TABLE OF CONTENTS
Executive Summary 1-2
Objective
3
Strategies
4
Tactics
5
Audiences
6-8
Key Messages
9
Situation Analysis
S.W.O.T. Analysis
10-11
P.E.S.T.L.E. Analysis
12-17
Critical Path
18
Evaluation
19
Simplified Budget
20
Overall Budget
Appendix: A
Events Budget
Appendix: B
Tesla Model S
Table of Contents
Executive Summary
Situation Statement
Tesla Motors Inc. is preparing for its Toronto debut in January 2010. Tesla wants to create preorder sales for its debut. The company wants to position its vehicles as viable alternatives to
gasoline cars. It also wants to generate buzz for its cars in Toronto.
Objectives
Create 24 sales by the December 2010 debut of Tesla Motors in Toronto.
Strategy
Use exclusivity to generate hype and therefore sales for Tesla vehicles.
* all audiences live in Toronto or Montreal and earn over $250,000 annually
Audiences
Key Messages
Corporate Executives
Show you are ahead of the curve; go green by driving a Tesla Roadster
Car Buffs
The Tesla Roadster meets your performance needs and without
worrying about your environmental impact
Celebrities
Show your fans you care about the environment by driving a Tesla
Roadster
Executives of Environmentally Sustainable Organizations
Show your commitment to environmental sustainability extends
beyond business by driving a Tesla Roadster
1
Executive Summary
Executive Summary
General Messages:
• Tesla Motors’ cars blend style, acceleration, and handling with advanced technologies that
make them the quickest and the most energy-efficient cars on the planet
• First Teslas available in Canada January 2011; the first store will be in Toronto
• Potential buyers should call 416-555-8899 for more information or to arrange a test drive
Central Tactics
Use Jay Leno as a product evangelist
Win over key influencers and spin off media coverage with an exclusive track event and cocktail
party
2
Executive Summary
OBJECTIVE
The focus of this communications plan is Tesla’s Toronto debut. While creating awareness or
changing attitudes are important for Tesla’s success in the high-end electric performance car
market, the company’s success is ultimately measured by its sales figures. Sales are a more
concrete way of measuring the effectiveness of communication efforts.
For this reason the objective is as follows:
Create 30 sales by the December 2010 debut of Tesla Motors in
Toronto.
3
Objective
STRATEGY
Two approaches to selling high-end automobiles
High-service is another draw for luxury
are most effective: exclusivity and service.
and performance automobiles. BMW offers
training courses to those who purchase its
Exclusivity is commonly cited as a way to
more expensive cars.3 Ferrari offers custom
generate hype for luxury and performance
paint colours and free gear. Tesla Motors Inc.
automobiles. According to Cathal Kelly, feature
uses the high-service approach by sending its
writer, Toronto Star, the new Lexus LFA’s
mobile service units to make house calls to
“looming rarity [is what] makes the LFA such a
maintain vehicles.4
hot commodity” for a car priced at $375,000.1
In an era with limited luxury goods sales, a
Another example of the use of exclusivity
personal sales process is more important than
can be seen in the case of Ferrari’s Enzo.
ever.5 This is why the strategy that will be used
Building up to the release of Ferrari’s Enzo, an
will foster close customer-seller relationships.
enormous amount of buzz was generated from
Another strategy used by many organizations
the vehicle’s limited distribution. The Enzo was
in a recessionary luxury goods market is
offered to only 400 people worldwide, people
targeting extremely wealthy consumers who
who previously purchased a Ferrari F40 and
are always willing to spend on expensive items.
Ferrari F50.2 The result was a media frenzy.The
For Tesla these people can be seen as a core
car’s exclusivity made reviewers excited about
audience as well as key influencers.
the rare chance at a test drive.
Few Tesla vehicles have been available to
For these reasons, the primary strategy
Toronto reviewers so there is likely a sense of
will be to use exclusivity to generate
anticipation for the company’s products. Tesla
hype and therefore sales leads for Tesla
will use scarcity to drive sales and hype in a
vehicles.
similar way.
1
http://www.thestar.com/wheels/article/718540--new-375-000-lexus-likely-to-become-instant-classic
2
http://www.seriouswheels.com/cars/top-Ferrari-Enzo.htm
3
http://www.bmw.com/
4
http://www.teslamotors.com/about
5
http://blogs.bnet.com/bnet1/?p=712
4
Strategy
TACTICS
• Exclusive vehicle test drives for key people
and media at GTA race track or closed
course in the Fall with Jay Leno
• Interviews w/ celebrity owners
of Tesla vehicles (eg. Jay Leno, Chris Bosh)
• Swag/Apparel -Leather jackets, watches for auto journalists and VIP attendees (use
cross promo with Rolex/Harry Rosen)
• Exclusive VIP Toronto cocktail party / art
show, with the Tesla Roadster as art – in
boutique store, set up to mimic a gallery
• Provide attendees first opportunity to
book an appointment, order or test drive
• Tours of showroom/boutique store. Media,
auto aficionados, invite only
• Newsletter in advance targeting key audiences
• Info packages
• Advertising through news media
(eg. Globe and Mail Tesla exclusive in the Wheels section)
• Media kit for launch event
• Partner with Honda Indy Toronto July 16-
18 2010 to provide showcase for vehicle, • Media kit for media track day at Toronto
Motorsport Park in Cayuga, ON
with PR team on-site to field inquiries
• Associated interviews and photos can be • Social media tactics including news release,
website/Twitter/YouTube/Facebook
utilized through online campaign
5
Tactics
AUDIENCES
This communications plan has various key
audiences. The audiences were selected
for their influence on other people as well
as their interest in and ability to afford a
performance electric car. All of the segments
listed appreciate appeals to exclusivity.
Corporate Executives Based in Eastern
Canada
Who they are:
• Live and work in Toronto or Montreal
• Earn over $250,000 annually
• Canada’s “Top 40 Under 40”
• Often in the technology sector
Key Messages
• Show you are ahead of the curve; go green
by driving a Tesla Roadster
• Tesla Motors’ cars blend style, acceleration,
and handling with advanced technologies
that make them the quickest and the most
energy-efficient cars on the planet
• First Teslas available in Canada January
2011; the first store will be in Toronto
• Potential buyers should call 416-555-8899
for more information or to arrange
a test drive
Why we target them:
• They want to be perceived as progressive
and adaptable
• They can afford a $109,000 Tesla Roadster
• Frequently purchase performance/
luxury vehicles
6
Audiences
AUDIENCES
Car Buffs
Who they are:
• Car enthusiasts who earn over
$250,000 annually
• Live in Toronto or Montreal
• Many may be corporate executives
• Dentists, lawyers, doctors,
Key Messages
• Tesla Motors’ cars blend style, acceleration,
and handling with advanced technologies
that make them the quickest and the most
energy-efficient cars on the planet
• The Tesla Roadster revolutionizes driving
corporate executives
• Read publications like the Toronto Star wheels section, Road and Track, Car, DuPont
Registry, Motor Trend, Automobile,
Car and Driver
• Watch Top Gear or Fifth Gear
• Read autoblogs like:
Autoblog,
AutoNorth.ca
CarandDriver.com,
TheCarblog.com,
Automonster.ca
CanadianDriver
• TheTesla Roadster meets your performance
needs and without worrying about your
environmental impact
• First Teslas available in Canada January2011;
the first store will be in Toronto
• Potential buyers should call 416-555-8899
for more information or to arrange a test
drive
Why we target them:
• Tesla vehicles are high performance
(smooth handling and incredibly
fast acceleration)
• Car buffs crave high performance
• They are usually hands on and love to test
drive cars
• Large influence in auto-sport communities
• They can afford a $109,000 Tesla Roadster
7
Audiences
AUDIENCES
Celebrities
Who they are:
• Earnings over $250,000 annually
• Professional sports players who live in
Toronto, Montreal and surrounding area
(Toronto Raptors, Blue Jays and Maple
Leafs, Montreal Canadians)
Executives of Sustainable Companies
Who they are:
• Earnings over $250,000 annually
• Live in Toronto region
• Executives of companies like Enbridge, TD,
Stantec, Sun Life Financial, RBC and power
companies like Ontario Power Generation
• Toronto musicians (Drake, Avril Lavigne)
• Professional Canadian auto racers
(Jacques Villeneuve)
and Hydro One (names are available on the
sunshine list)
Why we target them:
• They want to be seen as progressive
• They want to apply sustainable practices
in home life
• High annual income
Why we target them:
• Want to be seen as trendy/hip
• Have huge impact as influencers on what
becomes trendy/hip
• Behave more publicly than
corporate executives
• Always look for media attention
• They can afford a $109,000 Tesla Roadster
Key Messages
• Show your commitment to environmental
sustainability extends beyond business by
driving a Tesla Roadster
• First Teslas available in Canada January
2011; the first store will be in Toronto
• Potential buyers should call 416-555-8899
for more information or to arrange
a test drive
• Be a leader in your home life as well as
your work life by driving an electric car
• Get there guilt free without gas!
Key Messages
• Show your fans you care about the
environment by driving a Tesla Roadster
• Be the first to show that green is sexy
• First Teslas available in Canada January
2011; the first store will be in Toronto
• Potential buyers should call 416-555-8899
for more information or to arrange
a test drive
8
Audiences
KEY MESSAGES
•
Zero emissions, zero guilt
•
0-60 in 3.9 seconds. No sacrifices.
•
Drive quickly, tread lightly
• Who says green isn’t sexy?
• Toronto to Ottawa without filling up
•
First Teslas available in Canada January 2011.
•
Make a statement
•
Instant freedom
• Tesla Motors designs and sells high performance, super efficient electric cars.
• Tesla Motors cars join style, acceleration, and handling with advanced technologies that make
them the quickest and the most energy-efficient cars on the planet.
• First come, first served.
9
Key Messages
S.W.O.T. ANALYSIS
Strengths
• Quickest and most energy-efficient electric car on the market 1
o Range of 400 kilometres on a single charge (roadster)
o 0-60 mph in 3.7 seconds (roadster)
• Patented technology and other technologies 2
o Electric powertrain components
o Builds many of the components in its car (integrated supply chain)
o Largest, safest and most advanced lithium-ion battery used in car
o One of the largest and best factories in the world
• High-profile clients including Jay Leno, Arnold Schwarzenegger and George Clooney
• Strong website; good resource for information about Tesla products
• Tesla brand is respected worldwide
o In November 2009, Advertising Age selected Tesla as one of “America’s hottest brands”
in a special report highlighting the year’s 50 top brands 3
Weaknesses
•
•
•
•
No economies of scale; small-scale operations and low sales volume (1,000 sales to date) 4
Expensive: can only cater to an audience with means (Roadster costs $125,000)
Narrow product line (only the roadster is available, model S available in 2011) 5
Limited operating history
Tesla Roadster
http://www.teslamotors.com/roadster
http://earth2tech.com/2009/01/13/tesla-to-supply-powertrains-for-daimler-smart-evs-surprise/
3
http://ir.teslamotors.com/sec.cfm
45
http://www.teslamotors.com/about
1
2
10
S.W.O.T. Analysis
S.W.O.T. ANALYSIS
Opportunities
• Toronto is a new market for Tesla
o Canadian market is untapped, Tesla will be the only fully electric vehicle
o 9,500 hybrid vehicles were sold in Canada in 2006 (0.5 percent) of total car sales, but
this number is expected to rise dramatically 1
o Tesla Roadster approved for roads by Transport Canada
• According to Frost & Sullivan, the market for electric-based vehicles is expected to grow
to approximately 10.6 million units worldwide (approximately 14 per cent of new vehicles
sold by 2015) from approximately 1.75 million units (3 per cent of new vehicles sold in
2008) 2
• Partnership with Toyota Motor Corporation
• Volatility of oil market and industry
o Disasters like BP exemplify the need for clean-energy alternatives
o Oil is not a sustainable energy source, therefore governments and companies are
looking for alternative energy opportunities
Threats
• Large motor companies devoting more resources to developing electric cars and cars fuelled by other alternatives
o GM and Toyota have each invested over $1 billion in hybrid and plug-in electric vehicle
programs 3
• Limited charging infrastructure
1
http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20070411/hybrid_cars_070411?s_name=&no_ads
23
http://ir.teslamotors.com/sec.cfm
11
S.W.O.T. Analysis
P.E.S.T.L.E. ANALYSIS
Political Factors
Tesla Motors’s debut into the Toronto market
is well planned with the current political
climate.
Political factors related to Tesla
Motors, Inc focus mainly on how and to what
extent the Canadian government intervenes
with the economy in Canada. After review
of political factors including areas such as tax
policy, labour law and environmental law, it can
be documented that Canadian and American
Tesla Roadster
governments have had great influence on
The Ontario government has announced
withholding the electric car to the mainstream
that it wants to have one out of every 20
public. It is no secret that prior endeavours
vehicles driven in Ontario to be electrically
to produce electric vehicles were dispelled in
powered by 2020. To help achieve this goal, the
North America. Hybrid vehicles however, have
Ontario government introduced green vehicle
been making a serious push in the marketplace
incentives with rebates from $4,000 to $10,000
and electric vehicles are gaining traction within
for qualifying vehicles purchased after July 1,
provincial and federal government legislation
2010
in Canada.
Legislation recently passed by
would also receive green licence plates that
Vancouver’s city council now requires all new
would allow drivers special privileges including
condominiums built in the city to install the
unrestricted access to HOV lanes regardless of
240 volt outlets needed to charge the Tesla in
occupancy, access to public charging facilities
20 per cent of all parking spots - the first city
and parking at Ontario government and
in North America to do so. 1
GO Transit lots. 2
1
2
(including Tesla’s). Qualified vehicles
http://www.vancouversun.com/technology/Canada+already+plugged+electric+cars/1782389/story.html
2
http://news.gather.com/viewArticle.action?articleId=281474977738852
12
P.E.S.T.L.E. Analysis
P.E.S.T.L.E. ANALYSIS
Economic Factors
not held as pump prices have increased almost
Economic factors include economic growth in
40 per cent in the United States.2 The new
the alternative energy industries, Tesla’s recent
Harmonized Sales Tax in Ontario has increased
partnership and major changes within the
the taxation on pump gas by
insurance industry. These factors have major
impacts on how Tesla will be able to operate
eight per cent as of July 1, 2010.3 As taxation
and make decisions.
expands to incorporate the new practices of
green business, the much hyped “carbon tax”
The cost of operating a vehicle is increasing
and many of the policies and instruments to
due to many factors, mainly fuel costs and
measure have not been implemented in
insurance.
North America.4
According to the Consumer
Price Index, transportation prices in Canada
rose four per cent in the 12 months to May,
Economic
incentives
from
the
Ontario
2010 after increasing six per cent in April. In
government offering rebates and insurance
addition to paying higher prices for gasoline
companies offering discounts on auto insurance
and passenger vehicles, consumers paid five
for hybrid and EV (electric vehicle) cars, there
per cent more for passenger vehicle insurance
truly has not been a better time to seriously
premiums.1 In the past, it was true that crude
consider this type of transportation. 5 The cost
oil prices were synonymous with the price of
of electricity however, is also increasing.
gasoline; however since 2000 this historical
trend has
http://www.statcan.gc.ca/subjects-sujets/cpi-ipc/cpi-ipc-eng.htm
2
http://www.gao.gov/new.items/d051047t.pdf
3
http://toronto.ctv.ca/servlet/an/local/CTVNews/20100630/ont-hst-gas-hudak-wilkinson-100630/20100630
4
http://en.wikipedia.org/wiki/Carbon_tax
5
http://livegreenstyle.com/go-green-and-save-money
1
13
P.E.S.T.L.E. Analysis
P.E.S.T.L.E. ANALYSIS
Economic Factors - continued
Tesla recently announced a partnership with
Recently, the media has portrayed the
Toyota Motor Corporation1 that will help
automotive industry, particularly for start-ups,
achieve Tesla’s goal in producing increasingly
as removed from the romance of yesteryear. It
affordable electric cars to mainstream buyers.
is increasingly difficult economically to create,
The benefits from this partnership will be
design and manufacture vehicles.3
mutual and significant, as Japan is positioning
itself to be a market leader in hybrids
and EV vehicles.2
1
http://www.teslamotors.com/media/press_room.php?id=2509
2
http://livegreenstyle.com/go-green-and-save-money/
3
http://hybridcars.einnews.com/article.php?nid=553
14
P.E.S.T.L.E. Analysis
P.E.S.T.L.E. ANALYSIS
Social Factors
Social factors are undoubtedly related to
are also losing faith in petroleum fuel and the
political and economic circumstances and
associated costs in production, especially in the
include the cultural aspects with increases in
wake of environmental calamities like the BP
environmental consciousness, attitudes and
oil spill in the Gulf.
emphasis on green/eco products. These trends
affect the demand for a company’s products
Tesla’s “zero sacrifice” Roadster and the
and how that company operates. For example,
$101,000 US
Tesla provides a product that will produce
price tag gives the affluent buyer a ticket to
zero emissions but at a cost – approximately
exclusiveness. Part and parcel of the green
$129,000 US - that limits it to very few as a
revolution is the elite and celebrity aspect
viable alternative to an economically friendly
historically associated with owning hybrid
gasoline car.1
and electric vehicles. The consumer is also
concerned due to hybrid and electric vehicle
The conversation no matter where you go is
performance, or lack thereof. Tesla’s Roadster
focused on the environment, carbon footprints
answers this with acceleration faster than most
and greenhouse gases. With the trend for
sports cars of the same price yet produces no
consumers to purchase products that are
emissions. Therefore, while the brand is not
deemed “eco” friendly3, these trends can be
aimed for purchase by the every man, the cool
finite as price still plays a significant role in
and wow factor of the vehicle fits into the
consumer buying decisions.3 Consumers
desires of car enthusiasts.
1
http://www.cfozone.com/index.php/Careers-Management/Businesses-embrace-going-green-consumers
2
http://www.wpp.com/wpp/press/press/default.htm?guid=%7B7d135945-e34d-456b-a209
3
http://www.bizreport.com/2010/05/kelkoo-price-main-barrier-to-consumers-going-green.html
15
P.E.S.T.L.E. Analysis
P.E.S.T.L.E. ANALYSIS
Technological Factors
Technological
factors
include
purchasing
technology with incentives, mentioned earlier
in the report by the government of Ontario.
Technically speaking, the electric technology
powering the Tesla line-up is state-of-the-art.
The problem however, is where owners will be
able to go to charge up away from home when
beyond the roughly 400 kilometre range. In
California, the Department of Transportation
has created charging stations throughout the
state and listed them on a publicly accessible
website.1 Canada is already “plugged in” for
electric charging stations as many cities already
have 120 volt outlets. The same electrical
outlets used to keep Canadian cars’ engine
blocks warm in the winter could also be used
to power plug-in hybrid electric vehicles yearround. This would avert the need for extensive
infrastructure as the Tesla vehicles come with
charging solutions for 110, 120, 220 and 240
volt outlets.2
Tesla Roadster
1
16
http://www.dot.ca.gov/hq/eqsc/altfuel/electric.htm
2
http://www.teslamotors.com/goelectric/charging
P.E.S.T.L.E. Analysis
P.E.S.T.L.E. ANALYSIS
Environmental Factors
Environmental
factors
such
as
Mainstream
growing
and
short-term
prices
are
awareness to climate change are affecting how
expected to hover around $80 a barrel with a
companies operate and the products they
four per cent rise in market demand through
offer. It has also affected the consumer, who is
to 2014.
increasingly more aware of the environmental
growth and transport sector policy initiatives
impacts of production.
An event like the
around the globe, there could potentially be
catastrophic BP oil spill question our reliance on
either a management or crisis situation for
petroleum and strengthens environmentalism
the industry.2 Already underway in Europe,
as ideology already prevalent throughout
future trends will influence energy policies
society. This disaster will no doubt influence
and promote new technologies with the
future decisions worldwide on the procuring
environment in mind and re-thinking mobility.
Depending on future economic
of oil from deep sea operations and more
importantly, push stricter legislation within the
The issues covered throughout the PESTLE
industry; raising the cost of petroleum products.
analysis all shape and influence the opportunity
Growth of the world population, particularly in
for Tesla Motors, Inc in Toronto. After external
emerging countries, and a significant increase
analysis, there is a favourable climate for Tesla’s
in per capita income are the key trends that
launch into Toronto in winter, 2010.
will influence oil demand.1
12
17
http://bit.ly/adHs57
P.E.S.T.L.E. Analysis
CRITICAL PATH
Arrange Contract w Client
Design/Project Theme
X
X
X
Secure Mailing Lists
Design Event
Contact Venue
Venue Design
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
Design Jackets
X
***LAUNCH PROGRAM***
Design Printed Materials
X
X
X
X
X
X
X
X
Contract Jacket Supplier
X
28
X
X
30
X
X
X
Contract Printing
Confirm Venue Space @ Cayuga
Take Registrations
Send Jackets to Registered Guests
32
X
X
26
X
24
X
22
X
20
X
18
X
16
X
14
X
12
***RUN EVENT***
X
X
X
X
X
X
X
X
X
X
X
X
E+4
X
E+2
X
0
X
2
X
4
Evaluate Program
6
Mail Thank-you Letters
8
X
10
X
Prepare & Secure Registration
List
34
X
36
Confirm Food Services
38
Event Set-up & Prep
40
Mail Brochures/Literature
42
X
44
X
46
Contact Suppliers
48
Evaluate Event
Critical Path
18
EVALUATION
Evaluating the communications plan is essential
Qualitative data will be gathered and reviewed
in discovering the plan’s effectiveness and
from face-to-face direct surveys and follow-ups
how well it addressed the objectives and
with prospective purchasers and purchasers
strategies of the plan. As markets are always
from
in flux, markets for all goods and services are
direct surveys of test-drivers, phone inquiries
constantly changing and businesses who want
and consumer/media reviews. To track and
to remain profitable must change with them.
evaluate the success of the communications
By consulting the communications plan it can
plan, a separate phone line and email will be
be determined whether or not the original plan
dedicated to those interested in scheduling a
still fits the demands of the market and allows
meeting or test drive.
communications
efforts
including:
changes to be made to the overall marketing
plan.
Ultimately, the evaluation will focus on
the number of sales generated from the
To evaluate the process, the critical path
communications plan.
To measure the
will be examined to see how well the
communication plan’s results, a benchmark
communications plan was followed from
in sales numbers will be set before the
planning to implementation. The results of the
communication plan launch.
communication activities, including tactics, will
be reviewed and matched to Tesla’s primary
objective of sales. Lastly, the observable impact
of communication activities will be reviewed
with regard to how the results contributed to
capitalizing on the opportunity that was posed
at the outset.
19
Evaluation
SIMPLIFIED BUDGET
Assumptions
The budget outlined above is based on the
following assumptions:
•
•
All documentation (backgrounder, news
All work outlined above is in English
release, information packages, etc.) assumes
only (i.e. no French language translations
two rounds of client review
necessary)
•
•
News releases distributed via Canada
This budget is only an estimate. If
Newswire will be billed through at cost
the projects scope changes in any way, the
•
Media Monitoring is not included in
budget will be adjusted accordingly and will
this estimate, and if required will be estimated
be presented for review and approval. In
separately
such circumstances, all work will cease until a
collaborative agreement has been achieved
Activity
Estimate
Base Program Budget (Agency)
$519,680.00
Includes media relations, exclusive event, monthly media relations, newsletters, press kits, showroom tour, social media,
white pepers and vehicle information kits
Base Program Budget (In House)
$100.00
Includes dedicated telephone line for sales call monitoring
Optional Projects Budget
$34,500.00
Includes market evaluation, media coaching, messaging
matrix, online monitoring and website archiving
Subtotal (+/- 10%, taxes extra)
$554,280.00
20
Simplified Budget