Farmers Insurance - ADV 3008 Final Group Presentation

Brandon Schuster, Emily Pembroke, Penny Miller, J. Kelly Davis, Paige Polatas, Veronica Case, Tessa Walter

We’ve been there.Let’s grow together.

Table of Contents

Executive Summary 1

Company Analysis 2-3

Community Engagement 4

Situational Analysis 5

Competitive Analysis 6-7

Consumer Analysis 8-9

Planning and Strategy 10

Creative Execution 11-12

Media Plan 13

References 14

Executive Summary

Farmers Insurance Group’s current position appeals to a family oriented client base. The current position highlights sensible insurance options, and has been under improvement to educate agents with the tools needed to grow as a company. This message has gained the trust of the older demographic and can be further developed in order to build a solid relationship with the consumer.

In order to expand the Farmers brand, Farmers needs to tap into a younger demographic, 18 to 26 year-olds. In order to target that age group, Farmers needs to expand on its current campaign by positioning the company in a relatable manner.

DaBest Advertising Agency will encompass the essence Farmers represents as a company and a credible insurance agency and will successfully assist in growing clientele. By establishing the Farmers name with this age group, through means of social media and other youth-related technology outlets, a new demographic will be reached and will help Farmers be the first choice in choosing options.

1

Company Analysis

Brand Identity:Operating since

1928, Farmers’ main goal has been to give lower rates to those

who drive safely. Their foundation started with low

coverage for deserving rural

drivers who other companies

overlooked.

Vision: Farmers will drive innovation and operational excellence to provide the best value and experience for every customer we are

privileged to serve.

Financial Health 2010-Revenue: $67.85

billion-Profits: $3.434 billion-Total equity: $33.32

billion

Farmers operates in 41 states with 20,000 employees, servicing more than 15 million

customers.

2

Company Analysis

Strengths-Competitive with numerous discounts

• Accident Free, Good Student, Dual Auto/ Home purchase-Offers beneficial programs to encourage safe driving

• Y.E.S (You’re Essential to Safety)• iClaim Application

-Seasoned clients receive top of the line rates

Weaknesses-Customer reviews are lacking compared to other car insurance companies

• JD Power’s rated 3 out of 5 for overall satisfaction and ease of contact

-Ranked worst in claims and payment less than ten years ago-Could show major improvement in the financial sector

• JD Power’s rated 2 out of 5 stars in policy offerings, billings and pricing

Opportunities-Sister company 21st Century-Yellow Cab partnership- “Let us drive you home this holiday season”-MTV Network partnership-University of Farmers campaign-Ranked ‘Most Improved’ in last five years-Facebook sweepstakes for a trip to NYC

Threats-Ranked 5th in market share behind major competitors-Not as well known as other insurance providers-Unsuccessful SEO

3

Community Engagement

Farmers is building a sustainable, environmentally friendly state-of-the-art sports stadium, entertainment, and premier convention center in downtown

Los Angeles. The Farmers Field project, which will be completed in 2016, will create jobs for the L.A. community, boost its economy, and bring NFL

football to the city.

http://www.farmersfield.com

4

Situation Analysis

Farmers Business Operating Profit

What Is Farmers Insurance?Farmers is the US subsidiary of Zurich Financial Services, one of the world’s largest insurance

groups, and one of the few to operate on a truly global basis. Zurich’s mission is to help Farmers’ customers understand and protect themselves

from risk.

5

Competitive Analysis

Allstate Strength: Extremely comprehensive website detailing their insurance products with a virtual car insurance guide. They have a diversified product portfolio.Weakness: 2 out of 5 stars in the category of pricing, according to the 2011 JD Power auto insurance provider ratings.

ProgressiveStrength: Pet injury. “Name Your Price” program and “Immediate Response Vehicles” Weakness: Work inefficiencies in customer service and cost structure.

State FarmStrength: Strong U.S. brand name, major U.S. property and casualty insurer, extensive distribution network.Weakness: Upon states regulation of homeowners insurance rates, State Farm would drop their clients state wide. Resulting in clients needing to obtain new insurance immediately.

GeicoStrength: Easy to use website. Fast customer service. Partnership with wildlife. Weakness: Little face interaction with agents - mostly done through phone or internet. Their current commercials are oversaturated and inconsistent. 6

Competitive Analysis

2011 JD Power Auto Insurance Provider Ratings

Facebook Social Mentions as of November 27, 2011

Company Followers

Allstate 25,689

Progressive 10,130

State Farm 17,932

Geico 6,816

Farmers 5,721

Company Likes Mentions Percent

Allstate 43,243 516 1.1858

Progressive 35,985 630 1.7507

State Farm 176,702 7,725 4.3718

Geico 197,998 1,831 0.92476

Farmers 2,374,666 884 0.03723

Twitter Followers

Farmers’ competition is currently more successful at reaching the millennials through their primary source of communication. Although Farmers has the most Facebook page “likes,” they are significantly lacking in establishing consumer interactions. Even though Farmers has a solid database of social networking followers, their last Facebook post was Nov 7, 2011, which was more recent than their last Tweet on Oct 21, 2011.

7

Consumer Analysis

 VALS: Achievers (13% of pop.)

Lifestyle Characteristics Lives center on career & familyHave formal social relationsAvoid excess change or stimulationMay emphasize work at the expense of recreationPolitically conservative

Psychological CharacteristicsModerateGoal orientedConventionalDeliberateIn control

Consumer CharacteristicsAttracted to premium productsPrime target for a variety of productsAverage TV watchersRead business, news, and self-help publications

 VALS: Experiencers (12% of pop.)

Lifestyle CharacteristicsLike the new, offbeat, and riskyLike exercise, socializing, sports, and outdoorsUnconforming, but admire wealth, power, and famePolitically apathetic

Psychological CharacteristicsExtravertedUnconventionalActiveImpetuousEnergeticEnthusiastic and impulsive

Consumer CharacteristicsFollow fashion and fadsSpend much of disposable income on socializingBuy on impulseAttend to advertisingListen to rock music

Current Consumer: The core consumers of Farmers’ Insurance are adults with families.

Prospective Consumer: These consumers are ages18 to 26 and are both male and female.

8

Consumer AnalysisConsumer Collage

9

Planning and Strategy

Positioning Message: The current Farmers campaign focuses on knowledgeable agents, yet it lacks involvement and a relationship with the new target audience. Therefore, Farmers will move past “open up a local Farmers Insurance firm” campaign strategy and show why Farmers Insurance will be the best choice to help you when you’re in need. Farmers will inform the 18 to 26 year-old consumer about college student and post-grad discounts.

Media Message: Social media, digital, outdoor advertising, television, possible print.

Tonality: Comedic, rational, confident, happy, optimistic, realistic, contemporary, informative.

MarCom Matrix Integration: Advertising, public relations/publicity, promotion, new media

PR Campaign: Yellow Cab Company, press releases for MTV partnership, “Professor Burke Lecture College Campus Tour,” apparel for University of Farmers and Prof. Burke.

10

Creative Execution

TV Spot:

In split frames, the commercial shows the connection between the targeted age group and the Farmers agent. The first frame opens with a side-by-side view of a college graduate and a Farmer’s University graduate getting ready in their cap and gown for their graduation. The second frame is a side-by-side view of the graduates sitting in their seat waiting for their name to be called. The third frame is another side-by-side view of the two standing after their names have been called and the fourth slide is of them walking across the stage to their deans. The fifth frame is of the two getting ready to shake the hands of the deans and the camera closes up into the actual handshake. In the sixth frame, the camera pans out and shows that the now recent college graduate and the recent Farmer’s agent are shaking hands. The side-by-side shot that was consistent throughout the entire spot is diminished in the last frame. The last frame fades out into the Farmer’s logo with the tagline: “We’ve been there. Let’s grow together.”

Creative Execution:As a follow up to Farmer’s recent campaign to rally more insurance agents, the next campaign will incorporate both themes into a TV commercial and possibly YouTube videos. This spot will help capture the essence that Farmer’s agents can relate to where recent college graduates are, and they can help them make the transition to their own policy.

Webisode/YouTube: A potential webisode or YouTube video could elaborate on the theme of the TV spot and make it into a movie trailer-esque video. It would be called something along the lines of “The Graduates” and would include of an overly dramatic feel of the graduation to incorporate humor to the video.

11

Creative Execution

12

Media Plan

Farmers clients will be able to

receive reminder alerts through text or smart phone app for

account updates and when

payments are due.

MTV Networks owns Ratemyprofessor.com:

Create a profile page for Farmers’ spokesperson

Professor Nathaniel Burke. Students can “rate” him during heavy promotions during class registration

(middle-to-end of the semester).

J.K. Simmons, the actor who portrays Professor Nathaniel Burke, can

guest star in various MTV scripted shows as

himself. In addition, Farmers “Graduation” commercial will air on

MTV Networks.

Social Media: Create Facebook “like” page and Twitter account for

Professor Burke. He will update words of wisdom to his “students,”

who are agents and clients.

Brand Farmers with MTV and create the “MTVU Student

Discount.” This will be similar to the student discount

Farmers already has, but marketed with MTV. This is meant for college students

and post- grads up to age 26. Clients will be able to get

“Extra Credit Discounts” for having an internship, job or a

qualified GPA.

Promotion: Farmers cares and wants their clients to be safe and not drink and drive. If a client presents their Farmers Insurance card during the holidays, they will receive a 50%

discount on their cab fare.

13

References http://www.zurich.com/aboutus/whatwedo/farmers/

http://www.zurich.com/aboutus/ataglance/financialhighlights/

http://www.carinsurancecompanies.com/what-are-the-top-10-car-insurance-companies-by-market-share/

http://www.farmers.com/about_farmers.html

http://en.wikipedia.org/wiki/Zurich_Financial_Services#cite_note-AR2010-0

http://www.facebook.com/progressive

http://www.facebook.com/Allstate

http://www.facebook.com/geico

http://www.facebook.com/statefarm?ref=ts

http://www.facebook.com/FarmersInsurance

http://www.carinsurancecompanies.com/

http://www.farmersfield.com/#

http://www.globalbusinessinsights.com/content/rbfs0060m.pdf

http://laurennp.files.wordpress.com/2009/05/imc_geico-case-study.pdf

http://www.brandchannel.com/papers_review.asp?sp_id=357

http://www.globalbusinessinsights.com/content/rbfs0060m.pdf

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