2. Today’s Agenda
Who is A Creative Zoo and what is our philosophy?
About Progressive Insurance
Current Pet Industry Statistics and Trends
Market Analysis and Target Segments
Promotional Strategies
Final Statement
2
3. A Creative Zoo Animals
Christina Dejan Angela Echandia, Cara Loffredo,
Chung, Pricing Djordjevic, Marketing Market Insight Lead Project
Manager Analyst Manager and her Manager and her
and her terrier Pip and his hound Oliver persian Zoey havanese Penelope
3
4. A Creative Zoo Philosophy
Wau wau, Bow wow, Miau, meow. That’s our language.
At A Creative Zoo, we believe no pet is too drooly, too
2009 Webby Award for fuzzy or too wrinkly for the best love and care possible.
Responsible Marketing
Our team of “animals” strive to improve the lives of all
creatures by telling their stories through innovative
marketing strategies for companies and organizations
2010 Marketing
Magazine’s Loyalty serving animals. Through our work, we launch products
Marketing Award
and ideas built around a philosophy of companionship
and loyalty for man’s best friend and the brand we are
nurturing alike.
A Creative Zoo began quacking in 2006 and is the U.S.’s
2010 Eukanuba World
Challenge Award for first marketing agency catering solely to animals.
Canine Companionship
4
5. Growth Through Innovation
In 9 years, Progressive grew 17% per year, from $3.4
billion to $14 billion
Currently, Progressive writes over 10 million policies
From cars, to Segways, to RVs…
Auto Insurance Truck Insurance
Local Car Insurance Homeowners Insurance
Motorcycle Insurance Renters Insurance
Boat Insurance Life Insurance
RV Insurance Health Insurance
Commercial Auto Insurance Umbrella Insurance
5
6. A Company of Firsts
First to automatically insure your pet if they are in a collision
First to offer premium payments in installments
First to introduce auto insurance rate comparison
First to introduce Immediate Response® Vehicle to the scene of a
claim or accident
First major auto insurer in the world to launch a web site
First to sell auto insurance policies online in real time
6
8. Pets Best as Progressive Pet Insurance
“Simply the best pet insurance”
6 - years in the market and 3% market share
Core Brand Values: security, protection, prosperity
Advertising Appeal: FEAR, fear of having to pay high vet
bills or fear of losing your pet
Pricing Strategy: Competition Based
Three Plans: Pets Basic, Pets First, Pets Premier
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9. Breaking Ties with Pets Best
Progressive’s claim to “lots of options”, pet
Insurance is a natural next step
Progressive has existing strong brand
Pets Best has low market share
Pets Best brand is not recognizable
Can offer more competitive premiums by
eliminating outsourcing
9
10. The Pet Industry: Spending Statistics
38.9 million households own cats and 46.3 million households
own dogs
Americans spent $48.35 billion on their pets in 2010
$13.1 billion was spent on veterinary bills in 2010, up 9% in 2009
Pet insurance industry will grow from a $332 million dollar
industry in 2009 to a projected $600 million industry by 2013
10
11. The Pet Industry: Industry Trends
Going to the Dogs
Companies traditionally known for
human products are now creating
extensive pet product lines
Martha Stewart Pet Collections
Rachel Ray Nutrish Premium
Dog Food
Pet Products Sold Here
Shopping for pet products is
becoming easier than ever with an
increasing variety of retail outlets
now selling pet products
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12. The Pet Industry: Owner Trends
Companionship. Having a routine. Investing in life.
Greetings, from the Creating a family
Filling a social gap.
WHOLE family. bond.
Pets are the Experiencing new My pet is a
teachers. activities. reflection of me.
12
13. The Pet Industry: Pet Industry Market Share
Market Share of US Pet Insurance
Companies in 2009
80%
60%
40%
20%
0%
VPI Hartville PetHealth Pet Pets Best Remainder
Group Inc. Partners
(AKC)
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14. The Pet Industry: Competitive Pricing
Pets Best
Pet Partners
(Progressive) VPI PetPlan Purina
(AKC)
Kind of Animals Cats & Dogs Cats & Dogs, Exotic Cats & Dogs Cats & Dogs Cats & Dogs
Plan Name Pets Premier VPI Major Medical Gold Plan Wellness Plus Plan Purina Care Plus
Plan
Monthly
$82.78 $59.11 $60.67 $141.50 $54.04
Premium
$250 per
$50 per Incident $125 Annual $250 Annual
Deductible Incident $100 Annual
20% None 10% 20% 20%
Co-Pay
Accidents &
Yes Yes Yes Yes Yes
Illness
Years in
6 Years 5 Years 8 Years 3 Years
Business 29 Years
Aetna Insurance Co. AGCS Marine Markel Insurance Central States
Underwriter of CT
VPI Insurance,
Insurance Company Company Indemnity Company
Nationwide Insurance
14
15. Progressive Pet Insurance: Goals
Launch Progressive Pet
Insurance to limited test regions
in 2012
Increase market share by 5% by
increasing clientele
o Target segments with specific
characteristics
o Capitalize on current progressive
customers
15
16. Progressive Pet Insurance: Goal #1
Increase market share by 5% by increasing clientele
o Target segments with specific characteristics
o Capitalize on current progressive customers
16
17. Progressive Pet Insurance: Market Share Goal
Progressive Pet Insurance Goal to Increase Market
Share +5% from 3% in 2009 to 8% in 2013
10%
8%
6%
4% Share
2%
0%
2009 2010 2011 2012 2013
17
18. Progressive Pet Insurance: Goal #2
Launch Progressive Pet Insurance to limited test regions in 2012
18
21. Progressive Pet Insurance: Product Strategy
Breaking ties with Pets Best
Bring in-house to reduce expenses and pass the savings onto
the customer
The advantage of being able to “build your own product" by
designing bundle packages and saving money
21
23. Progressive Pet Insurance: Individuals
Why do they buy pet insurance?
Pet parents want the same
treatment options for their pets as
they receive for themselves
Pet parents view their pets as their
children
They want to protect their savings
and income
They are buying peace of mind
23
24. Progressive Pet Insurance: The Starter Family
David and Mark
David (31) and Mark (29) Live in
Atlanta, Georgia
Both work full-time in Marketing
research and sales
David gave Mark their dog, Raulito,
as a 9th anniversary present
Mark is always on the hunt for the
latest fashion for Raulito and enjoys
taking photos on his iphone of him
My pet is a Creating a family
reflection of me. bond.
Filling a social gap.
24
25. Progressive Pet Insurance: The All-American Family
Victoria and Thomas
Victoria (35) and Thomas (36) met during
college and live with their growing family
in St. Petersburg, FL
They have a daughter Ana (6) and son
Will (8) who view Teddy, their dog as their
best friend
Thomas has an MBA and works as a
financial consultant
Victoria, is an interior designer and works
for a TV channel.
The family currently has auto and home
insurance through a bundle rate with
Progressive
Creating a family Greetings, from the
bond. WHOLE family.
Pets are the
teachers.
25
26. Progressive Pet Insurance: The Empty Nesters
Brian and Elizabeth
Brian (66) and Elizabeth (63) live in
Lancaster, Ohio
They have a daughter, Victoria (35), who
has a family of her own
Elizabeth and Brian are both retired
Elizabeth rescued their dog Lola and cat
Rocky from a local shelter, where she
now volunteers on the weekend
They enjoy cooking and are avid coupon-
cutters, always on the hunt for the best
deals
Companionship. Having a routine.
Investing in life.
26
27. Progressive Pet Insurance: The Single
Jacob
Jacob (33) lives in Jacksonville, FL
He lives alone with his dog, Maggie, all
his family live in Chicago
He is doing a PHD at MIT.
Jacob leads an active lifestyle with
Maggie and trains for marathons
Jacob is an avid reader and brings his
iPad everywhere
Companionship. Filling a social gap.
27
28. Progressive Pet Insurance: Corporate Targets
Who currently offers pet
insurance as a benefit?
VPI is the leader among Fortune 500
companies
No fees to the employer to offer pet
insurance
Employees receive a 5% discount when
enrolled through their company
Most companies allow employees the
opportunity to pay their premiums via
payroll deduction
28
29. Progressive Pet Insurance: Corporate Targets
Located in Dublin, Ohio Located in Cobb County,
Ranked 19 in the Fortune 500s Georgia
Employ more than 30,000 Ranked 29 in the Fortune 500s
people worldwide 2,200 retail stores with over
Do not currently offer pet 321,000 employees
insurance Currently offer pet insurance to
Offering pet insurance would their employees
align with Cardinal’s mission of Aligns with Home Depot’s #1
innovation and diversity value of “taking care of our
people”
29
31. Progressive Pet Insurance: Progressive Pricing Model
Individual Single Individual Bundle
Corporate Benefit Plan
Policy Policy
Kind of Animals: Cats & Dogs 8% Discount off Premium: 0-50 employees: 5% discount
Add pet insurance to any one
Premium: $58/month 51-100 employees: 6% discount
additional insurance plan
Co-Pay: None 101–300 employees: 7%
10% Discount: off Premium discount
Illness and Accident: yes Add pet insurance to two or
more additional insurance plans 301- 500 employees: 8%
Hereditary: yes
discount
Underwriter: Progressive
501+ employees: 10% discount
Member discounts at national Member discounts at national Member discounts at national
pet supply companies pet supply companies pet supply companies
Automatic coverage for all Automatic coverage for all Automatic coverage for all
vehicle related injury vehicle related injury vehicle related injury
No fee to the employer
31
32. Progressive Pet Insurance: Distribution Methods
Capitalize off the traditional
Progressive channels that are
already successful
All methods allow a
customizable “build your own
product” experience
Call Centers
Online
Direct Agents
32
34. Progressive Pet Insurance: Promotional Strategy
“Bring Your Pet Home”
campaign
Continue the humorous
advertising strategy with Flo
Create activities that allow
people to get involved with
Flo and Pickles
34
35. Progressive Pet Insurance: Promotional Tactics
Event Sponsor Television & Print
In-Office
Online Efforts
Information
35
38. Progressive Pet Insurance: Event Sponsors
MSPCA-Angell Walk
for Animals
The largest walk to benefit
animals
Captive audience of
approximately 3,000
MSPCA-Angell’s wide audience
(circ. 75,000)
38
39. Progressive Pet Insurance: Event Sponsors
TACTICS: MSPCA-Angell
Walk for Animals
Progressive Rehydration
Stations
Tents with Progressive
insurance information
Free promotional items with
Progressive logo (leashes,
Frisbees, tennis balls, cat toys)
Integration with T.V., internet
and print advertising tactic
39
40. Progressive Pet Insurance: Event Sponsors
Westminster Kennel Club
Dog Show
Over 7.5 million viewers over 2
days
America’s second-longest
continuously held sporting
event, behind only the Kentucky
Derby
Broadcasts on USA Television
Network
25 to 54 viewing age
40
41. Progressive Pet Insurance: Event Sponsors
TACTIC: Westminster
Kennel Club Dog Show
Arena advertising
T.V. commercial during show
Backstage with Flo as “Best in
Show dog groomer”
Get Insurance, protect your pet
from Flo’s bad grooming skills
41
43. Progressive Pet Insurance: In-Office Education
Vet Office Waiting Rooms
Over 29,000 vet offices in
the U.S.
Trusted source of
information
Ability to present detailed
information that the visitor
can take home
43
44. Progressive Pet Insurance: In-Office Education
Promotional Strategies
Brochures with plan
benefits and comparisons
30-days free coverage
when referred from your
vet
44
47. Progressive Pet Insurance: Online Advertising
Banner Ads
Pay Per Click
Online
Purchasing
Incentives
Social Media
48. Progressive Pet Insurance: Online Advertising
Banner Example:
Petfinder.com
• Directory of more than
13,000 animal shelters and
adoption organizations
across the U.S., Canada and
Mexico
• Not Just Adoption.
Information on pet care,
health and training
• Ability to customize our
message per site
48
51. Progressive Pet Insurance: Online Advertising
Pay Per Click
• Expand our reach easily
• Steal from the competition
• Customize our message
depending on search
• 165,000 searches on “pet
insurance” per month
51
52. Progressive Pet Insurance: Online Advertising
Online Incentives: $50 gift
card to wag.com with policy
purchase
• Encourages online
enrollment
• Entice prospects with buying
perks
• Extend the incentive to
member referrals
52
54. Progressive Pet Insurance: Social Media Efforts
Progressive on Facebook
• 3.2 million fans of Flo
• Facebook pages for different
insurance needs
• Flow the progressive girl
• Help Flo
• Progressive motorcycle
• The Progressive messenger
54
55. Progressive Pet Insurance: Social Media Efforts
Facebook Tactic: Pickles’
Video Series
• Launch a Pickles
Facebook Page
• Create interactive
opportunities to drive
viewers to Progressive
website
55
56. Progressive Pet Insurance: Social Media Efforts
Facebook Tactic: Fan of
the Week Contest
• Fans post funny
pictures of their pets
• One winner every week
spotlighted on profile
page
56
57. Progressive Pet Insurance: Social Media Efforts
Twitter: @itsflo
• 6,293 followers
• Uses hashtag to
generate buzz
• #DressLikeFlo
57
58. Progressive Pet Insurance: Social Media Efforts
ItsFlo Flo from progressive Twitter Tactic
Pickles just told me the funniest story.
progressive.com/pickles
#progressivepickles • Tweets around the Flo
5 hours ago · reply · retweet · favorite “pet whisperer” theme
and Pickles
ItsFlo Flo from progressive
Pickles and I just came from a commercial
shoot. tail waggin funny! • Generate buzz about
#progressivepickles
Pickles to drive
2 hours ago · reply · retweet · favorite
followers to the website
ItsFlo Flo from progressive
Pickles and I just ate fried pickles!
#progressivepickles
1 day ago · reply · retweet · favorite
58
60. Progressive Pet Insurance: Television Advertising
Empty Nesters
Audience between 24 - 64
Affluent viewers
enables viewers to
connect their own lives to
the past
60
61. Progressive Pet Insurance: Television Advertising
Couples
59% of audience are
adults 25 - 54
54% shopped for travel
online in the past 6
months
Most viewers have no
children at home
61
62. Progressive Pet Insurance: Television Advertising
All-American Family
58% of audience are
adults 18 – 49
Median Household
income of $80,000+
62% of viewers own their
own home
62
63. Progressive Pet Insurance: Television Advertising
Pickles Gets a Job
(Flo is at the Progressive store at the counter checking out dogs and cats who are in line to buy pet insurance.)
Flo: And here’s one for you. Have a great day. Oh! And make sure to go get that itch checked out!
Flo: Here you go, one cat policy coming up…
(Pet owner approaches the counter)
Pet Owner: Hey what’s going on, what is my pet doing here?
Flo: Oh! Haven’t you heard!? Progressive now covers your pets too! You can save a bundle when you bundle!
(Flo whispers to the owner) All the pets are talking about it.
(camera shifts to a dog leaving the store with a pet policy box in its mouth while another dog is entering the
store. The entering dog looks back to check out what policy the exiting dog just bought.)
(Pickles runs up to the counter and barks twice at Flo)
Flo: Pickles is it? (Pickles barks once) As a matter of fact we are hiring… (Pickle’s tail starts wagging)
Cut to a white screen where we see a progressive logo appear. Pickles is sitting next to the logo. We hear
pickles bark.
Voice-Over: Caring for you and your loved ones. Now that's Progressive. Call or click today.
65. Progressive Pet Insurance: Print Advertising
Empty Nesters
Reaches over 13.2 million
readers
Median reader age is 49
Has advertised in
Newsweek 16 times since
January, 2011
65
66. Progressive Pet Insurance: Print Advertising
The Couple
1 in 5 adults read People
69% of readers are
between the ages of 18 -
49
35% of readers are
millennials (1977-1994)
Have advertised 10 times
in People since January,
2011
66
67. Progressive Pet Insurance: Print Advertising
All-American Family
Reaches over 7 million
buyer conscious readers
60% of readers between
the ages of 18 – 49
41% of readers are
married with kids
Have advertised 8 times
in Real Simple since
January 2011
67
70. Final Statements
Progressive is an
established, trusted name
in insurance
The pet industry is a
growing, multi-million dollar
industry
Capitalize off of loyal
customer base and inform
of the new service through
an integrated marketing
strategy
70
Hinweis der Redaktion
National Rescue week is November 6-12thCharity Work >> PR >> Partner with Humane Society of U.S. for Rescue work, “Bringing Animals in Need Home”. Sponsor Adoption days at Petco/other locations
This will be finalized when done.
Although RI SD and VT are top market share holders, we will not be testing in these regions. This will be explained later when we discuss testing regions.REFORMAT SLIDE
I’m going to share with you today WHY we, A Creative Zoo, suggest that Progressive enter the pet insurance marketplace. Spending on pets has risen drastically and industry figures show that:Almost 39 million households own cats while over 46 million households own dogsAmericans spent over $48 billion on their pets in 2010 with over $13 billion of that number spent on veterinary billsThe pet insurance industry is expected to grow to an over $600 million industry by 2013
You may ask why the dramatic increase in spending on pets? Today’s dogs and cats aren’t just keeping an eye out on the house or chasing mice anymore. Dogs and cats are acquiring human like characteristics -- becoming part of the family and therefore treated and even pampered as such.Companies traditionally known for human products are now catering to our furry, four legged friends and creating extensive pet product lines. For example, both Martha Stewart and Rachel Ray, both famous for their home decorations and food recipes are now creating product lines exclusively for pets including clothes, toys, bedding and grooming products and dog food.Also, shopping for your pets has become increasingly easier with various retail outlets now selling pet products. As of May 2010, Pet Smart alone operated more than 1,100 stores nationwide, 165 of which include Pets Hotels and Doggie Day camps. No wonder Martha Stewart is selling her pet products exclusively with the retail giant!
As I mentioned earlier pets are acquiring more roles than ever before. Dogs today aren’t just chasing the mailman away, so we asked ourselves, if pet’s roles are changing then the reasons why pet owners keep adding cats and dogs into their families and opening up their homes and spending BILLIONS must be changing. Our research found that today’s pet owners get pets:For companionship or to fill a social gapHaving pets creates a routine owners may not have had, like going outside for a walk or run with their dogs and experiencing new activities they might’ve overlooked beforeIn some instances the pets are the teachers – particularly among children -- teaching them responsibility and how to care for living creatures. & Pets create family bonds – we’ve all seen Marley & Me…..
One bond we anticipate breaking is VPI’s current marketshare of US Pet Insurance Companies in the United States. As you can see, VPI dominates the market claiming over 60%!!! The remaining pet insurance companies, The Hartville Group, PetHealth Inc, Pet Partners, Pets Best, and the remaining few don’t even come close – even if you were to add them all together!
Much of VPI’s success is that they’ve been in the marketplace for much longer than any of the other pet insurance companies and therefore they’re KNOWN as The insurance company for pets. With so much marketshare, VPI is able to compete and win against its competitors and offer a lower monthly premium, lower deductible and no co-pay. (Briefly explain rest of chart) We know that with Progressive’s brand recognition and trusted name in the insurance industry, Progressive Pets can effectively and efficiently compete against VPI and grabbing a hold of some of their marketshare. And now Christina will explain how and why.
Campaign Ideas:Marketing strategy should focus on and Affective Emotional Marketing Strategy:- This strategy helps build brand recognition- Animals are part of the family and create emotional bonds and memories
Add Populations to the other statesAlthough the north central states like south Dakota, North Dakota, Nebraska, minnesota and Iowa are some states that have the top market shares of progressive, we decided not to chose these states for our testing region due to lack of population. When considering the test region, we also have to consider to polutaion of a state and the average number of dogs that would also reside in the state. We have chosen Ohio, Georgia and Florida to test because they are still have above 10% market share of progressive insurance, but they also have many more households and therefore, more dogs and cats.
Need to explain why we are going after these three segments and how they are going to
They would love progressives easy rate comparison tools at progressive.comWe chose to highlight a same-sex couple in this target audience profile because we know that Progressive has spent over $230,000 (7 advertisements) on Out magazine advertising since the beginning of January 2011 (times chart from Dan)
Since they already have a bundle rate with progressive, they can add pet insurance and save money by having everything under one roof. They also don’t have lots of spare time to research the best rates. Price comparison would save them time and money
Since they are money conscious, they would like progressive’s low bundle rates
Our main market share competitor is VPI, who are the primary pet insurance providers for Fortune 500 companies. We think we can gain marketshare by implementing the same kind of tactic and either offer Pet insurance for the first time, or convince them to make the switch.Home Depot is a great example of a company that aligns with the interests of current Progressive policy holder interests. We can tell from advertising statistics that Progressive currently targets readers of magazines like Field and Stream, popluar mechanics and ESPN, and believe people of same interests would majoritally be working for Home Depot
From what we discussed, we are using a more humorous approach with our promo strategies with Flo so I think we need to update this.NEED TO REFORMAT SLIDE
Why this is a good tactic:- Great opportunity to promote the brand to an already captive audience.- Capitalize off of the MSPCAs Extensive promotional efforts and trusted identity- Great PR strategy for Progressive to publicize- These events can be integrated with TV, Internet and Print campaigns around “Bringing Pets Home”
Our online promotional efforts for Progressive Pets is to drive traffic to the website, where customers can search our products, compare rates, receive quotes and be issued insurance policies for their pets quickly and easily. I’d also like to highlight our Featured Content section of the website which will house all pet industry statistics and rate comparison charts so that our customers can make well informed decisions regarding their pet insurance policy. Additionally, we have a few links that pertain to Flo, our spokeswoman, where customers can interact with Flo and her dog, Pickles – even learn to dress like her and divulge into her hidden talent as a pet whisperer! Flo’s got you and your pets covered! (Show other banner ads that lead to site) Now Angela will go further in depth into our online and social media efforts.
Why this is a good tactic:Easy to change to harmonious integrate with other promotional strategiesCustomizable to reflect surfers buying habits and history
Show the Pickles’ video on Facebook, and then with a simple call to action, invite the fans watch the rest of the video and learn more about Pickles on the Progressive website.
Encourage the fans to put funny photos of their pets. And every week the winner’s photo will be on the front page of our Facebook/ Twitter page.Also the fun factor is expressed in this activity
The Twitter hashtag #DressLikeFlo got the buzz going, with links to a special page at progressive.com with a 10-step guide to dressing like Flo for Halloween. The page even links to a costume on Amazon and has templates for creating Flo’s name tag and “I ❤ Insurance” button.
The Twitter hashtag #DressLikeFlo got the buzz going, with links to a special page at progressive.com with a 10-step guide to dressing like Flo for Halloween. The page even links to a costume on Amazon and has templates for creating Flo’s name tag and “I ❤ Insurance” button.