This marketing proposal summarizes A Creative Zoo's philosophy of promoting pet companionship and loyalty. It then analyzes Progressive Insurance's growth, product offerings, and market leadership. Statistics on the pet industry show growing expenditures and trends of humanization. The proposal recommends Progressive launch its own pet insurance, target current customers and regions for testing in 2012, and capitalize on being able to design customized bundle packages.

1. A Marketing Proposal by A Creative Zoo

2. Today’s Agenda
 Who is A Creative Zoo and what is our philosophy?
 About Progressive Insurance
 Current Pet Industry Statistics and Trends
 Market Analysis and Target Segments
 Promotional Strategies
 Final Statement
2

3. A Creative Zoo Animals
Christina Dejan Angela Echandia, Cara Loffredo,
Chung, Pricing Djordjevic, Marketing Market Insight Lead Project
Manager Analyst Manager and her Manager and her
and her terrier Pip and his hound Oliver persian Zoey havanese Penelope
3

4. A Creative Zoo Philosophy
Wau wau, Bow wow, Miau, meow. That’s our language.
At A Creative Zoo, we believe no pet is too drooly, too
2009 Webby Award for fuzzy or too wrinkly for the best love and care possible.
Responsible Marketing
Our team of “animals” strive to improve the lives of all
creatures by telling their stories through innovative
marketing strategies for companies and organizations
2010 Marketing
Magazine’s Loyalty serving animals. Through our work, we launch products
Marketing Award
and ideas built around a philosophy of companionship
and loyalty for man’s best friend and the brand we are
nurturing alike.
A Creative Zoo began quacking in 2006 and is the U.S.’s
2010 Eukanuba World
Challenge Award for first marketing agency catering solely to animals.
Canine Companionship
4

5. Growth Through Innovation
 In 9 years, Progressive grew 17% per year, from $3.4
billion to $14 billion
 Currently, Progressive writes over 10 million policies
 From cars, to Segways, to RVs…
 Auto Insurance  Truck Insurance
 Local Car Insurance  Homeowners Insurance
 Motorcycle Insurance  Renters Insurance
 Boat Insurance  Life Insurance
 RV Insurance  Health Insurance
 Commercial Auto Insurance  Umbrella Insurance
5

6. A Company of Firsts
 First to automatically insure your pet if they are in a collision
 First to offer premium payments in installments
 First to introduce auto insurance rate comparison
 First to introduce Immediate Response® Vehicle to the scene of a
claim or accident
 First major auto insurer in the world to launch a web site
 First to sell auto insurance policies online in real time
6

7. Progressive Market Share
 Rhode Island : 17.2%
 South Dakota : 14.7%
 Vermont : 13.3%
 Wyoming : 12.8%
 Minnesota : 12.5%
 Iowa : 12.3%
 North Dakota : 11.8%
 Georgia : 11.7%
 Maine : 11.5%
 Ohio : 11.5%
 Nebraska : 10.7%
 Florida : 10.6%
 Mississippi : 10.5%
7

8. Pets Best as Progressive Pet Insurance
 “Simply the best pet insurance”
 6 - years in the market and 3% market share
 Core Brand Values: security, protection, prosperity
 Advertising Appeal: FEAR, fear of having to pay high vet
bills or fear of losing your pet
 Pricing Strategy: Competition Based
 Three Plans: Pets Basic, Pets First, Pets Premier
8

9. Breaking Ties with Pets Best
 Progressive’s claim to “lots of options”, pet
Insurance is a natural next step
 Progressive has existing strong brand
 Pets Best has low market share
 Pets Best brand is not recognizable
 Can offer more competitive premiums by
eliminating outsourcing
9

10. The Pet Industry: Spending Statistics
 38.9 million households own cats and 46.3 million households
own dogs
 Americans spent $48.35 billion on their pets in 2010
 $13.1 billion was spent on veterinary bills in 2010, up 9% in 2009
 Pet insurance industry will grow from a $332 million dollar
industry in 2009 to a projected $600 million industry by 2013
10

11. The Pet Industry: Industry Trends
 Going to the Dogs
Companies traditionally known for
human products are now creating
extensive pet product lines
 Martha Stewart Pet Collections
 Rachel Ray Nutrish Premium
Dog Food
 Pet Products Sold Here
Shopping for pet products is
becoming easier than ever with an
increasing variety of retail outlets
now selling pet products
11

12. The Pet Industry: Owner Trends
Companionship. Having a routine. Investing in life.
Greetings, from the Creating a family
Filling a social gap.
WHOLE family. bond.
Pets are the Experiencing new My pet is a
teachers. activities. reflection of me.
12

13. The Pet Industry: Pet Industry Market Share
Market Share of US Pet Insurance
Companies in 2009
80%
60%
40%
20%
0%
VPI Hartville PetHealth Pet Pets Best Remainder
Group Inc. Partners
(AKC)
13

14. The Pet Industry: Competitive Pricing
Pets Best
Pet Partners
(Progressive) VPI PetPlan Purina
(AKC)
Kind of Animals Cats & Dogs Cats & Dogs, Exotic Cats & Dogs Cats & Dogs Cats & Dogs
Plan Name Pets Premier VPI Major Medical Gold Plan Wellness Plus Plan Purina Care Plus
Plan
Monthly
$82.78 $59.11 $60.67 $141.50 $54.04
Premium
$250 per
$50 per Incident $125 Annual $250 Annual
Deductible Incident $100 Annual
20% None 10% 20% 20%
Co-Pay
Accidents &
Yes Yes Yes Yes Yes
Illness
Years in
6 Years 5 Years 8 Years 3 Years
Business 29 Years
Aetna Insurance Co. AGCS Marine Markel Insurance Central States
Underwriter of CT
VPI Insurance,
Insurance Company Company Indemnity Company
Nationwide Insurance
14

15. Progressive Pet Insurance: Goals
 Launch Progressive Pet
Insurance to limited test regions
in 2012
 Increase market share by 5% by
increasing clientele
o Target segments with specific
characteristics
o Capitalize on current progressive
customers
15

16. Progressive Pet Insurance: Goal #1
 Increase market share by 5% by increasing clientele
o Target segments with specific characteristics
o Capitalize on current progressive customers
16

17. Progressive Pet Insurance: Market Share Goal
Progressive Pet Insurance Goal to Increase Market
Share +5% from 3% in 2009 to 8% in 2013
10%
8%
6%
4% Share
2%
0%
2009 2010 2011 2012 2013
17

18. Progressive Pet Insurance: Goal #2
 Launch Progressive Pet Insurance to limited test regions in 2012
18

19. Progressive Pet Insurance: Testing Regions
19

20. Progressive Pet Insurance: Pets Per State
20

21. Progressive Pet Insurance: Product Strategy
 Breaking ties with Pets Best
 Bring in-house to reduce expenses and pass the savings onto
the customer
 The advantage of being able to “build your own product" by
designing bundle packages and saving money
21

22. Progressive Pet Insurance: Target Segments
Individual Owners Employee Benefits
22

23. Progressive Pet Insurance: Individuals
Why do they buy pet insurance?
 Pet parents want the same
treatment options for their pets as
they receive for themselves
 Pet parents view their pets as their
children
 They want to protect their savings
and income
 They are buying peace of mind
23

24. Progressive Pet Insurance: The Starter Family
David and Mark
 David (31) and Mark (29) Live in
Atlanta, Georgia
 Both work full-time in Marketing
research and sales
 David gave Mark their dog, Raulito,
as a 9th anniversary present
 Mark is always on the hunt for the
latest fashion for Raulito and enjoys
taking photos on his iphone of him
My pet is a Creating a family
reflection of me. bond.
Filling a social gap.
24

25. Progressive Pet Insurance: The All-American Family
Victoria and Thomas
 Victoria (35) and Thomas (36) met during
college and live with their growing family
in St. Petersburg, FL
 They have a daughter Ana (6) and son
Will (8) who view Teddy, their dog as their
best friend
 Thomas has an MBA and works as a
financial consultant
 Victoria, is an interior designer and works
for a TV channel.
 The family currently has auto and home
insurance through a bundle rate with
Progressive
Creating a family Greetings, from the
bond. WHOLE family.
Pets are the
teachers.
25

26. Progressive Pet Insurance: The Empty Nesters
Brian and Elizabeth
 Brian (66) and Elizabeth (63) live in
Lancaster, Ohio
 They have a daughter, Victoria (35), who
has a family of her own
 Elizabeth and Brian are both retired
 Elizabeth rescued their dog Lola and cat
Rocky from a local shelter, where she
now volunteers on the weekend
 They enjoy cooking and are avid coupon-
cutters, always on the hunt for the best
deals
Companionship. Having a routine.
Investing in life.
26

27. Progressive Pet Insurance: The Single
Jacob
 Jacob (33) lives in Jacksonville, FL
 He lives alone with his dog, Maggie, all
his family live in Chicago
 He is doing a PHD at MIT.
 Jacob leads an active lifestyle with
Maggie and trains for marathons
 Jacob is an avid reader and brings his
iPad everywhere
Companionship. Filling a social gap.
27

28. Progressive Pet Insurance: Corporate Targets
Who currently offers pet
insurance as a benefit?
 VPI is the leader among Fortune 500
companies
 No fees to the employer to offer pet
insurance
 Employees receive a 5% discount when
enrolled through their company
 Most companies allow employees the
opportunity to pay their premiums via
payroll deduction
28

29. Progressive Pet Insurance: Corporate Targets
 Located in Dublin, Ohio  Located in Cobb County,
 Ranked 19 in the Fortune 500s Georgia
 Employ more than 30,000  Ranked 29 in the Fortune 500s
people worldwide  2,200 retail stores with over
 Do not currently offer pet 321,000 employees
insurance  Currently offer pet insurance to
 Offering pet insurance would their employees
align with Cardinal’s mission of  Aligns with Home Depot’s #1
innovation and diversity value of “taking care of our
people”
29

30. Progressive Pet Insurance: Individual Target Elimination
All-
Employee
American
Benefits
Family
30

31. Progressive Pet Insurance: Progressive Pricing Model
Individual Single Individual Bundle
Corporate Benefit Plan
Policy Policy
Kind of Animals: Cats & Dogs 8% Discount off Premium: 0-50 employees: 5% discount
Add pet insurance to any one
Premium: $58/month 51-100 employees: 6% discount
additional insurance plan
Co-Pay: None 101–300 employees: 7%
10% Discount: off Premium discount
Illness and Accident: yes Add pet insurance to two or
more additional insurance plans 301- 500 employees: 8%
Hereditary: yes
discount
Underwriter: Progressive
501+ employees: 10% discount
Member discounts at national Member discounts at national Member discounts at national
pet supply companies pet supply companies pet supply companies
Automatic coverage for all Automatic coverage for all Automatic coverage for all
vehicle related injury vehicle related injury vehicle related injury
No fee to the employer
31

32. Progressive Pet Insurance: Distribution Methods
 Capitalize off the traditional
Progressive channels that are
already successful
 All methods allow a
customizable “build your own
product” experience
 Call Centers
 Online
 Direct Agents
32

33. PROMOTIONAL STRATEGIES

34. Progressive Pet Insurance: Promotional Strategy
 “Bring Your Pet Home”
campaign
 Continue the humorous
advertising strategy with Flo
 Create activities that allow
people to get involved with
Flo and Pickles
34

35. Progressive Pet Insurance: Promotional Tactics
Event Sponsor Television & Print
In-Office
Online Efforts
Information
35

36. SPONSORSHIP EVENTS

37. Progressive Pet Insurance: Event Sponsors
Charity Walks Dog Shows
37

38. Progressive Pet Insurance: Event Sponsors
MSPCA-Angell Walk
for Animals
 The largest walk to benefit
animals
 Captive audience of
approximately 3,000
 MSPCA-Angell’s wide audience
(circ. 75,000)
38

39. Progressive Pet Insurance: Event Sponsors
TACTICS: MSPCA-Angell
Walk for Animals
 Progressive Rehydration
Stations
 Tents with Progressive
insurance information
 Free promotional items with
Progressive logo (leashes,
Frisbees, tennis balls, cat toys)
 Integration with T.V., internet
and print advertising tactic
39

40. Progressive Pet Insurance: Event Sponsors
Westminster Kennel Club
Dog Show
 Over 7.5 million viewers over 2
days
 America’s second-longest
continuously held sporting
event, behind only the Kentucky
Derby
 Broadcasts on USA Television
Network
 25 to 54 viewing age
40

41. Progressive Pet Insurance: Event Sponsors
TACTIC: Westminster
Kennel Club Dog Show
 Arena advertising
 T.V. commercial during show
 Backstage with Flo as “Best in
Show dog groomer”
 Get Insurance, protect your pet
from Flo’s bad grooming skills
41

42. IN-OFFICE EDUCATION

43. Progressive Pet Insurance: In-Office Education
Vet Office Waiting Rooms
 Over 29,000 vet offices in
the U.S.
 Trusted source of
information
 Ability to present detailed
information that the visitor
can take home
43

44. Progressive Pet Insurance: In-Office Education
Promotional Strategies
 Brochures with plan
benefits and comparisons
 30-days free coverage
when referred from your
vet
44

45. ONLINE PROMOTIONAL EFFORTS

47. Progressive Pet Insurance: Online Advertising
Banner Ads
Pay Per Click
Online
Purchasing
Incentives
Social Media

48. Progressive Pet Insurance: Online Advertising
Banner Example:
Petfinder.com
• Directory of more than
13,000 animal shelters and
adoption organizations
across the U.S., Canada and
Mexico
• Not Just Adoption.
Information on pet care,
health and training
• Ability to customize our
message per site
48

50. 50

51. Progressive Pet Insurance: Online Advertising
Pay Per Click
• Expand our reach easily
• Steal from the competition
• Customize our message
depending on search
• 165,000 searches on “pet
insurance” per month
51

52. Progressive Pet Insurance: Online Advertising
Online Incentives: $50 gift
card to wag.com with policy
purchase
• Encourages online
enrollment
• Entice prospects with buying
perks
• Extend the incentive to
member referrals
52

53. SOCIAL MEDIA EFFORTS

54. Progressive Pet Insurance: Social Media Efforts
Progressive on Facebook
• 3.2 million fans of Flo
• Facebook pages for different
insurance needs
• Flow the progressive girl
• Help Flo
• Progressive motorcycle
• The Progressive messenger
54

55. Progressive Pet Insurance: Social Media Efforts
Facebook Tactic: Pickles’
Video Series
• Launch a Pickles
Facebook Page
• Create interactive
opportunities to drive
viewers to Progressive
website
55

56. Progressive Pet Insurance: Social Media Efforts
Facebook Tactic: Fan of
the Week Contest
• Fans post funny
pictures of their pets
• One winner every week
spotlighted on profile
page
56

57. Progressive Pet Insurance: Social Media Efforts
Twitter: @itsflo
• 6,293 followers
• Uses hashtag to
generate buzz
• #DressLikeFlo
57

58. Progressive Pet Insurance: Social Media Efforts
ItsFlo Flo from progressive Twitter Tactic
Pickles just told me the funniest story.
progressive.com/pickles
#progressivepickles • Tweets around the Flo
5 hours ago · reply · retweet · favorite “pet whisperer” theme
and Pickles
ItsFlo Flo from progressive
Pickles and I just came from a commercial
shoot. tail waggin funny! • Generate buzz about
#progressivepickles
Pickles to drive
2 hours ago · reply · retweet · favorite
followers to the website
ItsFlo Flo from progressive
Pickles and I just ate fried pickles!
#progressivepickles
1 day ago · reply · retweet · favorite
58

59. TELEVISION ADVERTISING

60. Progressive Pet Insurance: Television Advertising
Empty Nesters
 Audience between 24 - 64
 Affluent viewers
 enables viewers to
connect their own lives to
the past
60

61. Progressive Pet Insurance: Television Advertising
Couples
 59% of audience are
adults 25 - 54
 54% shopped for travel
online in the past 6
months
 Most viewers have no
children at home
61

62. Progressive Pet Insurance: Television Advertising
All-American Family
 58% of audience are
adults 18 – 49
 Median Household
income of $80,000+
 62% of viewers own their
own home
62

63. Progressive Pet Insurance: Television Advertising
Pickles Gets a Job
(Flo is at the Progressive store at the counter checking out dogs and cats who are in line to buy pet insurance.)
Flo: And here’s one for you. Have a great day. Oh! And make sure to go get that itch checked out!
Flo: Here you go, one cat policy coming up…
(Pet owner approaches the counter)
Pet Owner: Hey what’s going on, what is my pet doing here?
Flo: Oh! Haven’t you heard!? Progressive now covers your pets too! You can save a bundle when you bundle!
(Flo whispers to the owner) All the pets are talking about it.
(camera shifts to a dog leaving the store with a pet policy box in its mouth while another dog is entering the
store. The entering dog looks back to check out what policy the exiting dog just bought.)
(Pickles runs up to the counter and barks twice at Flo)
Flo: Pickles is it? (Pickles barks once) As a matter of fact we are hiring… (Pickle’s tail starts wagging)
Cut to a white screen where we see a progressive logo appear. Pickles is sitting next to the logo. We hear
pickles bark.
Voice-Over: Caring for you and your loved ones. Now that's Progressive. Call or click today.

64. PRINT ADVERTISING

65. Progressive Pet Insurance: Print Advertising
Empty Nesters
 Reaches over 13.2 million
readers
 Median reader age is 49
 Has advertised in
Newsweek 16 times since
January, 2011
65

66. Progressive Pet Insurance: Print Advertising
The Couple
 1 in 5 adults read People
 69% of readers are
between the ages of 18 -
49
 35% of readers are
millennials (1977-1994)
 Have advertised 10 times
in People since January,
2011
66

67. Progressive Pet Insurance: Print Advertising
All-American Family
 Reaches over 7 million
buyer conscious readers
 60% of readers between
the ages of 18 – 49
 41% of readers are
married with kids
 Have advertised 8 times
in Real Simple since
January 2011
67

68. Non-Policy Holders

69. Progressive Policy Holders

70. Final Statements
 Progressive is an
established, trusted name
in insurance
 The pet industry is a
growing, multi-million dollar
industry
 Capitalize off of loyal
customer base and inform
of the new service through
an integrated marketing
strategy
70