For branding purposes, a company that speaks to customers in a
“conversational” way will have an advantage because it seems more human.
Geico is a success story because they have used this philosophy.
Another factor today is that people want to be entertained, in exchange
for listening to the message. This is definitely working for Geico and
has made it “stand out in stark contrast” from its competition,
according to Jack Neff of Advertising Age Magazine.
Geico’s Chief Marketing Officer Ted Ward and John Adams, the CEO of the Martin Agency, spoke at a conference together and said that Geico has quintupled its market share in car insurance in the last 16 years because they have taken an unconventional approach. They run ads that are funny and interesting but still have the focus on cost savings or ease of use. The companies have a very close relationship and it shows through in their marketing.
Geico was bought out of bankruptcy by Warren Buffet
in 1975. “It is a subsidiary of an investment conglomerate controlled
by Buffet. After the purchase he approved spending a lot of money on
advertising so that the huge amount of exposure would make Geico big,
and it worked. Geico increased its market share and produced profits for
15 out of 16 years. Geico spends much more than its
competitors.
In 2009 Warren Buffet said they were going to spend $800 million dollars on advertising, whereas in 1995 they spent only $20 million. In response to someone who asked if it was worth it to spend so much on advertising Buffet replied, “We are getting more than our money’s worth for what we spend.” He also stated, “We will spend more and more.”
The success of Geico has been influenced by the recession because people want to save money. “Suddenly saving $100 means something to people,” Buffet said. Buffet, who controls Berkshire Hathaway that owns Geico, is also called Geico’s secret ingredient because of his influence, and Martin had one of their ads mention him.
The branding of Geico has been extremely successful, so much so that Teen Research Unlimited has data showing that Geico ads rank as “the most recalled advertising among teens and women in their 20’s,” according to Neff. However, brands need to go beyond a compelling offer now, as its gotten very competitive in the marketplace, according to Allen P. Anderson of Landor Associates, a brand and corporate identity agency that is part of WPP. And, the marketing vice president of Geico said that with the downturn in the economy their campaign was “right for the environment.”
As the third largest insurance carrier now, Geico has become so big
they’re now ready to expand to China. In addition, they employ 3200
people in Stafford, and don’t even have enough parking for their
employees, so they have to shuttle people in. That shows what an impact
advertising / brand recognition has had Geico. The company has even
earned the AAA rating by Standard and Poor’s.
Geico’s Chief Marketing Officer Ted Ward and John Adams, the CEO of the Martin Agency, spoke at a conference together and said that Geico has quintupled its market share in car insurance in the last 16 years because they have taken an unconventional approach. They run ads that are funny and interesting but still have the focus on cost savings or ease of use. The companies have a very close relationship and it shows through in their marketing.
Geico was bought out of bankruptcy by Warren Buffet
in 1975. “It is a subsidiary of an investment conglomerate controlled
by Buffet. After the purchase he approved spending a lot of money on
advertising so that the huge amount of exposure would make Geico big,
and it worked. Geico increased its market share and produced profits for
15 out of 16 years. Geico spends much more than its
competitors.In 2009 Warren Buffet said they were going to spend $800 million dollars on advertising, whereas in 1995 they spent only $20 million. In response to someone who asked if it was worth it to spend so much on advertising Buffet replied, “We are getting more than our money’s worth for what we spend.” He also stated, “We will spend more and more.”
The success of Geico has been influenced by the recession because people want to save money. “Suddenly saving $100 means something to people,” Buffet said. Buffet, who controls Berkshire Hathaway that owns Geico, is also called Geico’s secret ingredient because of his influence, and Martin had one of their ads mention him.
The branding of Geico has been extremely successful, so much so that Teen Research Unlimited has data showing that Geico ads rank as “the most recalled advertising among teens and women in their 20’s,” according to Neff. However, brands need to go beyond a compelling offer now, as its gotten very competitive in the marketplace, according to Allen P. Anderson of Landor Associates, a brand and corporate identity agency that is part of WPP. And, the marketing vice president of Geico said that with the downturn in the economy their campaign was “right for the environment.”
No comments:
Post a Comment