A STUDY ON ADVERTISING EFFECTIVENESS OF TESLA

Project Report submitted in partial fulfillment of the requirements for the

award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

of
BENGALURU CITY UNIVERSITY

By

DHIRAJ KUMAR H
Reg. No. MB198223

Under the guidance of

Mr. KUMARSAIDEEPAK B
Assistant Professor

GIBS B SCHOOL
Bengaluru City University

1
 APPENDIX III

PREFATORY PAGES

DECLARATION BY THE STUDENT

I hereby declare that “A Study on Advertising effectiveness of Tesla ” is the result of the
project work carried out by me under the guidance of Mr.KUMARSAIDEEPAK in partial
fulfillment for the award of Master’s Degree in Business Administration by Bengaluru City
University.

I also declare that this project is the outcome of my own efforts and that it has
not been submitted to any other University or Institute for the award of any
other degree or Diploma or Certificate.

Place: BENGALURU Name: DHIRAJ KUMAR H

Date: 26-12-2020 Register Number: MB198223

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 APPENDIX IV

GUIDE CERTIFICATE

This is to certify that the Project Report titled “A Study on Advertising Effectiveness of Tesla” submitted
by Mr DHIRAJ KUMAR H (Reg. No.: MB198223) to Bengaluru City University, Bengaluru for the
award of Degree of MASTER OF BUSINESS ADMINISTRATION is a record of work carried out by
he/her under my guidance.

Place: Bengaluru
Date: 26-12-2020 Signature

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 PLAGRISM REPORT
ORIGINALITY REPORT

5 %
SIMILARITY INDEX
3% 0% 5%
INTERNET SOURCES PUBLICATIONS STUDENT PAPERS

PRIMARY SOURCES

www.scribd.com
1
Internet Source <1%
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Submitted to Institute of Management
<1%
Technology
Student Paper

www.slideshare.net
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Internet Source 1%
www.empyreal.co.in
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Internet Source 1%
www.cbsms.co.in
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Internet Source <1%

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 Submitted to Amity University
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Student Paper 1%
Submitted to Seoul Venture University
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Student Paper 1%
duanehallock.com
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Internet Source 1%
growfusely.com
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Exclude quotes Off Exclude matches Off
Exclude bibliography On

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 PAGE
S.NO CONTENTS NO.

1 CHAPTER I: INTRODUCTION TO THE STUDY 9

2 CHAPTER II: METHODOLGY, OBJECTIVES AND LIMITATIONS 13

3 CHAPTER III: SWOC ANALYSIS 16

4 CHAPTER IV: ANALYSIS 19

5 CHAPTER V: FINDINGS AND CONCLUSIONS 26

6 BIBILOGRAPHY 29

7 ANNEXURE 30

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 CHAPTER - I

INTRODUCTION
 Introduction on “Advertising
Effectiveness”
 Problem statement
 Need & relevance of the study

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“A good advertisement is one which sells the product without drawing attention to
itself”’ – David Ogilvy

What is Advertising :

The word advertising is derived from the Latin word viz, "advertero" "ad" meaning towards
and "verto" meeting towards and "verto" meaning. "I turn" literally specific thing".

Advertisement is a tool, through which we market our product using various platforms like Radio,
Television, Internet, and reach a large number of audiences. Now a new era of advertisement has
taken place in which digitalization plays a vital role for advertising. Digital marketing is one of the
major tools used for advertising a product or services effectively. Compared to traditional way of
marketing which was used 4-5 years ago, we can now see an emerge in using digitalization as an
effective tool for advertising and reaching a large audience in a cost-effective budget. This have
been possible because of internet and its users. 85% of the world wide audience are moving
towards advancement and adopting the technology.

Advertising has been defined by different experts. Some of the quoted definition is:

American marketing association has defined advertising as "any paid form of non-personal
presentation and promotion of ideas, goods or services by an identified sponsor. The medium used
are print broad cast and direct.

Stanton deserves that "Advertising consists of all the activities involved in presenting to a group a
non- personal, oral or visual openly, sponsored message regarding a product, service, or idea. This
message called an advertisement is disseminated through one or more media and is paid for by the
identified sponsor.

Advertising is any paid form of non – personal paid of presentation of ideas goods or services by an
identified sponsor.

Advertising is a "non- personal paid message of commercial significance about a product, service
or company made to a market by an identified sponsor.

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 BASIC FEATURES OF ADVERTISING

On the basis of various definitions, it has certain basic features such as :

1. It is a mass non-personal communication.

2. It is a matter of record.

3. It persuades buyers to purchase the goods advertised.

4. It is a mass paid communication.

5. The communication media is diverse such as print (newspapers and magazines)

6. It is also called printed salesmanship because information is spread by means of the written
and printed work and pictures so that people may be induced to act upon it.

STATEMENT OF THE PROBLEM

Where every company thinks that advertisement plays a vital role in boosting up their sales,
TESLA’S founder and CEO “ELON MUSK” says that he will never use a single penny on
advertising and marketing, and instead he will deploy that budget on improvement and
development of their cars. But the truth is, he does use a minimal budget on marketing, and it is
comparatively less when compared to his competitors.

Now the question arises here is that:-

How does Elon use his effective ways to advertise his cars to his buyers?

What are all the strategies he follows to become so successful when it comes to marketing and
advertising?

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NEED AND RELEVANCE OF THE STUDY

 To know the importance of advertising and its effectiveness.

 To impact on larger audience using cost free budget on advertising.
 To keep in touch with the new trends.
 How to advertise and market your product smartly and where to segment it wisely.
 How do they create the best possible customer experience?
 How do they build a strong referral program?
 How do they embrace the competition?

So, this above-mentioned pointer gives us the reason to study about the need and relevance of
advertising effectiveness.

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 CHAPTER - II

METHODOLOGY, OBJECTVES
SOURCES OF DATA
SCOPE AND LIMITATIONS

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Research is a procedure of logical and systematic application of fundamentals of science to
the general and overall questions of a study and scientific technique which provide precise
tools, specific procedure and technical rather than philosophical means for getting and
ordering the data prior to their logical analysis and manipulation. Different types of research
types are available depending upon the nature of the research project, availability of ample
man power and circumstances.

METHODOLOGY

1. Research design: The research design is the blueprint for the fulfillment of
objectives and answering questions. It is the master plan specifying the method and
procedures for collecting and analyzing the needed information.

 Descriptive Research is used in this study as the main aim is to describe

characteristics of the phenomenon or a situation.

2. Data Collection Methods: The source of data includes primary and secondary
source of data.

 Primary Sources: Primary data has been directly collected from direct
respondents through questionnaires and with the help of interview. 

 Secondary Sources: Secondary data has been collected directly from

standard textbooks, Newspapers, Magazines, and Internet.

3. Research Instrument: Research instrument used for the primary data collection
is questionnaire.

OBJECTIVES

1. To know the different media used by TESLA.

2. To determine the effectiveness of each media.
3. To study consumer perception towards TESLA.

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 4. To understand schemes and offers provided by TESLA.
5. To know the amount of impact of advertisement on sales.

SCOPE OF THE STUDY

The range of investigation, perception and the inquiry has been minutely studied only for the
advertising activity of the represented company.

LIMITATIONS

 Survey is restricted to certain extent.

 The period for the study of research is less to study in depth.
 The statement of the result generated is based on facts and also assumptions that the
reports have been collected and researched through various multiple sources of data.

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 CHAPTER III

TESLA SWOC Analysis

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 INTERNAL SWOC

STRENGTHS

 Capacity to R&D vehicle and assembling the vehicles inside the organization.
 Supplies different associations with parts.
 Built up the primary full electric vehicle.
 Innovatively unrivaled in drive train, transmission, and electrical innovation.

WEAKNESS

 Due to innovative technology, cost gets higher.

 Due to lower demand, pricing gets higher.
 We can only target small segment, including early adopters.

OPPORTUNITY

 We can get higher support from government for using clean energy in cars.
 We can raise the gas prices for good profits.
 Unique technology

CHALLENGES

 In the current timeframe we can only produce limited cards, which can give space for
our competitors to get maximum market share.
 We need to compete against strong competitors.
 Low cost vehicles.

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 EXTERNAL SWOC

STRENGTHS

 The culture is innovative.

 Financially high in strength.
 Technology is innovative.
 Awareness of the brand is good.

WEAKNESS

 Customer support is poor.

 Production cost is high.

OPPORTUNITY

 Increase in electric car segment.

 Expansion will be global. 
 New innovative products
 Economic growth will be high.
 Increase of demand in luxury vehicles.

CHALLENGES

 High competition. 
 Prices of gas can be variable.
 Taste and preference may vary.
 Raw material cost will be high.
 Problem in technology.

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CHAPTER IV

ANALYSIS

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 Elon Musk Social media marketing stratergy

It's nothing unexpected that Tesla is the vehicle brand generally connected to themes like electric
vehicles and autonomous vehicles in general. Notwithstanding settled vehicle producers contributing
similarly so much, if not more than Tesla in these territories. The diagram underneath shows the level
of social conversation by each brand regarding the matter of electric vehicles...

Tesla rules spearheading tech with notices of electric vehicles and autonomous.

Social advertising system - information source: Facebook, Instagram, Twitter 23 July - 19

August, 2017.

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 BEST MEDIA OF ADVERTISMENT

Which media is more No. of respondents Percentage

effective in targeting
our product buyers

Newspaper 30 33.33

Magazines 30 33.33

Others(Social media, 30 33.33

Internet, etc.)
Total 90 100

The above table indicates that when we segment and target our set of buyers and consumers
in advance, then before launching the product into the market, we can be sure to spend a less
money on advertisements and marketing, which in return will benefit the company to save
huge amount of cost which could have occurred. So, its all about Segmenting, Targeting &
positioning of products wisely.

Segmentation:

Segmentation is the process of identifying the market to be segmented, selection,

identification, and application of bases to be used in that segmentation, and development of
profiles.

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Targeting:

Targeting is selecting the right audiences from the bases of segmentation, which can be most
profitable for their businesses.

Positioning:

Positioning is the last stage in which we need to position the products in the customer minds
to be the most attractive option in that category.

So, once this STP process is completed we can effectively strategies and advertising
accordingly to our research to reach our targeted audience.

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 Effect of Advertisement on Purchase of cars:-

Do you think ads. No. of Percentage

Can convince Respondents
buyers to
purchase cars

YES 50 55

NO 20 22.5

Maybe 20 22.5

Total 90 100

So, the above table indicates that 55% of the respondents think that advertisement’s do
convince individual to buy the car’s and 22.5% of them saying no and rest 22.5% of
them saying maybe.

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 Necessity for advertisement

Do you think ads. No. of Percentage

are necessary for Respondents
cars

Necessary 13 26

Very Necessary 33 66

can’t Say 4 8

Total 50 100

So, the above table indicates that 26% of the respondents think that advertisements are
necessary for individuals to buy the car’s and 66% of them saying it’s very necessary
and rest 8% of them can’t say.

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 Effectiveness of Expenditure Incurred on Advertisements

Do you think No. of Percentage

expenditure Respondents
should be
incurred on ads?

Yes 40 80

No 5 10

can’t Say 5 10

Total 50 100

So, the above table indicates that 80% of the respondents are of the view that
expenditure incurred on advertisement is effective in adding up the profit and 10% of
them denied the same and rest 10% of them can’t say.

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 Necessity For Advertisement Effectiveness

Is Advertisement No. of Percentage

effectiveness Is Respondents
necessary for a
company

Yes 46 92

No 2 4

can’t Say 2 4

Total 50 100

So, the above table indicates that majority of them are saying that advertisement
effectiveness is important, whereas a few of them are denying to the same.

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 CHAPTER V

FINDINGS AND CONCLUSIONS

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 Findings

From my project report and the data’s that I have collected, I found that:

 STP and smart research is very important for a cost-free advertisement.

 Market research and other elements are important for a pre-launch product stage.
 Knowing our customers and targeting them properly, would save 80% of our
marketing and advertisement leads.
 Still we could use limited efforts in social media and internet for advertisement and
marketing.
 We could avoid hiring celebrities and spend huge portion of money to advertisement
agencies by using targeted method of advertisements.
 Brand value and customer loyalty can drive us more leads for our products.
 Word of mouth and negative marketing are the key tools used by ELON MUSK
smartly.

SUGGESTIONS

 Advertisement should not be more expensive, because it leads to increase in cost of

budget for a product launch.
 Selective media must be there according to the choice of customers. 
 Rural areas must have specific campaigns for showcasing our products.
 Advertisements should be more attractive to grab the attentions of the buyers.
 Pricing strategy must be effective and should be less at beginning to know the demand
and supply of the product.
 The more and effective the advertisements are made, the more and easy it becomes to
grab the attention of the viewer.

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 LIMITATIONS

 The reliability of the project was mainly on secondary data.

 We have a very limited time.
 The sample study used was very limited.
 Data’s are based on an unclear pictures and opinions.
 This is my first project report, and thus my lack of experiences could be an obstacle
for my improper works.
 Getting apt information was getting difficult, due to multi-tasking limited spacing.

CONCLUSION

So, my project report ends with a conclusion that, its ok to be different when it comes to
Ideas and implementations. Do not follow the usual type of strategies for advertisements
which we usually see around us. Using advertisements effectively can lead and drive us to a
proper reach of prospect buyers. So always make proper research and have a 100%-winning
strategy for any product. So, I can finally say that my above report will properly justify my
topic and ideas for TESLA’S advertising effectiveness.

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 BIBILOGRAPHY

www.twikit.com

www.1wordsync.com

www.scribd.com

www.business2community.com

blogs.solidwork.com

en.wikipedia.org

purple.ai

shodhganga.inflibnet.ac.in

www.bigcommerce.com

www.crazyegg.com

www.slideshare.net

zoovu.com

dspace.cusat.ac.in

www.freeprojectz.com

slideplayer.com

www.iamwire.com

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