Marketing Plan - Tesla Motors

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University of South CarolinaMKTG 455: Marketing Communication and StrategyProfessor: Mark NewsomeCOURSE PROJECTMarketing Plan - Tesla Motors

TRANSCRIPT

  • 1

    Marketing Plan: Tesla Motors Hampton Abbott Ellie Gray Heather Husse Taylor Tutton Mason White

  • Table of Contents

    Executive Summary .............................................................................................................................. 1 Meet the Team ........................................................................................................................................ 2 Situational Analysis .............................................................................................................................. 3 Objectives & Goals ................................................................................................................................ 4 Target Markets ...................................................................................................................................... 5 Research ................................................................................................................................................... 6 The Big Idea.8

    Part One ....................................................................................................................................... 8

    Part Two..10

    Part Three ................................................................................................................................ 13 Budget and Timeline ......................................................................................................................... 16

  • 1

    Executive Summary Tesla is a new innovative, luxury brand with a fast performance. However, the brand is recovering from a poor current perception of being unreliability and unsafe. The Tesla Model S suffered due to reports of spontaneous fires in the cars. However, recent safety ratings and awards have shown that the Model S is indeed a safe and reliable car, perhaps the best on the market. The Tesla Model Ss price point of $71,000 has allowed the emerging brand to capture 8.4% of the 400 billion dollar electric luxury vehicle market, which is expected to continue expanding. Also, Teslas unique approach, replacing pesky dealerships with informative stores and convenient online shopping, has intrigued the market. With a target market meant for successful upper class families who are tech savvy and green friendly, Tesla competes with brands such as BMW, Mercedes, Lexus, Audi, Volt, Prius, and SmartCar. Our marketing plan seeks to prove to our target market, specifically upper-class families, that the car has been re-engineered to be much safer and more reliable and that Tesla is a brand you can trust; thereby converting consideration of the brand into purchase. In doing so, we will also increase social media presence and Teslas market-share in the luxury car market. The campaign will include a commercial to be aired once at the Super Bowl and then pulsing on network television for the rest of the campaign. It will also include a cross-country tour, to allow consumers a hand-on experience to test Tesla cars and engage with the brand. Finally, we will rev up Teslas social media presence on Facebook and Twitter, complementing the other parts of the campaign.

  • 2

    Meet the Team

    Hampton Abbott Hampton Abbott about is originally from Charlotte, NC, coming to the University of South Carolina in 2011 in order to pursue a degree in Marketing at the Moore School of Business. Hampton has also worked in marketing for the Universitys Athletic Department as well as State Farm, enabling him to bring an experienced perspective on sales and promotional awareness.

    Ellie Gray

    Born and raised in Chicago, IL, Ellie came to the University of South Carolina to study marketing and management at the Moore School of Business. Although she has little background in the car industry, she brings a fresh perspective to the Tesla management team as well as a keen eye for marketing and communications strategy.

    Heather Husse

    A South Carolina native from Greenville, SC, Heather is a senior at the University of South Carolina studying Marketing. With a background in marketing and event planning across various industries, she has the knowledge and experience to bring a solution to any challenge the Tesla management team has to offer.

    Taylor Tutton

    Taylor Tutton came to the University of South Carolina in 2011 to study business. As a senior he is majoring in both management and marketing and brings customer service experience to the Tesla Marketing Team.

    Mason White

    Born in Greenville, NC then moved to Fort Mill, SC after high school. Currently attending the University of South Carolina for Marketing, Management, with a concentration of Real Estate Investment. I bring industry knowledge and background to the team.

  • 3

    Situational Analysis

    Strengths

    Tesla has been rated with the highest safety rating of any car by the National Highway and Traffic Association, along with other awards, such as Automobile Magazines 2013 Automobile of the Year.

    It is an electric car that is also a quality luxury product, offering sophisticated software and technology and quality performance.

    Tesla has over three hundred patents on in house technology. Tesla has a unique selling strategy that differentiates itself from other traditional

    car dealerships. By selling in stores instead of dealerships, Tesla allows the consumer to not feel as pressured to buy and actually enjoy the car buying experience.

    Because it is better for the environment, the United States Government offers up to $7,500 in tax credit and depending on the state it may offer $605 to $9,600 worth of incentives for purchasing a Tesla.

    Weaknesses

    There are only 65 Tesla stores located throughout the country. Because consumers can only purchase Teslas in-store and online, this limits the companys exposure to potential customers.

    Teslas have had malfunctions associated with their batteries, like catching on fire.

    Teslas are limited to the range of the battery charge. There is a lack of brand awareness because it is a relatively new company with a

    small marketing budget.

    Opportunities

    Tesla is planning to open more stores and Superchargers throughout the United States.

    There is an opportunity to broaden Teslas social media presence. There is a growing market and increased acceptance for electric cars. Because

    of the inflation of gas prices, electric cars reduce the cost of ownership over time.

    Threats

    States such as Texas and Michigan dealership lobbyists could start a trend of banning stores because they feel threatened by Teslas selling model.

    The infrastructure of Teslas charging stations cannot compete with amount gas stations that are currently around the U.S.

    Larger automobile companies are contributing more resources to engineering electric cars than Tesla can contribute.

  • 4

    Objectives & Goals Objectives

    Create awareness of our increased safety rating to regain target market trust in our brand and convince our identified targets to purchase our product.

    Increase awareness of the location of Supercharger stations and their convenience and ease of use for current and prospective Tesla owners.

    Directly reach our target audience of mothers and fathers looking for a safe, reliable and stylish luxury car for their families.

    Create a hands-on experience to allow consumers to see for themselves the benefits of driving a Tesla.

    Increase sales Increase market share in the luxury car market Increase social media presence

    Goals

    Increase awareness of new safety ratings by 30% Double social media followers (Facebook 1.5 mil; Twitter 1 mil) Increase sales by 5% Double share of luxury vehicle market to 3% (currently 1.4%)

  • 5

    Target Markets The target market is successful upper-class business people who are tech-savvy and green friendly, with an annual income over $150,000. Since the Model S has an added seat feature and can seat up to 7 people, we want to focus on families. Included in the family category would be people who have not yet started a family but are looking to in the future. Families are concerned with safety and performance. Upper class families are also concerned with style and luxury when shopping for a car. By separating the target marketing into two segments, the father and the mother, we can clearly see how Tesla fits perfectly to solve their problems when shopping for a car. The two segments that we are focusing are:

    1. Fathers a. Age 30 to 60 b. Middle to Upper Class c. Income over $150,000 d. Interested in the safety of his children and impressing his friends.

    The persona for this segment is middle to upper class men with children or about to have children. The father is responsible for driving them to school, picking them up, and bringing them to any extra curricular activities that they might have. He enjoys watching football and playing golf with his friends and coworkers. He is shopping for a new car to be able to fit his children comfortably and safely, and is struggling with sacrificing his desire for a luxury sports car for something more practical like a minivan. The Tesla Model S is a perfect solution to this problem as it provides him with the style and performance of a luxury car, is safe for the whole family, while providing the added benefit more cost efficient and better for the environment. Rather than giving up the sports car they like to show off to their friends, Dads can have it all with the Tesla Model S.

    2. Mothers a. Age 30 to 60 b. Middle to Upper Class c. Income over $150,000 d. Biggest interest is the safety of her children

    The persona for this segment is a married woman with children, or about to have children. She is shopping with her husband for a new car. She is not worried about style or luxury when shopping for a car; rather her main concern is the safety of her children. She might think that a minivan is the best and most practical transition for her family. As the decision maker in the family, she must be convinced of Teslas superior safety rating, cost effectiveness, and practicality in order to forgo her preconceived notions of unreliability.

  • 6

    Research Our research has found that Tesla is suffering from lack of awareness, as well as a negative brand image due to several fires in the Model S. With a price point of $71,000, Tesla should be rather competitive in the luxury car market. However, Tesla represents just 1.4% of the 400 billion dollar luxury car market, and 8.4% of the electric luxury car market. Our research has shown that the Model S is extremely safe, which should convert to an increase in sales. We have also found that Tesla offers a new selling strategy more fitting to the modern car-shopper. Market Share

    Our research has shown that Teslas main competitors in the luxury auto market are BMW, Mercedes-Benz, and Lexus. Each one of these companies has their own version of a hybrid or electric car. Because they are established brands with a loyal customer base, Tesla is having trouble penetrating the market. However, Tesla offers something none of these companies offer: an all-electric car that looks and feels like a sports car.

    Safety Ratings and Rankings

    The Tesla Model S not only received five out of five stars in one category of the safety ratings, but in all three (frontal crash, side crash, and rollover). This is a rating that only 1% of cars receive. However, awareness of this statistic is alarmingly low. Our primary objective should be to make these ratings into public knowledge, therefore reversing the presumption that the Model S is unsafe.

  • 7

    Along with these outstanding rating, based on the Consumer Reports Annual Auto Issues 1.1 million-person survey, the Tesla Model S was rated the top overall pick. It was rated the number one in quality, reliability, and satisfaction. The Model S was given a rating of a 99 out of 100, making it the highest model ever rated.

    Social Media Voice

    Tesla also suffers from a lack of online presence. Our research showed that Tesla only had 710,000 facebook followers, with the markets leading brands showing an average of three to six million. In order to increase the brands awareness we will have to increase our brands online voice, beginning with social media. Selling Strategy

    Research has shown that the car-buying industry in America is changing. No longer do customers want to visit multiple dealers to find their next car, instead preferring to do more advanced research online. The McKinsey report says the average buyer visits just 1.6 auto dealerships while car shopping, down from 10 years ago when buys visit an average of 5 dealerships. Most people buying a new car are looking for a good deal, no haggling, and no wasted time. According to a survey done by Cisco, almost half of the U.S. consumers said they would be content with shopping for a car at a mall kiosk rather than an auto dealership. By not having any dealerships around the country, Tesla is leading the way for this change in shopping experience. When shopping for a Tesla, there is no negotiating, you pay for what you get. Their model is very similar to Apple. Tesla stores are solely informational; you have to buy your Tesla online. Employees are paid on salary and benefits and do not get commission. They are trained to educate the population about Tesla motors, not to make a sale. This way, customers can go in store without fear of salesmen haggling or pressuring them to purchase, just getting more information about the benefits of the car.

  • 8

    The Big Idea Where Does Your Charge Take You? Families are on the move. Sports practices, school, work, family road trips, you name it; families are driving there. When shopping for the vehicle to get them places, mothers are looking for safety for their children; fathers are looking for luxury and style to show off to their friends at the golf club. With seven seats to fit the whole family and the highest safety rating a car can get, Tesla has it all. Where Does Your Charge Take You? encompasses the benefits that Tesla has to offer - a cost efficient electric battery charged vehicle that takes the whole family places safely in style. You want to take your Tesla to work. You want to take your Tesla to soccer practice. You feel safe driving your newborn home from the hospital in your Tesla. Tesla is perfect for the whole family.

    The Big Idea Part 1: Commercial

    We will kick off the campaign with a national commercial, first airing at the Super Bowl. The Story: A family is leaving the hospital after the mom just had a newborn baby. Mom (with newborn), Dad, Grandma, Grandpa, and two small children all are present. Dad has the keys and clicks them to unlock the car, a minivan is blocking the view and lights flash tricking the audience into thinking the family is getting in the minivan. However, as the family approaches th...