Final Advertising Campaign Plan

Campaign Planning Final Compilation 1

Running head: Campaign Planning Final Compilation

Campaign Planning Final Compilation

Kaylee Swearingen

St. Mary’s University


Product Description

The product I decided to do my campaign plan on is the Tesla Motors Model 3. 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).

SWOT Analysis

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

- 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,

- 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

- 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,


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)

2016) $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

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

Marketing Challenges

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.

Past Advertising

Tesla does not do advertising like the rest of the car manufacturers. They do not do

expensive, flashy advertising. Tesla has a strong online network and presence. Tesla designed

their process through online information, commerce and community (D'Arcy, 2013). They also

rely on consumers to say anything and everything they want about their cars (Zart, 2014). They

have the consumers create all the buzz (Zart, 2014). When the buyer has decided to purchase a

car, they make a deposit online, after that, they can arrange a test drive (D'Arcy, 2013). Tesla

created an online user forum and user communities (D'Arcy, 2013). They are marketing Tesla to

have this unique ownership experience, highly exclusive (D'Arcy, 2013). Tesla depends on

earned media like press coverage, reviews and awards for its cars (D'Arcy, 2013). The company

has drilled their message the press which is that Tesla is trying to build the best car ever made

not just the best electric car (D'Arcy, 2013). Since Tesla does not have advertising, the closest to

a public relations person is Alexis Georgeson who stated, “Right now, the stores are our

advertising. We’re very confident we can sell 20,000-plus cars a year- without paid advertising.

It may be something we’ll do years down the road. But it’s certainly not something we feel is

crucial for sales right now” (Zart, 2014).

Brand Guidelines:

Fonts

Heading Fonts: Official Tesla Font or Arial Bold Body Copy Fonts: Arial Color Palette

Tesla Red: C5 M100 Y83 K1 R215 G0 B52 Tesla Gray: C57 M50 Y45 K14 R116 G111 B113


Tesla Black: C75 M68 Y67 K90 R7 G6 B6 Tesla White: C0 M0 Y0 K0 R225 G255 B255 Logos (About Tesla)

Use this logo with sizes proportionate to 159px X 205px



**White logos do not have the drop shadow. This was added so you are able to see the logo. **

Marketing / Communication Goals

Objectives:

1. Engage new users who have never owned a Tesla

2. Increase number of consumers in the target market who associate benefits with Tesla

3. Reach Goal of 500,000 automobiles buy 2018

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.

Timing


The timing of this campaign will be October 2017 – September 2018. At first, I wanted to

start this campaign earlier, but changed this to only eight weeks prior to the Model 3 launch.

October 2017 will be a better fit. There will be information “leaks” prior to the launch starting

October 1st. The official launch will be December 4th.

Audience Demographics

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.

Geography

This specific campaign will be for the United States only with an emphasis in liberal, less

snowy states like California. The message is very specific to the American middle class and

American upper middle class. The messaging and goals of this campaign would not work as a

global campaign.

Media selections with explanation/justification

The media selections for the Tesla Model 3 campaign are television, print magazines,

digital marketing including Google Adwords, Facebook, and Instagram along with major events.

The television advertisements’ frequency will start in October 2017 with at least one

advertisement during the 6 p.m. news daily on ABC and NBC. Television ads will also be

viewed between 7 p.m. until 9:30 p.m. on Tuesdays, Wednesdays and Thursday, again on ABC

and NBC. These days were selected because of their high reach and interest for the shows on

these nights. Another station will be HBO. These television ads will be played before a

television show starts at 7 p.m., 8 p.m. and 9 p.m. on Wednesday, Thursday, Sunday nights. This

frequency will continue until March. This will be to create brand awareness and show the middle

class and upper middle class that they can afford a Tesla. Once March hits, there will be fewer

television ads, just as reminders, keeping Telsa Model 3 top of mind. I will reduce television ads

to only be on Tuesdays, Wednesdays and Thursdays between 7 p.m. until 9:30 p.m. With the

reduction, only one ad will play at 8 p.m. on HBO on Wednesdays, Thursdays and Sundays.


One special television ad that will be run is during the Super Bowl in February 2018.

This is the most watched television event in the United States. The reach is tremendous. The cost

is massive but it will get the word out about the Tesla Model 3.

The print ads will run monthly starting in November in Reader’s Digest, Time magazine,

ESPN Magazine, Men’s Health, Motor Trend and Allure magazines. These would be full page

ads. But the three magazines will have premium spots in Motor Trend Magazine, Readers Digest

and Time Magazine. These magazines are selected because they have high circulations. These

magazines are the among top 100 national magazines with circulations over 1 million (Top 100

U.S. Magazines by Circulation). These advertisements will run every month for 6 months after

launch.

Digital Marketing Tesla will run is a digital marketing campaign involving Google

Adwords and social media including Facebook and Instagram. Google Adwords is essential for

any company that is being searched online. The Google Adwords will be using the highest bid

for the top five keywords for the first month of the launch and run until February. Then these ads

will slow down but not go away. These online ads will be for people searching, Tesla, Model 3,

Electric Cars, Top Affordable Cars, and Best Affordable cars. Social media ads that will be

running on Facebook will be video content showing how affordable, environmental and

luxurious the Model 3 is. These ads will only run the month before, November, the month of

December and the month after January. The Instagram ads will run only the same months at

Facebook. These medias are used to raise awareness and interest in the Model 3.

The final media that Tesla will use for the Model 3 are events. There will be four events

with in that 12-month timeframe that Tesla Motors will be exhibiting the Model 3 at. These


events are the SEMA Show, the Motor Trend International Auto Show – Baltimore and in Las

Vegas, the final event is the North American International Auto Show in Detroit. The SEMA

Show takes place at the Las Vegas Convention Center. The show draws more than 60,000

domestic and international buyers (About the 2016 SEMA Show). This is imperative for Tesla to

attend, since some states require dealers to sell. The two Motor Trend International Auto Shows

in Baltimore and Las Vegas, are a part of the nation’s largest auto show producer and part of the

Source Interlink Companies, Inc (Greater Milwaukee Auto Show). These will be important for

potential customers on the west coast and east coast to check out the Tesla Model 3. The final

show is the North American International Auto Show in Detroit. This show is an international

event and is seen as one of the most prestigious auto shows in the world (North American

International Auto Show). This is also one of the largest media events in North America (North

American International Auto Show). This event will be major for Tesla to get press and to show

off the Model 3 to the world.

Proposed Media Runtime Schedule:

Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18Advertising:Television Print Digital

EventsDetriot Auto Show

Baltimore Auto Show

Product News:

Product Launch Official Launch

Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18Advertising:Television Print Digital EventsProduct News:

SEMA & Las Vegas Auto Show

Pre Launch Leaks


Various Forms of Media

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.

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 Budget


The budget of this campaign is still unclear. But with the importance of Model 3’s

launch, Tesla will need advertise this car as much as they can. The company is financially sound

so they should be able to handle a hefty advertising campaign. According to Elon Must, CEO of

Tesla, the company is currently worth $25 billion and could worth up to $700 billion by 2025

(La Monica, 2015). The total of the entire budget is approximately $155,455,274.95.

Campaign Management Flow and Responsibilities

Management will be our brand strategist who will be assigned only to Tesla. He or she

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: being the hub for everything

involving Tesla, brainstorming development and implementation of Tesla’s campaign needs,

working closely with market researcher to discover insight on target market, and making

recommendations for Tesla knowing competitive market place.

Copywriting department will have a senior copywriter who is also assigned only to Tesla.

He or she 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

Tesla’s projects. He or she will have at least 3 years of 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 a 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 an account manager who will have a great

understanding of this role and the industry with at least 5 years of experience in each. This

person will be Tesla’s go-to for any and all of your needs. This person will be Tesla’s

representative from agency, works closely with the Brand Strategist, assisting 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.

Campaign Deliverables

The deliverables 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. These are in the attached PowerPoint.

Adapting to a Changing Environment

With digital and social media marketing changing and growing, this will be an important

target to keep our eyes on. One day Snapchat, Instagram, Twitter, or Pinterest could be a thing of


the past, being replaced by a new application. It will be important to continue to monitor changes

in this market. If there is a new app, we need to consider if this is a route we should consider

using. After the first six months of the campaign, there will be an audit to determine success.

This will be through impressions, cost per click, website traffic and referring sites success,

number of leads retrieved from tradeshows, and leads from the website. The campaign will also

be audited again at 9 months. Depending on how sales and the campaign is going, Tesla maybe

need to increase their advertising budget and add more components or readjust advertising

dollars.

Tesla is changing their target marketing completely. This is a huge change, and they will need to

be prepared to handle the increased spotlight on them and the increase in production.


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Documents

Final Advertising Campaign Plan