TESLA MOTORS CAMPAIGN PLAN

KAYLEE SWEARINGEN, VP OF MARKETING AT KSWEAR CONSULTING

SITUATION ANALYSIS

• The Affordable 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

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

CREATIVE ELEMENTS

• Storyboard for a TV spot• Layout and Copy for a Print Ad • Press Release • Facebook Ad and Instagram Ad • Trade show Booth layout and vision

TELEVISION AD

Scene 1: FADE IN FROM BLACK: You hear the engine and the car driving. Wide angle city shot with the Tesla belowScene 2: See the car speeding through the city, looking all fancy and cool with all the Tesla Technology and features inside and outScene 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

PRINT AD

• Shows off 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

PRESS RELEASE

• Press Release 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

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.com215 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

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

seating

seating

Model S

Model 3

CAMPAIGN TEAM

Management

Copywriting Art and Layout Media Account Services Research

MEDIA SCHEDULE AND BUDGETTesla Model 3 Advertising Budget 2017-2018 Budget

Trade Show Budget 8,000,000.00SEMA 2,000,000.00

Las Vegas Auto Show 2,000,000.00Detroit Auto Show 2,000,000.00

Baltimore Auto Show 2,000,000.00Super Bowl Ad 5,500,000.00

30-sec ad spot $5,000,000 Production costs $500,000

Television Advertising 111,616,000.00October - 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 34,068,000March - September 39,844,000ABC 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 13,418,000Print Advertising 9,000,000.00November - April

Reader's Digest 1,500,000Time Magazine 1,500,000

ESPN Magazine 1,500,000Men's Health 1,500,000Motor Trend 1,500,000

Allure 1,500,000Digital Advertising 32,000.00October - January 16,000

Google AdWords 8,000Facebook 4,000Instagram 4,000

February - September 16,000Google AdWords 16,000

Total 134,148,000.00

MEDIA SCHEDULE AND BUDGETTesla 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 1,030,499.95Advertising Budget 134,148,000.00

$135,178,500 x 15%

Total 20,276,775.00

Total Budget 2017-2018 BudgetTesla Model 3 Advertising Budget 134,148,000.00Tesla Model 3 Production Budget 1,030,499.95

Agency Mark Up Costs 20,276,775.00

Total 155,455,274.95

FINAL REMARKS

• KSWEAR Consulting thanks you for the opportunity to work with you on such an

exciting opportunity with the Tesla Model 3

REFERENCES• About Tesla. (n.d.). Retrieved June 03, 2016, from https://www.teslamotors.com/about

• Accelerating Sustainable Transport. (n.d.). Retrieved June 03, 2016, from https://www.teslamotors.com/model3

• Accelerating Sustainable 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 Marketing of an Electric Car. 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 Electric Cars 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 Brilliant Tesla Advertising Strategy, or Lack Thereof. Retrieved May 01, 2016, from http://www.teslarati.com/brilliant-tesla-advertising-strategy-lack-thereof/