This document provides an analysis of the situation for State Farm's auto insurance business. It examines the economic environment, noting opportunities to compete on price and develop tools to help consumers compare rates. The competitive environment is also assessed, with State Farm's main competitors being Geico, Progressive, and Allstate. These companies spend heavily on advertising, especially television commercials, with Geico typically perceived as the biggest spender. The analysis provides context for developing an integrated marketing communications plan to help State Farm maintain its leadership position.

1. 1
IMC Plan
By
Caterina Simonetto
Kiyama Konomi
Marcelo Brescia
Pacie Tsai
Sinan Milasli
Yuki Okamoto
U.C. Berkeley Extension ⏐Integrated Marketing Communications ⏐Spring 2010

2. 2
IMC Plan – State Farm
Table of Contents
Introduction ........................................................................................................................3
Situation
Analysis..............................................................................................................4
SWOT
analysis ................................................................................................................. 10
Target ................................................................................................................................. 11
Positioning........................................................................................................................ 13
Objective
setting ............................................................................................................. 14
Budgeting .......................................................................................................................... 15
Strategy .............................................................................................................................. 16
Creative
message ............................................................................................................ 17
Mix
of
tools........................................................................................................................ 19
Phases
description......................................................................................................... 20
Media
+
Non-­media
Plans ............................................................................................ 28
Evaluation ......................................................................................................................... 30

3. 3
Introduction
Integrated
Marketing
Communication
(IMC)
is
the
coordination
and
integration
of
all
marketing
communication
tools,
avenues,
and
sources
within
a
company
into
a
seamless
program
that
maximizes
the
impact
on
customers
and
other
stakeholders
at
a
minimal
cost.
This
integration
affects
all
of
a
firm’s
B2B,
marketing
channel,
customer-­‐
focused,
and
internally
directed
communications.
Developing
an
IMC
Plan
requires
from
marketers
to
create
a
consistent
message
by
using
some
of
the
following
tools:
tvmagazinesradiosinterneteventssponsorship
socialmediabrandentertainmentfolderssalesai
dssalespromotionsnewspaperflickertwitterfac
ebookapplicationindoormediamobilemediaor
kutyoutubebannerspanfletsbroadcastsblogsgo
ogleadwordspackagesmerchandisingoutdoorb
illboardguerrilabuzzmarketingpublicrelations
databasedirectresponsemarketingcrmpartner
shipssupportsjournalsseminarslecturesmesse
ngerskypepostersgamesmicroblogslifestreaml
ivecastsvirtualworldssocialgamesrebatesetc…
Fortunately,
there
are
some
more
effective
ways
to
put
these
tools
together.
By
the
way,
let’s
present
one
of
them
related
to
State
Farm
auto
insurance
services…

4. 4
PART
1:
Situation
Analysis
ECONOMIC
ENVIRONMENT
Overall⏐Since
it’s
beginning,
US
auto
insurance
industry
has
been
able
to
achieve
a
fair
degree
of
maturity.
In
a
span
of
a
decade
and
a
half,
rate
of
growth
of
US
auto
insurance
industry
has
been
4.5
percent.
As
a
result
of
the
global
economic
crisis,
the
brand
value
of
the
insurance
category
has
declined
by
48
percent
(Source
Millward
Brown⏐BrandZ
ranking)
Generally,
American
companies
fared
better
than
other
competitors
because
their
more
balanced
portfolios
include
a
greater
mix
of
personal
as
well
as
business
products.
Geico’s
greater
exposure
to
the
car
insurance
business
insulated
the
brand
from
the
current
market
conditions
and
helped
it
to
climb
five
places
in
the
insurance
category
ranking.
State
Farm
declined
in
brand
value
by
27
percent.
But
its
performance
was
relatively
strong
compared
with
the
82
percent
decline
in
brand
value
suffered
by
Mitsui
Sumitomo
Insurance,
which
ranks
last.
Problems
of
US
auto
industry
⏐In
recent
times
some
problems
have
been
impacting
US
auto
insurance
industry,
such
as:

5. 5
-­‐
Risk
of
insurance
fraud
due
to
economic
downturn:
US
auto
insurance
authorities
have
put
in
place
low
impact
programs
that
help
deal
with
such
fraudulent
practices.
-­‐High
expenses,
incurred
by
US
auto
insurance
companies.
:
These
expenses
have
resulted
from
over
treating
legitimate
injuries
as
well
as
treating
soft
tissue
injuries,
which
are
non-­‐existent.
Trends
in
US
auto
industry
⏐Also,
it
is
noticeable
the
impact
of
two
trends
over
the
US
auto
insurance
industry:
-­‐Presence
of
fewer
and
larger
companies,
as
result
of
new
M&A
activities
-­‐
Use
of
rating
tools
by
the
consumers,
as
result
of
an
erosion
of
credit
scores
Opportunities
⏐By
analyzing
the
economic
environment,
we
found
the
following
opportunities
that
can
be
used
in
the
IMC
Plan:
-­‐
Compete
for
the
low
prices
in
the
auto
insurance
market
-­‐
Develop
and
reinforce
tools
–
such
as
Rate
Quote
–
that
help
the
consumers
to
evaluate
what
is
the
most
inexpensive
auto
insurance
company.
COMPETITIVE
ENVIRONMENT
Overall⏐
The
insurance
industry
is
an
extremely
competitive
marketplace.
64%
of
market
share
is
concentrated
with
the
top
10
insurance
companies
(State
Farm
ranks
#1
-­‐
17.6%
/
Source:
A.M.
Best
2006).
State
Farm
is
the
largest
Auto
insurer
of
Young
Adults,
but
share
has
been
eroding
due
to
action
take
by
competitors
like
Geico
and
Progressive.
Today’s
insurance
landscape
is
divided
into
those
companies
that
maintain
an
independent
agent
model
and
direct-­‐to-­‐consumer
insurers:
-­State
Farm’s
agent
model
competitors:
Allstate
(#2),
Nationwide
and
Farmers
-­State
Farm’s
direct
insurer
model:
Geico
(#3)
and
Progressive
(both
have
been
positively
perceived
by
Young
Adults
and
making
strong
inroads
with
the
target)
Communication
analysis⏐In
a
way
to
build/maintain
awareness
and
recognition,
State
Farm,
Geico,
Progressive
and
Allstate
are
the
top
advertisers
when
talking
about
insurance
(TNS
Media
Intelligence
-­‐
2007).
Rank
Company
Ad
$
(millions)
1
Geico
539
2
Progressive
290
3
Allstate
258
4
State
Farm
190

6. 6
Most
part
of
the
investment
is
concentrated
in
TV
commercials
(75%-­‐80%),
followed
by
radio
and
internet
(TNS
Media
Intelligence
-­‐
2007).
Geico
is
often
perceived
as
the
biggest
payer
due
to
their
high
media
spend.
While
State
Farm,
Allstate
and
Progressive
spend
at
somewhat
comparable
levels,
Geico
has
been
investing
significantly
more
in
advertising.
It’s
also
noticeable
that
all
of
these
competitors
make
investment
in
the
Spanish
language,
as
a
result
of
the
growing
numbers
of
immigrants
in
the
US
market.
Following
we
present
a
briefly
description
of
the
current
communications
tools
used
by
the
most
important
advertisers
insurance
companies:
State
Farm
builds
its
leadership
position
by
communicating
how
it
helped
people
manage
the
risks
of
everyday
life
and
recover
from
the
unexpected
(slogan
is
“Like
a
good
neighbor,
State
Farm
is
there”).
As
we
are
going
to
describe
later,
the
positioning
“Now
What”
contributes
a
lot
to
change
the
perception
of
an
old-­‐fashionable
and
expensive
brand
towards
the
Young
Adults
target.
Currently,
State
Farm
message
is
focusing
mostly
in
the
price
benefits.
Examples
of
communication
tools:
1)
TV
commercials
2)
Corporate
and
segmented
websites
(e.g,
Thanks
for
Being
There)
3)
Music
to
download
4)
iPhone
application
–
State
Farm
Pocket
Agent
5)
Sponsorship
LeBron
James
Family
Foundation
and
Steve
Harvey
online
Comedy
Show
Geico
has
a
magic
talking
gecko.
Appealing
to
their
sense
of
humor
and
desire
to
avoid
the
actual
topic
of
insurance,
Geico
promises
extreme
rates
and
offer
many
online
tools.
Geico’s
current
campaign’s
signature
is
“Geico.
15
minutes
could
save
you
15
percent
or
more
in
car
insurance”
Examples
of
communication
tools:
1)
TV
commercials
2)
Corporate
and
segmented
webistes
(e.g,
Geico
Teen
Drivers
Channel)
3)
Music
and
ringtones
to
download
4)
iPhone
application
-­‐
GloveBox
Features
5)
Geico
Direct
Magazine

7. 7
It’s
main
selling
point
is
that
it
provides
a
comparison
of
prices
and
services
among
different
car
insurance
companies,
so
that
consumers
can
earn
distinct
they
are
getting
the
best
value
for
their
money.
Thus,
Progressive’s
appeals
to
both
its
thriftiness
and
its
preferred
mode
of
interaction
–
online
with
a
“we’ll
do
the
shopping
comparison
for
you
so
you
can
just
sign
and
save”
promise.
Examples
of
communication
tools:
1)
TV
commercials
2)
Corporate
and
segmented
webistes
(e.g,
Teens.Progressive)
3)
Sponsorship
Oprah’s
No
Phone
Zone
Pledge
4)
Event
(competition)
The
Progressive
Automotive
X
Prize
Attempts
to
connect
with
viewer’s
emotional
need
for
protection,
by
showing
car
accidents
and
the
fear
instilled
in
people
afterwards.
They
normally
appeal
to
a
different
car
insurance
market
demographic
and
their
campaign
focus
is
the
safety
(slogan
is
“You’re
in
good
hands”).
Examples
of
communication
tools:
1)
TV
commercials
2)
Corporate
webiste
3)
Sponsorship
of
2010
U.S.
Winter
Olympic
Team
Social
Media
⏐As
we
are
talking
about
a
target
that
spends
a
lot
of
time
using
social
networking
websites,
we
made
an
special
analysis
of
the
usage
of
this
tools
for
the
auto
insurance
brands.
State
Farm,
Geico,
Progressive
and
Allstate
use
the
following
types
of
social
medias
to
interact
with
their
consumers:
facebook,
twitter
and
youtube.
Just
to
illustrate,
we
bring
a
comparison
between
the
usage
of
the
twitter
for
this
brands
(datas
collected
on
Feb
27,
2010):
Cost
comparison⏐The
competitive
environment
for
insurance
providers
has
become
much
more
aggressive
in
recent
years.
Price
and
affordability
have
become
extremely
important,
all
the
more
so
with
the
current
economic
situation.
The
top
competitors
brands
are
battling
for
market
share,
each
trying
to
deliver
a
best
price
and
discount
message.
As
the
rates
depend
on
a
variety
of
factors
-­‐
driving
record,
the
types
of
vehicles
you
drive,
household
composition,
credit
record,
and
so
on
–
it
is
very
difficult
to
determine
which
is
the
most
inexpensive
auto

8. 8
insurance
company.
One
good
way
to
find
out
if
State
Farm,
Geico,
Progressive
or
Allstate
offer
cheaper
car
insurance
rates
is
to
simply
get
a
comparison
quote
from
these
companies.
Because
of
this,
all
of
them
offer
the
quote
rate
tool
in
their
websites.
Opportunities
⏐By
analyzing
the
competitive
environment,
we
found
the
following
opportunities
that
can
be
used
in
the
IMC
Plan:
-­‐
Create
a
differentiated
communication
strategy,
considering
that
the
most
representative
competitors
of
State
Farm
appeal
to
the
price
attributes,
despite
of
having
different
positioning
each
other.
-­‐
Develop
an
IMC
Plan
more
consistent
and
effective,
mainly
when
we
consider
the
campaign
of
Geico,
which
is
strongly
focused
in
the
Young
Adults
target
and
offer
benefits
with
more
aggregate
value
(e.g,
iPhone
application)
TECHNOLOGICAL
ENVIRONMENT
Overall⏐
The
analysis
of
the
impacts
of
the
technological
facts/trends
in
the
automotive
industry
is
very
important
to
predict
how
the
insurance
market
will
have
to
evolve.
Thus,
some
of
the
most
important
facts/trends
to
be
evaluated
are:
-­‐Vehicle
telematics:
the
integrated
use
of
telecommunications
and
informatics
within
road
vehicles
(e.g,
GPS
navigation
and
integrated
hands-­‐
free
cell
phones)
-­‐Intelligent
highways:
equipped
with
wireless
technology,
fiber
optics,
sensors,
cameras,
GPS
and
robotic
car
have
the
potential
to
decrease
traffic
congestion,
increase
highway
safety
and
reduce
the
environmental
impact
caused
by
traffic
jams
-­‐Eco-­‐Embedded:
serious
eco-­‐results
will
depend
on
making
products
and
processes
more
sustainable
without
consumers
even
noticing
it
Opportunities
⏐By
analyzing
the
technological
environment,
we
found
the
following
opportunities
that
can
be
used
in
the
IMC
Plan:
-­‐
Evaluate
the
most
usages
telematics
to
reach
directly
the
target
-­‐
Develop
eco-­‐friendly
actions

9. 9
REGULAMENTORY
ENVIRONMENT
Overall⏐
There
are
some
legal
regulations
involving
how
insurance
products
can
be
advertised
together,
but
they
will
not
be
factored
into
this
case.
Also,
despite
of
the
law
saying
that
it
is
forbidden
to
drive
without
your
motorized
vehicle
insurance
or
even
drunk,
many
Young
Adults
don’t
respect
that
rules
and
are
punished
in
some
ways,
like:
serious
fine,
impounding
of
their
vehicle
or
even
detention
center
time.
Added
to
this
information,
it
is
important
to
consider
that
drunk
driving
is
the
leading
cause
of
death
for
Young
Adults
in
US.
Trends
⏐According
to
an
outlook
developed
by
Ernst
&
Young
in
2009,
some
regulatory
trends
take
will
impact
over
the
auto
insurance
market
are:
-­‐
Increasing
number
of
regulations,
which
will
become
more
uniform
if
not
national.
-­‐
Regulatory
price
suppression
/
compression
due
to
political
pressures
Opportunities
⏐By
analyzing
the
regulamentory
environment,
we
found
the
following
opportunities
that
can
be
used
in
the
IMC
Plan:
-­‐
Support
causes
related
to
car
crashes
involving
Young
Adults,
by
developing
projects
or
campaign
focusing
in
the
conscientization
of
this
target.

10. 10
PART
1:
SWOT
analysis
Overall⏐
A
SWOT
Analysis
is
a
natural
extension
of
the
Situation
Analysis
and
involves
study
of
the
opportunities
and
threats
facing
State
Farm
category
and
its
brand
along
with
an
objective
analysis
of
strengths
and
weaknesses
compared
to
competitive
brands.

11. 11
PART
2:
Target
Overall⏐
The
main
target
of
this
integrated
marketing
communication
is
called
Young
Adults,
18-­‐25
aged
independent
individuals.
The
population
currently
numbers
approximately
33
million
people.
There
are
over
11
million
households
that
currently
include
a
young
adult,
and
among
those
households,
there
are
3.3
million
as
heads
of
their
own
household,
mainly
are
age
22-­‐23,
the
order
portion
of
this
demographic.
This
group
of
people
pay
50%
or
more
of
their
living
expenses,
therefore
they
are
comparatively
price
sensitive
and
distinguished
from
dependents
by
their
autonomy
on
both
insurance
and
financial
services
product.
For
the
cultural
composition
of
this
section,
according
to
a
report,
this
generation
is
the
most
multicultural
generation,
with
one
in
three
considering
themselves
not
Caucasian.
Those
who
are
in
multicultural
groups
are
more
likely
to
be
more
independent,
indicating
an
important
marketing
opportunity.
Mentioning
the
purchasing
behavior
of
our
target,
due
to
the
price
sensitivity,
they
are
more
likely
to
be
shopping
for
insurance
than
other
segments
of
the
population.
They
respond
to
dissatisfying
experience
and
price
quickly
in
changing
providers.
Because
of
this
attribute,
they
are
bombarded
with
constant
price
and
discount
message
from
different
providers,
which
make
them
even
more
easily
to
switch
insurance
company.
According
to
the
statics,
this
segment
has
higher
rate
32%
of
switching
providers
than
those
whose
parents
pay
(12%).
They
way
they
collect
information
is
also
different
from
traditional
customer.
They
prefer
various
channels,
such
as
online/
call
center
for
price
quotes,
while
for
advisory
issues,
they
prefer
in
person
or
phone
access,
and
for
account
maintenance
and
new
information,
they
prefer
online
service.

12. 12
Therefore,
the
image
of
State
Farm
in
our
target’s
mind
is
old
fashion
due
to
its
agent
based
model
and
the
stereotype
of
“parent’s
insurance
company,”
so
that
they
are
considered
resistant
target.
This
target
has
just
finished
college
or
started
their
adult
life
and
they
want
to
spread
their
wings
and
sample
life.
They
are
into
entertainment
and
enjoy
outdoor
activities
like
camping,
sports
and
running.
They
are
ready
to
spend
money
on
entertainment
centers,
shows,
good
sound
systems
and
electronic
“necessities”
that
allow
them
to
stay
in
touch
with
the
“fun
world”.
They
like
staying
in
shape
so
they
can
participate
in
the
active
lifestyle
their
youth
necessitates.
Opportunities
⏐By
analyzing
the
target,
we
found
the
following
opportunities
that
can
be
used
in
the
IMC
Plan:
-­‐
Deliver
a
message
that
is
relevant
to
the
Young
Adults,
since
it
is
difficult
to
engage
this
target
in
discussion
about
spending
money
to
prepare
for
the
unexpected
-­‐
Consider
the
places
where
this
target
spend
most
of
their
times
,
in
a
way
to
determine
the
Media
Plan
and
other
non-­‐media
actions
-­‐
Develop
a
strategy
also
to
maintain
this
target
as
a
client
of
State
Farm,
as
they
easier
switch
auto
insurance
providers.

13. 13
PART
2:
Positioning
Several
years
ago
State
Farm
iniciated
a
Young
Adult
task
force
to
put
together
a
plan
to
try
to
market
share
with
the
target.
The
brand
recognized
that
in
order
to
get
Young
Adults
to
think
differently
about
the
brand,
it
had
to
act
diffrently
towards
them.
In
order
to
get
Young
Adults
to
recognize
that
State
Farm
was
a
brand
for
them,
and
not
an
old
fashioned
one,
the
challenge
was
to
puncture
their
indifference
to
the
insurance
category,
engage
them
with
the
barnd
in
a
way
that
would
cause
them
to
re-­‐evaluate
its
relevancy,
and
finally,
jolt
them
into
action.
In
2006,
a
series
of
unbranded
televisoin,
print,
digital
and
OOH
executions
where
created
that
featured
provocative
situations
and
posed
the
question
“Now
What?”,
providing
just
a
web
address
as
the
answer.
Rather
than
using
the
typical
scenarios
featured
in
most
insurance
advertising,
the
campaign
focused
in
real-­‐life
situations.
By
pairing
these
unfortunate
events
with
the
question
“Now
What?”,
State
Farm
tapped
into
a
key
target
insight
–
Young
Adults
don’t
always
know
what
to
do.
The
success
of
this
positioning
was
evident,
contributing
to
improve
the
perceptions
of
the
target
about
the
brand
relevancy
and
also
increasing
the
number
of
new
Auto
and
Renters
policies
purchased
by
Young
Adults.
While
the
“Now
What?”campaign
acted
as
an
effective
way
to
begin
building
a
bridge
to
the
State
Farm
brand
with
Young
Adults,
the
time
has
come
to
evolve
communications
to
this
target.
The
big
question
now
is:
should
State
Farm
maintain
the
sucessful
“Now
What?”
positioning,
should
State
Farm
change
it
in
a
way
to
extend
this
positioning
or
should
State
Farm
replace
it
totally
for
a
brand
new
different
one?
That’s
what
we
are
going
to
present
in
the
next
pages…

14. 14
PART
2:
Objective
setting
The
main
aim
of
this
IMC
plan
is
to
achieve
the
growth
trough
new
Young
Adult
Auto
policies.
State
Farm
is
currently
under-­‐penetrated
this
market,
but
long-­‐term
growth
requires
getting
closer
with
this
target
in
order
to
increase
sales
and
be
more
competitive.
Other
competitors
as
Geico
and
Progressive
are
a
significant
competitive
treat
because
they
have
already
reached
this
target.
State
Farms
considers
the
Young
Adult
an
opportunity
as
Independent
Young
Adults
aged
18-­‐25,
different
from
the
Dependent
ones,
because
of
their
autonomy
and
decision
making
on
both
insurance
and
financial
service
products.
State
Farms
Auto
insurance
is
the
strongest
product
that
can
build
a
relationship
with
Young
Adults,
and
the
brand
can
improve
its
position
by
showing
how
State
Farm
Auto
insurance
matches
the
needs
of
this
target.
State
Farmers
is
#1
in
Renters
insurance
and
is
successful
in
gaining
new
Young
Adult
Renters
customers
from
those
who
apply
for
a
policy.
According
to
the
Insurance
Information
Institute,
there
is
a
big
opportunity
for
growing
in
this
target.
State
Farm
provides
a
number
of
other
insurance
and
financial
service
products
that
can
satisfy
this
target.
While
Auto
and
Renters
insurance
represent
the
biggest
growth
potential
for
the
Young
Adult
target,
supporting
other
lines
can
help
to
reach
the
target.

15. 15
PART
2:
Budgeting
Overall⏐
As
marketers
that
are
trying
to
reach
out
to
the
young
adult
market,
we
are
given
a
$
40
million
budget.
We
are
free
to
use
this
budget
however
we
like
to
use,
which
in
our
case
is
going
to
be
used
only
in
the
“P”
of
“Promotion”.
Later,
we
are
going
to
show
exactly
which
percentage
we
are
going
to
spend
per
tools
of
communication
used
in
the
IM
Plan.
We
will
have
one
year
to
develop
this
campaign,
starting
on
May,
2010
and
finishing
on
May,
2011.

16. 16
PART
3:
Strategy
Considering
all
the
opportunities
identified
above,
the
Brand
Tone
of
State
Farm,
the
main
objective
of
the
campaign
and
the
$40
million
budge,
we
recommend
the
following
strategy:
-­‐
Added
to
the
low
price
rates,
deliver
benefits
to
the
State
Farm’s
Young
Adult’s
target,
in
a
way
to
make
them
feel
exclusive
and
interested
in
taking
part
of
these
advantages
-­‐
Extend
the
former
positioning
based
in
the
“Now
What?”
successful
campaign,
focusing
in
the
benefits
that
will
be
delivered
to
the
target
-­‐
Develop
a
message
and
actions
that
are
relevant
and
impact
direct
in
the
reality
of
the
Young
Adults
-­‐
In
most
of
the
cases,
select
in
the
IMC
Plan
medias
and
vehicles
that
are
more
active
with
the
target.
In
other
words,
instead
of
waiting
for
the
target
to
get
reached
by
the
media,
we
are
going
to
choose
medias
that
belong
to
the
reality
of
the
target
and
in
some
cases
request
for
their
engagement
-­‐
Focus
the
strategy
in
two
main
groups
of
Young
Adults:
(1)
New
consumers
(2)
Current
State
Farm’s
consumers

17. 17
PART
3:
Creative
message
Now
it
is
time
to
implement
the
strategy
suggested
above.
As
we
said,
we
are
going
to
extend
the
positioning
based
in
the
“Now
What”
successful
campaign,
by
focusing
our
communication
on
the
benefits
that
State
Farm
will
deliver
to
its
target.
In
other
words,
the
campaign
will
talk
about
all
the
new
benefits
that
will
be
offered
by
State
Farm.
We
consider
this
an
extension
of
the
“Now
What”
campaign,
because:
-­“Now
What?”:
provocative
questions
for
Young
Adults,
asking
them
what
they
would
do
if
they
are
facing
unfortunate
events
that
involve
their
autos.
-­New
message:
After
knowing
or
trying
State
Farm’s
auto
insurance
service
to
find
out
how
to
deal
with
the
situations
exposed
in
the
“Now
What”
campaign,
it
is
time
to
realize
that
State
Farm
can
offer
much
more
benefits
to
the
Young
Planner.
More
than
this,
State
Farm
understand
that
low
prices
are
important,
but
also
that
its
particular
target
has
specific
needs
and
would
like
to
be
treated
in
an
exclusively
way.
Developing
a
new
message
⏐Considering
this,
we
come
up
with
a
new
message
that
can
summarize
that
State
Farm
understand
better
the
Young
Adult
target
and
know
exactly
how
to
fit
their
necessities.
To
convey
this
notion,
we
design
the
following
message
to
sign
the
whole
campaign:
“Right
On”.
We
reach
this
message
by
considering
an
expression
that
is
usually
used
by
the
target,
when
they
see
something
that
they
agree
with.

18. 18
It
is
important
to
emphasize
that
all
of
communication
suggested
in
this
IMC
Plan
will
be
signed
with
this
message,
in
a
way
to
build
a
consistent
positioning
in
the
consumers
minds.
02
approaches⏐As
described
above,
the
strategy
will
be
focused
in
to
two
main
groups
of
Young
Adults:
(1)
New
consumers
(2)
Current
State
Farm’s
consumers.
When
we
talk
about
the
benefits,
it
becomes
clearer
this
distinction,
as
only
who
is
already
State
Farm’s
client
will
be
able
to
enjoy
the
benefits
offered
by
them.
By
doing
this,
State
Farm
will
create
a
perception
of
exclusiveness,
which
is
quite
appreciated
for
the
Young
Adults
target,
and
probably
will
turn
those
who
are
not
clients
interested
in
belong
to
this
“world
of
benefits”.
The
distinction
of
approaches
will
be
signalized
along
the
benefits
offered
by
State
Farm.
in
the
following
way:
Phases
of
the
campaign
⏐The
campaign
will
be
divided
in
four
phases:
(1)
Implementation
of
the
benefits,
(2)
Segmented
communication
(3)
Mass
communication
(4)
Evaluation
of
the
campaign
In
other
words,
first
State
Firm
is
going
to
act.
Then,
it
is
going
to
spread
the
action
in
a
way
to
generate
world-­‐of-­‐mouth.
Later,
State
Farm
will
disclose
the
campaign
and
engage
the
target
by
using
mainstream
channels
of
communication.
Finally,
it
will
be
tracked
the
brand’s
performance
against
the
objective
of
the
campaign.

19. 19
PART
3:
Mix
of
tools
Determining
an
appropriate
mixture
of
tools
to
communicate
the
campaign
is
a
complex
decision
that
involves
an
accurate
analysis
of
the
target
and
its
touchpoints.
In
the
particular
case
of
this
campaign,
we
are
going
to
use
the
three
types
of
medias
-­‐
traditional
media,
e-­‐active
marketing
and
alternative
channels
-­‐,
as
illustrated
below:
The
graphic
above
considers
the
moment
when
each
tool
of
communication
start
to
be
used
per
phase.
In
other
words,
the
tools
that
started
to
be
used
in
phase
1
will
be
used
on
the
next
phases,
and
so
on.

20. 20
PART
3:
Phases
description
PHASE
1
Benefits
offered
⏐The
benefits
offered
by
State
Farm
are
the
core
of
the
campaign,
because
they
will
be
responsible
to
create
a
differentiation
among
the
competitors
in
the
mind
of
the
Young
Adults.
To
develop
them
we
considered
the
following
context
about
this
target:
-­‐
price-­‐sensitive
-­‐
frequently
touchpoints
-­‐
needs
and
lifestyle
Below,
we
present
some
benefits
that
could
be
offered
by
State
Farm:
1)
Party
bus
Description:
special
buses
that
take
State
farm’s
clients
to
parties.
The
ambience
of
this
buses
will
be
very
cool,
matching
with
the
characteristics
of
the
target.
2)
"Secure
Driver"
Description:
Need
a
taxi
to
get
home
after
a
night
of
fun?
State
Farm's
clients
will
be
able
to
call
for
a
taxi
to
take
their
home
from
8
pm
to
2
am.
3)
Discounts
Description:
State
Farm
will
make
agreements
with
some
companies,
in
order
to
provide
discounts
in
specific
places,
such
as:
parking
spaces
(close
to
universities,
cinemas
and
concert
halls)
for
those
who
are
State
Farm's
clients.
Also,
State
Farm
will

21. 21
give
to
its
clients
discount
tickets
in
activities
that
are
related
to
lifestyles
of
the
target
(will
be
described
better
in
Phase
2),
such
as:
concerts,
cinemas,
bars,
exhibitions,
and
so
on.
Finally,
aiming
to
incentive
“the
good
drivers”
in
a
target
that
is
well
known
to
be
one
of
the
most
involved
in
fatal
car
crashes
in
US,
State
Farm
will
give
discounts
in
buying
a
new
contract
or
renewing
the
auto
insurance
policy
for
those
who
didn’t
have
any
penalties
in
their
drivers
license.
4)
Special
quick
queues
Description:
State
Farm’s
client
will
be
able
to
take
special
quick
queues
to
get
inside
the
events
that
State
Farm
is
giving
discount
tickets.
5)
State
Farm’s
telephone
Description:
make
available
telephones
all
over
the
highways,
in
order
to
make
possible
that
people
whose
car
broken
and
have
their
mobile
phone
out
of
battery
can
call
to
the
State
Farm
services
Related
actions⏐Complementing
the
benefits,
we
also
suggest
the
development
of
the
following
tools/actions:
1)
Customized
State
Farm
auto
insurance
card
Description:
as
we
are
talking
about
a
particular
target,
State
Farm
will
developed
a
special
auto
insurance
card
with
the
design
of
the
vehicle
of
the
client.
2)
Car
stickers
Description:
in
order
to
make
easier
the
process
of
recognizing
State
Farm’s
clients
in
places
where
that
company
provide
benefits
(e.g.,
parking
spaces),
it
will
be
developed
some
“cool”
car
stickers
for
them.
3)
Agents
Description:
Since
State
Farm
maintain
an
independent
agent
model
and
the
target
is
more
used
to
make
services
primarily
via
call
centers
and
the
internet,
it
is
important
to
pay
attention
in
the
services
delivered
by
these
agents
and
the
place
where
it
happens.
This
become
even
more
important,
if
we
consider
that
in
major
of
the
times,
that
is
the
first
time
that
the
Young
Adults
are
dealing
direct
with
an
auto
insurance
service.
Because
of
this,
we
recommend
the
following
actions:

22. 22
-­Training:
some
agents
should
be
trained
to
conduct
business
exclusively
with
the
Young
Adults,
as
these
target
is
“beginner”
in
this
field,
which
means
that
probably
they
will
need
more
support
and
attention.
-­‐Interior
design:
to
make
the
experience
of
going
to
a
State
Farm’s
agent
more
pleasant
and
natural,
we
recommend
that
State
Farm
provide
special
agencies
for
this
target.
In
other
words,
these
places
should
be
designed
considering
the
characteristics
of
the
target,
such
as
flexible
schedule,
near
to
universities
and
friendly
ambience.
It
is
important
to
consider
that
this
agency
won’t
replace
the
traditional
ones,
but
will
only
complement
them
in
a
way
to
cover
the
Young
Adults
demand.
Traditional
agencies
Berkeley
State
Farm
Agency
PHASE
2
Segmented
communication
⏐In
order
to
generate
free-­‐publicity
and
consistence,
we
are
going
to
involve
the
journalists
and
opinion
leaders
in
the
communication
by
using
press
agents
and
public
relation.
Also,
we
are
going
to
communicate
straight
to
the
target
by
bringing
the
message
to
theirs
touchpoints,
instead
of
waiting
for
them
to
look
for
State
Farm.
1)
PR
and
Agent
Press
Description:
Public
relations
are
really
important
in
our
IMC
plan
because
they’re
the
most
important
tool
to
keep
updated
journalists
and
useful
for
increasing
the
visibility.
We
plan
to
keep
updated
the
press
sending
press
releases
about
new
product
or
events
that
we
support
at
least
once
a
month
by
mail.
We’re
going
to
send
them
all
the
information
they
need
for
their
publication,
including
images
so
they
can
figure
out
which
are
our
distinctive
characteristics.
We’re
are
going
to
organize
also
some
events
dedicated
to
the
journalists,
so
we
can
have
the
chance
to
explain
them
better
State
Farm’s
products.
Of
course,
we
plan
to
invite
them
to
all
our
events
that
we’re
going
to
support
and
the
contests.
The
journalists
that
publish
an
article
about
State
Farm
will
receive
one
of
our
benefits
for
free,
so
they
can
have
the
chance
to
try
one
our
product
and
understand
our
benefits.
2)
Right
On
website
Description:
As
our
target
are
people
from
18
to
24
years
old,
we
figured
out
a
website
full
of
interesting
information
and
useful
tools
for
reaching
the
target.
Some
of
the
contents
available
are:
-­‐State
Farm
new
products:
dedicated
to
present
the
benefits,
such
as:
“Party
bus”,
“Secure
drivers”
and
“State
Farm’s
telephone”;

23. 23
-­Digital
Radio:
selection
of
top
hits
related
to
the
target
and
musics
to
download;
-­Events:
all
the
upcoming
events
related
to
the
Young
Adults;
-­News:
all
the
events
of
which
State
Farm
is
offering
discounts;
-­Get
a
discount
here:
randomly
banners
where
the
State
Farm’s
client
can
print
his
ticket
discounts
by
using
his
or
her
auto
insurance
number.
This
data
will
be
analyzed
and
used
later
for
more
customized
actions
with
these
customers.
-­Photos:
users
can
upload
and
share
pictures;
-­Blog:
users
can
leave
their
comments
about
State
Farm’s
products
and
give
suggestions
to
other
people.
-­State
farm
can
help
you
in
every
situation:
this
part
is
dedicated
to
illustrate
in
how
many
daily
situation
we
need
a
State
Farm
product.
-­Teaser:
section
related
to
future
action
related
to
the
“Right
On”
campaign,
such
as:
State
Farm
FM
and
State
Farm’s
TV
Contest
(both
we
are
going
to
describe
later);
-­Games:
a
page
to
entertain
people
with
some
games
such
as
tetris
or
puzzles
(researches
show
that
more
time
a
person
spend
in
your
website
more
chance
you
have
to
turn
him/her
into
a
customer).
-­Feedback:
we
collect
the
feedback
of
our
website
visitors
through
surveys
in
order
to
improve
our
tool
and
match
their
needs.
We’re
going
to
promote
our
website
through
different
channels
such
as
pop
up
in
the
campus
university
website
and
State
Farm
website,
that
will
include
also
a
link
to
our
new
website.
It’s
important
to
include
our
website
address
in
every
promotional
tools,
such
as
the
press
release
that
we
sent
to
journalists
and
also
in
each
of
our

24. 24
new
promotional
such
as
the
party
bus
or
the
State
Farm
telephone.
Then
for
sure
we’re
gonna
advertise
it
through
the
social
media
tool.
3)
Social
media
Description:
Since
State
Farm
and
its
main
competitors
already
use
some
social
medias
-­‐
facebook,
twitter
and
youtube
–
we
recommend
that
State
Farm
increase
its
social
media
tools
or
even
start
to
use
new
ones.
Below,
we
present
some
suggestions:
-­Facebook:
send
people
that
are
fans
of
State
Farm’s
communities
Birthday
cards
with
discounts
-­Blog:
create
State
Farm’s
blog
linked
to
the
“Right
On”
website,
where
visitors
users
can
leave
their
comments
about
State
Farm’s
products,
give
suggestions
to
other
people
and
send
pictures
and
movies
about
any
particular
situation
that
they
have
lived.
-­Flicker:
show
pictures
of
event
involving
the
Young
Adults
target,
such
as
the
“Party
bus”
or
any
of
the
events
that
State
Farm
gives
discounts
-­Mixcloud:
as
the
target
is
enthusiastic
to
music,
we
suggest
this
social
media
where
the
visitors
can
re
commend
musics
4)
Application
for
iPhone
and
smartphones
Description:
As
far
as
we
know
about
i-­‐phone
and
Smartphone
users
download
their
favorite
or
useful
applications
on
their
displays
such
as
games,
news,
and
calendars
in
order
to
keep
using
and
seeing
the
information
without
going
specific
websites.
Beside,
it
became
popular
for
companies
to
provide
the
applications
for
free
to
their
customers
as
services.
It
helps
customers
that
have
contracted
a
specific
service
to
simplify
getting
information.
State
Farm
is
also
one
of
the
companies
that
utilize
the
application
for
the
customers
who
have
i-­‐touch
and
i-­‐phone.
Considering
target,
it
is
time
to
improve
the
application
and
the
features
for
them
based
on
the
previous
features:
•
Bill
Pay:
Allow
the
customers
pay
their
bills
on
the
application
•
Find
Discounts
usable
places:
a
feature
finds
out
places
that
can
use
discount
benefits
such
as
parking
spots
•
Register
for
a
party
bus:
a
feature
allows
the
customers
to
register
a
party
bus
by
the
application
and
tell
them
where
a
bus
pick
them
up

25. 25
•
Find
the
roads
has
traffic
jams:
a
feature
finds
out
places
that
has
traffic
jam
•
Music
for
driving:
a
feature
provide
the
customers
music
that
can
young
adult
prefer
listening
during
driving
5)
“Students
communications”
Description:
Since
the
target
spend
a
big
percentage
of
their
time
inside
of
the
universities,
we
recommend
the
following
actions:
-­Student
newspapers:
many
colleges
have
their
own
student
newspaper,
which
includes
daily
information
around
campus
and
local
city,
the
student
activities,
such
as
student
events,
sport
competitions,
concerts
information
and
so
on.
Depends
on
campuses,
there
are
daily
published,
weekly
published,
and
season
published
one.
Since
students
take
those
papers
as
a
method
to
get
new
information,
State
Farm
can
use
these
tools
to
communicate
the
message.
-­Local
free
publication:
also
widely
read
by
students,
those
pamphlet
types
of
issues
can
be
mainly
divided
into
3
categories—music
and
art,
movies
information,
sport
events.
Students
can
get
those
pamphlets
or
flyers
in
theaters,
gyms,
dormitories,
or
even
café
shops
around
campuses.
State
Farm
can
pick
those
which
have
similar
features
to
the
IMC
promotion
as
an
instrument
to
communicate.
Sports
and
movie,
concert
related
issues
will
be
good
choices.
-­Outdoor/
indoor
information
1)
Students
billboard-­‐
even
it
is
simply
a
single
flyer
among
all
other
clutters,
it
is
close
to
young
adults’
lifestyle,
and
can
improve
brand
image
among
students.
2)
School
gym-­‐
While
students
are
exercising,
it
is
a
good
chance
for
State
Farm
to
expose
the
information
in
front
of
them
since
the
students
have
nowhere
to
go
but
stay
on
the
machine.
Besides,
the
message
of
the
promotion
is
very
cheerful
and
energetic;
it
will
fit
the
image
of
gyms
a
lot.
3)
Other
school
buildings-­‐
such
as
dormitories,
auditorium,
stadium,
where
posters
can
be
shown
in
front
of
students
are
also
good
options
for
State
Farm.
4)
Popular
places
around
campus-­‐
such
as
café,
bookstores,
and
cinemas
around
campuses.
In
addition
to
posting
posters,
those
places
also
provide
racks
for
pamphlets.
It’s
a
good
way
to
communicate
with
young
adult
group
through
the
places
where
young
adults
are
familiar
with.

26. 26
6)
Kiosks
Description:
some
kiosks
will
be
provided
inside
of
universities,
colleges,
shopping
centers
and
cinemas.
The
idea
is
to
bring
State
Farm’s
to
the
places
where
the
Young
Adults
spend
much
time,
instead
of
waiting
for
them
to
look
for
State
Farm.
In
this
kiosks,
there
will
be
agents
to
respond
questions
and
if
demanded
starting
anyone
process
of
contracting
an
auto
insurance
service.
Also,
there
will
be
available:
Wi-­‐Fi
networks,
plugs
to
charge
the
batteries
of
the
computer
or
cell
phone
and
music’s
to
download
from
the
“Right
On”
Digital
Radio.
7)
Supporting
causes
Description:
As
we
described
before,
the
Young
Adults
are
one
of
the
targets
most
involved
in
fatal
car
crashes
in
US.
Because
of
this,
we
recommend
that
State
Farm
support
or
sponsor
some
projects
focused
in
decreasing
the
number
of
car
crashes
in
people
with
ages
between
18
and
25,
such
as:
Oprah's
No
Phone
Zone
(campaign
to
help
make
the
roads
safer
for
everyone).
PHASE
3
Mass
communication
⏐After
involving
straight
the
target
and
some
influencers
in
Phase
2,
it
is
time
to
reach
a
big
amount
of
people.
For
this,
we
recommend
the
following
tools:
1)
State
Farm
FM
Description:
Complementing
the
online
radio
placed
in
the
“Right
On”
website,
we
suggest
that
State
Farm
creates
its
own
radio
station.
This
is
especially
important,
if
we
consider
that
the
target
spends
a
big
part
of
their
time
inside
of
their
cars.
Some
contests
that
will
be
broadcasted
by
the
radio
are:
.
Real
time
traffic
alerts
and
traffic
reports;
.
Guide
of
the
hottest
events
news,
such
as:
concerts,
cinemas,
parties,
exhibitions,
and
so
on;
.
Benefits
offered
by
State
Farm,
such
as
tickets
discounts
available
in
the
“Right
On”
website;
.
Top
music
hits
.
Teaser
for
the
State
Farm’s
TV
Contest
(as
we
are
going
to
describe
later)
and
other
medias
or
actions
developed
by
State
Farm.
2)
Segmented
magazines
Description:
State
Farm
should
be
focusing
on
the
magazine
advertisement
to
reach
out
to
the
young
adult
market
because
although
this
specific
age
group
is
not
keen
on
reading
they
have
great
interest
towards
magazines
which
interest
them.
Male
consumers
are
greatly
interested
in
sports
and
cars
and

27. 27
there
are
many
magazines
that
are
good
mediums
to
reach
to
these
people,
same
with
the
female
consumers
who
are
more
interested
in
gossip,
fashion
beauty
magazines.
Some
of
the
magazines
that
State
Farm
should
advertise
on
are
Road&Track,
FHM,
GQ,
Playboy,
which
are
basically
read
by
the
age
group
we
are
targeting.
And
a
well
placed
eye
catching
ad
will
help
us
a
lot
in
order
to
attract
these
male
consumers.
For
female
consumers
Vogue,
Cosmopolitan,
Us
Weekly
are
might
be
some
of
the
examples
where
State
Farm
can
reach
to
the
potential
customers.
3)
Online
media
efforts
Description:
Internet
is
the
main
source
that
State
Farm
can
reach
to
these
Young
Adult
customers.
Ads
on
search
engines
such
as
Google
and
Yahoo,
be
it
a
banner
or
a
whole
page
ad.
As
we
described
above,
the
use
of
social
network
sites
are
crucial
because
there
are
hundreds
of
millions
of
people
that
interact
with
each
other
through
these
sites
and
to
be
located
in
the
heart
of
this
stream
will
benefit
our
company
greatly
in
order
to
reach
our
target
market.
We
also
have
to
be
in
the
internet
stream
channels
such
as
youtube,
hulu
etc.
as
well
as
internet
radios
which
mostly
are
used
by
the
young
generation.
Online
games
and
interactive
games
in
social
network
sites
are
hugely
popular
and
we
are
thinking
of
creating
a
game
in
social
network
sites
where
you
are
a
valet
trying
to
park
cars
in
the
parking
lot
without
hitting
and
as
quick
as
possible.
It’s
a
really
fun
game
that
youngsters
enjoy
and
the
marketing
side
to
the
game
comes
when
you
accidentally
hit
a
car
in
the
game,
State
Farm
ad
pops
out,
saying
that
“
In
trouble?
“
and
then
explains
how
State
Farm
can
help
people
in
such
occasions.
4)
State
Farm
TV
Contest
Description:
the
participants
will
be
supposed
to
write
their
real
stories
talking
about
a
situation
involving
the
benefits
offered
by
State
Farm
and
how
they
felt
“cool”
about
it.
The
top
2
submissions
will
be
selected
and
will
be
shot
by
a
film
producer,
resulting
each
one
in
30
seconds
TV
commercials
that
will
be
aired
as
State
Farm’s
auto
insurance
commercial
with
the
signature:
“Right
On”.
Also,
all
the
submitted
histories
will
be
published
in
the
“Right
On”
website,
where
they
can
be
read
and
ranked
by
the
visitors.
Website
site

28. 28
PART
3:
Media
+
Non-­media
Plans
Media
Plan
After
defining
all
the
tools
presented
in
the
IMC
Plan,
it
is
time
to
distribute
all
of
them
all
long
the
campaign’s
period,
in
way
to
follow
the
3
phases
described
above
and
avoid
period
without
reaching
the
target.
As
we
recommended
media
and
non-­‐media
tolls,
we
divided
both
plans
like
presented
below:

29. 29
Non-­media
Plan

30. 30
PART
3:
Evaluation
PHASE
4
Evaluation
of
the
campaign
⏐Did
the
campaign
result
in
growing
through
new
Young
Adult
Auto
policies?
By
using
some
metrics,
we
will
try
to
request
this
question
and
other
related
to
the
campaign.
First
of
all,
it
is
important
to
consider
that
it
is
very
difficult
to
calculate
exactly
which
of
the
medias
or
non-­‐medias
suggested
as
responsible
specifically
for
each
0.1%
of
increase.
As
we
are
talking
about
a
IMC
Plan,
the
group
of
communication
tools
will
be
responsible
together
to
reach
the
target,
deliver
them
a
unique
perception
and
luckily
turn
them
into
State
Farm’s
new
clients.
One
good
thing
to
start
the
“Evaluation”
process
is
measuring
State
Farm’s
situation
in
the
exactly
moment
before
the
“Right
On”
campaign
starts
(April
30,
2010).
By
doing
this,
when
we
reach
the
last
day
of
the
campaign
(April
30,
2011),
we
will
be
able
to
compare
both
results
and
plan
the
next
steps.
Finally,
some
of
the
tools
that
we
recommended
can
help
in
calculating
with
more
accuracy
the
results
of
the
campaign,
by
using
specific
metrics,
such
as:
-­
Right
On
website:
Google
Analytics
-­Ticket
discounts:
number
of
tickets
printed
-­
Digital
radio:
number
of
musics
downloaded
-­
Kiosks:
number
of
new
clients
acquired
-­‐State
Farm
TV
Contest:
number
of
participants
submitted
-­Cell
phone
app:
number
of
downloads
-­Social
media:
number
of
new
fans
or
followers
-­"Secure
Driver":
number
of
taxis
required
-­Bus
party:
number
of
people
that
participate
in
this
benefit.