Columbia College Chicago
State Farm / Life Handled
State Farm Insurance, a nationally recognized brand, wants to increase its Millennial customer base with a particular focus on auto and renters insurance. Recently, reaching this particular demographic has been a challenge for State Farm. A campaign specifically targeted towards Millennials is slated to run from May 2010 through April 2011.
Through both secondary and primary Millennial research, Tempo has found several areas of opportunity for the brand. Key target consumer concerns include: • The high cost with • Little understanding of insurance category as a whole seemingly no return and what it provides • The laws pertaining to both • Uncertainty and worry about auto and renter’s coverage in the event of an insurance emergency
While traditional media will be utilized in Tempo’s media plan, we recommend a heavy concentration on newer forms of interactive media. The focus will be on placement in areas our target frequents, both in person and online. These strategic placements include RFID billboards, interactive restroom & club placements, nontraditional mall elevator advertising, closed circuit gym television and more. Unexpected and engaging media tactics will not only reach our target effectively, but also lead to the "take action" response State Farm desires.
CREA TIVE Through a fun and engaging campaign, State Farm will position itself to directly communicate with our 18-25 year old demographic. “Life Handled” will encompass several different relevant scenarios in which our target can easily relate to and understand.
SWOT & Positioning
Credits & Sources
IC IMC M
To both enhance the target's understanding of the insurance category and simultaneously increase State Farm's brand preference, the Integrated Marketing Campaign will focus heavily on our target's daily consumer habits. We will begin with an integrated campaign to garner interest and national PR exposure. This includes, but is not limited to, social media and pop culture influence. Additionally, there are great incentives offered to new State Farm customers. The ultimate goal is to increase peer recommendations, referrals and Legacy customer brand commitment.
SITUATION ANALYSIS Brand Satisfaction
Highest possible financial ratings from A.M. Best, Standard & Poor's and Fitch (2008)
ER SATISFA ION
• #1 in ACSI's 2009 P&C customer satisfaction survey (followed closely by Progressive and GEICO)
CU S TO
State Farm’s mission is to help people manage the risks of everyday life, recover from the unexpected, and realize their dreams.
• # 2 in overall auto insurance satisfaction and policy offerings- J.D. Power & Associates • Lowest satisfaction rating was in J.D. Power's pricing category
• 42.4 million auto insurance policies; 17,627 agents • Largest auto & home insurer in U.S. • #31 on Fortune 500 list • $60 million in charitable giving (2008) • Extensive youth outreach efforts (e.g. "Steer Clear", Project Ignite, Youth Advisory Board, etc.) • Award winning multicultural initiatives (Asian MBA's Top 10 Companies, 20 Best Companies for Diversity, etc.) • New and niche media efforts (e.g. Pocket Agent, thanksforbeingthere.com and OK Go YouTube sponsorship)
Current Marketing Efforts
hile State Farm has a strong lead in the industry, their customer base is aging and competitors like GEICO and Progressive are increasingly gaining share in the 18-25 year old bracket. State Farm is currently under penetrated in this market, which is vital to the maintenance of their overall market lead.
• State Farm is positioned as the reliable leader you can trust with the image of a “good neighbor.” The current ad campaign, “Intersections” showcases different ways State Farm’s key products, services, agents and great rates/savings are “there” to help consumers no matter what challenges life presents.
• State Farm is also to be congratulated for being the newest Advertising Walk of Fame member, having the 7th most remembered branded jingle / sound and the recent viral sponsorship success with Ok Go.
Tag Line “Like a good neighbor, State Farm is there”
Brand Tone Inclusive • Honest Good Hearted Funny • Inoffensive
State Farm / Situation Analysis
The Insurance Industry: Price Wars & Sagging Profits As overall growth rates for the auto insurance industry slow, competition amongst U.S. insurance providers will continue to intensify. Growth in this sector of insurance directly correlates to the number of insured vehicles on the road.
• With the economic downturn, the average vehicle age increases. Depreciating auto values lead policy owners to downsize policy coverage (Swallen, 2008).
• Declining profit levels are leading to fierce price competition because of slower revenue growth (Swallen, 2008).
• Price is not a sustainable advantage and companies should get ahead by advertising unique product features and superior levels of service (Swallen, 2008).
• It has been predicted that one in six national drivers will be uninsured by 2010 (IRC, 2009).
Auto Insurance Revenue Trends (In Millions) 70,000.00
Auto 60,000.00 Auto 70,000.00 52,500 Auto 50,000.00 70,000.00 60,000.00 Auto 40,000.00 70,000.00 60,000.00 50,000.00
30,000.00 20,000.00 10,000.00 0.00
70,000.00 60,000.00 50,000.00 40,000.00
Insurance Revenue Insurance Revenue (In Millions) Insurance Revenue (In Millions) Insurance Revenue (In Millions) (In Millions)
Auto Insurance Revenue Trends Trends (in millions) Trends State Farm Although State Farm is the revenue leader amongst Trends revenue growth is top competitors, overall industry State Farm on the decline. Progressive has Trends grown, but since has Allstate
50,000.00 40,000.00 30,000.00 20,000.00 40,000.00 30,000.00 20,000.00 10,000.00
30,000.00 20,000.00 0 10,000.00 0.00
2003 2004 2004 2005 2006 2006 2006 2007 2007 20082009 2003 2004 2005 2008 2009 2003 2005 2007 2008 20,000.00 10,000.00 0.00
10,000.00 0.00 0.00
FIERCE PRICE COMPETITION UNINSURED DRIVERS DOWNSIZED COVERAGE
decreased, while GEICO has shown overall gains. State Farm
60,000.00 50,000.00 40,000.00 30,000.00
2003 2004 2005 2006 2007 2008 2009
Allstate State Farm GEICO Allstate State Farm GEICO Allstate GEICO Progressive Allstate Progressive GEICO Progressive GEICO Progressive Progressive
2003 2004 2005 2006 2007 2008 2009 2003 2004 2005 2006 2007 2008 2009
46% however, only 25% of those
In 2009 of consumers compared auto insurance quotes, consumers actually switched to a new provider
Cutting edge smart phone applications, 24/7 internet access to agents and services, pre-emptive information – these are all high tech resources Millennials seek. Millennials value and crave innovation.
One such innovation insurance companies can and should provide is telematics. For example, telematics will allow drivers to receive theft notifications, track stolen vehicles, provide driving assistance, create safe performance incentives for high-risk drivers, offer early warning diagnostics, maybe even offer “pay as you go” insurance …all through web and mobile portals.
During these times of economic struggle,
consumers want personal service
from agents along with the convenience of checking policy and quote specifics online
“Y” Matters • Insurance companies need to understand how to communicate and creatively reach the Millennial market.
The Future Is Now
Millennials are a purchasing force to be reckoned with; born between 1980 and 1995, they stand 70 million strong. Also known as Gen Y, they carry the potential to restore strength in companies experiencing losses from the decreasing seventy six million baby boomers.
State Farm / Situation Analysis
$75,000– $149,999 High School Some College
$75,000– $149,999 High School Grads
$75,000– $149,999 High School Grads
"That's Allstate's stand, are you in good hands?"
"GEICO could save you 15% or more in 15 minutes or less"
"Now that's Progressive"
"Buy. Click. Save."
Cool, calm, collected, relaxed and secure Provides a reliable sense of security for even the most difficult situations
Humorous, helpful & peppy Arranges competitor prices in a way that adds to the benefits of their discounts, overall affordability, and accesibility
Cartoony humor, light hearted
Approach / Message
Quirky, offbeat Uses comical characters to take the seriousness away from the insurance category, as well as reinforce their low cost and ease of use
2008 Insurance Industry Market Share
An easy to use online based company, using animated characters to promote affordable rates
Consumer base is concentrated in the 35-44 year old range, 18-24 year olds being the smallest portion
C O M PA N Y Company Size by Number of Employees
$628.7 M $1,916
25,929 $12,840.10 M
1,750+ 214.7 M
CONSUMER PROFILE Consumer Demographics
“Multicultural Millennials are more
likely to be aligned by
interest rather than ethnicity” – Kevin Walker, Culture Lab
• 15.4% of Millennials are married
• 52% have college experience • 48% do not have college experience
• 34.8% of (16-19) year olds and 19.5% of (20-24) make minimum wage
• 59.8% White • 18.5% Hispanic • 14.2% African American • 4.3% Asian
• 18-25 years old
• 3.2% Other
Multicultural Millennials • It has been estimated that by 2050, over half of the U.S population will be multicultural • The Hispanic and Asian population are growing at a higher rate than any other ethnic groups
• 50.5% Male 49.5% Female
Occupations • Students • Hourly wage positions • Entry-level positions
• 80% of Baby Boomers describe themselves as white, while only 55% of Millennials refer to themselves as White
“Is 'Multicultural Youth Marketing' a
“We are used to diversity. After all, we
GenY Perspectives for NASA –
grew up in diverse environments”
redundancy?… Gen M not ¡Millennials: A Melted Pot, entry on Millennial Marketing blog –
embraces diversity, they expect it”
State Farm / Consumer Profile
Seek advice from respected elders Financial freshmen Independently dependent Want purchase guidance Practically motivated Value good service and affordable pricing
Entrepreneurially spirited Express individuality
• 25 was the average age of a firsttime home buyer in this age bracket (3 years younger than the two previous generations)
Streamlined and Efficient Customized and Targeted Interactivity & Real-Time Info Straight Forward Brutal Honesty Worthy of Respect Authentic Behavior Open Minded / Integrated
• 25% of new cars sold in the U.S. will be purchased by Millennials by 2010 and 40% by 2020 • 94% of GenY approves of interracial dating (vs. 84% for GenX) • Just 17% (vs. 24% for GenX) of GenY feel race is important in voting
Family and friends, trusting relationships, global awareness, respect, accessibility, immediacy, helping others, community connections, “getting rich."
TIONTO A D MODERN
Confident, diverse, entitled, independently dependent, tech savvy, non-traditional, invincible, positive, and entrepreneurially spirited.
DIC TECHN OLOGY
• 43% of Millennials turn to their parents for assistance on financial issues
Slow and Unwieldy “One Size Fits All” Passive Learning Corporate Speak Dishonesty Incompetent / Politically Savvy Playing “Games” Intolerance
Millennials think of themselves as “unique,” so they prefer a tailored, connected and customer-centric experience while making purchases.
Michael is a 21 year-old music business major at Columbia University in NYC. Outside of school, Michael is a musician and travels all across New York on a regular basis. He rents an apartment with a close friend and drives a used Toyota Corolla. His main interests are music, technology, cooking and politics. In his spare time, Michael Facebooks, emails and uses his iPhone to keep in touch with friends. He also admits to being a huge YouTube junkie! Currently, Michael has Allstate auto and renter’s insurance.
Chris Patel Chris is a 19 year-old mechanic working for his father’s auto shop, Kramer’s Auto in Houston, Texas. He graduated from the Universal Technical Institute Trade School of Houston, turning his passion for cars and mechanics into a promising career. Chris loves exercising, motorcycles, surfing the internet, and hanging out. He Facebooks, emails and loves listening to his iPod while working out and building bikes. Chris also enjoys late night television and popular YouTube clips. Currently, Chris commutes from Highland Heights, Texas with his parent’s car but plans on purchasing his own vehicle soon. For now, he is on his parent’s State Farm insurance.
Sarah Livingston Sarah is a 24 year-old Computer Tech Specialist at Intratek Computers in Long Beach, California. She graduated from the University of North Carolina with a degree in Computer Science and served as a Technical Specialist in Iraq for two years. In her spare time, Sarah enjoys running, tennis, playing with her dog, and watching primetime television. She is also an avid Facebooker and Twitterer. She loves new movies, listening to music, and surfing the net with her iPhone. Currently, Sarah has health insurance through her employer and Geico car insurance.
State Farm / Primary Research
PRIMARY RESEARCH B2 Research Objectives • Assess feelings towards insurance category • Evaluate most important insurance attributes
“Millennials want insurance pro viders to
” s d an
• Examine attitudes towards State Farm and primary competitors • Explore insurance research and purchasing process • Identify which (if any) current competitive advertising campaigns resonate
VIE “When a cu W switches becstomer rates, they’ll ause of go to the
Mixed Methodology • Business to Business Interviews – competitive insurance agents as well as State Farm Agents
Ethnography – brick and mortar shopping observations, accompanied shopping, mystery shopping
• Netnography – online shopping observations, review/audit of blog writings and monitoring of Twitter updates
• Quantitative – fielded surveys (electronic and in-person) nationwide, targeting independent and dependent 18-25 year old market
• Qualitative – conducted multiple focus groups, friends interviews and
a communications check. Discussion included traditional probes and more unconventional projective techniques, as well as a creative review/discussion
k hin e t s l ia nc lenn nsura o get l i “M the i out t , s y t tha str y i one u ind eir m
Business t o Interview Business s– Competitiv State Farm e & Agents
hat 's w ] t a th rm and tate Fa g n [S
we e wro our v h pro wit
& e c vi age
• “From internet to office, I’m still confused” – Despite doing some online research at home, Millennials are commonly still overwhelmed when entering an insurance agency • “Say it to my face” – Target likes to end the purchasing decision with actual human interaction because they then feel more comfortable and confident with their purchase • “It’s not all about me” – Even after face-to-face interaction Millennials are still left feeling like part of the crowd and not an individual customer
Netnography Online Research “I never thought of
insurance as 'hip' –
“I’ve recently heard that GEICO is going to use Nicolas Cage in their commercials… you know to make them even
Blog Commentary – Representative Comments • It’s a love/hate thing – Bloggers tend to only write about insurance when they love it or hate it • Insurance is perceived to be a biased industry – Bloggers see insurance as unfair to young people because of the high prices • Insurance is a necessary EVIL – Bloggers see car insurance as a legal necessity where the company sees more benefits than the customer • State Farm gets mixed reviews – Millennials blogged about their good protection, quick response and great actual human interaction. However, bloggers also mentioned they had a difficult time with State Farm after an accident.
Accompanied & Mystery Shopping • “I’m more than a policy number” – Millennials feel like its all business with no concern for the individual
Brand Tags www.brandtags.net allows consumers to “tag” top of mind words and phrases associated with brands. These “tags” are then complied in an ever-growing database (to date, “1.7 million tags and counting”). Brand association tags are then arranged in “clouds” – word sizes representing how frequently (or infrequently) the word is posted. It’s a visually quick way to see top of mind brand associations (to reduce repetition, the word “insurance” has been removed from the following).
01% 05% 49%
Yes [89%] 29% 05% 05%
Do you currently have some type of insurance?
What type of insurance do you have?
If you could afford any insurance provider which would you prefer?
71% 23% 67% 17% 11%
How do you feel about insurance overall? 52% 41% 27% 05% 06%
• Auto insurance coverage is more prevalent – 71% have auto insurance; only 23% have renters
• Target doesn’t “get it” – 50% surveyed “only know the basics” about their plans
• Leading top of mind brands vary – State Farm, GEICO & Allstate have highest top of mind awareness
• Comfort IS important – the majority of the target agree that the most
important part of insurance is to provide comfort, security and peace of mind
• State Farm is the #1 desired brand – the majority agree that they would
choose State Farm over any other provider “if they could afford it”
Focus Groups & Projective Techniques "WHAT IF" SCENARIO PLAYING: WHAT CARD DO YOU WANT TO SEE AT THE ACCIDENT SITE?
Key Findings • Target is skeptical of quirky unsubstantiated advertising. Millennials are media savvy and not motivated by ad campaigns that simply gain attention by humorous “trickery,” without any benefits. •
Target wants to be looked at as individuals, not as an overall demographic.
Target is generally uneducated about insurance.
State Farm is well respected and trusted.
Projective techniques reveal that State Farm is a little dull in tone and not perceived as exciting or fun.
1. State Farm
Millennials are most concerned with being covered, the target wants to feel confident that someone has truly "got their back," someone who understands who they are. This coverage confidence trumps all other concerns – including price.
Online Tacky Easy
one insurance company would look “If
Blue collar crowd
Older adult crowd
Held as a block party
Cocktails would be served
Would serve appetizers
Overly happy people
Charge to attend the party
Smooth jazz music would be playing
at us as individuals
BRAND PERSONIFICATION: IF ___ THREW A PARTY, WHAT WOULD THIS BRAND’S PARTY BE LIKE?
“It’s more important to know that you are completely covered rather than paying a low price”
3. Same insurance company as mine
TOP OF MIND WORD ASSOCIATIONS
• Price is important to target, but not as important as trustworthy coverage. Particularly amongst "switchers" and those who know about problems that can happen. •
State Farm / Primary Research
Tempo At Work
SWOT & POSITIONING Positioning Statement State Farm provides the most reliable insurance coverage for Millennials, unlike key competitors who often compromise exceptional service for a perceived lower price.
• Target market does or will soon require independent insurance • Millennials are becoming primary consumers in the auto
• Can utilize more social networking platforms and other
technology: Facebook, Twitter, mobile applications, gaming
• Millennials are family oriented and trust family oriented brands
• State Farm is the market leader in property / casualty insurance industry
• Tightening budgets puts focus on value and policy coverage
• State Farm has built its reputation on trustworthiness and reliability
• Millennials appreciate personal service including attention
• State Farm is considered to be a high quality brand by Millennials
from their insurance agents
• Totalling over 17,000, State Farm has the biggest network of agents offering
• 18-25 year olds see State Farm as an "old" brand
• Current communication does not resonate with 18-25 year old target • The largest group of policy holders for State Farm are baby boomers. • State Farm is perceived to be too expensive by Millennial target • J.D. Power rated State Farm below GEICO in the pricing category • Negative feedback and fan "hate" pages on social networking sites like Facebook • Category as a whole is disliked because insurance is considered a "necessary evil"
Threats • Lack of concern for insurance among 18-25 year olds • Millennials may be on parents' policies for longer than expected
• Economic downturn is making competitive price messages
more appealing; and, causing insurance coverage cutbacks
• Car insurance is often purchased only because it is required
• Competitors (especially online companies) are focusing on
discounts and price promotions; not coverage benefits
• "Insurance Uneducated" Millennials may not yet appreciate or
understand what coverage means.
The Brief Objectives
Tag Line "Life Handled"
• Increase interest and preference for State Farm
auto and renters insurance by 15%
• Contribute to a 10% retention increase amongst
empo demonstrates State Farm's wide array of customizable features and benefits through a variety of non-traditional media outlets. Each message is adapted to the advertisement's specific location, as well as the target market's wants and needs.
State Farm legacy policyholders
• Increase State Farm policy (auto and renters)
acquisitions by 5%
– to be realized by May 2011
• Reposition State Farm to appeal to Millennials while
maintaining current customer base (and Millennial parent policyholders)
• Demonstrate that State Farm offers cost effective Auto
and Renters insurance policies
• Ensure State Farm's Legacy customer base truly values
State Farm's quality coverage
If I choose State Farm, I will always be taken care of.
Unexpected and engaging with serious underpinnings, while avoiding being preachy
• Agents 24/7 advise, guide, handle
Men's Bathroom and Bar/Club Advertising
Women's Bathoom and Bar/Club Advertising
• 24/7 internet access • Quick claim processing • Flexible plans to meet needs • Discounts – good student, accident free, etc.
Bar Coasters That Look Like Napkins
Out of Home Advertising
hese OOH executions reach urban, suburban and rural markets. The advertising addresses State Farm's comprehensive and customizable coverage options, emphasizing convenience and reliability. Tempo's research found that the target market is independently driven. Also, they still expect immediacy and simplicity when processing new information, which is reflected through this medium.
Realistic extensions capture attention and increase reach for the "Life Handled"
State Farm / Creative
Mall Elevators Pizza Boxes Food Trays
State Farm / Creative
empo's campaign targets auto and renters insurance clients, as well as military professionals with an engaging twist. The tagline, 'Life Handled,' still provides that desired sense of protection and coverage, even when the Mom and Dad aren't near. These executions will be used in print, out of home, as well as other media outlets.
"Money" – :10
"Fast" – :10
Man: To save you money, we have decided to cut our commercials sh…
Man: This commercial is fast. I talk fast. These are fast
hrough the use of light-hearted humor, State Farm emphasizes affordability and quick response time, which Tempo's research has shown resonates with the target market. Entertaining imagery as well as unique copy engages the viewer, captivating their attention while articulating State Farm's position and message.
[Static cuts in, interrupts transmission]
"Legacy" – :10 [Man adjusting tie]
VO: For all your differences… [Son with a tattoo of a tie on his chest]
[Following slides shown fast: Cheetah; Super Sonic Jet; Twista; DeLorean; Bullet Trains; Ninja, State Farm logo]
VO: At least you share one [State Farm thing logo fades in]
Switch & Save up to 40%
[State Farm logo fades in]
Fast claims processing
VO: Whoa, that's fast!
Woman: This is a ten second commercial. It took me 2.5 seconds to say that.
Woman: Oops 3.1 seconds. This leaves me four seconds...
Woman: ...to tell you we’re there for you every second of the day.
"Seconds" – :10 24/7 Service 1-877-291-9013
INTEGRATED MARKETING 360° Objectives • Produce a 30% State Farm brand interest increase amongst all Millennial target
• Drive traffic to State Farm microsite,
www.LifeHandled.com, agent sites and offices
• Attract and retain Millennial target across various social media platforms
• Contribute to an overall increase in State Farm insurance purchases
– to be realized by May 2011
Street Team: Handled The "Life Handled" Street Team will connect with our target market during various promotional events in the top 30 key college markets. Selected students will comprise the "Life Handled" Street Teams (four members per market, based on enrollment trends). Each student will receive college credit, a recommendation letter, and a $500 honorarium toward the student’s insurance needs. • Selected street team students must have a 3.5 GPA, supply a letter of recommendation, and submit a confessional video about a secret "Life Handled" moment to the microsite.
• Develop non-traditional initiatives, events, and digital tools that allow our Millennial prospect and Legacy customers to interact with the State Farm brand
• Establish effective multicultural alliances and co-sponsorship opportunities
• Produce social media initiatives that captivate interest, generate trial, and repeat visits
• Create a strategic program for State Farm agents to develop
their own social media presence, communicate with prospective and current legacy clients, and handle service issues
Tempo will develop a new State Farm microsite: www.LifeHandled.com. State Farm new and legacy customers will have a VIP login ID. Those outside State Farm's client base will still have multiple features at their disposal such as exclusive contests, "Life Handled" 24/7 agent chat, stream pre-loaded music and "Life Handled" branded swag. The microsite budget encompasses all promotional items.
Budget: $3,012,500 • VIP: Handled Part One – Consumer Generated Content: State Farm new and legacy clients can also upload their own “life handled” stories, via pictures and video. Part Two – VIP Key Fob: After sharing their stories State Farm will grant a VIP Life Handled key fob to elite clients gaining exclusive access to all State Farm sponsored events. Part Three – Instant Billboard Fame: The key fob will contain a RFID chip permitting clients within 500 feet of our interactive billboards (see Media Plan for details), to send a personal message or photo. This initiative integrates the "Life Handled" campaign into the target’s everyday life.
• Your Music: Handled – Partnership with iTunes will offer the target the ability to build their own playlist, select celebritymade playlists, or create their own ringtone on a monthly basis.
Guerrilla Stunts: Handled Random Acts: Life Handled The decals will read:
Tempo will launch the Random Acts: Life Handled campaign May 1st. Street Teams will place various decals across our top 30 markets on car windshields, front doors, gas tanks, live music venues and various nightclubs. Decals will highlight LifeHandled.com, where participants can log-in and print vouchers for free car washes and gas at Shell Gas Stations, oil changes at Jiffy Lube, coffee at Starbucks, pizza at Pizza Hut, and one month membership at Bally’s.
“Free Carwash: Handled”
State Farm / IMC
Keep The Change: Parking Handled For two hours, in our top 30 markets, the street team will “cover” the cost of parking. These highly visible stunts will generate buzz, giving the "Life Handled" campaign press coverage from local news stations, newspapers, blogs, websites and more.
“Thirsty Ride? Gas Handled” “Over 3,000 miles? Oil Change Handled” “Free Pizza: Pizza Handled” “Morning Brew: Handled” “Muffin Top? Gym Handled”
Flash Mob: Handled
Building Projections: Handled
We will transform neighborhoods in 30 cities into massive out-ofhome galleries with the synchronized, animated "Life Handled" campaign, complete with audio. These projections will also be a part of the State Farm sponsored concerts and festivals. These spectacular, interactive displays will draw massive crowds, create buzz and draw media attention to the "Life Handled" campaign.
State Farm will host a Flash Mob stunt in the top 3 target cities. Simultaneously in each of these cities, a mob (participants register through microsite) will assemble in a pre-determined location and perform a mass “trust fall.” The flash mob will be promoted via social media and press e-alerts. A film crew will be in place to help build viral buzz, social media video uploads and blogging. Budget: $20,000
Social Media: Handled
Facebook.com "Stalkers" Life Handled Application – The Stalkers: Life Handled Facebook Application asks users to join the new Life Handled Fan Page. Once a member, users will have the ability to discover their top Facebook stalkers. However, in order to receive a fully ‘handled’ stalker report, users will have to sign up for State Farm renters insurance. Once they do so, they will gain access to data confirming the names and frequency of profile and photo visits for everyone that has clicked on their profile. Users will also be provided additional security opportunities to add more protection to their profile page in order to ‘handle’ their stalkers.
Youtube.com Life Handled Channel: Consumer Generated Content Contest – The "Life Handled" YouTube Channel will invite Millennials to post creative and humorous videos showcasing how to handle a big date, job interview, proposals, first apartment/condo, meeting the parents, buying a car and other topics of interest to Millennials. 500 Millennials will win an 8GB iPod Nano and 10 lucky winners will win concert tickets to a State Farm co-sponsored concert.
"Twitter Handled" – The funniest tweet contest will begin in February, lasting 15 days. Followers will create the funniest tweets using the word “handled.” Users will have the ability to tweet their vote on the “lines” they feel are the best. The winner will receive a $100 Gift Card to Shell Gas or Starbucks. Entering this contest will drive followers to join Life Handled Twitter page.
Life Handled Fan Page – Life Handled Facebook fans will get weekly pop culture quizzes, Millennial trivia and other updates (even some insurance problems or concerns clarified). Fans can also win concert tickets and swag.
Bills Handled – State Farm will pay $10,000 worth of bills (mortgage, credit card debt, school loans, tuition, parental medical expenses) for 80 individuals or non profits. The "Bills Handled" contest will be initiated at local State Farm agent offices where participants sign up and receive a code. Participants need to place their code in their Facebook status encouraging their friends to "like" and pass it virally through other media. "Bills Handled" voting will be promoted via advertising tags, viral videos, tweets, PR e-alerts and Life Handled's microsite splash page. Budget: $875,000 May
Microsite: LifeHandled.com Building Projection Random Acts: Handled Keep the Change: Parking Handled Flash Mob: Handled Facebook (All activity) YouTube Contest Twitter Contest Life Handled Phone Application Dorm Theft: Handled Project Natal-Xbox 360: Life Handled What Germs? Life Handled Workouts: Handled Award Shows Concerts: Handled Multicultural Festivals: Handled
August September October NovemberDecember January February
Agent Template: Handled – Tempo will extend continuity marketing into State Agent specific blogs, and all social media sites. All feeds will be generated from the newly created corporate blog to ensure the "Life Handled" campaign is consistent.
Life Handled Phone Applications – State Farm will be the official
Zynga partner and offer its games free of charge to State Farm clients who utilize the Life Handled application. Zynga, developer of Mafia Wars, Farmville, Poker and other socially interactive games attracts and retains over 60 million users. The phone application will also offer: • Use GPS to feature real time traffic updates, accidents, and alternative routes. •
Allow for bill payment
• GPS augmented reality feature to help you find your car in parking lots. • Send automatic mobile alerts about missed payments, changes in policies, and • Speech to Text: allows drivers to new insurance offers. be hands-free but still have ability to text and surf the web • Find public transportation and taxicabs when life has been ‘mishandled.’
Special Events: Handled Latin Grammy Awards and BET Awards Sponsorship: The 2009 Latin Grammy Awards had the highest ratings ever with 12.8 million viewers (including 2 million 18-34 viewers). The 2009 BET Awards also had their highest ratings ever with a 61% increase. State Farm will be the exclusive insurance sponsor of both 2010 shows, with "Life Handled" spots. State Farm's Life Handled logo will also be on the red carpet...shown many times prior, during and after the shows on various sites, uploads, blogs & publications. The "Life Handled" celebrity lounge will ‘handle’ celebrity interviews with questions submitted on LifeHandled.com. Budget: $150,000 VIP Life Handled: State Farm will sponsor VIP lounges for their new and legacy clients at various high profile concerts and multicultural festivals • Lockers to 'handle' personal belongings • Air-conditioned lounges • Golf carts will be on hand to transport people • Private bathrooms to various parts of the festivals and concerts • Light food and beverages
Budget: $71,200 Concerts – Handled: According to Tempo’s research, State Farm’s sponsored concert series will reach an estimated 1.8 million concert-goers. Fifty pairs of tickets will be given away, via Facebook contests, for each of the following festivals: Summerfest (Milwaukee, WI), Lollapalooza (Chicago, IL), Austin City Limits (Austin, TX), Coachella (Indio, California), Mile High Music Festival (Denver, CO), Ultra Music Festival (Miami, FL) and Bonnaroo (Manchester, TN). Aside from the VIP Lounges being available for current clients, the "Life Handled" Street Team will be in attendance to give away 1,000 wristbands branded with ‘LifeHandled.com.’ Participants who log onto the site will have the opportunity to download 1 free playlist from our partnership with iTunes.
Multicultural Festivals – Handled: State Farm will sponsor VIP lounges for their clients at various high profile concerts and multicultural festivals. The VIP experience will include: • Gay Days (Orlando, 150,000+) • Puerto Rican Parade (NYC • Cinco de Mayo (Dallas,150,000+, 80,000, Chicago 1.8 Million) Chicago 200,000) • Bud Billiken Parade (Chicago, 75,000+) • African American Parade (NYC, 900,000+) • Gay Pride (NYC 750,000+, SF 1.2 million+, Chicago 450,000, Atlanta 300,000)
Promotions: Handled Dorm Theft – Life Handled: According to Tempo’s research, most college students are unaware that university dorms do not insure personal possessions. Tempo recommends State Farm partner with the top 20 colleges and donate $300,000 per school. In turn, State Farm will be the official dorm insurance partner and listed on all university housing applications. Students who sign-up for State Farm renters insurance will have priority access to the "Life Handled" Street Teams, their move-in help and VIP "Life Handled" golf carts.
Project Natal (Xbox 360)– Life Handled: State Farm will integrate with the Dec. 2010 release of Xbox 360 Project Natal. Players will be able to interact with the new Indy Racing Game using gestures or spoken command and have the opportunity to upgrade to State Farm Auto insurance to better 'handle' game play.
Budget: $200,000 What Germs? Life Handled: Proving that State Farm is committed to helping handle their targets’ life in anyway imaginable, State Farm will place branded "Life Handled" hand sanitizer stations in 20 markets nationwide. They will be strategically placed but not limited to malls, concerts, gyms, and all State Farm sponsored events. The stations will be branded with messages that read: “What Germs? Life Handled”.
Media Campaign May 2010 – May 2011 Media Objectives •
Reach 80% of 18-25 year olds with an average frequency of 6
Increase non-traditional media efforts by 60%
Increase social media presence by 30% – to be realized by May 2011
Heavy-Ups Rationale Spikes in web searches for auto insurance occur during the specified months with nearly identical trends appearing in visits to State Farm’s and competitors’ websites. This indicates these months are fertile times for concerted marketing efforts. The target appears to be in the research/information gathering period for potential purchase decisions.
Media Strategies •
Pulse both non-traditional and traditional media vehicles with heavy-ups during specified months (see scheduling)
Focus on media vehicles with a high concentration of Millennials as a way to reach more multicultural Millennials
Create a national plan using both traditional and non-traditional media, with additional media concentration in key markets.
Media Scheduling •
Heavy-up periods (All Selected Media Vehicles) June 2010 – August 2010
Support periods September 2010 – May 2011
Market selection was based on information provided by Nielsen Spectra Infinet against our 18-25 year old demographic
Top 10 markets were selected based on target population concentration
“Young people today are more likely than ever to associate with a range of cultures and heritages and unlikely to define themselves narrowly” – The Multicultural Mindset of the Millennials, Ogilvy Blog "Fresh Influence"
State Farm / Media
Non-Traditional College Cafeteria Trays September through April placements will target seniors preparing to graduate and enter the workforce. $600,000
Mall Elevators Nontraditional, eyecatching, unexpected. These elevator ads catch our target in their everyday lives. $750,000 Bar Posters These posters will appear throughout popular bars and clubs, including bathrooms. $500,000 Taxi Tops Taxi tops are a quick, fun way to remind Millennials in heavily concentrated urban markets of key messages (e.g., responsiveness, affordability, etc.). $820,000 Movie Theatre Advertising – Pre-roll Advertising Cinema advertising provides an exciting venue for short, fun messaging in a high reach, high recall arena. $1,025,000
King Bus Backs These engaging bus back ads reach both drivers and pedestrians at eye level, interacting with our target in their daily commute. $950,000 Bus Shelters Visible from the road or on the street, these large posters reach those waiting for a light to turn or the bus. Many commuter bus riders still drive vehicles when back at home. $1,125,000 Mobile Interactive Billboard (Bluetooth capable) Emerging RFID billboard technology uniquely interacts with State Farm prospects and customers on the road, at a very personal level. Great buzz generator. $1,000,000
Bar Coasters The "Life Handled" campaign will also appear in clubs and bars on coasters that resemble napkins. These unexpected messages will resonate with our target as they socialize. $625,000
Projection Shows Projection light shows will generate buzz and publicity in the Top 20 Markets markets. These stunt events should inspire viewer uploads, tweets, posts… creating additional viral impressions. $1,000,000 Gas Station Advertising – Gas Pump Handles Guaranteed two uninterrupted minutes with the audience. Persons purchasing gas are highly likely to own a car, thus desirable targets. $500,000
Out of Home Closed Circuit Healthcare Advertising Gym television is the perfect “day in the life” venue, reaching State Farm’s active and health conscious Millennial target. $450,000 Billboards Billboards have the potential to be seen by both drivers and foot traffic with the ability to target to localized demographics. $1,600,000 Mall Advertising – Mall Billboards and Kiosks Hits our target market in a familiar place they frequent in their spare time, making them receptive to awareness advertising. $750,000
Mall Food Court Trays Food court trays reach our target prospects and legacy customers in a familiar and beloved environment – the mall. $600,000 Pizza Boxes Pizza is the Millennial survivor food. Tempo will place the "Life Handled" campaign on top of pizza boxes and generate nearly 1 million impressions. $750,000
Print Military Times This publication reaches young Millennials with disposable incomes and insurance bills not covered by parental policies. $600,000
Facebook Takeover Facebook is the top social networking site and a big part of our target's daily routine. This takeover will coincide with our campaign launch and graduation time of high school/college seniors. $400,000 Fancast As a substitution for Hulu, a popular media vehicle amongst our target, Fancast is poised to take over the mantle of top free video streaming site. $650,000 Google Ad Words Tempo will use Google's search engine technology to gain a higher share of internet users searching for insurance. SEM efforts will be highly targeted, based on long-tailed search query phrasing. $75,000 Network Internet TV The concept of free is something our target readily embraces and this vehicle allows them to view programs at their own leisure. $1,000,000
Pandora.com Streaming radio has been readily embraced by our target, Pandora being the most popular site. Due to limited commercial interruptions, the ads are viewed favorably and feature demographic targeting. $60,000 Sponsored Secure Logins Creative use of digital real-estate otherwise untapped for marketing potential. Our target are digital mavens, it only makes sense to meet them on their terms. $500,000 ESPN.com Our target is prone to sports enthusiasm as an extension of celebrity worship. This site allows for sports news on demand, a concept readily adopted by our target. Primary target is male, with moderate female overlap. $50,000
Online Mobile Messaging
SMS Text Messaging - Bluetooth Enabled Interactive Advertising 94% of 18-25 year olds own a cell phone, with most newer models having BlueTooth capability. Mobile marketing has targeting capabilities based on city / region as well as daypart sensitivity and can monitor phones using applications. $1,460,000
Facebook Takeover BET Awards This awards show is highly viewed by our 18-25 year old African American population, as well as those in our demographic influenced by pop culture in general. $50,000
Latin Grammy Awards While targeting our Hispanic 18-25 year old target, this award show speaks directly to their culture and will generate a positive image for State Farm. $10,000
Spanish Radio We recommend running spots on spanish radio due to high penetration of our Hispanic market. $650,000
Adult Swim $250,000
Comedy Central $250,000
E! Entertainment Television $250,000
IMC – $7,807,400 Media – $29,750,000 Creative – $2,192,600 Evaluation – $250,000
Tempo recommends the above cable networks as Nielsen ratings prove a high penetration for our 1825 multicultural audience with additional reach to parents in some cases.
The following Network Television programs were selected due to the high ratings and penetration of our 18-25 Multicultural audience. Additional reach will also be secured for parents of our target who have some influence in financial decisions. • Glee • NFL Football • Fringe
• Desperate Housewives • The Bachelor
• The Office
• How I Met Your Mother
• 30 Rock
• Grey’s Anatomy
• Heroes • Chuck
Budget: $10.7 Million
• Family Guy • Various programs on Telemundo & Univision
State Farm / Media
What we are not buying Hulu Hulu is becoming a pay-to-play site, to which our target is very unreceptive to. School / College Newspapers, Radio and TV Although much of our 18-25 year old target is in school, most if not all students are covered by their parents’ insurance. Print magazines such as Maxim and Glamour Due to the high cost and potential lost impressions, it was determined that print magazines were not as effective as other mediums chosen. American Idol Due to the high cost and potential lost impressions, American Idol wasn’t selected as it represents an inefficient expenditure and placement. Per a recent Forbes.com article posted in April of 2009, the average :30 spot for American Idol in 2009 was $623,000.
SuperBowl The average cost of a :30 was $3.4M for the 2010 game. It is an inefficient use of budget with a potential to get "washed away" due to other commercials. Airport Advertising While not very costly, the nature of the airport is very rushed and unappealing. It was decided that advertising in this environment, along with the fact that much of our market is not traveling due to its expense, would not be a smart placement. Subway Advertising Unlike bus stop advertising, this form of public transportation advertising really cannot be seen by those driving. Yes, there may be patrons of the subway that own cars, but the likelihood is less, and the markets subways would be found in are highly limited. Grocery Store Advertising In store advertising is unable to currently effectively target Millennials, due to the widely varied grocery store demographic profile.
Media Buy Flowchart Media Total Campaign May 2010 - May 2011
June 14 21
July 12 19
August 16 23
September 13 20 27
October 11 18
November 8 15 22
December 13 20 27
January 17 22
February 14 21
March 14 21
April 11 18
25 COST $(000)
Non-Traditional College Cafeteria Trays Mall Food Court Trays Pizza Boxes Out of Home (OOH) Billboards Closed-Circuit Health Club Advertising Bar Advertising Bar Coasters Mall Advertising - Mall Billboards and Kiosks Mall Elevators Gas Station Advertising - Gas Pumps Handles Movie Theatre Advertising - Preroll Spots Bus Shelters Backs of Buses Taxi Tops Mobile Interactive Billboard (Bluetooth Capable) Online Facebook Takeover Fancast :10 spots Network Internet TV :10 spots Pandora.com :10 spots ESPN.com Sponsored Secure Logins Google Adwords Cable :!0 Spots Adult Swim Comedy Central E! Entertainment Television MTV TBS VH1 Network TV Advertising :10 Spots Fox: Family Guy Glee Football Fringe NBC: Chuck The OfďŹ ce 30 Rock Heroes ABC: Grey's Anatomy Sunday Night Football Desperate Housewives The Bachelor CBS: How I Met Your Mother NCIS Football CSI
$600 $600 $750 Vehicle Subtotal:
$1,600 $450 $500 $625 $750 $750 $500 $1,025 $1,125 $950 $820 $1,000 Vehicle Subtotal:
$400 $650 $1,000 $60 $50 $500 $75 Vehicle Subtotal:
$250 $250 $250 $250 $250 $250 Vehicle Subtotal:
$625 $625 $625 $625 $625 $625 $625 $625 $625 $625 $625 $625
Awards Shows Latin Grammy Awards BET Awards Hispanic TV :10 Spots Telemundo Univision Print Military Times Radio :10 Spots Spanish Radio Mobile Marketing SMS Text Messaging
TOTAL MEDIA COST: $29,750,000
$625 $625 $625 $625 Vehicle Subtotal:
$10 $50 Vehicle Subtotal:
$350 $350 Vehicle Subtotal:
$600 Vehicle Subtotal:
$650 Vehicle Subtotal:
$1,460 Vehicle Subtotal: Total Media Placement Cost:
State Farm / Campaign Evaluation
n order to evaluate the effectiveness of the "Life Handled" campaign, we intend to employ the following methods of measurement:
Attitudes, Awareness & Usage Monitoring An AAU Tracking Study will be fielded in both off and online. This study will track target market shifts in: brand interest, perceptions, purchase intent and usage versus the competition. This study will be conducted in 3 phases: 1. Prewave prior to the release of the campaign 2. Midpoint check-in during campaign 3. Post wave at campaign conclusion
New Media efforts will be evaluated via web analytics and social media metrics. Trend graphs will track Life Handled's impact in real time as the campaign unfolds. Micro site and social media analytics will highlight basic measures such as: traffic, hits, click throughs, fan / friend / follower bases, user views, postings, etc. Also, changes in the conversation will also be carefully monitored. Tempo will issue monthly progress reports to allow for any necessary changes as the campaign unfolds.
New Media Activity
State Farm agents will be pulsed quarterly for "Life Handled" reactions. Probed areas will include: target lead to conversion ratios, target campaign feedback and competitive impact.
Focus Groups Additional focus groups will be conducted in key cities. Groups will further explore underlying "whys" affecting targets' brand, advertising, IMC and competitive perceptions.
Integrated Marketing Evaluation Integrated marketing efforts will be measured both quantitatively and qualitatively. Metrics (participation, visits, traffic, etc.) will be carefully tracked and reported. In addition, incentivized event participants will be briefly interviewed and surveyed by the Street Teams and State Farm representatives to provide a qualitative measure.
• “10 Surefire Strategies for Marketing to
• Insuring the Catalyst-
Generation Y” (Bea Fields – December 1, 2008)
• Allstate Annual 08 Report (2t008)
• “Youth Demographics - Youth with
• “Allstate vs State Farm - Which is the better company?” (Sil Anderson, 2007)
• American Institute for CPCU (AICPCU) and Insurance Institute of America (IIA) (2009)
• Coolest Gadget Reviews (2009) • "Current Population Survey (CPS)." U.S.
• "Marketing To Millennials - Don't Phail!" (Joe Koufman – Engauge Digital)
Characteristics and Military" (Darlene E Stafford & Henry S. Griffis, May 2008)
• "Youth Demographics" The Center for
• State Farm Annual Report (2008)
Bureau of Labor Statistics (2008)
• "Deloitte Debates: Do Gen Y workers
• "Millennials Ahead: Leading the
really deserve more of your attention, or is it better to let them just grow up?” (April 20, 2009)
Way into the Recovery Marketplace Yankelovich" (Home - Yankelovich – 2009)
• Forrester Research (2009) • "From the 2009 Generation Gap to the
• In Response to Economic Downturn Most
• "A Review of Millennial Generation
• "Tables 1 - 10; Characteristics of Minimum Wage Workers: 2007" (U.S. Bureau of Labor Statisti,. 2007)
• Mediamark Media Demographics
• "Where Digital Marketing Is
Heading in 2010 (Part 1) (Advertising Age - Ad & Marketing Industry News, February 2009)
• Progressive Annual Report (2008)
• "Where's the Growth in the Auto
Cinco de Mayo Attendance Dallas - dallascowboys.com
Puerto Rican Parade Attendance New York City - gonyc.about.com Gay Pride Parade Attendance Chicago - chicago.timeout.com Gay Pride Parade Attendance Atlanta - atlantapride.org Gay Pride Parade San Francisco - www.sfpride.org
• The Marketing Student, “A Look at
• "Millennial Fact Sheet" (Deloitte, 2005)
Cinco de Mayo Attendance Chicago - extranews.net
Puerto Rican Parade Attendance chicago.timeout.com
How Gen Y Communicates” (David Fallarme, 2008)
2020 Great Divide" (Nielsen Wire – August 2009)
to Gen Y: New Rules for Engaging and Attracting Younger Customers| Reuters” (2009)
No College" – The Center for Information and Research on Civic Learning & Engagement (Kiesa, Abby, and Karlo Barrios Marcelo, January 2009)
Information & Research (Lopez, Mark Hugo, and Karlo Barrios Marcelo, November 2006)
Consumers Maintain Essential Insurance Coverages (28 April 2009)
• "Research and Markets: Marketing
Customer:Generation Y and the Insurance Industry (Rep. 2008)
Gay Pride Parade Attendance New York- manhattan.about.com Gay Days Attendance Orlando - http://www.gaydays.com/
Insurance Market? – Seeking Alpha" (Jon Swallen, July 2008)
Ben Cofresi-Silverstein Patti Hanc
Special Thanks – Marketing Communications Department
Kevin Christophersen & Peg Murphy
Art Direction & Book Design
Margaret Sullivan (Department Chair) Mike Swidler Margot Wallace Cornell Wright
Salvador J. Stamatti Avila