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KEEP GOIN’ STRONG

    STATEFARMSTRONG.COM
TABLE OF CONTENTS

     2    Executive Summary                               Shark Attack has the intense and fierce ability
     3    Situation Analysis                              to shred the competition and make your
                                                          target their main focus of attack. Starting with
     11   Primary Research                                its creative growl, the media will bite into the
     12   Problems & Opportunities                        target with its sharp teeth and chomp at the
                                                          audience with effective IMC promotions. The
     13   Creative Strategy                               attack will be backed with a strong stomach
     15   Media Plan                                      for research that can easily digest the target.

     25   Creative Executions                             What’s your plan for attack?
     32   IMC
     39   Budget Breakdown

                                        THE ATTACK TEAM
                                     RESEARCH DIRECTOR             MEDIA DIRECTOR
                                     Amanda Takacs                 Nicole Rehling
                                     THE STOMACH                   THE TEETH


     CAMPAIGN
     DIRECTOR                        CREATIVE DIRECTOR             IMC DIRECTOR
     Cory Schneider                  Marty Filogamo                Nicole Botich
     THE MOUTH                       THE GROWL                     THE CHOMP



1
EXECUTIVE SUMMARY

THE CASE                                                              have been able to reach independent young adults through
                                                                      their advertising campaigns, resulting in measurable success.
                                                                                                                                         include mobile ads, web player ads, Internet media site
                                                                                                                                         ads, mall kiosk placements, stair wraps, grocery cart ads and
                                                                      However, these competitors are catering increasingly to an         airport baggage claim clings. Shark Attack will use these non-
State Farm Insurance is the nation’s leading property and             impersonal world and often offer auto insurance exclusively.       traditional methods to their fullest to reach the target market,
casualty insurance company. To maintain its current position,         This is an opportunity for State Farm Insurance and for our        as they are an active group who consumes many mediums.
State Farm Insurance must target independent young adults,            campaign. Overall, through primary research, Shark Attack          Placements will heavy-up in the states with the highest
aged 18-25. Currently, State Farm Insurance is positioned             found that it is important to contemporize and build the brand     populations of 18-25-year-olds: California, Florida, Illinois,
as a traditional, old-fashioned insurance company to the 17           to attract our target market and to continue upstaging the         New York, Ohio, Pennsylvania and Texas.
million independent young adults within the U.S. population.          competition.
In addition, State Farm’s established customer base is aging,                                                                            In order to create buzz and more interaction between
directing the company to choose young adults as the primary                                                                              State Farm and the target market, Shark Attack will create
target and remain on top of the insurance market. Shark Attack
will effectively and efficiently use media placements, creative
                                                                      REsults                                                            promotional events throughout the yearlong campaign to
                                                                                                                                         create a connection between the two groups. The promotions
executions and promotional events to create a fully integrated        Shark Attack has allocated $21 million of the $40 million budget   will incorporate State Farm in typical everyday and night
marketing communications plan that will contemporize the              to media, using approximately $11.5 million on traditional         activities for those in the 18-25-year-old target, as well as large
brand image for State Farm Insurance.                                 placements and $8 million on non-traditional placements. $16       events in American culture (i.e. New Years Eve in Times Square,
                                                                      million of the campaign budget will be spent on IMC, with the      the college BCS national championship, March Madness, etc.).
RESEARCH                                                              remaining $3 million allocated for production and contingency
                                                                      funds. After conducting research, analyzing the market and
Through our primary research, Shark Attack found that the
                                                                      testing its concepts, Shark Attack believes that it has created
                                                                      an effective campaign that will connect with the target market.
                                                                                                                                         THE SOLUTION
target is independent young adults, aged 18-25, who are               Although the company’s existing customer base in aging,
responsible for 50 percent or more of their living expenses.                                                                             The target perceives State Farm Insurance as an outdated,
                                                                      State Farm Insurance still has the resources and the drive to      expensive brand for older adults. They perceive State Farm’s
Our campaign will be most visible in the seven major U.S.             provide both support and reliable insurance coverage to all
cities which have the largest population of this target market.                                                                          agent-based insurance model as a luxury they cannot afford.
                                                                      of their current and future policyholders. Through creative        The Keep Goin’ Strong campaign will reposition State Farm
Research showed that the primary target is both racially              media placements, State Farm Insurance will be consistently
and ethnically diverse, as well as being goal-oriented and                                                                               Insurance as a humorous and contemporary brand for young
                                                                      reinforced as a modern and approachable brand, allowing the        adults while achieving top-of-mind awareness. The tagline,
technologically advanced. Through research, it was also               target to know that no matter what life throws at them, State
discovered that the target is price-sensitive, as over 60 percent                                                                        Keep Goin’ Strong, means that no matter what happens in
                                                                      Farm Insurance will help them to Keep Goin’ Strong.                life, State Farm and its agents will be there to support their
of the target’s members are in college and approximately 56
percent are working full-time. The secondary target is “legacy”                                                                          clients during weak moments. State Farm Insurance will give
                                                                                                                                         the target reassurance that they are taken care of by someone
young adults, those whose parents have State Farm Insurance.
By researching the primary and secondary target markets, we
                                                                      Executions,                                                        who is experienced and understands. The existing Good
also identified a tertiary target: parents. Parents can be an large                                                                      Neighbor slogan will remain in our ads, under the State Farm
influence on the target when it is time for independent young         Media and IMC                                                      logo, to maintain the original branding and act as an extension
                                                                                                                                         to the money that the client has already spent promoting
adults to select an insurance company.
                                                                                                                                         it. The target will find the creative executions hilarious but
                                                                      Shark attack will accomplish the Keep Goin’ Strong campaign
Shark Attack’s primary research showed that State Farm,                                                                                  straightforward, reinforcing the brand image. By creating a
                                                                      through both traditional and non-traditional media to reach the
compared to its competitors, is behind in grabbing this target’s                                                                         modern and humorous campaign, Shark Attack will capture
                                                                      target market. Traditional media methods include collegiate
attention. State Farm’s key competitors are Progressive,                                                                                 the target market and as a result, be successful.
                                                                      newspapers, network television, radio, national magazines
Allstate and GEICO Insurance companies. The competitors               and out-of-home placements. Non-traditional media choices



                                                                                                                                                                                                               2
SITUATION ANALYSIS
    COMPANY Background
         State Farm Insurance was founded in 1922 by retired farmer and insurance salesman         The State Farm founder’s philosophy of insurance coverage at a fair price, coupled with
         George Jacob “G.J.” Mecherle. His motivation for starting the company was simple:         fair claim settlement, remains the cornerstone of the client’s success. His original vision
         he was intent on treating his customers with fairness and honesty.                        and values still guide State Farm’s current mission.

         Mecherle knew farmers drove less and had fewer accidents than city folks and              Today, State Farm insures more cars than any other insurer in North America. They are
         thought they should pay less for automobile insurance. The insurance company G.J.         also the leading U.S. home insurer. More than 17,000 agents and 68,000 employees
         worked for didn’t agree — and suggested he start his own company.                         serve the company’s 75 million policies in the United States and Canada. State Farm
                                                                                                   also provides their customers with a wide array of financial products and services to
         That’s exactly what he did.                                                               help them manage today and prepare for tomorrow.




                                                            1924                                                                         1942
                                                            Indiana Farm Bureau and State Farm sign                                      State Farm Insurance becomes the
                                                            a contract making the Indiana Farm Bureau
     1922                                                   the first state agent for State Farm.
                                                                                                                                         largest automobile insurer in the U.S.

     Jacob Mecherle started an
     insurance company that created
     fairness for individual customers.




                                                                                                                                                 18%
                                                                                                                                                                              STATE FARM

    SALES AND MARKET SHARE                                                                                                                                          11.1%
                                                                                                                                                                              ALLSTATE
        As of 2006, the auto insurance industry in the United States totaled over $162 billion.
        In the auto insurance market, the top 10 American insurance companies accumulated               OTHER                52%
        64% of the market share, the highest of which is State Farm. The company is currently                                                                        7.3%
        ranked 31st in the Fortune 500, a hierarchical listing of American companies by revenue,                                                                              PROGRESSIVE
        and insures more cars and homes in the U.S. than any other insurer. In 2007, State Farm
                                                                                                                                                                 6.7%
        Insurance earned a revenue of nearly $62 billion.                                                                                                                     GEICO
                                                                                                                                                       4.9%
                                                                                                                                                                              FARMERS
3
SITUATION ANALYSIS
Political and Legal Factors
  IT’S THE LAW
  Car insurance is regulated at the state level, with each state enforcing its own guidelines concerning the minimum
  car insurance coverage that is required. All states have laws regarding the minimum amount of liability coverage
  a driver must have in order to legally drive their vehicle, though it may be considered wise to carry additional
  coverage.

  Virginia residents, for example, are required by law to pay the state $500 annually if they choose not to carry
  liability insurance on a particular vehicle. New Hampshire, on the other hand, is one of few states that does not
  require motorists to carry liability insurance.

  The penalties that await motorists who choose not to carry auto insurance vary. It’s not uncommon for such a
  motorist to be subject to a hefty fine, license suspension, license expulsion or jail time. Usually, the minimum
  required insurance plan, by law, is third party insurance to protect the victim of an accident against being financially
  responsible for loss, damage or injury caused by a vehicle.




                                                                                                                                     2006
                                                                                                                                     State Farm was the first property and
  1965                                                                 1971                                                          casualty insurer ever to help promote
                                                                       State Farm’s well-known jingle, Like a Good                   a major feature film — the Disney/
  State Farm began marketing health insurance.
                                                                       Neighbor, State Farm is There, was written by                 Pixar animated feature film, CARS.
                                                                       American songwriter Barry Manilow.
PAST Themes
 In an effort to attract an emerging and relatively untapped market, State Farm
                                                                                                   MAJOR TRENDS
 Insurance initiated a young adult task force. The result was the 2006 Now What?                          The increase in Internet usage has changed the insurance industry tremendously.
 campaign, which featured a series of provocative and thought-provoking situations                        The direct-insurer model, which is exhibited by companies such as GEICO,
 that left viewers in a position to make a decision. Overall, the campaign improved                       Progressive and Esurnace, have an edge in this area because they cater to the
 young adults’ attitudes toward insurance understanding, brand recognition and                            ever-prevalent and growing trend of online insurance purchasing. Along the same
 favorability toward State Farm Insurance. Additionally, a significant increase in the                    lines, the insurance industry has become much more aggressive over the past few
 number of new policies written among the target group took place. State Farm’s                           years — tough economic times have made affordability a top priority, particularly
 current promotional budget is $40 million.                                                               among the target audience.


                                                                                                                                                                                              4
SITUATION ANALYSIS

    BRAND EVALUATION                                                                          DISTRIBUTION
                                                                                                There are a number of companies within the State

    BRAND importance                                                                            Farm Insurance Group, including the State Farm Mutual
                                                                                                Automobile Insurance Company, the State Farm Life
                                                                                                Insurance Company, the State Farm Fire and Casualty

    and uniqueness                                                                              Company and the State Farm Bank. Through these
                                                                                                companies, State Farm provides for the insurance needs
                                                                                                of current clients through an agent-based model with
                                                                                                16,000 agents and 76,500 employees throughout the




                                                                   “
       State Farm Insurance and its agents takes their roles as
       “good neighbors” within their community very seriously.                                  50 states and Canada. This type of business structure
       To a State Farm agent, this means being there when                                       gives State Farm’s customers the personal attention and
       and where they’re needed, support their customers                                        cooperation they desire. Because of this, all State Farm
       and following through on what they’ve promised. State          We are people who         companies take their Like a Good Neighbor, State Farm
       Farm Insurance commits to each protect and serve each                                    is There slogan seriously, living the slogan as a lifestyle
       policyholder. The client has built strong bonds and a
                                                                   make it our business to      rather than just viewing as a motto.
       tradition of success by ensuring these promises are kept.   be like a good neighbor;
                                                                                                State Farm insurance is sold in all 50 states with 16,000
                                                                      who built a premier       agents and 76,500 employees throughout the U.S. and
                                                                      company by selling        Canada.


Customer Satisfaction
     Because of their dedication to neighborly service,
     State Farm’s customer satisfaction is highest among
     all U.S. insurance agencies. According to the
     American Customer Service Index (ACSI), State
                                                                                      “
                                                                    and keeping promises
                                                                    through our marketing
                                                                    partnership; who bring
                                                                      diverse talents and
                                                                   experiences to our work
                                                                      of serving the State
                                                                                              Consumer perception
                                                                                               When compared to competing insurance companies,
     Farm Insurance ranks first for customer satisfaction for           Farm customer.         State Farm Insurance is losing the battle for young adults’
     property and casualty Insurance with a score of 81 on                                     attention. While they view State Farm Insurance as being
     a 100-point scale. State Farm also ranked second for                                      an old-fashioned and outdated brand, members of our
     automobile insurance, with a score of 80, tying GEICO.                                    target are attracted to contemporary brands, such as
                                                                                               GEICO and Progressive, because of their humorous
                                                                                               advertising and creative executions. To defend its top
                                                                                               position, State Farm Insurance will have to contemporize
                                                                                               its brand by keeping in touch with the lifestyles of young
                                                                                               adults.


5
SITUATION ANALYSIS




                                                                        “
BRAND PERSONALITY
                                                                          Our success is built on a foundation of shared
 State Farm’s current brand personality is perceived as
 being conservative and traditional, typically appealing                   values — quality service and relationships,
 to older generations as a reliable choice for insurance                  mutual trust, integrity and financial strength.
 products. Through the Keep Goin’ Strong campaign,
 State Farm’s brand will become a modern and more
                                                                                Our vision for the future is to be the
 approachable brand to those in any age group, primarily
 to the 18-25-year-old demographic. State Farm Insurance
 will become more like a friend than a service to current
 and prospective customers alike.
                                                                                                                “
                                                                          customer’s first and best choice in the products
                                                                          and services we provide. We will continue to be
                                                                          the leader in the insurance industry and we will
                                                                          become a leader in the financial services arena.
                                                                          Our customers’ needs will determine our path.
                                                                                      Our values will guide us.




Product Evaluation                                                               ESTATE PLANNING


 State Farm Insurance is currently the number one choice among
 Americans for both automobile and renters insurance. Running
 business under the agent-based insurance model helps State               YOUR              SAVINGS, HOME
                                                                                            OWNERSHIP, RETIREMENT,
 Farm Insurance maintain their Good Neighbor mind set, as their
 agents have the ability to provide guidance and support through
                                                                         LEGACY             EDUCATION PLANNING
 the insurance purchase process. In addition, State Farm’s agent-
 based model provides consumers with a reliable agent with whom          YOUR
                                                                        DREAMS
 they can have as a constant contact for any concerns, questions
                                                                                                       PROPERTY/LIABILITY, PREMATURE
 and claims submissions. When providing service to their clients,
                                                                                                       DEATH, DISABILITY, HEALTH CARE,
 State Farm’s agents believe it’s all about the client: their needs,
                                                                                                       LONG-TERM CARE, EMERGENCY

                                                                       YOUR RISKS
 their priorities, their values and their future.
                                                                                                       SAVINGS, DEBT MANAGEMENT,
                                                                                                       BUSINESS OWNERS


                                                                                                                                         6
SITUATION ANALYSIS

    TARGET MARKET                                                                                    PSYCHOGRAPHICS
                                                                                                      The primary target is goal-oriented, more ethnically diverse and more
    DEMOGRAPHICS                                                                                      fluent with technology than prior generations. They believe that everyone
                                                                                                      has an individual voice but are skeptical when it comes to placing their trust
                                                                                                      in a product or service. The target uses a variety of channels to conduct
     During the campaign year, there will be approximately 17 million independent young
                                                                                                      business for their insurance needs. Members prefer accessing price quotes
     adults, paying 50 percent or more of their living expenses and living in the U.S. The
                                                                                                      online or over the phone. For advisory issues, members of the target often
     target is both racially and ethnically diverse; one in three considering themselves a
                                                                                                      prefer to request help in person or over the phone.
     minority. More than 60 percent of the target consists of college students and 56 percent
     of them are also working full-time. Known as the “Millennial Generation,” the target
                                                                                                      Independent young adults are distinguished from dependents by their
     is part of the largest age group since the “Baby Boomers.” There are over 11 million
                                                                                                      autonomy and decision making on both insurance and financial services
     households that currently include a young adult and an additional 3.3 million where a
                                                                                                      products. Almost three times as many young adults who pay for their own
     young adult is considered to be the head of the household. The secondary targets are
                                                                                                      insurance have switched providers compared to those whose parents pay
     “legacy” young adults — those whose parents are State Farm Insurance customers. The
                                                                                                      for their insurance. Those who are loyal to State Farm Insurance because of
     tertiary targets are parents of the primary, as they are both a direct and indirect influence
                                                                                                      their parents are called “legacy” young adults. This group is most likely to
     on the selection of an insurance company.
                                                                                                      return to using State Farm for the security known from parents’ experience.

                                                                                                                                 Young adults are on a budget and are fiscally
                                                                                                                                 conscious. This target worries about reducing
                                                                                                                                 debt and their careers started. They tend to
    GEOGRAPHICS                                                                                                                   believe that nothing bad will ever happen
                                                                                                                                  to them. This target wants to be considered
                                                                                                                                  adults, yet most have limited experiences.
     This will be a nationally distributed campaign with
                                                                                                                                   They are Internet-savvy and prefer to take
     special consideration given to the states with the
                                                                                                                                   care of most things online.
     highest populations of the 18-25-year-olds: California,
     Florida, Illinois, New York, Ohio, Pennsylvania and
     Texas. State Farm Insurance is licensed to sell insurance
     products in all 50 U.S. states and the Canadian
     provinces of Alberta, New Brunswick and Ontario.




7
SITUATION ANALYSIS

BRAND CAPSULES
THE HIGH SCHOOL GRADUATE                                                 THE COLLEGE STUDENT
  Alison is 18 years old and lives with her parents. She is about          Justin is a 21-year-old student — part of the 60 percent of
  to graduate high school and is not interested in learning                young adults that attends college. He also works a part-
  about spending money to prepare for the unexpected. Alison               time job. He is price-sensitive, budgeting his money in
  wants to be considered an adult, yet she is unfamiliar with              an organized and conscious manner. He is worried about
  many of life’s experiences. Her parents are ready to let her             accumulating debt paying off his student loans when he
  experience this desired independence when she begins to                  graduates.
  attend college and rent her own apartment, though Alison will
  then be responsible for more than 50 percent of her living expenses.

                                                                         THE Non-traditional STUDENT
THE “LEGACY” CUSTOMER                                                      Jessica is a 24-year-old nontraditional college student
                                                                           who is only halfway though her college program. She has
  Brett is a 21-year-old college senior whose parents are insured by       been working full-time since high school to pay for her
  State Farm. When he graduates college, he will be more loyal to          college education. Jessica is looking into purchasing her
  State Farm Insurance than new prospect independents. He will             own insurance policy, since she is no longer covered by her
  choose State Farm over a new insurance provider, because his             parents’ plan. A local State Farm agent could provide her
  parents have had positive experiences with State Farm.                   with the assistance and security she needs, especially since
                                                                           she does not have a solid understanding of insurance features.



THE FULL-TIME WORKER                                                     THE WORKING PROFESSIONAL
  Ronnie is 20 years old and is one of the 17 million independent
  young adults responsible for 50 percent or more of their living          Ann is 24 years old and is the head of her household; one
  expenses. He has developed his mother’s autonomy and                     of 3.3 million in the U.S. population of young adults. She
  decision making with insurance and financial services. Ronnie            graduated from college and has a sustainable job, is reducing
  moved out of his mother’s house when his graduated high school           loan debt and maintaining a successful career. She desires
  and got a full-time job. He possesses the working knowledge of           the quality of trust and support for her family and is unsure
  what he needs to be on his own and is working towards buying             of which company would be the best fit.
  a new vehicle.


                                                                                                                                            8
SITUATION ANALYSIS

COMPETITIVE                                                   Allstate                                                           Geico
ANALYSIS                                                       BACKGROUND Founded in 1931, Allstate is the
                                                               largest publicly held personal insurance line in the U.S.
                                                               Allstate provides its products to their customers in a
                                                                                                                                  BACKGROUND Originally the Government
                                                                                                                                  Employees Insurance Company, founders Leo and
                                                                                                                                  Lillian Goodwin set out to establish an insurance
                                                               variety of ways including agents, banks, and brokers. In           company for U.S. government and military
                                                               total, Allstate sells 13 different lines of insurance including    personnel. From its inception in 1936, GEICO has
                                                               auto, life, and commercial as well as offers services such         become the fastest-growing major auto insurance
                                                               as banking, retirement and investment options for its              provider in the country. In 1995, Warren Buffet and
                                                               clients.                                                           his investment firm, Berkshire Hathaway, purchased
                                                                                                                                  GEICO stock, making it one of its subsidiaries. This
                                                               POSITIONING Allstate’s tagline You’re in Good                      transition had a profound increase on the amount of
                                                               Hands with Allstate gives a very strong platform for               GEICO’s advertising, resulting in a large period of
                                                               its creative strategy. Its current campaign, Our Stand,            growth for the company.
                                                               features commercials lead by their spokesperson in real
                                                               life events ranging from high school dances to football            POSITIONING GEICO often uses humor as
    ESURANCE                                                   tailgating. The commercials feature straightforward
                                                               messages emphasizing the benefits Allstate offers to its
                                                                                                                                  a prominent force behind their advertising. Past
                                                                                                                                  campaigns have used 3-D animation in the form of
     Founded in 1998 under the name Sierra Holdings            customers and the advantages and savings individuals               the GEICO gecko and the GEICO cavemen, using
     Inc., Esurance began accepting auto insurance             can reap by switching insurance providers.                         the tagline GEICO: So Easy a Caveman Could Do It.
     polices in 1999. Though it is now a private insurer                                                                          Many of the early advertisements operated under
     under the White Mountains Insurance Group, the            STRENGTHS Allstate is currently the second leading                 the tagline 15 Minutes Could Save You 15 percent or
     San Francisco-based company employs roughly               provider of personal property and casualty insurance in            More on Car Insurance.
     1,700 workers. In 2008, revenue totaled $826 million      the nation. As a result, Allstate holds a strong market
     after having spent only $120 million on advertising       share within the industry. Recently, the company’s                 STRENGTHS GEICO offers a wide range
     the previous year. Esurance is currently licensed to      financial ratings have increased, causing the company’s            of products to its customers including auto, life,
     sell insurance in 30 U.S. states. Erin Esurance, their    credibility to grow within consumers’ minds. Along with            overseas, motorcycle, home owner, renters, mobile
     animated superhero spokeswoman, was designed to           their established credibility, Allstate offers its clients         home, flood, umbrella, and boat insurance as well as
     contrast an industry that is largely perceived to be      a wide selection of products and services which has                emergency roadside assistance. This diversification
     dry and intimidating. The company also positions          expanded their customer reach.                                     helps the insurance provider appeal to a wide group
     themselves as being more environmentally conscious                                                                           of potential consumers.
     than their competitors by making statements and           WEAKNESSES Allstate’s decision to add additional
     payments available online.                                products to their line has produced negative side                  WEAKNESSES Using humor in its advertisements
                                                               effects, lessening the profits of the company as a whole.          has gained brand recognition for GEICO, but the
                                                               This, paired with the downturn in the economy, in                  company’s credibility has not been reinforced. The
                                                               2008, resulted in a decrease in Allstate’s policies. With          young and fun feel of GEICO may not appeal to all
                                                               premiums decreasing, the available budget left for                 consumers. As a result, they are isolating a segment
                                                               advertising is threatened.                                         of their market through this approach.

9
SITUATION ANALYSIS
progressive                                                                     Safe Auto
  BACKGROUND Progressive Mutual Insurance Company was                            Safe Auto was founded in 1993 and is headquartered
  founded in 1937 by Joseph Lewis and Jack Green. Almost two                     in Columbus, Ohio. The company currently serves
  decades later, in 1958, they added Progressive Casualty Company to             14 states and its average ad spending of $60 million
  add auto insurance to their products. The Progressive Corporation              has made the company’s jingle infamous among
  was formed in 1965 and the company went public in 1971.                        television audiences everywhere. Currently, Safe
                                                                                 Auto’s marketing has been left in the hands of a
  POSITIONING Progressive also uses humor as a foundation for                    fictional Safe Auto worker, Justin Case. Its 1,100
  their advertising strategy. Progressive’s spokeswoman, Flo, is a bold,         employees man the phones 24 hours daily to help
  fun-loving personality who dominates their commercials. During                 fulfill the company’s consumer promise to be kept
  these spots, Progressive gives shape to a virtual shopping experience          Legal for Less.
  where the consumer is in charge, emphasizing the customization
  options available and the affordability that Progressive can offer.
  Progressive’s tagline, Now That’s Progressive, highlights their direct-
  insurer model which has easy accessibility for consumers.

  STRENGTHS Progressive is widely accepted by consumers,
  which gives the company a strong position within the auto insurance
  industry. Progressive has also lead the market in motorcycle insurance
  since 1998. Having strong positions in both markets is a testament
  to Progressive’s brand recognition and customer loyalty. In 2008,
  Progressive received a patent for the new approach they invented
  to handle automotive insurance claims. Customers can now bring
  their vehicles to one of Progressive’s claim sites and pick up a rental
  vehicle while the representative writes up a quote, schedules repairs
                                                                                Nationwide
  and handles the business end of the insurance claim for the client.
                                                                                 With annual revenue of approximately $21 billion
  This process has increased Progressive’s customer satisfaction and
                                                                                 in 2008, Columbus, Ohio’s Nationwide Mutual
  overall productivity, giving them a positive stock in consumers minds.
                                                                                 Insurance Company began as the Ohio Farm
                                                                                 Bureau Federation. Nationwide is heavily involved
  WEAKNESSES Due to its size, Progressive has difficulty
                                                                                 with the world of American sports. They are
  competing with larger businesses. This disadvantage, paired with the
                                                                                 accredited with bringing Columbus’ NHL franchise
  poor performance the company showed over the course of 2008,
                                                                                 to town and, afterward, becoming a title sponsor on
  may potentially hurt the company’s credibility in the minds of its
                                                                                 the NASCAR Nationwide Series. Nationwide spent
  consumers. Lower revenues will eventually decrease the available
                                                                                 a total of $80 million on advertising in 2007, making
  advertising budget.
                                                                                 them a formidable competitor in the field of agent-
                                                                                 based insurers.

                                                                                                                                         10
PRIMARY RESEARCH
 FOCUS GROUPS                                                                                                         SURVEYS
      Shark Attack conducted five focus groups with participants, aged 18-25, to learn more about their                   We collected 100 surveys from within the target to gain a
      perceptions of State Farm and the insurance industry. Some individuals were knowledgeable about the                 greater insight of their media consumption, current perceptions
      basics of insurance, while others did not have any experience with insurance. Many participants seemed              of State Farm Insurance and their competitors. We learned
      to rate the top insurance companies by their familiarity with their advertising. Quality and price was more                                        that when advertising auto
      important for those who a had a vague knowledge of insurance, usually purchasing insurance                                                         insurance, evening television
      after conducting research. The participants in our focus groups did however agree that                        SURVEYS — 100                        and promotional giveaways or
      auto insurance is necessary; though, a few people believed renters insurance was not.                       FOCUS GROUPS — 5                        sponsorships were the most
                                                                                                           ONE-ON-ONE INTE     RVIEWS — 25                influential. The most surprising
                                                                                                                AGENT INTERVIEW      S—3                  finding of our survey concerned

     One-on-one Interviews                                                                                        CONCEPT TESTS — 2
                                                                                                                                                           the preferred structure of
                                                                                                                                                           managing auto insurance. 52
                                                                                                                                                           percent of respondents preferred
       By conducting 25 one-on-one interviews, our team was able to gain a greater insight of the target’s                agent-based models, with a local agent managing the account.
       current perceptions of State Farm and their familiarity of the insurance industry as a whole. Looking              Only 46 percent of the surveyed target preferred the direct-based
       outside the target market, Shark Attack also managed to interview career-oriented males and females                model, managing their account strictly online or over the phone.
       aged 23-28, who may have graduated from college, started a career, and/or family, in order to obtain
       information about how they purchased insurance and their thought process while doing so.

                                                                                                                         Brand perception
     AGENT INTERVIEWS                                                                                                             RECOGNIZABLE
                                                                                                                                                         FUN/FRESH


                                                                                                                                                                           EXPERIENCED
      We conducted three agent interviews to complete our primary research. These interviews were done in
      an effort to collect further information about the insurance industry, giving us an additional perspective to
      take into account for our campaign. Learning more about the daily business that is conducted between
      State Farm Insurance agents and their clients helped our team conceptualize effective advertising.                      PRACTICAL                                            TRUSTWORTHY




     CONCEPT TESTs
      To gauge the target’s response, Shark Attack held concept tests within the various stages of campaign                    STRUCTURED                                       AFFORDABLE

      development. The first phase of concept testing was done while the creative executions were still being
      constructed. Using the groups’ feedback, our team made the appropriate revisions and used several
      participants’ suggestions in further executions. Testing was also completed once the executions were                                CUSTOMIZABLE               PREMIUM
      more concrete, again the suggestions were taken into consideration and final corrections were made.

                                                                                                                            STATE FARM        ALLSTATE         GEICO            PROGRESSIVE
11
PROBLEMS & OPPORTUNITIES
PROBLEMS                                                                              OPPORTUNITIES
  Target market is extremely price sensitive.                                           Persuade the target to take action and visit StateFarmStrong.com, where the
                                                                                        available bundle packages and discounts will be featured.

  State Farm lacks awareness and recognition within the target market.                  Highlight State Farm’s experience and history while implementing a humorous
                                                                                        and straightforward advertising campaign that appeals to the target market.

  Though agent-based and direct-based model are equally appealing, it is                Disseminate through StateFarmStrong.com that State Farm Insurance agents
  perceived that agent-based insurance models are at a disadvantage because             are available over the course of nights and weekends, altering the current
  of the inaccessibility of agents during nights and weekends.                          perception.

  Statistics show that half of young adults switch insurance providers within the       State Farm Insurance can increase the awareness of agent-based insurance
  first year due to dissatisfaction with service, specifically because the way they     benefits and how they strive for their clients not to feel like a number.
  were treated and for price concerns.                                                  StateFarmStrong.com will give the target information and different options
                                                                                        which potential policy holders can browse through.

  The target is not interested in learning about or researching insurance options.      State Farm Insurance has the ability to educate its target in an effective
                                                                                        manner that will hopefully build brand recognition and provide a connection
                                                                                        between State Farm Insurance and new clients.

  State Farm’s current client base is aging at an accelerated rate.                     With Keep Goin’ Strong, start to target current 18-25-year-olds, “Echo
                                                                                        Boomers,” who comprise the largest generation since the “Baby Boomers”.

  The target has a skeptical perception about where to place their trust in             Present information to the target rather than make it their responsibility to
  products or services concerning insurance providers.                                  conduct research.

  Many insurance companies target the Caucasian majority, when in actuality             Construct creative executions which connect with individuals from any
  37 percent of the target population is not actually Caucasian. Multicultural          cultural or ethnic background.
  young adults comprise more of the population which State Farm Insurance is
  targeting.

  State Farm’s key competitors offer very similar services and coverage lines.          Utilize advertising media that reduces the impact of clutter by competitors’
                                                                                        clutter.


  Many members of the target are reluctant to ask for advice, especially                Create a campaign that is friendly and welcoming to new policy holders.
  concerning financial problems.

                                                                                                                                                                        12
CREATIVE STRATEGY
 BUSINESS OBJECTIVES                                                                                 TARGET MARKET
     State Farm’s overall goal is to gain a fair share of the young adult market by changing the      DEMOGRAPHICS Keep Goin’ Strong’s primary target are the
     perception of State Farm among young adults, which will then lead to consideration of the        approximately 17 million independent young adults currently living in the U.S.
     brand and purchase.                                                                              This group extremely diverse — they are more accepting of other cultures
                                                                                                      and lifestyles than the generations before them and are composed of a wider
        •	 To increase consumption and knowledge of State Farm auto and renters insurance within      range of ethnicities. 60 percent of the target identify themselves as college
           the target 18-25-year-olds.                                                                students and 56 percent claim to work full-time. Children of parents who
        •	 To contemporize State Farm Insurance and make the company top-of-mind for                  are already State Farm Insurance customers are our secondary target, called
           18-25-year-olds.                                                                           “legacies.” These parents have a great deal of influence on the purchase of
        •	 To increase brand recognition and preference over the competition.                         insurance, making them Keep Goin’ Strong’s tertiary target.
        •	 To increase trust and loyalty with current and prospective policy holders.
        •	 To establish State Farm as the preferred insurance company and maintain its position as    PSYCHOGRAPHICS The primary target is driven and technology-
           the number one auto insurance provider.                                                    savvy. Their youthful demeanor has made them skeptical about putting
                                                                                                      too much trust in a particular company. Use of student loans and limited
                                                                                                      income has forced many members of the target to spend their earnings
                                                                                                      very conservatively and insurance is typically brushed to the bottom of their
                                                                                                      priority list. As a result, it’s difficult to engage the target in a discussion about
 ADVERTISING OBJECTIVES                                                                               preparing for the unexpected, especially when money is involved.

                                                                                                      The target uses a vary of media channels on a daily basis. Over-saturation
     State Farm’s advertising goal is to develop a fully integrated marketing communications
                                                                                                      and clutter in advertising has become a serious concern when given the
     program to change the perception of State Farm.
                                                                                                      challenge of reaching these individuals. Both the primary and secondary
                                                                                                      target prefer to conduct insurance-related business online or over the phone.
        •	 COGNITIVE To gain interest and better educate the target about auto and renters
                                                                                                      When problems arise, however, they are more prone to call a representative
           insurance.
                                                                                                      than dig for answers on untrusted Web sites.
        •	 AFFECTIVE To convince the target that State Farm Insurance is not only an insurance
           company, but also a straightforward friend who will encourage consumers to persevere.
                                                                                                      GEOGRAPHICS Keep Goin’ Strong is a national campaign with an
        •	 CONATIVE To stimulate the target to choose State Farm Insurance as their auto and
                                                                                                      increased emphasis on seven DMAs in California, Florida, Illinois, New York,
           renters insurance provider and to eventually become loyal brand consumers.
                                                                                                      Ohio, Pennsylvania and Texas. These DMAs have the highest populations of
                                                                                                      independent young adults (aged 18-25). State Farm Insurance is one of few
                                                                                                      insurers licensed to sell products and cover their clients in all 50 U.S. states.

 CONSUMER PROMISE
     Life happens. State farm insurance will be there through it all with the friendly service and
     security you deserve. With the agent-based program, you are bound to Keep Goin’ Strong.


13
CREATIVE STRATEGY
COMPETITIVE FRAME                                                                            POSITIONING
 KEY COMPETITORS GEICO, Allstate and Progressive                                              State Farm Insurance is currently positioned as the number one auto and
 SECONDARY COMPETITORS Esurance, Nationwide and Safe Auto                                     renters insurance company. While most young adults describe State Farm
                                                                                              Insurance as a company, they often see it as an old-fashioned, expensive
 State Farm currently leads the market in auto and renters insurance. When it comes to        brand for more established adults. These perceptions can make young
 the brand’s perception among young adults, however, State Farm Insurance, lags behind        adults feel that State Farm Insurance is out of touch with people their
 its competitors. Several competitors take advantage of direct-insurer models, which base     age and, therefore, not an viable insurance option. The desired consumer
 their customer support around call centers the Internet. This indirect approach appeals      perception is to be a top-of-mind consideration, to be friendly and to be
 to our technology-savvy target. State Farm, on the other hand, along with one of its top     straightforward.
 competitors, Allstate, believe that agents are an essential part of insurance experience.
 These insurance companies practice agent-based management models and focus on                Primary research showed that young adults perceive State Farm Insurance
 offering a more direct approach by using agents to answer questions and provide advice.      to be dated and incompatible with their lifestyle. The target does not
                                                                                              understand the value and guidance that an agent can provide and is
                                                                                              hesitant to initiate personal contact when they are used to doing business
                                                                                              in more impersonal ways. Therefore, positioning State Farm Insurance as
                                                                                              a contemporary and upbeat insurance company will create awareness and
TONE AND MANNER                                                                               amusement. Keep Goin’ Strong will make State Farm Insurance a top-of-
                                                                                              mind option for young adults.

 Executions are shocking and humorous but followed by a strong and uplifting message:
 Keep Goin’ Strong. Applying this concepts to the target market will change the perception
 of State Farm Insurance among young adults and position the brand in the top of the
 consumer’s mind
                                                                                             The BIG IDEA
                                                                                              Through life’s big and small moments, everyone
Claim Support                                                                                 needs a good neighbor. Whether it’s being hit in
                                                                                              the face, falling down the stairs or your first little
 •	   Be introduced to an agent who will work with you to customize your insurance plan.      fender bender, State Farm Insurance will keep
 •	   We will take care of your needs at your level and for a better value.
 •	   We can handle any problem today to keep you going strong.
                                                                                              their customers going. State Farm supports their
 •	   Online convenience and over the phone 24 hours daily.                                   clients during their weak moments, making them
 •	   We make it personal because we have been there. We want you to Keep Goin’ Strong.       strong so that no matter what life may throw at
                                                                                              them, State Farm help will them Keep Goin’ Strong.

                                                                                                                                                                           14
MEDIA PLAN
                                              OBJECTIVE                                                     STRATEGY
                   Reach independent 18-25-year-olds, including Hispanics, African  Allocate a large percentage of media spending towards non-traditional
     TARGET        Americans and Asian Americans responsible for 50 percent or more placements that match the target’s media consumption. Our campaign
                   of their living expenses.                                        will pair non-traditional media placements with traditional vehicles such as
                                                                                    college newspapers, national magazines and network television.


     GEOGRAPHIC
                   Implement a national campaign that emphasizes the states that         Emphasize media placements within the following states: Texas, Florida,
                   contain the highest populations of the target markets.                Illinois, New York, Ohio, Pennsylvania, and California.


                                                                                         Pay close attention to special events and scheduled media placements
     SEASONALITY
                   Create a campaign that extends from May 2010 to May 2011,
                                                                                         within the duration of the campaign year, tailoring advertisements
                   keeping the creative message current with each execution.
                                                                                         accordingly.



     REACH AND
                   Reach approximately 60 percent of our primary target within the first
                   half of the campaign with an average frequency of four. Reach 30      Place advertisements in a variety of mediums in an attempt to not only

     FREQUENCY
                   percent of our secondary target and 10 percent of our tertiary target obtain our target reach but also to maintain our desired frequency.
                   by accounting for media overlap.


                   Maintain a consistent presence throughout the duration of the
     SCHEDULING
                                                                                     Buy media in a pulsing schedule, advertising in each month with an amount
                   campaign year with a heightened emphasis during months of special
                                                                                     during peak times.
                   interest.



     CREATIVE
                   Reach a target that has become desensitized to advertising efforts in Advertise in new and innovative outlets to effectively gain attention from
                   over-saturated, cluttered media.                                      our target audience.


                                                                                         $21 million will be budgeted towards media placement with spending

     BUDGET
                   Effectively allocate 53 percent of the total budget toward media      broken down as such: $2 million in collegiate newspapers, $4 million in
                   placements.                                                           Internet, $2.5 million in national magazines, $5 million in network television,
                                                                                         $1 million in Web players and $1 million in mobile.




15
MEDIA PLAN
TELEVISION
NETWORK        VEHICLE                     LENGTH        DAYPART                FREQ      MONTHS            REACH        CPP          RP    CPM      TOTAL COST
ABC            Desperate Housewives        :30           Primetime 8p-11p       5         9 (Sept - May)    13,951,000   $23,171.00   5.6   $9.30    $648,788.00
ABC            Grey’s Anatomy              :30           Primetime 8p-11p       5         9 (Sept - May)    13,795,000   $23,171.00   5.6   $9.41    $648,788.00


CBS            The Big Bang Theory         :30           Primetime 8p-11p       5         9 (Sept - May)    12,729,000   $23,171.00   5.8   $10.56   $671,959.00
CBS            March Madness               :30           Primetime 8p-11p       3         2 (March - Apr)   11,100,000   $23,171.00   6.5   $13.57   $451,834.50


NBC            The Office                  :30           Primetime 8p-11p       5         9 (Sept - May)    5,590,000    $23,171.00   4.2   $17.41   $486,591.00
NBC            Sunday Night Football       :30           Primetime 8p-11p       3         5 (Sept - Jan)    21,560,000   $23,171.00   9.1   $9.78    $1,054,280.50


FOX            Family Guy                  :30           Primetime 8p-11p       5         9 (Sept - May)    7,382,000    $23,171.00   3.7   $11.61   $428,663.50
FOX            House                       :30           Primetime 8p-11p       5         9 (Sept - May)    3,910,000    $23,171.00   1.5   $8.89    $173,782.50
FOX            World Series                :30           Primetime 8p-11p       3         2 (Oct - Nov)     7,641,000    $23,171.00   5.8   $17.59   $403,175.40


THE CW         America’s Next Top Model    :30           Primetime 8p-11p       5         4 (May - Sept)    3,960,000    $23,171.00   1.7   $9.95    $196,953.50
THE CW         Vampire Diaries             :30           Primetime 8p-11p       5         9 (Sept - May)    4,113,000    $23,171.00   1.8   $10.14   $208,539.00
TOTAL                                                                                                                                                $5,373,354.90




RATIONALE: Network Television $5,373,354.90
25.59 percent of the media budget was allocated to network television. By broadcasting State
Farm’s Keep Goin’ Strong campaign to a nationally diverse audience, we will increase awareness
within different demographics. Our vehicle selections consist of television programs that target
both males and females. Network television is an excellent way to reach a large percentage of our
target. These 30-second spots will run throughout the length of the campaign year to increase
awareness of State Farm Insurance and to contemporize the brand.

                                                                                                                                                                     16
MEDIA PLAN
 RADIO
     DMA              STATION         FORMAT         DAYPART         FREQ       LENGTH       CUME       GRPS   CPP       COST/SPOT   AQH (%)   COST
     Chicago          WGCI-FM         Urban          M-F 3-7 PM      60         :30          6.5        390    $252.78   $682.50     2.7       $98,584.00
     Chicago          WKSC-FM         CHR            M-F 6-10 AM     60         :30          6.7        402    $210.64   $737.25     3.5       $84,677.00
     Cleveland        WENZ-FM         Urban          M-F 3-7 PM      60         :30          6.5        390    $252.78   $682.50     2.7       $98,584.00
     Cleveland        WGAR-FM         Country        M-F 6-10 AM     60         :30          5.9        354    $210.64   $737.25     3.5       $74,567.00
     Houston          KHMX-FM         Hot AC         M-F 6-10 AM     60         :30          3.8        228    $210.64   $737.25     3.5       $48,026.00
     Houston          KTHT-FM         Country        M-F 6-10 AM     60         :30          5.9        354    $210.64   $737.25     3.5       $74,567.00
     Los Angeles      KDAY-FM         Urban          M-F 3-7 PM      60         :30          6.5        390    $252.78   $682.50     2.7       $98,584.00
     Los Angeles      KIIS-FM         CHR            M-F 6-10 AM     60         :30          6.7        402    $210.64   $737.25     3.5       $84,677.00
     Miami            WLRN-FM         AC             M-F 6-10 AM     60         :30          5.8        348    $210.64   $737.25     3.5       $73,303.00
     Miami            WAMR-FM         Spanish        M-F 6-10 AM     60         :30          3.1        186    $210.64   $737.25     3.5       $39,179.00
     New York City    WWPR-FM         Urban          M-F 3-7 PM      60         :30          6.5        390    $252.78   $682.50     2.7       $98,584.00
     New York City    WXRK-FM         Rock           M-F 3-7 PM      60         :30          4.5        270    $252.78   $682.50     2.7       $68,251.00
     Philadelphia     WXTU-FM         Country        M-F 6-10 AM     60         :30          5.9        354    $210.64   $737.25     3.5       $74,567.00
     Philadelphia     WIOQ-FM         CHR            M-F 6-10 AM     60         :30          6.7        390    $210.64   $737.25     3.5       $98,584.00
     TOTAL                                                                                                                                     $1,114,734.00




     RATIONALE: Radio $1,114,734
     5.31 percent of the media budget was allocated to the top two radio stations in the DMAs with the
     highest population of 18-25-year-olds. We chose to utilize radio advertisements to primarily announce
     and promote our IMC events. Choosing a morning daypart targets independent young adults on early
     commutes to work or school. An evening daypart increases exposure in other segments that may have
     been missed by morning advertisements. From hip-hop to country, adult contemporary to Spanish-
     language radio, our target will recognize State Farm’s Keep Goin’ Strong campaign as modern and fresh.
     Through the radio executions, State Farm Insurance will create awareness of their brand and attract the
     target to attend IMC events.

17
MEDIA PLAN
MAGAZINE
MAGAZINE                CIRCULATION             INSERTS           AD SIZE           GRIMPS          COST/INSERT            CPM       COST
Sports Illustrated      3,218,133               5                 Full Page/4C      16,090,665      $320,000.00            $99.44    $1,600,000.00
Glamour                 2,290,452               5                 Full Page/4C      11,452,260      $170,080.00            $74.26    $850,400.00
Shape                   1,701,028               5                 Full Page/4C      8,505,140       $162,000.00            $95.24    $810,000.00
TOTAL                                                                                                                                $3,260,400.00




 RATIONALE: Magazine $3,260,400
 15.53 percent of the media budget was allocated to national magazines. Magazine insertions are an excellent way to target a national audience and because
 of their circulation and extended shelf life. Throughout the year, these advertisements will complement other traditional placements in order to build State
 Farm’s brand awareness and work to change the perception of young adults. While the majority of the target does not have yearly magazine subscriptions,
 we chose to advertise during special interest months.




 RATIONALE: College Newspaper 1,831,649.80
 8.72 percent of the media budget was allocated for college newspapers. This category is most effective at reaching the college students who comprise
 60 percent of our target. It is estimated that nearly 95 percent of college students read their school newspapers and that there is almost no other print
 competitor on college campuses. We chose universities and colleges with the highest enrollment and attempted to reach at least one school in most states.
 The placements will coincide with various IMC events happening on and around the respective campuses. In total, we chose to advertise in 50 college
 newspapers with 20 full-page, four-color ads.

                                                                                                                                                                18
MEDIA PLAN
 College Newspapers
     SCHOOL/ LOCATION OF CAMPUS                            DMA                     ENROLLMENT   COST/INSERT   INSERTIONS   TOTAL
     Arizona State University - Tempe, AZ                  Phoenix, AZ             53,298       $2,031.00     20           $40,620.00
     Auburn University - Auburn, AL                        Montgomery, AL          24,602       $1,722.00     20           $34,440.00
     Brigham Young University - Salt Lake City, UT         Salt Lake City, UT      35,000       $615.00       20           $12,300.00
     California State University - Fullerton, CA           Los Angeles, CA         37,765       $1,834.80     20           $36,696.00
     California State University - Long Beach, CA          Los Angeles, CA         34,715       $1,620.00     20           $32,400.00
     Colorado State University - Fort Collins, CO          Denver, CO              25,000       $976.00       20           $19,520.00
     Florida International University - Miami, FL          Miami, FL               39,000       $1,161.76     20           $23,235.20
     Florida State University - Tallahassee, FL            Tallahassee, FL         39,136       $2,588.00     20           $51,760.00
     George Mason University - Fairfax, VA                 Washington, DC          30,714       $1,024.00     20           $20,480.00
     Indiana University - Bloomington, IN                  Indianapolis, IN        38,990       $2,884.32     20           $57,686.40
     Iowa State University - Ames, IA                      Des Moines, IA          28,000       $1,974.00     20           $39,480.00
     Kansas State University - Manhattan, KS               Topeka, KS              23,000       $2,067.00     20           $41,340.00
     Louisiana State University - Baton Rouge, LA          Baton Rouge, LA         28,019       $1,167.50     20           $23,350.00
     Michigan State University - East Lansing, MI          Lansing, MI             46,648       $2,288.00     20           $45,760.00
     New York University - New York City                   New York, NY            54,919       $1,692.71     20           $33,854.20
     North Carolina State University - Raleigh, NC         Raleigh-Durham, NC      31,000       $1,683.75     20           $33,675.00
     Northeastern University - Boston, MA                  Boston, MA              15,521       $1,435.00     20           $28,700.00
     Ohio State University - Columbus, OH                  Columbus, OH            53,715       $1,438.80     20           $28,776.00
     Oklahoma State University - Stillwater, OK            Oklahoma City, OK       23,844       $1,326.00     20           $26,520.00
     Pennsylvania State University - University Park, PA   Johnstown-Altoona, PA   43,998       $2,049.00     20           $40,980.00
     Portland State University - Portland, OR              Portland, OR            26,587       $1,128.40     20           $22,568.00
     Purdue University - West Lafayette, IN                Lafayette, IN           40,090       $2,474.04     20           $49,480.80
     Rutgers University - New Brunswick, NY                New York, NY            52,470       $920.00       20           $18,400.00
     University of Arizona - Tucson, AZ                    Tucson, AZ              38,680       $2,245.50     20           $44,910.00
     University of California - Los Angeles                Los Angeles, CA         39,650       $3,029.48     20           $60,589.60
     University of California - Berkeley, CA               San Francisco, CA       35,409       $2,502.00     20           $50,040.00



19
MEDIA PLAN
SCHOOL/ LOCATION OF CAMPUS                            DMA                          ENROLLMENT   COST/INSERT   INSERTIONS   TOTAL
University of Colorado - Boulder, CO                  Denver, CO                   32,191       $1,299.00     20           $25,980.00
University of Conneticut - Storrs, CT                 Hartford, CT                 29,383       $1,560.00     20           $31,200.00
University of Florida - Gainesville, FL               Gainesville, FL              50,000       $2,715.00     20           $34,300.00
University of Georgia - Athens, GA                    Atlanta, GA                  34,180       $2,256.30     20           $45,126.00
University of Illinois - Champaign, IL                Champaign, IL                41,918       $3,151.75     20           $63,035.00
University of Iowa - Cedar Rapids, IA                 Cedar Rapids, IL             30,000       $4,112.76     20           $82,255.20
University of Kansas - Lawrence, KS                   Kansas City, MO              30,102       $1,769.40     20           $35,388.00
University of Kentucky - Lexington, KY                Lexington, KY                26,913       $1,452.90     20           $29,058.00
University of Minnesota - St. Paul, MN                Minneapolis-St. Paul, MN     50,883       $1,778.60     20           $35,572.00
University of Missouri - Columbia, MO                 Jefferson City, MO           30,200       $1,180.00     20           $23,600.00
University of Nebraska - Lincoln, NE                  Lincoln, NE                  24,100       $2,215.20     20           $44,304.00
University of Nevada - Las Vegas, NV                  Las Vegas, NV                28,000       $1,560.00     20           $31,200.00
University of New Mexico - Santa Fe, NM               Santa Fe, NM                 20,864       $1,630.00     20           $32,600.00
University of North Carolina - Chapel Hill, NC        Raleigh-Durham, NC           28,567       $2,493.00     20           $49,860.00
University of South Carolina - Columbia, SC           Columbia, SC                 27,994       $1,452.12     20           $29,042.40
University of South Florida - Tampa, FL               Tampa, FL                    39,852       $1,200.00     20           $24,000.00
University of Tennessee - Knoxville, TN               Knoxville, TN                26,476       $1,656.00     20           $33,120.00
University of Texas - Austin, TX                      Austin, TX                   50,170       $3,657.16     20           $73,143.20
University of Utah - Salt Lake City, UT               Salt Lake City, UT           29,284       $2,186.00     20           $43,720.00
University of Washington - Seattle, WA                Seattle-Tacoma, WA           42,933       $1,740.00     20           $34,800.00
University of Wisconsin - Madison, WI                 Madison, WI                  42,030       $1,505.20     20           $30,104.00
University of Southern California - Los Angeles       Los Angeles, CA              33,500       $1,495.00     20           $29,900.00
Virginia Commonwealth University - Richmond, VA       Richmond-Petersburg, VA      32,000       $441.76       20           $8,835.20
Virginia Poly and State University - Blacksburg, VA   Roanoke-Lynchburg, VA        30,739       $2,197.28     20           $43,945.60
TOTAL                                                                                                                      $1,831,649.80
                                                                                 College Newspapers
                                                                                                                                           20
MEDIA PLAN
 MOBILE                                                                                  Out-Of-Home
                        GRIMPS/     # OF      # OF         COST/                                             GROSS             COST
     LOCATION                                                            COST            VEHICLE                                              MONTHS        COST
                        MONTH       AREAS     MONTHS       DEVICE                                            IMPRESSIONS       MONTH
     Cleveland, OH      682,200     10        12           $1,000.00     $120,000.00     Airport Ads         4,500,000         $37,500.00     4             $150,000.00
     Chicago, IL        1,822,918   10        12           $1,000.00     $120,000.00     Brand Baseball      50,000            $15,625.00     4             $62,500.00
     Los Angeles, CA    2,304,369   10        12           $1,000.00     $120,000.00     Bus Ads             1,000,000         $10,000.00     12            $120,000.00
     Miami, FL          1,666,666   10        12           $1,000.00     $120,000.00     Cell Phone Decals   50,000            $25,000.00     4             $100,000.00
     New York, NY       1,666,666   10        12           $1,000.00     $120,000.00     Chair Ads           50,000            $15,625.00     4             $62,500.00
     Philadelphia, PA   700,000     10        12           $1,000.00     $120,000.00     Grocery Cart Ads    400,000           $10,000.00     12            $120,000.00
     Houston, TX        1,500,000   10        12           $1,000.00     $120,000.00     Mall Kiosk Ads      7,450,000         $600,000.00 12               $720,000.00
     Atlanta, GA        916,667     10        12           $1,000.00     $120,000.00     Office Clings       1,000,000         $25,000.00     6             $150,000.00
     Boston, MA         416,667     10        12           $1,000.00     $120,000.00     Stair Ads           1,000,000         $10,000.00     12            $120,000.00
     El Paso, TX        516,000     10        12           $1,000.00     $120,000.00     Toilet Clings       1,000,000         $5,000.00      6             $30,000.00
     Las Vegas, NV      1,100,000   10        12           $1,000.00     $120,000.00     Transit Ads         1,000,000         $10,000.00     12            $120,000.00
     Milwaukee, WI      600,000     10        12           $1,000.00     $120,000.00
                                                                                         TOTAL                                                              $1,755,000.00
     Minneapolis, MN    1,266,700   10        12           $1,000.00     $120,000.00
     Tampa, FL          400,000     10        12           $1,000.00     $120,000.00
     Wichita, KS        347,000     10        12           $1,000.00     $120,000.00
     Memphis, TN        543,000     10        12           $1,000.00     $120,000.00
     TOTAL                                                               $1,920,000.00                            RATIONALE:
                                                                                                                  Out-Of-Home
      RATIONALE: Mobile $1,920,000                                                                                8.36 percent of the media budget was allocated
                                                                                                                  to out-of-home advertising, all considered to be
      9.14 percent of the media budget was allocated to mobile advertising, one of                                non-traditional placements. Keep Goin’ Strong will
      the most exciting new mediums in the U.S. today. In the selected seven DMAs,                                attract the target in an effective and creative way,
      the Keep Goin’ Strong campaign will place mobile Bluetooth devices in public                                using uncluttered mediums to invoke humor and
      places such as shopping malls, bars and transit stations.                                                   express the big idea in a creative, fresh way.

                                                                                                                                  $1,755,000
21
MEDIA PLAN
WEB Players
                                                                                 GROSS                  COST/
VEHICLE       SHOW                      LENGTH       # OF EPISODES IMPRESSIONS                 CPM                  COST
                                                                                 IMPRESSIONS            EPISODE
ABC.com       Grey's Anatomy            :15          15           200,000        800,000       $23.00   $4,600.00   $69,000.00
              Desperate Housewives      :15          15           200,000        800,000       $23.00   $4,600.00   $69,000.00
CBS.com       The Big Bang Theory       :15          15           200,000        800,000       $19.00   $3,800.00   $57,000.00
              How I Met Your Mother     :15          15           200,000        800,000       $19.00   $3,800.00   $57,000.00
CWTV.com      Gossip Girls              :15          15           200,000        800,000       $15.00   $3,000.00   $45,000.00
              Vampire Diaries           :15          8            200,000        800,000       $15.00   $3,000.00   $24,000.00
FOX.com       Family Guy                :15          15           200,000        800,000       $20.00   $4,000.00   $60,000.00
              House                     :15          15           200,000        800,000       $21.00   $4,100.00   $63,000.00
NBC.com       The Office                :15          15           200,000        800,000       $23.00   $4,600.00   $69,000.00
              Heroes                    :15          15           200,000        800,000       $17.00   $3,400.00   $51,000.00
TOTAL                                                                                                               $564,000.00




 RATIONALE: Web Players
 2.69 percent of the media budget was allocated to
 Web players. These efficient, far reaching placements
 will appear on the NBC, ABC, CBS, CWTV, and FOX
 Web sites and will be shown to viewers of the target’s
 most popular shows.
                       $564,000


                                                                                                                                  22
MEDIA PLAN
 Internet
                       IMP/                           COST/                    MOZILLA.COM               300,000   3,600,000   $8.00       $2,400.00        $28,800.00
     WEB PAGE                    GRIMPS      CPM                  COST
                       MONTH                          MONTH                    ESPN.COM                  300,000   3,600,000   $8.00       $2,400.00        $28,800.00
     GOOGLE.COM        300,000   3,600,000   $10.00   $3,000.00   $36,000.00   BANKOFAMERICA.COM         300,000   3,600,000   $8.00       $2,400.00        $28,800.00
     YAHOO.COM         300,000   3,600,000   $10.00   $3,000.00   $36,000.00   ATT.COM                   300,000   3,600,000   $8.00       $2,400.00        $28,800.00
     YOUTUBE.COM       300,000   3,600,000   $10.00   $3,000.00   $36,000.00   IMDB.COM                  300,000   3,600,000   $8.00       $2,400.00        $28,800.00
     FACEBOOK.COM      300,000   3,600,000   $10.00   $3,000.00   $36,000.00   ANSWERS.COM               300,000   3,600,000   $8.00       $2,400.00        $28,800.00
     MSN.COM           300,000   3,600,000   $10.00   $3,000.00   $36,000.00   LINKEDIN.COM              300,000   3,600,000   $8.00       $2,400.00        $28,800.00
     LIVE.COM          300,000   3,600,000   $10.00   $3,000.00   $36,000.00   CHASE.COM                 300,000   3,600,000   $8.00       $2,400.00        $28,800.00
     WIKIPEDIA.ORG     300,000   3,600,000   $10.00   $3,000.00   $36,000.00   PHOTOBUCKET.COM           300,000   3,600,000   $8.00       $2,400.00        $28,800.00
     MYSPACE.COM       300,000   3,600,000   $10.00   $3,000.00   $36,000.00   MYWEBSEARCH.COM           300,000   3,600,000   $8.00       $2,400.00        $28,800.00
     BING.COM          300,000   3,600,000   $10.00   $3,000.00   $36,000.00   PAYPAL.COM                300,000   3,600,000   $7.25       $2,175.00        $26,100.00
     AOL.COM           300,000   3,600,000   $10.00   $3,000.00   $36,000.00   TWITTER.COM               300,000   3,600,000   $7.25       $2,175.00        $26,100.00
     MICROSOFT.COM     300,000   3,600,000   $10.00   $3,000.00   $36,000.00   CNN.COM                   300,000   3,600,000   $7.25       $2,175.00        $26,100.00
     AMAZON.COM        300,000   3,600,000   $9.25    $2,775.00   $33,300.00   CNET.COM                  300,000   3,600,000   $7.25       $2,175.00        $26,100.00
     BLOGGER.COM       300,000   3,600,000   $9.25    $2,775.00   $33,300.00   YELLOWPAGES.COM           300,000   3,600,000   $7.25       $2,175.00        $26,100.00
     EBAY.COM          300,000   3,600,000   $9.25    $2,775.00   $33,300.00   M-W.COM                   300,000   3,600,000   $7.25       $2,175.00        $26,100.00
     ASK.COM           300,000   3,600,000   $9.25    $2,775.00   $33,300.00   VERIZONWIRELESS.COM       300,000   3,600,000   $7.25       $2,175.00        $26,100.00
     WIKIANSWERS.COM   300,000   3,600,000   $9.25    $2,775.00   $33,300.00   CAREERBUILDER.COM         300,000   3,600,000   $7.25       $2,175.00        $26,100.00
     CRAIGSLIST.ORG    300,000   3,600,000   $9.25    $2,775.00   $33,300.00   BBC.CO.UK                 300,000   3,600,000   $7.25       $2,175.00        $26,100.00
     GO.COM            300,000   3,600,000   $9.25    $2,775.00   $33,300.00   COMCAST.NET               300,000   3,600,000   $7.25       $2,175.00        $26,100.00
     ABOUT.COM         300,000   3,600,000   $9.25    $2,775.00   $33,300.00   TOTAL                                                                        $1,563,300.00
     EHOW.COM          300,000   3,600,000   $8.75    $2,775.00   $31,500.00
     MAPQUEST.COM      300,000   3,600,000   $9.25    $2,775.00   $33,300.00
     APPLE.COM         300,000   3,600,000   $9.25    $2,775.00   $33,300.00


                                                                               Search engine
     ADOBE.COM         300,000   3,600,000   $9.25    $2,775.00   $33,300.00
     WORDPRESS.COM     300,000   3,600,000   $8.75    $2,625.00   $31,500.00
     MSNBC.COM         300,000   3,600,000   $8.75    $2,625.00   $31,500.00    VEHICLE          COST/CLICK         MONTHS       CLICKS                COST
     WALMART.COM       300,000   3,600,000   $8.75    $2,625.00   $31,500.00    GOOGLE           $0.40              12           150,000               $720,000.00
     TARGET.COM        300,000   3,600,000   $8.75    $2,625.00   $31,500.00    YAHOO!           $0.40              12           150,000               $720,000.00
     FLICKR.COM        300,000   3,600,000   $8.75    $2,625.00   $31,500.00    MSN              $0.40              12           150,000               $720,000.00
     DICTIONARY.COM    300,000   3,600,000   $8.75    $2,625.00   $31,500.00    TOTAL                                                                  $2,160,000.00
     WEATHER.COM       300,000   3,600,000   $8.75    $2,625.00   $31,500.00

23
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The book final

  • 1. KEEP GOIN’ STRONG STATEFARMSTRONG.COM
  • 2. TABLE OF CONTENTS 2 Executive Summary Shark Attack has the intense and fierce ability 3 Situation Analysis to shred the competition and make your target their main focus of attack. Starting with 11 Primary Research its creative growl, the media will bite into the 12 Problems & Opportunities target with its sharp teeth and chomp at the audience with effective IMC promotions. The 13 Creative Strategy attack will be backed with a strong stomach 15 Media Plan for research that can easily digest the target. 25 Creative Executions What’s your plan for attack? 32 IMC 39 Budget Breakdown THE ATTACK TEAM RESEARCH DIRECTOR MEDIA DIRECTOR Amanda Takacs Nicole Rehling THE STOMACH THE TEETH CAMPAIGN DIRECTOR CREATIVE DIRECTOR IMC DIRECTOR Cory Schneider Marty Filogamo Nicole Botich THE MOUTH THE GROWL THE CHOMP 1
  • 3. EXECUTIVE SUMMARY THE CASE have been able to reach independent young adults through their advertising campaigns, resulting in measurable success. include mobile ads, web player ads, Internet media site ads, mall kiosk placements, stair wraps, grocery cart ads and However, these competitors are catering increasingly to an airport baggage claim clings. Shark Attack will use these non- State Farm Insurance is the nation’s leading property and impersonal world and often offer auto insurance exclusively. traditional methods to their fullest to reach the target market, casualty insurance company. To maintain its current position, This is an opportunity for State Farm Insurance and for our as they are an active group who consumes many mediums. State Farm Insurance must target independent young adults, campaign. Overall, through primary research, Shark Attack Placements will heavy-up in the states with the highest aged 18-25. Currently, State Farm Insurance is positioned found that it is important to contemporize and build the brand populations of 18-25-year-olds: California, Florida, Illinois, as a traditional, old-fashioned insurance company to the 17 to attract our target market and to continue upstaging the New York, Ohio, Pennsylvania and Texas. million independent young adults within the U.S. population. competition. In addition, State Farm’s established customer base is aging, In order to create buzz and more interaction between directing the company to choose young adults as the primary State Farm and the target market, Shark Attack will create target and remain on top of the insurance market. Shark Attack will effectively and efficiently use media placements, creative REsults promotional events throughout the yearlong campaign to create a connection between the two groups. The promotions executions and promotional events to create a fully integrated Shark Attack has allocated $21 million of the $40 million budget will incorporate State Farm in typical everyday and night marketing communications plan that will contemporize the to media, using approximately $11.5 million on traditional activities for those in the 18-25-year-old target, as well as large brand image for State Farm Insurance. placements and $8 million on non-traditional placements. $16 events in American culture (i.e. New Years Eve in Times Square, million of the campaign budget will be spent on IMC, with the the college BCS national championship, March Madness, etc.). RESEARCH remaining $3 million allocated for production and contingency funds. After conducting research, analyzing the market and Through our primary research, Shark Attack found that the testing its concepts, Shark Attack believes that it has created an effective campaign that will connect with the target market. THE SOLUTION target is independent young adults, aged 18-25, who are Although the company’s existing customer base in aging, responsible for 50 percent or more of their living expenses. The target perceives State Farm Insurance as an outdated, State Farm Insurance still has the resources and the drive to expensive brand for older adults. They perceive State Farm’s Our campaign will be most visible in the seven major U.S. provide both support and reliable insurance coverage to all cities which have the largest population of this target market. agent-based insurance model as a luxury they cannot afford. of their current and future policyholders. Through creative The Keep Goin’ Strong campaign will reposition State Farm Research showed that the primary target is both racially media placements, State Farm Insurance will be consistently and ethnically diverse, as well as being goal-oriented and Insurance as a humorous and contemporary brand for young reinforced as a modern and approachable brand, allowing the adults while achieving top-of-mind awareness. The tagline, technologically advanced. Through research, it was also target to know that no matter what life throws at them, State discovered that the target is price-sensitive, as over 60 percent Keep Goin’ Strong, means that no matter what happens in Farm Insurance will help them to Keep Goin’ Strong. life, State Farm and its agents will be there to support their of the target’s members are in college and approximately 56 percent are working full-time. The secondary target is “legacy” clients during weak moments. State Farm Insurance will give the target reassurance that they are taken care of by someone young adults, those whose parents have State Farm Insurance. By researching the primary and secondary target markets, we Executions, who is experienced and understands. The existing Good also identified a tertiary target: parents. Parents can be an large Neighbor slogan will remain in our ads, under the State Farm influence on the target when it is time for independent young Media and IMC logo, to maintain the original branding and act as an extension to the money that the client has already spent promoting adults to select an insurance company. it. The target will find the creative executions hilarious but Shark attack will accomplish the Keep Goin’ Strong campaign Shark Attack’s primary research showed that State Farm, straightforward, reinforcing the brand image. By creating a through both traditional and non-traditional media to reach the compared to its competitors, is behind in grabbing this target’s modern and humorous campaign, Shark Attack will capture target market. Traditional media methods include collegiate attention. State Farm’s key competitors are Progressive, the target market and as a result, be successful. newspapers, network television, radio, national magazines Allstate and GEICO Insurance companies. The competitors and out-of-home placements. Non-traditional media choices 2
  • 4. SITUATION ANALYSIS COMPANY Background State Farm Insurance was founded in 1922 by retired farmer and insurance salesman The State Farm founder’s philosophy of insurance coverage at a fair price, coupled with George Jacob “G.J.” Mecherle. His motivation for starting the company was simple: fair claim settlement, remains the cornerstone of the client’s success. His original vision he was intent on treating his customers with fairness and honesty. and values still guide State Farm’s current mission. Mecherle knew farmers drove less and had fewer accidents than city folks and Today, State Farm insures more cars than any other insurer in North America. They are thought they should pay less for automobile insurance. The insurance company G.J. also the leading U.S. home insurer. More than 17,000 agents and 68,000 employees worked for didn’t agree — and suggested he start his own company. serve the company’s 75 million policies in the United States and Canada. State Farm also provides their customers with a wide array of financial products and services to That’s exactly what he did. help them manage today and prepare for tomorrow. 1924 1942 Indiana Farm Bureau and State Farm sign State Farm Insurance becomes the a contract making the Indiana Farm Bureau 1922 the first state agent for State Farm. largest automobile insurer in the U.S. Jacob Mecherle started an insurance company that created fairness for individual customers. 18% STATE FARM SALES AND MARKET SHARE 11.1% ALLSTATE As of 2006, the auto insurance industry in the United States totaled over $162 billion. In the auto insurance market, the top 10 American insurance companies accumulated OTHER 52% 64% of the market share, the highest of which is State Farm. The company is currently 7.3% ranked 31st in the Fortune 500, a hierarchical listing of American companies by revenue, PROGRESSIVE and insures more cars and homes in the U.S. than any other insurer. In 2007, State Farm 6.7% Insurance earned a revenue of nearly $62 billion. GEICO 4.9% FARMERS 3
  • 5. SITUATION ANALYSIS Political and Legal Factors IT’S THE LAW Car insurance is regulated at the state level, with each state enforcing its own guidelines concerning the minimum car insurance coverage that is required. All states have laws regarding the minimum amount of liability coverage a driver must have in order to legally drive their vehicle, though it may be considered wise to carry additional coverage. Virginia residents, for example, are required by law to pay the state $500 annually if they choose not to carry liability insurance on a particular vehicle. New Hampshire, on the other hand, is one of few states that does not require motorists to carry liability insurance. The penalties that await motorists who choose not to carry auto insurance vary. It’s not uncommon for such a motorist to be subject to a hefty fine, license suspension, license expulsion or jail time. Usually, the minimum required insurance plan, by law, is third party insurance to protect the victim of an accident against being financially responsible for loss, damage or injury caused by a vehicle. 2006 State Farm was the first property and 1965 1971 casualty insurer ever to help promote State Farm’s well-known jingle, Like a Good a major feature film — the Disney/ State Farm began marketing health insurance. Neighbor, State Farm is There, was written by Pixar animated feature film, CARS. American songwriter Barry Manilow. PAST Themes In an effort to attract an emerging and relatively untapped market, State Farm MAJOR TRENDS Insurance initiated a young adult task force. The result was the 2006 Now What? The increase in Internet usage has changed the insurance industry tremendously. campaign, which featured a series of provocative and thought-provoking situations The direct-insurer model, which is exhibited by companies such as GEICO, that left viewers in a position to make a decision. Overall, the campaign improved Progressive and Esurnace, have an edge in this area because they cater to the young adults’ attitudes toward insurance understanding, brand recognition and ever-prevalent and growing trend of online insurance purchasing. Along the same favorability toward State Farm Insurance. Additionally, a significant increase in the lines, the insurance industry has become much more aggressive over the past few number of new policies written among the target group took place. State Farm’s years — tough economic times have made affordability a top priority, particularly current promotional budget is $40 million. among the target audience. 4
  • 6. SITUATION ANALYSIS BRAND EVALUATION DISTRIBUTION There are a number of companies within the State BRAND importance Farm Insurance Group, including the State Farm Mutual Automobile Insurance Company, the State Farm Life Insurance Company, the State Farm Fire and Casualty and uniqueness Company and the State Farm Bank. Through these companies, State Farm provides for the insurance needs of current clients through an agent-based model with 16,000 agents and 76,500 employees throughout the “ State Farm Insurance and its agents takes their roles as “good neighbors” within their community very seriously. 50 states and Canada. This type of business structure To a State Farm agent, this means being there when gives State Farm’s customers the personal attention and and where they’re needed, support their customers cooperation they desire. Because of this, all State Farm and following through on what they’ve promised. State We are people who companies take their Like a Good Neighbor, State Farm Farm Insurance commits to each protect and serve each is There slogan seriously, living the slogan as a lifestyle policyholder. The client has built strong bonds and a make it our business to rather than just viewing as a motto. tradition of success by ensuring these promises are kept. be like a good neighbor; State Farm insurance is sold in all 50 states with 16,000 who built a premier agents and 76,500 employees throughout the U.S. and company by selling Canada. Customer Satisfaction Because of their dedication to neighborly service, State Farm’s customer satisfaction is highest among all U.S. insurance agencies. According to the American Customer Service Index (ACSI), State “ and keeping promises through our marketing partnership; who bring diverse talents and experiences to our work of serving the State Consumer perception When compared to competing insurance companies, Farm Insurance ranks first for customer satisfaction for Farm customer. State Farm Insurance is losing the battle for young adults’ property and casualty Insurance with a score of 81 on attention. While they view State Farm Insurance as being a 100-point scale. State Farm also ranked second for an old-fashioned and outdated brand, members of our automobile insurance, with a score of 80, tying GEICO. target are attracted to contemporary brands, such as GEICO and Progressive, because of their humorous advertising and creative executions. To defend its top position, State Farm Insurance will have to contemporize its brand by keeping in touch with the lifestyles of young adults. 5
  • 7. SITUATION ANALYSIS “ BRAND PERSONALITY Our success is built on a foundation of shared State Farm’s current brand personality is perceived as being conservative and traditional, typically appealing values — quality service and relationships, to older generations as a reliable choice for insurance mutual trust, integrity and financial strength. products. Through the Keep Goin’ Strong campaign, State Farm’s brand will become a modern and more Our vision for the future is to be the approachable brand to those in any age group, primarily to the 18-25-year-old demographic. State Farm Insurance will become more like a friend than a service to current and prospective customers alike. “ customer’s first and best choice in the products and services we provide. We will continue to be the leader in the insurance industry and we will become a leader in the financial services arena. Our customers’ needs will determine our path. Our values will guide us. Product Evaluation ESTATE PLANNING State Farm Insurance is currently the number one choice among Americans for both automobile and renters insurance. Running business under the agent-based insurance model helps State YOUR SAVINGS, HOME OWNERSHIP, RETIREMENT, Farm Insurance maintain their Good Neighbor mind set, as their agents have the ability to provide guidance and support through LEGACY EDUCATION PLANNING the insurance purchase process. In addition, State Farm’s agent- based model provides consumers with a reliable agent with whom YOUR DREAMS they can have as a constant contact for any concerns, questions PROPERTY/LIABILITY, PREMATURE and claims submissions. When providing service to their clients, DEATH, DISABILITY, HEALTH CARE, State Farm’s agents believe it’s all about the client: their needs, LONG-TERM CARE, EMERGENCY YOUR RISKS their priorities, their values and their future. SAVINGS, DEBT MANAGEMENT, BUSINESS OWNERS 6
  • 8. SITUATION ANALYSIS TARGET MARKET PSYCHOGRAPHICS The primary target is goal-oriented, more ethnically diverse and more DEMOGRAPHICS fluent with technology than prior generations. They believe that everyone has an individual voice but are skeptical when it comes to placing their trust in a product or service. The target uses a variety of channels to conduct During the campaign year, there will be approximately 17 million independent young business for their insurance needs. Members prefer accessing price quotes adults, paying 50 percent or more of their living expenses and living in the U.S. The online or over the phone. For advisory issues, members of the target often target is both racially and ethnically diverse; one in three considering themselves a prefer to request help in person or over the phone. minority. More than 60 percent of the target consists of college students and 56 percent of them are also working full-time. Known as the “Millennial Generation,” the target Independent young adults are distinguished from dependents by their is part of the largest age group since the “Baby Boomers.” There are over 11 million autonomy and decision making on both insurance and financial services households that currently include a young adult and an additional 3.3 million where a products. Almost three times as many young adults who pay for their own young adult is considered to be the head of the household. The secondary targets are insurance have switched providers compared to those whose parents pay “legacy” young adults — those whose parents are State Farm Insurance customers. The for their insurance. Those who are loyal to State Farm Insurance because of tertiary targets are parents of the primary, as they are both a direct and indirect influence their parents are called “legacy” young adults. This group is most likely to on the selection of an insurance company. return to using State Farm for the security known from parents’ experience. Young adults are on a budget and are fiscally conscious. This target worries about reducing debt and their careers started. They tend to GEOGRAPHICS believe that nothing bad will ever happen to them. This target wants to be considered adults, yet most have limited experiences. This will be a nationally distributed campaign with They are Internet-savvy and prefer to take special consideration given to the states with the care of most things online. highest populations of the 18-25-year-olds: California, Florida, Illinois, New York, Ohio, Pennsylvania and Texas. State Farm Insurance is licensed to sell insurance products in all 50 U.S. states and the Canadian provinces of Alberta, New Brunswick and Ontario. 7
  • 9. SITUATION ANALYSIS BRAND CAPSULES THE HIGH SCHOOL GRADUATE THE COLLEGE STUDENT Alison is 18 years old and lives with her parents. She is about Justin is a 21-year-old student — part of the 60 percent of to graduate high school and is not interested in learning young adults that attends college. He also works a part- about spending money to prepare for the unexpected. Alison time job. He is price-sensitive, budgeting his money in wants to be considered an adult, yet she is unfamiliar with an organized and conscious manner. He is worried about many of life’s experiences. Her parents are ready to let her accumulating debt paying off his student loans when he experience this desired independence when she begins to graduates. attend college and rent her own apartment, though Alison will then be responsible for more than 50 percent of her living expenses. THE Non-traditional STUDENT THE “LEGACY” CUSTOMER Jessica is a 24-year-old nontraditional college student who is only halfway though her college program. She has Brett is a 21-year-old college senior whose parents are insured by been working full-time since high school to pay for her State Farm. When he graduates college, he will be more loyal to college education. Jessica is looking into purchasing her State Farm Insurance than new prospect independents. He will own insurance policy, since she is no longer covered by her choose State Farm over a new insurance provider, because his parents’ plan. A local State Farm agent could provide her parents have had positive experiences with State Farm. with the assistance and security she needs, especially since she does not have a solid understanding of insurance features. THE FULL-TIME WORKER THE WORKING PROFESSIONAL Ronnie is 20 years old and is one of the 17 million independent young adults responsible for 50 percent or more of their living Ann is 24 years old and is the head of her household; one expenses. He has developed his mother’s autonomy and of 3.3 million in the U.S. population of young adults. She decision making with insurance and financial services. Ronnie graduated from college and has a sustainable job, is reducing moved out of his mother’s house when his graduated high school loan debt and maintaining a successful career. She desires and got a full-time job. He possesses the working knowledge of the quality of trust and support for her family and is unsure what he needs to be on his own and is working towards buying of which company would be the best fit. a new vehicle. 8
  • 10. SITUATION ANALYSIS COMPETITIVE Allstate Geico ANALYSIS BACKGROUND Founded in 1931, Allstate is the largest publicly held personal insurance line in the U.S. Allstate provides its products to their customers in a BACKGROUND Originally the Government Employees Insurance Company, founders Leo and Lillian Goodwin set out to establish an insurance variety of ways including agents, banks, and brokers. In company for U.S. government and military total, Allstate sells 13 different lines of insurance including personnel. From its inception in 1936, GEICO has auto, life, and commercial as well as offers services such become the fastest-growing major auto insurance as banking, retirement and investment options for its provider in the country. In 1995, Warren Buffet and clients. his investment firm, Berkshire Hathaway, purchased GEICO stock, making it one of its subsidiaries. This POSITIONING Allstate’s tagline You’re in Good transition had a profound increase on the amount of Hands with Allstate gives a very strong platform for GEICO’s advertising, resulting in a large period of its creative strategy. Its current campaign, Our Stand, growth for the company. features commercials lead by their spokesperson in real life events ranging from high school dances to football POSITIONING GEICO often uses humor as ESURANCE tailgating. The commercials feature straightforward messages emphasizing the benefits Allstate offers to its a prominent force behind their advertising. Past campaigns have used 3-D animation in the form of Founded in 1998 under the name Sierra Holdings customers and the advantages and savings individuals the GEICO gecko and the GEICO cavemen, using Inc., Esurance began accepting auto insurance can reap by switching insurance providers. the tagline GEICO: So Easy a Caveman Could Do It. polices in 1999. Though it is now a private insurer Many of the early advertisements operated under under the White Mountains Insurance Group, the STRENGTHS Allstate is currently the second leading the tagline 15 Minutes Could Save You 15 percent or San Francisco-based company employs roughly provider of personal property and casualty insurance in More on Car Insurance. 1,700 workers. In 2008, revenue totaled $826 million the nation. As a result, Allstate holds a strong market after having spent only $120 million on advertising share within the industry. Recently, the company’s STRENGTHS GEICO offers a wide range the previous year. Esurance is currently licensed to financial ratings have increased, causing the company’s of products to its customers including auto, life, sell insurance in 30 U.S. states. Erin Esurance, their credibility to grow within consumers’ minds. Along with overseas, motorcycle, home owner, renters, mobile animated superhero spokeswoman, was designed to their established credibility, Allstate offers its clients home, flood, umbrella, and boat insurance as well as contrast an industry that is largely perceived to be a wide selection of products and services which has emergency roadside assistance. This diversification dry and intimidating. The company also positions expanded their customer reach. helps the insurance provider appeal to a wide group themselves as being more environmentally conscious of potential consumers. than their competitors by making statements and WEAKNESSES Allstate’s decision to add additional payments available online. products to their line has produced negative side WEAKNESSES Using humor in its advertisements effects, lessening the profits of the company as a whole. has gained brand recognition for GEICO, but the This, paired with the downturn in the economy, in company’s credibility has not been reinforced. The 2008, resulted in a decrease in Allstate’s policies. With young and fun feel of GEICO may not appeal to all premiums decreasing, the available budget left for consumers. As a result, they are isolating a segment advertising is threatened. of their market through this approach. 9
  • 11. SITUATION ANALYSIS progressive Safe Auto BACKGROUND Progressive Mutual Insurance Company was Safe Auto was founded in 1993 and is headquartered founded in 1937 by Joseph Lewis and Jack Green. Almost two in Columbus, Ohio. The company currently serves decades later, in 1958, they added Progressive Casualty Company to 14 states and its average ad spending of $60 million add auto insurance to their products. The Progressive Corporation has made the company’s jingle infamous among was formed in 1965 and the company went public in 1971. television audiences everywhere. Currently, Safe Auto’s marketing has been left in the hands of a POSITIONING Progressive also uses humor as a foundation for fictional Safe Auto worker, Justin Case. Its 1,100 their advertising strategy. Progressive’s spokeswoman, Flo, is a bold, employees man the phones 24 hours daily to help fun-loving personality who dominates their commercials. During fulfill the company’s consumer promise to be kept these spots, Progressive gives shape to a virtual shopping experience Legal for Less. where the consumer is in charge, emphasizing the customization options available and the affordability that Progressive can offer. Progressive’s tagline, Now That’s Progressive, highlights their direct- insurer model which has easy accessibility for consumers. STRENGTHS Progressive is widely accepted by consumers, which gives the company a strong position within the auto insurance industry. Progressive has also lead the market in motorcycle insurance since 1998. Having strong positions in both markets is a testament to Progressive’s brand recognition and customer loyalty. In 2008, Progressive received a patent for the new approach they invented to handle automotive insurance claims. Customers can now bring their vehicles to one of Progressive’s claim sites and pick up a rental vehicle while the representative writes up a quote, schedules repairs Nationwide and handles the business end of the insurance claim for the client. With annual revenue of approximately $21 billion This process has increased Progressive’s customer satisfaction and in 2008, Columbus, Ohio’s Nationwide Mutual overall productivity, giving them a positive stock in consumers minds. Insurance Company began as the Ohio Farm Bureau Federation. Nationwide is heavily involved WEAKNESSES Due to its size, Progressive has difficulty with the world of American sports. They are competing with larger businesses. This disadvantage, paired with the accredited with bringing Columbus’ NHL franchise poor performance the company showed over the course of 2008, to town and, afterward, becoming a title sponsor on may potentially hurt the company’s credibility in the minds of its the NASCAR Nationwide Series. Nationwide spent consumers. Lower revenues will eventually decrease the available a total of $80 million on advertising in 2007, making advertising budget. them a formidable competitor in the field of agent- based insurers. 10
  • 12. PRIMARY RESEARCH FOCUS GROUPS SURVEYS Shark Attack conducted five focus groups with participants, aged 18-25, to learn more about their We collected 100 surveys from within the target to gain a perceptions of State Farm and the insurance industry. Some individuals were knowledgeable about the greater insight of their media consumption, current perceptions basics of insurance, while others did not have any experience with insurance. Many participants seemed of State Farm Insurance and their competitors. We learned to rate the top insurance companies by their familiarity with their advertising. Quality and price was more that when advertising auto important for those who a had a vague knowledge of insurance, usually purchasing insurance insurance, evening television after conducting research. The participants in our focus groups did however agree that SURVEYS — 100 and promotional giveaways or auto insurance is necessary; though, a few people believed renters insurance was not. FOCUS GROUPS — 5 sponsorships were the most ONE-ON-ONE INTE RVIEWS — 25 influential. The most surprising AGENT INTERVIEW S—3 finding of our survey concerned One-on-one Interviews CONCEPT TESTS — 2 the preferred structure of managing auto insurance. 52 percent of respondents preferred By conducting 25 one-on-one interviews, our team was able to gain a greater insight of the target’s agent-based models, with a local agent managing the account. current perceptions of State Farm and their familiarity of the insurance industry as a whole. Looking Only 46 percent of the surveyed target preferred the direct-based outside the target market, Shark Attack also managed to interview career-oriented males and females model, managing their account strictly online or over the phone. aged 23-28, who may have graduated from college, started a career, and/or family, in order to obtain information about how they purchased insurance and their thought process while doing so. Brand perception AGENT INTERVIEWS RECOGNIZABLE FUN/FRESH EXPERIENCED We conducted three agent interviews to complete our primary research. These interviews were done in an effort to collect further information about the insurance industry, giving us an additional perspective to take into account for our campaign. Learning more about the daily business that is conducted between State Farm Insurance agents and their clients helped our team conceptualize effective advertising. PRACTICAL TRUSTWORTHY CONCEPT TESTs To gauge the target’s response, Shark Attack held concept tests within the various stages of campaign STRUCTURED AFFORDABLE development. The first phase of concept testing was done while the creative executions were still being constructed. Using the groups’ feedback, our team made the appropriate revisions and used several participants’ suggestions in further executions. Testing was also completed once the executions were CUSTOMIZABLE PREMIUM more concrete, again the suggestions were taken into consideration and final corrections were made. STATE FARM ALLSTATE GEICO PROGRESSIVE 11
  • 13. PROBLEMS & OPPORTUNITIES PROBLEMS OPPORTUNITIES Target market is extremely price sensitive. Persuade the target to take action and visit StateFarmStrong.com, where the available bundle packages and discounts will be featured. State Farm lacks awareness and recognition within the target market. Highlight State Farm’s experience and history while implementing a humorous and straightforward advertising campaign that appeals to the target market. Though agent-based and direct-based model are equally appealing, it is Disseminate through StateFarmStrong.com that State Farm Insurance agents perceived that agent-based insurance models are at a disadvantage because are available over the course of nights and weekends, altering the current of the inaccessibility of agents during nights and weekends. perception. Statistics show that half of young adults switch insurance providers within the State Farm Insurance can increase the awareness of agent-based insurance first year due to dissatisfaction with service, specifically because the way they benefits and how they strive for their clients not to feel like a number. were treated and for price concerns. StateFarmStrong.com will give the target information and different options which potential policy holders can browse through. The target is not interested in learning about or researching insurance options. State Farm Insurance has the ability to educate its target in an effective manner that will hopefully build brand recognition and provide a connection between State Farm Insurance and new clients. State Farm’s current client base is aging at an accelerated rate. With Keep Goin’ Strong, start to target current 18-25-year-olds, “Echo Boomers,” who comprise the largest generation since the “Baby Boomers”. The target has a skeptical perception about where to place their trust in Present information to the target rather than make it their responsibility to products or services concerning insurance providers. conduct research. Many insurance companies target the Caucasian majority, when in actuality Construct creative executions which connect with individuals from any 37 percent of the target population is not actually Caucasian. Multicultural cultural or ethnic background. young adults comprise more of the population which State Farm Insurance is targeting. State Farm’s key competitors offer very similar services and coverage lines. Utilize advertising media that reduces the impact of clutter by competitors’ clutter. Many members of the target are reluctant to ask for advice, especially Create a campaign that is friendly and welcoming to new policy holders. concerning financial problems. 12
  • 14. CREATIVE STRATEGY BUSINESS OBJECTIVES TARGET MARKET State Farm’s overall goal is to gain a fair share of the young adult market by changing the DEMOGRAPHICS Keep Goin’ Strong’s primary target are the perception of State Farm among young adults, which will then lead to consideration of the approximately 17 million independent young adults currently living in the U.S. brand and purchase. This group extremely diverse — they are more accepting of other cultures and lifestyles than the generations before them and are composed of a wider • To increase consumption and knowledge of State Farm auto and renters insurance within range of ethnicities. 60 percent of the target identify themselves as college the target 18-25-year-olds. students and 56 percent claim to work full-time. Children of parents who • To contemporize State Farm Insurance and make the company top-of-mind for are already State Farm Insurance customers are our secondary target, called 18-25-year-olds. “legacies.” These parents have a great deal of influence on the purchase of • To increase brand recognition and preference over the competition. insurance, making them Keep Goin’ Strong’s tertiary target. • To increase trust and loyalty with current and prospective policy holders. • To establish State Farm as the preferred insurance company and maintain its position as PSYCHOGRAPHICS The primary target is driven and technology- the number one auto insurance provider. savvy. Their youthful demeanor has made them skeptical about putting too much trust in a particular company. Use of student loans and limited income has forced many members of the target to spend their earnings very conservatively and insurance is typically brushed to the bottom of their priority list. As a result, it’s difficult to engage the target in a discussion about ADVERTISING OBJECTIVES preparing for the unexpected, especially when money is involved. The target uses a vary of media channels on a daily basis. Over-saturation State Farm’s advertising goal is to develop a fully integrated marketing communications and clutter in advertising has become a serious concern when given the program to change the perception of State Farm. challenge of reaching these individuals. Both the primary and secondary target prefer to conduct insurance-related business online or over the phone. • COGNITIVE To gain interest and better educate the target about auto and renters When problems arise, however, they are more prone to call a representative insurance. than dig for answers on untrusted Web sites. • AFFECTIVE To convince the target that State Farm Insurance is not only an insurance company, but also a straightforward friend who will encourage consumers to persevere. GEOGRAPHICS Keep Goin’ Strong is a national campaign with an • CONATIVE To stimulate the target to choose State Farm Insurance as their auto and increased emphasis on seven DMAs in California, Florida, Illinois, New York, renters insurance provider and to eventually become loyal brand consumers. Ohio, Pennsylvania and Texas. These DMAs have the highest populations of independent young adults (aged 18-25). State Farm Insurance is one of few insurers licensed to sell products and cover their clients in all 50 U.S. states. CONSUMER PROMISE Life happens. State farm insurance will be there through it all with the friendly service and security you deserve. With the agent-based program, you are bound to Keep Goin’ Strong. 13
  • 15. CREATIVE STRATEGY COMPETITIVE FRAME POSITIONING KEY COMPETITORS GEICO, Allstate and Progressive State Farm Insurance is currently positioned as the number one auto and SECONDARY COMPETITORS Esurance, Nationwide and Safe Auto renters insurance company. While most young adults describe State Farm Insurance as a company, they often see it as an old-fashioned, expensive State Farm currently leads the market in auto and renters insurance. When it comes to brand for more established adults. These perceptions can make young the brand’s perception among young adults, however, State Farm Insurance, lags behind adults feel that State Farm Insurance is out of touch with people their its competitors. Several competitors take advantage of direct-insurer models, which base age and, therefore, not an viable insurance option. The desired consumer their customer support around call centers the Internet. This indirect approach appeals perception is to be a top-of-mind consideration, to be friendly and to be to our technology-savvy target. State Farm, on the other hand, along with one of its top straightforward. competitors, Allstate, believe that agents are an essential part of insurance experience. These insurance companies practice agent-based management models and focus on Primary research showed that young adults perceive State Farm Insurance offering a more direct approach by using agents to answer questions and provide advice. to be dated and incompatible with their lifestyle. The target does not understand the value and guidance that an agent can provide and is hesitant to initiate personal contact when they are used to doing business in more impersonal ways. Therefore, positioning State Farm Insurance as a contemporary and upbeat insurance company will create awareness and TONE AND MANNER amusement. Keep Goin’ Strong will make State Farm Insurance a top-of- mind option for young adults. Executions are shocking and humorous but followed by a strong and uplifting message: Keep Goin’ Strong. Applying this concepts to the target market will change the perception of State Farm Insurance among young adults and position the brand in the top of the consumer’s mind The BIG IDEA Through life’s big and small moments, everyone Claim Support needs a good neighbor. Whether it’s being hit in the face, falling down the stairs or your first little • Be introduced to an agent who will work with you to customize your insurance plan. fender bender, State Farm Insurance will keep • We will take care of your needs at your level and for a better value. • We can handle any problem today to keep you going strong. their customers going. State Farm supports their • Online convenience and over the phone 24 hours daily. clients during their weak moments, making them • We make it personal because we have been there. We want you to Keep Goin’ Strong. strong so that no matter what life may throw at them, State Farm help will them Keep Goin’ Strong. 14
  • 16. MEDIA PLAN OBJECTIVE STRATEGY Reach independent 18-25-year-olds, including Hispanics, African Allocate a large percentage of media spending towards non-traditional TARGET Americans and Asian Americans responsible for 50 percent or more placements that match the target’s media consumption. Our campaign of their living expenses. will pair non-traditional media placements with traditional vehicles such as college newspapers, national magazines and network television. GEOGRAPHIC Implement a national campaign that emphasizes the states that Emphasize media placements within the following states: Texas, Florida, contain the highest populations of the target markets. Illinois, New York, Ohio, Pennsylvania, and California. Pay close attention to special events and scheduled media placements SEASONALITY Create a campaign that extends from May 2010 to May 2011, within the duration of the campaign year, tailoring advertisements keeping the creative message current with each execution. accordingly. REACH AND Reach approximately 60 percent of our primary target within the first half of the campaign with an average frequency of four. Reach 30 Place advertisements in a variety of mediums in an attempt to not only FREQUENCY percent of our secondary target and 10 percent of our tertiary target obtain our target reach but also to maintain our desired frequency. by accounting for media overlap. Maintain a consistent presence throughout the duration of the SCHEDULING Buy media in a pulsing schedule, advertising in each month with an amount campaign year with a heightened emphasis during months of special during peak times. interest. CREATIVE Reach a target that has become desensitized to advertising efforts in Advertise in new and innovative outlets to effectively gain attention from over-saturated, cluttered media. our target audience. $21 million will be budgeted towards media placement with spending BUDGET Effectively allocate 53 percent of the total budget toward media broken down as such: $2 million in collegiate newspapers, $4 million in placements. Internet, $2.5 million in national magazines, $5 million in network television, $1 million in Web players and $1 million in mobile. 15
  • 17. MEDIA PLAN TELEVISION NETWORK VEHICLE LENGTH DAYPART FREQ MONTHS REACH CPP RP CPM TOTAL COST ABC Desperate Housewives :30 Primetime 8p-11p 5 9 (Sept - May) 13,951,000 $23,171.00 5.6 $9.30 $648,788.00 ABC Grey’s Anatomy :30 Primetime 8p-11p 5 9 (Sept - May) 13,795,000 $23,171.00 5.6 $9.41 $648,788.00 CBS The Big Bang Theory :30 Primetime 8p-11p 5 9 (Sept - May) 12,729,000 $23,171.00 5.8 $10.56 $671,959.00 CBS March Madness :30 Primetime 8p-11p 3 2 (March - Apr) 11,100,000 $23,171.00 6.5 $13.57 $451,834.50 NBC The Office :30 Primetime 8p-11p 5 9 (Sept - May) 5,590,000 $23,171.00 4.2 $17.41 $486,591.00 NBC Sunday Night Football :30 Primetime 8p-11p 3 5 (Sept - Jan) 21,560,000 $23,171.00 9.1 $9.78 $1,054,280.50 FOX Family Guy :30 Primetime 8p-11p 5 9 (Sept - May) 7,382,000 $23,171.00 3.7 $11.61 $428,663.50 FOX House :30 Primetime 8p-11p 5 9 (Sept - May) 3,910,000 $23,171.00 1.5 $8.89 $173,782.50 FOX World Series :30 Primetime 8p-11p 3 2 (Oct - Nov) 7,641,000 $23,171.00 5.8 $17.59 $403,175.40 THE CW America’s Next Top Model :30 Primetime 8p-11p 5 4 (May - Sept) 3,960,000 $23,171.00 1.7 $9.95 $196,953.50 THE CW Vampire Diaries :30 Primetime 8p-11p 5 9 (Sept - May) 4,113,000 $23,171.00 1.8 $10.14 $208,539.00 TOTAL $5,373,354.90 RATIONALE: Network Television $5,373,354.90 25.59 percent of the media budget was allocated to network television. By broadcasting State Farm’s Keep Goin’ Strong campaign to a nationally diverse audience, we will increase awareness within different demographics. Our vehicle selections consist of television programs that target both males and females. Network television is an excellent way to reach a large percentage of our target. These 30-second spots will run throughout the length of the campaign year to increase awareness of State Farm Insurance and to contemporize the brand. 16
  • 18. MEDIA PLAN RADIO DMA STATION FORMAT DAYPART FREQ LENGTH CUME GRPS CPP COST/SPOT AQH (%) COST Chicago WGCI-FM Urban M-F 3-7 PM 60 :30 6.5 390 $252.78 $682.50 2.7 $98,584.00 Chicago WKSC-FM CHR M-F 6-10 AM 60 :30 6.7 402 $210.64 $737.25 3.5 $84,677.00 Cleveland WENZ-FM Urban M-F 3-7 PM 60 :30 6.5 390 $252.78 $682.50 2.7 $98,584.00 Cleveland WGAR-FM Country M-F 6-10 AM 60 :30 5.9 354 $210.64 $737.25 3.5 $74,567.00 Houston KHMX-FM Hot AC M-F 6-10 AM 60 :30 3.8 228 $210.64 $737.25 3.5 $48,026.00 Houston KTHT-FM Country M-F 6-10 AM 60 :30 5.9 354 $210.64 $737.25 3.5 $74,567.00 Los Angeles KDAY-FM Urban M-F 3-7 PM 60 :30 6.5 390 $252.78 $682.50 2.7 $98,584.00 Los Angeles KIIS-FM CHR M-F 6-10 AM 60 :30 6.7 402 $210.64 $737.25 3.5 $84,677.00 Miami WLRN-FM AC M-F 6-10 AM 60 :30 5.8 348 $210.64 $737.25 3.5 $73,303.00 Miami WAMR-FM Spanish M-F 6-10 AM 60 :30 3.1 186 $210.64 $737.25 3.5 $39,179.00 New York City WWPR-FM Urban M-F 3-7 PM 60 :30 6.5 390 $252.78 $682.50 2.7 $98,584.00 New York City WXRK-FM Rock M-F 3-7 PM 60 :30 4.5 270 $252.78 $682.50 2.7 $68,251.00 Philadelphia WXTU-FM Country M-F 6-10 AM 60 :30 5.9 354 $210.64 $737.25 3.5 $74,567.00 Philadelphia WIOQ-FM CHR M-F 6-10 AM 60 :30 6.7 390 $210.64 $737.25 3.5 $98,584.00 TOTAL $1,114,734.00 RATIONALE: Radio $1,114,734 5.31 percent of the media budget was allocated to the top two radio stations in the DMAs with the highest population of 18-25-year-olds. We chose to utilize radio advertisements to primarily announce and promote our IMC events. Choosing a morning daypart targets independent young adults on early commutes to work or school. An evening daypart increases exposure in other segments that may have been missed by morning advertisements. From hip-hop to country, adult contemporary to Spanish- language radio, our target will recognize State Farm’s Keep Goin’ Strong campaign as modern and fresh. Through the radio executions, State Farm Insurance will create awareness of their brand and attract the target to attend IMC events. 17
  • 19. MEDIA PLAN MAGAZINE MAGAZINE CIRCULATION INSERTS AD SIZE GRIMPS COST/INSERT CPM COST Sports Illustrated 3,218,133 5 Full Page/4C 16,090,665 $320,000.00 $99.44 $1,600,000.00 Glamour 2,290,452 5 Full Page/4C 11,452,260 $170,080.00 $74.26 $850,400.00 Shape 1,701,028 5 Full Page/4C 8,505,140 $162,000.00 $95.24 $810,000.00 TOTAL $3,260,400.00 RATIONALE: Magazine $3,260,400 15.53 percent of the media budget was allocated to national magazines. Magazine insertions are an excellent way to target a national audience and because of their circulation and extended shelf life. Throughout the year, these advertisements will complement other traditional placements in order to build State Farm’s brand awareness and work to change the perception of young adults. While the majority of the target does not have yearly magazine subscriptions, we chose to advertise during special interest months. RATIONALE: College Newspaper 1,831,649.80 8.72 percent of the media budget was allocated for college newspapers. This category is most effective at reaching the college students who comprise 60 percent of our target. It is estimated that nearly 95 percent of college students read their school newspapers and that there is almost no other print competitor on college campuses. We chose universities and colleges with the highest enrollment and attempted to reach at least one school in most states. The placements will coincide with various IMC events happening on and around the respective campuses. In total, we chose to advertise in 50 college newspapers with 20 full-page, four-color ads. 18
  • 20. MEDIA PLAN College Newspapers SCHOOL/ LOCATION OF CAMPUS DMA ENROLLMENT COST/INSERT INSERTIONS TOTAL Arizona State University - Tempe, AZ Phoenix, AZ 53,298 $2,031.00 20 $40,620.00 Auburn University - Auburn, AL Montgomery, AL 24,602 $1,722.00 20 $34,440.00 Brigham Young University - Salt Lake City, UT Salt Lake City, UT 35,000 $615.00 20 $12,300.00 California State University - Fullerton, CA Los Angeles, CA 37,765 $1,834.80 20 $36,696.00 California State University - Long Beach, CA Los Angeles, CA 34,715 $1,620.00 20 $32,400.00 Colorado State University - Fort Collins, CO Denver, CO 25,000 $976.00 20 $19,520.00 Florida International University - Miami, FL Miami, FL 39,000 $1,161.76 20 $23,235.20 Florida State University - Tallahassee, FL Tallahassee, FL 39,136 $2,588.00 20 $51,760.00 George Mason University - Fairfax, VA Washington, DC 30,714 $1,024.00 20 $20,480.00 Indiana University - Bloomington, IN Indianapolis, IN 38,990 $2,884.32 20 $57,686.40 Iowa State University - Ames, IA Des Moines, IA 28,000 $1,974.00 20 $39,480.00 Kansas State University - Manhattan, KS Topeka, KS 23,000 $2,067.00 20 $41,340.00 Louisiana State University - Baton Rouge, LA Baton Rouge, LA 28,019 $1,167.50 20 $23,350.00 Michigan State University - East Lansing, MI Lansing, MI 46,648 $2,288.00 20 $45,760.00 New York University - New York City New York, NY 54,919 $1,692.71 20 $33,854.20 North Carolina State University - Raleigh, NC Raleigh-Durham, NC 31,000 $1,683.75 20 $33,675.00 Northeastern University - Boston, MA Boston, MA 15,521 $1,435.00 20 $28,700.00 Ohio State University - Columbus, OH Columbus, OH 53,715 $1,438.80 20 $28,776.00 Oklahoma State University - Stillwater, OK Oklahoma City, OK 23,844 $1,326.00 20 $26,520.00 Pennsylvania State University - University Park, PA Johnstown-Altoona, PA 43,998 $2,049.00 20 $40,980.00 Portland State University - Portland, OR Portland, OR 26,587 $1,128.40 20 $22,568.00 Purdue University - West Lafayette, IN Lafayette, IN 40,090 $2,474.04 20 $49,480.80 Rutgers University - New Brunswick, NY New York, NY 52,470 $920.00 20 $18,400.00 University of Arizona - Tucson, AZ Tucson, AZ 38,680 $2,245.50 20 $44,910.00 University of California - Los Angeles Los Angeles, CA 39,650 $3,029.48 20 $60,589.60 University of California - Berkeley, CA San Francisco, CA 35,409 $2,502.00 20 $50,040.00 19
  • 21. MEDIA PLAN SCHOOL/ LOCATION OF CAMPUS DMA ENROLLMENT COST/INSERT INSERTIONS TOTAL University of Colorado - Boulder, CO Denver, CO 32,191 $1,299.00 20 $25,980.00 University of Conneticut - Storrs, CT Hartford, CT 29,383 $1,560.00 20 $31,200.00 University of Florida - Gainesville, FL Gainesville, FL 50,000 $2,715.00 20 $34,300.00 University of Georgia - Athens, GA Atlanta, GA 34,180 $2,256.30 20 $45,126.00 University of Illinois - Champaign, IL Champaign, IL 41,918 $3,151.75 20 $63,035.00 University of Iowa - Cedar Rapids, IA Cedar Rapids, IL 30,000 $4,112.76 20 $82,255.20 University of Kansas - Lawrence, KS Kansas City, MO 30,102 $1,769.40 20 $35,388.00 University of Kentucky - Lexington, KY Lexington, KY 26,913 $1,452.90 20 $29,058.00 University of Minnesota - St. Paul, MN Minneapolis-St. Paul, MN 50,883 $1,778.60 20 $35,572.00 University of Missouri - Columbia, MO Jefferson City, MO 30,200 $1,180.00 20 $23,600.00 University of Nebraska - Lincoln, NE Lincoln, NE 24,100 $2,215.20 20 $44,304.00 University of Nevada - Las Vegas, NV Las Vegas, NV 28,000 $1,560.00 20 $31,200.00 University of New Mexico - Santa Fe, NM Santa Fe, NM 20,864 $1,630.00 20 $32,600.00 University of North Carolina - Chapel Hill, NC Raleigh-Durham, NC 28,567 $2,493.00 20 $49,860.00 University of South Carolina - Columbia, SC Columbia, SC 27,994 $1,452.12 20 $29,042.40 University of South Florida - Tampa, FL Tampa, FL 39,852 $1,200.00 20 $24,000.00 University of Tennessee - Knoxville, TN Knoxville, TN 26,476 $1,656.00 20 $33,120.00 University of Texas - Austin, TX Austin, TX 50,170 $3,657.16 20 $73,143.20 University of Utah - Salt Lake City, UT Salt Lake City, UT 29,284 $2,186.00 20 $43,720.00 University of Washington - Seattle, WA Seattle-Tacoma, WA 42,933 $1,740.00 20 $34,800.00 University of Wisconsin - Madison, WI Madison, WI 42,030 $1,505.20 20 $30,104.00 University of Southern California - Los Angeles Los Angeles, CA 33,500 $1,495.00 20 $29,900.00 Virginia Commonwealth University - Richmond, VA Richmond-Petersburg, VA 32,000 $441.76 20 $8,835.20 Virginia Poly and State University - Blacksburg, VA Roanoke-Lynchburg, VA 30,739 $2,197.28 20 $43,945.60 TOTAL $1,831,649.80 College Newspapers 20
  • 22. MEDIA PLAN MOBILE Out-Of-Home GRIMPS/ # OF # OF COST/ GROSS COST LOCATION COST VEHICLE MONTHS COST MONTH AREAS MONTHS DEVICE IMPRESSIONS MONTH Cleveland, OH 682,200 10 12 $1,000.00 $120,000.00 Airport Ads 4,500,000 $37,500.00 4 $150,000.00 Chicago, IL 1,822,918 10 12 $1,000.00 $120,000.00 Brand Baseball 50,000 $15,625.00 4 $62,500.00 Los Angeles, CA 2,304,369 10 12 $1,000.00 $120,000.00 Bus Ads 1,000,000 $10,000.00 12 $120,000.00 Miami, FL 1,666,666 10 12 $1,000.00 $120,000.00 Cell Phone Decals 50,000 $25,000.00 4 $100,000.00 New York, NY 1,666,666 10 12 $1,000.00 $120,000.00 Chair Ads 50,000 $15,625.00 4 $62,500.00 Philadelphia, PA 700,000 10 12 $1,000.00 $120,000.00 Grocery Cart Ads 400,000 $10,000.00 12 $120,000.00 Houston, TX 1,500,000 10 12 $1,000.00 $120,000.00 Mall Kiosk Ads 7,450,000 $600,000.00 12 $720,000.00 Atlanta, GA 916,667 10 12 $1,000.00 $120,000.00 Office Clings 1,000,000 $25,000.00 6 $150,000.00 Boston, MA 416,667 10 12 $1,000.00 $120,000.00 Stair Ads 1,000,000 $10,000.00 12 $120,000.00 El Paso, TX 516,000 10 12 $1,000.00 $120,000.00 Toilet Clings 1,000,000 $5,000.00 6 $30,000.00 Las Vegas, NV 1,100,000 10 12 $1,000.00 $120,000.00 Transit Ads 1,000,000 $10,000.00 12 $120,000.00 Milwaukee, WI 600,000 10 12 $1,000.00 $120,000.00 TOTAL $1,755,000.00 Minneapolis, MN 1,266,700 10 12 $1,000.00 $120,000.00 Tampa, FL 400,000 10 12 $1,000.00 $120,000.00 Wichita, KS 347,000 10 12 $1,000.00 $120,000.00 Memphis, TN 543,000 10 12 $1,000.00 $120,000.00 TOTAL $1,920,000.00 RATIONALE: Out-Of-Home RATIONALE: Mobile $1,920,000 8.36 percent of the media budget was allocated to out-of-home advertising, all considered to be 9.14 percent of the media budget was allocated to mobile advertising, one of non-traditional placements. Keep Goin’ Strong will the most exciting new mediums in the U.S. today. In the selected seven DMAs, attract the target in an effective and creative way, the Keep Goin’ Strong campaign will place mobile Bluetooth devices in public using uncluttered mediums to invoke humor and places such as shopping malls, bars and transit stations. express the big idea in a creative, fresh way. $1,755,000 21
  • 23. MEDIA PLAN WEB Players GROSS COST/ VEHICLE SHOW LENGTH # OF EPISODES IMPRESSIONS CPM COST IMPRESSIONS EPISODE ABC.com Grey's Anatomy :15 15 200,000 800,000 $23.00 $4,600.00 $69,000.00 Desperate Housewives :15 15 200,000 800,000 $23.00 $4,600.00 $69,000.00 CBS.com The Big Bang Theory :15 15 200,000 800,000 $19.00 $3,800.00 $57,000.00 How I Met Your Mother :15 15 200,000 800,000 $19.00 $3,800.00 $57,000.00 CWTV.com Gossip Girls :15 15 200,000 800,000 $15.00 $3,000.00 $45,000.00 Vampire Diaries :15 8 200,000 800,000 $15.00 $3,000.00 $24,000.00 FOX.com Family Guy :15 15 200,000 800,000 $20.00 $4,000.00 $60,000.00 House :15 15 200,000 800,000 $21.00 $4,100.00 $63,000.00 NBC.com The Office :15 15 200,000 800,000 $23.00 $4,600.00 $69,000.00 Heroes :15 15 200,000 800,000 $17.00 $3,400.00 $51,000.00 TOTAL $564,000.00 RATIONALE: Web Players 2.69 percent of the media budget was allocated to Web players. These efficient, far reaching placements will appear on the NBC, ABC, CBS, CWTV, and FOX Web sites and will be shown to viewers of the target’s most popular shows. $564,000 22
  • 24. MEDIA PLAN Internet IMP/ COST/ MOZILLA.COM 300,000 3,600,000 $8.00 $2,400.00 $28,800.00 WEB PAGE GRIMPS CPM COST MONTH MONTH ESPN.COM 300,000 3,600,000 $8.00 $2,400.00 $28,800.00 GOOGLE.COM 300,000 3,600,000 $10.00 $3,000.00 $36,000.00 BANKOFAMERICA.COM 300,000 3,600,000 $8.00 $2,400.00 $28,800.00 YAHOO.COM 300,000 3,600,000 $10.00 $3,000.00 $36,000.00 ATT.COM 300,000 3,600,000 $8.00 $2,400.00 $28,800.00 YOUTUBE.COM 300,000 3,600,000 $10.00 $3,000.00 $36,000.00 IMDB.COM 300,000 3,600,000 $8.00 $2,400.00 $28,800.00 FACEBOOK.COM 300,000 3,600,000 $10.00 $3,000.00 $36,000.00 ANSWERS.COM 300,000 3,600,000 $8.00 $2,400.00 $28,800.00 MSN.COM 300,000 3,600,000 $10.00 $3,000.00 $36,000.00 LINKEDIN.COM 300,000 3,600,000 $8.00 $2,400.00 $28,800.00 LIVE.COM 300,000 3,600,000 $10.00 $3,000.00 $36,000.00 CHASE.COM 300,000 3,600,000 $8.00 $2,400.00 $28,800.00 WIKIPEDIA.ORG 300,000 3,600,000 $10.00 $3,000.00 $36,000.00 PHOTOBUCKET.COM 300,000 3,600,000 $8.00 $2,400.00 $28,800.00 MYSPACE.COM 300,000 3,600,000 $10.00 $3,000.00 $36,000.00 MYWEBSEARCH.COM 300,000 3,600,000 $8.00 $2,400.00 $28,800.00 BING.COM 300,000 3,600,000 $10.00 $3,000.00 $36,000.00 PAYPAL.COM 300,000 3,600,000 $7.25 $2,175.00 $26,100.00 AOL.COM 300,000 3,600,000 $10.00 $3,000.00 $36,000.00 TWITTER.COM 300,000 3,600,000 $7.25 $2,175.00 $26,100.00 MICROSOFT.COM 300,000 3,600,000 $10.00 $3,000.00 $36,000.00 CNN.COM 300,000 3,600,000 $7.25 $2,175.00 $26,100.00 AMAZON.COM 300,000 3,600,000 $9.25 $2,775.00 $33,300.00 CNET.COM 300,000 3,600,000 $7.25 $2,175.00 $26,100.00 BLOGGER.COM 300,000 3,600,000 $9.25 $2,775.00 $33,300.00 YELLOWPAGES.COM 300,000 3,600,000 $7.25 $2,175.00 $26,100.00 EBAY.COM 300,000 3,600,000 $9.25 $2,775.00 $33,300.00 M-W.COM 300,000 3,600,000 $7.25 $2,175.00 $26,100.00 ASK.COM 300,000 3,600,000 $9.25 $2,775.00 $33,300.00 VERIZONWIRELESS.COM 300,000 3,600,000 $7.25 $2,175.00 $26,100.00 WIKIANSWERS.COM 300,000 3,600,000 $9.25 $2,775.00 $33,300.00 CAREERBUILDER.COM 300,000 3,600,000 $7.25 $2,175.00 $26,100.00 CRAIGSLIST.ORG 300,000 3,600,000 $9.25 $2,775.00 $33,300.00 BBC.CO.UK 300,000 3,600,000 $7.25 $2,175.00 $26,100.00 GO.COM 300,000 3,600,000 $9.25 $2,775.00 $33,300.00 COMCAST.NET 300,000 3,600,000 $7.25 $2,175.00 $26,100.00 ABOUT.COM 300,000 3,600,000 $9.25 $2,775.00 $33,300.00 TOTAL $1,563,300.00 EHOW.COM 300,000 3,600,000 $8.75 $2,775.00 $31,500.00 MAPQUEST.COM 300,000 3,600,000 $9.25 $2,775.00 $33,300.00 APPLE.COM 300,000 3,600,000 $9.25 $2,775.00 $33,300.00 Search engine ADOBE.COM 300,000 3,600,000 $9.25 $2,775.00 $33,300.00 WORDPRESS.COM 300,000 3,600,000 $8.75 $2,625.00 $31,500.00 MSNBC.COM 300,000 3,600,000 $8.75 $2,625.00 $31,500.00 VEHICLE COST/CLICK MONTHS CLICKS COST WALMART.COM 300,000 3,600,000 $8.75 $2,625.00 $31,500.00 GOOGLE $0.40 12 150,000 $720,000.00 TARGET.COM 300,000 3,600,000 $8.75 $2,625.00 $31,500.00 YAHOO! $0.40 12 150,000 $720,000.00 FLICKR.COM 300,000 3,600,000 $8.75 $2,625.00 $31,500.00 MSN $0.40 12 150,000 $720,000.00 DICTIONARY.COM 300,000 3,600,000 $8.75 $2,625.00 $31,500.00 TOTAL $2,160,000.00 WEATHER.COM 300,000 3,600,000 $8.75 $2,625.00 $31,500.00 23