U.S. insurance giant Geico marketing model analysis

U.S. insurance giant Geico marketing model analysis
When it comes to insurance, are reminiscent of those "pervasive" insurance agent, seems to be the industry's marketing methods are limited to this, but the U.S. insurance giant Geico was completely abandon the model, not to hire a sales agent of it after several twists and turns, exploration, relying on the powerful integration promotion also has achieved great success.Started with $200000 from Geico, skip the insurance agent this completely, take the direct sales business model development, through continuous exploration, has finally become the insurance giant, god of the current investment buffett very satisfaction, and decided to add the huge advertising.Review Geico history, abundant, is the insurance industry "alternative" textbooks.

Plain code marks a price on the Internet Geico history is short, but it is not just their career success and development is also a sorry tale.Geico started with $200000 in 1936, since its establishment is to promote insurance is known for its low cost, so it is not difficult to understand at the beginning of creation, Geico was completely eliminates the mediation model - founder think when general customers in the insurance, they won't pay attention to the content of the professional, more just need an insurance policy, because do not need to pay the wage insurance sales agents, operating costs are greatly reduced.

In the beginning, Geico just information mailed to them in a few civil servants, and then will be expanded, and put emphasis on phone sales, and on the radio, newspaper, magazine advertising.In the information transfer is not developed, the network has yet to happen s, it once seemed dead.The popularity of the Internet to this mode of the insurance product sales to the customer directly to obtain the new breakthrough, the Geico's website, all sorts of types, plain code marks a price insurance be clear at a glance, people can easily online inquiry.Know that in the absence of insurance agents, it is particularly important to brand promotion, Geico thus carried out the advertising campaign, including on TV, radio, and bulletin board, the integration of marketing to Geico this name is deeply rooted in the hearts of the people, become a powerful driving force for growth.

Focus on brand image advertising make insurance industry how to do?This is also a science.Geico's success is that it will focus on branding and image building, using a called Gecko lizards as a virtual agent, its impressive original caves, succeeded in making Geico is deeply rooted in the hearts of the people.Speaking, Geico company the endorsement of a famous green lizards Gecko in a way it's a product of the unexpected.In 1999, Geico to let consumers remember their name using homophonic "manufacturing" out of the lizard Gecko (Geico is Government Employees Insurance Co., the acronym).Original Gecko is envisaged for an AD, but an actor strikes forced Geico to continue to use this cute image speak reptiles, result unexpectedly - it is very popular, even have a number of "fans".

Have the image of the brand endorsement, Geico into advertising to cooperate in a big way.In 2005 alone, according to the TNS Media Intelligence, introduced the Geico is about more than $four hundred million in advertising, in the first nine months of 2006, 20% increase the advertising budget.Coca-Cola in 2005, by contrast, on the Coke also opened more than three hundred million.The huge advertising effect is obvious, Geico advertisements almost everywhere -- from television advertising to the NFL game, from radio to bulletin boards, you can see everywhere.Gentle lizards Gecko acclaimed, and even appeared a lot of fans, suddenly burst into social icon.

Gecko also makes a small agents, Interpublic Group of Cos., Martin Agency, who rose to fame and started filming another series of video - this is the lizard after the success of the advertising, in 2004 the primitive series, also received warm responses, and drive the results.Martin Agency plan the next step for the Gecko some advertisements in New York, Gecko advertising "must be interesting and be noticed," Martin said the Agency's creative director, can be said to be in the following Geico's consistent style.Warren buffett to Geico has also, and going to an extra 20% of advertising spending in 2007.He also puts forward, despite the lack of sales staff, but Geico rely on advertising operation has created quite a performance, he is willing to continue to stepping up efforts in advertising.

Geico caused the industry advertising campaign Geico's success, especially the successful integrated marketing promotion way, also caused the insurance industry, competitors have to adjust their advertising strategy, although some companies can not copy the Geico that abandon the insurance sales model, but they said they pay more attention to personalized service

Rather than just low-cost insurance products and lovely virtual spokesperson."In the event of an emergency, consumers need a specific personnel there, rather than a talking animal."Joe Tripodi, insurer Allstate Corp., the chief marketing officer, said the popular Geico lizards, his response was "really want to beat it.

Another insurance company Allstate took another trick, it took a long for the motor vehicles insurance for about 1 minute the effects of advertising, consumers could see two car by breathtaking scene, finally, of course, don't forget to sell its insurance;The whole shooting process comparable to Hollywood blockbusters.Another is called st. Paul Travelers company also not to be outdone, the Lord of the rings, please stunts to participate in its advertising design production company, need to add that only in 2006 st. Paul is spending on advertising the huge cost of $50 million to $100 million.TNS Media Intelligence, it was estimated that the insurance industry's advertising spending has increased by 64% since 2000, a total of $2.89 billion, and compared with other competitive industries such as wireless communications, and pharmaceutical industry, insurance industry advertising growth faster, apparently advertising promotion has been regarded as the insurance marketing tool.