MANAGEMENT DECISION CASE: or ncca ado Advertising to Gain or Keep Market Share i
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MANAGEMENT DECISION CASE: or ncca ado Advertising to Gain or Keep Market Share in the Hypercompetitive Insurance Space When you think about it, insurance is a product that most people would just as soon avoid, as the basic purpose of the product is to protect a consumer from some type of harm (whether a hurricane in Florida or a fender bender on the 405 in LA). The big job of the traffic at a busy city intersection. Progressive has the ubiquitous Flo as a spokesperson helping customers name their own price. State Farm has featured Green Bay Packers quarterback Aaron Rodgers and friends making sure you get your discount double check, while urance marketer is to convince consumers that they Allstates "Mayhem* line of commercials shows all kinds not only need it, but that they want it! Thus, if you watch of calamities that their insurance will cover. And who television or engage with other forms of media, you no doesn't know that "Nationwide is on your side"? J. K. doubt know that insurance companies are some of the Simmons (you know, the guy from Law & Order, Spi biggest spenders on advertising--did you know that der-Man, Juno, The Close. ILove You, Man..) appears GEICO, Progressive, State Farm, and Allstate all rank in in the role of Professor Nathanial Burke, the advice-dol- ad spending ahead of consumer product giants like ing academic in Farmers Insurance Group's "University Budweiser, Coca-Cola, and Home Depot? In fact, ad of Farmers" campaign in which he teaches prospective spending among auto insurers has increased 60 per- Farmers agents about the dangers lurking just around cent just since 2007. Because of this huge investment the corner-laundry fires, hailstones, flying farm ani in ad spending, importance is heightened that insur- mals-which are played out in rather over-the-top ers get it right and experience a return on advertising fashion for your viewing amusement. Finally, Liberty Mutual's line of "Human" (thank you, Human League) What does it take to get insurance advertising right? commercials show people making mistakes leading to In the auto insurance market, in recent years the answer property damage that a Liberty Mutual claims repre- an you investment to that question apparently is humor. All of the compa- nies listed above use a humorous approach to execute digits sentative is more than happy to correct. e Despite the overwhelming rush to insurance humor, their advertising strategy. GEICO is the humor king, with some firms actually have decided to buck the trend and the familiar gecko and his amorphous accent, Maxwell go with a different executional style. In a recent twist the pig (his favorite line-"Wheeee, and the "happier Nationwide has shifted a good portion of its ad dollars 2) a than" ads showing such things as an animated ca happily procl mel into its "Join the Nation" campaign using a slice-of-life aiming to office cubicle dwellers that it's style to generate an emotional connection with the a body builder happy to be directing company. They provide a special website where folks ump day or Advertising. Sales Promotion, and Public Relations CHAPTER 13 411Explanation / Answer
Ans 1 : The first ad from Allstate features Mayhem taking the role of a Douglas fir. A family returns after picking up their Christmas tree, when suddenly their tree falls of the car roof causing another car to crash. The message: If you cut costs, you may not be insured for this.
In the second commercial from Geico, a forgetful spaceship captain loses keys to his ship when he needs them the most, surrounded by the enemies. The message : Protection from unexpected threats is essential.
The ads are humorous, but deliver the message with efficiency, engaging the customer.
It is a type of product advertising.
Ans 2: Modern age advertising techniques like digital and social media promotions are more effective than TV ads. The companies should shift focus to sites like YouTube, Facebook, Twitter and Instagram to reach out to the target audiences who spend higher duration of time on these, in place of TV. To make the message more engaging and impactful, use of humour and light satire is essential.
Ans3: The differentiating factor that sets apart State Farm from its competitors is the message of dependability and reliability and making the customers realising the need of insurance in a serious tone in comparison to the competitors. The company wants to communicate that it is a true ally for those in need. To
The media for advertising are not different, but the style of communication is subtle, serious and engaging, that commands attention.
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