About Us - WordPress.com€¦ · SWOT Analysis Strengths: All inclusive service. Not just an automotive service. Provides automotive assistance, travel help, and helps find great

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About Us:

Religion:

We believe in the ideology that successful communication means more than

what is being said. Our business is to get people to adopt an emotional attachment to

your product. We don’t sell, but we definitely make it very easy for you to sell. Even

though our services include all media types, we consider ourselves pioneers of the

digital world.

Our Wonders:

We have experienced the pleasure of working with Nissan North America, Stride,

Zenergy, Jimmy John’s, National Education Association, Ben & Jerry, Flip Flop Nation,

and Drug-Free America.

Why us?

Our creators have a perfect understanding of economics and communications.

We approach things from your point of view, then from the consumer’s, and then finally

from a communicator’s. We study your reason for being, and then use that to turn our

projects into wonders that help you do what you do best. Not to mention, we are highly

experienced in industries that your product serves, main one being auto. We speak

fluent digital, so does your target market‘s biggest influencers.

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Market and Client Brand

Market:

Road side assistance clubs are

growing in number, thus, the

market is more competitive.

"Motor clubs such as AAA . . . used

to be a driver’s only option. But these days, an army of other businesses are

offering roadside assistance plans: insurance companies, carmakers, oil

companies, credit-card issuers, even cell-phone service providers.”

According to Usage Statistics for blog.autoroadservice.com, AAA was 13th on

the list for most “hits” when searching for a motor club.

Clubs like Volvo’s and Exxon’s surpassed AAA.

Current trend: the move from motor clubs to

phone service providers for road side assistance

o Motor clubs only cover the vehicle

registered/insured or must have a member

driving to receive any of the services.

o With cell phone providers, any person with

the specific cell phone can receive

assistance in any car.

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Another trend: Subscription-based in-vehicle communications.

o Services like OnStar allows drivers and passengers to communicate with

road side assistance representatives through special devices that the

vehicles are equipped with.

o Ex: when a passenger/driver presses the red OnStar emergency button,

vehicle information and the user’s GPS location are immediately collected.

o The info is instantly sent to OnStar where a representative is notified to

help.

Road side assistance is growing in demand, but how consumers receive it is

changing.

o AAA and similar services are no longer the first choice.

o Consumers are going through their insurance companies and auto

manufacturers (i.e. GM) to get the service.

Insurance companies and auto manufacturers appeal to consumers because

they have a reputation of being quicker, more reliable, and less expensive.

Some lack services (discounts, financial, etc.) that AAA has.

o Doesn’t seem to negatively affect consumers because reliability and quick

road side assistance is their primary concern

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Client:

American motor club that specializes in

travel, discounts, financial, insurance

and automotive services.

51 clubs throughout North America

51 million members

AAA’s marketing = primarily direct mail advertising and personal sales.

AAA stands are found in front of the tax collector’s office, or DMV.

Great emphasis on direct mail, especially for their insurance services.

Few OOH advertisements

o AAA rented a billboard in Lawtey, Florida to warn motorists of a speed trap.

AAA also promotes itself through discounts.

o From hotels to museums, many businesses (especially ones related to

travel) give discounts to AAA members.

o Problem: Many members either were never informed about the discount or

forgot due to lack of promotions in advertisements.

o Discounts and savings should be highly emphasized.

o Result: AAA will increase their primary target audience of adults and of

teens as well.

o AAA needs to target teens with the benefit of discounts on fun activities.

o Target parents with the comfort of their child’s assured safety.

AAA is missing out on social media and digital media.

o Their Facebook page has 3,275 “likes”, and only 17 “talking about this”.

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o When searching “American Automobile Association” or “AAA” on YouTube,

all the videos that came up were unrelated to the company.

o Twitter needs to be more incorporated in social media efforts.

o AAA’s Twitter lacks visitors, with only 4,853 “tweets” and 10,567

“followers.”

o Overall message = the company has minimal online presence, which is

crucial for almost every organization or business in today’s world.

Affordable = main selling point of AAA memberships.

Psychological advantage

o Gives the consumer a peace of mind, since the member knows that there

is someone that will help them out in a bad situation while they are on the

road.

Brand positioning is road-side services and travel insurance for automobile

owners at an affordable price.

Many non-for-profit organizations lack the money to advertise

o This may be holding them back from expanding

o Their focus should be social media and digital media.

o They need to fully take advantage of these advertising vehicles because

they are the least expensive while still highly effective.

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SWOT Analysis

Strengths:

All inclusive service. Not just an automotive service.

Provides automotive assistance, travel help, and helps find

great hotel and cruise accommodations. Also provides discount

services for car rentals. Helps with flight information and bookings.

Can arrange tour vacations, cruise vacations, and hotel

accommodations directly through the AAA website.

Every aspect of your trip is enriched from having a AAA membership.

Several different packages for members, including AAA Classic, AAA Plus and

AAA Premier. Each offer a variety of services.

If you travel to an affiliate auto club’s country, you will have equivalent benefits as

the members in those countries.

Weaknesses

In terms of travel accommodations, AAA has a lot of competitors

including Priceline, Orbitz, etc. that also make scheduling

cruises, renting hotels, and renting cars seamless and easy.

Orbitz and Priceline have more money to spend on advertising.

People don’t associate AAA with hotel accommodations,

believing AAA to be a service that provides fancy travel

maps.

Some people may not consider the service to be worth the cost.

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A lot of younger demographics associate AAA membership with elderly

individuals. May confuse AAA with AARP.

Opportunities

AAA isn’t just an automotive club, it is a travel agency

as well.

Compared to Orbitz and Priceline, AAA also provides

automotive road assistance in case you break down. Don’t

fret about breaking down on some obscure stretch of road and have to worry

about walking 20 mi to the nearest gas station, only not to make it and wind up

as some human centipede.

Whilst AAA is associated with a service meant for an older demographic,

millennials who may not have been taught how to change a tire or jump a battery

could find use for such a service.

Threats

Many insurance firms have websites like AAA in

which they can book hotel reservations, cruise vacations

and travel packages.

Many insurance firms have services similar to AAA's

Competitive sector, with a fast paced growth of competitors such as OnStar, and

other auto clubs

Some of AAA’s competitors don’t require memberships.

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Competitive Analysis

Competitors of AAA consist of any business that offer roadside

assistance with yearly membership option, or pay per service format.

When we consider all businesses that offer services such as towing,

tire change, battery re-charge and such, because of the pricing gap,

it is clear that direct competitors would be the ones that have a

similar membership structure as AAA, not pay per service businesses. After a review of

several direct competitors, we have found that the following four businesses are the

ones to be watched closely;

OnStar is a road side assistance/emergency service developed by GM initially

for its own vehicles in addition to Cadillac, Chevrolet and Buick. Because of its growing

success, the company now has built a mirror that has OnStar program built in, and can

be installed in most vehicles. The brand positioning of OnStar is built around safety

more than road side assistance.

Features:

Roadside assistance

Emergency responder

GPS

Anti-theft device

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OnStar Cost:

$199 after an instant rebate, and has a fee of $199 per year

AAA Cost:

$66-$124 per year plans

Strengths:

Safety features

Owned by a car manufacturer (GM)

Advertised in GM car ads

Heavy advertising in internet, TV, radio and print

Weaknesses:

Expensive

No travel, discount, insurance, and financial benefits

Recommendation:

AAA would benefit from pointing out the affordability advantage it has over OnStar, and

the fact that it is not just a road service company, and has many other benefits that a

consumer can use while on the go. OnStar’s growing market share and somewhat

unfair advantage over GM vehicle owners is something to be concerned.

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Allstate Motor Club is a road side assistance service affiliated with Allstate

Insurance Company. The company is very similar to AAA in terms of the road side

services they offer, including the additional features AAA has such as travel discounts.

The positioning this company is portraying is similar to that of AAA’s; affordable, helpful,

friendly, and provides peace of mind.

Features:

Roadside assistance

Travel services/discounts

Insurance sevices

Allstate Motor Club Cost:

$48-$174 per year plans.

AAA Cost:

$66-$124 per year plans.

Strengths:

Owned by a major insurance company (Allstate Insurance).

Cheaper basic plan than AAA

Weaknesses:

Not as well known as AAA

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More expensive premium plan than AAA

Recommendation:

Allstate Motor Club is very similar in terms of the service they provide, and the fees they

charge, so it is one that needs to be watched closely. AAA advertising should focus on

being independent, and non-profit, compared to companies such as Allstate Motor Club,

so the consumer realizes they are not paying the extra profit margin with AAA.

Better World Club is a road side assistance, insurance and travel service

company. It honors itself as being the only environmentally friendly auto club. The

services it offers is similar to AAA, and the company directly states that it was built

around the idea of competing with AAA. 1% of annual revenues of Better World Club

goes to environmental clean up efforts and advocacy groups.

The positioning the company embraces is that it is an affordable alternative to AAA, and

is more eco friendly than AAA.

Features:

Roadside assistance

Travel services/discounts

Insurance services

Better World Club Cost:

$56-$123 per year plans

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AAA Cost:

$66-$124 per year plans

Strengths:

Environmentally friendly approach

Cheaper overall plans than AAA

Weaknesses:

Roadside assistance not all inclusive as AAA

Charges a start-up fee

Not as known as AAA

Low budget

Recommendation:

Better World Club presents a very competitive nature, especially towards AAA.

Most of this company’s marketing tactics are based off its environmentally friendly

personality. It is affiliated with several environmental organizations. However, they seem

to be lacking a major budget for advertising, and at this point is not specifically a threat

to AAA. Better World Club could become a threat eventually since the media and the

new generation support the greener approach.

GM Motor Club is a roadside assistance service owned by the car manufacturer,

GM. Its services cover the member, and his/her spouse for the basic plan. The brand

positioning of GM Motor Club is very similar to AAA, built around safety and affordability.

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Features:

Roadside assistance

Travel services/discounts

GM Motor Club cost:

$84-$114 per year plans

AAA cost:

$66-$124 per year plans

Strengths:

Covers the spouse

No service call or mileage limits

Cheaper premium plan than AAA

Direct link to GM vehicle owners

Weaknesses:

One of too many GM services (confusion)

Minimal advertising

Recommendation:

The services this motor club offers are clearly similar to AAA, however the major

difference is that there are no limits on service calls, or mileage restrictions. This aspect

of the plan could make a difference for drivers who travel constantly. Just like GM’s

OnStar, this company is also one that AAA should be concerned about and keep under

a close radar.

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Target Insight

Primary

Demographic: Middle class parents

who have high school-age children

who will probably be leaving the home

soon.

Rationale:

o There will be many anxieties in having a child driving or leaving the home

for the first time. (This demographic tends to plan and be more prepared for

life’s mishaps.)

o Their worries are often linked to their children and how prepared they are for

life.

o They tend to have money and worry more about it more than their children,

who haven’t incurred all of the bills they create.

o They want independence for their children but provide budgeted help during

their children’s first years on their own.

They will need to be convinced that buying their kids AAA will ultimately save them an

“I need money” phone call.

Secondary

Demographic: 16 to 24 year old male

and females who will be the adjacent

demographic in our integrated

marketing communications plan.

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Rationale:

o This demographic has a low membership rate and there is an opportunity to

increase membership by creating appeal through AAA’s expanding role in

discounted shopping and travel.

o This demographic isn’t in planning mode yet and typically views AAA as

something old people use.

o This age bracket is highly tech savvy and already beginning to use digital

media to make the most out of their limited budget.

Through advertisements, AAA will convey to them the ability to have access to an

endless number of benefits.

Target Collage

Janette, a 45 year old mother of two, works as a nurse. She lives in Ohio, works hard

and has the typical worries and concerns of a mother. Her 18-year-old son is going to

college soon and her 16-year-old

daughter, who is already a constant

cause for concern, will soon be on the

road. Since the birth of each of her

children she has been putting away

money to pay for their college. She gets

great satisfaction out of being able to put her children through college but will

subsequently be keeping everyone on a tight budget. Janette would appreciate the

peace of mind that comes with having AAA cover her family in the event that the

unexpected happens.

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What is our Messaging Strategy?

We intend to attract new customers:

By appealing to high school and college age parents and the students

themselves.

At home, schools and near areas of work

When the teen is about to hit 16 or 17 years old and driving to high school /

college

By running ads, coordinating events with local high schools and colleges, and via

direct mail.

AAA Positioning

Our Position: As kids are about to graduate high school and leave for college,

many take their first cars, perhaps even their second. They take them to get around,

just like everyone else. AAA is a business that offers a full range of services that

consumers of all driving ages can benefit from.

The benefit for the younger target market would be the roadside assistance

service as well as the various discounts on attractions and travel. As far as the

parents, which are the primary targets, the benefit would simply be the peace of

mind while their kids are away traveling from/to School and other destinations. It's

like having someone watch over your loved ones when you can't.

“There for you… there for your kids… there always.”

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AAA Identity

AAA Identity: AAA has helped people all over the country when they’ve busted a

tire, broke down on the side of the road, gotten lost on some two-lane mountain

road in North Dakota or locked their keys inside their car. We don’t just help you

get to your destination by car, but by boat and airplane. We’re there every step of

the way when you travel: hotel accommodations, maps, etc. We don’t exist

without members, and we exist because we have members.

Advertising Strategy:

Communicate the benefits that high school and college students gain from

having a AAA membership to parents and students.

Help give peace of mind to parents of high school and college students.

We are asking consumers to call AAA or visit their website to learn more

information about AAA and their member clubs.

We will selectively target the parents of college students and high school

students.

Establish a tradition.

Promotions:

Numerous car shows occur throughout the United States annually. AAA should

sponsor events to build brand awareness and detail their services.. There

are high school activities AAA could provide. Furthermore, AAA could work with

driving for local high schools throughout the United States.

Sweepstakes, scholarships and sponsorships for college and high school

students.

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Media:

Although television is risky due to the price, it offers the most visual way to

communicate AAA’s message with the most reach. Billboards are easy to see and they

are everywhere along major highways. Parents will still pick up Auto Trader and local

newspapers to see used car ads.

Path to Success

When parents think about roadside assistance emergency issues, AAA will be

the first brand to come to their minds, forming a stronger bond between AAA and

consumers.

Kids will not only realize that AAA is a great roadside assistance service, but also

that it offers many other benefits in which they would be interested.

Once parents see how AAA is a great way to keep their children safe while on

the road, they will visit the website or and call to request more information

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Parents will realize there’s a peace of mind that comes with knowing that if their

son or daughter has an accident or breaks down or can’t change a flat, they’ll be

taken care of.

Parents will purchase their AAA membership.