Integrated Marketing Communications Case Study  · Web viewDevelop an integrated marketing communications campaign for GEICO by reaching its audience interested in purchasing insurance

Integrated Marketing Communications Case Study

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GEICOResearch elements

Background

GEICO, the Government Employees Insurance Company, is the third-largest, private passenger auto insurer in the U.S., providing auto coverage to nearly 8.5 million policy holders, and insuring more than 14.4 million vehicles. GEICO also offers insurance for motorcycles, all-terrain vehicles (ATV's), boats, homes, apartments and mobile homes, as well as commercial auto insurance, personal umbrella protection and life insurance (Geico, 2008).

GEICO’s first customers were government employees and military personnel. Leo Goodwin, who founded the company in 1936, determined he could distribute automobile insurance at reduced prices by selecting primary customer groups and marketing directly to them. Seventy years later, GEICO continues “to offer excellent coverage at low prices and provide outstanding customer service” with the help of more than 23,000 associates (Geico, 2008).

History

Amidst the Great Depression of the mid-1930s, Leo and Lillian Goodwin took a risk and built GEICO from the ground up. By lowering company costs and marketing directly to consumers, the couple passed along lower premiums and still earned a profit. In 1936, GEICO operations were officially established in Washington, D.C., and the two worked to underwrite policies, set rates, issue policies and market auto insurance to customers, federal employees and military officers. By the end of the first year, there were 3,700 GEICO policies in force and a staff of 12 people.

In 1948, Lorimer Davidson, an investment banker and a friend of the Goodwins, joined GEICO to help them find new investors, and following Goodwin’s retirement, he was named successor and presided over GEICO’s new headquarters in Chevy Chase, Md., in 1959. Growth continued and in 1964, GEICO passed the one million policyholder mark, and net earnings doubled to $13 million two years later.

In 1965, GEICO opened numerous sales and service offices for walk-in customers and its first drive-in claims office. Later in the 1980s, GEICO introduced the 24-hour, 365-day telephone service for claims, sales and service as its emphasis on customer service deepened.

Olza "Tony" Nicely was named GEICO's new chairman, president and CEO in 1993. In 1995, Berkshire Hathaway investment firm bought the remaining shares of GEICO's outstanding stock, and GEICO soon became a subsidiary of a very profitable organization. Both changes led to an expansion in customer base and an increased advertising budget that would send GEICO toward higher national visibility.

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Partnership with Auto Repair Xpress created more than 400 repair shops across the nation, providing a full service package of extras to policyholders, including onsite adjusters, onsite rental vehicles, lifetime service guarantees and continuous claim supervision.

Currently, GEICO is the largest auto insurer in New York, Maryland, the District of Columbia and Hawaii, and is very near the top in several other states. Furthermore, the company’s assets total $21.9 billion (Geico, 2008).

Products

Insurance

Autoo Customers can save 15 percent or more on car insurance by switching to

GEICO.o Premiums

Bodily injury liability Medical payments, no-fault or personal injury protection coverage Uninsured motorists coverage Comprehensive physical damage coverage Collision Property damage liability Rental reimbursement

Motorcycleo GEICO covers most types of motorcycles including: cruisers, street sport,

touring, high-performance bikes and scooters. ATV

o Covers all terrain vehicles on the trails, including: Liability Comprehensive Collision Uninsured/Underinsured

Umbrellao A personal umbrella policy is useful if the value of assets exceeds auto,

homeowners, and/or boat insurance limits. It can also protect from additional liabilities not covered by your other policies.

Homeownerso Designed to cover the structure of the home and includes protection for various

kinds of personal property, as well as liability coverage. Renters

o When renting an apartment, single family home, or townhouse, the landlord's policy probably does not cover personal items in the event of theft, or fire and water damage.

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o A renter’s policy protects personal property, such as electronics, furniture, and clothing from a variety of losses.

o Liability coverage helps if someone is accidentally injured on the property due to negligence.

Condo/Co-opo Consumers who live in large high-rise style buildings, side-by-side townhomes,

or own a condo or co-op need insurance to protect personal items or the interior walls of the unit.

RVo Covers recreational vehicles, including sport utility, motorhomes and trailers.

Towable RV’s, such as conventional travel trailers, fifth-wheel travel trailers, travel trailers with expandable ends, folding camper trailers and truck campers.

Toy-haulers to transport motorcycles and ATVs. Life

o Prepares consumers for the unexpected and protects family members in case something happens.

o Income replacement is the largest reason why people buy life insurance, and it can be used to achieve specific business or estate planning goals.

Boat/PWCo Protects consumer’s boats, jet-skis, sailboats, and personal watercrafts against

accidents, vandalism and liability. Flood

o Consumers, who live in flood-prone areas and have a mortgage, may be required by federal law to have flood insurance that would cover water damage to the structure of the home and personal property.

Mobile homeo Policies cover the mobile home itself, items of personal property, and include

liability coverage that could help cover accidents caused by negligence. Overseas

o GEICO subsidiary, the International Insurance Underwriters, Inc. (IIU), acts as the consumer’s insurance agent while abroad to insure all documents needed are shipped, registered, and cross international borders.

Commercialo Private passenger insurance policies do not cover vehicles for most business

use, and this coverage protects commercial cars and trucks. Identity theft protection

o Protects the consumer’s credit and name by signing them up for Identity Theft Protection (Geico, 2008). 

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Customer privileges and savings

GEICO policyholders are eligible for special discounts from more than 80 participating retailers through the GEICO Privileges program (Geico, 2008), including the following:

Travel and entertainmentAlamo Car RentalBlockbusterBusch Gardens in Tampa Bay, Florida Theme Park TicketsBusch Gardens Williamsburg in Virginia Theme Park TicketsChoice HotelsDIRECTVeBags.comeMusic.comEnterprise Rent-A-CarExtendedStayHotels.comGecko Store OnlineGreat American DaysHappy Camper Half Price ClubHertzLegoland Theme Park Ticketshotels.comMovie TicketsNational Car RentalRandMcNally.comSamsonite Company StoresSeaWorld Orlando in FloridaSouthwest VacationsTheme Park Ticket SavingsThrifty Car RentalTicketsNow.comUniversal Studios Hollywood

Auto and motorcycleCarperksDriversEdDirect.comGEICO InsuranceJC MotorsJCWhitney.comLoJack.comMAACOMeinekeMonroRoadLoKSuomy USATrafficSchool.comYukonLeather.com

Home and garden1-800-FLOWERS.comADTBrinkscostco.comDavidscookies.com EmbracePetInsurance.comFromYouFlowers.comFTD.comHeyYouBaby.comIlluminations.comMrs. FieldsOfficeDepot.com Omaha SteaksProFlowersSears Commercial

Everyday needsBarnes & Noble.comBluefly.comdanskin.comDentalPlans.comEastbay.comFashionBug.comFootlocker.comFragranceNet.comHanes.comHelzberg DiamondsICE.comIntuit TurboTax®JustBetweenFriendsLibertyTax.comMagazines.comModells.comMotherhood MaternityPODSShoes.comskechers.comthesportsauthority.comZales

Target audience

Auto insurance, as an industry, has perhaps the broadest target audience of any product, and has no niche. Regardless of mood, status, income or location, various types of people drive and hopefully have insurance. Specifically, GEICO targets males and females ages 24-64, and appeals to customers with humor and wit.

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Insurance industry distinction

GEICO's method of conducting business- through direct sales over the phone and via their Web site- is a key distinction in the auto insurance industry. With the launch of their first large-scale television and radio advertising campaign, the company acquired new customers without the aid of sales agents.

GEICO first developed a clear, five-point message about its insurance: a 15 minute rate quote; 15 percent savings; complete 24-hour service; eliminating the middleman and 48-hour claims handling. Each ad uses a strong call to action phone number or Web address, and a sense of humor to convey the sales message (Geico direct, 1999).

GEICO competitors have begun to use the same wit in their advertising campaigns, as well. Nation Wide

o The “Life Comes at You Fast” campaign uses humor to break through negative thoughts and open the door for healthy discussions about insurance and financial services to prepare for the unexpected.

o Features accident forgiveness (Nationwide, 2008). Allstate

o The “Our Stand” campaign takes a strong stand for consumers’ interests by delivering a simple, straightforward message that highlights the many benefits of having insurance protection (Allstate, 2008).

Progressiveo The “It’s all about you. And it’s about time” campaign features ads in which

insurance is a tangible product that consumers shop for in a store. The witty and corky cashier checks customers out at the register and discusses the benefits of the company and finishing the commercial with- “now that’s progressive.”

Growth

Since its founding in 1936, GEICO has grown to have 8.5 million policy holders and more than 23,000 associates, and the company is still expanding. In 2007, GEICO had the best growth record among major auto insurers. Below are statistics, as well as a portion of the 2007 Berkshire Hathaway Annual Report.

Increased market share to 7.2%. Annual ad expenditures increased to $751 million. Sales reached $12 billion. Increased share of the motorcycle market from 2.1% to 6% in three years (Berkshire,

2007).

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Financial strength

GEICO’s financial strength affords them the opportunity to offer low premium insurance. As a wholly-owned subsidiary of Berkshire Hathaway, Inc., GEICO has assets of over $15 billion.

A++ From A.M. Best: o A.M. Best is a leading independent analyst of the insurance industry.o GEICO has consistently earned its highest A++ rating for financial stability. o Only five percent of property and casualty companies earn this superior rating.

AAA From Standard and Poorso Standard & Poors (S&P) has consistently awarded GEICO affiliates its highest grade

for financial strength.o GEICO also underwent S&P's most rigorous review and achieved top ratings for

financial strength earning the Standard & Poors Security Circle designation (Geico, 2008).

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Financial Information (Geico, 2008)June 30, 2008 GEICO GEICO

GeneralGEICO Indemnity

GEICO Casualty

Admitted Assets 12,714,748,224 159,418,218 4,732,182,752 260,485,366Reserves(Loss, LAE,UPR)

7,316,434,266 - 2,780,302,494 41,073,231

Total Liabilities 7,995,913,805 80,691,316 2,980,619,826 136,932,309Policyholders' Surplus

4,718,834,420 78,726,902 1,751,562,926 123,553,058

Customer service

15 minute quote

One of GEICO’s most prevalent selling points is “15 minutes could save you 15% or more on car insurance,” and ads boast that “it's quick and easy to get a free car insurance quote online. The online policy application is available 24/7.” This feature is also available through their 800 telephone number in which consumers can talk with an agent.

Local stores

GEICO has more than 23,000 associates in 12 major locations around the country, including:

Tucson, AZ San Diego, CA Lakeland, FL Macon, GA

Honolulu, HI Coralville, IA Chevy Chase, MD Buffalo, NY

Woodbury, NY Dallas, TX Fredericksburg, VA Virginia Beach, VA

The company is now opening local offices in various communities and introducing personal agents to clients. At http://www.geico.com/local/, consumers can find the contact information of the closet representative to them and visit the office. The Gecko himself personalizes the message by saying, “Shopping for insurance? Give Alyssa Palermo a call. She's a personal friend of mine. Alyssa Palermo and her staff of licensed insurance professionals live and work right in your community. So if you need to set up a policy, adjust your coverage, or find even more ways to save money on your car insurance, they're there for you. Get the personal attention, expertise, and savings you deserve. Call or visit your local GEICO office today.”

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Icons

Currently, GEICO uses two different icons, or spokespeople, to express two messages- one boasting savings and the other an easy-to-use Web site- that each carry strong ties to the GEICO brand.

Geckoo Introduced in 2000o Developed by the Martin Agencyo Proposed when consumers where pronouncing GEICO as gecko.o Computer-generated talking lizard.o Charming reptile with an English accent.o Chats about being the GEICO spokesman and saving people money on car

insurance.o Voted one of the most popular advertising icons in 2005.

Cavemano Deputed in 2004o Developed by the Martin Agencyo Neanderthal-like caveman living in the modern

worldo Sarcastic, yet sophisticated, spokesmeno Campaign used to brand GEICO’s Web site.o Emphasizes that using geico.com is "so easy

even a caveman could do it." o As the Cavemen are disgusted and try to

distance themselves from GEICO, they bring more attention to the auto insurer.

o Voted one of the most popular advertising icons in 2008, and has become part of the American pop culture (Geico, 2008).

Corporate social responsibility

Safety Belt Poster Contest

Young artists across the country age 6-18 are invited to enter the Safety Belt Poster Contest to help spread the safety belt message and save lives. Students design, draw, paint, color or cut and paste an original picture and message emphasizing the importance of using safety belts. Winners receive cash prizes (Geico, 2008).

Community events calendar

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GEICO works hard to “ensure a better community for the people they insure.” As part of GEICO's corporate mission—to encourage active, involved citizenship— the company’s associates read, build, mentor, walk, run, and coach to help people in need. Through GEICO Corporate Community Citizens (GCCC), the associates contribute to, and participate in a variety of activities where offices are located, and volunteers average five hours a week helping many organizations (Geico, 2008).

Wildlife conservation advocacy

GEICO’s partnership with the Association of Zoos and Aquariums (AZA) made the GEICO Gecko the “spokescreature” to help raise awareness and promote the wildlife conservation work done by zoos and aquariums across America. The joint public awareness project will support more than 200 AZA-accredited zoos and aquariums nationwide during a three-year partnership, and will include a live gecko exhibit and advertisements via television, radio and newspaper promoting wildlife conservation featuring the Gecko.

Ted Ward, GEICO's vice president of marketing said, "This partnership is a natural fit for both GEICO and AZA. Not only is the Gecko promoting a good cause, but we can hopefully take advantage of its appeal and reach a big audience."

Currently, there are four GEICO-AZA television spots featuring the Gecko humorously interacting with an otter, giraffe, jellyfish or gorilla. Sir David Attenborough, naturalist and broadcaster of documentaries, makes an appearance in some of the spots. A large component of wildlife conservation is providing education about endangered species, like geckos, and GEICO’s Gecko helps teach others how to protect species from extinction (Geico, 2008).

Green efforts

GEICO is committed to the environment, and like many corporate companies, it is going green, too. The company encourages its associates to be environmentally responsible through recycling programs and energy and water saving initiatives. Consumers can make electronic payment via geico.com and the eBill system, eliminating paper and waste in our offices and conserving energy to protect the environment (Geico, 2008).

Environmental safety and pollution prevention

GEICO is concerned about the environment and requires their auto body repair shops to pass an environmental and safety training program. By working with the Coordinating Committee on Automotive Repair (CCAR) within the United States Environmental Protection Agency Compliance Assistance Center, GEICO repair shops have Safety and Pollution Prevention (SP2) training specific to auto body repair. In 2003, GEICO was the first recipient of CCAR's Environmental and Safety Stewardship award and the first major supporter of the

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training that has been adopted by General Motors, DaimlerChrysler, Toyota and Automotive YES schools.

Marketing strategy

GEICO’s integrated marketing approach has developed a brand that is nationally recognized and well-liked by its policyholders. In 1996, GEICO invested heavily in national advertising with print, radio and television ads and direct mail materials, and the company's growth increased. With the help of the Martin Agency, GEICO ads and promotional materials have continued to flood audiences (Geico, 2008).

In 2006 alone, Geico spent $483 million dollars on advertising (compared to internationally known Coca-Cola Company who spent a mere $326 million), and there all-out approach pushed competitors, like Allstate, State Farm, and Progressive, to do the same (Torgovnick, 2007).

GEICO’s unique marketing technique currently features a high volume of ads that reach various individuals. “While its competitors are running lots of dour ads that exploit our fear of accidents, GEICO stands out from the clutter with its oddball humor and lighthearted tone. The company has managed to inject fun into a product that we resent having to buy and that we associate with miserable moments” (Stevenson, 2005).

Promotional Tactics

Commercials

GEICO has become very successful making something as mundane as car insurance seem fun and interesting through their commercials. Between the GEICO Gecko, the Cavemen, and the GEICO racing spots featuring NASCAR’s Mike Wallace, GEICO reaches its varied audience through creative marketing and advertising to develop great brand awareness.

To view GEICO commercials, go to http://www.geico.com/about/commercials/. Below is a list of the most recent GEICO commercials aired. Protecting products

o Secret Agent: Mike hires a secret agent to protect his RV, motorcycle, PWC and boat.

o Karate: A karate expert? Bill offers an alternative for protecting his neighbor’s motorcycle.

o Female Body Builder: Carl thinks there’s an easier way to protect an ATV than using a female body builder.

o MMA Fighter: A mixed martial arts fighter, according to Lisa, isn’t the easiest way to protect a PWC.

o Boxer: Laura’s not convinced that a professional boxer is the best way to protect a new boat.

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o News Reporter: WGKO exclusive: Bruce Rossmeyer in intense negotiations with a new celebrity partner.

o Best Friends: He’s really smart; he’s really funny. He sells bikes and he saves money.

Celebrity o Mrs. Butterworth: It was a piece of cake, or maybe more like hot pancakes.o Michael Winslow: We hired that guy that does the funny sound effects.o Joan Rivers: Am I smiling? I can’t tell.o The Pips: Take a train to Happy Town. Woo Woo.o Peter Frampton: Do you feel like I do?o Candle: Candle? It’s Campbell- Jason Campbell. I need a new agent.o Locker Room: We lost the breath mint endorsement. I do have some good news

though… Caveman

o Plane Banner: I could stay here forever…I’ll be in the car.o Walkin’: Saving money on motorcycle insurance. So easy…o Match: I can’t believe I’m beating Billie Jean King.o Prague: I first saw this one when I was traveling through Prague.o Glutes: Dancing is good exercise; it works my glutes.o Happy Feet: I came out feet first. They call it breach; I call it happy feet.o Baltimore: Jazz hands, anything with jazz hands. I do the hustle just like you.

Gecko partnership with the Association of Zoos and Aquariums (AZA)o Otter: Are those clams? I love clams.o Subway: Do you see that guy over there? He’s givin’ me the heebie-jeebies.o Library: Hey. You do know I can hear you, right?o Café: Here at this urban Serengeti, it’s man meets reptile.o Water Fountain: An extraordinary creature with a most curious adaptation.

Websites

From 2006 to 2007, GEICO marketing efforts expanded to combine Internet and customer outreach to attract 8 million policyholders. Below are several Web sites developed to supplement GEICO’s successful advertising campaign.

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GEICO: geico.com

GEICO.com is where consumers can get a free insurance quote, learn about GEICO, manage their policy and file a claim. There has been a big push to the Web site over the last few years and it as a hub of information for current and perspective customers.

Caveman’s Crib: cavemanscrib.com

Customers can take an interactive tour the Caveman’s apartment, party with him and his friends in their urban environment, check out their latest dance moves, and try dating a caveman online!

Garage Racing: geicogarage.com

Consumers can become part of the GEICO No. 7 Racing Team and explore the GEICO Garage, investigate the trailer, or look under the hood. This interactive site carries on the feud between NASCAR's Mike Wallace and future champion racer, Loren Wallace.

My Great Rides: mygreatrides.com

MyGreatRides.com is an interactive community website for bikers and features personal profiles, photos, forums, and a widespread member-generated calendar of upcoming biking events, rallies, and rides.

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Motorcycle Bikers for Tykes: bikersfortykes.org

Bikers for Tykes offers fun days for the family, and features the best concerts, motorcycles, and equipment around. Children enjoy rides, games and even meet the GEICO Gecko while supporting numerous children's charities.

GEICO Racing: geicoracing.com

Customers can meet the GEICO Racing team “up close and personal” and check out the sleek GEICO No. 7 car and powerful bikes. GEICO Racing features profiles of NASCAR’s Mike Wallace, NHRA Pro Stock Bike's Karen Stoffer and AMA Superbike's C.R. Gittere.

Direct mail

GEICO is one of today’s most skilled direct marketers. “The differences between their approach to direct mail and to other print media provide an object lesson in the relationship between a medium and its message” (Rosenfield, 2005). Throughout GEICO’s direct mail, ads and freestanding inserts, there is a touch of wit, followed with the benefit and/or offer, such as:

“GEICO Auto Insurance. Where ‘penny pincher’ is a compliment.” “Irritating other car insurance companies since 1936.” “GEICO Auto Insurance. Preferred by 9 out of 10 tightwads.”

The copy is also conversational, making their traditional-style letter easy to read; however, their depersonalized addressing to “SENSIBLE DRIVER AT” followed by the address must be criticized. In an information age, the company would do well to develop a better database of consumers and perspectives (Rosenfield, 2005).

Magazine

GEICO Direct Magazine is an in-hand and online magazine that contains interesting stories and articles about safety, travel, and other GEICO products and services.

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Outdoor Jammin’ Family Photo Diaries Offshore Sailing Schools Gourmet Retreats

Newsletter

GEICO distributes GEICO Connection—a quarterly e-mail newsletter— that is designed to help customers get in touch with the company through helpful articles.

Sponsorships

Virtualo Most recently, GEICO integrated advertising into the Nintendo Wii “Big Beach

Sports” game that allows players to compete against each other in a variety of outdoor sports. GEICO ads appear in the form of banners positioned around beach areas and is seen at the start of the event from a simulated aerial camera (Hampp, 2008).

NASCARo GEICO re-partnered with NASCAR driver Mike Wallace, who pilots the no. 7

GEICO Chevrolet. Ted Ward, vice president of marketing for GEICO said, “Working with Mike again will be terrific and put our brand in front of the most passionate fans in sport. Seventy-five million NASCAR fans will get to know GEICO even better and get more information about our products, services and our commitment to safety."

Television networks

ESPNo A deal between GEICO and ESPN "casts the cavemen as fantasy-football

salesmen, as well as stars of a series of vignettes promoting" the net's "SportsCenter" program.

o Horizon Media CEO Bill Koenigsberg and Geico's media agency said, "ESPN is basically using an advertiser's icon to drive viewers to its shows. The cavemen "will appear on ESPN's television, print, digital and radio channels, and will be

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doing their usual, inferiority-complex-driven shtick in their appearances for ESPN" (SportsBusiness, 2008).

ABC o “Cavemen,” an ABC network sitcom, aired for a few months in late fall

2007(Geico, 2008).o Joe Lawson, the writer behind the cavemen commercials and a Martin

Agency employee, developed the cavemen pilot and decided to pursue a television show. GEICO approved and hired entertainment services agency Management 360 to pitch the idea to networks.

o In "Cavemen," ABC executives saw a funny idea with a built-in marketing hook (Geico, 2008).

Photos from ABC sitcom “Cavemen”

Merchandise

Caveman Bobblehead Gecko Bobblehead Steering Wheel Cover Caveman T-shirt

Gecko Neck Pillow Geico Chip Clip Gecko Umbrella Coaster Set

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GEICO offers a wide variety of products featuring the Gecko and Caveman available to associates and customers. Merchandise includes products in apparel, leisure, sports, home, safety and travel. Below are just a few examples (Geico, 2008).

Award-winning marketing and service

As a result of these tactics, GEICO's assets have climbed to $21.9 billion, policyholders have nearly doubled and the company has received various awards, including the following:

2008- The Caveman was voted America's favorite advertising icon of the year and joined the GEICO Gecko on the Advertising Week Walk of Fame.

2008 Brand Keys Customer Loyalty Engagement Index o Received top honors for its ability to create loyal customers.

2007 Web Marketing Association's WebAwards (recognizes best design, copy writing, innovation, content, interactivity, navigation and use of technology on Web sites within 96 industries.)

o geico.com - Insurance Standard of Excellenceo migeico.com - Insurance Standard of Excellenceo mygreatrides.com - Online Community Standard of Excellence

2005 Webby Award for the Best Insurance Site 2007 Forrester Survey

o Rated superior by consumers for its customer advocacy. Kanbay Research Institute gave high marks for functionality with rate quotes typically

processed in 15 minutes (Geico, 2008).

SWOT defined

Strengths Trusted, well-known company for more than 70 years. Offers competitive, affordable auto insurance rates, as well as other insurance. Easy-to use Web site, and fast customer service. Primarily does business via phone or Internet. Financially stable and policyholder growth continues to expand. Two recognizable advertising icons have become part of American pop culture. Marketing campaign uses humor to attract customers.

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Broad target audience. Partnership with other entities-television networks, wildlife associations, etc.

Weaknesses Little to no face-to-face interaction with personal insurance agents like competitors. Recent overload of phone lines irritates customers trying to speak with a representative. Humor in advertising causes customers to view GEICO as an unserious, unprofessional

company. Current icons annoy perspective consumers with oversaturation of marketing tactics. Community involvement not known or recognized.

Opportunities Increase market share and policy holders with larger advertising budget. Re-position company to include more local offices in addition to 800 telephone number

and Web site. Facilitate additional partnerships to advertise GEICO through icons – the Gecko and the

Caveman. Introduce sales representatives and agents in advertising along with icons to promote

local offices. Identify with with American communities and help their organizations.

Threats Competitors are using witty advertising, like GEICO, to capture consumers. Continued use of icons could deter customers. Web site has worked well, and local offices may flop. Potential to lose money in failed advertising and events. Lose brand awareness switching from icons to representatives.

Marketing problem

GEICO has seen consistent growth and success since its founding, but current competitors are following their primarily Web-based service, and creative and humorous advertising. Although GEICO icons have obtained great brand awareness for the company, the auto insurer needs to again differentiate itself from others. With the development of local offices, GEICO needs to promote personal agents and the benefits of visiting GEICO on location. Furthermore, these representatives need to be recognized as an important part of the company and the consumer’s purchasing power.

At the same time, the GEICO icons have become part of the American culture and other companies are turning to the auto insurer for partnership in their own initiatives. GEICO should seek out more collaboration, and maximize brand awareness, specifically with nationally recognized community organizations.

Marketing objectives

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Develop an integrated marketing communications campaign for GEICO by reaching its audience interested in purchasing insurance at local offices and working with a representative face-to-face to develop their policy. Continued collaboration with community groups will emphasize commitment to policy holders and ease of obtaining insurance. Specifically, GEICO will need to:

Re-position the company from its primary use of 800 telephone number and interactive Web site to recognize the introduction of local offices and the benefits of working with representatives in person.

Introduce sales representatives and personal agents to audience along side icons to retain brand awareness.

Partner with nationally recognized community affiliations to illustrate GEICO’s commitment to community.

Media objectives

The following areas need to be met in order to connect with current customers and perspectives.

Reach 20 percent of GEICO’s target audience at least 10 times a month for 5 months through an integrated marketing campaign.

National media tour stops in cities with local offices to interact face-toface. Increase GEICO Web site hits to 100,000 a day. Reach 10 percent of GEICO’s target audience through public relations impressions. Increase advertising budget to $825 million.

Strategies

Differentiate GEICO from copy-cat competitors and introduce local offices and representatives along-side current icons.

Execute a media campaign designed to communicate the importance and value of auto insurance and community.

Frame campaign around partnering with community organizations and real GEICO agents to invite consumers into offices where they can work with the company in person to develop their plan.

Continue to incorporate icons as spokespeople. Illustrate company’s involvement in communities across the nation. Continue to send consumers to the Web site. Feature the GEICO Corporate Community Citizens (GCCC) to emphasize current

volunteer initiatives.

Tactics National media tour

o The GEICO Great Community Go Round

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Travel throughout the nation visiting local offices in numerous cities, towns, and communities celebrating great work and introducing local offices.

Five months (the duration of the campaign). Spend a day in each location.

Participants Current customers Potential customers Children Community organizations Local GEICO representatives GEICO Corporate Community Citizens (GCCC) Spokespeople

o Gecko Dressed in costume Interacts with children

o Caveman Full make-up. Tries to sway consumers to not buy the “benefits,”

but can’t think of any reasons why. Interacts more with adults (children may be

frightened). Products of insurance in show setting (like a car show)

Cars, motorcycles, boats, ATVs, etc. Invite community members to participate in it.

Children’s games Races. Scavenger hunts. Painting cave art. Fish for the Gecko. Live gecko exhibit. Caveman dance contests.

Community organizations representing work E.g. historical societies (Caveman), wildlife associations (Gecko),

children’s organizations, local groups significant to the area. Fundraising

Money raised goes to organizations participating in event. Food Prizes

GEICO merchandise Trips Cars Boats ATVs

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Spokespeopleo Gecko

Discusses benefits of new local offices. Calls representatives “a close friend.” Enjoys not being the only one to tell people how to save money.

o Caveman Criticizes GEICO for initiative. Tries to find flaws. Expresses further disgust in company.

o Personal Agents Talk directly to consumers. Develop policies on the spot.

o Community-member/GEICO Customer Current customer expresses satisfaction with the introduction of local

offices. Persuades others to check it out.

Advertisingo Television

Gecko introduces personal representative. Explains the benefits of local offices. Call-to-action Web site to find nearest office. Gecko gives tour of office. Continues with humor. Gecko expresses happiness that he does not have to tell people about

saving money alone. It tough work on a reptile. Mention GEICO Great Community Go Round.

o Print GEICO Great Community Go Round dates. Call-to-action Web site. Benefits of local offices. Feature nationally recognized community organizations.

o Radio National stations

Introduces the GEICO Great Community Go Round. Gecko voice. Benefits of local offices. Hear from actual representatives.

Local stations Disc jockey keeps community audience informed of upcoming tour

stop. When, where, why, who and how they can participate. Events happening.

Personal sellingo On-site tour

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Tables and booths allow consumers to develop a policy on the spot. Representatives talk directly with consumers. Explore GEICO.com at computer hubs.

Direct mailo Tour specific

Specified to region, city or community. Include tour dates close by. Full itinerary of activities. Addressed to head of household or policy holder.

o Introducing local offices Letter from nearest office. Benefits of visiting personal agents. Can help develop a policy in person. Personalized and addressed to individuals.

Web siteo Develop GEICO Great Community Go Round Web siteo Features

Track the tour. View photo gallery. Read the Gecko’s journal. Watch video introductions of personal agents. Hear testimonies from community members. Find a GEICO local office near you. Link to local office page. Link back to main GEICO quote site. Learn about GEICO’s community initiatives. Get involved in your community.

Press releaseso Inform regional media of upcoming event in their community.o Offer interviews with the Gecko, Caveman and local representative.o Provide background of the company.o Highlight campaigns initiatives.o Spotlight an agent.

Social networking o Expand My Great Rides Web site

Include cars, boats, ATVs, etc. Opens it up to more audience members. Post tour dates. Invite cyclists and car enthusiasts to attend.

E-mailo Asks policy holders to enter their zip code to find out when the tour will stop near

them.o Explains the local office initiatives.

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o Link to GEICO Great Community Go Round Web site and GEICO.com. Blog

o Written by Gecko.o Caveman interjects with rude comments every few days.o Discusses benefits of local offices.o Tell consumers where his next stop is.

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References

Allstate. (2008). Retrieved October 20, 2008, from http://www.allstate.com/national-sponsorships/our-stand-ads.aspx

Berkshire Hathaway Annual Report. (2007). Retrieved October 19, 2008, from http://www.berkshirehathaway.com/letters/2007ltr.pdf

Geico direct auto insurance. (1999, November 1). Direct Marketing. Retrieved October 19, 2008, from http://www.allbusiness.com/personal-finance/automobiles-automobile-insurance/374392-1.html

Geico. (2008). Retrieved October 17, 2008, from http://www.geico.com/about/pressreleases/092208/

Hampp, A. (2008, July 9). Geico integrated into Wii games. Advertising Age. Retrieved October 14, 2008, from http://www.commercialalert.org/news/archive/2008/07/geico-integrated-into-wii-games

Kerin, R. A., & Peterson, R. A. (2007). Strategic marketing problems (11th ed.). Upper Saddle River, NJ: Pearson Prentice Hall.

Mezera, C. (2008, August 18). Lesson 9: Measurement and Evaluation of IMC. Retrieved October 13, 2008 from eCampus: Assignments & Lessons website: https://ecampus.wvu.edu/webct/urw/lc5116001.tp0/cobaltMainFrame.dowebct. P.I. Reed School of Journalism, WVU.

Nationwide. (2008). Retrieved October 20, 2008, from http://www.nationwide.com/about-us/featured-ads.jsp

Rosenfield, J.R. (2005). Geico: The Dangers of wit, and the re-invention of long copy. Direct Mail Quotes. Retrieved October 20, 2008, from http://www.directmailquotes.com/expertadvice/display.cfm?article=75

SportsBusiness Daily. (2008, August 14). Geico cavemen to appear in "SportsCenter" spots. Retrieved October 17,2008, from www.sportsbusinessdaily.com/article/123293

Stevenson, S. (2005, July 25). The best ad on television: the brilliance of Geico's "tiny house." Slate. http://www.slate.com/id/2123285/

Torgovnick, K. (2007, September 25). All hail the Geico ad execs. Crucial Minutiae. Retrieved October 19, 2008, from http://www.crucialminutiae.com/?p=662