Case Study: ALLSTATE
Paula Gray Lemons
California Southern University
Marketing/MKT 86502
August 14, 2015
Dr. Fogel
Case Study: ALLSTATE
Introduction
This case study examines how Allstate being a conservative insurance company takes a turnaround and go after non-conservative market- motorcycle riders. While its competitors, Progressive and Geico, normally held this market and were a favor with the motorcycle riders, Allstate stepped into the picture. (Keller & Kotler, 2012).
Allstate did market research that targeted the motorcycle industry. The research revealed that the motorcycle market was increasing with more and more consumers coming from the baby boomers and Generation Y were riding motorcycles. As well, the research not only revealed that the market was increasing with over one millions being motorcycle riders; as well as, that over six hundred were Allstate agents (Keller & Kotler, 2012).
With this new information, Allstate made changes to not only its policy packages to include motorcycle insurance but changed its marketing and advertising strategies to include motorcycles. Making these changes to its advertising and marketing strategies included competing with Progressive and Geico for a piece of this market (Keller & Kotler, 2012).
Analysis
While Allstate has entered into the motorcycle market, Geico and Progressive had this market cornered. Geico markets its insurance as offering insurance that would allow savings to its customer. Their insurance not only covers motorcycles; however, sport bikes, cruisers, standards, touring bikes, scooters or custom rides; therefore, offering great rates with great coverage. Their motto is “Enjoy the freedom of the open road knowing that the Gecko®'s got your back! Let's Ride® (Get a Quote: Geico Corporation).”
On the other hand, Progressive promotes itself as the #1 insurance carrier for motorcycle riders. As well, it promotes the fact that their corporate headquarters' parking areas are full of motorcycles; therefore, they understand what it means to protect the riders. The parking lot is even partitioned with a generously sized “motorcycle only” section for the riders (Motorcycle: Progressive Corporation).
Therefore, Allstate had to hit the road running to compete in this market and take some market share from Geico and Progressive to let the riders know that they are “in good hands” with Allstate.
Solution
By entering into this market, Allstate was able to take advantage of the fact that its agents were motorcycle riders by including them in the ads. The associations of the agents being bikers were one key element to Allstate’s marketing positioning (Keller & Kotler, 2012). In addition, Allstate started to offer the Riders Protection Project developed to help make it better for motorcycle to rid. It started to advertise its commitment to addressing the major issues riders that are facing on the road such as motorcycle safety and motorcycle awareness. The first issue that they addressed is the motorcycle crashes at intersections through their O.N.E. program by teaming up with comedian and actor Bill Engva to promote motorcycle awareness (Motorcycle Insurance: Allstate Insurance). As well, Allstate took the lead to standardize warning signs for motorcycles to help reduce the number of motorcycle crashes at intersections involving other vehicles. They are also working with traffic authorities to install permanently motorcycle warning signs in more than thirty U.S. cities (Motorcycle Insurance: Allstate Insurance).
Justification
The ability for a company to analyze the market and make changes to increase its market share is essential to a company’s ability to continue to survive. The whole purpose of researching and looking for other ways to supply products and services to customers are not just for the company’s bottom-line; however to keep the customer satisfied and meet
