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Lookthe
  on
 Bright
     Side
            1
Contents
     Contents
    Executive Summary.......................................................... 2

    Situation Analysis and Campaign Objectives................. 3-4

    Research Objectives and the State Farm Brand.............. 5-6

    Brand Archetypes and Competitive Analysis ................. 7-8
                                                                                                 At Northwood Advertising,
                                                                                                 we have one common goal...
                                                                                                     To accomplish any
                                                                                                  objective thrown our way.

                                                                                               We recognize a unique element
                                                                                               within our agency that promotes
    Primary Research and Target Market.............................. 9-10                    creative and precise solutions to the
    21 Words and the Circle of Sales...................................... 11-12
                                                                                             ever-changing world of advertising.

    Creative Strategy .............................................................. 13-14   It is what drives us to complete a task
    Traditional (Print, TV and Radio)..................................... 15-18
                                                                                                     no matter what the cost.

    Website and Digital.......................................................... 19-20          We have faith in who we are
    Digital and Look on the Bright Side Tour........................ 21-22                             and what we do.
                                                                                                      More importantly,
    Outdoor and Look on th Bright Side Tour....................... 23-24                         we have faith in one another.
    Look on the Bright Side Tour............................................ 25-26
                                                                                               Each of us enters as individuals,
    Mobile and College Intern Program ................................ 27-28                   but emerge as part of a unified
    Media Strategy and Flightplan ........................................ 29-30                    and dedicated team.

    Media Budget.................................................................... 31-32     This led us to become one team,
                                                                                                   Northwood Advertising.




1
s   Executive Summary
    Northwood Advertising has developed a fully integrated marketing campaign that will
    strengthen State Farm’s brand image among the 18-25 target market. It will change the
    way this demographic views the reality of purchasing insurance as a whole, and it will
    make State Farm a more relevant brand with their lifestyle. This campaign will reach
    millions of young adults by staying true to the State Farm brand with a unique approach
    and an optimistic tone. The campaign will be implemented through both traditional and
    non-traditional media, as well as grassroot and promotional initiatives. We don’t intend
    to interrupt the target market’s lives and sell them a service they don’t care for. We will
    simply show them how insurance doesn’t have to be such a frustration or hassle when
    you’re insured by State Farm.




                                                                                                  2
Situation Analysis
    Since State Farm’s beginning in 1922, the agent-based insurance
    company has remained true to its roots by providing reliable and
    quality insurance to millions. The combination of their proven track
    record and the expertise of their local agents have placed them as the
    leading auto insurance provider. While having a leading 17.6% share
    of the auto insurance market, they seem to be out of touch with the
    18-25 demographic. This is why we, Northwood Advertising, have
    been challenged with the task of creating an advertising campaign
    that will bridge this gap and continue to change the target market’s
    perception of the State Farm brand.




3
Campaign Objectives
•	 Transcend State Farm’s brand image in the eyes of the 18-25 target market
      •	 Moving away from its current “old school” and “your parents’ insurance company” image

         to one that is younger and more relevant to the target market and their lifestyles


•	 Increase State Farm’s top-of-mind brand awareness among the target market by 25%
•	 Utilize grassroot and promotional initiatives to create awareness of State Farm
•	 Drive and retain users to the Look on the Bright Side website
•	 Achieve 10-15% growth through new young adult auto and renters insurance policies




                                                                                                 4
Research Objectives
    To Understand...
    •	   State Farm brand and what they stand for
    •	   How the target market views the insurance industry, and its importance in their lives
    •	   State Farm’s current position in the insurance market in relation to its main competitors
    •	   How to creatively position State Farm as a relevant brand with the target market
         and their lifestyles
    •	   The media consumption of the target market and which channels State Farm
         can leverage most effectively to reach them


    Other Important Things To Know...
    •	   What draws the target market to specific auto insurers and why?
    •	   The target market’s purchase process when they go to buy a new insurance policy




5
The State Farm Brand
•	 State Farm is a Caregiver brand.
•	 They strive to help and protect others.
•	 By serving others when they are in need, State Farm helps others achieve their goals
  and protect what matters most.
•	 They have the experience and credibility to serve anyone who seeks their trust.
Brand Promise
State Farm understands that nothing is more important than being there.
Like a good neighbor, State Farm is there.
Brand Tone
A Good Neighbor acts inclusively and makes people feel welcomed, valued and accepted.
Brand Personality
Established and experienced yet surprisingly forward-thinking. Sincere, empathetic,
and trustworthy.



                                                                                          6
Brand Archetypes
    To understand State Farm’s current position in the insurance industry,
    we had to search for what sets them apart. With the insurance industry
    being primarily price driven and fairly equal in terms of the service and
    coverage insurers provide, the one thing State Farm can stand on to
    distinguish themselves is their brand archetype. Each of State Farm’s
    main competitors archetypes are shaped by their core strengths,
    business motivations, brand images and personalities. It is behind this
    brand archetype that State Farm will separate themselves from the
    competition. A combination of staying true to their trustworthy and
    reliable image and an optimistic approach will continue to change the
    target market’s perception of the State Farm brand.




7
Competitive Analysis
  Brand Archetype: The Caregiver                           Brand Archetype: The Ruler
  The good neighbor that you can always rely on to         Allstate always has the answers and assures you
  help you out.                                            you’re in good hands.
  Tagline: “Like a good Neighbor, State Farm is there.”    Tagline: “You’re in good hands.”
  Market share: 17.6%                                      Market share: 11.3%
  Yearly Ad Spend: $178 million                            Yearly Ad Spend: $178 million
  Type: Agent-based                                        Type: Agent-based
  Pride of Company: When the worst of times arise          Pride of Company: Being the insurance provider
  there is nothing more important than being there.        who puts all your worries at rest.



                                                          Brand Archetype: The Jester
      Brand Archetype: The Creator
                                                          Geico always strives to make us laugh with their
      Progressive seeks to provide the customer
                                                          omnipresent advertising.
      with flexible coverage options and plans.
                                                          Tagline: “15 minutes could save you 15%
      Tagline: “That’s Progressive.”
                                                          or more on car insurance.”
      Market share: 7.5%
                                                          Market share: 6.9%
      Yearly Ad Spend: $290 million
                                                          Yearly Ad Spend: $477 million
      Type: Direct Insurer
                                                          Type: Direct Insurer
      Pride of Company: Pick your options and
                                                          Pride of Company: Just a little time can save you a
      payment plan.
                                                          chunk of change.



                                                                                                                8
Primary Research
    While conducting our primary research, we distributed over 500+ surveys, held
    10 focus groups, as well as 5 personal interviews with participants from the
    18-25 target market. The following are the most valuable insights we gathered
    from the experience.

    •	 83% reported the first step in the purchase process was seeking guidance from
       their parents.
    •	 47% still remain on their parents insurance policies.
    •	 63% pay for 50% or more of their current living expenses.
    •	 60% reported price as the most important factor when shopping for insurance.
    •	 77% however said if the difference in price between providers was relatively
       small that both customer service and reliability would be deciding factors.
    •	 91% reported two main reasons for not having renters insurance:
         1) Unaware that there “even was such a thing”
         2) Don’t have a need for it and feel it’s a waste   Top-of-Mind Brand Awareness
         of money                                            •	 Geico 35%
                                                             •	 Allstate 23%
                                                             •	 Progressive 20%
                                                             •	 State Farm 15%
                                                             •	 Other 7%
9
The Target Market
Most of the 18-25 have recently graduated high school, are in college, or are new
to the work force. They have grown up in a fast-paced, ever
changing world; continually balancing school, work, family
and friends. Money doesn’t grow on trees and they expect
to get what they pay for, especially when it comes to
insurance. They live a speak-your-mind philosophy
and aren’t afraid to challenge the status quo. Part
of the first generation to have grown up with the
Internet in a technologically driven world, they
are accustomed to having their needs met
quickly; meaning they are both
high-performance and high-maintenance.
Most importantly however is their
outlook on life. They are
ambitious and optimistic
about their futures.
...Or Simply In 21 Words
                            Connected.
                   Opinionated. Colorful.
        Energetic. Innovative. Curious. Unconventional.
     Clever.   Ambitious. Headstrong. Inspired.
        Gutsy. Unified.   Optimistic. Radical.   Engaged.

                Empowered. Perceptive. Social.
                     Educated. Proactive.
11
The True Blue
...is represented by legacy young adults. They are the young adults
whose parents are already insured by State Farm and, in turn, have
convinced their children to remain with State Farm. In order to
retain this important portion of the market, this campaign will aim
to maintain their confidence in State Farm as a reliable and
quality insurance company that will cover them through the best


                                                                             te Farm
and worst of times.


The War Zone                                                               ta




                                                                       S
...is represented by the young adults who already hold policies with
a competitor. They most likely belong to another provider because
of price, convenience, or perhaps because their parents are insured
by them. However, they are open and willing to switch providers if
it is to their benefit. Our campaign will aim to change the way they
view the State Farm brand, making them a more relevant brand to
the lifestyles they live and kind of insurance they seek.


The Golden Future
...is represented by the Young Adults who are either uninsured or
are currently looking for a new auto insurance provider. They don’t
really understand insurance, nor do they care to. They expect to
receive quality coverage for a reasonable price. Our campaign will
                                                                       ir


                                                                                   les
                                                                       C
aim to convince the Golden Future that insurance is not something
                                                                            cle
                                                                                of Sa
you need to worry about, nor is it something that should ruin your
day. We want to optimistically inform them that when you’re
insured by State Farm everything will be okay because
Like a Good Neighbor, State Farm is there.

                                                                                         12
Creative Strategy
     After conducting research and gaining a true understanding of the State
     Farm brand we discovered there was only one path we could take with our
     creative message. In order to change the target market’s perception of State
     Farm while staying true to the brand, we had to distinguish ourselves from
     the competition with an optimistic approach. We wanted to build upon what
     State Farm has accomplished to make them the leading auto insurer today.
     We decided the use of an overly positive tone in our campaign would
     entertain the target market and transcend the perception of State Farm’s
     brand. Tailored around State Farm’s caregiver brand archetype and good
     neighbor feel, we came up with the tagline: Look on the Bright Side.
     The entire campaign will speak to the idea that when you are insured by State
     Farm you can Look on the Bright Side because State Farm knows there is
     nothing more important than being there when you need them most.




13
Lookthe
  on
 Bright
     side
        14
Print
     This print ad will aim primarily
     at the male portion of the target
     market with placement in GQ
     and Rolling Stone. It will
     resonate with anyone who has
     dealt with car trouble and the
     hassle of repairs. Those who
     see the ad will be convinced to
     Look on the Bright Side beause if
     you are insured with State Farm
     they’ve got your back.




17
This print ad follows the same
idea as with the previous ad.
It will aim at the female
target market with placement
in Glamour and Cosmopolitan
magazines. It will resonate with
females because they can relate
to the stress of getting ready in
a chaotic bathroom when all of
a sudden something goes
terribly wrong. Despite the
sparking outlet, she can Look
on the Bright Side because with
State Farm renters insurance all
the damage will be covered.




                                    18
Traditional
                                                  Television Commercial
                          This commercial is designed in an animated format similar to early Disney
                         cartoons. It opens with a character walking through a dark and gloomy
                         street where nothing seems to be going well. Trees lining the street are
                       bare and a dark storm cloud is looming overhead. However, the character is
                     enclosed in a beam of light, whistling the tune of our campaign’s song,
                     “Always Look on the Bright Side of Life.” As he walks and whistles the
                     landscape around him begins to get brighter and more colorful. State Farm’s
                     logo appears at the end of the commercial when the character winks into the
                     camera with a smile.

     Radio Spots
     Radio spots will be simple and strictly for campaign branding purposes. A voice will
     begin the spot with the statement “30 seconds of optimism brought to you by State
     Farm,” followed by 30 seconds from the song “Always Look on the Bright Side of Life”.
     These spots will spread awareness of the campaign and the State Farm brand, all the
     while leaving a catchy, happy-go-lucky tune stuck in the heads of our target market.


15
16
Website                                           lookonthebrightside.com
     Research showed that the target market finds the current State Farm website too text heavy and difficult to navigate.
     To solve this problem a Look on the Bright Side campaign website will be launched in May 2010.
                              The website will only provide information pertaining to auto and renters insurance, making it
                                                                                            target market friendly.



                                                                                           Features of the website:
                                                                                             •	 Easy to read information on
                                                                                                auto and renters policies
                                                                                            •	 A link to find the nearest local
                                                                                                State Farm agent
                                                                                           •	 An interactive game
                                                                                           •	 Video footage from the Look
                                                                                                on the Bright Side Tour stops
                                                                                           •	 Quote calculator for potential
                                                                                                new policies
                                                                                          •	 Links to the State Farm Pocket
                                                                                                Agent smartphone app
                                                                                          •	 Facebook Connect
                                                                                          •	 Twitter enabled




19
Display Ads                                                  Digital




Look on the Bright Side ads will be placed on the target market’s most popular
websites. The ads will feature customers in comical situations demonstrating how
State Farm offers many other services aside from auto insurance. The subtle joke
behind each ad will convey that if you are insured with State Farm, you’re covered.

                                                                                      20
Digital                                               In-text Ads
 Interactive Game                                          As our target market browses the internet we can
                                                           target them with in-text ads. The same keywords
                                                           used with search will be purchased, and a scroll
     Rich media ads will introduce the Look on the
                                                           over will offer to lead them back to our
     Bright Side game. When viewers hover over the
                                                           campaign’s website lookonthebrightside.com.
     ad with their mouse it will expand, streaming the
     game directly from our website. The catchy song
     will be playing in the background and the State
     Farm logo will always be present. The game will
     also be available on Apple’s iPhone and iTouch.



     Search
      Search will play a key role in the success of our
      campaign by positioning the State Farm name
      with those who search for auto and renters
      insurance. The following AdWords will be
      included: insurance, auto, renters, cheap, Ford,
      GM, Honda, Toyota, Volkswagen, Nissan, claim,
      Look on the Bright Side, accident, collision, dam-
      age, State Farm, Panama City, Allstate, Geico,
      Progressive, etc.




21
Look on the Bright Side Tour
        The Look on the Bright Side Tour will be the primary grassroot and promotional
        effort of this campaign. A 10-month nation wide tour will begin in June 2010
        directly interacting and appealing to the diverse18-25 target market. The tour
        will give State Farm a significant presence in the lifestyles of the target market
        and increase brand familiarity. The Look on the Bright Side Tour will consist of
        various sponsorships and events to be held throughout the year. By the end of
        the tour State Farm will have changed their brand perception and increased
        their top-of-mind awareness among the target target, which in turn will lead to
        an increase in new auto and renters insurance policies.



Tour Timeline
Vans Warped Tour     ESPN Tailgates      Times Square         Minority Tour       Spring Break PCB
6/10 - 8/10          9/10 - 11/10        12/10                1/11 - 2/11         3/11 - 4/11



                                                                                                     22
Look on the Bright
 Vans Warped Tour Sponsorship
     To reach a unique segment of the target
     market, the Look on the Bright Side Tour will
     sponsor a stage at the Vans Warped Tour from
     June 25th - August 19th. This will increase
     awareness and change the perception of State
     Farm with over 800,000 young adults by
     supporting up and coming local bands.

                           ESPN College Gameday Tailgate
                                         Every Saturday during the NCAA college football
                                         season the Look on the Bright Side Tour will be
                                         following ESPN’s College Gameday crew around the
                                         country. Tents will be set up near stadiums to draw in
                                         thousands of college students and young adults by
                                         offering free giveaways, a punt-pass-kick competition,
                                         bean bag toss, and ladder golf. A great way for State
                                         Farm to continue becoming a more relevant brand with
                                         the young adult target market.
23
Side Tou r
New Year’s Eve
State Farm will bring in the New Year with
thousands of young adults in Times Square.
The Look on the Bright Side Tour will have a
significant presence in the massive crowd.
Free State Farm branded scarves, gloves,
hats, and noisemakers will be given out to
benefit those in attendance. All the while,
millions of people will be seeing this from
their televisions at home.

                                               Minority College Tour
            State Farm will incorporate a Hispanic and Black College Tour that identifies with
            growing minority populations. The tour will visit the most predominantly Hispanic
            Colleges in January and Black Colleges in February during Black History Month. Tents
            will be set up to promote State Farm and their insurance by offering fun events and
            free branded product giveaways. The goal of this portion of the tour is to reach a
            segment of the target market that could otherwise be overlooked with the other
            Look on the Bright Side Tour events.

                                                                                               24
Look on
Outdoor             The outdoor executions in this campaign will
                    all relate to the Look on the Bright Side Tour stop
                    in Panama City Beach, Florida. As spring
                    breakers drive south they will see a series of
                    billboards within several miles of arriving.




          This series of State Farm branded billboards will
          creatively poke fun at how long most of the young
          adults have been driving. Once they reach Panama City
          Beach there will be a massive billboard spanning the
          road telling them to Look on the Bright Side because
          they are finally there. The excitement of finally arriving
          in Panama paired with this unique execution will surely
          increase State Farm brand awareness with thousands.
25
the Bright Side Tou r
Every spring thousands of
college students head south               Spring Break in
to this Florida panhandle                Panama City Beach
party. A significant presence
will allow State Farm to
                                   Sponsored Beach Stage                   Trash and Recycle Bins
become a more relevant             •	 State Farm will sponsor a Look       •	 Brand trash and recycle bins
                                      on the Bright Side stage that will      will cover the beach and
brand with the target                                                         encourage spring breakers to
                                      be located at the most
market’s lifestyle and change                                                 clean up the beach
                                      populated part of the beach          •	 This will continue State Farm’s
their perception of State Farm.    •	 Daily contests, giveaways and           reputation as a responsible
                                      live concerts will draw in              brand
Concerts, contests, free              thousands of young adults and
giveaways, and several other          create invaluable brand              Gas Cards
                                      exposure                             •	 Before driving down to PCB,
fun promotions provided by                                                    current State Farm customers
                                   Free Product Giveaways                     will be able to provide proof
the Look on the Bright Side Tour   •	 State Farm branded cooler               of their hotel reservation in
                                      backpacks, can koozies and              exchange for a $25 gas card
will surely have the spring
                                      mardi gras beads
breakers remembering State         •	 Useful product giveaways will        MTV Presence in PCB
                                      roam the beaches spreading           •	 MTV’s sponsorship and
Farm as a huge part of their          the State Farm name                     week-long televised coverage
wild and fun-filled trip to        •	 Products will leave a lasting           will provide millions of
                                      impression when spring                  impressions on the MTV
Panama City Beach.                    breakers continue to use them
                                                                              cable network
                                      after returning home

                                                                                                           26
Mobile
              As part of our mobile efforts we will continue to
              promote State Farm’s current app, Pocket Agent.
               Pocket Agent is compatible with the iPhone,
               iTouch and other smartphones and has great
                potential, however it needs promotion in order
                to gain popularity with the target market.
                 In addition to the great features it already has,
                  we will offer the “Always Look on the Bright
                  Side of Life” mp3 ringtone and calendar
                   updates related to the Look on the Bright Side
                   Tour. Pocket Agent will engage the target
                    market and increase campaign awareness.




27
College Intern Program
This campaign will implement a State Farm college
intern program to promote State Farm’s renters
insurance on college campuses. Four interns will be
delegated to each selected college across the country.
The primary responsibility of the interns will be to
come up with creative and innovative ways to pro-
mote State Farm’s renters insurance. After the interns
are selected, they will work directly with local State
Farm agents to help build State Farm brand awareness
through social media and word of mouth.

•	 Interns will work 20 hours per week for $10 per hour, along with
   commission incentives.
•	 If students sign up for renters insurance within 30 days of signing
   their lease they will receive a 15% discount off their rate.
•	 The interns will promote State Farm renters insurance at various
   college events such as orientation, welcome week festivities and
   career fairs.




                                                                         28
Media
     Strategy
     The Look on the Bright Side campaign is focused around the use of diverse, relevant,
     and cost effective media vehicles to reach the target market. The media plan engages
     our audience through digital and traditional media, grassroot, promotional events
     and sponsorships. This campaign focuses on interaction between State Farm and the
     target market to create a sustainable relationship and change their perception of the
     State Farm brand. It will make State Farm an insurance company young adults can
     more easily relate with and, in turn, increase the total number of auto and renters
     insurance policies young adults hold with State Farm.

     Geographic Focus
     Our media strategy will be launched nationally across traditional platforms with
     specified locations for designated promotional events. The areas that were chosen for
     promotional events were based on the highest concentrations of the target market
     within their population.




29
Flightplan
FLIGHTPLAN                       May '10 June '10   July'10   Aug. '10   Sept. '10   Oct. '10    Nov. '10   Dec. '10   Jan. '11   Feb. '11   March '11 April '11   May '11
Television 
MTV PrimeFme
MTV AGernoon
Cartoon Network Adult Swim
Print
GQ
Rolling Stone
Cosmopolitan
Glamour 
Radio
Out‐of‐Home
Billboards
Digital                                              
Search 
Ad Network
In‐text
Mobile
Promo:ons                                                                                                    
College Intern Program
ESPN Gameday Tailgate
Minority College Tour
New Year's Eve in Times Square
Panama City Beach Spring Break
Vans Warp Tour




                                                                                                                                                                         30
Media Budget
     Television           Unit Cost   Freq.      CPM    Impressions          Cost
     Prime Time
     MTV                  $625,000      20    $484.35   25,824,000    $12,500,000
     Late Night
     Adult Swim           $250,000      10    $313.61    8,769,000    $2,500,000
     MTV                  $250,000       9    $334.00    7,485,000    $2,250,000

     Print                Unit Cost   Freq.     CPM      CirculaIon         Cost
     GQ                   $139,371        4    $49.73       700,565     $557,484
     Rolling Stone        $174,065        4    $29.47     1,476,399     $696,260
     Cosmopolitan         $222,400        4    $10.84     5,128,000     $889,600
     Glamour              $194,476        4    $15.50     3,136,000     $777,904


     Radio                Unit Cost   Freq.      CPM         Reach          Cost
     Top 200 Markets          $250       80     $8.92    5,600,000    $4,000,000

     Out‐of‐Home          Unit Cost   Freq.      Cost
     Billboards            $1,815         8   $14,520
     Billboard CreaIon    $50,000         2   $50,000
     Welcome Billboard     $5,000         2   $10,000

     Mobile               Unit Cost   Freq.      Cost
     iphone/itouch Game     $4,167       12   $50,000

31
Media Budget
                            Labor &      Event          Expected 
!"#$#%#&'                Produc,on   Materials       Impressions             Total
Internship Program         $480,000    $25,000         1,300,000         $505,000
Warp Tour                  $238,759 $2,353,400           800,000       $2,592,159
ESPN Tailgate               $65,116   $810,400           960,000         $875,516
Spring Break               $325,582 $2,584,340           800,000       $2,909,922
New Years                    $5,427   $105,000            50,000         $110,427
Minority Tour               $65,116   $325,750           120,000         $390,866
Qon,ngency                                                               $150,060

                               % of    Digital            Ad Unit             Spend   CPM   Impressions
Media                Spent   Budget    Search                            $1,000,000    $3     6,666,700
                                       Ad Network                        $1,000,000    $2   500,000,000
Television    $17,250,000       43%
                                       In‐text                           $1,500,000    $4   375,000,000
Print          $2,921,248        7%    Facebook           Rich Media       $250,000    $6   41,666,665
Radio          $4,000,000       10%                       Standard         $100,000    $4   25,000,000
OOH               $74,520      0.2%    Pandora            Standard         $100,000    $5   20,000,000
Digital        $6,400,000       16%    Yahoo              Standard         $200,000    $7   28,571,428
Mobile            $50,000      1.0%                       Rich Media       $200,000    $9   22,222,220
                                       ESPN               Standard         $100,000    $5   20,000,000
RoCalDes         $500,000      1.0%
                                                          Rich Media       $100,000    $7   16,666,666
ProEoDons      $7,564,500       19%    Flickr             Standard         $100,000    $6   16,666,666
FonDngenGC     $1,239,732      3.0%    Hulu Sponorship                   $1,450,000
Total         $40,000,000    100.0%    Site CreaOon                        $300,000



                                                                                                          32
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Look On The Bright Side Plans Book

  • 1. Lookthe on Bright Side 1
  • 2. Contents Contents Executive Summary.......................................................... 2 Situation Analysis and Campaign Objectives................. 3-4 Research Objectives and the State Farm Brand.............. 5-6 Brand Archetypes and Competitive Analysis ................. 7-8 At Northwood Advertising, we have one common goal... To accomplish any objective thrown our way. We recognize a unique element within our agency that promotes Primary Research and Target Market.............................. 9-10 creative and precise solutions to the 21 Words and the Circle of Sales...................................... 11-12 ever-changing world of advertising. Creative Strategy .............................................................. 13-14 It is what drives us to complete a task Traditional (Print, TV and Radio)..................................... 15-18 no matter what the cost. Website and Digital.......................................................... 19-20 We have faith in who we are Digital and Look on the Bright Side Tour........................ 21-22 and what we do. More importantly, Outdoor and Look on th Bright Side Tour....................... 23-24 we have faith in one another. Look on the Bright Side Tour............................................ 25-26 Each of us enters as individuals, Mobile and College Intern Program ................................ 27-28 but emerge as part of a unified Media Strategy and Flightplan ........................................ 29-30 and dedicated team. Media Budget.................................................................... 31-32 This led us to become one team, Northwood Advertising. 1
  • 3. s Executive Summary Northwood Advertising has developed a fully integrated marketing campaign that will strengthen State Farm’s brand image among the 18-25 target market. It will change the way this demographic views the reality of purchasing insurance as a whole, and it will make State Farm a more relevant brand with their lifestyle. This campaign will reach millions of young adults by staying true to the State Farm brand with a unique approach and an optimistic tone. The campaign will be implemented through both traditional and non-traditional media, as well as grassroot and promotional initiatives. We don’t intend to interrupt the target market’s lives and sell them a service they don’t care for. We will simply show them how insurance doesn’t have to be such a frustration or hassle when you’re insured by State Farm. 2
  • 4. Situation Analysis Since State Farm’s beginning in 1922, the agent-based insurance company has remained true to its roots by providing reliable and quality insurance to millions. The combination of their proven track record and the expertise of their local agents have placed them as the leading auto insurance provider. While having a leading 17.6% share of the auto insurance market, they seem to be out of touch with the 18-25 demographic. This is why we, Northwood Advertising, have been challenged with the task of creating an advertising campaign that will bridge this gap and continue to change the target market’s perception of the State Farm brand. 3
  • 5. Campaign Objectives • Transcend State Farm’s brand image in the eyes of the 18-25 target market • Moving away from its current “old school” and “your parents’ insurance company” image to one that is younger and more relevant to the target market and their lifestyles • Increase State Farm’s top-of-mind brand awareness among the target market by 25% • Utilize grassroot and promotional initiatives to create awareness of State Farm • Drive and retain users to the Look on the Bright Side website • Achieve 10-15% growth through new young adult auto and renters insurance policies 4
  • 6. Research Objectives To Understand... • State Farm brand and what they stand for • How the target market views the insurance industry, and its importance in their lives • State Farm’s current position in the insurance market in relation to its main competitors • How to creatively position State Farm as a relevant brand with the target market and their lifestyles • The media consumption of the target market and which channels State Farm can leverage most effectively to reach them Other Important Things To Know... • What draws the target market to specific auto insurers and why? • The target market’s purchase process when they go to buy a new insurance policy 5
  • 7. The State Farm Brand • State Farm is a Caregiver brand. • They strive to help and protect others. • By serving others when they are in need, State Farm helps others achieve their goals and protect what matters most. • They have the experience and credibility to serve anyone who seeks their trust. Brand Promise State Farm understands that nothing is more important than being there. Like a good neighbor, State Farm is there. Brand Tone A Good Neighbor acts inclusively and makes people feel welcomed, valued and accepted. Brand Personality Established and experienced yet surprisingly forward-thinking. Sincere, empathetic, and trustworthy. 6
  • 8. Brand Archetypes To understand State Farm’s current position in the insurance industry, we had to search for what sets them apart. With the insurance industry being primarily price driven and fairly equal in terms of the service and coverage insurers provide, the one thing State Farm can stand on to distinguish themselves is their brand archetype. Each of State Farm’s main competitors archetypes are shaped by their core strengths, business motivations, brand images and personalities. It is behind this brand archetype that State Farm will separate themselves from the competition. A combination of staying true to their trustworthy and reliable image and an optimistic approach will continue to change the target market’s perception of the State Farm brand. 7
  • 9. Competitive Analysis Brand Archetype: The Caregiver Brand Archetype: The Ruler The good neighbor that you can always rely on to Allstate always has the answers and assures you help you out. you’re in good hands. Tagline: “Like a good Neighbor, State Farm is there.” Tagline: “You’re in good hands.” Market share: 17.6% Market share: 11.3% Yearly Ad Spend: $178 million Yearly Ad Spend: $178 million Type: Agent-based Type: Agent-based Pride of Company: When the worst of times arise Pride of Company: Being the insurance provider there is nothing more important than being there. who puts all your worries at rest. Brand Archetype: The Jester Brand Archetype: The Creator Geico always strives to make us laugh with their Progressive seeks to provide the customer omnipresent advertising. with flexible coverage options and plans. Tagline: “15 minutes could save you 15% Tagline: “That’s Progressive.” or more on car insurance.” Market share: 7.5% Market share: 6.9% Yearly Ad Spend: $290 million Yearly Ad Spend: $477 million Type: Direct Insurer Type: Direct Insurer Pride of Company: Pick your options and Pride of Company: Just a little time can save you a payment plan. chunk of change. 8
  • 10. Primary Research While conducting our primary research, we distributed over 500+ surveys, held 10 focus groups, as well as 5 personal interviews with participants from the 18-25 target market. The following are the most valuable insights we gathered from the experience. • 83% reported the first step in the purchase process was seeking guidance from their parents. • 47% still remain on their parents insurance policies. • 63% pay for 50% or more of their current living expenses. • 60% reported price as the most important factor when shopping for insurance. • 77% however said if the difference in price between providers was relatively small that both customer service and reliability would be deciding factors. • 91% reported two main reasons for not having renters insurance: 1) Unaware that there “even was such a thing” 2) Don’t have a need for it and feel it’s a waste Top-of-Mind Brand Awareness of money • Geico 35% • Allstate 23% • Progressive 20% • State Farm 15% • Other 7% 9
  • 11. The Target Market Most of the 18-25 have recently graduated high school, are in college, or are new to the work force. They have grown up in a fast-paced, ever changing world; continually balancing school, work, family and friends. Money doesn’t grow on trees and they expect to get what they pay for, especially when it comes to insurance. They live a speak-your-mind philosophy and aren’t afraid to challenge the status quo. Part of the first generation to have grown up with the Internet in a technologically driven world, they are accustomed to having their needs met quickly; meaning they are both high-performance and high-maintenance. Most importantly however is their outlook on life. They are ambitious and optimistic about their futures.
  • 12. ...Or Simply In 21 Words Connected. Opinionated. Colorful. Energetic. Innovative. Curious. Unconventional. Clever. Ambitious. Headstrong. Inspired. Gutsy. Unified. Optimistic. Radical. Engaged. Empowered. Perceptive. Social. Educated. Proactive. 11
  • 13. The True Blue ...is represented by legacy young adults. They are the young adults whose parents are already insured by State Farm and, in turn, have convinced their children to remain with State Farm. In order to retain this important portion of the market, this campaign will aim to maintain their confidence in State Farm as a reliable and quality insurance company that will cover them through the best te Farm and worst of times. The War Zone ta S ...is represented by the young adults who already hold policies with a competitor. They most likely belong to another provider because of price, convenience, or perhaps because their parents are insured by them. However, they are open and willing to switch providers if it is to their benefit. Our campaign will aim to change the way they view the State Farm brand, making them a more relevant brand to the lifestyles they live and kind of insurance they seek. The Golden Future ...is represented by the Young Adults who are either uninsured or are currently looking for a new auto insurance provider. They don’t really understand insurance, nor do they care to. They expect to receive quality coverage for a reasonable price. Our campaign will ir les C aim to convince the Golden Future that insurance is not something cle of Sa you need to worry about, nor is it something that should ruin your day. We want to optimistically inform them that when you’re insured by State Farm everything will be okay because Like a Good Neighbor, State Farm is there. 12
  • 14. Creative Strategy After conducting research and gaining a true understanding of the State Farm brand we discovered there was only one path we could take with our creative message. In order to change the target market’s perception of State Farm while staying true to the brand, we had to distinguish ourselves from the competition with an optimistic approach. We wanted to build upon what State Farm has accomplished to make them the leading auto insurer today. We decided the use of an overly positive tone in our campaign would entertain the target market and transcend the perception of State Farm’s brand. Tailored around State Farm’s caregiver brand archetype and good neighbor feel, we came up with the tagline: Look on the Bright Side. The entire campaign will speak to the idea that when you are insured by State Farm you can Look on the Bright Side because State Farm knows there is nothing more important than being there when you need them most. 13
  • 15. Lookthe on Bright side 14
  • 16. Print This print ad will aim primarily at the male portion of the target market with placement in GQ and Rolling Stone. It will resonate with anyone who has dealt with car trouble and the hassle of repairs. Those who see the ad will be convinced to Look on the Bright Side beause if you are insured with State Farm they’ve got your back. 17
  • 17. This print ad follows the same idea as with the previous ad. It will aim at the female target market with placement in Glamour and Cosmopolitan magazines. It will resonate with females because they can relate to the stress of getting ready in a chaotic bathroom when all of a sudden something goes terribly wrong. Despite the sparking outlet, she can Look on the Bright Side because with State Farm renters insurance all the damage will be covered. 18
  • 18. Traditional Television Commercial This commercial is designed in an animated format similar to early Disney cartoons. It opens with a character walking through a dark and gloomy street where nothing seems to be going well. Trees lining the street are bare and a dark storm cloud is looming overhead. However, the character is enclosed in a beam of light, whistling the tune of our campaign’s song, “Always Look on the Bright Side of Life.” As he walks and whistles the landscape around him begins to get brighter and more colorful. State Farm’s logo appears at the end of the commercial when the character winks into the camera with a smile. Radio Spots Radio spots will be simple and strictly for campaign branding purposes. A voice will begin the spot with the statement “30 seconds of optimism brought to you by State Farm,” followed by 30 seconds from the song “Always Look on the Bright Side of Life”. These spots will spread awareness of the campaign and the State Farm brand, all the while leaving a catchy, happy-go-lucky tune stuck in the heads of our target market. 15
  • 19. 16
  • 20. Website lookonthebrightside.com Research showed that the target market finds the current State Farm website too text heavy and difficult to navigate. To solve this problem a Look on the Bright Side campaign website will be launched in May 2010. The website will only provide information pertaining to auto and renters insurance, making it target market friendly. Features of the website: • Easy to read information on auto and renters policies • A link to find the nearest local State Farm agent • An interactive game • Video footage from the Look on the Bright Side Tour stops • Quote calculator for potential new policies • Links to the State Farm Pocket Agent smartphone app • Facebook Connect • Twitter enabled 19
  • 21. Display Ads Digital Look on the Bright Side ads will be placed on the target market’s most popular websites. The ads will feature customers in comical situations demonstrating how State Farm offers many other services aside from auto insurance. The subtle joke behind each ad will convey that if you are insured with State Farm, you’re covered. 20
  • 22. Digital In-text Ads Interactive Game As our target market browses the internet we can target them with in-text ads. The same keywords used with search will be purchased, and a scroll Rich media ads will introduce the Look on the over will offer to lead them back to our Bright Side game. When viewers hover over the campaign’s website lookonthebrightside.com. ad with their mouse it will expand, streaming the game directly from our website. The catchy song will be playing in the background and the State Farm logo will always be present. The game will also be available on Apple’s iPhone and iTouch. Search Search will play a key role in the success of our campaign by positioning the State Farm name with those who search for auto and renters insurance. The following AdWords will be included: insurance, auto, renters, cheap, Ford, GM, Honda, Toyota, Volkswagen, Nissan, claim, Look on the Bright Side, accident, collision, dam- age, State Farm, Panama City, Allstate, Geico, Progressive, etc. 21
  • 23. Look on the Bright Side Tour The Look on the Bright Side Tour will be the primary grassroot and promotional effort of this campaign. A 10-month nation wide tour will begin in June 2010 directly interacting and appealing to the diverse18-25 target market. The tour will give State Farm a significant presence in the lifestyles of the target market and increase brand familiarity. The Look on the Bright Side Tour will consist of various sponsorships and events to be held throughout the year. By the end of the tour State Farm will have changed their brand perception and increased their top-of-mind awareness among the target target, which in turn will lead to an increase in new auto and renters insurance policies. Tour Timeline Vans Warped Tour ESPN Tailgates Times Square Minority Tour Spring Break PCB 6/10 - 8/10 9/10 - 11/10 12/10 1/11 - 2/11 3/11 - 4/11 22
  • 24. Look on the Bright Vans Warped Tour Sponsorship To reach a unique segment of the target market, the Look on the Bright Side Tour will sponsor a stage at the Vans Warped Tour from June 25th - August 19th. This will increase awareness and change the perception of State Farm with over 800,000 young adults by supporting up and coming local bands. ESPN College Gameday Tailgate Every Saturday during the NCAA college football season the Look on the Bright Side Tour will be following ESPN’s College Gameday crew around the country. Tents will be set up near stadiums to draw in thousands of college students and young adults by offering free giveaways, a punt-pass-kick competition, bean bag toss, and ladder golf. A great way for State Farm to continue becoming a more relevant brand with the young adult target market. 23
  • 25. Side Tou r New Year’s Eve State Farm will bring in the New Year with thousands of young adults in Times Square. The Look on the Bright Side Tour will have a significant presence in the massive crowd. Free State Farm branded scarves, gloves, hats, and noisemakers will be given out to benefit those in attendance. All the while, millions of people will be seeing this from their televisions at home. Minority College Tour State Farm will incorporate a Hispanic and Black College Tour that identifies with growing minority populations. The tour will visit the most predominantly Hispanic Colleges in January and Black Colleges in February during Black History Month. Tents will be set up to promote State Farm and their insurance by offering fun events and free branded product giveaways. The goal of this portion of the tour is to reach a segment of the target market that could otherwise be overlooked with the other Look on the Bright Side Tour events. 24
  • 26. Look on Outdoor The outdoor executions in this campaign will all relate to the Look on the Bright Side Tour stop in Panama City Beach, Florida. As spring breakers drive south they will see a series of billboards within several miles of arriving. This series of State Farm branded billboards will creatively poke fun at how long most of the young adults have been driving. Once they reach Panama City Beach there will be a massive billboard spanning the road telling them to Look on the Bright Side because they are finally there. The excitement of finally arriving in Panama paired with this unique execution will surely increase State Farm brand awareness with thousands. 25
  • 27. the Bright Side Tou r Every spring thousands of college students head south Spring Break in to this Florida panhandle Panama City Beach party. A significant presence will allow State Farm to Sponsored Beach Stage Trash and Recycle Bins become a more relevant • State Farm will sponsor a Look • Brand trash and recycle bins on the Bright Side stage that will will cover the beach and brand with the target encourage spring breakers to be located at the most market’s lifestyle and change clean up the beach populated part of the beach • This will continue State Farm’s their perception of State Farm. • Daily contests, giveaways and reputation as a responsible live concerts will draw in brand Concerts, contests, free thousands of young adults and giveaways, and several other create invaluable brand Gas Cards exposure • Before driving down to PCB, fun promotions provided by current State Farm customers Free Product Giveaways will be able to provide proof the Look on the Bright Side Tour • State Farm branded cooler of their hotel reservation in backpacks, can koozies and exchange for a $25 gas card will surely have the spring mardi gras beads breakers remembering State • Useful product giveaways will MTV Presence in PCB roam the beaches spreading • MTV’s sponsorship and Farm as a huge part of their the State Farm name week-long televised coverage wild and fun-filled trip to • Products will leave a lasting will provide millions of impression when spring impressions on the MTV Panama City Beach. breakers continue to use them cable network after returning home 26
  • 28. Mobile As part of our mobile efforts we will continue to promote State Farm’s current app, Pocket Agent. Pocket Agent is compatible with the iPhone, iTouch and other smartphones and has great potential, however it needs promotion in order to gain popularity with the target market. In addition to the great features it already has, we will offer the “Always Look on the Bright Side of Life” mp3 ringtone and calendar updates related to the Look on the Bright Side Tour. Pocket Agent will engage the target market and increase campaign awareness. 27
  • 29. College Intern Program This campaign will implement a State Farm college intern program to promote State Farm’s renters insurance on college campuses. Four interns will be delegated to each selected college across the country. The primary responsibility of the interns will be to come up with creative and innovative ways to pro- mote State Farm’s renters insurance. After the interns are selected, they will work directly with local State Farm agents to help build State Farm brand awareness through social media and word of mouth. • Interns will work 20 hours per week for $10 per hour, along with commission incentives. • If students sign up for renters insurance within 30 days of signing their lease they will receive a 15% discount off their rate. • The interns will promote State Farm renters insurance at various college events such as orientation, welcome week festivities and career fairs. 28
  • 30. Media Strategy The Look on the Bright Side campaign is focused around the use of diverse, relevant, and cost effective media vehicles to reach the target market. The media plan engages our audience through digital and traditional media, grassroot, promotional events and sponsorships. This campaign focuses on interaction between State Farm and the target market to create a sustainable relationship and change their perception of the State Farm brand. It will make State Farm an insurance company young adults can more easily relate with and, in turn, increase the total number of auto and renters insurance policies young adults hold with State Farm. Geographic Focus Our media strategy will be launched nationally across traditional platforms with specified locations for designated promotional events. The areas that were chosen for promotional events were based on the highest concentrations of the target market within their population. 29
  • 31. Flightplan FLIGHTPLAN May '10 June '10 July'10 Aug. '10 Sept. '10 Oct. '10  Nov. '10 Dec. '10 Jan. '11 Feb. '11 March '11 April '11 May '11 Television  MTV PrimeFme MTV AGernoon Cartoon Network Adult Swim Print GQ Rolling Stone Cosmopolitan Glamour  Radio Out‐of‐Home Billboards Digital   Search  Ad Network In‐text Mobile Promo:ons   College Intern Program ESPN Gameday Tailgate Minority College Tour New Year's Eve in Times Square Panama City Beach Spring Break Vans Warp Tour 30
  • 32. Media Budget Television  Unit Cost Freq. CPM Impressions Cost Prime Time MTV $625,000 20 $484.35 25,824,000 $12,500,000 Late Night Adult Swim $250,000 10 $313.61 8,769,000 $2,500,000 MTV $250,000 9 $334.00 7,485,000 $2,250,000 Print Unit Cost Freq. CPM  CirculaIon Cost GQ $139,371 4 $49.73 700,565 $557,484 Rolling Stone $174,065 4 $29.47 1,476,399 $696,260 Cosmopolitan $222,400 4 $10.84 5,128,000 $889,600 Glamour  $194,476 4 $15.50 3,136,000 $777,904 Radio Unit Cost Freq. CPM Reach Cost Top 200 Markets $250 80 $8.92 5,600,000 $4,000,000 Out‐of‐Home Unit Cost Freq. Cost Billboards $1,815 8 $14,520 Billboard CreaIon $50,000 2 $50,000 Welcome Billboard $5,000 2 $10,000 Mobile  Unit Cost Freq. Cost iphone/itouch Game $4,167 12 $50,000 31
  • 33. Media Budget Labor &  Event  Expected  !"#$#%#&' Produc,on Materials Impressions Total Internship Program $480,000 $25,000 1,300,000 $505,000 Warp Tour  $238,759 $2,353,400 800,000 $2,592,159 ESPN Tailgate $65,116 $810,400 960,000 $875,516 Spring Break $325,582 $2,584,340 800,000 $2,909,922 New Years $5,427 $105,000 50,000 $110,427 Minority Tour $65,116 $325,750 120,000 $390,866 Qon,ngency $150,060 % of  Digital Ad Unit Spend CPM Impressions Media Spent Budget Search  $1,000,000 $3 6,666,700 Ad Network $1,000,000 $2 500,000,000 Television $17,250,000 43% In‐text $1,500,000 $4 375,000,000 Print $2,921,248 7% Facebook Rich Media $250,000 $6 41,666,665 Radio $4,000,000 10% Standard $100,000 $4 25,000,000 OOH $74,520 0.2% Pandora  Standard $100,000 $5 20,000,000 Digital $6,400,000 16% Yahoo Standard $200,000 $7 28,571,428 Mobile $50,000 1.0% Rich Media $200,000 $9 22,222,220 ESPN Standard $100,000 $5 20,000,000 RoCalDes $500,000 1.0% Rich Media $100,000 $7 16,666,666 ProEoDons $7,564,500 19% Flickr Standard $100,000 $6 16,666,666 FonDngenGC $1,239,732 3.0% Hulu Sponorship $1,450,000 Total $40,000,000 100.0% Site CreaOon   $300,000 32