like a good
state
farm
is there
neighbor
amber Rushton
ashley Novak
bethany watterson
brittany perez
brittany platts
bryce Allen
bob lebaron
cara gessell
christine...
EXECUTIVE SUMMARY02
HERE’S THE STORY.
Young adults don’t think agents are for them.
Ironically, those who have actually wo...
03Executive summary
You gave us this challenge: “[The] overall goal is to gain State Farm’s fair share
of the Young Adult ...
Auto insurance is a multi-billion dollar industry. The market was projected
to grow 3.7% between 2008 and 2013. While comp...
05Primary research: methodology
* A friendship group differs from a traditional focus group in that all participants were ...
1 Mintel 2009 Case Study, “Market Size and Forecast”
2 BYU Ad Lab Quantitative
3 BYU Ad Lab Qualitative
06
AllstatE
You’re...
07competitive analysis: consumer perceptions
We asked all survey participants to select which
insurance companies’ adverti...
...this is the estimated target consumer base. They are generally
considered “multicultural” with one in three considering...
09TARGET MARKET: the novice adult
This target of Young Adults are at the most transient time in their lives. They are on t...
10 CONSUMER INSIGHTs: insurance
		Most young adults have car insurance
		 because they “have to.”
		 When asked why they h...
11
novice adults don’t see a reason to build a relationship with an agent
Customers initiate contact with agents most ofte...
overall strategy12
The first two phases of our campaign break down the harsh misconceptions of agents,
demonstrating that ...
13brand model
Current Brand Position		 State Farm is like your grandparents–respected and
					 trustworthy. But just beca...
PHASE 1: s.t.a.t.e. farm14
Phase 1 demonstrates that the State Farm agent is up-to-date and on-the-ball. This is
accomplis...
15PHASE 1: s.t.a.t.e. farm
Shot of the outside of the
building.
Across the bottom: “Special Tactical Agent
Training Establ...
16
To encourage more online interaction between
our target and State Farm, we developed a
microsite: http://www.enterthefa...
17
Because State Farm already sponsors NBA
and NCAA basketball, the State Farm
co-sponsorship with Electronic Arts is a
na...
18 phase 2: define the relationship
Tackling the task to transform the misconception of an agent from a salesperson to a
t...
19phase 2: define the relationship
20 phase 2: define the relationship
A series of ADVERTORIALS will catch the attention
of Go-Getters and help solidify the ...
21phase 2: define the relationship
The Multi-Tasking Academics
are found on the road or taking
the bus to school. Bus seat...
22 phase 3: state farm is there
Phase 3 is paramount in making the agent matter to the Novice Adult. After Phase 1 and
Pha...
23phase 3: state farm is there
WWW.STATEFARM.COM
STATE FARM IS THERE.
WWW.STATEFARM.COM
STATE FARM IS THERE.
LIKE THE KNOW...
24
LIKE YOUR FIRST GIRLFRIEND
CHERRY STEM IN A KNOT,
THAT TAUGHT YOU TO TIE A
STATE FARM IS THERE.
www.statefarm.com
Walls...
25
Twitter
The Twitter initiative will play off of the blissful ignorance of Novice Adults and give State Farm a chance to...
26
Radio spots such as this will air in a national radio campaign. Radio easily adapts the creative
concept to promote ren...
27
scene of twenty-something Nate waking up, sits up in bed, yawns loudly, walks into bathrom.
	You are ignorant. You have...
28 media plan
State Farm’s multi-faceted campaign will be
implemented in three distinct phases:
Phase 1 of the campaign wi...
29media plan
31%
26%
15%
13%
7%
5%
3%
Magazine
Television
Non-Traditional
Radio
Outdoor
Internet
Public Transit
media
budg...
30 media plan
Outdoor May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr TOTAL
Los Angeles, CA 300,000
Boulder, CO 300,000
Au...
31media plan
Television May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr Cost per ad TOTAL
Modern Family 3 3 3 30,000 270,0...
32 conclusion
01
02 	
Here’s the deal:
We’ve weighed the challenge. We’ve identified the barriers.
We’ve met your objectiv...
State Farm - AAF 2010 NSAC Competition
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State Farm - AAF 2010 NSAC Competition

  1. 1. like a good state farm is there neighbor
  2. 2. amber Rushton ashley Novak bethany watterson brittany perez brittany platts bryce Allen bob lebaron cara gessell christine ross creighton Herrmann 02 executive summary 04 situation analysis & SWOT 05 research methodology 06 competitive analysis 07 perceptual maps 08 the target market 10 consumer insights 12 overall strategy 13 brand model 14 phase 1 18 phase 2 22 phase 3 28 media plan 32 conclusion contents 01 advisors: kevin kelly mark callister jeff sheets danielle Morgan jacqueline Furniss jayson mckeon jenna lowder jessica gee julie lisonbee katie Goodfellow kelsey carter liz teran mary houghton matt godfrey rebecca anderson sarah richardson stephanie Mullin steve hunt suzanne sanchez taylor Donohoo trevor McKinnon
  3. 3. EXECUTIVE SUMMARY02 HERE’S THE STORY. Young adults don’t think agents are for them. Ironically, those who have actually worked with an agent, would disagree. But the majority of young adults feel more comfortable working online, getting the bare minimum, and checking the box saying they now have insurance. Young adults see car insurance as a legal responsibility and probably wouldn’t have it otherwise. Because of this attitude, young adults know very little about car insurance. Many don’t understand their coverage, what happens if they get in an accident, or what their best options are. The interesting thing is that they don’t care. They are blissfully ignorant and okay with that. When they have a test on Hamlet, but didn’t actually read the play, they go to SparkNotes. When they lose their key and are locked out of their room, they YouTube videos on how to pick a lock. And when they are arguing with a friend about what year the Spanish War was fought, they go straight to Wikipedia. This generation has information at their fingertips and not in their brains. The agent should be their go-to for insurance information, but they are not. Remember why? HERE’S WHY
  4. 4. 03Executive summary You gave us this challenge: “[The] overall goal is to gain State Farm’s fair share of the Young Adult market by changing the perception of State Farm among Young Adults, which will then lead to consideration of the brand and purchase.” We agree. And in that order. But if you think you can change the perceptions of this complex, mobile, multi-tasking, fickle, “seen it, been there” target with a “one size fits all” kind of campaign, you don’t know these Young Adults. It’s going to take a multi-faceted series of messages, launched on specifically targeted phases, on a variety of platforms to break down the harsh misconceptions these Young Adults have about State Farm and its agents. Once perceptions are changing and Young Adults are open to consider how agents can add value, we then introduce a sales-oriented campaign with a sustained message that will make the State Farm agent matter in their insurance policy purchasing process. Young Adults don’t think agents matter. Agents are seen as stodgy, pushy, and out of touch. And the last thing Young Adults want is any kind of commitment. HERE’S THE PLAN. HERE’S HOW
  5. 5. Auto insurance is a multi-billion dollar industry. The market was projected to grow 3.7% between 2008 and 2013. While companies such as GEICO, Progressive, and Allstate have outpaced market growth, State Farm’s growth has been flat.1 Translation: Staying the same while the rest of the market is growing is essentially the same as shrinking, which is why State Farm has seen its market share slip by 7.8% between 2003 and 2007.1 This is a big problem. Since 1922, State Farm has been “a good neighbor” in the insurance industry, and most individuals, regardless of age, recognize the phrase, “Like a good neighbor, State Farm is there.” Despite this, the “neighbor” concept does not resonate with many young consumers. They might respond, “Who is my neighbor and why do I care?” This demographic does not know their neighbor and is not looking for a personal relationship.2 Research has shown that State Farm is typically more appealing to an older demographic who is more established and prefers to do business with an agent face-to-face.3 Young adults prefer to purchase insurance online, however State Farm does not have a strong presence in this area, and consumers are unsure whether they can purchase online.4 In recent years, young adults have turned to Progressive, GEICO, and other insurance companies because of the youthful feel of their advertisements, their seemingly cheaper prices, and their online accessibility.5 Because of this, competitors pose a great threat to State Farm’s market share. STRENGTHS • Largest insurance company in the nation • Strong brand history and recognition • Knowledgable and resourceful agents • Strong history reinforces trustworthy perceptions in younger demographic WEAKNESSES • Harsh misconceptions of insurance agents • “Good neighbor” does not resonate with younger demographic • Weak online presence OPPORTUNITIES • Develop online presence that will relate to the younger consumer • Increase market share by disproving negative perceptions of agents • Position the agent as a solution to the intimidating purchasing process THREATS • State Farm scores low in ad recall with young adults in comparison to competitors • The agent-model is challenged by the online model of competitors • Competitors are viewed by demographic as more inexpensive when that is not necessarily true Situation Analysis & SWOT04 YOUNG ADULTS DON’TFULLY APPRECIATE THE BENEFITS OF HAVING AN AGENTR ATHE R THAN PURCHASING ONLINE. 1 Best Review, Ad Wars. 2008. EBSCO 2 BYU Ad Lab Quantitative 3 Mintel 2009 Case Study, “Perceptions of Insurance Agnets” 4 BYU Ad Lab Qualitative 5 http://www.statefarm.com 2
  6. 6. 05Primary research: methodology * A friendship group differs from a traditional focus group in that all participants were already friends, fostering a more honest and open discussion. They were held in one of the participants’ homes, allowing for a more comfortable and less intimidating setting. NATIONAL SURVEY 47 STATES 1465 respondents (from target market 18 to 25) Majority are full-time students, live with roommates, and/or work part-time IN-depth interviews • 37 interviews with target market (18 to 25) • Participants from various states friendship groups* • 9 different groups of target market (18 to 25) • Participants from various states • Videotaped and logged for in-depth analysis ethnographIES • 3 ethnographic research studies • Study of the target (18 to 25) in their natural environment • Observations of life, interactions, and lifestyles were interspersed with questions • Participants from various states, interactions, and lifestyles • Videotaped and logged for in-depth analysis
  7. 7. 1 Mintel 2009 Case Study, “Market Size and Forecast” 2 BYU Ad Lab Quantitative 3 BYU Ad Lab Qualitative 06 AllstatE You’re in good hands. Allstate is the second leading insurance provider behind State Farm.1 They have a strong market position in property and casualty insurance. Allstate is well known among consumers for their brand tagline “Are you in good hands?” targeting an older, more established demographic. Progressive Helping you save money. Now that’s Progressive. Call or click today. Progressive is widely known for their auto insurance coverage. Progressive is popular among young adults for their online quote and purchasing capabilities, along with their 24-hour service. Recently, Progressive has used the up-beat and perky spokeswoman Flo to target the younger demographic. Geico Fifteen minutes could save you fifteen percent or more on car insurance. While Geico is only the fourth largest auto insurance provider,1 young adults see it as the largest auto insurance provider today.2 Geico has positioned themselves as the lowest cost providers of auto insurance compared to other agencies. Geico also scores very high in ad recall, proving the effectivenes of an off-beat and creative advertising strategy. The target market feels that the gecko, caveman, and other varied spokesmen are better aimed at their demographic.2 Nationwide Nationwide is on your side. Nationwide is one of the largest multi-line insurers, and is the six largest provider of auto insurance.1 Nationwide is not as recognizable for their auto insurance policies but more for their property-casualty insurance and life or retirement savings. Nationwide does not have a strong a brand position among the young adult age demographic because of their more mature advertising tone.3 COMPETITIVE ANALYSIS
  8. 8. 07competitive analysis: consumer perceptions We asked all survey participants to select which insurance companies’ advertisements (of any medium) they recalled seeing and then asked them to describe the ad; 89% of respondents recalled GEICO ads, 78% recalled Allstate ads, 62% recalled Progressive ads, and 59% recalled State Farm ads. GEICO and Progressive are perceived as the preferred insurance companies for young adults. Participants in friendship groups and ethnographies felt that GEICO and Progressive were targeting their age group more than other car insurance companies, such as State Farm, Allstate, and Nationwide. They cited the humorous tone and high dose of creativity of the advertisement campaigns as reasons why they felt this way. This is reflected in ad recall, as the majority of survey participants recalled GEICO and Progressive advertisements. State Farm ranks 4thin ad recall The perceptional map above demonstrates the position of State Farm and it’s leading competitors in the minds of the young consumer. The position of the brand is in relation to the perceived cost and trendiness. In comparison to the competition, the State Farm brand is considered somewhat outdated, and is lumped more closely with the perceived costly brands. The dashed, red box represents our desired position, one that is more in-touch and more accurate. inexpensive expensive outdated in-touch
  9. 9. ...this is the estimated target consumer base. They are generally considered “multicultural” with one in three considering themselves non-Caucasian. The median household income of this group is $30,000 annually.1 These young adults are in a transitional time in their lives. They have begun to move out of their parent’s home and support at least 50% of their own expenses. When looking at the independents current situation, 60% are in college and 56% are working full time.2 They are also the Facebook generation—meaning much of the social interaction is via social media websites and texting. As the target advances into their 20’s, their earning capacity increases and they feel a greater sense of financial responsibility. They begin to track where their money goes and become more price sensitive and base their choices on getting the best value for their buck. The target’s price sensitivity and their familiarity with the Internet in deal shopping, weakens their loyalty and makes them uneasy about committing to one company. The target is more likely to shop for insurance than other population segments,3 which is critical because half of those who “go shopping” for insurance end up switching providers.2 TARGET MARKET: who are they? 50%pay for their own expenses 60%are college students 56%work full-time 50%of those shopping for car insurance end up switching providers 33 million independent American men and women between the ages of 18-25... 08 2 1 Mintel 2008 Case Study “Spending Power of Young Adults” 2 State Farm AAF Case Study 3 Mintel 2009 Case Study “Auto Insurance Purchase Behavior”
  10. 10. 09TARGET MARKET: the novice adult This target of Young Adults are at the most transient time in their lives. They are on the brink of adulthood—moving, growing up, making big decisions, and taking their first few steps in to “the real world.” For this reason, we call this demographic the Novice Adult. Our primary and secondary research has painted a psychographic picture of the Novice Adult, their behavior, and what’s important to them. However, it would be a mistake to think that 33 million young adults feel, think, laugh, or care about the same things. For this reason, we have gone deeper, and we will introduce you to three types of Novice Adults that you should understand. They have had a job since they were 15. Their parents taught them financial responsibility. They moved out right after high school graduation and are used to making decisions on their own. They engage in fun and enjoyable recreational activities, but also have great interest in financial news and advice that will help them manage their money in challenging economic times. The Go-Getters are more likely to be married and usually have more money and possessions than other segments of Novice adults. 1 These Novice Adults have enjoyed the generosity of their parents until the ripe old age of 25 when legally they are kicked off of their parents insurance. Many Neverland Adults still live with their parents or other relatives. Because of this, they have next to zero financial responsibilities and don’t make many financial decisions. Because of their lack of prior buying experience, Neverland Adults will likely embrace help in making important purchases.1 These adults are juggling between school, work, and a social life. They are entrenched in social media and thrive on word of mouth. As a result, Multi-tasking Academics rely heavily on their social networks for advice on making purchase decisions. They are very integrated into social media. Many have had few financial responsibilities of their own, but have enjoyed the help their parents have provided while in college. They are now graduating and it’s time for them to make their own way in the world. 1 Shared perceptions, opinions, and core desires in relation to State Farm and the agent. The multi-tasking academic The Go-Getters The neverland adult 1 Mintel 2008 Case Study “Spending Power of Young Adults”
  11. 11. 10 CONSUMER INSIGHTs: insurance Most young adults have car insurance because they “have to.” When asked why they have car insurance, the majority of respondents stated that it’s because the law requires them to have it. However, a large majority also stated that they have it “just in case something happens.” Almost all respondents (96%) felt it was important or very important to have car insurance. Although they are most inclined to have car insurance because of legal responsibility, they recognize that having insurance is necessary and important.1 “THERE ARE A LOT OF THINGS I DON’T KNOW ABOUT, BUT I DON’T LOSE SLEEP OVER IT” One objective of our primary research was to understand how much the target knew about insurance. We discovered they don’t know much. When respondents were asked to rate their knowledge of car insurance on a scale from 1 to 7 (1 being “clueless”, and 7 as “expert”) the average knowledge of respondents was 3.8, which was below “average amount of knowledge.” Those that rated their knowledge anywhere above “average” were asked a second ‘pop quiz’ question about car insurance. Only 10% of that group could answer the question.1 Now that you understand the complexity of Novice Adults, we’d like to share our crucial findings that revealed the consumer’s most interesting insights on the topics of insurance and agents. major life milestones prompt insurance purchase For this age group, the first insurance purchase is usually accompanied by a major life milestone. Examples of such for these adults are: getting their own car (45%), marriage (37%), and getting a full-time job (16%). Those without car insurance predicted that they will get their own policy in the same, or similar, situations. The highest anticipated milestones for purchase were: marriage (51%), graduating college (36%), or buy their own car (30%).1 9 out of 10 young adults have average or below average knowledge about car insurance. 1 BYU Ad Lab Quantitative 45%bought a car 37%got married 51%getting married 36%graduating college actual milestones anticipates milestones 86%of young adults live in blissful ignorance 1 Most young adults have car insurance because they “have to.” When asked why they have car insurance, the majority of respondents stated that it’s because the law requires them to have it. However, a large majority also stated that they have it “just in case something happens.” Almost all respondents (96%) felt it was important or very important to have car insurance. Although they are most inclined to have car insurance because of legal responsibility, they recognize that having insurance is necessary and important.1
  12. 12. 11 novice adults don’t see a reason to build a relationship with an agent Customers initiate contact with agents most often during moments of crisis, such as a car accident, natural disaster, or as they are reaching one the “major life milestones” that we discussed before. These are the few situations in which the Novice Adult believes it is most important to have an agent, but even then, they still don’t seek one out. When asked which aspects of insurance companies were most important in the consideration process, only 44% of respondents felt that a personal agent was important. The negative perceptions of the agent, and the perceived level of commitment involved with having one, discourage the consumer from seeking the help of an agent when they need one the most.1 CONSUMER INSIGHTs: agents “INSURANCE AGENT” doesn’t solicit positive responses from the target market. Agents are seen as out of touch with the Novice Adult. They are perceived as pushy and salesy.1 1 BYU Ad Lab Quantitative When asked what comes to mind when they hear the term “insurance agent”, only 26% of the responses were positive.1 Currently, the majority of people either view agents in a negative light (33%) or associate them with an abstract neutral term (59%). However, young adults who have had no previous experience or interaction with an insurance agent, hold the majority of negative perceptions of insurance agents. The ethnographies and friendship groups showed that many people with previously negative perceptions of an insurance agent later change to a positive perception once they have personal interaction with an agent.1 There is a statistical difference between males and females in their preference of insurance agents. Women prefer setting up their policy with an agent in person
  13. 13. overall strategy12 The first two phases of our campaign break down the harsh misconceptions of agents, demonstrating that the State Farm agent is an up-to-date and trustworthy resource. Once these barriers have been broken down, phase three communicates a sales-oriented message that demonstrates the knowledge and resourcefulness of the State Farm agent. By reaching out to the Novice Adult through multiple phases, avenues, messages and executions, we greatly increase the likelihood of our message being not only heard, but acted upon. BARRIER 1: AGENTS ARE out of touch BARRiER 2: AGENTS ARE PUSHY SALESpeople BARRIER 3: agents are not necessary We now have a basic understanding of the insights that explain the perceptions and behavior of the Novice Adult. These findings are crucial in understanding the development of our campaign strategies. We gave you a lot of information to process, so let’s recap... In order to change misconceptions and gain market share, State Farm needs to break down these barriers. But the Novice Adult cannot be reached so easily. Over exposure to every kind of media has turned this market into passive receivers of all types of messages. They are not shocked. They are not impressed. They are not interested. HOW DO THESE FINDINGS RELATE TO THE PLAN? phase 1: agents are not out of touch phase 2: agents are trustworthy phase 3: agents are a knowledgeable and necessary resource WHAT are we upagainst? the solution: a multi-faceted campaign
  14. 14. 13brand model Current Brand Position State Farm is like your grandparents–respected and trustworthy. But just because you are related to them, doesn’t mean you relate to them. Desired brand position State Farm is like your approachable college professor. They are a top of mind resource for immediate help and pertinent information when it matters most, but when that time of need has passed, they happily keep their distance. Conceptual Target The Novice Adult -- on the brink of adulthood These 18-25 year-olds are approaching or already engaged in some of life’s major decisions: moving out, attending college, working a full-time career, getting married, or making major purchases like a car or home. They are excited by the opportunities that make them feel like they have finally arrived at responsible adulthood, yet they lack experience and as a result feel vulnerable. They have a deep desire to maintain an outward self-reliant appearance. They welcome advice only in times when they need it. This explains why they are becoming increasingly impersonal in their communication and relationships. Convenience now means interaction through platforms they are most familiar with—online and to the point. Core Desire We don’t want to know, we want to know someone who does. Novice Adults are naïve, but they have a network. They are blissfully ignorant about car insurance, but they are perfectly okay with that because they know someone who does. They don’t care to be taught or to understand; they simply want fast and clear help from someone when they need it most, and not to be bothered when they don’t. Role of the Brand Our agents know. The agent is more than just the neighbor you never bother to meet. The agent plays a significant, yet non-intrusive, role in some of the most intimidating decisions that Novice Adults have to make. When faced with high-pressure, nerve-wracking situations, State Farm agents are there with answers. Compelling Truth State Farm agents are connected to you; they have all the knowledge you will ever need when it comes to your car insurance but can process the information most pertinent to you and your situation faster than a computer can. State Farm offers competitive pricing and can protect all of your belongings, not just your car. Selling Idea State Farm agents matter. They know and care, so you don’t have to.
  15. 15. PHASE 1: s.t.a.t.e. farm14 Phase 1 demonstrates that the State Farm agent is up-to-date and on-the-ball. This is accomplished through a humorous, contemporary and humanizing portrayal of the agent through a character named Sarge, the tough-nose drill sergeant. Sarge runs a tight ship at S.T.A.T.E. Farm, the Special Tactical Agent Training Establishment Farm, where agents are put through rigorous army-like paces. But instead of toughening up these “recruits,” Sarge makes sure these agents are sensitized to everything Novice Adults care about—being quick-witted, socially relevant and Internet savvy. The Farm video will start virally and have a strong interactive online presence, then reach out to more traditional media channels on network and cable. A co-sponsorship with Electronic Arts will integrate Sarge into popular gaming titles. Sports and gaming magazines will advertise the co-branded game. State Farm agents will also play along receiving in-house promotional diplomas after graduating from a virtual version of The Farm. In this way Phase I chips away the ice of the deep freeze created by years of ignoring that the Novice Adult could not relate to stodgy out-of-touch State Farm agents. BREAKING DOWN BARRIER 1 RIGHT This pilot commercial introduces the Special Tactical Agent Training Establishment Farm or S.T.A.T.E. Farm and its Head Instructor. With a mockumentary style and exaggerated intensity this video will appeal to our humor-seeking target market.
  16. 16. 15PHASE 1: s.t.a.t.e. farm Shot of the outside of the building. Across the bottom: “Special Tactical Agent Training Establishment aka S.T.A.T.E. Farm 15:12:23” Sarge: “Here at the farm, we make agents.” Sarge: “Describe yourself in three seconds. Go.” Sarge: “We train our recruits to be quick on their feet...” Group of recruits running up stairs. Camera zooms up and falls on instructor peering down through the window. Sarge: “...sensitive in every situation...” Recruit walking with disguised instructor. The recruit opens the door, walks through, but fails to hold it for his ‘date.’ The door closes as the sarge rips off his wig and makes negative notes on his chart. Sarge: “...and socially relevant.” Sarge walks behind a long table of computer stations. Stopping to read the facebook stasuses, he says: “Too vague, too long... TMI.” Sarge: “Not everybody makes it through. But those that do will be able, will be ready, will be there.” Sarge: “Kind of like a good neighbor...” Looks to side, clicks his pen, makes notes on clipboard. S.T.A.T.E. Farm is stamped and tagline is typed across screen as the instructor is heard breathing through his whistle.
  17. 17. 16 To encourage more online interaction between our target and State Farm, we developed a microsite: http://www.enterthefarm.com They can also browse agent profiles and read about their experiences. After they understand more about the agent and State Farm, they are able to redirect to the main page where they can request a free quote. The site explains more about “S.T.A.T.E. Farm” so the consumer can read up on what the training facility and its agents have to offer. PHASE 1: s.t.a.t.e. farm
  18. 18. 17 Because State Farm already sponsors NBA and NCAA basketball, the State Farm co-sponsorship with Electronic Arts is a natural fit. State Farm will team up with EA Sports to sponsor pre-game commentary and a “State Farm play of the game” in sports games for XBOX 360. Four-Way Partnership Because State Farm already partners with NBA and NCAA basketball, a new partnership with State Farm and Electronic Arts is a natural fit. Neverland Adults, Multi-Tasking Academics, and Legacy policy holders will love playing these popular video games. They will begin to think of State Farm as a more trendy insurance company due to this strategic alliance. State Farm will also advertise a special game feature in popular gaming and sports magazines. Gamers will be able to enter a secret code in their games to play as Sarge from The Farm. Sarge will be a force to be reckoned with as he takes on stars like LeBron James and Kobe Bryant. As an in-house promotion, current State Farm agents will each go through a virtual training process at “The Farm.” Upon completion of training, each agent will be given a S.T.A.T.E. Farm diploma, representing their tactical expertise in communicating with the Novice Adult. This will excite current State Farm agents and encourage them to carry the light-hearted tone of the campaign throughout their personal work. PHASE 1: s.t.a.t.e. farm
  19. 19. 18 phase 2: define the relationship Tackling the task to transform the misconception of an agent from a salesperson to a trusted resource is essential. Phase one forms a crack in the Novice Adults’ negative perceptions concerning State Farm agents and Phase two of our campaign shatters the glass. Because Novice Adults desire to be confident and in control, a relationship with insurance agents has to be on their terms—casual, comfortable, and non committal. In order to accomplish this, we offer the target the upper hand. Sure, they think our agents are pushy, now we want to give them access to redefine them. We extend the invitation to keep the ball in their court with their insurance agent, and call the shots. Phase two introduces a creative concept we title “dtr: define the relationship.” Novice Adults say they don’t like insurance agents, or salespersons. As this is the case, we are now allowing them to draw the lines. In essence, we dispel the negative stereotypes and communicate the benefits of an agent in their own language, keeping it relevant and worthy of attention. After the slightly male-skewing messaging platform and viral presence in Phase one is complete, Phase two will take a pervasive traditional approach and skew slightly more female. Infiltrating the media where we find the target spending the majority of their time, we will implement creative use of magazine advertising with a series of interactive sticker ads, an engaging advertorial article about relationships coming from State Farm, and non-traditional public transit and outdoor advertising for the Novice Adult on the go. The agent relationship will be redefined online with user generated additions to UrbanDictionary.com and an addition to the Facebook Relationship Status. BREAKING DOWN BARRIER 2 RIGHT Our not-so-traditional print ads kick-start our campaign. The right side of the print requests the target to utilize the interactive stickers on the left. Each sticker, when peeled, reveals the State Farm agents’ promise to hold their end of the bargain. The intentional use of stickers provides opportunity for the target to spread the brand, by applying extra stickers onto friends.
  20. 20. 19phase 2: define the relationship
  21. 21. 20 phase 2: define the relationship A series of ADVERTORIALS will catch the attention of Go-Getters and help solidify the benefits of defining a relationship with a State Farm agent.
  22. 22. 21phase 2: define the relationship The Multi-Tasking Academics are found on the road or taking the bus to school. Bus seat advertisements playfully ask passengers to pick a personalized definition for their ideal insurance agent, and take a seat in the corresponding spot. URBAN DICTIONARY The campaign generates new perceptions of a State Farm insurance agent. Now State Farm would like to extend the challenge of redefining an agent to the target market—quite literally. Contestants may submit their personal definition of a insurance agent on www.urbandictionary.com. Entries will be monitored and the top three selected winners with the best definitions will recieve free auto/ renter insurance for an entire year. FACEBOOK STATUS The ultimate DTR is found on Facebook. State Farm will create an entirely new Facebook “Relationship Status” category titled “Hanging” (with). Through Facebook ads and relationship status requests, young adults will learn that they must accept the newest relationship request and prove that they are “Experimenting with State Farm,” for a chance to win a month free of State Farm auto/renter insurance.
  23. 23. 22 phase 3: state farm is there Phase 3 is paramount in making the agent matter to the Novice Adult. After Phase 1 and Phase 2 break down misconceptions, Phase 3 is the pay off, introducing a new type of State Farm agent, one they can believe in. Once the target sees the “humanized” face of the brand, it’s time to help them believe they can turn to a State Farm agent for all of their insurance needs. Phase 3 contemporizes the agent by utilizing relevant situations and offbeat humor to show Novice Adults the State Farm agent is there for them. Additionally, we have contemporized the State Farm slogan. Instead of associating the agent as a “good neighbor”—a phrase which has little relevance to this target—Phase 3 gives “Like a good neighbor, State Farm is there” new meaning by encapsulating characters and situations that resonate with Novice Adults. Playful print executions and wallscapes redefine “Good neighbor” in terms Novice Adults can understand. Viral videos, TV commercials and radio spots demonstrate how the agent fits seamlessly into the lives of the target audience, giving pertinent advice and compassionate service with a good dose of humor. Through a clever use of Twitter, Novice Adults find themselves engaged with the brand. Phase 3 is versatile and sustainable. It is here we introduce sales oriented messages for auto insurance, highlight renters insurance, reinforce legacy policy holders, and ensure retention of loyalists. BREAKING DOWN BARRIER 3
  24. 24. 23phase 3: state farm is there WWW.STATEFARM.COM STATE FARM IS THERE. WWW.STATEFARM.COM STATE FARM IS THERE. LIKE THE KNOW-IT-ALL IN BIO1010 WHO YOU DIDN’T APPRECIATE UNTIL HE WAS YOUR LAB PARTNER, WWW.STATEFARM.COM STATE FARM IS THERE. LIKE YOUR BIG BROTHER THAT TAUGHT YOU TO OPEN THE STUBBORN PICKLE JAR WITH A RUBBERBAND, , These magazine ads contemporize the State Farm agent by translating “good neighbor” into Novice Adult terminology. Through the use of simile that resonates with the target market, boyfriends, roommates, and trendsetters represent the good will and superior knowledge of State Farm agents.
  25. 25. 24 LIKE YOUR FIRST GIRLFRIEND CHERRY STEM IN A KNOT, THAT TAUGHT YOU TO TIE A STATE FARM IS THERE. www.statefarm.com Wallscapes will be featured on natural backgrounds not usually associated with advertising messages, such as brick walls on street corners, wooden fences, bridges, overhangs, subway stations and other high-traffic pedestrian areas and local hot spots. Wallscapes will be an especially powerful tool for promoting renters insurance in urban areas. PARTNERSHIP State Farm will partner with Six Flags amusement parks by advertising in front of the seats and on the safety bars of various rides. Text printed on roller coaster safety bars will draw an emotional response from Novice Adults when they read, “Like the safety bar that held you the day your world turned upside down, State Farm is there.” phase 3: state farm is there
  26. 26. 25 Twitter The Twitter initiative will play off of the blissful ignorance of Novice Adults and give State Farm a chance to interact with the target market. By using a hash-tag subject grouping (ex: #clueless, #ignorant, or #confused), a Twitter user would be able to ask any question to which they need to know the answer and use a hash-tag such as “#clueless” to get a response. The State Farm Ignorant (SFIgnorant) Twitter feed would then search out #clueless, #confused, or other blissful ignorance-related hash-tags, and respond to each user’s question with an answer. Example: @lizterrain: my eye won’t stop twitching, how can I fix this?? #igorant @SFIgnorant: @lizterrain eye twitching is a sign of potassium deficiency. Eat a banana. @chrisbourne: locked my keys in my car! #imanidiot @SFIgnorant: @chrisbourne it’s your locky day. the police will jimmy the lock for free. This is both a useful and humorous way of connecting State Farm with the internet savvy Novice Adults. Soon, the SFIgnorant twitter feed would be the top of mind place to get an answer to any type of question, serious or not. STATE FARM PARTNERSHIP WITH KAPLAN SCHOLARSHIP State Farm will partner with Kaplan test-prepping service to provide scholarships to Novice Adults for Kaplan online courses and for graduate school review courses. These classes will help prepare Novice Adults for higher-education entrance exams such as the GRE, GMAT, LSAT, MCAT, and DAT. To be eligible for the scholarship, Novice Adults must enter the “State Farm is There” video competition hosted on YouTube. Applicants will be required to submit a video demonstrating how they were “there” for a person in need by acting as a knowledgeable or helpful resource. Scholarships will be awarded based on which videos have the most views and whether they follow the requirement to show acts of providing knowledge or service. This will spread State Farm’s attitude of helpfulness to Novice Adults and allow them to enrich their communities through acts of kindness. By setting aside $3 million for scholarships, Novice Adults will feel State Farm’s genuine commitment to their success. This co-sponsorship is key because it focuses on a portion of the target market interested in furthering their education. The Multi-Tasking Academics and Go-Getters pursuing undergraduate, graduate and professional degrees will have increased earning potential as they enter the workforce and will likely own homes and cars, and in turn purchase home, fire, life and car insurance. The scholarship will have long-lasting benefits of loyalty because Novice Adults will remember that “State Farm was there” to help make their education possible. phase 3: state farm is there
  27. 27. 26 Radio spots such as this will air in a national radio campaign. Radio easily adapts the creative concept to promote renters insurance utilizing humor and familiar music to make the State Farm agent matter. “The Jumper,” a hit song from the 90’s playing at the beginning of the spot, engages the Novice Adult from the get-go. The creative delivery keeps them entertained throughout the commercial. These radio spots confirm to current State Farm policyholders that the brand they chose is contemporary and relevant. :00 Music: “The Jumper” by Third Eye Blind (lyrics: “I wish you would step back from that ledge my friend...everyone’s got to face down the demons”) :03 Man: (singing, badly) “Everyone’s got toothpaste down the demons!” :04 SFX: a crowd boo-ing, and the music cuts out sharply. :08 VO: You are ignorant. Everyone does not have “toothpaste” down the demons. But luckily, your music enthusiast friend provided you with the right words just before your big karaoke debut at O’Leary’s. Later, you return home from your sing along escapades and realize someone jacked all your stuff. :20 Man: “Ah!” :21 VO: But, you can step back from that ledge my friend, (SFX third eye blind song comes back in) because your State Farm agent provided you with renters insurance that covers theft, and your agent understands. :24 SFX: dialing Man: Hello? :25 VO: And like your lyric-savvy friend who cured your Third Eye Blind-ness, State Farm is there. 1 Mintel 2009, Young Adult Leisure Trends RIGHT Research has shown that “creative information delivery or video editing can make a straightforward message seem ‘cool’ and more interesting” 1 to Novice Adults. Short videos like this one will be created and put on Hulu and YouTube. Rapid-fire narration and quick-cut editing give edge and humor to this portrait of a Multi-Tasking Academic coming face-to-face with his blissful ignorance. The State Farm not only understands the not-so-innocent victim, he’s the master of calm and coolness who saves the day with his superior know-how and genuine support. phase 3: state farm is there
  28. 28. 27 scene of twenty-something Nate waking up, sits up in bed, yawns loudly, walks into bathrom. You are ignorant. You have no idea how to get rid of a hickey, and you never cared cause you never needed to. Until that day... cut to Nate looking in the bathroom mirror at the enormous hickey on his neck ...that girl Janice... cut to picture of Janice ...left one the size of a baseball... cut to baseball on Nate’s desk ...on your neck. Enter Jeff... cut to roommate Jeff making grand entrance into the room ...your “experienced” roommate... freeze frame of Jeff, making “bro”ish expression...the words “The Big Sleaze” appear on the screen. ...who knows exactly... cut to close up of Jeff’s hand’s unrolling a “kit” with comb, tweezers, lotion, chapstick, etc. ...what to do. Luckily, Jeff’s stroke... cut to tight shot of Jeff scraping a hair comb against the hickey on Nate’s neck ...of genius is just in time for lunch with Heather... cut to picture of Heather ....your girlfriend. Who is Janice’s... cut back to first picture of Janice ...best friend... zoom out of picture, its a picture of the two of them, Janice’s arm around Heather. ...who never saw... cut to Nate and Heather (later that day) cuddling on the couch. ...evidence of a hickey... camera does quick zoom to Nate’s neck, no hickey visible. ...but later... Nate gets up from the couch ...found one of Janice’s... same picture of Heather and Janice ...trashy acrylic nails... zoom into Janice’s hand around Heather (see her trashy nails) ...in the crater... back to Heather on the couch, leans over where Nate was sitting and finds acrylic nail ...of your butt impression. SFX of loud slapping noise over black screen ...Exit Heather. cut to empty couch, Nate stands nearby, alone. ...As you are recovering... Nate holds ice pack to the side of his face ...you hear what sounds like a baseball... cut back to Nate’s desk–the baseball is gone. ...going through your car windshield. SFX of glass breaking. Camera cuts to shot of Nate’s feet, the ice pack comes crashing to the floor. ...And you wonder if your insurance covers ex-girlfriend wrath... Nate sits back down on the couch, defeated. ...But you’re okay, because your State Farm agent knows you, knows the situation, and knows exactly what to do next... The agent steps into the frame, faces the camera. ...And like an experienced roommate who combed out your problems... The agents slips a small black hair comb into his front shirt pocket, and pats it twice. ...State Farm is there. phase 3: state farm is there
  29. 29. 28 media plan State Farm’s multi-faceted campaign will be implemented in three distinct phases: Phase 1 of the campaign will run from May 2010 until August 2010 and will skew toward male Novice Adults. The phase includes television, magazine, internet and non-traditional initiatives. Phase 2 will run from August 2010 until November 2010 and features a very print intensive media buy catered to a more feminine audience. Phase two has magazine ads, advertorials, sticker tip-ins, outdoor, public transit advertising, and non-traditional media. Phase 3 is the most comprehensive of the three campaigns in both its duration and its media coverage. It utilizes television, radio, magazine, outdoor, internet, and non-traditional media and will last for six months, from November 2010 until May 2011. Media will be purchased throughout the country, with special emphasis put on major U.S. cities and college towns. State Farm will target Novice Adults with messages of both car and renters insurance in urban areas and around college campuses. However, in more suburban areas, marketing efforts will be more geared towards car insurance.
  30. 30. 29media plan 31% 26% 15% 13% 7% 5% 3% Magazine Television Non-Traditional Radio Outdoor Internet Public Transit media budget break down
  31. 31. 30 media plan Outdoor May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr TOTAL Los Angeles, CA 300,000 Boulder, CO 300,000 Austin, TX 300,000 Gainesville, FL 300,000 New York, NY 500,000 Chicago, IL 500,000 San Francisco, CA 500,000 TOTAL 2,700,000 Public Transit May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr Cost per ad TOTAL 50 cities 1,000,000 TOTAL 1,000,000 Internet May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr TOTAL NBC.com 45k 45k 45k 135,000 Fox.com 45k 45k 45k 135,000 MTV.com and affiliates 45k 45k 45k 135,000 Espn.com 45k 45k 45k 135,000 Abc.com 45k 45k 45k 45k 45k 45k 45k 45k 45k 405,000 Hulu.com 45k 45k 45k 45k 45k 45k 45k 45k 45k 405,000 Facebook 45k 45k 45k 45k 45k 45k 270,000 Pandora 15k 15k 15k 15k 15k 15k 90,000 RateMyProfessor 15k 15k 15k 15k 15k 15k 90,000 Playlist 10k 10k 10k 10k 10k 10k 60,000 Fantasy Football 20k 20k 20k 20k 20k 20k 120,000 Viral Campaign 20k 20k 20k 20k 20k 20k 120,000 TOTAL 2,100,000 Non-Traditional May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr TOTAL EntertheFarm.com 250,000 EA Sports Game Promo 1,500,000 Facebook relationship status 200,000 Urbandictionary.com 200,000 Kaplan Scholarship 3,000,000 Six Flags Rollercoaster Bars 1,000,000 TOTAL 6,150,000 TOTAL MEDIA BUDGET 39,993,740 Light Media Placement Heavy Media Placement Phase 1 Phase 2 Phase 3
  32. 32. 31media plan Television May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr Cost per ad TOTAL Modern Family 3 3 3 30,000 270,000 The Colbert Report 4 4 4 139,500 1,674,000 The Simpsons 3 2 3 150,200 1,201,600 The Office 2 2 2 2 2 2 2 2 2 191,236 3,442,248 ESPN 2 2 2 2 2 2 30,000 360,000 The Bachelor 2 2 2 2 139,500 1,116,000 Family Guy 2 2 2 214,750 1,288,500 The Grammy's 2 2 300,000 1,200,000 TOTAL 10,552,348 Radio May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr TOTAL National Radio 5,000,000 TOTAL 5,000,000 Magazine May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr Cost per ad TOTAL Full-page ads Gaming Informer 1 1 1 199,050 597,150 ESPN 1 1 1 1 1 1 1 1 1 205,504 1,849,536 Sports Illustrated 1 1 1 1 1 1 1 1 1 280,000 2,520,000 Car and Driver 1 1 1 162,030 486,090 Rolling Stone 1 1 1 174,065 522,195 Cosmopolitan 1 1 1 1 1 1 1 1 1 222,400 2,001,600 Glamour 1 1 1 1 1 1 1 1 1 200,491 1,804,419 GQ 1 1 1 139,371 418,113 Magazine Insert Car and Driver 1 1 1 65,484 196,453 Rolling Stone 1 1 1 69,074 207,221 Cosmopolitan 1 1 1 70,300 210,899 Glamour 1 1 1 98,369 295,108 GQ 1 1 1 72,209 216,626 Magazine Article Glamour 1 1 1 133,661 400,982 Cosmopolitan 1 1 1 148,267 444,800 GQ 1 1 1 106,733 320,200 TOTAL 12,491,392 Phase 1 Phase 2 Phase 3 Multi-Faceted Campaign May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr Cost per ad TOTAL Phase 1 30,000 8,906,678 Phase 2 139,500 7,287,360 Phase 3 150,200 23,799,702 TOTAL 39,993,740 Light Media Placement Heavy Media Placement
  33. 33. 32 conclusion 01 02 Here’s the deal: We’ve weighed the challenge. We’ve identified the barriers. We’ve met your objectives. You asked us to Gain fair share of Young Adult market by: Changing the perception of State Farm (and their agents) among Young Adults. • Phase 1: Humanizing the agent and make them approachable • Phase 2: Let the consumer define the relationship with their agent Lead to consideration of the brand and purchase • Phase 3: Now that the agent matters we can make a sales pitch • We anticipate 8% growth in the first six months in new auto policies, and 20% growth by year-end • We show parallel growth in renter’s policies • Retain Legacy Policyholders • Retain Loyal State Farm Young Adults Through a multi-faceted strategic campaign we’ve made the agent approachable and a trusted resource. Agents are out of touch? Not anymore. Agents are pushy? Not ours. Agents are meaningless? Try resourceful. Pre-Test of the Campaign We know our multi-faceted campaign will work because of extensive pretesting of the campaign concepts with the Novice Adults. Our research showed that: • when they recognize their lack of knowledge they will want an agent, one that they can relate to and believe in • and they will act upon our final campaign invitation to let State Farm be there for them Evaluation TRACKING STUDY We recommend a pre- and post-test research study of awareness and attitudes of State Farm within the Young Adult segment to effectively evaluate the results of the campaign. Further, we recommend a tracking study of all new policies issued to the Young Adult market and evaluate the effect of advertising in their purchase decisions.

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