Progressive Pet Insurance


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  • National Rescue week is November 6-12thCharity Work >> PR >> Partner with Humane Society of U.S. for Rescue work, “Bringing Animals in Need Home”. Sponsor Adoption days at Petco/other locations
  • This will be finalized when done.
  • Although RI SD and VT are top market share holders, we will not be testing in these regions. This will be explained later when we discuss testing regions.REFORMAT SLIDE
  • I’m going to share with you today WHY we, A Creative Zoo, suggest that Progressive enter the pet insurance marketplace. Spending on pets has risen drastically and industry figures show that:Almost 39 million households own cats while over 46 million households own dogsAmericans spent over $48 billion on their pets in 2010 with over $13 billion of that number spent on veterinary billsThe pet insurance industry is expected to grow to an over $600 million industry by 2013
  • You may ask why the dramatic increase in spending on pets? Today’s dogs and cats aren’t just keeping an eye out on the house or chasing mice anymore. Dogs and cats are acquiring human like characteristics -- becoming part of the family and therefore treated and even pampered as such.Companies traditionally known for human products are now catering to our furry, four legged friends and creating extensive pet product lines. For example, both Martha Stewart and Rachel Ray, both famous for their home decorations and food recipes are now creating product lines exclusively for pets including clothes, toys, bedding and grooming products and dog food.Also, shopping for your pets has become increasingly easier with various retail outlets now selling pet products. As of May 2010, Pet Smart alone operated more than 1,100 stores nationwide, 165 of which include Pets Hotels and Doggie Day camps. No wonder Martha Stewart is selling her pet products exclusively with the retail giant!
  • As I mentioned earlier pets are acquiring more roles than ever before. Dogs today aren’t just chasing the mailman away, so we asked ourselves, if pet’s roles are changing then the reasons why pet owners keep adding cats and dogs into their families and opening up their homes and spending BILLIONS must be changing. Our research found that today’s pet owners get pets:For companionship or to fill a social gapHaving pets creates a routine owners may not have had, like going outside for a walk or run with their dogs and experiencing new activities they might’ve overlooked beforeIn some instances the pets are the teachers – particularly among children -- teaching them responsibility and how to care for living creatures. & Pets create family bonds – we’ve all seen Marley & Me…..
  •  One bond we anticipate breaking is VPI’s current marketshare of US Pet Insurance Companies in the United States. As you can see, VPI dominates the market claiming over 60%!!! The remaining pet insurance companies, The Hartville Group, PetHealth Inc, Pet Partners, Pets Best, and the remaining few don’t even come close – even if you were to add them all together!
  • Much of VPI’s success is that they’ve been in the marketplace for much longer than any of the other pet insurance companies and therefore they’re KNOWN as The insurance company for pets. With so much marketshare, VPI is able to compete and win against its competitors and offer a lower monthly premium, lower deductible and no co-pay. (Briefly explain rest of chart) We know that with Progressive’s brand recognition and trusted name in the insurance industry, Progressive Pets can effectively and efficiently compete against VPI and grabbing a hold of some of their marketshare.  And now Christina will explain how and why.
  • Campaign Ideas:Marketing strategy should focus on and Affective Emotional Marketing Strategy:- This strategy helps build brand recognition- Animals are part of the family and create emotional bonds and memories
  • Add Populations to the other statesAlthough the north central states like south Dakota, North Dakota, Nebraska, minnesota and Iowa are some states that have the top market shares of progressive, we decided not to chose these states for our testing region due to lack of population. When considering the test region, we also have to consider to polutaion of a state and the average number of dogs that would also reside in the state. We have chosen Ohio, Georgia and Florida to test because they are still have above 10% market share of progressive insurance, but they also have many more households and therefore, more dogs and cats.
  • Need to explain why we are going after these three segments and how they are going to
  • They would love progressives easy rate comparison tools at progressive.comWe chose to highlight a same-sex couple in this target audience profile because we know that Progressive has spent over $230,000 (7 advertisements) on Out magazine advertising since the beginning of January 2011 (times chart from Dan)
  • Since they already have a bundle rate with progressive, they can add pet insurance and save money by having everything under one roof. They also don’t have lots of spare time to research the best rates. Price comparison would save them time and money
  • Since they are money conscious, they would like progressive’s low bundle rates
  • Our main market share competitor is VPI, who are the primary pet insurance providers for Fortune 500 companies. We think we can gain marketshare by implementing the same kind of tactic and either offer Pet insurance for the first time, or convince them to make the switch.Home Depot is a great example of a company that aligns with the interests of current Progressive policy holder interests. We can tell from advertising statistics that Progressive currently targets readers of magazines like Field and Stream, popluar mechanics and ESPN, and believe people of same interests would majoritally be working for Home Depot
  • From what we discussed, we are using a more humorous approach with our promo strategies with Flo so I think we need to update this.NEED TO REFORMAT SLIDE
  • Why this is a good tactic:- Great opportunity to promote the brand to an already captive audience.- Capitalize off of the MSPCAs Extensive promotional efforts and trusted identity- Great PR strategy for Progressive to publicize- These events can be integrated with TV, Internet and Print campaigns around “Bringing Pets Home”
  • 2 days of TV exposure7.5 million viewers- These events can be integrated with TV, Internet and Print campaigns
  • Our online promotional efforts for Progressive Pets is to drive traffic to the website, where customers can search our products, compare rates, receive quotes and be issued insurance policies for their pets quickly and easily.  I’d also like to highlight our Featured Content section of the website which will house all pet industry statistics and rate comparison charts so that our customers can make well informed decisions regarding their pet insurance policy. Additionally, we have a few links that pertain to Flo, our spokeswoman, where customers can interact with Flo and her dog, Pickles – even learn to dress like her and divulge into her hidden talent as a pet whisperer! Flo’s got you and your pets covered! (Show other banner ads that lead to site) Now Angela will go further in depth into our online and social media efforts.
  • Why this is a good tactic:Easy to change to harmonious integrate with other promotional strategiesCustomizable to reflect surfers buying habits and history
  • More Fans than any other advertising icon
  • Show the Pickles’ video on Facebook, and then with a simple call to action, invite the fans watch the rest of the video and learn more about Pickles on the Progressive website.
  • Encourage the fans to put funny photos of their pets. And every week the winner’s photo will be on the front page of our Facebook/ Twitter page.Also the fun factor is expressed in this activity
  • The Twitter hashtag #DressLikeFlo got the buzz going, with links to a special page at with a 10-step guide to dressing like Flo for Halloween. The page even links to a costume on Amazon and has templates for creating Flo’s name tag and “I ❤ Insurance” button.
  • The Twitter hashtag #DressLikeFlo got the buzz going, with links to a special page at with a 10-step guide to dressing like Flo for Halloween. The page even links to a costume on Amazon and has templates for creating Flo’s name tag and “I ❤ Insurance” button.
  • millenials (1977-1994)
  • I didn’t do television and print because we haven’t really discussed them yet.
  • Progressive Pet Insurance

    1. 1. A Marketing Proposal by A Creative Zoo
    2. 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 Statement2
    3. 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 herand her terrier Pip and his hound Oliver persian Zoey havanese Penelope3
    4. 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 Companionship4
    5. 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 Insurance5
    6. 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 time6
    7. 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. 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 Premier8
    9. 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 outsourcing9
    10. 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 201310
    11. 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 products11
    12. 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. 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. 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 Insurance14
    15. 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 customers15
    16. 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 customers16
    17. 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 201317
    18. 18. Progressive Pet Insurance: Goal #2  Launch Progressive Pet Insurance to limited test regions in 201218
    19. 19. Progressive Pet Insurance: Testing Regions19
    20. 20. Progressive Pet Insurance: Pets Per State20
    21. 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 money21
    22. 22. Progressive Pet Insurance: Target Segments Individual Owners Employee Benefits22
    23. 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 mind23
    24. 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. 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. 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. 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. 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 deduction28
    29. 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. 30. Progressive Pet Insurance: Individual Target Elimination All- Employee American Benefits Family30
    31. 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 employer31
    32. 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 Agents32
    34. 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 Pickles34
    35. 35. Progressive Pet Insurance: Promotional Tactics Event Sponsor Television & Print In-Office Online Efforts Information35
    37. 37. Progressive Pet Insurance: Event Sponsors Charity Walks Dog Shows37
    38. 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. 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 tactic39
    40. 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 age40
    41. 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 skills41
    43. 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 home43
    44. 44. Progressive Pet Insurance: In-Office Education Promotional Strategies  Brochures with plan benefits and comparisons  30-days free coverage when referred from your vet44
    46. 46. Progressive Pet Insurance: Online AdvertisingBanner AdsPay Per Click OnlinePurchasingIncentivesSocial Media
    47. 47. Progressive Pet Insurance: Online Advertising Banner Example: • 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 site48
    48. 48. 50
    49. 49. 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 month51
    50. 50. Progressive Pet Insurance: Online Advertising Online Incentives: $50 gift card to with policy purchase • Encourages online enrollment • Entice prospects with buying perks • Extend the incentive to member referrals52
    52. 52. 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 messenger54
    53. 53. Progressive Pet Insurance: Social Media Efforts Facebook Tactic: Pickles’ Video Series • Launch a Pickles Facebook Page • Create interactive opportunities to drive viewers to Progressive website55
    54. 54. 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 page56
    55. 55. Progressive Pet Insurance: Social Media Efforts Twitter: @itsflo • 6,293 followers • Uses hashtag to generate buzz • #DressLikeFlo57
    56. 56. Progressive Pet Insurance: Social Media Efforts ItsFlo Flo from progressive Twitter Tactic Pickles just told me the funniest story. #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 · favorite58
    58. 58. Progressive Pet Insurance: Television Advertising Empty Nesters  Audience between 24 - 64  Affluent viewers  enables viewers to connect their own lives to the past60
    59. 59. 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 home61
    60. 60. 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 home62
    61. 61. Progressive Pet Insurance: Television AdvertisingPickles 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 thestore. 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 hearpickles bark.Voice-Over: Caring for you and your loved ones. Now thats Progressive. Call or click today.
    63. 63. 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, 201165
    64. 64. 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, 201166
    65. 65. 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 201167
    66. 66. Non-Policy Holders
    67. 67. Progressive Policy Holders
    68. 68. 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 strategy70