
(California High-Speed Rail Authority). The place is
significant because Tesla Motors is based out of California,
and an efficient, low cost high speed railway could eat
away some of their share of the transportation market.
Price
The cost of the high speed rail system has been
controversial to say the least. Its estimated cost was $68.4
billion in 2011, making the cost per kilometer around $56
million (California High Speed Rail Authority, 2012). This
number is much higher than the cost for similar systems
in China and Europe. The cost for the rider however, is
relatively inexpensive. It will cost between 22 and 54
dollars per ticket, depending on the length of distance
traveled (California High-Speed Rail Authority, 2014).
Promotion
The California High-Speed Rail Authority has
lobbied extensively with the California government to
accept it. It has also been in the news frequently, as its
cost and potential benefits are controversial. Overall there
seems to be favorable attitudes towards the rail system,
but they have not yet begun to sell tickets as it isn’t yet
completed.
Commuter bicycles from brands such
as Dahon and Genesis
About
Commuter bicycles are any type of bike used to
get from one place to another. This includes mountain,
folding and fixed-gear bikes. The consumer chooses the
type of bike he or she wants to use based on the type
of environment he or she will be riding in. Commuter
bikes are becoming increasingly popular with the rise of
environmental concerns. Like electric vehicles, they allow
the consumer to reduce their carbon footprint. They require
little maintenance and eliminate the need for a power
source such as gasoline and electricity. They also contribute
to a healthier lifestyle, which is a rising concern for many
consumers. Though they aren’t as appealing to long-
distance commuters, they are becoming popular among
urbanites who don’t have to travel far for work.
Bike brands such as Dahon and Genesis are
commended by many online sources. Commuter Bike
Center rated the Dahon Speed Uno Folding Bike at 4.5
out of five stars. It’s a lightweight bike that quickly folds
for easy carrying. It features luxury impact tires, which
gives the consumer a smoother ride. It is recommended for
flat areas. It brakes quickly and is a good bike for speed
(Dahon).
Genesis is another well-recommended brand for
commuter bikes. One such model is the Day One Alfine
Di2. At a higher price than most commuter bikes, the Day
One Alfine Di2 is an eight-gear cyclocross, a mix of road
racer and mountain bike. It features a slim tire and guards
for mud and rain (Future Publishing).
Place
Commuter bikes are easily available from multiple
retailers. Local bike shops and online retailers are the most
common and easiest places to buy a commuter bike, though
some products are available on websites such as Craigslist
where everyday people can sell their own possessions. For
the highest quality bikes, consumers may look at sporting
10

11. goods stores and specialty shops.
Positioning
Consumers tend to realize the benefits of
commuting by bike, which include a healthier lifestyle,
environment and community. However, there are a few
positive and negative characteristics consumers find in
commuting by bicycle. Increased commuting distances
scare off many consumers who see biking as too much an
effort. There is also increased effort when communities do
not offer bike lanes or bicycle parking (Hunt & Abraham,
2007). In conclusion, for many consumers, commuting by
bicycle is not worth the added effort and frustrations.
Price
Commuter bikes come in a range of prices; quality
increases with price. The Dahon Speed Uno Folding Bike
can be purchased on Dahon’s website for $419 and on
Amazon for $399 with free shipping. the Genesis Day One
Alfine Di2 can be purchased for the steep price of £2199.99
(Genesis).
Public Transit through the TIGER
program
About
U.S. Transportation Secretary Anthony Foxx just
secured $600 million to help fund 72 transportation projects
in 46 different states and the District of Columbia from its
Transportation Investment Generating Economic Recovery
or TIGER program. These will include new and improved
bus lines as well as train and trolley improvements in cities.
Since the economic downturn in 2009 the TIGER program
has provided nearly $4.1 billion to 342 projects in all 50
states as well as the District of Columbia and aid for Puerto
Rico.
Place
TIGER received 797 eligible applications from
49 states, U.S. territories and the District of Columbia
seeking aid for improving and instilling new ways of public
transportation. Of those 797, 72 projects were given the
green light and are to begin working with those of the
TIGER program to improve public transport.
Positioning
This has a very indirect effect on Tesla, but still an
effect nonetheless. While those who drive or can afford to
drive Teslas may not be using public transit often now, we
may see in the future as these projects are being completed,
a shift towards people being more public transit friendly.
New York City is a great example where the public
transport has provided an easier route than driving so many
opt to ride the train rather than owning a car and driving.
With people becoming more environmentally conscious,
we are seeing more of a care for the things we are putting
out into the environment, with better public transport, less
cars are on the roads which makes for a better environment,
electric car or not.
Price
These most recent projects will cost a little over
$600 million and will not see completion for a few years.
The TIGER program has given $4.1 billion since 2009.
Almost $14 million will be given to Oklahoma City to help
renovate OKC’s Santa Fe Depot facility to help reinstate
an area for Amtrak passenger rail and future streetcar rail
services.
11

12. Integrated
Marketing
Plan
Tesla’s overall communication
situation
Tesla does not employ traditional forms of
marketing and advertising such as television or radio
commercials or print or digital advertisements. They also
don’t have a history of using promotional strategies such
as sales or coupons. However, the company is gaining
increasing amounts of recognition through other areas
including press conferences, Youtube videos, enticing retail
establishments and celebrity ownership.
Recommended positioning statement
For the affluent, intelligent and married Money
& Brains segment, Tesla is the electric vehicle brand
that delivers luxurious, safe, sustainable and accessible
travel options because only Tesla is equipped with enough
charging stations nationwide to foster travel from coast to
coast.
Marketing objectives
• Increase sales among families by 5% in the next 3 years
• Increase electric vehicle market share by 8% (from
42% to 50%), and overall automotive market share by
2% (from .2% to 2.2%) in the next 3 years
• Increase brand awareness by 20% in the next 3 years
• Increase output of vehicles by 150% within the next 10
years (with production of Gigafactory)
Communication objectives
• Increase awareness of Tesla’s new affordability
• Inform consumers that Tesla offers many accessible
charging stations
• Inform consumers there are more than 30 thousand
Teslas on the road and there are more than 500 million
miles driven by those Teslas (Teslas aren’t unattainable,
they are driven by many people)
• Inform consumers that Tesla has the best safety rating
of any car tested
• Project the image that Tesla is the car of the future
(“Charge Forward”)
• Project an image of families on the road with Tesla
The Big Idea
This campaign will communicate safety and
accessibility with a cross-country route, which will be
driven on by celebrity Tesla families.
• Press Conferences
Press conferences are familiar to Tesla’s current
audience, and it’s time new consumers have an
experience with Tesla. By holding press conferences
in towns across the country where the new route will
be featured, people who are unfamiliar with Tesla
will be given a chance to interact with the brand.
These conferences will also be great social media
opportunities, as people will post their experience
and share it with their friends. The communication
objectives that will be satisfied by this type of event
include informing consumers of accessibility and
affordability, as well as projecting an image of
families on the road with Tesla. These events can be
greatly informative.
• Youtube Videos
Keeping in line with Tesla’s current efforts, Youtube
videos will help to engage the audiences that cannot
interact with the cars in real life. Additionally,
audiences will look to these videos for news on the
brand because this is a popular way in which Tesla
is currently communicating. This method will satisfy
communication objectives including informing
consumers on the accessibility and affordability, as well
as projecting the image that Tesla is a family car and is
the car of the future.
• TV Commercial
A Super Bowl commercial will reach the largest
number of people and increase awareness tenfold.
• Social Media Posts
Social media, as it is to any brand, is vital to Tesla
because it offers a way for the brand to share with
friends and followers its press conference dates and
locations, Youtube video posts and other important
information and news. This method will satisfy
communication objectives including informing
consumers on the accessibility and affordability, as well
as projecting the image that Tesla is a family car and is
the car of the future.
12

13. Communication Brief
Introduction
This introduction includes but is not limited to
a brief look on Tesla’s top competitors, the nature of the
group’s communication task and a proposed budget for the
IMC plan.
If Tesla chooses to go on with the group’s
recommended plan, commercial development and celebrity
and Youtuber outreach will begin immediately. As a
reminder, this is simply a brief. Further in the report, Tesla
may find a more detailed plan.
Nature of Tesla
Tesla offers premium, safe electric vehicles at a
range of prices. In addition, it offers charging stations and
service centers nationwide.
Role of Tesla
Tesla’s vehicles offer a way for consumers to
travel while maintaining a sustainable lifestyle. Tesla
does this without compromising safety, performance, or
affordability(ish).
Target Audiences
The primary target audience for the new Model X
campaign is the Money and Brains PRIZM segment.
Marketing/Promotional History and
Results
Historically, Tesla has not employed typical
marketing strategies. Using just press conferences, Youtube
and engaging retail establishments, Tesla has managed to
greatly increase sales and profits over time.
Competitors
Tesla faces a range of competitors, from other
electric car makers such as Nissan, to luxury car makers
like Lamborghini or BMW. They also face competition
from other methods of “green” transportation, such as high
speed rail.
Nature and Role of the
Communications Task
Branding this trail as a family-friendly and
accessible route for Tesla users will provide great
opportunities for marketing and advertising. Focusing on
the Model X, Tesla will use press conferences in local
areas to inform a larger audience on the availability and
affordability of the brand. There is also opportunity for a
Youtube video series, which will help to create a family-
friendly and safe image. Social media will supplement all
this, furthering the success of stated objectives. Lastly,
a television commercial placed during the Super Bowl
will speak to a much larger audience, communicating
affordability, accessibility and family-friendliness.
Prime Communication Statement
Tesla is electricity without compromise.
Secondary Communication Statement
Tesla is the safest car on the market. Tesla charging
stations are accessible nationwide. The Tesla Model X is
a sustainable, family-friendly option for electric vehicles.
The Tesla Model X offers a more affordable option for
electric vehicles.
Corporate Image
Tesla electric vehicles are still seen as an
experiment or test run. Tesla is very technologically
advanced, seen as the pioneer of electric vehicles.
Corporate Identity
The Tesla Model X is the family electric vehicle
with an edge. Tesla does not sacrifice style and ingenuity
for efficiency.
Budget (both creation and execution
of the communications activity)
The total budget will be $15 ,049,160. This
will account for a Super Bowl commercial, social media
campaigns and press conferences.
Timing
January to April 2015, coinciding with the release
of the Model S. The main thrust of the campaign will be
leading up to and immediately following the Super Bowl.
Requirements and Policy Limitations
A majority of the campaign will be run over social
media and through press conferences, but will also feature
a Super Bowl commercial and videos featuring celebrity
families.
slogan
Charging Forward.
13

14. Recommended Plan
Media objectives, media plan and
media schedule
• Objectives
Increase social media engagement (posts, likes, shares,
etc.) 25%, Attain a reach of 100 million or more
viewers with Super Bowl commercial.
• Plan
Utilize celebrity connections to increase social media
presence (incentivize posts with merchandise or vehicle
upgrades), work with Tesla users to create YouTube
content focusing on cross-country travel and families,
design and implement a Super Bowl Commercial for
2015 release.
• Schedule
Begin commercial development immediately; reach
out to celebrities and potential Youtubers by the end of
2014.
Basic timing for each media
• Super Bowl Commercial: The commercial will air
February 1, 2015.
• Social Media: Social media campaigns on Facebook,
YouTube and Twitter will run every day in January,
February, March and April.
• Press Conferences and YouTube Videos: Tesla will
host two press conferences a month for four months,
which is eight press conferences nationwide. YouTube
videos will also be posted twice a month during these
four months and will be posted on the weeks in which a
press release is not being hosted.
Discussion of the weight of the
proposed plan over different time
periods
The proposed timeline will ensure Tesla is seen
constantly. With advertisements every day and videos and
press
zconferences every other week, Tesla will raise a storm of
publicity for the four months.
Expected reach
Based on numbers from 2014’s Super Bowl,
Tesla should expect to reach 112.2 million viewers from
the commercial alone. From Facebook advertising, Tesla
will reach 540,000-1.4 million people. From Youtube
advertising, Tesla will reach 240,000-960,000 people.
Though an exact reach from Twitter advertising cannot
be determined, the group can guarantee there will be a
maximum of 80 Twitter engagements a day for all 120
days. These advertising efforts will boost the reach for
Tesla’s press conferences and YouTube videos.
Recommended budget
Overall amount
• $15,049,160 total for a Super Bowl commercial, social
media campaigns and press conferences.
Super Bowl Commercial: $11,000,000
• $9 million for a 60 second advertisement (Steinburg)
and $2 million for creation.
• This will reach about 112.2 million people. This
number is based on the total amount of viewers from
the 2014 Super Bowl (MarketingCharts).
Social Media: $49,160
• Facebook: $6,000 over four months (120 days) for a
reach of 4,500-11,667 viewers a day, or 540 thousand
to 1.4 million users total (Facebook). This campaign
will promote clicks to Tesla’s website, where they will
be able to learn more about press conferences in their
area and Youtube videos of their interest.
• Youtube: $11,160 over four months (120 days) for a
reach of 2-4 thousand views a day, or 240 thousand to
960 thousand users total. This campaign will promote
different videos on Tesla’s Youtube channel (Youtube).
• Twitter: Tesla’s Twitter campaign will focus on Tweet
engagements. There will be a daily maximum of $200
spent a day for four months (120 days), and there will
be a $2.50 maximum per bid engagement. This is a
high per bid engagement cost, which means Tesla’s
advertisement will have a higher respective reach. The
total cost for the four-month campaign will be $24
thousand (Twitter).
• Social Media Manager: $8,000 for four months of
social media management. This includes posting
statuses and videos, replying to comments and
questions and engaging with audiences.
Press Conferences, Video Creation and Celebrity
Incentives: $4 million
The group wants Tesla to feel like the sky’s the limit
with this area of the campaign. These components as
a team will be the most engaging and interactive. The
group knows there will be a plan in place for these
events and videos, but also acknowledges there will be
some improvisation throughout the process. For this
reason, the group has allocated a large, but reasonable,
amount with which Tesla can be creative.
14

15. Percentage allocations of the total
budget for each media
Super Bowl Commercial: 73.09%
With the highest reach (112.2 million) of any media
chosen, a commercial to be played during the Super
Bowl deserves the majority of Tesla’s advertising
dollars. These commercials reach a wide range of
people, including families who may be interested in
a safe, sustainable and exciting vehicle. It will also
put the brand in front of consumers who may have no
knowledge of the brand.
Social Media and Manager: .33%
This very low percentage by no means reflects the
importance of this medium. Social media, while
powerful, is incredibly inexpensive to advertise
through. The group has chosen its social media budget
based on reach, and it plans to reach hundreds of
thousands to millions of people with these campaigns.
Press Conferences, Video Creation and Celebrity
Incentives: 26.58%
The group wants Tesla to feel like the sky’s the limit
with this area of the campaign. These components as
a team will be the most engaging and interactive. The
group knows there will be a plan in place for these
events and videos, but also acknowledges there will be
some improvisation throughout the process. For this
reason, the group has allocated a large, but reasonable,
amount with which Tesla can be creative.
15

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