Essay on Allstate Mayhem: Unexpected Collisions, Accidents & Competitors

Give a summary of the case. The case is majorly about the Mayhem campaign that was released by the Allstate insurance company executives. Dean Winters, an actor, was incorporated in the campaign to personify how one can encounter an unexpected collision, damage, or accident. The campaign was a way of showing individuals the importance of insuring their properties since an accident can occur anywhere and anytime. However, as a result of how well Allstate was progressing, competitors came in and interfered with the success share of Allstate, making it challenging to be at the forefront.

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What has happened in the industry and to Allstate since the case? Before the case, auto insurance companies applied no creativity in their advertisement. However, after the case, the companies have formulated and innovated new promotion and advertising strategies for them to outshine the rest. The companies have in the recent invested more money in promotions and advertisements to ensure the message reaches all customers. Of the promotional elements identified in Chapter 15.2, identify and explain how Allstate uses them. Please be thorough. (You might need to research outside of the case.) Public relations and advertising have been the significant elements applied by Allstate company. Allstate has done everything to remain at the top, which includes using famous characters to depict pictures of how real-life accidents happen and the importance of insuring their properties. It has also used social media advertising such as twitter and the use of TV to display advisements (Mosley, 2012). Allstate has also tried as much as possible to create a good public relation with their customers by using real-life examples which carry the emotions of many viewers.

Who is the target audience for this ad campaign? (Think demographics and psychographics) The main target for this campaign was the younger demographic. It is so because younger people have enough money to cater to their needs and support them in case an accident happens abruptly. The young demographic was thus being urged on the importance of insurance.

What were the key problems in the case? The significant problem in the case was the fact competition was elevating among auto insurance companies. Allstate Competitors were at their forefront to bringing down Allstate since it was excelling in the market share. The magnitude of the budget was a big challenge for all auto insurance companies as well as they failed to advertise content that focused on a specific demographic.

How did Allstate handle those problems? To outshine among the auto insurance companies as well as try to maintain its market share, Allstate company came up with real-life campaigns like the one on Mayhem to try and capture the attention of most customers. They also raised their budget to $ 642 million, where most of the money gets allocated to the advertising and marketing sector.

How should they measure the success of their strategies? The success of their approach can be determined by:

• if the message that was advertised reached the required demographics.
• If the customers were attentive toward their campaign
• How strong the brand association was created during the campaign.
• If the campaigns motivated customers to consider insuring themselves with their company (Lipe & Salterio, 2000).

References

Lipe, M. G., & Salterio, S. E. (2000). The balanced scorecard: Judgmental effects of common and unique performance measures. The Accounting Review, 75(3), 283-298. Retrieved from https://aaapubs.org/doi/abs/10.2308/accr.2000.75.3.283

Mosley Jr, R. C. (2012). Social media analytics: Data mining applied to insurance Twitter posts. In Casualty Actuarial Society E-Forum (Vol. 2, p. 1). Retrieved from http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.439.946&rep=rep1&type=pdf