As we known, analysis from previous cases, Tesla is a company which have no marketing budget, no advertising and no ad agency company. However, Model 3 is facing to mass market different with the other luxury car in Tesla Company. It is reasonable and affordable because the high positioning of the brand. The media cost will be cover Internet, social media marketing and Television. In the description as below is the estimate budges of these marketing communication for Model 3 promoting. The cost of official Tesla webpage is free since it is belonging to Tesla Company. So, we will not count the website promoting cost in our marketing budget. Youtube pop up advertising is paid by per view. The average cost per view is between £0.07 - £0.22. The average is £0.145. (Pennapowerscom,2012) And Youtube can automatically target viewers by age, gender, location or what types of video you have watched on Youtube. According to the statistics, we can easily have found the population of UK is around 65 million. (Worldbank.org. 2017) If we target our 6 months Youtube ad viewer is 10,000,000, so the cost of Youtube is £1,450,000. Since our target audience like more about the new technology and innovation, such a social media marketing become company’s target media. The majority cost will be spending in this method. For Facebook, in automotive industry, the price is calculated as cost per click which is £0.13. (Fitsmallbusiness.com, 2016) If we set the target audience number per day is 5,000, the total days will be 180 days (6 months). The coverage of people will be 900,000. The total expense will be £117,000. For Instagram, the average cost per click is £0.50. (Aggregateblog.com, 2017) Regarding to statistics, the age range of Instagram user is 25-45 years old. This is the most valuable group in Instagram market. It is also suitable for our Model 3 target audience. So, company would be preferring to pay more money in this promoting channel. The target audience in this channel will be set as 10,000 per day and counted in 180 days (6 months) planning. We can cover 1,800,000 people. After calculating, £900,000 is the final expense for Instagram. During peak hours which is between the shows like Hollyoaks or Catastrophe clock, the peak rates of 30-second clip can average cost £15,000.
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For the 13 weeks, the cost going to be £390,000. (R stewart, 2017) The same as in ITV, a 30-second ad during the peak time in weekend at night will be average cost like £20,000. As we will broadcast the Tesla ad for twice a week, 13 weeks. The total cost in ITV will be £520,000. (R stewart, 2017) All in all, the total cost of media will be £3,377,000. Due to the unique marketing model for Tesla company, there was no marketing budget for this company in the last ten years. In this situation, there is no comparison data to guide the Model 3 marketing budget. But in the terms of the total asset of Tesla in 2016 is 16 billion Pounds. (Nasdaq.com. 2017) Through this data, Model 3 marketing budget is £3,377,000, it is calculated that the promote Model 3 is using 0.19% of total asset of the company. It is reasonable marketing budget for this company. 3.5 Promotion Effective All in all, due to Model 3’s target audience is interesting in innovation and high technology industry. And as well as energy saving. Youtube native advertising, Facebook and Instagram marketing channel and Television is the best broadcast way to promote Model 3.
For the 13 weeks, the cost going to be £390,000. (R stewart, 2017) The same as in ITV, a 30-second ad during the peak time in weekend at night will be average cost like £20,000. As we will broadcast the Tesla ad for twice a week, 13 weeks. The total cost in ITV will be £520,000. (R stewart, 2017) All in all, the total cost of media will be £3,377,000. Due to the unique marketing model for Tesla company, there was no marketing budget for this company in the last ten years. In this situation, there is no comparison data to guide the Model 3 marketing budget. But in the terms of the total asset of Tesla in 2016 is 16 billion Pounds. (Nasdaq.com. 2017) Through this data, Model 3 marketing budget is £3,377,000, it is calculated that the promote Model 3 is using 0.19% of total asset of the company. It is reasonable marketing budget for this company. 3.5 Promotion Effective All in all, due to Model 3’s target audience is interesting in innovation and high technology industry. And as well as energy saving. Youtube native advertising, Facebook and Instagram marketing channel and Television is the best broadcast way to promote Model 3.