Public Relations Plan Tesla Models - Essay Example

PUBLIC RELATIONS PLAN: TESLA MODEL S This plan was prepared in response to the brief from Tesla Motors, and outlines the one-year public relations strategy for the company’s launch of the Tesla S car model to be held in the February 1, 2013. BACKGROUND Tesla Motors Inc. Tesla Motors, Inc. is a company founded in 2003, pioneering the production of full electric vehicles (EV) running on the lithium-ion technology (Tesla Motors 2013). It is a startup that began with its production through venture capital. In 2004, it finished its first automobile (Joshua 2006). Then by 2008, it has introduced the Tesla Roadster, which eventually sold 1,350 units two years after (Tesla Motors 2010). In 2012, Tesla’s founder and CEO Elon Musk declared that in the year 2013, Tesla will start becoming profitable and central to this ambition is the launch of Tesla S car model (Tesla 2013). Industry Analysis: The EV Market The Electric Vehicle market is estimated to steadily expand in the near future. The forecast is approximately 0.6 – 0.9 percent increase in the year 2015, 9 percent in 2020 and 22 percent in 2030 (JP Morgan 2010; Bloomberg 2010). The market expansion is partly attributed to US government support and the increase in the interest of the consumers in green technology. The U.S. Department of Energy, for instance, has introduced the Advanced Technology Vehicle Manufacturing Loan Program, has increased public charging stations and supported the drive to reduce battery pack costs (DOE 2010). Tesla, as a brand, is identified, with the luxury market and is viewed as a high technology automobile manufacturer in the business of selling EVs and electric powertrains. It sets itself apart from the competition by delivering environmentally-friendly/green/sustainable vehicles alongside the all the features of a luxury car such as design, materials, speed, handling, comfort and experience. The Tesla S car enjoys all these benefits. Competition The Tesla S model is expected to compete with EV products that are just being developed by carmakers like Audi, BMW, Lexus and Mercedes and would also directly compete with hybrid cars are already in the market such as Toyota with its Prius car, which is the so-called “unofficial greenmobile of Toyota and the world” (Siler 2012). Again, it is important to note that Tesla S seeks the luxury market and, hence, could also go head to head with non-green luxury cars. All in all, Tesla S technology will be challenged by Audi and BMW: Audi Audi has an ambitious plan to be the leading electric vehicles by 2020. It is integrated in its recent electric mobility strategy and underpins its recent plan to hire almost 1000 workers for its facility upgrade, which is a $90 million 14,000-square-meter electric-drive development and test center (The Motor Report 2010). Currently, it is developing the Audi e-tron expected to be released in 2013, a two-seater car than is powered by a lithium-ion battery that has a range of about 50-150 miles. BMW In 2011, BMW implemented a plan to hire 2,600 new employees to man its new EV capabilities, which will spearhead BMW’s electric and hybrid car technology (Reiters 2010). The company is currently developing two EV vehicles, the ActiveE and MegaCity. Both of these cars are fully electric vehicles and are rumored to be released in 2013. The design footprints are reminiscent of BMW’s 1 Series Coupe and would have about 100 mile-range (BMW 2013). In a brief situational analysis, the following key issues were revealed: Tesla S will be enjoying the first-to-market edge. It is the very first road-worthy electric car in the planet. There are consumers that demand innovative, sustainable and luxury cars. Tesla S is a green car, which should generate goodwill for the product. Tesla S is not only a green car with zero emissions and impeccable design but also runs as fast and more efficient than conventional cars. The competitive advantage is significant. Unlike EVs to be produced by Audi, BMW and Toyota, Tesla does not enjoy strong brand recognition. Consumers may have concerns about battery cost, repair accessibility and after sales support. Tesla Motors enjoys the support of the government both on the economic and policy environments. There are incentives and loan programs available for sustainable technology. PR STRATEGY Objectives The following are the PR plan objectives: 1. To reinforce the position of Tesla S as a high profile, exclusive, energy efficient and green car; 2. To help Tesla S expand its market by creating brand awareness within at least 50% of our target audience prior to the launch on the January 2013; and, 3. To help increase the sales of Tesla S by 20% by September 2013. The proposed PR strategy will span one year and would aggressively push for pre-launch awareness-building, an integrated communications strategy that will support the launching activities and, follow up PR activities to further augment and sustain the momentum garnered. At the core of this strategy is a set of high profile activities to be staged in several key cities, namely, New York, Los Angeles, Las Vegas, London, Zurich, Monaco, Tokyo and Hong Kong. Campaign The campaign slogan is "green luxury". The plan focuses on the implication of premium quality experience at the same time will evoke concepts like practicality, efficiency, sustainability, high technology and design. It is not about pitching luxury at a tampered cost since the market understands how quality can never come cheap. Instead, the campaign will go back to the fundamentals behind the business: why clients turn to brands such as Tesla’s in the first place. The luxury narrative will be complemented by consistent messages about status, being environmentally-sustainable or in more popular terms, “green”, impeccable design, the economic case that focuses on energy, among other concepts that communicate how Tesla S can keep up with its clients and their needs. There will be two main market classifications: luxury consumers and mavericks. Target Public The identified publics both have wealth, which is the general description of the niche market. The difference is that the former prioritizes status, design, exclusivity and, to a lesser degree, comfort. These are the owners who are simply well heeled and, in rather blunt words, those that like to show off. Tesla S would be part of their purchases that showcase their lifestyle. The second public are what this PR plan call as “the mavericks” These are those who expect more from their luxury purchases and are drawn to spending on high-technology, sustainable products, practical luxuries, among other factors that rationalize an exorbitant amount of expense. They are sometimes called eco-hipsters, rich environmentalists and the politically conscientious. Ultimately, the PR plan will attempt – in tandem with the sheer strength of the product itself and its technology- to create an ideal public out of these segments – the Tesla enthusiast. These are people who will embrace, identify and be committed with the brand. Messages: For the business market classification, the following themes will be used: 1. Tesla S is a purely green car, symbolizing a commitment to protect the environment. 2. It is a product of high technology, offering cutting edge innovation. 3. It is fuel efficient, saving owners expenses due to its low energy consumption 4. Its performance and efficiency can best rival conventional car. 5. As a fully electric vehicle, drivers can save money. For customers in the luxury category, the following themes will be used: 1. Tesla S is a luxury brand and is identified with exclusivity, design and being trendy. 2. Owning a Tesla S will augment status, with its performance, rarity and prestige. 3. Driving a Tesla S model is fun and hip. 4. Tesla S can be a symbol for self-enhancement and self-verification. Schedule and Tactics The one-year PR campaign is divided into four phases: 1. The pre-launch activities that will span the months of December 2012 and January 2013. These are prelaunch activities designed to build awareness and expectation. These activities will follow creative promotional concepts aligned with luxury brands. For example, there will be “wishing sessions” wherein participants are encouraged to forget about constraints such time, schedule and cost and wish for the impossible in their car (for an example event, see Mattimore, 2012, pp.106). The information gathered from participants will be the basis of other activities that will involve and engage the market. In addition, there will also going to be test drives and road shows so that the consumers can experience, first-hand, what it feels like driving the Tesla s. Kapferer (2012, pp.260) reminds us that “luxury seeks participation and active membership from the client”. This is the reason why the pre-launch activities will be dominated by mini-experiences that recreate concepts equated with luxury such as a recreation of a dreamlike surroundings associated with Tesla S. 2. The second phase (January 2013), which is part of the prelaunch activities, will involve an intensive communication campaign that will focus on the launch events. This may be consisted of a series of internal communications, face-to-face customer communications, lobbying activities and other related initiatives to drum up awareness, interest and commitment. 3. The launch phase in the first week of February 2010. This will be dominated by special events and road shows and their entailing media relations and promotions activities. 4. The last phase will be consisted of after-launch activities. This will cover the month of March until November 2013. It will still include elements of the prelaunch activities such as aggressive communications, media relations, customer relations and promotions designed to sustain the momentum of the PR campaign. For example, a strong issues management team will be formed to monitor the media, competitor and the market’s responses and promptly act on them. PR activities as detailed in the above three phases are consisted of PR tools such as special events, media releases, digital networking, tactical advertising, and communication initiatives, among others that are strategically employed in a set of combinations according to each phase. As a luxury product, it will not rely on television advertisements but would strategically position the product in select television programs for visibility and educational purposes. The plan will of course make use of print and the Internet platforms. A PR activity may overlap with the same activity in another phase and in this case, it will be treated as one logical activity to avoid redundancy. BUDGET A detailed budget follows, outlining the anticipated costs to be incurred by the 12-month campaign. The budget includes tentative activities under the identified final three phases. Activities may change based on the information gathered from pre-launch activities such as feedback from the “mini-experiences” and those gathered by the issues management team. ACTIVITIES BUDGET COMMENTS Pre-launch activities $700,000.00 “Mini-experiences” events Audio-video production for staff DVD Staff Trainings Media Relations Tactical Advertising Celebrity Endorsements/Advertisement Communication Campaign: $200,000.00 Internal Communications Media Relations and Releases Creation of website and Internet and social media strategy Lobbying activities Events in key cities Product Launch: $700,000.00 Events and road shows in key cities Media Relations Tactical Advertising Follow-up Activities: $1,500,000.00 Tactical Advertising Issues Management Team The team and its activities will be allotted with 70,000 operational budget from the figure listed under this phase. Internal communications (staff briefings, e-newsletters) Events and road shows Media relations Media/social media monitoring OVERALL CAMPAIGN BUDGET $3,100,000.00 EVALUATION In terms of evaluation, this plan will focus on the outputs such as feedback as well as the extent of message exposure, awareness and audience reach. There are four components involved: target achieved, media response, customer feedback and sales figures. The PR plan is consisted of phases and logical flow of targets. The achievement of each would mean positive outcome. An analysis of targets alongside achievements would also allow modifications to faulty methods, activities and messages. This will be complemented by an evaluation of media coverage, including feedbacks and responses in the media and the digital communities. An evaluation mechanism will be developed to specifically measure and analyze data. Finally, the sales figures will help quantify if the plan is working since it will be evaluated every month. The PR activities and strategies are documented and the data from the records are expected to explain product performance at particular time periods. All in all, the PR plan seeks to build, introduce and reinforce the Tesla S model and attract consumers in the process. By doing so, the plan would be raising awareness, enticing consumers and transmitting messages that educate and, to some extent, change perception about the product and Tesla Motors. The plan is systematic and strategic making use of various media in its activities. References BMW. (2013). BMW ActiveE concept. BMW. Available at: . JP Morgan. (2010). Tesla Motors: Electrifying Luxury; Initiate With Overweight. JP Morgan. Joshua, D. (2006). Batteries Included. Wired Magazine. Available at: . Kapferer, J. (2012). The Luxury Strategy: Break the Rules of Marketing to Build Luxury Brands. London: Kogan Page Publishers. Mattimore, B. (2012). Idea Stormers: How to Lead and Inspire Creative Breakthroughs. 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