Professional Documents
Culture Documents
Hampton Abbott
Ellie Gray
Heather Husse
Taylor Tutton
Mason White
Table of Contents
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.
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.
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.
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
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.
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 carshopper.
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.
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.
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.
ESPN
Median Age: 61
Median Household Income: $53,000
Viewers ages: 25 - 54
More than 2 million primetime views
Morning and Evening slots on weekdays
Median Age: 45
Median Household Income: $48,000
Currently covers 99.1 million households
Delivers more men that are in the 25-54 age group who are in upscale households than
any other cable network
Weekend slots during important sporting events
Average $150,000 per 30 second slot
CBS
Median Age: 53
Viewers ages: 18 - 49
Sunday night slots
Average is $100,00 per 30 second slot
FOX
Median Age: 53
Median Household Income: $63,000
72% Males Viewers
Buy Evening slots during the week
Reach is 15 million per month
Golf Channel
Median Age: 54
Median Household Income: $86,300
Buy slots on weekends and during tournaments such as the Masters
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Driving Experiences
We will have several tracts in which the guest will be able to drive as well as ride passenger.
Through these test drives the guest will be able to see how fast the pick-up on the car is, and
test how well the car handles. After this driving experience the guest will know they can have it
all!
Event Locations
In each of the following cities we will host one of our events. We choose these locations
because we believe they have a huge percentage of people that fall into our target population.
Below each are some facts and demographic information about the area.
Beverly Hills, CA
Median Age: 48
Median Income: $105,500
Suburb of Los Angeles
Close proximity to several Tesla galleries and Super Charger stations
Denver, CO
Median Age: 39
Median Income: $74,600
15 miles from a Tesla Gallery
Atlanta, GA
Median Age: 39
Median Income: $66,900
17 miles from a Tesla Gallery
McLean, VA
Median Age: 46
Median Income: $167,100
55% of the population makes at least $150,000 per year
Suburb of Washington, DC
This city is currently home to one of the Tesla galleries
Darien, CT
Median Age: 38
Median Income: $154,700
48% of the population makes at least $150,000 per year
25 miles from a new Tesla store
Event Images
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Timeline
February
Launch Commercial during the 2014 Super Bowl
Air Commercial nationally on CBS and ESPN
Start Tesla Cross Country Tour in Los Angeles, CA
Move tour to Denver, CO
Launch Social Media Campaign
March
Air Commercial on FOX and Golf Channel
Move Cross Country Tour to the East Coast starting in Atlanta, GA
April
May
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