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Car Insurance

“The subject no one wants to talk about”

What comes to mind when you see this brand?

What about this one?

And lastly this one?

Market Assessment

• $161 Billion industry

• 187 million insured privately owned vehicles on the road

• 20 million people are in the market each year for car insurance

• Expected 2.6% growth in the industry by 2020

Market Segmentation

Market Share & Growth

State Farm

“Like a good neighbor, State Farm is there”

• #1 in auto premiums collected according to Berkshire

Hathaway Inc.

• Spent $608 million in advertising in 2013

• “Chaos in Your Town” app and website

• Celebrity endorsers

• Reinvented itself with contemporary marketing, smart digital initiatives and a newfound agility (drivers are relying on do-ityourself rate shopping)

For young adults who need help managing the risks of everyday life, recovering from the unexpected, and realizing their dreams, State Farm is a car insurance company that keeps promises and is built on a foundation of shared values.

Unlike Geico, we will be here whenever you need us.

GEICO

“15 minutes can save you 15%”

• #2 in auto premiums collected according to Berkshire

Hathaway Inc.

• Spent $935 million in advertising in 2013

• Unlimited marketing budget

• Original “low cost” insurance

• Does not promise full coverage or good service, it promises low rates

• Saving you money in a short amount of time

For 25 to 47 year olds who prefer to interact using technology,

GEICO is a car insurance company that makes saving money easy.

Unlike State Farm, our service is done in a fast manner with low rates.

Allstate Insurance

“Are you in good hands?”

• #3 in auto premiums collected according to Berkshire Hathaway

Inc.

• Spent $655 million in advertising in 2013

• Online advertising like the

“holiday decorator”

• Mayhem & Dennis Haysbert

• Football nets in college football

For brand sensitive customers who value local advice and assistance, Allstate is a car insurance company that offers affordable insurance policies. Unlike GEICO, our company offers assurance for customers and local agents.

United Services Automobile

Association (USAA)

• Target market: members of the U.S. Military and their immediate families

• Revenue $20.971 billion in 2013 vs. State Farm $68.291 billion in 2013

USAA

For members of the U.S. military and military families who defend our country and sacrifice, the USAA is a car insurance company that recognizes your service. Unlike GEICO, our company will provide you and your family with a personalized insurance plan.

American Family Insurance

• Operates in 19 states

• “All your protection under one roof”

• The jingle – copyrighted in 1965

• 16th in Property and Casualty Insurance Industry

For families who have a lot to worry about, American Family insurance is an automotive insurance company that allows you to protect your hard-earned dreams. Unlike Geico, our company uses a single point-of-contact for all your auto, home, and life insurance needs.

What people want

• Online access to their policy

• Quality service

• Low cost is not enough

• Consumers say its a relationship not a commodity

• Personalized protection plans to consumers needs

• Full Coverage is important

American Family Insurance

• Value honesty, integrity, and making an impact

• Emphasize making connections with customers

• Want to put smiles back on their customers’ faces

• Convenient

• Pioneered Claim Customer Care Centers – handle small claims and adjust rates immediately, 24/7.

• #longlivedreams

Recommendations

Customer Relationships

• Build customer service relationships

• Know that Happy Customers = Returning Customers

• Set and manage realistic expectations

• Respond promptly

Advertising Campaign

Commercials

Social Media

Print ads in local papers and magazines

• ADD PICTURE

Sponsorship

• We recommend sponsoring little leage and soccer teams in the states American Family Insurance is located.

– Low Cost – Uniforms and Banners

– Families will appreciate they didn’t have to pay for uniforms

– Integrates the brand with family time

– Cost Effective

– Good Cause

Works Cited

• "2013 U.S. Auto Claims Satisfaction Study." J.D. Power. J.D. Power and

Associates, n.d. Web. 17 Sept. 2014

• Aho, Karen. "Geico's Silly Ads Are Working." BloombergBusinessweek.

Bloomberg, 24 July 2014. Web. 18 Sept. 2014.

• "Allstate's Consumer Segmentation Strategy." Allstate. Allstate Insurance

Company, n.d. Web. 17 Sept. 2014.

• "Allstate Lets You Virtually Decorate Any Location -- Just Watch Out for

Mayhem." Advertising Age. N.p., 19 Dec. 2013. Web. 18 Sept. 2014.

• "Car Insurance." ConsumerReports.org. Consumer Reports Network, n.d. Web.

16 Sept. 2014.

• Daniels, Steve. "Geico Overtakes Allstate As No. 2 Auto Insurer." Advertising

Age. Advertising Age, 03 Mar. 2014. Web. 17 Sept. 2014.

• Davidson, Jeffrey. "Seven Great Car Insurance Companies You May Never Have

Heard of." Reply!Reply!, 11 June 2013. Web. 18 Sept. 2014.

• Davis, Scott. "When Geico Accelerated Past Allstate." Forbes. Forbes Magazine,

10 Mar. 2014. Web. 17 Sept. 2014.

Works Cited

• Fletcher, Heather. "Survey Says: Consumers Want Caring Auto Insurers." Target

Marketing. North American Publishing Company, Feb. 2012. Web. 16 Sept. 2014.

• oopes, Stephen. "IBISWorld Industry Report OD4765: Automobile Insurance in the

US."IBISWorld. IBISWorld, Jan. 2014. Web. 18 Sept. 2014.

• Jefferies, Wyatt. "Acxiom's New Study 'Revs Up' Marketing Practices for Auto

Insurance Carriers."Bloomberg. Bloomberg, 12 Oct. 2011. Web. 17 Sept. 2014.

• Morris, Patrick. "How Berkshire Hathaway's GEICO Crushes Allstate and

Progressive." The Motley Fool. The Motley Fool, 27 June 2014. Web. 16 Sept. 2014.

• "Past Winner Example: GEICO." Marketing EDGE. Marketing EDGE, n.d. Web. 17

Sept. 2014.

• Pontoriero, Caterina. "Top 10 Best Insurance Commercials on TV."

PropertyCasualty360. PropertyCasualty360, 24 Apr. 2014. Web. 15 Sept. 2014.

Works Cited

• "Progressive Survey Reveals What Auto Insurance Consumers Want From

Their Agent."Progressive. Progressive Casualty Insurance Company, 11

Feb. 2002. Web. 15 Sept. 2014.

• Schultz, E. J. "How the Insurance Industry Got Into a $4 Billion Ad Brawl."

Advertising Age. Advertising Age, 21 Feb. 2011. Web. 17 Sept. 2014.

• Schultz, E. J. "Inside Allstate's Strategy to Start Mayhem on Twitter."

Advertising Age. Advertising Age, 15 Oct. 2013. Web. 16 Sept. 2014.

• Schultz, E. J. "Muscling Past Mayhem: Geico Rides Giant Ad Budget Past

Allstate." Advertising Age. Advertising Age, 08 July 2013. Web. 16 Sept.

2014.

• Vranica, Suzanne. "How a Gecko Shook Up Insurance Ads." The Wall Street

Journal. The Wall Street Journal, 2 Jan. 2007. Web. 17 Sept. 2014.

• "Winning Begins With a Plan – And A Dream." American Family Insurance.

American Family Insurance, n.d. Web. 17 Sept. 2014.

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