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University of Minnesota twin cities | 2009-2010
University of Minnesota twin cities | 2009-2010
We are Chariot, a communications agency specializing in creating solutions that transform impossible business problems into attainable goals. We act as the vehicle, turning insight into strategies and consumer into communities. We will guide you on the journey to an inspired campaign. Sit back and enjoy the ride.
Specifically, this target is over-stretched for cash, over-committed and overwhelmed with pressure. To put it simply, they are stressed. They are uncomfortable with, and often intimidated by, the insurance purchasing process. This process is seen as adding more stress to an already stressful life.
State Farm has an opportunity to connect with these three segments through a campaign that emphasizes what they seek most when buying insurance: affordability, ease and approachability. This led Chariot to a strategy which becomes the foundation for our campaign: State Farm takes the stress out of buying the right insurance. This strategy will resonate with our target because they seek brands that will reduce the stress in their lives. Creative executions bring the campaign to life. Our message is delivered through an exciting connections plan that incorporates media, events, promotions, public relations and loyalty programs to engage our normally apathetic audience. Chariot goes beyond the current industry “switch and save” messaging to connect with our target in a more important way. This campaign gives them reason to ignore the constant barrage of competitors’ offers because State Farm will become their insurance brand of choice.
exec
utiv
e su
mm
ary For nearly a century, State Farm has been a company focused
on customer advocacy. This has helped State Farm become the industry leader in Auto and Renters Insurance. Although State Farm has an impressive share of the insurance industry as a whole, it continues to under-perform in the 18-25 year-old market. State Farm must create a much stronger connection with this audience in order to increase market share and build a pathway to the future.
It’s time for a new direction. Chariot has found that the 18-25 year-old market does not respond well to traditional State Farm messages. They view these campaigns as geared toward a more mature and financially stable audience. These traditional selling points do not readily address the younger audience’s key concerns.
But not all 18-25 year-olds are the same. Chariot identified three mindset-based segments within this market that present the greatest immediate opportunity for State Farm. These segments are the Deal Demanders, Convenience Cravers and Help Hunters, representing 80% of the 18-25 year-old insurance market. Chariot uncovered a reoccurring theme within these three market segments that influences their insurance purchases.
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the task
Attract and retain 18-25 year-old policy-
holders by making State Farm their
insurance brand of choice. We want
loyalty to be strong enough to resist
the daily “switch and save” offerings from
competitors.
The State of State farm: Despite leading the Auto and Renters Insurance industries in market share, State Farm is experiencing a declining share among 18-25 year-olds. State Farm has taken numerous steps to reverse this decline, but has not seen the desired market impact.
Building a Base Before Making our Case Extensive research led us to simple, yet surprising insights about the 18-25 year-old market that inspired us to develop our new State Farm campaign.
Research Objectives 1. Gain insight into the lifestyles and values of 18-25 year-old Independents and learn how buying insurance fits into their lives 2. Define our target’s level of knowledge about the insurance buying process 3. Understand the perceived advantages and drawbacks of buying State Farm Insurance 4. Identify the different segments within our target who will best respond to State Farm messages 5. Pinpoint the triggers that influence brand choice when buying Auto or Renters insurance for the first time
Secondary Research – Learning from Published Literature
by our target
of first time insurance buyers
purchasing insurance
Primary Research – Gaining fresh Perspectives
most important when buying Auto or Renters insurance, as well as to uncover current brand perceptions of the leading insurance companies
face when selling to this target
decisions are made
identify the underlying issues that influence insurance purchases
Usage patterns of media and the independent 18-25 year-old demographic Kysa Koerner Hubbard, Ph.D., Psychology, Cultural Studies
rese
arch
2
The Dependency Factor:Approximately half of 18-25 year-olds are classified as “financially independent.” A significantly smaller percentage actually pay for their own insurance. A Chariot survey of college students found that 77% of those that pay more than 50% of their living expenses are still on their parents’ insurance policy.
understanding our target
independents:
73% have cars1
50% rent a house or apartment3 32% are currently in college2
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17% have smart phones3 The Implication:The great majority of college students remain on their parents’ insurance policy. Because of this, State Farm should consider college students as a secondary target.
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18-25 year-old Independents: + Are the most ethnically diverse of any generation4
+ Are going through more life transitions than any other age group+ View their lives as stressful+ See money as a main source of worry5
+ Always stay connected+ Choose “new media” as their media of choice + Expect companies to fit into their lifestyles + Favor companies that support charitable causes
1U.S. Department of Transportation, 2Bureau of Labor Statistics, 3 4Insuring the Catalyst Customer: Generation Y and the Insurance Industry, 5
competition
The ‘Call or Click’ Brands
Seen as a strictly agent-based modelAdvertising is directed toward a more experienced buying audiencePerceived as being more expensive
Our Target and Insurance They expect the insurance buying process to be cumbersome and unpleasant They do not have a good understanding of the insurance marketplace and often feel intimidated during the buying process They put off buying insurance until it cannot wait any longer Their parents often play a significant role as a first source of information They view established or “older” insurance companies as reliable and more experienced They do not anticipate having to file a claim, so company performance and reliability are not central to their insurance buying decision Price and convenience are the two main determining factors when choosing among insurance brands
The ‘Classic Come In and Let’s Talk’ Brands Seen as providing convenience and ease of useViewed as catering to younger audiences with little insurance experiencePerceived as relatively affordable and offering a large variety of discountsUse characters, avatars and mascots to create a youthful image
There are dozens of insurance companies available, our target simply places them into two categories:
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Our target assumes "Call or Click" brands are more flexible, less intimidating and less expensive. We learned Independent 18-25 year-olds are most attracted to these
directly with an agent and feel "Call or Click" brands better fit their lifestyles. These insights begin to explain why State
Farm is not connecting with this target.
diving deeperOur Target and State Farm18-25 year-olds, even those who have not bought insurance, have still formed opinions about State Farm. To our target, State Farm is:
Recognized: Over 90% included State Farm when asked to name three top of mind insurance brands Respected: Ranked as the most knowledgeable, trustworthy, consistent and dependable insurance company when compared to top competitors Problematic: Perceived as time consuming, expensive and intimidating
INTeRNAL STReNGTHS Substantial brand recognition Longstanding reputation of reliability #1 in auto insurance industry Nationwide network of locally based agents
INTeRNAL WeAKNeSSeS
Brand is intimidating toyoung audiences
Buying process is perceivedas complex and daunting
First time buyers seeproduct as comparativelyexpensive
among youngerdemographics
eXTERNAL OPPORTUNITIeS
Brand loyalty has not yet been developed
Correctable brand misconceptions among our target
18-25 year-olds are unaware of the value of renters insurance
eXTeRNAL THReATS
Competitors gaining market share among target
Heavy ad spending by competitors
“Switch and Save” advertising turns insurance into a commodity
S.W.O.T.
5
6
GO
Seek a good price Focus on affordability Are stressed about money Believe the agent-based brands come with a higher price tag
Deal Demanders“Affordable car insurance”
GO
GO
GO
GO
Convenience Cravers
Focus on reducing stress Are intimidated by the process
“Insurance ASAP”
Help Hunters
Quality Coveters
Frequent Filers
“Insurance advice and help”
“Best insurance companies”
“Accedient Forgiveness”
Are Confused and intimidated by the insurance processSeek referrals and advice from othersGo to parents or other trusted adults for advice
Focus is on getting the best possible coverage.Interested in reducing their risk and limiting their exposureLook to opinion leaders for advice
Have had collisions or traffic violations in the pastFocus on finding affordable and forgiving coverage
because of past records
State Farm will create messaging to reach the two renters segments that currently go uninsured: the Overestimators and the Downplayers.
Three market segments offer State Farm the best opportunity to increase market share: Deal Demanders, Convenience Cravers and Help Hunters. These three segments represent approximately 80% of the Independent market and Chariot will direct the new campaign to them
segmenting the marketWe uncovered five distinct market segments of Independent 18-25 year-old Auto insurance buyers based on what our target looks for in an insurance policy.
The Renters insurance market segments differently. The differences largely
purchasing insurance does not prompt the same sense of urgency. Chariot has found three distinct attitudinal and behavioral segments among the Independent 18-25 year-old market.
Protectors They understand the importance of protecting their property and recognize the value of insurance, often bundling Renters with Auto insurance.
Overestimators
premiums will cost $100+/month.
Downplayers
not believe they need insurance.
Renters insurance segmentation:
State Farm is perceived by 18-25 year-olds as being the most
knowledgeable, trustworthy, consistent and dependable insurance company. This
perceived superiority, along with an agent-based model, leads 18-25 year-olds to mistakenly assume that
buying a State Farm policy will be intimidating, expensive and cumbersome. These misconceptions have caused State Farm to be
perceived as a stressful brand to an already stressed audience.
We began by assuming a successful State Farm campaign would focus on overcoming a dated brand image, and that providing a contemporary facelift would solve the problem. Our research taught us the issue is more complicated and profound. Research informed us State Farm’s “long history,” “maturity” and “age” actually translate to favorable characteristics like “dependable,” “reliable” and “always there.” State Farm’s maturity is not the issue. Independent 18-25 year-olds are not buying State Farm insurance because of something else–something deeper.
reeva
luatin
g the
prob
lem
ACTUAL PROBLeM: INTIMIDATING BRAND IMAGe
ASSUMeD PROBLeM: OUTDATeD BRAND IMAGe
the real problem
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“It’s going to be more expensive, because they have
to pay the agents.”
“[State Farm is] obviously a good company because they’ve
been doing it so long”
“I’m sure agents are fine, I just think I would feel
stupid talking to them”
Chariot focus group
STReSSeD
adding it all up
New jobscar loans
financial responsibilities
new apartments
uncertain futures
full schedules
other anxieties
Over-stretched for money
Over-scheduled with responsibilities
Overwhelmed with pressure
State Farm takes the stress out of buying the right insurance
positioning statement
97% of 18-25 year-old Independents say they have stress in their lives
82% say they wish they had less stress to deal with
84% chose “stressful” as a word that describes buying auto or renters insurance
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overworked by societal expectations
Create a campaign that will leverage existing brand strengths to show that buying State Farm insurance is actually easy and affordable. The real opportunity lies in dispelling common misconceptions about State Farm and repositioning the brand as an ally of our target -- as a brand that will reduce the stress in their lives.
Creating a New Brand RealityWhat they think now What we want them to think
Quality insuranceThe right protection
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ExpensiveAffordable
IntimidatingHelpful
CumbersomeQuick and easy
For my parentsFor me
char
iot’s
solu
tion
crea
tive
conc
octio
ns
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Why Stress Free?“Stress Free” responds to the key concern in the lives of 18-25 year olds—an overabundance of stress.
Our campaign highlights that with State Farm, buying the right insurance is an easy task that fits seamlessly into their lives. Auto: We use humorous executions to juxtapose lighthearted, stressful situations with the stress free experience of purchasing State Farm. Renters: We contrast exaggerated, complex alternatives for protecting property with the stress free simplicity of State Farm renters insurance.
Stress Free LogoThis clean and professional design makes State Farm more contemporary and approachable. “Stress Free” is incorporated into our logo with State Farm’s typeface and color, allowing us to own this important expression.
creative decisions
Why we focus on the buying process rather than filing claims:For our target, the barrier to purchasing State Farm is the perception that the company is intimidating, expensive and complicated to purchase.
buying State Farm insurance.
The Stress Free Zone (Frame 7)We resolve each spot by showing the stressed character in a symbolically stress free space. The Stress Free Zone works as a clean and simple design element that represents the ease of buying State Farm and the peace of mind that follows. Red furniture brands the space and incorporates the most familiar element of State Farm-- its signature color.
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The Morph (frame 8)We will end our commercials with the State Farm logo on a red background. The words “Stress Free” will emmerge from the text, led by the “S” and the “F” of “State Farm,” and settle below to complete our logo. This mmnemonic device will make our message more memorable and associate the Stress Free promise with State Farm.
video (ONLINE AND BROADCAST)
Production NotesTheme: Stress is a part of everyday life. Thanks to State Farm, it doesn’t have to be a part of buying insurance. Tone: Humorous and relatable
“Baby Talk” :30A baby is playing in the kitchen when his mother’s cell phone begins to ring on the countertop. As the commercial unfolds, the situation turns stressful for the mother.
The baby is playing with a toy truck on the kitchen floor.
A cell phone rings on the counter. The baby reaches up and grabs the phone.
The baby, mimicking his parents, pre-tends to answer the still ringing phone.
Woman’s Voice: “Honey, have you seen my phone?”
With the phone in-hand, the baby crawls over to the dog dish.
The baby drops the phone into the dog’s water dish. VO: “Life can be stressful.”
VO: “But when it comes to car insur-ance, State Farm makes things a little easier. We’re there for you- online, on your phone, or in person.
VO: “Insurance on your terms. State Farm. Stress Free.”
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Production Notes:Theme: Stress is a part of everyday life. Thanks to State Farm, it doesn’t have to be a part of buying insurance. Tone: Humorous and relatable
“A Pretty Price” :30A young couple is on a first date at a fancy restaurant. The young man soon discovers his date’s expensive tastes and worries about the impact the night will have on his tight budget.
Waiter: “Have we decided?”Young Woman: “Yes. I’ll have the carpaccio appetizer, with the compo-sition of turbot and red shrimps…”
The young man becomes uneasy as his date continues to order expensive dishes. Young Woman (continues to order): “…on pea cream with cuttlefish ink croutons and confit tomatoes, thanks“
The young woman and the waiter look at the young man, waiting for him to order.
The young man looks at the waiter. He is worried. Young man (nervous): “Um. I’ll start with water, please.”Waiter: “Anything else for you?”Young Man: “No, water’s fine.”
After the waiter takes their menus, she pats the young man sympathetically on the shoulder.
The camera zooms in on the young man’s worried face as the young woman calls after the waiter.
Young Woman: “Oh, and could I see the wine list?”VO: “Life can be stressful.”
VO: “Paying for car insurance shouldn’t be, State Farm’s low rates and multiple discounts keep money in your pocket.”
VO: “Insurance on your terms. State Farm. Stress Free.”
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video (ONLINE AND BROADCAST)
Production Notes:Theme: Stress is a part of everyday life. Thanks to State Farm, it doesn’t have to be a part of buying insurance. Tone: Humorous and relatable
“Bubble Wrap” :30 A young woman arrives at her date’s apartment and waits for him as he prepares to leave.
A young woman arrives at her date’s apartment. The young man invites her inside.
He asks her to wait while he prepares to leave.
Young man: “Hang on, I’ll be a sec.”
The young man walks over to his flatscreen television and wraps it up in bubble wrap.
He takes out a padlock and chains the television to its stand.
Young woman: “You know, I just have renters insurance.”Young man, intrigued: “Oh. Renters insurance?”
VO: With State Farm renters insur-ance it’s surprisingly affordable to insure all of your belongings, and when paired with auto insurance it can be less than $3 a month.
VO: So Leave your bubble wrap behind. State Farm. Stress Free.
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He repeats the process with his laptop, covering it in bubble wrap and securing it to his coffee table.
Production NotesTheme: Stress is a part of everyday life. Thanks to State Farm, its doesn’t have to be a part of buying insurance. Tone: Humorous and relatable “Out of Reach“ :30
A young man finds himself in a stressful situation while he is using his girlfriends’s parents’ toilet in his first visit.
The couple enters her parents’ house.
Mom: “Oh, it’s so nice to finally meet you. We’ve heard so much about you.”Young man: “Yes, yes, you too. Uh, could I use your bathroom?”
The young man gets settled on the toilet.
The young man turns to see the toilet paper roll, and realizes it’s empty.
The young man sees tissues on the counter and tries to reach for them.
As the young man stretches his arm to grab the tissue box, he loudly knocks over bottles.
The young man attempts to shimmy his way across the bathroom. He slips and falls, landing on his stomach, feet in the air.
VO: “Life can be stressful”
VO: “But when it comes to car insur-ance, State Farm makes things a little easier. We’re there for you- online, on your phone, or in person.”
VO: “Insurance on your terms. State Farm. Stress Free.”
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Prin
t
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RADIO scripts:Explanation of executions; List stations
Renters Insurance Radio Ad
Sound FX: Shattering glass, person stumbling around a house
Criminal: “You’re not home right now, are
real nice stereo.”
Music: starts playing. It starts loud then continues softly as he speaks.
Sound FX: Sounds of objects being knocked over.
Criminal: “I really like the place. It seems nice and relaxing. Pretty trendy. Oh, nice laptop. You know, it’s too bad you don’t have State Farm renter’s insurance. It doesn’t cost very much and it protects against fire, flooding, and accidents. Oh yeah, and theft too. Trust me, you have more to insure than you think, otherwise why would a ‘Smooth Criminal’ be taking it?”
Voice Over: “Protect your stuff with renters insurance, and when paired with auto it can cost less than three bucks a month. State Farm. Stress Free.”
Renters Insurance Radio Ad (Spanish)
Sound FX: Shattering glass, person stumbling around a house
Criminal: “No estás en casa, verdad? (short
tienes!”
Music: starts playing. It starts loud then continues softly as he speaks.
Sound FX: Sounds of objects being knocked over. Criminal: “En verdad me gusta mucho este
Cuesta poco y te protege contra incendios,
como yo no se las estaría llevando ahora.”
Voice Over: “Protege tus cosas con nuestro seguro de renta. State Farm. Stress Free.”
radio
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feel these advertisements are more relatable than current State Farm advertisements
Chariot pre-tested our print ads and TV spots in focus groups and in-depth inteviews. We asked 18-25 year-olds whether the executions clearly communicate the stress free message, whether that message resonates with them and whether the ads enhance the image of the State Farm brand. Respondents agreed the “State Farm. Stress Free.” campaign is both relatable and important.
“Stress is something almost everyone can relate to.”
“Hmm...I should probably get renters insurance.”
“I would be more likely to switch to a less stressful company.”
“I feel like State Farm has a sense of humor, and they are not stuffy.”
87%
78%
83%
think “stress free” is an important message
feel more positively towards the State Farm brand after viewing the advertisements
testing our campaign
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connections strategy:Chariot will utilize six key media strategies in each phase of the campaign to reach, engage and activate our target.
Placement: Be where they are.Skew spending to geographic markets with highest concentration of young adults Moment: Employ strategic timing.Reach the audience when they are most likely to think about cars, housing and insurance Assortment: Emphasize variety.
Reinforcement: Prioritize the message.Support and strengthen brand message in all media and promotions Engagement: Prompt a conversation.Create disruptive messaging by inviting them to participate with the brand rather than expecting them to listen Involvement: Embrace diversity.Capitalize on minority targeted media to effectively communicate to this diverse audience
“Regardless of race, we all have the same things to protect” -Kysa Koerner Hubbard, Ph.D., Cultural Studies on diversity in America
Chariot will direct our message according to geographic ethnic clusters. While our methods for reaching minority groups will vary, the stress free message will remain the same. Stress transcends race, and our message will resonate with Independents across the country.
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Delivering the message
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Banner AdsChariot created two forms of banner ads that will be used in our campaign. The first will be an interactive ad adapted from of our print ads. When the user scrolls over the image, “Life is Stressful” will appear across the ad enticing users to continue to StateFarmStressFree.com. The second form of banner ads will capitalize on the growing presence of Internet radio by becoming a
banner ad, an immediate stream of relaxing music will capture their attention. By clicking on the media player, the user will be directed to StateFarmStressFree.com. Users can access Stress Free Radio at any
StateFarmStressFree.com will provide valuable information to young people investigating State Farm, as well as a personalized portal for current policy-holders to manage their account, obtain rewards and interact with the State Farm community. StateFarmStressFree.com will link to the current State Farm website, as well as to the websites of our corporate partners. Policy-holders, or “Stress Free
statefarmstressfree.com website
Online Media StrategyChariot must effectively connect with 18-25 year-olds in their medium of choice: online. To combat heavy online competition, we will use Demographic and Behavioral Based Targeting. This approach involves purchasing “run of category” packages from the Google Content Network. Our ads will then be placed on sites like autotrader.com, wired.com and apartmentfinder.com. Before serving an ad, the network will use site visitors’ demographic profile and past online behavior to determine if they they fit the desired consumer
focused on people thinking about insurance.
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My HomeProvides all visitors with information on the latest State Farm news, events and special offers. This site will also provide a preview of the perks associated with being a State Farm policy-
Hosts links to State Farm’s sweepstakes, smartphone applications and Stress Free Radio
Allows current policy-holders to view further information regarding new rewards and offers, as well as customizable weather, traffic and calendar options
My Account (members only)
their account information, pay their bill and learn more about available discounts
My Perks (members only)Displays State Farm member Policy Perks that can be earned by redeeming points
Get Smart
timely responseDelivers relevant insurance information for first-time buyers and current membersIncludes a dictionary of insurance terms in easy-to-understand language
Get an Agent Links to State Farm’s nation-wide network of local agents
Get in TouchConnects site visitors through a series of public forums ranging in topics from car care to local restaurant recommendations
This phase is designed to gain new State Farm policy-holders
by showing how State Farm takes the stress out of buying the right
insurance.
This phase is about reinforcing State
Farm policy-holders’ confidence in their
decision, lowering their anxiety and increasing their resistance to the
constant barrage of “switch and save” offers.
Acquisition
Retention
arc model
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Chariot has developed a three phase plan to implement the “Stress Free” campaign. We found that because 18-25 year-olds tend to
We must consciously be building loyalty at all times.
This phase will create a sense of community
among new State Farm policy-holders by providing opportunities
to come together for shared purposes. This will
strengthen their loyalty and help them become State
Farm ambassadors.
Community Building:
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Festival Line-upState Farm will connect with 18-25 year-olds at an enormously popular summer destination for this age group: music festivals. By partnering with nation-wide music festivals like Warped Tour, Country Thunder, Viva! Chicago, Austin City Limits, Summerfest in Wisconsin, and Coachella in California, State Farm will reach over 2 million young adults.
Rather than just sponsoring each event, State Farm will offer The Good Neighbor Shuttle Service to address a frustrating aspect of concerts: parking far away. Branded golf carts and shuttle buses will drive concertgoers to and from their vehicles free of charge.
acquisition: getting new policy-holders
Time-out TriviaChariot has developed a new promotion that will take State Farm sports sponsorships off the sidelines
knowledge of renters insurance. Questions regarding the value of renters insurance will be displayed on the scoreboard during breaks in the action. Fans will have 30 seconds to text their answers to the screen. If they answer correctly, they will win a free six inch Subway sandwich through a coupon texted to their cell phone. All spectators will learn about State Farm’s affordable renters insurance, dispelling common misconceptions about cost. After the answers are revealed, a message will appear on the screen telling fans where to go to
IKEA PartnershipTo reach “Overestimators” and “Downplayers”, State Farm will partner with IKEA and offer an exclusive 25% discount to all new policy-holders. The discount will apply to all items bought at IKEA for the first two months of a new renters insurance policy. This promotion will both offer an incentive for 18-25 year-olds to purchase renters insurance and highlight the need to insure their new possessions. In addition to increased sales generated by this promotion, IKEA will receive publicity on our aggregated website and in other State Farm promotional materials.
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Internal Education ProgramThrough interviews with State Farm agents, Chariot found agents have difficulty understanding and connecting with younger policy-holders. We have developed an educational program for State Farm agents to help them connect with 18-25 year-olds. The internal education program will be delivered through six webinars broadcast exclusively to State Farm agents. The program will help the agent better understand the 18-25 year old market - who they are, what they do, and most importantly, what influences their purchase decisions.
State Farm BubbleState Farm will spread its Stress Free message to the 18-25 year-old audience through interactive digital projection displays at large malls, busy city streets and subway stations. These displays will illustrate freedom from stress by allowing passersby to interact with a collage of highly stressful images. As they pass the branded collage of yelling faces, crying babies, alarm clocks and shirts with stains, the images will disperse creating a stress-free bubble around them, visually demonstrating that State Farm lessens the stress in their lives.
Massage Chairs:The daily life of an 18-25 year old is stressful. Chariot will use an unexpected promotion with non-traditional placement to help them take a break, relax and learn more about State Farm. State Farm will host Relaxation Stations with comfortable, bright red massaging recliners. Potential policy-holders will be able to relax and recharge, courtesy of State Farm. Relaxation Stations will leave 18-25 year-olds with a positive brand image, as well as literature containing information about State Farm.
acquisition
Augmented Reality: Price your Apartment (Phone App)Augmented Reality technology allows digital graphics to be overlaid on real time video images. State Farm will use this technology to create its own interface allowing users to price the furnishings in their apartment. By pointing their smart phone’s camera at an item, the replacement cost will appear on the screen superimposed over the digital image, demonstrating the value of renters insurance. The State Farm logo will appear with a simple message: “You have more to insure than you think. State Farm Renters Insurance. Stress Free.”
Renters Insurance Placement at Bus StopsChariot will use the walls of bus shelters in key rental markets to show 18-25 year-olds the true replacement cost of common apartment furnishings. Bus stops will resemble the inside of an apartment, and an interactive calculator will add up the cost of its contents. Copy above the calculator will read, “See How Fast it All Adds Up?” This will not only emphasize the value of renters insurance, it will engage our audience during idle time in their busy lives.
acquisition
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“State Farm Rental Rater” on Facebook”The process of finding a new place to live is stressful because it is often difficult to tell which landlords are
sell and trade within the Facebook community, and the application attracts over 12,000,000 monthly active
decision making process for renters. Below each listing, State Farm will sponsor a branded pop-up feature that allows users to rate and comment on the listing or landlord. State Farm is helping renters feel more confident and less overwhelmed by their housing decision.
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Graduation CongratulationsGraduation, whether from high school, trade school or college is often the first time students consider purchasing insurance. State Farm will connect with young adults in the following ways. Emails and offers to recent gradsEmails and offers to recent gradsState Farm will partner with college alumni associations in key markets. We will send new graduates personalized emails congratulating them on their accomplishment while reminding them of the benefits of getting insured with State Farm. We will partner with Target to give recent graduates discounts on products they will need for the next chapter in their lives. Emails will contain printable coupons for 15% off select items. Cards for Parents Through our research we found young adults often turn to their parents for advice on issues like buying insurance. State Farm must capitalize on this parental influence.
acquisitionState Farm “Accelerator” Site
25. State Farm will launch “SFaccelerator,” a new website that aggregates the leading online tools for cars. Rather than visiting numerous sites, users can go to SFaccelerator.com. Comparison shopping and links will be available for AutoTrader.com, Kelley Blue Book, Car Soup, Edmunds, Car Fax, Vehix and
Farm as the independent’s ally.
“I haven’t really thought about it yet--I’ll probably deal with it once I graduate and I’m off my parents’ insurance”
-Chariot focus group
We will send congratulatory cards to State Farm parents during the months preceding their child’s expected graduation. To broaden our reach, we will target parents of high school, trade school and college graduates. The cards will congratulate parents while reminding them that graduation marks a time of independence for their child. This will keep State Farm Insurance on the minds of the audience that influences our target the most.
“35% of 25-30 year-olds say they bought their first insurance policy when they bought their first used car”7
“[Young Adults] will buy approximately 25 percent of new cars and trucks sold in the U.S. by 2010.”8
26 7 8Insuring the Catalyst Customer: Generation Y and the Insurance Industry
retention:keeping our new policy-holders
Policy Perks 18-25 year-olds love points and perks. To keep them engaged with the State Farm brand, we have developed a rewards points system. Policy-holders will earn points through various online and insurance related activities. These points can be redeemed for prizes or made into a donation to State Farm’s newest charitable cause. Providing rewards and prizes gives State Farm policy-holders an incentive to regularly visit their personalized site.
State Farm Free RideThere are times when driving is not a good option. The State Farm Free Ride program makes life less stressful by providing policy-holders with free cab rides. New policy-holders will receive complimentary taxi fares totaling up to $50 to be redeemed within the first year of their policy. Riders will mail their receipt to State Farm for reimbursement. The State Farm Free Ride program shows policy-holders that their insurance company cares about their safety.
First Time Policy-Holder’s Club
private club will receive special promotional materials like a customized pocket atlas with their name, jumper cables, tire gauge, gas discount, oil change discounts and more.
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Move-in KitState Farm will send the first 1,000 new Renters insurance policy-holders a State Farm branded canvas bag filled with items that will come in handy.
Branded to-do list magnet pad Power strip with a timer to prevent power outages and house fires Calendar with stickers to remind renters to pay rent or catch a State Farm sponsored event.
Coupons for discounts with State Farm partners Information on charity: water, State Farm’s new charitable cause
V.I.P. (Very Important Policy-Holder) Game ParkingCollege football games attract many 18-25 year-olds. Unfortunately, the stress of parking can detract from the fun. During the 2010 season, twenty preferred parking spots will be reserved for State Farm policy-holders at selected football games in each of the 31 Division 1 conferences. There will be 20 parking spots available per venue. We will allow fans to register for the V.I.P game parking lottery on statefarmstressfree.com. Winners will be notified via email. Parking locations and instructions will be sent out the week before game day.
FIFA WORLD CUP
promote the contest through multiple media channels, including emails to policy-holders, invoices, on our member
friend activities.
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Agent video contestState Farm Agents will engage in friendly competition by submitting personal videos showing why they are the agent best suited to serve the 18-25 year-old market. These videos will be posted and shared on State Farm’s website, YouTube channel and Facebook page. State Farm policy-holders will vote for their favorite videos to determine which Agents are best, earning rewards points for their participation. Top Agents will receive free publicity to help build their client list. The grand prize winning agent will receive a trip to Hawaii. These videos will allow State Farm to show a more youthful and personal side, while allowing agents to better connect with this
charity: water Partnership |
campaign. We recommend State Farm extend its current commitment to building strong communities by becoming a corporate sponsor of charity: water. Charity: water is an organization dedicated to bringing safe drinking water to people in developing nations. This New York based organization works to provide water solutions, like wells and sanitation facilities, to the over 1 billion people that currently do not have access to clean, safe drinking water. It is impossible to build strong communities without the infrastructure to provide clean water. This organization is particularly relevant to this target because it confronts a simple problem that underlies many of the developing world’s largest issues. This partnership offers State Farm the opportunity to introduce 18-25 year-olds to this emerging organization. State Farm members will feel a sense of pride as charity: water grows.
FourSquare |
and unlock “badges” every time they “check-in” at a participating location. State Farm will harness the popu-
Farm sponsored event or visit a partner retailer. State Farm will use this platform to support its new charitable cause, charity: water. During specific times, State Farm will donate $1 for every check-in up to $1 million.
BADGE 2- Sport Agent BADGE 3- Giving Back Agent
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“94% of 18-25 year-olds think highly of companies that support
charitable causes” -Chariot survey
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In addition to traditional and online placement, State Farm’s :30 spots will run on pump monitors at BP gas stations; a common pitstop for our target
To reach our target when they are thinking about the value of their possessions, Renters insurance TV spots will also run on televisions in Best Buy stores
Aqusition $34,738,610 Online $16,402,012 Magazines $2,214,500 Placebased $2,380,000 TV $7,752,800 Radio $3,800,000 Non-Traditional $2,189,298Retention $1,249,390Community $2,512,000Production Costs $1,500,000
TOTAL $40,000,000 CAMPAIGN ADDED VALUE $397,000Subway $42,000 BP $80,000 IKEA $275,000
CAMPAIGN VALUe $40,397,000
Connections Budget Summary
Pay Per Click Advertising Because 18-25 year-olds rely on search engines, we will utilize the following relevant search terms to optimize our advertising.
apartment renters insurancerenters insuranceapartments for rent inPS3large flatscreen
wiiroad bikemattressFurniture
auto insurance
local auto insurancecheap auto insurancecar insuranceinsurance
road tripused car dealerssubwoofers repair flat tire street parking Fender bender FIFA
Auto Renters
flow chart
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Key Green: Auto Navy Blue: Renters
Online:
statefarmstressfree.com Effectiveness of banner advertisements
generated feedback Use of reward points
Mobile:
Number of smartphone applications downloaded
Promotional activities through
Sales Increases in new 18-25 year-old Auto and Renters policy-holders
Monitoring Campaign Impact
Chariot will monitor the effectiveness of our campaign and use these findings to continuously reinvigorate and improve the campaign. We will monitor the following:
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evaluation
Brand Image Changes in favorable attitudes toward State Farm 31
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State Farm challenged Chariot to develop a fully integrated marketing communications campaign to attract young adults. Through extensive research, we came to understand the difficulties of engaging them in a conversation about insurance.
We learned they lead stress-filled lives and view the insurance buying process as daunting. State Farm is seen as particularly
target is turning to what they perceive as more accessible insurance brands.
The solution lies in positioning State Farm as the company that takes the stress out of buying the right insurance. The power of this positioning is rooted in a profound understanding of this audience and a new way of leveraging the recognized brand strengths of State Farm.
We bring this to life in our “State Farm. Stress Free.” campaign. This campaign juxtaposes the daily stress in our target’s life with the relative ease and affordability of State Farm. The humorous and light-hearted tone of our executions makes the campaign particularly appealing to our audience. They now see State Farm in a different light.
We deliver our campaign through a phased connections plan that will engage them in unexpected ways. Each touch point is designed to reinforce the message of how State Farm can help alleviate stress in their busy lives. By highlighting the ease and affordability of buying a State Farm policy, Chariot will transform State Farm from an intimidating company to our target’s brand of choice.
Conclusion
Resources: Business Source Premier, EBSCO Host, Education Resource
and American Life Project
SourcesBooks: American Generations: Who they are. How they live. What they think.;
to Creating Great Advertising; Luke Sullivan, The Tipping Point: How Little Things
Publications: Advertising Age, Business Week, Forbes, The New York Times,
The Washington Post
Websites: www.adweek.com, www.adwords.google.com, www.allstate.com, www.appbid.com, www.amfam.com, www.beyondpetroleum.com, www.blockbustergolfcarts.com, www.blogspot.com , www.bls.gov, www.charitywater.org, www.collegesintheusa.com, www.csnsofas.com, www.eff.org, www.eventmarketer.com, www.expedia.com, www.facebook.com, www.fhwa.dot.
wwww.ikea.com, www.inventorspot.com, www.ircweb.org, www.marketresearch.com, www.marketwatch.com, www.millenialmarketing.com, www.milwaukee.bizjournals.com, www.nytimes.com, www.npr.org, www.orbitz.com, www.pewinternet.com, ww.progressive.com, www.resourceshelf.com, www.roadtrips.com, www.slate.com, www.stadiumguide.com, www.statefarm.com, www.twitter.com/StateFarm, www.youtube.com
Blogs: blogspot.com, www.thecarinsuranceblog.com, www.finance4youth.wordpress.com, mashable.com, www.worldcupblog.org, www.yaybia.com
Advisor: Howard Liszt
Blake BensmanBrian BernierJosé Manuel ChiangKellie CoitCameron CronkiteHilary DanielAlex DeNuccioAnna FarrellAbby FaustNicole FilterLauren FinkKatie FunkDerek GisvoldTanner HallIan KitchenChad KlugeLucas LarsonOlga LobasenkoTaylor LordCorinne LongDiana Manuel Shauncey O’RourkeSarah PoluhaTyler PurcellLaura RaskJordan RothenbergTom SantoriAndrea StyczinskiBrittany SylvesterNathan WaldvogelLisa Vander Zanden
A special thanks to: John eighmeyEarl HerzogJennifer JohnsonSarah KernDamien Salinas
