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Purpose of AssignmentThis assignment is designed to help students understand the interrelationships between brand strategy and the communication message to the target audience. It is a continuation of the marketing plan and students should review the Week 3 Learning Team Assignment for assistance in product brand strategies the team has developed.Assignment StepsResources: Marketing Plan and OutlineDevelop a minimum 700-word branding strategy and marketing communication plan in Microsoft® Word. This document should address at least 5 elements of the Situational Analysis and the Product, Place/Distribution, Promotion, and Price Strategies (modified below) sections of the marketing plan (from the Situational Analysis and the Product, Place/Distribution, Promotion, and Price Strategies lists below). The five elements you select should only come from the options provided below. You must include a measurement of customer loyalty and retention in your strategy document. You may include more than the minimum to provide clarity and coherence to your document. Situational Analysis:Vision , Mission, Strategic objectives, ValuesStrengths/WeaknessesCompetitor’s Strengths/WeaknessesMarket SegmentsProduct, Place/Distribution, Promotion, and Price Strategies:Creating a Brand ImageMaintaining Brand ImageBranding ConcernsPromotion/Integrated Marketing CommunicationAdvertising Strategy/ObjectivesPush and PullMedia StrategyAdvertising ExecutionPublic Relations/StrategiesNote: Charts/graphs/tables do not count toward the word count.The plan will be a continuation of your global or multi-regional business you chose in Week 1. This will be incorporated into your overall marketing plan for Week 6.Cite a minimum of three peer-reviewed references.Format your assignment consistent with APA guidelines.
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Running head: New Product Launch
1
New Product Launch
University of Phoenix
MKT 571: Marketing
Professor Melodi Guilbault
March 01, 2019
Group 4: David Brigandi, Kyla Beadles,
Precious Namor, and Suzanne Wolf
2
New Product Launch
New Product Launch
Tesla Incorporated is a company that has received a lot of buzz over the past few years.
The company’s mission is to “accelerate the world’s transition to sustainable energy” (Tesla,
2019). Tesla has introduced innovative designs for vehicles we had only imagined would
be accessible in the future. In order to accomplish what is established in their mission, the
company has been manufacturing all-electric vehicles as well as other alternative energy
solutions to decrease usage of fossil fuels. Tesla’s main vehicles include the Model X, Model S,
Model 3, and Roadster. The Model 3 was introduced in 2017 (United States Securities and
Exchange Commission, 2019), but now requires a marketing plan to refresh the product and
attract more customers. This report will discuss the Model 3 refresh marketing plan.
Definition of Product
The Model 3 is gaining traction for several reasons—it has an autopilot feature, a simple
but efficient interior using a touch screen to control functions, it has a low price of $35,000, and
of course it’s all-electric design. The Model 3 is now only available for purchase online. In order
to keep costs low, Tesla closed many of its physical stores.
Description of Product or Service–Marketing Message
Because of the features that the Model 3 possess, the marketing message will be focused
on “simplicity” and will highlight exactly those four features. Because the combination of
features speaks for themselves and the marketing message will be “simplicity”. The advertising
itself will also be very quick and simple, but will provide a luxurious feel. Additionally, because
the product is now only available online, the messaging will make the online only option sound
like the product is limited, making it more appealing. The customer can drive the Model 3 for up
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New Product Launch
to 7 days or 1,000 miles before returning it which is another selling point that should be included
in the marketing message (Tesla, 2019).
Reason for Model 3 Refresh
The customer demographics for Tesla EVs are within those who are highly socially and
environmentally aware. The psychographics on Tesla owners are categorized under 3 typologies
of status seekers: (1) Hardcore loyal users who are typically wealthy, socially responsible and
cares about the environment. Fad users are those who like the novelty of being trendy and are
generally socially compliant. (2) The fad user generally embraces mass consumerism, is funloving, rich and prefers the lifestyle of a Tesla owner. (3) Finally, the Switcher who has limited
loyalty to clean energy and the environment. They would switch brands based on price and if
competitors to Tesla offered a low-cost alternative (Hedges & Company, 2019).
In California, an aggressive and highly ambitious target to decarbonize transportation
through the deployment of electric vehicles (EVs), and to decarbonize the electricity grid through
the expansion of both renewable generation and energy storage has been issued (Coignard,
Saxena, Greenblatt, & Wang, 2018). The assumption in this report is based on aligning with the
California statewide projections of having over 1 million plug-in hybrid electric vehicles
(PHEVs) and over 500K battery electric vehicles (BEVs). The opportunity to position the Tesla
Model 3 as an affordable way to meet the lifestyle needs, as well as a great contribution to
environmental sustainability, is substantial.
The problem Tesla Model 3 has faced over time is it has been touted as the affordable
luxury electric vehicle, yet no one is talking about. Rather, people are talking about how Tesla’s
biggest challenge is fixing the struggling production ramp-up for the Model 3. They have
4
New Product Launch
continued to miss production targets and have left potential buyers leery and doubtful about the
Model 3. While Tesla’s all-EV has performed well, the same cannot be said for the Model 3.
The recent decision to release a pared-down version of the Model 3 at a lower price tag
(~$35,000 base) will allow for a quicker delivery time of approximately two to four weeks. This
along with the closing of their brick and mortar locations means all Tesla purchases will be
conducted on line.
SWOT Analysis
Just like any other company in the market, the Tesla company will have its own
strengths, weaknesses, opportunities and threats. These are as follows;
Strengths
Tesla has a unique position in the auto market. The goal of Tesla is not just to sell cars. It
will transform the way people drive, and the company will achieve this by coming up with new
innovative technology. Considering the fact that Tesla is just one of the manufacturers of electric
vehicles, she has been able to create and dominate the market for electric vehicles. The market is
quite distinct from that of less expensive electric vehicles. The second strength is that Tesla has
been growing at an impressive rate (Ingeborgrud, 2017).
Weaknesses
Tesla has constantly been burning through huge amounts of cash for a long period of time
and this is mostly due to large investments in new research and development. The company also
has a high debt.
Opportunities
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New Product Launch
The introduction of a new brand of Tesla has been able to receive a warm reception and
acceptance by the consumers. This will consequently increase the market base. In order to begin
making profits, Tesla will have to devise ways of cutting down costs (Viola, 2017).
Threats
There have been many concerns that Tesla may not be in a position to fund the
production of cars in the months to come. Another threat is that the industry is highly
competitive. Many companies in the industry have operated longer compared to Tesla.
Therefore, have more manufacturing, financial and also marketing capability. The company
therefore has to try and deal with all these threats.
Evaluating Potential Growth
The compound annual growth rate (CAGR) can evaluate the potential growth rate of
Tesla and how it compares to its competitors. More specifically, it helps to determine returns on
the company’s investment. It is important to remember that Tesla is a relatively young company
compared to its competitors in the automobile industry. Tesla has only been manufacturing
automobile for 10 years. However, the company is focused on global expansion but also needs
maintain positive cash flow to facilitate this expansion.
Gross Profit CAGR (3y)
60.00%
40.00%
20.00%
0.00%
-20.00%
-40.00%
-60.00%
-80.00%
-100.00%
Tesla (TSLA)
Ford (F)
General Honda (HMC)
Motors (GM)
Nissan
(NSANY)
BMW (BWA)
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New Product Launch
Figure 1- (Finbox, n.d.)
According to data in shown in Figure 1, Tesla’s three-year gross profit CAGR was
36.1%. While Ford Motor Company and General Motors report similar data with gross profit
CAGRs of 10.1% and 9.7% respectively. Additionally, Tesla’s gross profit CAGR is more than 5
times that of its luxury automobile competitor BMW (6.5%) and more than gross profit CAGR
for Ford, GM and Honda combined. These numbers suggest that Tesla is experiencing a rapid
growth phase. If the company continues to invest in expansion, it may quickly begin producing
automobiles on the level of production of other top manufacturers. A rapid growth phase will
generate the revenue needed to prioritize and sustain long-term growth with short-term profit.
Tesla can use these profits to build new manufacturing factories and create new products. The
company began selling the Model 3 in Europe in January 2019 while competitors such as
Chevrolet (GM) also plan to offer a new line of all-electric vehicles (Ahmad, 2018). Tesla is
arguably one the fasting growing manufacturing companies in the world. Developments in the
global automobile market will have profound effects on the manufacturing and sale of
automobiles.
Conclusion
In conclusion, Tesla Incorporated will benefit tremendously from the product refresh
campaign for their latest product, the Model 3. During August of 2017, Tesla disclosed it was
“averaging more than 1,800 net reservations each day”, but will now sell even more vehicles
(Fiegerman, 2017, para.1). This plan has evaluated marketing messaging, the target audience,
competitor data, and projected growth as a result from the relaunch, ensuring the campaign will
create ultimate success.
New Product Launch
7
References [Please check the Reference and Citation Examples document in the Tutorials &
Guides section of the Center for Writing Excellence for examples of correct formatting. Then
carefully check your citations and references to be sure that they are formatted correctly.]
Ahmad, S. (2018). Tesla Motors: an expensive growth play. Retrieved from
https://www.gurufocus.com/news/429011/tesla-motors-an-expensive-growth-play
Coignard, J., Saxena, S., Greenblatt, J., & Wang, D. (2018). Clean vehicles as an enabler for a
clean electricity grid. Environmental Research Letters, 13(5), 54031. doi:10.1088/17489326/aabe97
Company Profile: Tesla Inc. (2017). Retrieved from https://www-plunkettresearchonlinecom.contentproxy.phoenix.edu/researchcenter/Company.aspx?Comid=10662&Industry=
&Gen=1%20&Name=tesla&1
Gross Profit CAGR (3y) for Tesla Motors Inc. (2019). Retrieved from
https://finbox.io/TSLA/explorer/gross_profit_cagr_3y
Hedges & Company (2019) Tesla Owner Demographics: Income, Age, Gender and More.
Retrieved on March 1, 2019 from https://hedgescompany.com/blog/2018/11/tesla-ownerdemographics/
Ingeborgrud, L., & Ryghaug, M. (2017). User perceptions of EVs and the role of EVs in the
transition to low-carbon mobility.
Fiegerman, S. (2017, August 3). Tesla now averaging more than 1,800 Model 3 reservations a
day. CNN Money. Retrieved March 1, 2019
from https://money.cnn.com/2017/08/02/technology/business/teslaearnings/index.html?iid=hp-stack-dom
8
New Product Launch
Finbox. (n.d.). Gross Profit CAGR (3y) for Tesla Motors, Inc. Retrieved March 01, 2019 from
https://finbox.io/TSLA/explorer/gross_profit_cagr_3y
Tesla, Inc. (2019). Model 3. Retrieved March 1, 2019 from https://www.tesla.com/model3
Tesla, Inc. (2019). About Us. Retrieved March 1, 2019 from https://www.tesla.com/about
United States Securities and Exchange Commission. (2019, February 19). Form 10-k. Tesla, Inc.
Retrieved March 1, 2019
from https://www.sec.gov/Archives/edgar/data/1318605/000156459019003165/tsla10k_20181231.htm
Viola, F., & Longo, M. (2017). On the strategies for the diffusion of EVs: Comparison between
Norway and Italy. International Journal of Renewable Energy Research (IJRER), 7(3),
1376-1382.
Grading Guide
Content
Met
Students design a New or Product Refresh Product Launch Plan for
two markets. The product launch plan will be for two markets: U.S.
and one international market. The product/service can be one used
by a team member in their individual assignment.
Students compare their product/service to at least one other
competitor. The competitor does not need to be in both markets,
they can have two different competitors, one for each market.
Students’ New or Product Refresh Product Launch Plan includes a
brief SWOT (emphasizes internal market–Strengths, Weakness,
Opportunities, Threats) and/or TOWS (emphasizes the external
x
Partially
Met
Not
Met
Comments:
x
Did I
overlook the
international
market?
x
Did I
overlook the
international
market?
9
New Product Launch
Content
Met
Partially
Met
Not
Met
Comments:
market—Threats, Opportunities, Weakness, Strength). Include a
graph or chart if the team deems it necessary.
Students’ New or Product Refresh Product Launch Plan includes at
least three of the following:





Definition of product or service.
Description of product or service
marketing message.
Why the product or service needs to be
introduced or refreshed (target audience).
Address competition in each region and
how the new product or refresh provides a competitive
advantage.
Evaluate the potential growth rate. Look
for information on similar products/services to
determine a three year growth rate (Compound Annual
Growth Rate-CAGR). Information may be located in
the University Library.
The New or Product Refresh Product Launch Plan is a minimum of
1,050 words in length. Note: Charts/graphs/tables do not count
toward the word count.
x
x
Cited a minimum of three peer-reviewed references.
Writing Guidelines
Met
The paper—including tables and
graphs, headings, title page, and
reference page—is consistent with
APA formatting guidelines and
meets course-level requirements.
x
Partially Met
X
Intellectual property is recognized
with in-text citations and a
reference page.
X
Paragraph and sentence transitions
are present, logical, and maintain
the flow throughout the paper.
X
Not
Met
Total
Available
Total
Earned
60
55/60
Comments:
10
New Product Launch
Content
Met
Sentences are complete, clear, and
concise.
X
Rules of grammar and usage are
followed including spelling and
punctuation.
X
Assignment Total
Additional comments:
#
Partially
Met
Total Available
Total
Earned
20
18.5/20
80
73.5/80
Not
Met
Comments:
Marketing Communication and Brand
Strategy Grading Guide
MKT/571 Version 10
Marketing
Copyright
Copyright © 2017, 2016 by University of Phoenix. All rights reserved.
University of Phoenix® is a registered trademark of Apollo Group, Inc. in the United States and/or other countries.
Microsoft®, Windows®, and Windows NT® are registered trademarks of Microsoft Corporation in the United States and/or other countries. All
other company and product names are trademarks or registered trademarks of their respective companies. Use of these marks is not intended
to imply endorsement, sponsorship, or affiliation.
Marketing Communication and
Brand Strategy Grading Guide
MKT/571 Version 10
Edited in accordance with University of Phoenix® editorial standards and practices.
2
Marketing Communication and
Brand Strategy Grading Guide
MKT/571 Version 10
Individual Assignment: Marketing Communication and Brand Strategy
Purpose of Assignment
This assignment is designed to help students understand the interrelationships between brand strategy and the
communication message to the target audience. It is a continuation of the marketing plan and students should
review the Week 3 Learning Team Assignment for assistance in product brand strategies the team has
developed.
Grading Guide
Content
Met
Partially
Met
Not Met
Total
Available
Total
Earned
Student develops a branding strategy and
marketing communication plan that addresses
at least 5 elements of the Situational Analysis
and the Product, Place/Distribution,
Promotion, and Price Strategies (modified
below) sections of the marketing plan.
Choose 5 elements from the lists below:

Situational Analysis:
o Vision , Mission, Strategic objectives,
Values
o Strengths/Weaknesses
o Competitor’s Strengths/Weaknesses
o Market Segments
• Product, Place/Distribution, Promotion,
and Price Strategies:
o Creating a Brand Image
o Maintaining Brand Image
o Branding Concerns
o Promotion/Integrated Marketing
Communication
o Advertising Strategy/Objectives
o Push and Pull
o Media Strategy
o Advertising Execution
o Public Relations/Strategies
Student must include a measurement of
customer loyalty and retention in your
strategy document.
The branding strategy and marketing
communication plan is a minimum of 700
words in length. Note: Charts/graphs/tables
do not count toward the word count.
Cited a minimum of three peer-reviewed
references.
Comments:
3
Marketing Communication and
Brand Strategy Grading Guide
MKT/571 Version 10
Content
Writing Guidelines
Met
Met
Partially
Met
Not Met
6
#/6
Partially
Met
Not Met
Total
Available
Total
Earned
2
#/2
8
#/8
The paper—including tables and graphs,
headings, title page, and reference page—is
consistent with APA formatting guidelines and
meets course-level requirements.
Intellectual property is recognized with in-text
citations and a reference page.
Paragraph and sentence transitions are
present, logical, and maintain the flow
throughout the paper.
Sentences are complete, clear, and concise.
Rules of grammar and usage are followed
including spelling and punctuation.
Assignment Total
Additional comments:
#
Comments:
Comments:
4

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