Look On The Bright Side Plans Book

1

Lookon theBrightSide

ContentsExecutive Summary.......................................................... 2

Situation Analysis and Campaign Objectives................. 3-4

Research Objectives and the State Farm Brand.............. 5-6

Brand Archetypes and Competitive Analysis ................. 7-8

Primary Research and Target Market.............................. 9-10

21 Words and the Circle of Sales ...................................... 11-12

Creative Strategy .............................................................. 13-14

Traditional (Print, TV and Radio)..................................... 15-18

Website and Digital.......................................................... 19-20

Digital and Look on the Bright Side Tour ........................ 21-22

Outdoor and Look on th Bright Side Tour ....................... 23-24

Look on the Bright Side Tour............................................ 25-26

Mobile and College Intern Program ................................ 27-28

Media Strategy and Flightplan ........................................ 29-30

Media Budget.................................................................... 31-32

ContentsAt Northwood Advertising,

we have one common goal...To accomplish any

objective thrown our way.

We recognize a unique element within our agency that promotes

creative and precise solutions to the ever-changing world of advertising.

It is what drives us to complete a task no matter what the cost.

We have faith in who we areand what we do.

More importantly,we have faith in one another.

Each of us enters as individuals,but emerge as part of a unified

and dedicated team.

This led us to become one team,Northwood Advertising.

1

ContentsNorthwood Advertising has developed a fully integrated marketing campaign that will

strengthen State Farm’s brand image among the 18-25 target market. It will change the

way this demographic views the reality of purchasing insurance as a whole, and it will

make State Farm a more relevant brand with their lifestyle. This campaign will reach

millions of young adults by staying true to the State Farm brand with a unique approach

and an optimistic tone. The campaign will be implemented through both traditional and

non-traditional media, as well as grassroot and promotional initiatives. We don’t intend

to interrupt the target market’s lives and sell them a service they don’t care for. We will

simply show them how insurance doesn’t have to be such a frustration or hassle when

you’re insured by State Farm.

Executive Summary

2

Since State Farm’s beginning in 1922, the agent-based insurance

company has remained true to its roots by providing reliable and

quality insurance to millions. The combination of their proven track

record and the expertise of their local agents have placed them as the

leading auto insurance provider. While having a leading 17.6% share

of the auto insurance market, they seem to be out of touch with the

18-25 demographic. This is why we, Northwood Advertising, have

been challenged with the task of creating an advertising campaign

that will bridge this gap and continue to change the target market’s

perception of the State Farm brand.

Situation Analysis

3

4

Campaign Objectives• Transcend State Farm’s brand image in the eyes of the 18-25 target market

• Increase State Farm’s top-of-mind brand awareness among the target market by 25%

• Utilize grassroot and promotional initiatives to create awareness of State Farm

• Drive and retain users to the Look on the Bright Side website

• Achieve 10-15% growth through new young adult auto and renters insurance policies

• Moving away from its current “old school” and “your parents’ insurance company” image

to one that is younger and more relevant to the target market and their lifestyles

Research ObjectivesTo Understand...

• State Farm brand and what they stand for

• How the target market views the insurance industry, and its importance in their lives

• State Farm’s current position in the insurance market in relation to its main competitors

• How to creatively position State Farm as a relevant brand with the target market

and their lifestyles

• The media consumption of the target market and which channels State Farm

can leverage most effectively to reach them

Other Important Things To Know...

• What draws the target market to specific auto insurers and why?

• The target market’s purchase process when they go to buy a new insurance policy

5

6

The State Farm Brand• State Farm is a Caregiver brand.

• They strive to help and protect others.

• By serving others when they are in need, State Farm helps others achieve their goals

and protect what matters most.

• They have the experience and credibility to serve anyone who seeks their trust.

Brand Promise

State Farm understands that nothing is more important than being there.

Like a good neighbor, State Farm is there.

Brand Tone

A Good Neighbor acts inclusively and makes people feel welcomed, valued and accepted.

Brand Personality

Established and experienced yet surprisingly forward-thinking. Sincere, empathetic,

and trustworthy.

7

Brand ArchetypesTo understand State Farm’s current position in the insurance industry,

we had to search for what sets them apart. With the insurance industry

being primarily price driven and fairly equal in terms of the service and

coverage insurers provide, the one thing State Farm can stand on to

distinguish themselves is their brand archetype. Each of State Farm’s

main competitors archetypes are shaped by their core strengths,

business motivations, brand images and personalities. It is behind this

brand archetype that State Farm will separate themselves from the

competition. A combination of staying true to their trustworthy and

reliable image and an optimistic approach will continue to change the

target market’s perception of the State Farm brand.

8

Brand Archetypes Competitive AnalysisBrand Archetype: The CaregiverThe good neighbor that you can always rely on tohelp you out.Tagline: “Like a good Neighbor, State Farm is there.”Market share: 17.6%Yearly Ad Spend: $178 millionType: Agent-basedPride of Company: When the worst of times arise there is nothing more important than being there.

Brand Archetype: The RulerAllstate always has the answers and assures you you’re in good hands.Tagline: “You’re in good hands.”Market share: 11.3%Yearly Ad Spend: $178 millionType: Agent-basedPride of Company: Being the insurance provider who puts all your worries at rest.

Brand Archetype: The CreatorProgressive seeks to provide the customer with flexible coverage options and plans.Tagline: “That’s Progressive.”Market share: 7.5%Yearly Ad Spend: $290 millionType: Direct InsurerPride of Company: Pick your options and payment plan.

Brand Archetype: The JesterGeico always strives to make us laugh with theiromnipresent advertising. Tagline: “15 minutes could save you 15% or more on car insurance.”Market share: 6.9%Yearly Ad Spend: $477 millionType: Direct InsurerPride of Company: Just a little time can save you a chunk of change.

9

Primary ResearchWhile conducting our primary research, we distributed over 500+ surveys, held 10 focus groups, as well as 5 personal interviews with participants from the18-25 target market. The following are the most valuable insights we gathered from the experience.

• 83% reported the first step in the purchase process was seeking guidance from their parents.

• 47% still remain on their parents insurance policies.• 63% pay for 50% or more of their current living expenses.• 60% reported price as the most important factor when shopping for insurance.• 77% however said if the difference in price between providers was relatively

small that both customer service and reliability would be deciding factors.• 91% reported two main reasons for not having renters insurance: 1) Unaware that there “even was such a thing” 2) Don’t have a need for it and feel it’s a waste of money

Top-of-Mind Brand Awareness• Geico 35%• Allstate 23%• Progressive 20%• State Farm 15%• Other 7%

10

The Target MarketMost of the 18-25 have recently graduated high school, are in college, or are new to the work force. They have grown up in a fast-paced, ever changing world; continually balancing school, work, family and friends. Money doesn’t grow on trees and they expect to get what they pay for, especially when it comes to insurance. They live a speak-your-mind philosophy and aren’t afraid to challenge the status quo. Part of the first generation to have grown up with theInternet in a technologically driven world, they are accustomed to having their needs met quickly; meaning they are both high-performance and high-maintenance. Most importantly however is their outlook on life. They are ambitious and optimistic about their futures.

11

...Or Simply In 21 Words

Connected.

Opinionated. Colorful.

Energetic. Innovative. Curious. Unconventional.

Clever. Ambitious. Headstrong. Inspired. Gutsy. Unified. Optimistic. Radical. Engaged.

Empowered. Perceptive. Social.

Educated. Proactive.

The True Blue...is represented by legacy young adults. They are the young adults whose parents are already insured by State Farm and, in turn, have convinced their children to remain with State Farm. In order toretain this important portion of the market, this campaign will aim to maintain their confidence in State Farm as a reliable andquality insurance company that will cover them through the best and worst of times.

The War Zone...is represented by the young adults who already hold policies with a competitor. They most likely belong to another provider because of price, convenience, or perhaps because their parents are insured by them. However, they are open and willing to switch providers if it is to their benefit. Our campaign will aim to change the way they view the State Farm brand, making them a more relevant brand to the lifestyles they live and kind of insurance they seek.

The Golden Future...is represented by the Young Adults who are either uninsured or are currently looking for a new auto insurance provider. They don’t really understand insurance, nor do they care to. They expect to receive quality coverage for a reasonable price. Our campaign will aim to convince the Golden Future that insurance is not something you need to worry about, nor is it something that should ruin your day. We want to optimistically inform them that when you’re insured by State Farm everything will be okay because Like a Good Neighbor, State Farm is there.

12

State Farm

Circle of Sales

Creative Strategy

13

After conducting research and gaining a true understanding of the State Farm brand we discovered there was only one path we could take with our creative message. In order to change the target market’s perception of State Farm while staying true to the brand, we had to distinguish ourselves from the competition with an optimistic approach. We wanted to build upon what State Farm has accomplished to make them the leading auto insurer today. We decided the use of an overly positive tone in our campaign wouldentertain the target market and transcend the perception of State Farm’s brand. Tailored around State Farm’s caregiver brand archetype and good neighbor feel, we came up with the tagline: Look on the Bright Side.The entire campaign will speak to the idea that when you are insured by State Farm you can Look on the Bright Side because State Farm knows there isnothing more important than being there when you need them most.

Lookon theBrightside

14

17

This print ad will aim primarily at the male portion of the target market with placement in GQ and Rolling Stone. It willresonate with anyone who has dealt with car trouble and the hassle of repairs. Those who see the ad will be convinced to Look on the Bright Side beause if you are insured with State Farm they’ve got your back.

Print

18

This print ad follows the same idea as with the previous ad.It will aim at the femaletarget market with placement in Glamour and Cosmopolitan magazines. It will resonate with females because they can relate to the stress of getting ready in a chaotic bathroom when all of a sudden something goesterribly wrong. Despite the sparking outlet, she can Look on the Bright Side because with State Farm renters insurance all the damage will be covered.

15

Television CommercialThis commercial is designed in an animated format similar to early Disney cartoons. It opens with a character walking through a dark and gloomy street where nothing seems to be going well. Trees lining the street are

bare and a dark storm cloud is looming overhead. However, the character is enclosed in a beam of light, whistling the tune of our campaign’s song,“Always Look on the Bright Side of Life.” As he walks and whistles thelandscape around him begins to get brighter and more colorful. State Farm’s logo appears at the end of the commercial when the character winks into the camera with a smile.

Radio SpotsRadio spots will be simple and strictly for campaign branding purposes. A voice will begin the spot with the statement “30 seconds of optimism brought to you by State Farm,” followed by 30 seconds from the song “Always Look on the Bright Side of Life”. These spots will spread awareness of the campaign and the State Farm brand, all the while leaving a catchy, happy-go-lucky tune stuck in the heads of our target market.

Traditional

16

19

Website lookonthebrightside.comResearch showed that the target market finds the current State Farm website too text heavy and difficult to navigate. To solve this problem a Look on the Bright Side campaign website will be launched in May 2010.

The website will only provide information pertaining to auto and renters insurance, making it target market friendly.

Features of the website:• Easy to read information on

auto and renters policies• A link to find the nearest local

State Farm agent• An interactive game• Video footage from the Look

on the Bright Side Tour stops• Quote calculator for potential

new policies• Links to the State Farm Pocket

Agent smartphone app• Facebook Connect• Twitter enabled

20

Digital

Look on the Bright Side ads will be placed on the target market’s most popularwebsites. The ads will feature customers in comical situations demonstrating how State Farm offers many other services aside from auto insurance. The subtle jokebehind each ad will convey that if you are insured with State Farm, you’re covered.

Display Ads

21

Digital

Rich media ads will introduce the Look on the Bright Side game. When viewers hover over the ad with their mouse it will expand, streaming the game directly from our website. The catchy song will be playing in the background and the State Farm logo will always be present. The game will also be available on Apple’s iPhone and iTouch.

Interactive Game As our target market browses the internet we can target them with in-text ads. The same keywords used with search will be purchased, and a scroll over will offer to lead them back to ourcampaign’s website lookonthebrightside.com.

In-text Ads

Search will play a key role in the success of our campaign by positioning the State Farm name with those who search for auto and rentersinsurance. The following AdWords will beincluded: insurance, auto, renters, cheap, Ford, GM, Honda, Toyota, Volkswagen, Nissan, claim, Look on the Bright Side, accident, collision, dam-age, State Farm, Panama City, Allstate, Geico,Progressive, etc.

Search

22

The Look on the Bright Side Tour will be the primary grassroot and promotional

effort of this campaign. A 10-month nation wide tour will begin in June 2010

directly interacting and appealing to the diverse18-25 target market. The tour

will give State Farm a significant presence in the lifestyles of the target market

and increase brand familiarity. The Look on the Bright Side Tour will consist of

various sponsorships and events to be held throughout the year. By the end of

the tour State Farm will have changed their brand perception and increased

their top-of-mind awareness among the target target, which in turn will lead to

an increase in new auto and renters insurance policies.

Look on the Bright Side Tour

Vans Warped Tour ESPN Tailgates Times Square Minority Tour Spring Break PCB

6/10 - 8/10 9/10 - 11/10 12/10 1/11 - 2/11 3/11 - 4/11

Tour Timeline

23

To reach a unique segment of the targetmarket, the Look on the Bright Side Tour will sponsor a stage at the Vans Warped Tour from June 25th - August 19th. This will increase awareness and change the perception of State Farm with over 800,000 young adults bysupporting up and coming local bands.

Vans Warped Tour Sponsorship

Every Saturday during the NCAA college football season the Look on the Bright Side Tour will be following ESPN’s College Gameday crew around the country. Tents will be set up near stadiums to draw in thousands of college students and young adults by offering free giveaways, a punt-pass-kick competition, bean bag toss, and ladder golf. A great way for State Farm to continue becoming a more relevant brand with the young adult target market.

ESPN College Gameday Tailgate

Look on the Bright Side Tour

24

New Year’s EveState Farm will bring in the New Year withthousands of young adults in Times Square.The Look on the Bright Side Tour will have a significant presence in the massive crowd.Free State Farm branded scarves, gloves,hats, and noisemakers will be given out tobenefit those in attendance. All the while,millions of people will be seeing this fromtheir televisions at home.

State Farm will incorporate a Hispanic and Black College Tour that identifies with growing minority populations. The tour will visit the most predominantly Hispanic Colleges in January and Black Colleges in February during Black History Month. Tents will be set up to promote State Farm and their insurance by offering fun events and free branded product giveaways. The goal of this portion of the tour is to reach asegment of the target market that could otherwise be overlooked with the otherLook on the Bright Side Tour events.

Minority College Tour

Look on the Bright Side Tour

25

The outdoor executions in this campaign will all relate to the Look on the Bright Side Tour stop in Panama City Beach, Florida. As springbreakers drive south they will see a series ofbillboards within several miles of arriving.

This series of State Farm branded billboards will creatively poke fun at how long most of the young adults have been driving. Once they reach Panama City Beach there will be a massive billboard spanning the road telling them to Look on the Bright Side because they are finally there. The excitement of finally arriving in Panama paired with this unique execution will surely increase State Farm brand awareness with thousands.

Look on the Bright Side TourOutdoor

26

Every spring thousands ofcollege students head south to this Florida panhandleparty. A significant presence will allow State Farm tobecome a more relevant brand with the targetmarket’s lifestyle and change their perception of State Farm. Concerts, contests, freegiveaways, and several other fun promotions provided by the Look on the Bright Side Tour will surely have the spring breakers remembering State Farm as a huge part of their wild and fun-filled trip toPanama City Beach.

Spring Break in Panama City Beach

Sponsored Beach Stage• State Farm will sponsor a Look

on the Bright Side stage that will be located at the most populated part of the beach

• Daily contests, giveaways and live concerts will draw in thousands of young adults and create invaluable brand exposure

Free Product Giveaways• State Farm branded cooler

backpacks, can koozies and mardi gras beads

• Useful product giveaways will roam the beaches spreading the State Farm name

• Products will leave a lasting impression when spring breakers continue to use them after returning home

Trash and Recycle Bins• Brand trash and recycle bins

will cover the beach and encourage spring breakers to clean up the beach

• This will continue State Farm’s reputation as a responsible brand

Gas Cards• Before driving down to PCB,

current State Farm customers will be able to provide proof of their hotel reservation in exchange for a $25 gas card

MTV Presence in PCB• MTV’s sponsorship and

week-long televised coverage will provide millions of impressions on the MTV cable network

Look on the Bright Side Tour

27

Mobile

As part of our mobile efforts we will continue to promote State Farm’s current app, Pocket Agent. Pocket Agent is compatible with the iPhone, iTouch and other smartphones and has greatpotential, however it needs promotion in order to gain popularity with the target market.In addition to the great features it already has, we will offer the “Always Look on the BrightSide of Life” mp3 ringtone and calendar updates related to the Look on the Bright Side Tour. Pocket Agent will engage the target market and increase campaign awareness.

28

College Intern ProgramThis campaign will implement a State Farm collegeintern program to promote State Farm’s rentersinsurance on college campuses. Four interns will be delegated to each selected college across the country. The primary responsibility of the interns will be to come up with creative and innovative ways to pro-mote State Farm’s renters insurance. After the interns are selected, they will work directly with local State Farm agents to help build State Farm brand awareness through social media and word of mouth.

• Interns will work 20 hours per week for $10 per hour, along with commission incentives.

• If students sign up for renters insurance within 30 days of signing their lease they will receive a 15% discount off their rate.

• The interns will promote State Farm renters insurance at various college events such as orientation, welcome week festivities and career fairs.

29

MediaStrategyThe Look on the Bright Side campaign is focused around the use of diverse, relevant, and cost effective media vehicles to reach the target market. The media plan engages our audience through digital and traditional media, grassroot, promotional events and sponsorships. This campaign focuses on interaction between State Farm and the target market to create a sustainable relationship and change their perception of the State Farm brand. It will make State Farm an insurance company young adults can more easily relate with and, in turn, increase the total number of auto and rentersinsurance policies young adults hold with State Farm.

Geographic FocusOur media strategy will be launched nationally across traditional platforms withspecified locations for designated promotional events. The areas that were chosen for promotional events were based on the highest concentrations of the target market within their population.

30

Flightplan

FLIGHTPLAN May '10 June '10 July'10 Aug. '10 Sept. '10 Oct. '10  Nov. '10 Dec. '10 Jan. '11 Feb. '11 March '11 April '11 May '11

Television 

MTV PrimeFme

MTV AGernoon

Cartoon Network Adult Swim

Print

GQ

Rolling Stone

Cosmopolitan

Glamour 

Radio

Out‐of‐Home

Billboards

Digital  

Search 

Ad Network

In‐text

Mobile

Promo:ons  

College Intern Program

ESPN Gameday Tailgate

Minority College Tour

New Year's Eve in Times Square

Panama City Beach Spring Break

Vans Warp Tour

31

Media BudgetTelevision  Unit Cost Freq. CPM Impressions Cost

Prime Time

MTV $625,000 20 $484.35 25,824,000 $12,500,000

Late Night

Adult Swim $250,000 10 $313.61 8,769,000 $2,500,000

MTV $250,000 9 $334.00 7,485,000 $2,250,000

Print Unit Cost Freq. CPM  CirculaIon Cost

GQ $139,371 4 $49.73 700,565 $557,484

Rolling Stone $174,065 4 $29.47 1,476,399 $696,260

Cosmopolitan $222,400 4 $10.84 5,128,000 $889,600

Glamour  $194,476 4 $15.50 3,136,000 $777,904

Radio Unit Cost Freq. CPM Reach Cost

Top 200 Markets $250 80 $8.92 5,600,000 $4,000,000

Out‐of‐Home Unit Cost Freq. Cost

Billboards $1,815 8 $14,520

Billboard CreaIon $50,000 2 $50,000

Welcome Billboard $5,000 2 $10,000

Mobile  Unit Cost Freq. Cost

iphone/itouch Game $4,167 12 $50,000

Media Budget

32

!"#$#%#&'

Labor & 

Produc,on

Event 

Materials

Expected 

Impressions Total

Internship Program $480,000 $25,000 1,300,000 $505,000

Warp Tour  $238,759 $2,353,400 800,000 $2,592,159

ESPN Tailgate $65,116 $810,400 960,000 $875,516

Spring Break $325,582 $2,584,340 800,000 $2,909,922

New Years $5,427 $105,000 50,000 $110,427

Minority Tour $65,116 $325,750 120,000 $390,866

Qon,ngency $150,060

Media Spent

% of 

Budget

Television $17,250,000 43%

Print $2,921,248 7%

Radio $4,000,000 10%

OOH $74,520 0.2%

Digital $6,400,000 16%

Mobile $50,000 1.0%

RoCalDes $500,000 1.0%

ProEoDons $7,564,500 19%

FonDngenGC $1,239,732 3.0%

Total $40,000,000 100.0%

Digital Ad Unit Spend CPM Impressions

Search  $1,000,000 $3 6,666,700

Ad Network $1,000,000 $2 500,000,000

In‐text $1,500,000 $4 375,000,000

Facebook Rich Media $250,000 $6 41,666,665

Standard $100,000 $4 25,000,000

Pandora  Standard $100,000 $5 20,000,000

Yahoo Standard $200,000 $7 28,571,428

Rich Media $200,000 $9 22,222,220

ESPN Standard $100,000 $5 20,000,000

Rich Media $100,000 $7 16,666,666

Flickr Standard $100,000 $6 16,666,666

Hulu Sponorship $1,450,000

Site CreaOon   $300,000