Tesla Marketing Plan

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<ul><li> Franky Andrade Jason Holloway James Payne Collin Roy Brett Sheffield </li> <li> Executive Summary Tesla has established themselves as one of the leaders in the Electronic Vehicle market and a leader in innovations. In order to further their control of the EV market, we have developed a strategy to produce an entry level, luxury electronic vehicle that maintains Teslas core values which allows them to compete on a broader scale with electronic vehicles and hybrids. After taking everything into consideration, we believe that our strategy will allow Tesla to gain market share, gain brand awareness, generate brand loyalty and earn profits through our new programs. We have developed the following plan for Tesla: We will develop a brand new, entry level luxury sedan that is fully electric and named the Gen3. It will still have the core components to a Tesla vehicle, but created with a budget in mind to grow the potential target market. This will allow more customers to get their hands on a fully electric vehicle at an affordable price, while still being able to grow the Tesla brand. We have also introduced a variety of programs in order to improve brand loyalty as well as giving more options for purchase, including Amplify Your Ride and the Test Drive America campaigns. We will also launch an integrated marking campaign with advertisements in magazines and though web sources. The first car will ship in early 2015 and will be issued to those who reserved the vehicle in the second half of 2014. We will host the Test Drive America campaign in the second half of the year after the car has been fully announced. This will give potential drivers the chance to drive the car and to place a reservation. The demand for Gen 3 will be estimated based on the growing EV/Hybrid market over the next 5 years. We have to ability and resources to increase demand if the market grows beyond our estimation. With the expansion of our Supercharger station that was previously in the works our electric vehicles will be more appealing to the mass market. The strategy is proposed to grow Teslas market share in the EV/Hybrid marketplace by 5% over the next five years and provides a 20% ROI per year for the last three years, with no losses after the first year. The plan will bring in a total of $7,816,354,565 over five years in revenue and a total of $1,605,493,432 will be profited. 2|P a g e </li> <li> Current Standing Before we continue, we must have an overview what Tesla is about to continue on the same path in the future. Vision Statement: At the core, Tesla Motors believes that electric cars should not be perceived as a sacrificial mode of transportation. Tesla Motors has brought the best of both the automotive and technological worlds together by permanently etching the image of electric cars being a step backwards in performance, efficiency, and design. Tesla Motors key is the 100% electric power terrain, which not only propels us in the present, but simultaneously establishes a strong foundation for the future. They have set out to forever alter the current perceptions of electric vehicles, as well as making electric cars a viable alternative. Tesla has produced a car that is, finally, beautiful and exciting to drive along with being the most efficiently produced automobile on the planet. Core Value: ACleanStart:ASiliconValleyapproachmeanswemovefastandconstantlyinnovate. CommittedToElectric:Teslamakesthebestelectriccarsandelectricpowertrainsintheworld. Tesla'stechnologyoffersthemostefficientpathtoasustainableenergyfuture;NoHybrids,No Hydrogen,NoHype. BuiltAroundTheDriver:Thedriver,thecar,andtheenvironmentconnectinwaystheyvenever connectedbefore. SparkingTheEvolution:Teslasgoalistoacceleratetheworldstransitiontoelectricmobility withafullrangeofincreasinglyaffordableelectriccars.Werecatalyzingchangeintheindustry. Master Plan: 1. Build a sports car. 2. Use that money to build an affordable car. 3. Use that money to build an even more affordable car. 4. While doing above, also provide zero emission electric power generation options. Mission Statement: Our intent is to offer a compelling customer experience while gathering rapid customer feedback and achieving operating efficiencies, better control over the costs of inventory, warranty service, pricing, and the development of the Tesla brand. Teslas Principal Marketing Goals are to: Generate demand for our vehicles and drive leads to our sales teams. Build long-term brand awareness and manage corporate reputation. Manage our existing customer base to create loyalty and customer referrals. Enable customer input into the product development process. 3|P a g e </li> <li> Former Target Market (Roadster): Target: The original target of the Tesla Roadster included the upper class business executives and others who were looking for a high-end luxury car. The Tesla Roadster required a large down payment and cost over $100,000, leading it to be unavailable to most consumers who were looking at higher-end cars, or below. Segment: The segment of the market focused on males who were looking for a luxury sports car that also had an electric motor. The Tesla Roadster was not only efficient, it was also fast and drove like a true sports car. The segment was dominated by males because of the sports car aspect of the brand and the availability. Positioning: The Tesla Roadster was marketed as a high-end luxury sports car that was fully electric and able to compete with other high level luxury cars performance. While the price was not cheap, it was cheaper than many other high-end sports cars that were on the market at that time. It was not made to compete with the sedans, but with the two-seater car market. The all electric vehicle also provided an incentive to environmental conservative drivers, allowing for zero emissions as they drove. Current Target Market: Target: The current customer of Tesla is purchasing the Model S vehicle that is priced at 70k. The customers are successful business executives and entrepreneurs who are also city dwellers that are tech savvy and green friendly. These are wealthy and early adopters whose income levels put them in the upper-middle class segment. Segment: The segment of the market is individuals looking for a premium luxury car with the added benefit of being fully electric. Tesla is targeting individuals who are upper-middle class baby boomers with typical incomes of over $100,000 which is based on 77% of our buyers falling into this particular segment. Ideally, more males are inclined to purchase our vehicles, so when we market our strategies, we want to keep this in mind when addressing the audience. The majority of the segment is dominantly male. Positioning: The Model S is posting as a luxury car with great performance that simply has the added benefit of being a fully electric vehicle without sacrificing style and performance. This high-end luxury car is not missing anything from a traditionally European luxury car and thats how Tesla wants concept to be. They do not want to convey that it is primarily an electric car because at the moment, electric cars do not have a sexy or glamorous reputation because of the cars they call "hybrids" that have horrible performance and style. 4|P a g e </li> <li> New Target Market: Target: In order for Tesla Motors to keep growing now and into the future, it is going to be important to expand their target market to reach more consumers. Expanding our target market to the generation Y, mid 20s to early 40s, middle class working adults, Tesla will be able to utilize their facility while increasing production. This target market will be pinpointing the young professionals that are looking for an entry level luxury car. According to NADA DATA, the average selling price for a new car in 2011 was around $30,000 which shows that the majority of the consumers are not spending a lot of money on cars. Segments: We are going to segment the market for our new targets in three categories; eco friendly consumers, tech savvy and entry level luxury cars. For the eco-friendly consumers, we will be able to reach them by offering a fully electric car that not only has more than double the driving range of the electric competitors, but also has the style and performance that Tesla is known for. For the tech savvy segment, we can reach them because the fully electric car is a growing technology which most consumers are not currently utilizing. Not only will the car itself be new technology, the interior of the car will really attract the tech savvy consumer with the basic options, as well as the add-ons, that will attract them as well. The entry level luxury car segment will attract the young professionals that are in the early stages of their careers and who will want to drive a luxury car. By having an entry level price, we will be able to attract more customers which will lead to future sales and brand loyalty. Positioning: We are going to position this car for the entry level luxury car that also has the added benefit of being fully electric while not losing any performance. Most electric cars are viewed as "unattractive" to younger buyers through lack of design and performance. By creating an entry level Tesla car, we can use our design and technology to change that image. By having an entry level luxury car that is in the $30,000 price range, that also has the benefit of being fully electric, will attract more buyers that are currently looking for electric cars or entry level luxury cars because of the added value of zero emissions, and by having this added value, it will position our brand to save consumers more money than the traditional entry level luxury cars. 5|P a g e </li> <li> Survey Questions 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. Gender Age Personal Income Work Status Education Ethnicity State/Country What type of community do you live in? How did you purchase your current vehicle? What brand of vehicle do you currently own? How many miles do you currently drive daily? How much do you currently spend on gas a week? Have you previously or currently owned a hybrid vehicle? Have you previously or currently owned an electric vehicle? Scale the factors which would influence your purchasing decision? What are you currently looking for in a vehicle? What features impact your purchasing decisions the most? Rate according to your engine preference. How Influential are/would the following factors be on your purchasing decision of an electric vehicle? Do you think electric cars are a good return on investment? How much would you be prepared to pay for a new/used NON-electric vehicle? How much would you be prepared to pay for a similar model but electric vehicle? Are you environmentally conscious? What do you think are the benefits of owning an electric vehicle? For you, what are the drawbacks of an electric vehicle? Do you plan on buying an electric vehicle in the future? If so, how long until you plan to purchase an electric car? If the following vehicles were available as electric vehicles, what type of vehicle would you most likely buy? Do you think it is too early for electric cars, considering they may not be reliable enough and would you prefer buying a hybrid car? (Using both fuel and electricity) 6|P a g e </li> <li> Survey Results 7|P a g e </li> <li> 8|P a g e </li> <li> 9|P a g e </li> <li> 10|P a g e </li> <li> 11|P a g e </li> <li> 12|P a g e </li> <li> 13|P a g e </li> <li> Summary of Findings According to the survey we have found that consumers are thinking about purchasing an electric car in the future. The majority of the respondents, 62%, chose maybe when asked if they would buy an electric car in the future while 28% said yes. The majority of these people planned to purchase an electric car in 1 to 4 years. We found what consumers looked for in their cars and the drawbacks in buying an electric car. These findings will enable us to make a car that is suitable for the consumers and also convert them into emission free driving. Not many people actually owned an electric car before. The majority, 74%, answered "no" when asked if it was too early for electric vehicles. This information lets us know that there is a demand in the consumers mind and that it is a good idea to have electric cars at this time. From our primary research we have also found out that brand image was a strong factor in purchasing a vehicle and what people were looking for. This makes it very important for us to continue to improve our brand image so that it will be appealing to all consumers. "After sale service" was picked the most as having the strongest influence on purchasing decision. This is why we will need to improve our service plans for our customers and also for new customers. Having a solid service plan that the customers like will just add to the value of owning a Tesla. The influential factors on purchasing an electric vehicle were mileage range, style, price and performance. Here at Tesla we already offer industry leading mileage range and we are known for the style and performance of our vehicles. This leads us to the strongest influence, which is price. By selling an expensive car we are only targeting a small market of a select few that can afford it. This will allow us an opportunity to create a lower priced vehicle so that we can reach the mass market. Also, based on our survey findings, we asked the consumers how much they would be prepared to spend on a NON-electric car and how much they would be prepared to spend on a similar model but electric. For the NON-electric cars the top two price ranges were $30,001 - $40,000 at 44% and $40,001 - $50,000 at 32%. When asked how much they would be prepared for a similar model but electric the price ranges were $30,001 - $40,000 and $40,001 - $50,000 which were both tied at 26%. Another 22% of the respondents chose that they were prepared to spend $50,001 - $60,000 on an electric vehicle while only 10% of the respondents chose that they would be prepared to spend over $60,000. This shows that the consumers are willing to pay more for the electric vehicl...</li></ul>