An assessment of Geico's overall marketing performance.

1. Marketing Audit

2. Geico’s History and Brand Presence
● Geico was founded in 1936, initially providing only
to government employees
● In 1974, Geico began insuring the general public
● Overwhelming brand presence with impactful
advertising campaigns
● Success has come mostly from coupling their
massive advertising budget with low prices

3. Target Market
● Ages 25 – 49
● Annual Income of $30,000 – $100,000
● Auto insurance is needed on every vehicle, so Geico is able to
target a large range of users who have a legal need for their
product year after year
● Geico’s USP revolves around offering the cheapest option in the
industry, appealing to young adults and families that are looking
to save
● Various television and print ads effectively meet a wide range of
their audience that varies little in diversity, age, location but
often share a similar level of income
● The target audience finds interest in saving money, so there is
heavy advertising in billboards or television that require no
premium subscription or extra expense

4. Market Snapshot
● Market size: 1,234 businesses, annual revenue of $227.7 B
● Major players
○ State Farm Insurance Companies
○ Progressive Corp.
○ Berkshire Hathaway Inc. (GEICO)
○ Allstate Insurance Company
● Strengths
○ Direct-to-consumer sales allow for low rates and very high
investment in advertising
○ Able to stay in public’s conscious with humorous ad campaigns
● Weaknesses
○ Intense competition between auto insurance companies

5. Creative Brief
● Perceptions
○ Insurance is a commodity
○ Sometimes viewed as an unpleasant expenditure
○ Requires an in-person meeting with an agent
● Target
○ Adults 25-49 with an annual income of $30,000-$100,000
○ People who value lower prices over quality service
○ People who prefer quick and easy online insurance over meeting with an agent
● Objective
○ Convert the younger segment that are independently buying insurance for the first time
○ Convert middle-class families that are price-sensitive
● Benefit
○ Geico will save the customer more money than other insurance companies
○ People will save both time and effort
○ Support
○ Consumers can get a quote in about 15 minutes by entering basic information online
○ Customers can update their policy, make payments, get a quote or claim all from either their
mobile apps or website

6. Positioning Statement
● To young adults or families looking to save money, Geico offers fast,
high quality insurance coverage while being extremely price-sensitive.
● Geico’s marketing campaign centers around:
○ Savings of up to 15% in as little as 15 minutes
○ Auto Insurance is legally required on all vehicles in the U.S.
○ Geico offers young adults and families fast and affordable access
to high quality coverage

7. Positioning Map

8. Ad Assessment
● New Referee Ad
○ https://www.geico.com/more/geico-community/commercials/its-what-you-do/
● Golfing in the Carolina’s (Gecko)
○ https://www.youtube.com/watch?v=ISe7cA1Tt-I

9. Group’s Critique
● Clear Target
○ Geico definitely goes after a specific clientele and stresses that in their advertisements
● Unique USP
○ Geico does a great job of reinforcing their USP, which is being able to save time and money
○ Geico has very creative commercials and advertisements which differentiate it from other insurance companies
○ Its logo and mascot are well known throughout the industry and general public
● Compelling Reason To Buy
○ Geico stresses low cost and high customer service within the industry
○ “If you like saving money…”
● Attention Getting
○ Geico does a great job of grabbing potential customers’ attention through humor and quick, reliable information
● Overall Evaluation
○ A higher than average score on the strategic evaluation makes Geico’s advertisements successful for their
intended purpose

10. Conclusion
● Overall, their marketing strategy is both creative and successful
● One of the most reliable insurance companies on the market
● Geico should focus on its long term relationship with the clients, develop a strong retail network, and
offer lower rates to younger customers to maintain its share of the insurance market
● Strengths
○ Impactful advertisements that resonate
○ High brand recognition
● Weaknesses
○ Competitors use similar tactics, even mocking Geico’s ads
○ Low customer retention due to limited face-to-face interaction
● Opportunities
○ Develop more retail offices
○ Expand its social media influence
○ Offer more retirement products
● Threats
○ Bad publicity due to customer complaints