Geico has been in business since 1936 and is now a major player in the auto insurance market. They target adults aged 25-49 earning $30,000-$100,000 annually. Geico's strategy is to offer the lowest rates through direct sales and high advertising spending. They position themselves as fast and affordable compared to competitors like State Farm. Geico's humorous TV ads have strong brand recognition. However, intense competition and potential customer complaints remain threats.

1. Marketing Audit

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

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

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

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

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

7. Positioning Map

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

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

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