Geico Regional Marketing, Part 1
Geico employs a nationwide marketing strategy for its products, including home and auto insurance, across various marketing channels such as digital and traditional. There is no indication that the company has any region-specific messaging or bundles, and its marketing channel mix does not differ in the assigned states. Although Geico's marketing messaging is centered on value and savings, its prices for home insurance products are not as competitive those for its auto insurance products.
- Before Geico revolutionized insurance advertisement in 1999, insurance companies ran somber campaigns with warning messages of the consequences of not having insurance. Through its collaboration with Martin Agency, Geico changed the insurance advertising game with humorous ads that were meant to make its brand fun and likable.
- Humor worked for Geico and it rose from the eighth-largest to the second-largest auto insurer in the United States. Other insurance companies followed suit as each tries to connect with a "younger, more cynical audience."
- To balance between earnest messaging and funny content, Geico's advertisements always end with its informative tagline: "15 minutes saves 15%."
- Geico's marketing is mainly focused on digital channels because it lacks "the storefront presence of the brick-and-mortar model seen with Allstate and State Farm." The company uses pre-roll ads, also known as 'unskippable' ads. These are short ads that last for five seconds form start to finish, which is time one has to watch an ad before skipping to the content.
- According to Adweek, Geico's marketing strategy involves using "consumer data to dictate its advertising plans." It also invests heavily in advertising and currently has the largest marketing budget in the United States insurance market.
- Geico also uses various methods to create customer engagement. Recently, the company launched the #BestofGeico contest that asked consumers to rank Geico adverts. It also has a strong social media presence where it interacts with customers.
- Additionally, Geico advertises on traditional channels, especially on television. It has run a number of television commercials for its home and auto products, some of which were aired during the Super Bowl.
- Geico's marketing campaigns are centered around its claim to offer comparably lower pricing. The company claims to reduce costs by limiting its physical presence and eliminating broker/agent costs by selling directly to the customer.
- A review was conducted to establish whether geico delivers on its promise of low prices in Texas, Hawaii, New Mexico, and Alabama. The results were as follows:
- In Texas, Geico's auto insurance rates are only second to Texas Farm Bureau's in terms of affordability. However, a review of various reports found that it fared poorly in the home insurance space.
- In Hawaii, Geico's auto insurance rates are among the lowest in the state; however, its pricing for home insurance products falls behind other major insurers price wise.
- In New Mexico, Geico's auto insurance products are competitively priced while its competitors offer comparably cheaper home insurance products.
- In Alabama, Geico's car insurance products are among the cheapest in the state. However, its home insurance products are not among the cheapest on offer.
The research team determined that Geico employs a nationwide marketing strategy for its products, including home and auto insurance. Our research entailed searching for reports from media and marketing resources such as Forbes and Adweek, respectively. While we managed to find insights into Geico's national marketing strategy, we could not find any indication that the company conducts regional marketing campaigns. We also searched through Geico's website, social media profiles, and annual reports (Berkshire's). The website provides a tool for calculating home and auto insurance rates by state but does not provide any information on its marketing campaigns. Also, Geico only has a single profile on all social media (Facebook, Twitter, and Instagram) and video sharing (YouTube) platforms, and our reviews showed that they did not provide any state-specific information. Therefore, the research team has provided information on Geico's overall marketing strategies. We have indicated on the spreadsheet that there is no region-specific messaging or bundles and that the marketing channel mix does not differ in the assigned states.