State Farm

Insurance
Media Plan book

Jacqueline Hill
Katie Kirk
Jenny Kohn
Caitlin Morris
 Lindsay Tully
Part I:
Secondary Research – Marketing
Background

Company Analysis
State Farm’s Mission Statement:
“State Farm's mission is to help people manage the risks of everyday
life, recover from the unexpected, and realize their dreams.

We are people who make it our business to be like a good neighbor;

who built a premier company by selling and keeping promises through
our marketing partnership; who bring diverse talents and experiences
to our work of serving the State Farm customer.

Our success is built on a foundation of shared values -- quality service

and relationships, mutual trust, integrity and financial strength.

Our vision for the future is to be the customer's first and best choice in
the products and services we provide. We will continue to be the
leader in the insurance industry and we will become a leader in the
financial services arena.

Our customers' needs will determine our path. Our values will guide
us.”

About State Farm

State Farm Mutual Automobile Insurance Company was founded on
June 7, 1922, by George J. Mecherle, a retired farmer. It initially
concentrated on meeting auto insurance needs of Illinois farmers
through a mutual organization owned by the customers. By 1942, the
company was the nation's largest auto insurer, a ranking it has held
ever since. About one out of every five cars on the road is insured with
State Farm. State Farm Mutual Automobile Insurance Company is a
mutual insurance company and as such does not have any
shareholders. After the company’s initial success, State Farm decided
to launch health insurance in 1965 and years later launched property
and life insurance, as well as banking products and mutual funds.
.
State Farm Story - Then and Now

State Farm was founded in 1922 by retired farmer and insurance

salesman George Jacob Mecherle. His motivation for starting State
Farm was about fairness and doing the right thing for the customer.
Mecherle knew farmers drove less and had fewer accidents than
people living in cities. He thought they should pay less for automobile
insurance and decided to start his own company. State Farms founder’s
philosophy of insurance coverage at a fair price, coupled with fair claim
settlement, remains the cornerstone of their success and will help
drive us in our media planning.

Today, State Farm insures more cars than any other insurer in North
America. They are the leading U.S. home insurer. More than 17,000
agents and 68,000 employees serve over 75 million policies in the
United States and Canada.

Recent News Releases Involving State Farm

•October 4, 2007 -- LATINA Style Magazine Names State Farm® as
One of the Top Employers for Career-Minded Latinas
•October 2, 2007 -- State Farm® Becomes Univision Network’s New
Saturday Night Primetime Sponsor on “Sábado Gigante"
•September 5, 2007 -- 2007 State Farm® Good Neighbor Service-
Learning Grant Available
•August 17, 2007 -- $5 million in service-learning grants now
available - State Farm® Youth Advisory Board sets October 12
deadline
•August 13, 2007 -- Have you Signed up for The Challenge Yet at
50MillionPounds.com?
•July 17, 2007 -- State Farm Endorses Business Roundtable Climate
Changes Statement
•July 5, 2007 -- State Farm Companies Foundation Commits to
Another Three-Year Cycle of Funding for Youth Service America
•June 26, 2007 -- State Farm Named One of the "Best Companies for
Diversity" by Black Enterprise Magazine
Past State Farm Awards and Recognition

• Top 50 Best Companies for Latinas to Work

• 40 Best Companies for Diversity
• Computerworld Best Places to Work in IT
• Best Diversity Companies Readers’ Choice
• Hispanic Corporate 100
• Top 50 Corporations for Supplier Diversity
• Top 100 Employers
• Top 50 Most Military-Friendly Employer
• Top 30 Diversity Recruiting Corporations
• America's Top Organizations for Multicultural Business
Opportunities
• Corporation of the Year
• Super Advertiser Partners Award
• Corporate Partnership Award
• Hero Award
• Lifeline Award
• Lifetime Achievement Award
• Outstanding Corporate Partner Award
• Partnership & Commitment Award
• Sponsorship Award
• Support of Student Homeownership Program (SHOP)
• Top 25 Recruitment Programs
• Outstanding Internship
• Top 20 Companies for Leaders
• Asian American Marketer of the Year
• Bronze World Medal
• Corporate Leadership Award
• Corporate Recognition Award
• Corporation of the Year
• Excellence in Asian Advertising Campaign
• National Urban League Incentive to Excel and Succeed
(NULITES) Award
• Silver Effie Award
State Farm’s Community Involvement

"It's our responsibility to support the communities where we live and

work," says Edward B. Rust, Jr., Chairman and CEO of State Farm Mutual
Automobile Insurance Company. "A thoughtful, comprehensive approach
can make significant and lasting change, help build sustainable
communities, and contribute to our policyholders' well-being."

State Farm’s Dedication to Excellence in Education

State Farm supports efforts to ensure that all children have access to
an education. This will allow them to achieve their greatest potential
and prepare them to be active participants in a nation and economy
that continues as a global leader. Some examples of educational
contributions from State Farm:

•State Farm Service-Learning Champion Award

•State Farm Youth Board
•The State Farm Memory Wall
•Embrace Life Awards

State Farm’s Safe Neighbors Program

State Farm is an active leader in the community to help ensure that

children are buckled safely, intersections are safer, homes are
stronger, and much more. Examples of instituted State Farm programs
dedicated to the community:

•Safe Neighbors National Partnerships

•Child Passenger Safety
•Home Safety
•Natural Disaster Planning
•Arson Dog Program
•Young Driver Research Initiative
Grants & Scholarships

Through the Good Neighbor Citizenship program, State Farm commits

resources to helping raise the levels of achievement of our nation's
teachers and students, to making our homes and highways safe, and
to building strong communities. Examples of State Farm’s scholarships
and grants:

•Foundation Grants
•Scholarships
•Other Programs
•Company Grants
•State Farm Community Volunteers

Strong Neighborhoods

State Farm partners with responsible community organizations who

share their vision for healthy communities. We will draw from State
Farm’s commitment to education, community and their customers to
create a strong media plan that will prove they really are number one
in the car insurance industry.
Market Data/Sales Trends

 Price: Price of an automobile insurance policy depends on

several factors. To determine the price of a particular policy,
some factors that affect the price are: what you buy, such as the
number of coverages and the deductibles, what type of car you
drive, where you drive, how much you drive, your age, sex and
marital status, your driving record and your credit history. All of
these factors will determine the amount of your quote for a
policy. Compared to its main three competitors, Allstate, Geico,
and Progressive, State Farm is about parallel with Allstate’s
prices. Geico is the cheapest of the three, Progressive follows,
while State Farm and Allstate are very similar regarding type of
company, consumer and price. State Farm feels that their
emphasis does not need to be on having the lowest prices in the
industry, as long as they remain competitive.

A breakdown of State Farm’s yearly combined net worth of all of

their affiliates is as follows:
2003: $40.3 billion
2004: $46.3 billion
2005: $50.2 billion
2006: $58.1 billion

 Product: State Farm Insurance offers several different types of

insurance, including: automobile, homeowners, condo owners,
renters, life, health, long-term care, business, boat, disability,
flood and more. In addition, State Farm offers banking and
financial services. They offer a wide variety of insurance
coverage to aid you with the best policy at each stage of your
life.

 Place: State Farm has advertised through traditional and non-

traditional media, such as television, print, radio, sponsorship
and basically every choice of media available. They are mostly
consistent with their marketing and advertising. State Farm’s
print advertising is in home and family magazines, such as
Homes and Gardens, as well as in transit. Many city buses in the
majorly populated cities of the U.S., such as Chicago and Los
Angeles have advertisements containing information about
automobile insurance. Furthermore, State Farm launched its Now
What? Campaign focused on internet usage to reach a younger
 audience. State Farm’s focus for distribution of insurance is to
use their website, www.statefarm.com, to retrieve a quote, find
an agent or simply learn more information about the company.

 Promotion: State Farm is constantly using promotions to gain

business and build rapport with the consumers and
policyholders. Here are just a few recent promotions pertaining
to all aspects of their insurance coverage:

1. State Farm and the NFL decided to team up in an exclusive

marketing sponsorship. This will be the first time that the
nation’s largest insurer of homes and automobiles has joined
forces with the nation’s most popular sport. The three-year
agreement presents State Farm with numerous marketing and
advertising incentives, the opportunity to leverage the NFL
brand, as well as the first-ever presenting sponsorship of the NFL
Pro Bowl beginning with the 2007 game. According to
information found on State Farm’s website, “This sponsorship of
the NFL allows State Farm to communicate through a channel
that reaches millions of people and has an incredibly loyal fan
base,” said Mark Gibson, Assistant Vice President – Advertising at
State Farm. “With this alliance, State Farm is able to leverage
the power of the NFL, and effectively reinforce its message that it
is committed to being customers’ first and best choice.”

2. State Farm was the Promotional Sponsor for Disney and Pixar’s
CARS animated movie in April 2006 and the Promotional Sponsor
of Disney and Pixar’s CARSRoadTrip ’06, which followed the
premiere of the movie. Both State Farm and Disney and Pixar
were thrilled to work together. According to State Farm’s
website, "State Farm is excited about our involvement in the
launch of CARS. It's a great opportunity to showcase our
commitment to cars and drivers in a way that makes auto
insurance fun and relevant to all ages," said Pam El, Vice
President, Marketing. "The theme of the movie and the mission
of State Farm are very consistent. As the largest insurer of cars
in the U.S., this is a perfect fit."

3. State Farm promotes many events nationwide, but they also offer
several promotional benefits for their employees, such as health
promotion, advantages to quit smoking and assistance programs.
Here are just a few examples, according to State Farm’s website:
 “From yoga to healthy cooking to weight loss classes,
a variety of wellness programs are offered in many
State Farm work locations. As a State Farm
employee, you can also take advantage of our US
Discount program which allows employees to obtain
membership to local fitness centers at discounted
rates.”

 “As a State Farm employee, you and members of

your immediate household will be eligible for
services provided, free of charge, under the
employee assistance program. Some of these
services include: parenting/ child care, emotional
well-being, addiction, legal issues, education, and
eldercare.”

 “State Farm supports employees' efforts to quit

smoking by reimbursing them for smoking cessation
expenses such as over-the-counter aids, classes,
hypnotism, prescription medications, and doctor
visits.”
Competitive Analysis

State Farm’s main competition in the auto insurance industry is Allstate

Insurance Company. The other competition lies in newer, less-
established companies that place their emphasis on low rates and
online policy access. A leader in this type of auto insurance carrier is
Geico. Therefore, we will analyze State Farm’s competition as Allstate
and Geico.

Allstate
According to Allstate.com, “The Allstate Corporation is the nation’s
largest publicly held personal lines insurer. A Fortune 100 company,
with $157.5 billion in assets, Allstate sells 13 major lines of insurance,
including auto, property, life and commercial. Allstate also
offers retirement and investment products and banking services.
Allstate is widely known for their ‘You’re In Good Hands With Allstate’
slogan. Allstate was founded in 1931 and became a publicly traded
company in 1993.”

• Provides insurance policies to more than 17 million households

• Allstate insures 1 out of every 9 automobiles in the U.S.
• Allstate operates in 49 U.S. states and Canada
• Allstate is concerned with charitable donations and community
involvement

Allstate lists their financial ratings for the previous years as follows:

Financial Ratings
Financial Ratings: 2006 2005 % Change
Net Income Per Diluted
Share $7.84 $2.64 197
(in dollars)
Operating Income ($ in
$4,888 $1,582 209
millions)

Return on Equity (percent) 23.8% 8.4% 15.4 pts.

Revenues ($ in millions) $35,796 $35,383 1.2

Shareholders Equity
$21,846 $20,186 8.2
($ in millions)
Book Value Per Diluted
Share $34.84 $31.01 12.4
(in dollars)

Geico
According to Geico.com, Geico was started in the 1930s and its original
customer base came from those enlisted in the military. Geico’s
founder wanted to find a way to offer lower insurance premium rates
by appealing to a select customer base. Today, according to A.M. Best,
Geico is the 4th largest private passenger auto insurer in the U.S.
• Geico has over 8 million policyholders

2006 Auto Policy Gain

GEICO 10.7%
Allstate 1.6
State Farm 1.4
Progressive 1.4

“State Farm has to compete on what sets us apart. We’re providing

the best value in the market,” said Executive Vice President Bill King.
“And we’re making sure that value is balanced with a competitive
price.”
Brand/Product/Positioning

 Who is our target?

1. State Farm has a very wide target market. There are
many smaller markets that all have different marketing
campaigns. For example, on their home website there is
an entire page full of links to choose which life stage the
consumer is in. It then goes into detail of why you would
need insurance for that particular life stage. Some
examples of these different life stages are: Planning for
College, Getting Out on Your Own, Renting a Place, Finding
a Job, Getting Married and Planning for Retirement.

 Where are we in the mind of this person?

1. State Farm has been in the business of providing excellent
automobile coverage at an affordable price since 1922.

2. Since its inception, State Farm has expanded its services

into other popular types of insurance, such as homeowners
and life insurance, in addition to banking and financial
services. Therefore, they cover a very large spectrum of
insurance, like a one stop shop. It is very convenient for a
consumer to purchase all types of insurance from them.
 3. State Farm has grown to include 68,000 employees and
17,000 agents servicing 74 million policies in the United
States and Canada, and serving more than 1.8 million bank
accounts.

4. State Farm is America's largest automobile insurance

provider, covering "about one in every 5 vehicles" in the
USA according to the company.” State Farm is very well-
known and trusted.

5. Ranked #25 on Fortune 500 in 2002.

 Where is our competition in the mind of this person?

1. Major insurance competitors include Allstate, American
Family, Farmers Insurance Group, Nationwide, Progressive,
and GEICO

2. Allstate was founded in 1931and therefore, have been in

the industry for almost as long as State Farm. This has
given them the opportunity to create credibility and loyal
customers. According to Ellen McLaughlin, Allstate
Insurance expert, Allstate and State Farm are direct
competitors.

 Where would we like to be in the mind of this person?

1. According to State Farm’s website, “Our vision for the
future is to be the customer's first and best choice in the
products and services we provide. We will continue to be
the leader in the insurance industry and we will become a
leader in the financial services arena. Our customers'
needs will determine our path. Our values will guide us.”

 What is the consumer promise?

1. State Farm's mission is to help people manage the risks of
everyday life, recover from the unexpected, and realize
their dreams.

 What is the supporting evidence?

1. Their prices, agents and company slogan, “Like a good
neighbor, State Farm is there.”
 2. State Farm is very informative and has many great
resources right at your fingertips. The State Farm website
is very user friendly.
3. Their superior customer service

 What is the tone of voice for this advertising?

1. Very friendly and warm
2. Make you feel like part of the community, part of the family
3. Trustworthy
Brand & Competition – Media Use & Creative
Strategies

State Farm’s Current Media Use

Television
1. Major network Stations
ABC, NBC, CBS, FOX
2. Popular Cable Networks
Univision
National sponsor for Sabado Gigante (tv show)
3. ESPN
4. Nickelodeon

Internet
1. Weather.com
2. Microsite called nowwhat.com
Commercial spots and print ads advertising for the
microsite

Sponsorship
1. Official insurance sponsor of Major League Baseball
2. Official insurance sponsor of National Football League
3. Official insurance sponsor of Nascar

Alternative Media
1. Corporate sponsor of NCAA

State Farm’s Current Creative Strategy

Slogan
“Like a good neighbor, State Farm is there.”
Focus
Friendly, reliable feeling
Ensures that you can get optimal service for the same
price as their competitors
Guarantees friendly, knowledgeable insurance agents
Allstate’s Current Media Use

Television
1. Major networks
ABC, NBC, CBS, FOX
Print
1. Nascar
Major print campaign emphasizing safe driving on and off
the track
Sponsorships
1. College football
2. Sugar Bowl in New Orleans
3. Mexican National Soccer Team
4. United States Olympic team
5. Latin Grammy Awards

Allstate’s Current Creative Strategy

Slogan
“You are in good hands with Allstate”
 Have used Leo Burnett for past 50 years
“The right hands make all the difference”
 Headline with sports personalities hands featured
 Placed in sports magazines
Straight-talk approach
Highlights the benefits of using Allstate

Geico’s Current Media Use

Television
Major networks - ABC, NBC, CBS, FOX
National cable programs
ESPN
CNN
Spike TV
Sponsorship
NASCAR Busch Series driver Mike Wallace
Seasonality – Buying Trends

 Car-buying trends: There are 2 basic times a year when

consumers purchase cars. According to Ken Morrow, an
insurance agent at ThrotonPowell Insurance Inc., consumers
looked to buy new automobiles in March and April, when the
weather begins to change for Spring, and again in the fall
during October and November, when the new models for
the following year come out.

 Factors that affect consumers’ decisions about purchasing

auto insurance (according to Katz in the Media Handbook) :
need, awareness, preference, search, selection, purchase,
use, satisfaction
 Because of this, it is important to get into the minds’
of consumers before they even realize that they need
auto insurance, so that State Farm will be the first
company that a consumer will consider when they
realize their need for the product.

 Means of buying auto insurance: from a company through

an agency, directly from company and online.

 When consumers buy auto insurance: There are two yearly

peaks in auto insurance sales that coincide with the two
yearly peaks of auto sales. The largest amount of auto
insurance policies are sold during March and April, and then
again during October and November.
Geography
State Farm's Corporate Headquarters is located in Bloomington, IL with
offices all over the United States and in parts of Canada.

Insurance.com reports that auto insurance rates are down 1%

nationally in 2007. However, in addition to this national change, rates
have gone down much more in some states than others. The following
chart shows the ten states that had the largest premium drops from
2006 to 2007.

State 2006 2007 % 2007 Change

Premium Premium from 2006
North Carolina $2,261 $1,945 -16.2%
Arkansas $2,118 $1,907 -11.1%
District of $2,753 $2,504 -9.9%
Columbia
South Dakota $1,812 $1,653 -9.6%
North Dakota $1,941 $1,773 -9.5%
 West Virgina $2,367 $2,163 -9.4%
Nebraska $1,702 $1,579 -7.8%
Rhode Island $2,553 $2,375 -7.5%
Iowa $1,496 $1,394 -7.4%
Mississippi $2,021 $1,893 -6.7%

The most cohesive trend that we noticed in these ten states was that
most of them lie on the outer boundaries of the U.S., with the
exception of Nebraska and Iowa. Also, none of them lie in the western
U.S., so it appears that insurance tends to have higher premiums the
further west you go. On the other hand, the second chart shows the
ten states that had the largest premium increases from 2006 to 2007.

State 2006 2007 % 2007 Change

Premium Premium from 2006
Nevada $1,942 $2,060 +5.7%
Washington $1,792 $1,860 +3.6%
Pennsylvania $1,925 $1,986 +3.1%
Connecticut $1,965 $2,025 +3.0%
Tennessee $1,548 $1,588 +2.6%
Missouri $1,558 $1,593 +2.2%
Indiana $1,463 $1,481 +1.3%
Virgina $1,575 $1,591 +1.0%
Vermont $1,554 $1,553 +0.1%
Illinois $1,556 $1,548 +0.5%

The trend that can be noticed in the states with the largest premium
increases is a little harder to spot in terms of geography, but almost all
of them are states that are completely inland and most of them lie in
the same region of the Northeast and Midwest. Again, not much is
mentioned in the West so it appears that the prices of auto insurance
premiums fluctuate more on the eastern side of the U.S. Insurance
companies take many things about a region into account when
determining auto insurance rates. Factors that may affect premiums
are parking, traffic population, theft rate, number of accidents, and
percentage of uninsured drivers in a region. Therefore, auto insurance
tends to be more expensive in more populated areas, cities in
particular. This is important because it may have an effect on where a
consumer chooses to live if they are concerned about how much their
insurance rates will be. Typically, homeowners’ insurance rates are
also higher in areas where auto insurance rates are higher. State farm
has auto insurance policies placed in all 50 states and Canada, so they
are careful to follow insurance pricing trends to ensure that they have
the least amount of underwriting loss possible, which makes their
finances more successful. There are people at State Farm who are
responsible for researching these topics so that they are always
accurately pricing policies nationally as well as making sure that they
do not place too many policies in a high risk area.

Purchase/Usage Patterns & Product Category

Trends
State Farm Insurance has very high usage patterns because they
are the number one insurer of cars in the United States since 1942,
and the usage trend has been increasing ever since. In just five years,
State Farm Bank has grown to one of the country’s largest 100 thrift
institutions. State Farm’s collision repair satisfaction ranks high among
consumers. More than 80 percent of State Farm customers surveyed
would recommend State Farm to friends and family for auto and
homeowners insurance.
The State Farm group net worth increased by $6.0 billion to
$46.3 billion in 2004. This is the second consecutive increase following
three years of significant decline. State Farm added over 375,000
policies and accounts in 2004 despite falling short of their auto growth
goals. The number of policies and accounts has increased almost 7
million over the past five years. Financial services policies and
accounts have increased during each of the last five years. The
property and casualty expense ratio improved to 35.7 percent and was
better than the industry average.
To remain competitive, State Farm says that they must continue
efforts to improve efficiency and productivity without compromising
customer service. The pace of change seems to get faster every year,
mainly due to technology. In dealing with the product/usage patterns,
customers purchasing auto insurance expect to be able to interact with
businesses at their convenience, any time of the day or night. They are
increasingly concerned about value and want to buy and use products
on their own terms. They appear to have less brand loyalty to their
insurance provider. When it is time to renew, more customers go
shopping and younger consumers switch at a rate higher than other
age groups. Especially in auto insurance, there is much price
competition.
State Farm states that they do not need to have the lowest prices
in the industry to be successful, as long as they are competitive prices.
State Farm is known for their continuous renewal rate as well. Group
studies showed State Farm that since their productivity raised and their
expense ratio dropped, they were put behind the industry average.
State Farm then proceeded to lower their auto rates in 2004 to adhere
to the auto insurance category trends.
State Farm builds their company trends and usage patterns by
understanding the lives and needs of their customers. They try to
build a long lasting personal relationship, rather than a quick “ in and
out business deal.” Demographic trends are favorable for their
financial services business, as baby boomers show a growing need for
retirement products. The growth of State Farm added more than
375,000 policies and accounts during 2004 and the production and
retention trends in their auto lines showed continued improvement.

Consumer Decision Process

 Need: In most states, if you want to drive your own vehicle, you
must be insured.

 Awareness: Most consumers are aware of the legal issues

regarding insurance. Also, they know what the consequences
are if they do not have insurance if something occurs. We want
to raise State Farm’s brand awareness and show consumers the
specific benefits of choosing State Farm over another competitor.

 Preference: Consumers prefer many things, such as

convenience, safety, a long-standing company, great customer
service, an agent they can call with questions, concerns and
other issues, a financially stable company and a company that
cares about them as individuals and not just about their money.

 Search: Ellen McLaughlin says that, “The best search method for
any policyholder is word of mouth.” But other options are
searching online, direct mail, etc. State Farm is very easily
accessible online, through television and many other ways. They
are nationwide, so their actual business locations are easy to
find.

 Selection: The consumers select a company by calling an agent

and getting a quote. If this quote meets their expectations and
is financially reasonable then the consumer will lead into the
purchase mode.
  Purchase: The consumer will become a policyholder through that
particular company once they buy insurance. The price must be
feasible for the consumer, as well.

 Use: The consumers typically try out the insurance company for
a year, or until their current policy is expired. After that point,
they make a decision to either stay with the current company or
go elsewhere.

 Satisfaction: State Farm prides themselves on their claims

service. Their claims department is one of the largest of all
insurance companies. If the consumer is satisfied with the
quotes/new quotes and the claims departments of State Farm,
the policyholder will continue to keep their insurance with State
Farm.

Results From SMRB Data

According to the 2006 SMRB data for consumer use of automobile
insurance by brands, male principal shoppers do not purchase State
Farm as often as Progressive, Geico and AIG. For the category of
respondents of age 21, there was a significant difference between
State Farm and Prudential, Liberty Mutual, and one of its main
competitors for this age group, Geico. Also, the age group of
respondents who are 22-24 is still not choosing State Farm to be their
provider, unlike Geico, Allstate and Prudential, who all have very
similar statistics of consumers.

On the other hand, managers and professionals have a higher rate of

State Farm purchases, along with Nationwide and Allstate trailing close
behind. This research shows that a more mature and business
professional audience is already aware of the advantages of State
Farm.

This research has led us to target a market consisting of 21-25 year-old

males who are recent college graduates and are entering the
workforce to begin their career. The SMRB data helped show the
consumer purchasing patterns of males and helped us recognize that
State Farm needs to increase awareness of their brand and expand the
market for State Farm.

Pricing/Distribution
• Pricing
• Varies by
 Accidents
 Traffic violations
 Type of car
 Number of years licensed
 Student
 How often car is driven
 Number of drivers on plan
• Distribution
• Online
• By phone
• Personal agent

SWOT Analysis for State Farm

Strengths:
- Idea of community- donates lots of time/money to programs that help
others

-“like a good neighbor…”- idea of a friend

- Lots of different insurance policies, programs, prices, companies to

choose from

- Great with diversity

-Countless awards received

Weaknesses
- Their commercials are serious- unlike Geico who uses humor
-There are still many other insurance companies out there to compete
with

-They’ve been using their “like a good neighbor” slogan for awhile now

Opportunities
- Perhaps advertise all the good deeds and work they do in the
community

-Add more diversity to their commercials

-Highlight their Hispanic awards to attract people in this market

Threats
-The many other insurance companies out there

-Competing with great advertising

 Part II:
Audience Analysis

The primary audience is Caucasian, single males, ages 21– 25,

who recently graduated college. In terms of cohort, they are at the
beginning era of Generation Y. Our target can be found nationally, is
just starting their first entry level job, are moving out of their parents’
house, and starting their life. They are splitting rent for their first
apartment with roommates.
This target is a part of the “young influentials” segment who are
busy balancing their work and leisure activities. This segment has just
graduated from college and is renting apartments in young areas with
parks, health clubs, and hip restaurants and bars. They are a part of
the “Young Achievers” lifestage group.
This is their first experience picking their own automobile
insurance. Since they are recent graduates just beginning their
careers, they are very price sensitive. Although State Farm is already
targeting a more mature and older audience, we as an agency decided
to broaden our market and target a new audience. Since State Farm
has such loyal customers already, we would like to encourage a
younger audience to consider the great benefits of State Farm, as well.
We are targeting recent college graduates in entry-level positions with
less discretionary income, which is normally the typical target market
for less expensive companies such as Geico and Progressive.
According to the SMRB data, this target market is lacking in brand
awareness and State Farm’s competitors are getting their business.
After implementing our media strategy, we plan to increase State
Farm’s brand awareness with this market and as a result, increase their
market share.
According to Ellen McLaughlin, a previous representative of
Allstate Insurance, consumers do not change providers until they are
forced to financially or when they are in different stages of their lives.
Another reason for targeting this audience, is to gain this market as
clients early on in their life so that they can develop a good
relationship with their State Farm agent and as a result, continue to
use State Farm as them move through different lifestages.
A Day In The Life of Adam
Adam, a 22 year old single Caucasian male, graduated from
University of Wisconsin- Madison in may 2007 with a bachelor’s degree
in Finance. He works at Chase bank at an entry level job. He has been
working there since July 2007.

Adam wakes up at 6:30 am to the sound of Coldplay coming from

his alarm clock. He gets out of bed and jumps into a cool shower to
wake him up. After his ten-minute shower, he dries off and shaves. He
puts on aftershave, and puts some gel in his hair. He puts on dress
pants, a button down shirt with a tie and sprays some cologne. Then
Adam makes himself a bowl of Frosted Flakes and pours a glass of
orange juice. He eats his breakfast and heads off to work at around
7:30 am.

Adam gets into his used silver Honda civic and makes the fifteen
minute commute to Chase bank. On the way, he stops in the
Starbuck’s drive-thru and gets a grande coffee with a shot of espresso.
He arrives at work at about 7:50 am since he begins work at 8 am. He
works throughout the day and takes his lunch break at 1pm. He gets
into his car and drives to Subway about ten minutes away. He orders a
meatball sub sandwich, a bag of potato chips and a large Coke. He
eats lunch there and drives back to work to be back by 2 pm. He
finishes his work day at 5 pm and drives to the local pub to have a
drink with his co-workers. He orders a Bud Light bottle. After a drink,
he drives home to his apartment where he shares rent with two other
males that he met in college.

Adam and his roommates make chicken on their George Forman

grill, a side of broccoli and mashed potatoes. They sit around their
table, eat dinner and talk about what is new in their lives. After dinner
they hang out in their living room and watch Sports Center on ESPN.
After watching their television show, Adam gets ready for his daily
workout. He gets into his car and drives to the gym. He does weight
training for forty five minutes and cardio for a half hour. Once Adam
completes his workout, he drives back home for a shower. Adam
takes another ten minute shower and gets ready to go to bed. Before
getting into bed, Adam checks his Gmail email account and
www.cnn.com for the latest news in the business world on his laptop.
Adam gets into bed at 11 pm.
 Primary Research

We collected primary data from people in our specific target audience.

Due to the limits of our location, we distributed 100 surveys to senior
males at The University of Illinois. Sample of our survey:

1. Do you own a car?

2. Do you have auto insurance?

3. Do you pay for your own auto insurance?

4. Please rank your familiarity with the following auto insurance

companies from 1 – 4 (1 being the most familiar, 4 being the least
familiar):

_______Progressive
_______Allstate
_______State Farm
_______Geico

5. Please rank the factors that would help you choose an auto insurance
carrier from 1 – X (1 being the most important, X being the least
important)

_______Price
_______Well-established company
_______Your parents used it
_____ Coverage
_______Special promotions
_______Other (if applicable)
Please List:_______________________________________________

6. Please check how interested you are in sports:

______ Very little
______ Somewhat
______ Moderately
______ Very
______ Sports are my life
 7. Please indicate how often you visit ESPN.com, read sports
magazines, or watch sporting events on television:
_____ Never
_____ At least once a day
_____ More than once a day

8. Please select your ethnicity:

_______African American
_______Asian
_______Hispanic
_______Caucasian
_______Native American
_______Other (if applicable)
Please List:_______________________________________________

9. Please select your age group:

_______17-20
_______21-25
_______26-30

Key Findings from Primary Research

Out of our 100 sampled males, we found that 95% have car insurance.
However, only 17% choose their own insurance provider. Given this low
percentage, we feel that this age group will be picking their own car
insurance post- graduation and would excellent target market. The
research found that 42% ranked Allstate 1st for familiarity, with 33%
selecting State Farm and 25% selecting Geico. Drawing from this
information, we hope to make State Farm number one for familiarity by
significantly increasing brand awareness. 73% listed price as their first
consideration for car insurance, with coverage being the second most
selected answer. The research found that 86% of the sample check
either ESPN.com, ESPN network, or read ESPN Magazine on a daily
basis.
 Part III:
Media Plan
In order to reach our target market effectively, 21-25 year old males
who are recent college graduates in an entry-level position, our media
strategy will focus on a nationwide campaign with a variety of different
media and advertisements. We will a media selection of television,
magazines and internet, as well as non-traditional media such as out of
home and sponsorship to reach our target market. The use of this
media will increase the awareness of the reliable service and
competitive pricing that State Farm offers.
We will launch our campaign in November 2008 and it will continue to
run for approximately one entire year following a specific schedule.

Media Strategy Statement

 We will use a media mix of traditional and non-traditional

consisting of television, magazines, internet, out of home and
sponsorship. We chose these specific media because they we
will effectively and strategically reach our target market.

Television
According to the Media Handbook, some of the benefits of
television to the advertisers the true to life perspective and
the wide reach of people it offers at any one time.

Magazines
“Magazines as a medium reach a broad range of the
population”. According to the Media Handbook, “94% of all
adults read magazines in any one year, buying about six
different titles in that time period” Magazines can be
considered a pre-shopping experience that allows consumers
to learn about the product before purchasing it.

Internet
Internet is considered to be the ultimate choice in mediums of
advertising. One reason for this is because “the internet is
the first mass medium able to offer a targeted, personal
advertising message”
Out of Home Billboards
It has been said that bigger is better. This is the case when it
comes to billboards. According to The Media Handbook, “The
large size of the poster panel or painted bulletin means that
the outdoor advertising gets noticed.”

Sponsorship
There are several benefits gained from using non-traditional
sponsorship. One major benefit is the “heightened visibility
for the brand name, thereby increasing the chances of
shaping positive consumer attitudes.” Also, the reason why
we chose to do sports sponsorship is because “the majority of
sponsorship spending (69%) goes toward sports-related
events.”

Radio
We chose not to use radio because iPod use is increasing and
continues to increase, especially for our target market.
Another reason why we chose not to use radio advertising is
because of a few drawbacks. According to the Media
Handbook, radio can only offer sound, as opposed to sight and
motion of television. Furthermore, radio ads are usually a
background medium because people are doing something
else at the same time, which makes it more difficult to grab
and keep the consumers’ attention).

Newspaper
We chose not to use newspapers because they are on the
decline and have a few negative aspects to their usage. One
example is that the consumer is usually an active reader,
which basically means that if your headline doesn’t catch the
consumers’ attention, there is a good chance that he or she
will not look at the ad at all.
 We will use several different subgroups within each medium
focusing on sports, business and news.
Television: ESPN, CNN and NCAA March Madness on a
primetime channel
Magazines: ESPN Magazine, Sports Illustrated and Maxim
Internet: ESPN.com, CNN.com and Facebook.com
Out of Home: Billboards in Chicago, Dallas, Miami, Los
Angeles & Boston
Sponsorship: NCAA March Madness

 We will allocate media evenly throughout the United States

with the exception of out of home billboards. Billboards will
appear in select heavily populated cities where we can reach
our target market, such as Chicago, Dallas, Miami, Los
Angeles and Boston. We chose these particular cities because
of our research from the U.S. Census Bureau which can be
found within the billboard section of this media plan.

 For most of the media we will advertise in key sales months of

vehicles such as November and March with secondary
emphasis during lesser sales periods throughout the year.
According to Ken Morrow, an insurance agent at
ThorntonPowell Insurance Inc., most consumers buy
automobiles before or after the cold winter months here in the
Midwest. Since this is the major time for automobile
purchases, this also coincides with automobile insurance
purchases.

 The scheduling strategy for our campaign is pulsing

throughout the entire year for all of the selected vehicles.
However, some of the vehicles will heavy up during the
months of November and March, such as television and
sponsorship. We decided to heavy up during these months
because of the College Football schedule, the NCAA March
Madness tournament for television advertisements, and the
sponsorship of the actual March Madness event.
Media Emphasis and Budget Distribution

Total Budget - $300 million

Media Distribution we will use:

Media Outlet Budget Distribution

Amount in millions

Non-Traditional,
Traditional, $195 $105
Traditional Media (65%)
• Television (45%)
• Magazines (30%)
• Internet (25%)

Traditional Media Outlet Budget Distribution

Amount (in millions)

Internet, $48.75

Television,
$87.75

Magazines,
$58.50

Non-Traditional Media (45%)

• Billboards (40%)
• Sponsorship (65%)
 Non-Traditional Media Outlet Budget Distribution
Amount (in millions)

Billboards, $42

Sponsorship, $63

Television - $87.75 million

The use of television to reach our target market has a strong

percentage of the traditional use of media. This is because our target
market engages in many hours of television in their lifetime. According
to the A.C. Nielsen Co., “the average American watches more than 4
hours of TV each day (or 28 hours/week, or 2 months of nonstop TV-
watching per year). In a 65-year life, that person will have spent 9
years glued to the tube” (www.csun.edu). Also, according to television
research, 99% of households in the United States possess at least one
television (www.csun.edu).

The subgroups within the medium of television will consist of ESPN,

CNN and the NCAA March Madness tournament on a primetime
channel. Television will use 45% of the traditional media, which is
approximately $87.75 million of the $300 million nationwide budget for
State Farm. The emphasis of this budget will go towards ESPN and
sports-centered television shows to reach our target audience
effectively. ESPN’s mission statement is “To serve sports fans
wherever sports are watched, listened to, discussed, debated, read
about or played” (www.espncms.com). According to ESPN, they are
the Worldwide Leader in Sports and air more than 5,100 live and
original hours of sports programming and cover 65 sports
(www.espncms.com).

• ESPN has an 81.6% U.S household coverage that is still growing

 • ESPN recently completed 10 consecutive quarters of year-to-year
household ratings growth

• ESPN has been ranked the #1 favorite network (cable or

broadcast) among men for the last 7 years

• Sportscenter, ESPN’s flagship news program, is the #1 favorite

ad-supported cable program among men

• Cable subscribers vote ESPN their #1 favorite network

• ESPN is the only network airing every major sport

The secondary emphasis will go towards CNN and business-centered

television. This is to reach our target audience who is well-educated
and interested in the world news around them. The television show we
will broadcast during is Anderson Cooper 360 degrees in which to
connect the viewers with the world of news. Since this show airs at
10pm ET and 7pm PT, this is a good television show to reach the
viewers who are home from work and settling down for dinner or for
the night.

According to the Advertising Media Services media kit, it costs

$147,900 to run a 30-second commercial advertisement on primetime
television. A budget of $87.75 million to spend on television allows the
opportunity to run approximately 592 commercials between the three
mediums. We will run about 250 commercials on ESPN during
Sportscenter, a sports-centered television show, and during ESPN
College Football Scoreboard, which is presented by Acura. We chose
these particular shows because our target market is recent college
graduates in the work force who are still interested in college sports.
Also, The College Football Scoreboard hour-long program is a great
opportunity to run State Farm insurance commercials because it ties in
with the Acura vehicle commercials. We will run about 150
commercials on primetime television during the NCAA March Madness
Tournament. We chose this particular medium because of our target
audience’s interest in sports and because of their relation to college
and college life since they are recent college graduates. The
remaining 200 spots will be featured on CNN during Anderson Cooper
360 degrees. We chose this medium because it focuses more on the
business-centered part of our targets market’s lifestyle. This is a
program for the well-educated who are interested in news and culture.
We will use a scheduling strategy of pulsing, while we heavy up on the
months of November and March. One reason for doing this is because
the key sales months for automobiles are November and March,
according to a ThorntonPowell Insurance agent, and therefore
automobile insurance purchases may coincide. Also, these particular
months are parallel with College Football in November and the NCAA
March Madness Tournament in March. This is great timing to reach our
target market, and we relate their passion for sports with our creative
strategy so that it coincides. The beginning two weeks of November is
when our commercials will run on ESPN and CNN and the entire month
of March is when we will run the commercials for ESPN and the
primetime channel for the NCAA March Madness Tournament.

In regards to the creative strategy, the reason why we are not

allocating media evenly throughout the United States is because we
are specializing the television commercials. Depending on the
geographic location of the running commercial, it will contain their
particular sports teams featured in the commercial.

Magazines – $58.5 million

The print campaign will focus on Men’s sports magazines and a
fashion magazine.

• ESPN Magazine – $25 Million

 Approximately $400,000 per each full page

 Will appear behind front cover

 Run nationally, every month

 • Sports Illustrated – $22 Million

 Approximately $350,000 per each full page

 Appears behind front cover

 Run nationally, every month

• Maxim Magazine – $11.5 Million

 Approximately $200,000 per each full page

 Appears in the middle of the issue

 Run nationally, every other month

The print selection for this campaign is appropriate for our target
market because we are focusing on males, ages 21-25, which is a
main demographic for all of these magazines. From ESPN’s media
kit, men ages 18-24 have the highest readership rate at 30% while
Sports Illustrated have a 24% readership rate for males ages 18-24.
According to Maxim’s media kit, about 70% of the readership is
college educated, which is another main component in our target
market.

Internet - $48.75 million

The internet campaign will run on three major websites.
• ESPN.com

• Facebook.com

• CNN.com

According to the Interactive Advertising Bureau, in today’s world,

88% of people say that the internet plays a daily role in their lives.
We decided to use online advertising because it’s 100% trackable, it
can be interactive and fun, and it is also less expensive than other
media. The internet is a perfect outlet for our specific target
audience, considering that 75% of males, ages 18-24 are online.
Targeting our audience of males, ages 21-25, will be easy since we
can pick the perfect websites that we know they will be visiting.

Our top priority website is ESPN.com, which will coincide with our
advertising that we will be placing in their magazine and on
television. The ESPN website is the second most-visited website by
all males, ages 18-34. 89% of ESPN.com users visit the website at
least once per day, ensuring that our State Farm advertisements will
be seen. 84% of users are college educated and fully employed,
which is exactly the type of audience we intend to target. Better
yet, ESPN.com users that have bought a new car in the past year
have an index of 132, making car insurance an extremely relevant
advertisement. ESPN.com users are also extremely social; heavy
beer consumers have an index of 161 while those that attend bars
and clubs weekly have an index of 181. Our target audience is
educated and successful, yet still young and enjoys having a good
time. Therefore, State Farm will position itself as a necessity for this
group, as they are going out and being social, yet perhaps
purchasing their first car. We will spend $19.5 million on interactive
banner style advertisements and will use pulsing as our scheduling
strategy throughout the entire year. However, we will run more ads
during the time of March Madness. This is a top month for buying
car insurance, and also coincides with our advertising on television
during the games.

Since our target audience is full of recent college graduates, we will

advertise on Facebook.com, an extremely popular social network.
With Facebook, you can create an ad and choose precisely the
audience you want to see it. The ad can then be shown to the
friends of the chosen audience, hoping that they are part of the
same demographics and share the same interests. Facebook
advertising also allows you to become part of peoples' daily
conversations by creating a Social Ad where users can interact and
comment on your page. Ads can be purchased by number of clicks
or by impressions. We will be sure to target males, ages 21-25 and
will also target members of social groups that involve cars, car
accidents, car insurance and driving. After searching on Facebook,
we found hundreds of groups that we will target related to cars and
car insurance. A handful of Facebook group name examples include
“I Want to Pay Less for My Car Insurance”, “Why is Car Insurance so
Expensive?”, “My Car Insurance Costs Me More Than My Car”, “I
Really Hate That Guy From Allstate Insurance” and “BULL! I only
saved 14.9% on my Car Insurance by Switching to Geico”. Gieco
also has its own Facebook group, which is completely free of cost to
create. We plan to create one for State Farm that is fun and includes
a link to the company’s website. We plan on spending $14.63 million
on creating social ads that will run throughout the entire year. By
using the Facebook social ads, we can be sure that our specific
target audience is reached, and interaction and feedback will take
place on our ad’s webpage.

1.6 billion monthly page views are registered on CNN.com, including

815 million average page views to the home page alone. CNN
attracts a diverse audience from influentials to business men, and
attracts more C-Level executives than any other website. Unlike
doing a quick internet search, CNN users spend an average of 30.5
minutes on the site, allowing ample time for our ad to be seen. 333
million people also subscribe to CNN mobile worldwide, therefore
allowing our advertisement to be seen on cell phones as well.
Finally, CNN.com is exclusive. It attracts an audience that tends to
not visit other online news sites. In fact, at least 57% of CNN visitors
have not visited another major news competitor in the last 30 days.
Since CNN users are so loyal, we feel that they would love an
extremely friendly and loyal car insurance company like State Farm.
Since CNN.com acts as a daily newspaper for many males, our
advertisement will run throughout the entire year.
Outdoor/Billboards - $42 million
The outdoor campaign will run in 5 major cities throughout the national
State Farm campaign.
• Chicago

• Dallas

• Miami

• Boston

• Los Angeles

We will buy a 100 show billboard, reaching a number of viewers

equivalent to 100% of the population in the area every two days.
According to Gaeblar Ventures, when determining the costs of
billboards, it is necessary to look at the amount of traffic known to
go past the board (the Annual Average Daily Traffic, or AADT), the
number of people age 18+ in each vehicle, and the hours of
illumination for the display. After determining that, we can better
plan our emphasis based on what we think will contribute the most
audience penetration from our target market.
Since our campaign is national, we plan to hit five major US
cities with our billboards: Chicago, Dallas, Miami, Los Angeles, and
Boston. We chose these five cities, because they are all heavily
populated and evenly spread out throughout the US. Another
reason we chose these five major cities was because of the research
we found from the U.S. Census Bureau. According to the U.S.
Census Bureau, the entire population of the U.S. is currently
303,484,439. The 2006 population estimate for Chicago, Illinois is
2,833,321. The 2006 population estimate for Dallas, Texas is
1,232,940. The 2006 population estimate for Miami, Florida is
404,048. The 2006 population estimate for Los Angeles, California
is 3,849,378. The 2006 population estimate for Boston,
Massachusetts is 509,763. We aim to target as many people as we
can within each city, based on their total population and four week
rate for billboard ads. According to the Traffic Bureau for Media
Measurement, the total MSA population of all these cities for 8-sheet
outdoor billboard advertising is 27219.7 million, with the number of
panels available being 1462, and the average four week rate listed
as $62593.75. We plan to have billboards posted on nearby
expressways and commuter routes. Billboards will also be placed in
advantageous locations such as big shopping centers, auditoriums,
and other highly populated areas, where the billboard will be
noticed.

Sponsorship - $63 million

The sponsorship will run nationally at the events during the stages
of NCAA Basketball March Madness tournament.

State Farm will be sponsoring an event during one of the peak times
of auto insurance sales throughout the year. March is a month that
is a key player for auto insurance sales during the year. Many
people buy new cars in the Spring after the harsh winter months,
and March is also a good time because many of the new models for
that year have come down a bit in price since they were released a
few months prior. One of the most popular months for sports fans
across the country also happens to be March, as fans throughout
the country create pools and follow closely as they watch their
teams compete in the NCAA Basketball March Madness.

Because we are targeting males age 21-25, advertising during

sporting events is an effective way to reach the largest number of
our target segment. Our primary research showed that 86% of our
target audience follows sports through ESPN. State Farm’s
sponsorship of the NCAA March Madness tournament will heighten
brand recognition for a minimum of 86% of the target market. This
will also give State Farm the opportunity to be a forerunner in the
minds of our target segment as they begin thinking about
automobile and insurance purchases. Sponsorship will allow us to
put the State Farm name on scoreboards, on scrolling banner ads on
score tables, on televised commercials, in bathroom stalls, on game
tickets and more throughout the entire NCAA March Madness
tournament.
 Scheduling Flowchart
J S
Jan Feb Mar Apr May une July Aug ept Oct Nov Dec
1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2
Week 3 4 3 4 3 4 3 4 3 4 3 4 3 4 3 4 3 4 3 4 3 4 3 4
TV
Magazine
Internet
Outdoor
Sponsors
hip

exposure to ads/event
promotion
increased exposure to
ads/event promotion
 Part IV:
Creative Strategy

Creative Strategy Statement

Who is our target?

• General male population

• Recent college graduates

• Ages 21-25

• Sports-oriented

Where are we now in the mind of this person?

We are well-known for being one of the leading brands in auto-
insurance, and we are trusted for providing very good coverage at an
affordable price.

Where is our competition in the mind of this person?

Allstate is the main competitor and is known as being more expensive
and therefore, has a more affluent consumer base. Geico and
Progressive are known for having the most inexpensive policies by
relying less on insurance agents and more on policies through the
internet.

Where would we like to be in the mind of this person?

We would like to be the first choice for auto insurance buyers that are
buying their first policy after graduating college.

What is the consumer promise?

State Farm's consumer promise is to help people manage the risks of
everyday life by providing full coverage auto-insurance for an
affordable price.

What is the supporting evidence?

The supporting evidence is their competitive prices, friendly agents,
and easily accessible resources (telephones and internet) that provide
valuable information about their policies.

What is the tone of the voice for the advertising?

The tone of our campaign will be humorous, but also trustworthy and
knowledgeable.

Creative Rationale

The overall creative focus will be a sports theme that relates the
unexpected events in sports games to unexpected occurences in
life. We will rely on humor in regards to the sporting events and
then bring a more serious feel to the importance of insurance and
planning for the unexpected. Each different media vehicle will have
the same call to action, which is to visit State Farm’s website to get
an insurance quote. According to Dan Obrien’s Tapestry
Presentation, online interaction is the most appropriate call to action
for general markets .

TV:
The main creative concept for our TV spot is to show different well-
known sports bloopers or unexpected wins while a voiceover
explains how you can't always be prepared for unexpected
situations in sports, but you can be prepared when it comes to
motor vehicle accidents. It will continue to emphasize the low cost,
unlike the risks of gambling on sports games, and the excellent
coverage for these unexpected incidents. The bloopers will be
chosen depending on where the spot runs. For example, in Chicago
one blooper would be the Cubs' play-off game that ended when a
fan interfered with a game-winning home run. By specifically
chosing sports teams from a particular area, we plan to spark a
relevant interest with the viewer based on their preference for their
local team. The call to action for the ad will be to visit State Farm’s
website to find out more information and get a quote for car
insurance.

Magazine:
In order to reinforce the creative concept from the tv spot, we will
be having a similar creative concept in a print format. There wil be
an image of a dissapointed fan looking at the score board of their
local team (depending on what city the advertisement is placed) as
he heads to leave the arena. The headline will read, “Not every play
can be planned... But you can choose your own car insurance.” The
copy will then emphasize the low cost, high quality insurance that is
available through State Farm. In addition, the call to action for the
ad will be the same as the TV spot.

Internet:
The internet campaign will continue to reflect our main sports
creative strategy while offering a direct link to get a quote from
State Farm’s insurance page. For the Espn.com site, there will be a
banner ad consisting of a game where the viewer has to shoot a
basket into the correct hole. The failed attempted shots will show
the prices of other competitors insurance quotes. The winning hole
will show the State Farm’s prices . This will be an interactive way of
comparing State Farm’s insurance prices while keeping the sports
theme.

Outdoor:
The outdoor campaign will consist of a simple headline over an
image of a rioting crowd after a sports game, with the headline
reading, “Sometimes you have to prepare for the loss, chose State
Farm for the unexpected.” Then there will be the company’s call for
action. The billboard advertisements will be designed to catch our
target market's attention to create a quick, but memorable
impression, leaving the reader thinking about the advertisement
after they have driven past it. According to Gaeblar Ventures, the
majority of people who own automobiles are typically more affluent
and mobile, which assures that billboard ads will directly appeal to
our target market. We will also research the traffic patterns of our
target customer base in the cities we have chosen to run billboards.

Sponsorship:
The sponsorship will focus on a call to action. They will be primarily
revolved around getting the State Farm name out to the millions of
March Madness viewers and directing them to the State Farm
website. The “Like a Good Neighbor, State Farm is there,” slogan
will also be used in this sponsorship because it will be used to
accompany the heavy campaigns that will be run during the same
time period. It is going to be impossible for March Madness viewers
to avoid seeing the State Farm name throughout the competition.
1st Rough Print Advertisement
2nd Rough Print Advertisement
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