State Farm - IMC Plan


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State Farm - IMC Plan

  1. 1.   1         IMC Plan By Caterina Simonetto Kiyama Konomi Marcelo Brescia Pacie Tsai Sinan Milasli Yuki Okamoto       U.C. Berkeley Extension ⏐Integrated Marketing Communications ⏐Spring 2010
  2. 2.   2   IMC Plan – State Farm Table of Contents Introduction ........................................................................................................................3   Situation  Analysis..............................................................................................................4   SWOT  analysis ................................................................................................................. 10   Target ................................................................................................................................. 11   Positioning........................................................................................................................ 13   Objective  setting ............................................................................................................. 14   Budgeting .......................................................................................................................... 15   Strategy .............................................................................................................................. 16   Creative  message ............................................................................................................ 17   Mix  of  tools........................................................................................................................ 19   Phases  description......................................................................................................... 20   Media  +  Non-­media  Plans ............................................................................................ 28   Evaluation ......................................................................................................................... 30    
  3. 3.   3   Introduction                         Integrated   Marketing   Communication   (IMC)   is   the   coordination  and  integration  of  all   marketing  communication  tools,  avenues,  and   sources   within   a   company   into   a   seamless   program   that   maximizes   the   impact   on   customers   and   other   stakeholders   at   a   minimal   cost.   This   integration   affects   all   of   a   firm’s   B2B,   marketing   channel,   customer-­‐ focused,   and   internally   directed   communications.       Developing   an   IMC   Plan   requires   from   marketers   to   create   a   consistent   message   by   using   some   of   the   following   tools:   tvmagazinesradiosinterneteventssponsorship socialmediabrandentertainmentfolderssalesai dssalespromotionsnewspaperflickertwitterfac ebookapplicationindoormediamobilemediaor kutyoutubebannerspanfletsbroadcastsblogsgo ogleadwordspackagesmerchandisingoutdoorb illboardguerrilabuzzmarketingpublicrelations databasedirectresponsemarketingcrmpartner shipssupportsjournalsseminarslecturesmesse ngerskypepostersgamesmicroblogslifestreaml ivecastsvirtualworldssocialgamesrebatesetc…   Fortunately,   there   are   some   more   effective   ways  to  put  these  tools  together.  By  the  way,   let’s  present  one  of  them  related  to  State  Farm   auto  insurance  services…    
  4. 4.   4   PART  1:   Situation   Analysis                         ECONOMIC  ENVIRONMENT   Overall⏐Since   it’s   beginning,   US  auto  insurance  industry  has   been   able   to   achieve   a   fair   degree  of  maturity.  In  a  span  of  a  decade  and  a   half,   rate   of   growth   of   US   auto   insurance   industry  has  been  4.5  percent.     As   a   result   of   the   global   economic   crisis,   the   brand   value   of   the   insurance   category   has   declined   by   48   percent   (Source   Millward   Brown⏐BrandZ  ranking)     Generally,   American   companies   fared   better   than   other   competitors   because   their   more   balanced   portfolios   include   a   greater   mix   of   personal  as  well  as  business  products.  Geico’s   greater  exposure  to  the  car  insurance  business   insulated   the   brand   from   the   current   market   conditions  and  helped  it  to  climb  five  places  in   the  insurance  category  ranking.   State   Farm   declined   in   brand   value   by   27   percent.   But   its   performance   was   relatively   strong  compared  with  the  82  percent  decline   in   brand   value   suffered   by   Mitsui   Sumitomo   Insurance,  which  ranks  last.     Problems   of   US   auto   industry   ⏐In   recent   times  some  problems  have  been  impacting  US   auto  insurance  industry,  such  as:  
  5. 5.   5   -­‐   Risk   of   insurance   fraud   due   to   economic   downturn:   US   auto   insurance   authorities   have   put   in   place  low  impact  programs  that  help   deal  with  such  fraudulent  practices.   -­‐High  expenses,  incurred  by  US  auto   insurance   companies.   :   These   expenses   have   resulted   from   over   treating  legitimate  injuries  as  well  as   treating  soft  tissue  injuries,  which  are   non-­‐existent.   Trends  in  US  auto  industry  ⏐Also,  it   is  noticeable  the  impact  of  two  trends   over  the  US  auto  insurance  industry:   -­‐Presence   of   fewer   and   larger   companies,   as   result   of   new   M&A   activities   -­‐   Use   of   rating   tools   by   the   consumers,  as  result  of  an  erosion  of   credit  scores   Opportunities   ⏐By   analyzing   the   economic  environment,  we  found  the   following   opportunities   that   can   be   used  in  the  IMC  Plan:   -­‐   Compete   for   the   low   prices   in   the   auto  insurance  market   -­‐  Develop  and  reinforce  tools  –  such   as   Rate   Quote   –   that   help   the   consumers   to   evaluate   what   is   the   most   inexpensive   auto   insurance   company.           COMPETITIVE  ENVIRONMENT   Overall⏐   The   insurance   industry   is   an   extremely   competitive  marketplace.   64%  of  market  share  is  concentrated   with  the  top  10  insurance  companies     (State   Farm   ranks   #1   -­‐   17.6%   /   Source:  A.M.  Best  2006).   State  Farm  is  the  largest  Auto  insurer   of   Young   Adults,   but   share   has   been   eroding   due   to   action   take   by   competitors   like   Geico   and   Progressive.   Today’s   insurance   landscape   is   divided   into   those   companies   that   maintain   an   independent   agent   model   and   direct-­‐to-­‐consumer   insurers:   -­State   Farm’s   agent   model   competitors:   Allstate   (#2),   Nationwide  and  Farmers   -­State   Farm’s   direct   insurer   model:   Geico   (#3)   and   Progressive   (both   have   been   positively   perceived   by   Young   Adults   and   making   strong   inroads  with  the  target)   Communication   analysis⏐In   a   way   to   build/maintain   awareness   and   recognition,   State   Farm,   Geico,   Progressive   and   Allstate   are   the   top   advertisers   when   talking   about   insurance   (TNS   Media   Intelligence   -­‐   2007).   Rank   Company   Ad  $   (millions)   1   Geico   539   2   Progressive   290   3   Allstate   258   4   State  Farm   190    
  6. 6.   6   Most   part   of   the   investment   is   concentrated   in   TV   commercials   (75%-­‐80%),   followed   by   radio   and   internet   (TNS   Media   Intelligence   -­‐   2007).  Geico  is  often  perceived  as  the   biggest  payer  due  to  their  high  media   spend.  While  State  Farm,  Allstate  and   Progressive   spend   at   somewhat   comparable   levels,   Geico   has   been   investing   significantly   more   in   advertising.   It’s   also   noticeable   that   all   of   these   competitors   make   investment   in   the   Spanish   language,   as   a   result   of   the   growing   numbers   of   immigrants   in   the  US  market.   Following   we   present   a   briefly   description   of   the   current   communications   tools   used   by   the   most   important   advertisers   insurance  companies:   State   Farm   builds   its   leadership   position   by   communicating   how   it   helped   people   manage   the  risks  of  everyday  life  and  recover   from  the  unexpected  (slogan  is  “Like   a   good   neighbor,   State   Farm   is   there”).   As   we   are   going   to   describe   later,   the   positioning   “Now   What”   contributes   a   lot   to   change   the   perception  of  an  old-­‐fashionable  and   expensive   brand   towards   the   Young   Adults   target.   Currently,   State   Farm   message   is   focusing   mostly   in   the   price  benefits.     Examples  of  communication  tools:   1)  TV  commercials   2)  Corporate  and  segmented   websites  (e.g,  Thanks  for  Being   There)   3)  Music  to  download   4)   iPhone   application   –   State   Farm   Pocket  Agent   5)  Sponsorship  LeBron  James  Family   Foundation   and   Steve   Harvey   online   Comedy  Show     Geico   has   a   magic   talking   gecko.   Appealing   to   their   sense   of   humor   and   desire   to   avoid   the   actual   topic   of   insurance,   Geico   promises   extreme   rates   and   offer   many  online  tools.   Geico’s  current  campaign’s  signature   is  “Geico.  15  minutes  could  save  you  15   percent  or  more  in  car  insurance”     Examples  of  communication  tools:   1)  TV  commercials   2)  Corporate  and  segmented   webistes  (e.g,  Geico  Teen   Drivers  Channel)   3)  Music  and  ringtones     to  download   4)  iPhone  application  -­‐  GloveBox   Features     5)  Geico  Direct   Magazine      
  7. 7.   7   It’s   main   selling   point   is   that   it   provides   a   comparison  of  prices  and   services   among   different   car   insurance   companies,   so   that   consumers  can  earn  distinct  they  are   getting   the   best   value   for   their   money.   Thus,   Progressive’s   appeals   to   both   its   thriftiness   and   its   preferred   mode   of   interaction   –   online  with  a  “we’ll  do  the  shopping   comparison   for   you   so   you   can   just   sign  and  save”  promise.     Examples  of  communication  tools:   1)  TV  commercials   2)  Corporate  and  segmented   webistes  (e.g,  Teens.Progressive)   3)  Sponsorship   Oprah’s  No  Phone   Zone  Pledge   4)  Event  (competition)  The   Progressive   Automotive   X  Prize     Attempts   to   connect   with   viewer’s   emotional   need   for   protection,   by   showing   car   accidents   and   the   fear   instilled   in   people   afterwards.   They   normally   appeal   to   a   different   car   insurance   market   demographic   and   their   campaign   focus   is   the   safety   (slogan  is  “You’re  in  good  hands”).   Examples  of  communication  tools:   1)  TV  commercials   2)  Corporate  webiste   3)  Sponsorship   of  2010  U.S.   Winter   Olympic  Team   Social   Media   ⏐As   we   are   talking   about   a   target   that   spends   a   lot   of   time   using   social   networking   websites,   we   made   an   special   analysis  of  the  usage  of  this  tools  for   the   auto   insurance   brands.   State   Farm,  Geico,  Progressive  and  Allstate   use   the   following   types   of   social   medias   to   interact   with   their   consumers:   facebook,   twitter   and   youtube.   Just   to   illustrate,   we   bring   a   comparison  between  the  usage  of  the   twitter   for   this   brands   (datas   collected  on  Feb  27,  2010):         Cost   comparison⏐The   competitive   environment  for  insurance  providers   has  become  much  more  aggressive  in   recent   years.   Price   and   affordability   have   become   extremely   important,   all   the   more   so   with   the   current   economic   situation.   The   top   competitors   brands   are   battling   for   market  share,  each  trying  to  deliver  a   best  price  and  discount  message.   As   the   rates   depend   on   a   variety   of   factors  -­‐  driving  record,  the  types  of   vehicles   you   drive,   household   composition,  credit  record,  and  so  on   –   it   is   very   difficult   to   determine   which   is   the   most   inexpensive   auto  
  8. 8.   8   insurance  company.  One  good  way  to   find   out   if   State   Farm,   Geico,   Progressive  or  Allstate  offer  cheaper   car  insurance  rates  is  to  simply  get  a   comparison   quote   from   these   companies.   Because   of   this,   all   of   them  offer  the  quote  rate  tool  in  their   websites.   Opportunities   ⏐By   analyzing   the   competitive   environment,   we   found   the   following   opportunities   that   can   be  used  in  the  IMC  Plan:   -­‐   Create   a   differentiated   communication  strategy,  considering   that   the   most   representative   competitors   of   State   Farm   appeal   to   the  price  attributes,  despite  of  having   different  positioning  each  other.   -­‐   Develop   an   IMC   Plan   more   consistent  and  effective,  mainly  when   we   consider   the   campaign   of   Geico,   which   is   strongly   focused   in   the   Young   Adults   target   and   offer   benefits   with   more   aggregate   value   (e.g,  iPhone  application)     TECHNOLOGICAL  ENVIRONMENT   Overall⏐  The  analysis  of   the   impacts   of   the   technological   facts/trends   in   the   automotive   industry   is   very   important   to   predict   how   the   insurance  market  will  have  to  evolve.   Thus,   some   of   the   most   important   facts/trends  to  be  evaluated  are:     -­‐Vehicle   telematics:   the   integrated   use   of   telecommunications   and   informatics  within  road  vehicles  (e.g,   GPS  navigation  and  integrated  hands-­‐ free  cell  phones)         -­‐Intelligent  highways:  equipped  with   wireless   technology,   fiber   optics,   sensors,  cameras,  GPS  and  robotic  car   have  the  potential  to  decrease  traffic   congestion,   increase   highway   safety   and  reduce  the  environmental  impact   caused  by  traffic  jams     -­‐Eco-­‐Embedded:  serious  eco-­‐results   will  depend  on  making  products  and   processes  more  sustainable  without   consumers  even  noticing  it   Opportunities   ⏐By   analyzing   the   technological  environment,  we  found   the   following   opportunities   that   can   be  used  in  the  IMC  Plan:   -­‐  Evaluate  the  most  usages  telematics   to  reach  directly  the  target   -­‐  Develop  eco-­‐friendly  actions    
  9. 9.   9   REGULAMENTORY  ENVIRONMENT   Overall⏐  There  are  some   legal   regulations   involving   how   insurance   products   can   be   advertised  together,  but  they  will  not   be  factored  into  this  case.     Also,  despite  of  the  law  saying  that  it   is   forbidden   to   drive   without   your   motorized  vehicle  insurance  or  even   drunk,   many   Young   Adults   don’t   respect   that   rules   and   are   punished   in   some   ways,   like:   serious   fine,   impounding   of   their   vehicle   or   even   detention   center   time.   Added   to   this   information,   it   is   important   to   consider   that   drunk   driving   is   the   leading   cause   of   death   for   Young   Adults  in  US.   Trends   ⏐According   to   an   outlook   developed  by  Ernst  &  Young  in  2009,   some   regulatory   trends   take   will   impact   over   the   auto   insurance   market  are:   -­‐   Increasing   number   of   regulations,   which   will   become   more   uniform   if   not  national.   -­‐   Regulatory   price   suppression   /   compression   due   to   political   pressures   Opportunities   ⏐By   analyzing   the   regulamentory   environment,   we   found   the   following   opportunities   that  can  be  used  in  the  IMC  Plan:   -­‐   Support   causes   related   to   car   crashes   involving   Young   Adults,   by   developing   projects   or   campaign   focusing   in   the   conscientization   of   this  target.        
  10. 10.   10   PART  1:   SWOT   analysis     Overall⏐  A  SWOT  Analysis  is  a   natural  extension  of  the   Situation  Analysis  and  involves   study  of  the  opportunities  and   threats  facing  State  Farm   category  and  its  brand  along  with  an   objective  analysis  of  strengths  and   weaknesses  compared  to  competitive  brands.            
  11. 11.   11   PART  2:   Target   Overall⏐   The   main   target   of   this   integrated   marketing   communication  is  called  Young   Adults,  18-­‐25  aged  independent   individuals.   The   population   currently  numbers  approximately  33  million   people.  There  are  over  11  million  households   that   currently   include   a   young   adult,   and   among   those   households,   there   are   3.3   million   as   heads   of   their   own   household,   mainly   are   age   22-­‐23,   the   order   portion   of   this  demographic.   This   group   of   people   pay   50%   or   more   of   their   living   expenses,   therefore   they   are   comparatively   price   sensitive   and   distinguished   from   dependents   by   their   autonomy   on   both   insurance   and   financial   services  product.     For   the   cultural   composition   of   this   section,   according   to   a   report,   this   generation   is   the   most   multicultural   generation,   with   one   in   three  considering  themselves  not  Caucasian.   Those   who   are   in   multicultural   groups   are   more   likely   to   be   more   independent,   indicating   an   important   marketing   opportunity.   Mentioning   the   purchasing   behavior   of   our   target,   due   to   the   price   sensitivity,   they   are   more  likely  to  be  shopping  for  insurance  than   other   segments   of   the   population.   They   respond  to  dissatisfying  experience  and  price   quickly  in  changing  providers.  Because  of  this   attribute,  they  are  bombarded  with  constant   price   and   discount   message   from   different   providers,   which   make   them   even   more   easily   to   switch   insurance   company.   According   to   the   statics,   this   segment   has   higher  rate  32%  of  switching  providers  than   those  whose  parents  pay  (12%).   They   way   they   collect   information   is   also   different   from   traditional   customer.   They   prefer  various  channels,  such  as  online/  call   center   for   price   quotes,   while   for   advisory   issues,  they  prefer  in  person  or  phone  access,   and   for   account   maintenance   and   new   information,   they   prefer   online   service.
  12. 12.   12   Therefore,  the  image  of  State  Farm  in   our   target’s   mind   is   old   fashion   due   to   its   agent   based   model   and   the   stereotype   of   “parent’s   insurance   company,”   so   that   they   are   considered  resistant  target.   This   target   has   just   finished   college   or   started   their   adult   life   and   they   want   to   spread   their   wings   and   sample   life.   They   are   into   entertainment   and   enjoy   outdoor   activities   like   camping,   sports   and   running.   They   are   ready   to   spend   money   on   entertainment   centers,   shows,   good   sound   systems   and   electronic   “necessities”   that   allow   them   to   stay   in   touch   with   the   “fun   world”.  They  like  staying  in  shape  so   they   can   participate   in   the   active   lifestyle  their  youth  necessitates.   Opportunities   ⏐By   analyzing   the   target,   we   found   the   following   opportunities  that  can  be  used  in  the   IMC  Plan:   -­‐  Deliver  a  message  that  is  relevant  to   the  Young  Adults,  since  it  is  difficult   to   engage   this   target   in   discussion   about  spending  money  to  prepare  for   the  unexpected   -­‐   Consider   the   places   where   this   target  spend  most  of  their  times  ,  in  a   way  to  determine  the  Media  Plan  and   other  non-­‐media  actions   -­‐  Develop  a  strategy  also  to  maintain   this  target  as  a  client  of  State  Farm,  as   they   easier   switch   auto   insurance   providers.    
  13. 13.   13   PART  2:   Positioning   Several   years   ago   State   Farm   iniciated  a  Young  Adult  task  force  to   put  together  a  plan  to  try  to  market   share   with   the   target.   The   brand   recognized  that  in  order  to  get  Young  Adults   to  think  differently  about  the  brand,  it  had  to   act   diffrently   towards   them.   In   order   to   get   Young   Adults   to   recognize   that   State   Farm   was   a   brand   for   them,   and   not   an   old   fashioned  one,  the  challenge  was  to  puncture   their   indifference   to   the   insurance   category,   engage   them   with   the   barnd   in   a   way   that   would   cause   them   to   re-­‐evaluate   its   relevancy,  and  finally,  jolt  them  into  action.  In   2006,  a  series  of  unbranded  televisoin,  print,   digital   and   OOH   executions   where   created   that   featured   provocative   situations   and   posed   the   question   “Now   What?”,   providing   just   a   web   address   as   the   answer.   Rather   than   using   the   typical   scenarios   featured   in   most   insurance   advertising,   the   campaign   focused   in   real-­‐life   situations.     By   pairing   these   unfortunate   events   with   the   question   “Now   What?”,   State   Farm   tapped   into   a   key   target   insight   –   Young   Adults   don’t   always   know  what  to  do.   The   success   of   this   positioning   was   evident,   contributing   to   improve   the   perceptions   of   the   target   about     the   brand   relevancy   and   also  increasing  the  number  of  new  Auto  and   Renters  policies  purchased  by  Young  Adults.   While  the  “Now  What?”campaign  acted  as  an   effective  way  to  begin  building  a  bridge  to  the   State  Farm  brand  with  Young  Adults,  the  time   has   come   to   evolve   communications   to   this   target.   The   big   question   now   is:   should   State   Farm   maintain   the   sucessful   “Now   What?”   positioning,  should  State  Farm  change  it  in  a   way   to   extend     this   positioning   or   should   State  Farm  replace  it  totally  for  a  brand  new   different  one?   That’s   what   we   are   going   to   present   in   the   next  pages…    
  14. 14.   14   PART  2:   Objective   setting   The  main  aim  of  this  IMC  plan  is  to   achieve   the   growth   trough   new   Young  Adult  Auto  policies.   State  Farm  is  currently  under-­‐penetrated  this   market,   but   long-­‐term   growth   requires   getting   closer   with   this   target   in   order   to   increase  sales  and  be  more  competitive.   Other   competitors   as   Geico   and   Progressive   are   a   significant   competitive   treat   because   they  have  already  reached  this  target.   State   Farms   considers   the   Young   Adult   an   opportunity   as   Independent   Young   Adults   aged   18-­‐25,   different   from   the   Dependent   ones,  because  of  their  autonomy  and  decision   making   on   both   insurance   and   financial   service  products.   State   Farms   Auto   insurance   is   the   strongest   product   that   can   build   a   relationship   with   Young  Adults,  and  the  brand  can  improve  its   position   by   showing   how   State   Farm   Auto   insurance  matches  the  needs  of  this  target.     State  Farmers  is  #1  in  Renters  insurance  and   is   successful   in   gaining   new   Young   Adult   Renters  customers  from  those  who  apply  for   a  policy.   According   to   the   Insurance   Information   Institute,   there   is   a   big   opportunity   for   growing  in  this  target.   State   Farm   provides   a   number   of   other   insurance  and  financial  service  products  that   can   satisfy   this   target.   While   Auto   and   Renters   insurance   represent   the   biggest   growth  potential  for  the  Young  Adult  target,   supporting  other  lines  can  help  to  reach  the   target.
  15. 15.   15   PART  2:   Budgeting   Overall⏐  As  marketers  that  are   trying  to  reach  out  to  the  young   adult  market,  we  are  given  a  $  40   million  budget.  We  are  free  to  use   this  budget  however  we  like  to   use,  which  in  our  case  is  going  to  be  used   only  in  the  “P”  of  “Promotion”.   Later,  we  are  going  to  show  exactly  which   percentage  we  are  going  to  spend  per  tools  of   communication  used  in  the  IM  Plan.   We  will  have  one  year  to  develop  this   campaign,  starting  on  May,  2010  and   finishing  on  May,  2011.  
  16. 16.   16   PART  3:   Strategy   Considering   all   the   opportunities   identified   above,  the  Brand  Tone  of  State   Farm,   the   main   objective   of   the  campaign  and  the  $40  million  budge,  we   recommend  the  following  strategy:   -­‐   Added   to   the   low   price   rates,   deliver   benefits   to   the   State   Farm’s   Young   Adult’s   target,  in  a  way  to  make  them  feel  exclusive   and   interested   in   taking   part   of   these   advantages   -­‐  Extend  the  former  positioning  based  in  the   “Now   What?”   successful   campaign,   focusing   in   the   benefits   that   will   be   delivered   to   the   target   -­‐   Develop   a   message   and   actions   that   are   relevant  and  impact  direct  in  the  reality  of   the  Young  Adults   -­‐  In  most  of  the  cases,  select  in  the  IMC  Plan   medias   and   vehicles   that   are   more   active   with   the   target.   In   other   words,   instead   of   waiting   for   the   target   to   get   reached   by   the   media,   we   are   going   to   choose   medias   that   belong  to  the  reality  of  the  target  and  in  some   cases  request  for  their  engagement   -­‐   Focus   the   strategy   in   two   main   groups   of   Young   Adults:   (1)   New   consumers   (2)   Current  State  Farm’s  consumers  
  17. 17.   17   PART  3:   Creative   message   Now   it   is   time   to   implement   the   strategy   suggested   above.   As   we   said,   we   are   going   to   extend   the   positioning   based   in   the   “Now   What”   successful   campaign,   by   focusing  our  communication  on  the  benefits   that   State   Farm   will   deliver   to   its   target.   In   other  words,  the  campaign  will  talk  about  all   the  new  benefits  that  will  be  offered  by  State   Farm.   We   consider   this   an   extension   of   the   “Now  What”  campaign,  because:   -­“Now   What?”:   provocative   questions   for   Young  Adults,  asking  them  what  they  would   do  if  they  are  facing  unfortunate  events  that   involve  their  autos.   -­New  message:  After  knowing  or  trying  State   Farm’s  auto  insurance  service  to  find  out  how   to   deal   with   the   situations   exposed   in   the   “Now   What”   campaign,   it   is   time   to   realize   that  State  Farm  can  offer  much  more  benefits   to   the   Young   Planner.   More   than   this,   State   Farm   understand   that   low   prices   are   important,  but  also  that  its  particular  target   has   specific   needs   and   would   like   to   be   treated  in  an  exclusively  way.   Developing   a   new   message   ⏐Considering   this,   we   come   up   with   a   new   message   that   can   summarize   that   State   Farm   understand   better   the   Young   Adult   target   and   know   exactly  how  to  fit  their  necessities.  To  convey   this  notion,  we  design  the  following  message   to  sign  the  whole  campaign:  “Right  On”.       We   reach   this   message   by   considering   an   expression  that  is  usually  used  by  the  target,   when   they   see   something   that   they   agree   with.
  18. 18.   18   It   is   important   to   emphasize   that   all   of   communication   suggested   in   this   IMC   Plan   will   be   signed   with   this   message,   in   a   way   to   build   a   consistent   positioning   in   the   consumers  minds.   02  approaches⏐As  described  above,   the  strategy  will  be  focused  in  to  two   main   groups   of   Young   Adults:   (1)   New   consumers   (2)   Current   State   Farm’s   consumers.   When   we   talk   about  the  benefits,  it  becomes  clearer   this   distinction,   as   only   who   is   already   State   Farm’s   client   will   be   able  to  enjoy  the  benefits  offered  by   them.   By   doing   this,   State   Farm   will   create  a  perception  of  exclusiveness,   which   is   quite   appreciated   for   the   Young   Adults   target,   and   probably   will  turn  those  who  are  not  clients   interested  in  belong  to  this  “world   of  benefits”.     The  distinction  of  approaches  will  be   signalized   along   the   benefits   offered   by  State  Farm.  in  the  following  way:         Phases   of   the   campaign   ⏐The   campaign   will   be   divided   in   four   phases:   (1)   Implementation   of   the   benefits,   (2)   Segmented   communication   (3)   Mass   communication  (4)  Evaluation  of  the   campaign     In   other   words,   first   State   Firm   is   going   to   act.   Then,   it   is   going     to   spread   the   action   in   a   way   to   generate  world-­‐of-­‐mouth.  Later,  State   Farm  will  disclose  the  campaign  and   engage   the   target   by   using   mainstream   channels   of   communication.   Finally,   it   will   be   tracked   the   brand’s   performance   against  the  objective  of  the  campaign.
  19. 19.   19   PART  3:   Mix  of  tools   Determining   an   appropriate   mixture  of  tools  to  communicate   the   campaign   is   a   complex   decision   that   involves   an   accurate   analysis   of   the   target   and   its   touchpoints.   In   the   particular   case   of   this   campaign,  we  are  going  to  use  the  three  types   of   medias   -­‐   traditional   media,   e-­‐active   marketing   and   alternative   channels   -­‐,   as   illustrated  below:       The   graphic   above   considers   the   moment   when  each  tool  of  communication  start  to  be   used  per  phase.  In  other  words,  the  tools  that   started  to  be  used  in  phase  1  will  be  used  on   the  next  phases,  and  so  on.    
  20. 20.   20   PART  3:   Phases   description   PHASE  1    Benefits   offered   ⏐The   benefits   offered   by   State   Farm   are   the   core   of   the   campaign,   because   they  will  be  responsible  to  create   a   differentiation   among   the   competitors  in  the  mind  of  the  Young  Adults.   To  develop  them  we  considered  the  following   context  about  this  target:   -­‐  price-­‐sensitive   -­‐  frequently  touchpoints   -­‐  needs  and  lifestyle   Below,   we   present   some   benefits   that   could   be  offered  by  State  Farm:   1)  Party  bus     Description:   special   buses   that   take   State   farm’s  clients  to  parties.  The  ambience  of  this   buses   will   be   very   cool,   matching   with   the   characteristics  of  the  target.     2)  "Secure  Driver"   Description:  Need  a  taxi  to  get  home  after  a   night  of  fun?  State  Farm's  clients  will  be  able   to  call  for  a  taxi  to  take  their  home  from  8  pm   to  2  am.     3)  Discounts   Description:   State   Farm   will   make   agreements   with   some   companies,   in   order   to  provide  discounts  in  specific  places,  such   as:   parking   spaces   (close   to   universities,   cinemas  and  concert  halls)  for  those  who  are   State   Farm's   clients.   Also,   State   Farm   will
  21. 21.   21   give   to   its   clients   discount   tickets   in   activities  that  are  related  to  lifestyles   of  the  target  (will  be  described  better   in   Phase   2),   such   as:   concerts,   cinemas,  bars,  exhibitions,  and  so  on.     Finally,  aiming  to  incentive  “the  good   drivers”  in  a  target  that  is  well  known   to  be  one  of  the  most  involved  in  fatal   car  crashes  in  US,  State  Farm  will  give   discounts  in  buying  a  new  contract  or   renewing  the  auto  insurance  policy   for  those  who  didn’t  have  any   penalties  in  their  drivers  license.     4)  Special  quick  queues   Description:  State  Farm’s  client  will   be   able   to   take   special   quick   queues   to   get   inside   the   events   that   State   Farm  is  giving  discount  tickets.       5)  State  Farm’s  telephone   Description:   make   available   telephones   all   over   the   highways,   in   order   to   make   possible   that   people   whose   car   broken   and   have   their   mobile  phone  out  of  battery  can  call   to  the  State  Farm  services     Related   actions⏐Complementing   the   benefits,   we   also   suggest   the   development   of   the   following   tools/actions:   1)   Customized   State   Farm   auto   insurance  card   Description:  as  we  are  talking  about   a   particular   target,   State   Farm   will   developed   a   special   auto   insurance   card  with  the  design  of  the  vehicle  of   the  client.     2)  Car  stickers   Description:  in  order  to  make  easier   the   process   of   recognizing   State   Farm’s   clients   in   places   where   that   company   provide   benefits   (e.g.,   parking  spaces),  it  will  be  developed   some  “cool”  car  stickers  for  them.     3)  Agents     Description:   Since   State   Farm   maintain   an   independent   agent   model  and  the  target  is  more  used  to   make   services   primarily   via   call   centers   and   the   internet,   it   is   important   to   pay   attention   in   the   services   delivered   by   these   agents   and  the  place  where  it  happens.  This   become   even   more   important,   if   we   consider   that   in   major   of   the   times,   that   is   the   first   time   that   the   Young   Adults  are  dealing  direct  with  an  auto   insurance  service.  Because  of  this,  we   recommend  the  following  actions:  
  22. 22.   22   -­Training:   some   agents   should   be   trained   to   conduct   business   exclusively  with  the  Young  Adults,  as   these  target  is  “beginner”  in  this  field,   which  means  that  probably  they  will   need  more  support  and  attention.   -­‐Interior   design:   to   make   the   experience  of  going  to  a  State  Farm’s   agent  more  pleasant  and  natural,  we   recommend   that   State   Farm   provide   special   agencies   for   this   target.   In   other   words,   these   places   should   be   designed   considering   the   characteristics   of   the   target,   such   as   flexible  schedule,  near  to  universities   and  friendly  ambience.  It  is  important   to   consider   that   this   agency   won’t   replace  the  traditional  ones,  but  will   only   complement   them   in   a   way   to   cover  the  Young  Adults  demand.   Traditional  agencies   Berkeley  State  Farm  Agency     PHASE  2   Segmented   communication   ⏐In   order   to   generate   free-­‐publicity   and   consistence,   we   are   going   to   involve   the  journalists  and  opinion  leaders  in   the   communication   by   using   press   agents   and   public   relation.   Also,   we   are  going  to  communicate  straight  to   the  target  by  bringing  the  message  to   theirs  touchpoints,  instead  of  waiting   for  them  to  look  for  State  Farm.   1)  PR  and  Agent  Press     Description:   Public   relations   are   really   important   in   our   IMC   plan   because   they’re   the   most   important   tool  to  keep  updated  journalists  and   useful  for  increasing  the  visibility.   We   plan   to   keep   updated   the   press   sending   press   releases   about   new   product  or  events  that  we  support  at   least   once   a   month   by   mail.   We’re   going   to   send   them   all   the   information   they   need   for   their   publication,  including  images  so  they   can   figure   out   which   are   our   distinctive  characteristics.   We’re   are   going   to   organize   also   some   events   dedicated   to   the   journalists,   so   we   can   have   the   chance   to   explain   them   better   State   Farm’s  products.    Of  course,  we  plan   to   invite   them   to   all   our   events   that   we’re   going   to   support   and   the   contests.     The  journalists  that  publish  an  article   about  State  Farm  will  receive  one  of   our  benefits  for  free,  so  they  can  have   the  chance  to  try  one  our  product  and   understand  our  benefits.   2)  Right  On  website   Description:   As   our   target   are   people   from   18   to   24   years   old,   we   figured   out   a   website   full   of   interesting   information   and   useful   tools  for  reaching  the  target.   Some  of  the  contents  available  are:   -­‐State   Farm   new   products:   dedicated   to   present   the   benefits,   such  as:  “Party  bus”,  “Secure  drivers”   and  “State  Farm’s  telephone”;  
  23. 23.   23     -­Digital   Radio:   selection   of   top   hits   related   to   the   target   and   musics   to   download;   -­Events:   all   the   upcoming   events   related  to  the  Young  Adults;   -­News:   all   the   events   of   which   State   Farm  is  offering  discounts;   -­Get   a   discount   here:   randomly   banners   where   the   State   Farm’s   client   can   print   his   ticket   discounts   by   using   his   or   her   auto   insurance   number.   This   data   will   be   analyzed   and   used   later   for   more   customized   actions  with  these  customers.   -­Photos:  users  can  upload  and  share   pictures;   -­Blog:   users   can   leave   their   comments   about   State   Farm’s   products   and   give   suggestions   to   other  people.   -­State   farm   can   help   you   in   every   situation:   this   part   is   dedicated   to   illustrate  in  how  many  daily  situation   we  need  a  State  Farm  product.     -­Teaser:   section   related   to   future   action   related   to   the   “Right   On”   campaign,   such   as:   State   Farm   FM   and  State  Farm’s  TV  Contest  (both  we   are  going  to  describe  later);   -­Games:   a   page   to   entertain   people   with   some   games   such   as   tetris   or   puzzles   (researches   show   that   more   time  a  person  spend  in  your  website   more   chance   you   have   to   turn   him/her  into  a  customer).   -­Feedback:   we   collect   the   feedback   of   our   website   visitors   through   surveys  in  order  to  improve  our  tool   and  match  their  needs.   We’re  going  to  promote  our  website   through   different   channels   such   as   pop   up   in   the   campus   university   website  and  State  Farm  website,  that   will   include   also   a   link   to   our   new   website.   It’s  important  to  include  our  website   address   in   every   promotional   tools,   such  as  the  press  release  that  we  sent   to  journalists  and  also  in  each  of  our  
  24. 24.   24   new   promotional   such   as   the   party   bus  or  the  State  Farm  telephone.   Then  for  sure  we’re  gonna  advertise   it  through  the  social  media  tool.     3)  Social  media   Description:  Since  State  Farm  and  its   main   competitors   already   use   some   social  medias  -­‐  facebook,  twitter  and   youtube  –  we  recommend  that  State   Farm   increase   its   social   media   tools   or  even  start  to  use  new  ones.  Below,   we  present  some  suggestions:   -­Facebook:  send  people  that  are  fans   of  State  Farm’s  communities  Birthday   cards  with  discounts   -­Blog:  create  State  Farm’s  blog  linked   to   the   “Right   On”   website,   where   visitors   users   can   leave   their   comments   about   State   Farm’s   products,   give   suggestions   to   other   people   and   send   pictures   and   movies   about   any   particular   situation   that   they  have  lived.   -­Flicker:   show   pictures   of   event   involving   the   Young   Adults   target,   such  as  the    “Party  bus”  or  any  of  the   events   that   State   Farm   gives   discounts   -­Mixcloud:   as   the   target   is   enthusiastic  to  music,  we  suggest  this   social  media  where  the  visitors  can  re   commend  musics   4)   Application   for   iPhone   and   smartphones   Description:   As   far   as   we   know   about  i-­‐phone  and  Smartphone  users   download   their   favorite   or   useful   applications  on  their  displays  such  as   games,  news,  and  calendars  in  order   to   keep   using   and   seeing   the   information   without   going   specific   websites.    Beside,  it  became  popular   for   companies   to   provide   the   applications   for   free   to   their   customers   as   services.   It   helps   customers   that   have   contracted   a   specific   service   to   simplify   getting   information.     State   Farm   is   also   one   of   the   companies  that  utilize  the  application   for   the   customers   who   have   i-­‐touch   and  i-­‐phone.   Considering   target,   it   is   time   to   improve   the   application   and   the   features   for   them   based   on   the   previous  features:     •   Bill   Pay:   Allow   the   customers   pay   their  bills  on  the  application   •   Find   Discounts   usable   places:   a   feature   finds   out   places  that  can  use   discount   benefits   such   as   parking   spots   •   Register   for   a   party   bus:   a   feature   allows   the   customers   to   register  a  party  bus   by   the   application   and   tell   them   where  a  bus  pick  them  up  
  25. 25.   25   •   Find   the   roads   has   traffic   jams:   a   feature   finds   out   places   that   has   traffic  jam   •  Music  for  driving:  a  feature  provide   the   customers   music   that   can   young   adult  prefer  listening  during  driving         5)  “Students  communications”   Description:  Since  the  target  spend  a   big  percentage  of  their  time  inside  of   the   universities,   we   recommend   the   following  actions:   -­Student   newspapers:   many   colleges   have  their  own   student   newspaper,   which  includes   daily   information   around   campus   and   local   city,   the   student   activities,   such   as   student   events,   sport   competitions,   concerts   information   and   so   on.     Depends   on   campuses,   there   are   daily   published,   weekly   published,   and   season   published   one.     Since   students   take   those  papers  as  a  method  to  get  new   information,  State  Farm  can  use  these   tools  to  communicate  the  message.   -­Local  free  publication:  also  widely   read   by   students,   those   pamphlet   types  of  issues  can  be  mainly  divided   into   3   categories—music   and   art,   movies   information,   sport   events.     Students  can  get  those  pamphlets  or   flyers  in  theaters,  gyms,  dormitories,   or  even  café  shops  around  campuses.     State  Farm  can  pick  those  which  have   similar   features   to   the   IMC   promotion   as   an   instrument   to   communicate.     Sports   and   movie,   concert   related   issues   will   be   good   choices.   -­Outdoor/  indoor  information     1)   Students   billboard-­‐   even   it   is   simply  a  single  flyer  among  all  other   clutters,   it   is   close   to   young   adults’   lifestyle,   and   can   improve   brand   image  among  students.         2)   School   gym-­‐   While   students   are   exercising,   it   is   a   good   chance   for   State   Farm   to   expose   the   information  in   front  of  them  since  the  students  have   nowhere   to   go   but   stay   on   the   machine.    Besides,  the  message  of  the   promotion   is   very   cheerful   and   energetic;  it  will  fit  the  image  of  gyms   a  lot.     3)   Other   school   buildings-­‐   such   as   dormitories,   auditorium,   stadium,   where  posters  can  be  shown  in  front   of  students  are  also  good  options  for   State  Farm.     4)   Popular   places   around   campus-­‐   such  as  café,  bookstores,  and  cinemas   around   campuses.     In   addition   to   posting   posters,   those   places   also   provide   racks   for   pamphlets.     It’s   a   good   way   to   communicate   with   young  adult  group  through  the  places   where  young  adults  are  familiar  with.    
  26. 26.   26   6)  Kiosks   Description:  some  kiosks   will  be  provided  inside  of   universities,   colleges,   shopping   centers   and   cinemas.   The   idea   is   to   bring   State   Farm’s   to   the   places   where  the  Young  Adults  spend  much   time,   instead   of   waiting   for   them   to   look   for   State   Farm.   In   this   kiosks,   there   will   be   agents   to   respond   questions   and   if   demanded   starting   anyone   process   of   contracting   an   auto   insurance   service.   Also,   there   will   be   available:   Wi-­‐Fi   networks,   plugs   to   charge   the   batteries   of   the   computer   or   cell   phone   and   music’s   to   download   from   the   “Right   On”   Digital  Radio.       7)  Supporting  causes   Description:  As  we  described  before,   the  Young  Adults  are  one  of  the   targets  most  involved  in  fatal  car   crashes  in  US.  Because  of  this,  we   recommend  that  State  Farm  support   or  sponsor  some  projects  focused  in   decreasing  the  number  of  car  crashes   in  people  with  ages  between  18  and   25,  such  as:  Oprah's  No  Phone  Zone   (campaign  to  help  make  the  roads   safer  for  everyone).       PHASE  3   Mass   communication   ⏐After   involving   straight   the   target   and   some  influencers  in  Phase  2,  it  is  time   to  reach  a  big  amount  of  people.  For   this,   we   recommend   the   following   tools:   1)  State  Farm  FM   Description:   Complementing   the  online  radio   placed  in  the   “Right  On”   website,  we   suggest  that   State  Farm  creates  its  own  radio   station.  This  is  especially  important,   if  we  consider  that  the  target  spends   a  big  part  of  their  time  inside  of  their   cars.     Some   contests   that   will   be   broadcasted  by  the  radio  are:     .   Real   time   traffic   alerts   and   traffic   reports;   .   Guide   of   the   hottest   events   news,   such   as:   concerts,   cinemas,   parties,   exhibitions,  and  so  on;   .  Benefits  offered  by  State  Farm,  such   as   tickets   discounts   available   in   the   “Right  On”  website;   .  Top  music  hits   .   Teaser   for   the   State   Farm’s   TV   Contest  (as  we  are  going  to  describe   later)   and   other   medias   or   actions   developed  by  State  Farm.     2)  Segmented  magazines   Description:   State   Farm   should   be   focusing   on   the   magazine   advertisement   to   reach   out   to   the   young  adult  market  because  although   this  specific  age  group  is  not  keen  on   reading   they   have   great   interest   towards   magazines   which   interest   them.   Male   consumers   are   greatly   interested   in   sports   and   cars   and  
  27. 27.   27   there   are   many   magazines   that   are   good   mediums   to   reach   to   these   people,   same   with   the   female   consumers   who   are   more   interested   in   gossip,   fashion   beauty   magazines.   Some   of   the   magazines   that   State   Farm   should   advertise   on   are   Road&Track,   FHM,   GQ,   Playboy,   which   are   basically   read   by   the   age   group   we   are   targeting.   And   a   well   placed  eye  catching  ad  will  help  us  a   lot   in   order   to   attract   these   male   consumers.   For   female   consumers   Vogue,  Cosmopolitan,  Us  Weekly  are   might  be  some  of  the  examples  where   State  Farm  can  reach  to  the  potential   customers.   3)  Online  media  efforts   Description:   Internet   is   the   main   source   that   State   Farm   can   reach   to   these  Young  Adult  customers.  Ads  on   search   engines   such   as   Google   and   Yahoo,  be  it  a  banner  or  a  whole  page   ad.  As  we  described  above,  the  use  of   social   network   sites   are   crucial   because   there   are   hundreds   of   millions   of   people   that   interact   with   each  other  through  these  sites  and  to   be  located  in  the  heart  of  this  stream   will   benefit   our   company   greatly   in   order  to  reach  our  target  market.  We   also  have  to  be  in  the  internet  stream   channels  such  as  youtube,  hulu  etc.  as   well  as  internet  radios  which  mostly   are   used   by   the   young   generation.   Online   games   and   interactive   games   in   social   network   sites   are   hugely   popular   and   we   are   thinking   of   creating   a   game   in   social   network   sites  where  you  are  a  valet  trying  to   park   cars   in   the   parking   lot   without   hitting  and  as  quick  as  possible.  It’s  a   really  fun  game  that  youngsters  enjoy   and   the   marketing   side   to   the   game   comes   when   you   accidentally   hit   a   car  in  the  game,  State  Farm  ad  pops   out,   saying   that   “   In   trouble?   “     and   then   explains   how   State   Farm   can   help  people  in  such  occasions.   4)  State  Farm  TV  Contest   Description:  the  participants  will  be   supposed   to   write   their   real   stories   talking   about   a   situation   involving   the   benefits   offered   by   State   Farm   and  how  they  felt  “cool”  about  it.  The   top   2   submissions   will   be   selected   and   will   be   shot   by   a   film   producer,   resulting  each  one  in  30  seconds  TV   commercials   that   will   be   aired   as   State   Farm’s   auto   insurance   commercial   with   the   signature:   “Right  On”.     Also,   all   the   submitted   histories   will   be   published   in   the   “Right   On”   website,  where  they  can  be  read  and   ranked  by  the  visitors.       Website  site      
  28. 28.   28   PART  3:   Media  +   Non-­media   Plans     Media  Plan   After  defining  all  the  tools   presented  in  the  IMC  Plan,  it  is   time  to  distribute  all  of  them  all   long  the  campaign’s  period,  in  way   to  follow  the  3  phases  described  above  and   avoid  period  without  reaching  the  target.   As  we  recommended  media  and  non-­‐media   tolls,  we  divided  both  plans  like  presented   below:              
  29. 29.   29   Non-­media  Plan      
  30. 30.   30   PART  3:   Evaluation PHASE  4   Evaluation  of  the  campaign  ⏐Did   the   campaign   result   in   growing   through   new   Young   Adult   Auto   policies?   By   using   some   metrics,   we  will  try  to  request  this  question  and  other   related   to   the   campaign.   First   of   all,   it   is   important  to  consider  that  it  is  very  difficult   to   calculate   exactly   which   of   the   medias   or   non-­‐medias   suggested   as   responsible   specifically  for  each  0.1%  of  increase.  As  we   are   talking   about   a   IMC   Plan,   the   group   of   communication   tools   will   be   responsible   together  to  reach  the  target,  deliver  them  a   unique  perception  and  luckily  turn  them  into   State  Farm’s  new  clients.   One   good   thing   to   start   the   “Evaluation”   process   is   measuring   State   Farm’s   situation   in  the  exactly  moment  before  the  “Right  On”   campaign   starts   (April   30,   2010).   By   doing   this,   when   we   reach   the   last   day   of   the   campaign  (April  30,  2011),  we  will  be  able  to   compare  both  results  and  plan  the  next  steps.   Finally,   some   of   the   tools   that   we   recommended   can   help   in   calculating   with   more   accuracy   the   results   of   the   campaign,   by  using  specific  metrics,  such  as:   -­  Right  On  website:  Google  Analytics   -­Ticket  discounts:  number  of  tickets  printed   -­  Digital  radio:  number  of  musics   downloaded   -­  Kiosks:  number  of  new  clients  acquired   -­‐State   Farm   TV   Contest:   number   of   participants  submitted   -­Cell  phone  app:  number  of  downloads   -­Social   media:   number   of   new   fans   or   followers   -­"Secure  Driver":  number  of  taxis  required   -­Bus   party:   number   of   people   that   participate  in  this  benefit.