Developing a media plan involves collection/analysis of relevant information, strategic decision making based on group discussions, and effective reporting of the plan. Each group is expected to conduct an in-depth analysis of a given market situation/target audiences, and to propose a complete media plan for a product given.
The following is a detailed outline of how you should proceed in performing your group project this term. Use the following outlines as guides for the issues to consider.
Enclosure: Media Project Background; Organization of the Media Plan
MEDIA PLAN GROUP PROJECT
The media team project is to develop a complete media plan for Tesla Model 3 for the period of 12 months.
Tesla Model 3 – All Electric Car for All
Tesla Motors, an all-electric-car maker
headquartered in Palo Alto, California
was founded by Elon Musk and Martin
Eberhard in 2003 and went public in July
2010. Ever since, Tesla has been on top
of the trend towards alternative
powertrains in the passenger vehicle
industry. Globally, Tesla delivered
around 40,740 vehicles during the second
quarter of 2018, after fiscal year 2017
deliveries amounted to around 103,000
units. As of 2018, Tesla’s model range
includes the Tesla Model S, Tesla Model
X, Tesla Model 3, as well as Tesla Semi
Truck and Roadster models. The
company’s products were originally
aimed at customers in the high-end
sphere of the market, but with the release of the Model 3, are now targeting broader customer segments.
The company conducts business in North America, Asia and Europe. While the domestic US market continues to be its most important target market, Tesla was able to successfully tap into the Chinese and European markets, as well. The Model S became Norway’s most popular car in March 2014, well ahead of second-ranked Volkswagen Golf. In terms of range, Tesla’s Model S remained the cream of the crop in 2018, and it is little surprising that the Model S was the best- selling all-electric car in the United States in 2017.
Tesla also has its own powertrain segment, and Toyota’s RAV4 electric vehicle is equipped with a Tesla-produced battery and electric powertrain. In July 2014, Tesla and Panasonic announced a joint effort to construct and operate of the world’s largest battery factory in the United States. Furthermore, the company is heavily involved in the development of driverless cars. However, Tesla’s autopilot technology has come under scrutiny after a failure caused a fatal accident in 2016.
With a goal of increasing sales by 6 percent next year, Tesla is taking a big risk on a massive increase in advertising expenditures, and betting Tesla can earn it back in two years. There are extraordinary challenges in a market that is mostly aware of hybrid electric cars, but definitely not as aware of the all-electric car. Elon Musk wants the world to know that hybrids are old technology. According to a study done by Vincentric, over a 5-year period, there is a premium of $4,647 to own a hybrid versus a gas burner. Over five years, a new gas-burning car purchaser may save a few hundred dollars on the
initial out of pocket cost. However, each fill-up results in losing money—and over the longer haul; the hybrid comes out on top. In designing a marketing mix, Tesla must erode market share from the Hybrid car market while cutting into the gas burner market. Tesla’s niche marketing and positioning strategy must compete successfully against all three categories: gas burners, hybrid, and other all electric car makers. Competitors include
behemoths like General Motors, Ford,
Honda, Nissan, Toyota, Hyundai and
Your job is to help promote the qualities
enjoyed by a brand as unique and
unusual as Tesla. Tesla feels it is a
perfect fit for a niche marketing approach
because of the unique character of
Tesla’s target audience. Just one visit to a
Tesla dealership will uncover how well
their niche philosophy meshes with a
highly consumer-focused brand that puts
little emphasis on mass marketing.
Your advertising agency has been retained by Tesla to write a marketing/media plan that will serve as a proposal for Tesla’s highest media budget ever. Your $22.5 million media plan will be the primary factor in determining whether Tesla continues with capital injection in the following year. Your job is to generate national and regional awareness and to help generate a 20% increase in annual sales in the USA.
Your focus must be much broader than just “advertising.” Communications can include radio, TV, print media, all social media, mobile media, public relations, sales promotion, and viral marketing. The legendary Bill Bernbach was fond of saying, “Rules are what the artist breaks; the memorable never emerged from a formula.” Media planning is creative; it is vital to a solid marketing plan. Tesla
wants to know if you have the genius to break through the ordinary thinking of your peers.
Tesla has grand plans for the next few years. By the time your campaign goes live, Tesla intends to extend their footprint from 28 states currently so that there is at least one showroom/store in every state. In terms of TV DMA markets, around 40 have at least one store, but most of the stores are concentrated where sales occur. You will need a strategy to meet these geographic characteristics in your media plan.
Tesla advertising expenditures have been minimal. The brand manager notes that Tesla has predominantly had a digital presence in the recent past, and believes it to be an important component of communications efforts in the future. Tesla expects a significant share of the ad budget to go to digital resources. The brand manager knows that mass media can be an important component of delivering wider audiences. He is willing to consider well-made and researched arguments for using other media. But, never forget that sound reasoning is required by Tesla’s marketing team. You will be judged with greater scrutiny on why you do something. What you do must be driven by why.
The marketing team is looking for a campaign theme with a ‘brand anthem’ promising new car buyers that all electric is the future of transportation and the future of the planet.
A key goal for your agency is to increase unaided brand awareness, currently estimated at 14% nationally. By end of the first year of the new campaign, the unaided brand recognition goal is 25%. Successful communication must be “cooperative” and from the buyer’s perspective with the aim of creating a dialogue with customers based on their needs and lifestyles.
Tesla’s brand personality, although well-conceived, is still in its infancy. Examine the details of the Tesla brand, and make sure you understand the culture of the Tesla brand. A brand’s culture is defined by the personality imbued into the physical product itself; brand culture is defined even more so by creative concept and media environment. The specific media mix you develop should have:
1) A media mix that will generate a personal dialogue between Tesla and customers. 2) A media mix that maximizes your brand’s culture and brand personality.
3) Rationales that recognize how your media environment enhances the brand personality
Along with an imaginative, brand-driven media mix, Tesla’s marketing team wants to see some examples of your strategy. If you employ traditional media, provide an example of your concept/message to demonstrate how it will contribute to Tesla’s brand personality. If you use a social media concept, whether it is on Facebook, Instagram, a viral message or a twitter concept, illustrate your idea with an example or two.
This media plan is being developed for your client by your media department. As such, it must meet professional presentation standards: It must be presented in a logical and organized manner; it should be written clearly and concisely; it should keep long sentences to a minimum; it should avoid redundancy and simply repeating information presented here; it must be typed; and visuals (e.g., tables, charts) should be used for effective communication.
Be careful to cite your sources of information, where applicable. Where important facts are not available to you from secondary research, you may make assumptions as long as they are reasonable. For example, if you cannot find documented information about the seasonality of sales, make an assumption. By making an assumption you are letting the reader know that a particular piece of information is important, even though you don’t have the precise facts.
REMEMBER: There is no “absolutely correct” or “must-be-right” solution for this assignment. You will be evaluated by the strength of your analysis and by the rationale behind your recommendations.
Your final plan should be a maximum length of 25 powerpoint slides (including text, tables, charts, and graphs). Please turn in an electronic file of your plan (e.g., pdf).
The completed media plan is due by the beginning of the final presentation session of the semester. Papers turned in later than this date, regardless of reason, will receive a late penalty of 10 points per day. It is thus important to get started in plenty of time to do a good job and avoid any last minute problems (e.g., a word processor that balks or a typist who does not finish the report when promised).
Remember, this is a team project. The success of the project depends on each and every member of the team. In addition, each student will be evaluated in terms of his/her attitude, meeting attendance, quantity and quality of work, and cooperation at the end of the semester.
ORGANIZATION OF THE MEDIA PLAN*
I. EXECUTIVE SUMMARY
A single page statement that summarizes the plan, including your objectives and your major strategies and tactics. This is necessary ONLY for the report to be submitted and should NOT be shown in a presentation.
II. MARKETING SITUATION ANALYSIS
Recap the marketing situation for the product and draw implications for media decisions. The following elements should be discussed (e.g., in a SWOT format).
a. Industry review: Overall growth/decline/changes, market share, revenue, trend, etc. b. Positioning: How have you positioned the brand in the minds of prospects? c. Previous campaigns: Goals, creative strategies, media deployment, costs, results. d. Competitive analysis: How do you assess the competition? Present a “competitive media analysis” if necessary.
e. Uncontrollable variables (constraints): For example, seasonality of sales, economic conditions, social and cultural trends.
f. Problems and opportunities: Identify problems and opportunities your brand is facing and draw media implications from your analysis.
III. MARKETING OBJECTIVES
A concise statement of your marketing share and/or sales goals.
IV. ADVERTISING OBJECTIVES
A concise statement of your advertising communication goals (e.g., awareness, knowledge, attitude, trial), followed by a brief rationale.
V. TARGET AUDIENCE
a. Define your target audience, for example, in terms of:
• Demographics, psychographics, lifestyles
• Brand/product usage
• Geographic distribution
• Media habits
b. If necessary, distinguish between primary and secondary target. If so, give “weights.” c. Provide a rationale for targeting. For example, you should cite secondary data (e.g., SMRB/MRI) to support your target audience decision. You may also need to use your own judgment and make assumptions.
VI. MEDIA OBJECTIVES
A series of brief statements, including:
a. Your desired reach and frequency levels.
High, medium, and low reach/frequency levels are defined below.
High 75-95% of target 85%
Medium 50-75% of target 65%
Low up to 40-50% of target 45%
High 9-10+ in 4 weeks 10
Medium 6-8 in 4 weeks 7
Low 1-5 in 4 weeks 3
b. Continuity pattern: What is the general continuity pattern of your media schedule (continuous/flighting/pulsing)? What is the time frame for various levels of reach and frequency? (e.g., high reach, medium frequency for introductory months of plan)
c. Other goals that are designed to meet specific creative or geographic requirements. d. A rationale for your stated objectives.
VII. MEDIA STRATEGIES (Justify all decisions)
a. Media selections: Which media types/classes are selected and why? Which media types/classes are not selected and why?
b. What is your weighting, budget allocation (e.g., $2million or 20% in network television; $0.7million or 7% in magazines, etc.) and why?
c. How media types will be weighted by region, season, month, and why?
VIII. MEDIA TACTICS
a. What are the media vehicles selected? Size of ads/length of commercials? How often to be run? Use of color/bleed? How many ads/commercials in total?
b. Media deliveries (reach, frequency, GRPs, CPM) by media type and time period. c. Concurrent efforts: Promotional, trade, local, corporate. How are these efforts integrated with the media plan?
IX. TIME SCHEDULE (MEDIA FLOWCHART)
How will the media be scheduled through the year? Why? You must present the actual week to-week (or month-to-month) timing of media buys in a media flowchart. Any non-media parts (trade, merchandising, promotion, etc.) must also fit into the schedule.
Summarize methods to be used to measure and monitor the likely impact of the media plan in terms of media goals.
* No need to address all the topics in the order shown above. Try to think how to address most clearly the essentials in your presentation