STATE FARM INSURANCE PROJECT Primary Target Memo: Transitioners Our primary market is "Transitioners," a group of young adults currently experiencing a significant life transition. They are classified not by age, but by the life transition they are experiencing. Transitions include high school/college graduation, moving off campus/into an apartment, buying a car, and starting the first job. Some young adults will experience multiple life transitions while 18-25, whereas others will only experience a few. Our primary market is concerned with transitioning from their old life into their new life. Will they get a job? Who will they live with? Can they afford the extra expenses associated with their transition? Transitioners value their independence, and will attempt to make transition-related decisions on their own. However, they still value their parent’s opinions, especially on complex products such as insurance. Transitioners are busy: they work hard and play hard. While they put a lot of effort into school and work, they make sure to find the time for a social life. They enjoy spending quality time with their friends, and often socialize with close friends at home. Transitioners go to places where the social scene is at their level. The people they socialize with tend to be of similar age and mindset. As they transition, these young adults are starting to become more responsible with spending money. However, they do not want to sacrifice their identity or comfort level to save money. It is not unusual for Transitioners to purchase upscale/trendy/cool items at discount shops such as Target or IKEA. They are not willing to sacrifice their social life to save money, but they won’t spend beyond their means. For example, during the weekend they might “pregame” at home instead of buying expensive drinks at a club. Transitioners are in constant contact with their friends. They are constantly texting, e-mailing, and instant messaging/G-chatting their friends. Like all young adults, they are active online. A majority of Transitioners have a Facebook account, and a few may have a Twitter account. They view social media as a private space, a way to strengthen the ties they have with friends and family. They would consider unsolicited communication from an insurance agent or company an invasion of privacy. The search process does not define our target market. Some Transitioners may spend a lot of time researching insurance companies, while others may simply stick with their parents’ company. Either way, their search process ends once they have purchased their policy. While they may care about auto insurance, they are simply too busy to put insurance at the top of their priority list. They recognize that insurance agents can help them understand insurance, but want to be the ones to initiate contact. They worry that agents will be pushy and oversell. Approximately 8.1 million young adults can be classified as “Transitioners.” Transition-relatedmessaging will occur within a 3-month window, so that State Farm can reach them in all stages of the transition.