Insurance Noodle Case Study

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					                                                    Executive Summary
                                                    Executi Summary

This document provides an accurate summary of the advertising, marketing and public
relations components designed for Insurance Noodle. An overview of organizational his-
tory and key elements will demonstrate how we will effectively market Insurance Noodle
to small business owners, independent agents, and stockholders. The strategy will define
our goals and objectives for Insurance Noodle. Research will further our ability to effec-
tively understand and reach our target. Next, a media summary will provide information
about our media timeline and modes of communication.The budget will explain where and
how costs will be allocated in the strategy. Finally, the creative execution will demonstrate
the vehicles for success.
                                       Background Information
                                       Backg         orma

Company Profile
Company Profile
♦ Newly formed, fully funded dot-com company
♦ Went live July 5, 2000
♦ E-broker that sells branded small business insurance plans
♦ B2B Focused
♦ Developers of proprietary technology to facilitate the sale, distribution, and manage-
    ment of small business insurance

Company Objectives
Company Objectiv
♦ Provide information on types and amounts of coverage for small businesses
♦ Provide customized insurance recommendations for specific industries
♦ Provide expert advice from qualified insurance advisors online or by phone
♦ Provide insurance proposals from leading insurance companies
♦ Provide opportunities for purchasing insurance policies
♦ Provide ability for consumer to manage policies online
♦ Provide resource for independent agents looking to meet client’s needs

SWOT Analysis
SWO Analysis
♦ Replaces need for face-to-face agent interaction and meetings
♦ Ability to acquire multiple quotes for competitive insurance rates
♦ Convenient to access 24 hours a day, 7 days a week
♦ Enables self-serve research for consumers
♦ Open chat-room for one-to-one insurance discussion
♦ Quick turnaround time on quotes with agent’s expertise
♦ Customized quotes and benchmark information based on client’s information
♦ Provide comparative quotes and tailored policies to fit needs of clients
                                       Background Information
                                       Backg         orma
♦ Small business insurance is distributed through agents and brokerage firms
♦ Highly fragmented market
♦ Highly competitive online industry
♦ Impersonal service
♦ Company Name, “Insurance Noodle” not credible according to some surveyed business
♦ Fear of entering private company information online
♦ Consumers can use site as a resource only and still buy from an agent
¨ Hinders existing close personal relationships between agents and clients
♦ Fear of being taken advantage of through online exchanges

♦ No dominant leader in the online insurance industry
♦ Business owners looking to save time
♦ Elimination or decline of brick-and-mortar insurance companies
♦ Independent agents looking to better serve clients through our comprehensive informa-
    tion and choices
♦ Unique name “Insurance Noodle” will stand out among competitors
♦ Advanced Web site that allows for interactive communication
♦ Attractive to investors looking for an up-and-coming dot-com
♦ Other online insurance companies having a better competitive advantage
♦ Competitors online Web sites have been up-and-running longer
♦ Competitors offering more partnered insurance opportunities
♦ Internet can seem intimidating and overwhelming to some business owners
♦ Insurance products are complex and consumers may not be ready to take the purchase
    process online
♦ In crisis situations, business owners want to deal with a familiar and reliable human
♦ Stockholders fear the failure
♦ Independent agents being wary to utilize Insurance Noodle’s policies
                                                  Competitive Analysis
                                                  Competitiv Analysis

Direct Competition
Other online insurance brokers. Some examples of firms and their mission statements:

           .cov era ecorp
       “To be the leading online insurance e-Agency in the United States, provid-
       ing a simple, fast and cost effective distribution network that places the
       consumer in control of their insurance program.
       We not only provide a user friendly Web Site that allows you to receive a
       quote, we also allow our customers to bind the insurance coverage online,
       establish a billing method, file a claim, perform the most common policy
       updates, obtain coverage advice, and review an extensive loss prevention
       knowledge base.”

       “Created in July of 1996, e-INSURE Services, Inc. is a global platform for
       the presentation and sale of insurance products and services on the Internet.
       The concept is to provide all insurance needs in one place. Today, our Web
       site offers hundreds of insurance products as a supplier to the insurance
       seeking public. Through efficient execution of our experienced manage-
       ment team, e-INSURE will build upon years of market experience to be-
       come the dominant portal to insurance companies and customers.”

       “ Insurance Services, Inc. (ePolicy) is a business-to-business Internet
       company that is creating a new way for professionals and small businesses
       to purchase insurance. Backed by some of the world’s leading insurance
       companies, such as Fireman’s Fund, ePolicy uses the Internet and propri-
       etary technology to streamline the application and policy-writingprocess.
       By creating strategic relationships with major insurancecompanies and by
       using the efficiencies of the Internet to reduce costs, ePolicy offers a broad
       range of insurance products to our customers instantly, with high levels of
       customer service and significantly reduced rates.”

These are specific examples of direct competitors. As shown with their individual mission
statements; they have similar goals, objectives, and functions to Insurance Noodle and are
all competing for market share in the online insurance industry.
                                              Competitive Analysis
                                              Competitiv Analysis

Indirect Competition
Large, corporate insurance agencies like:
♦State Farm
♦Blue Cross Blue Shield—Blue Select
♦American Republic
♦Mutual of Omaha

These are indirect competitors of Insurance Noodle because they offer similar plans to
consumers and businesses for comparable prices. However, there are fundamental differ-
ences between these large agencies and online direct competitors. The traditional brick-
and-mortar companies typically serve large businesses and cater to agent focused buy-
ers. Although this is one way to purchase insurance, Insurance Noodle is an alternative
choice for consumers in our target.
                                                            Target Markets
                                                             arg Mark

Primary Target
Primary arg
♦Small Businesses: 1-100 employees
♦Yearly Revenue of less than $10 million
♦Recently formed: founded in the last 5-10 years
♦Upper Middles of American social class

“A consumer survey of 467 people displayed that age and gender seem to be major
indicators of willingness to shop for insurance online. More men than women are willing to
shop for insurance online (17% of men vs.9% of women). Adults under 35 were more
willing than people 35 and older (36% vs. 15%).”
Internet Week, Jan 17, 2000 p36

♦ Novice insurance buyers
♦ Infrequent exposure to insurance buying procedures and policies
♦ Looking to save time and money
♦ Willing to venture online to gather information and maybe purchase insurance
♦ Not committed to current agent/broker or company
♦ Decision makers for business
♦ Influencers and buyers

Agency 3 surveyed several local small businesses; examples include The Great Impasta,
Moonstruck Café, Campus Florist, Bagelmen’s, The Bread Company, and The Checkered
Moon, through telephone and face-to-face interviews. Our survey results indicated the
most frequently read publications include: Inc., Fortune 100, Newsweek, and Business Week.
In addition, a majority of those surveyed stated a desire to save time and money. Finally,
76% of those surveyed reported an interest in shopping for their insurance online.

According to an article entitled “Consumer Markets and Consumer Buying Behavior”, “Up-
per middles possess neither family status nor unusual wealth. They are primarily con-
cerned with ‘career’. They have attained positions as professionals, independent
businesspersons, and corporate managers. They believe in education and want their chil-
dren to develop professional or administrative skills. They are joiners of the civic-minded.
They are the quality market for good homes, clothes, furniture and appliances” (Journal of
Consumer Research 1997, p 338).
                                                           Target Markets
                                                            arg Mark

Secondary Target
Secondary arg
♦ Independent Insurance Agents
♦ Specialists looking to broaden their capabilities by using online insurance distributors
♦ Agent who wants to effectively meet all of their client’s needs
♦ Comfortable using Internet resources
♦ Capable of writing policies for several different providers
♦ Willingness to be progressive and self-motivated
♦ Curious about online insurance capabilities

Tertiary Target
 ertiar arg
♦ Stockbrokers, investors, and potential buy-out candidates
♦Desire to cash in on the e-business front
♦ Able to invest or help the company reach IPO status
                                                                       Researc h

Research must be conducted before the launch of this 5 million dollar Advertising and
Public Relations campaign to help ensure we will be reaching our target markets
successful and with the accurate message. This will be achieved by spending 20%, or
$1 million of our budget conducting focus group interviewing, and online (Internet)
marketing research.

Focus Group

The focus group interviewing sessions will take place with small business owners that
meet the requirements of our target market. Personal interviewing will take place with
six to ten of the small business owners. An experienced and knowledgeable trained
moderator will conduct this focus group. This session will take place 10-15 times prior
to the launch of our campaign. Small business owners will be able to talk about their
personal feelings and thoughts concerning insurance agents, insurance companies,
current fears, online purchasing behaviors, past experiences with insurance (both good
and bad), and more importantly what media they use and how they spend most of their

According to Principles of Marketing, “Focus group interviewing has become one of the
major marketing tools for gaining sight into consumer thoughts and feelings.”(Kolter and
Armstrong 1999, p 114)

Online Research

The second research method is online (Internet) marketing research. This method will
collect primary data through Internet surveys and online focus groups from our target
market of independent insurance agents. This type of data collection will attempt to
get information from current and active users of the Internet. This method will provide
fast information and at a cost-effective price. Research Connection is a research firm
that will be out sourced to conduct these surveys and online focus groups. This research
firm will recruit online independent insurance agencies nationwide and verify them
through the telephone.

According to an article entitled “Most Research Going to the Internet”, “Online research
is becoming a quick, easy, and inexpensive way to tap into consumers opinions.”
(Advertising Age 1997, p 50)

Advertising Objectives
♦ Create awareness of Insurance Noodle to small businesses, independent agents, and
♦ Generate an increase in sales
♦ Create awareness of Insurance Noodle to the financial community

Communications Objectives
♦ Position Insurance Noodle as a liberating icon in consumers’ minds
♦ Communicate that Insurance Noodle is a time and money saver
♦ Communicate that Insurance Noodle is safe, friendly, and secure
                                                                Media Strategy
It is while considering our advertising and communication objectives that the schedule
and strategy of the media was developed. This strategy is split into two categories to
effectively cover the entire target market. These categories are Advertising Media and
Public Relations/Sales Promotion.


Advertising Media consists of Cable Television, Magazines, and Web-Banners, all
chosen for their particular relevance and usage within our target market. The
magazines chosen were Forbes, Business Week, and Time Business. Web-Banners will be
placed on these web sites as well as a site used in our Public Relations section of the
campaign. The Cable TV stations that were chosen were CNN, CNN Headline News,
and MSNBC. The spots will be placed in the prime time section of the daily schedule,
which is the hour between 7:00pm and 8:00pm. This was chosen as a good time
because it is when our target is coming home from work, cooking/eating dinner, and
relaxing on the couch checking up on the news. These publications, TV stations, and
banner ads will hit our target market, which is backed up by their demographic
information. The TV stations show an effective reach to our target market. The
Magazines also have very high circulation and frequency to the target.

The schedule for the advertising media campaign will begin in January and continue
until December. Television advertisements will begin airing in the month of January. In
February the publications will launch and continue through the remainder of the
schedule. This is done to get Insurance’s name out in “big lights”, to let
people know who Insurance is and to let them know what it is about.

*Public Relations/Sales Promotions

Press Releases
Press Releases

Press releases will be sent out to newspapers and newsletters such as Wall Street
Journal, Business Day (the business section of the New York Times), the American Small
Business Association Newsletter, and about 15 others. This will appeal to the buyers of
the insurance, the insurance agents, and the stockholders. Banners will also be placed
on the Wall Street Journal’s Web site in order to reach the stockholders. The banner on
the American Small Business Association Web site is primarily intended to reach the
buyers of insurance.
                                                Media Strategy Continued
                                                      Strateg Continued
Trade Shows

Insurance will attend one trade show per month, every month for the year.
This will be a trade show specifically for independent insurance agents. At the trade
show there will be a booth set up and a representative to answer questions and
represent Insurance Noodle. There will be giveaways consisting of coffee mugs and
“stress-balls”. These items were chosen to express a sense of security and stability that
Insurance gives to its clients. Inside the coffee mug there will be a Business
Response Card that the people will be asked to fill out while at the booth. This is
effective because after giving these people something for free they will want to
reciprocate the concession by filling out the card. These B.R.C.’s will be used to channel
more information into our research efforts. Continual information will be gathered in
order to adjust any marketing and communication strategies.
P UB LICAT ION         January    February     March        April         May        June      July         August      November December

circ.- 850,000

Business Week                    2nd w e e k 2nd w e e k 2nd w e e k                        2nd w e e k                 2nd w e e k 2nd w e e k
circ.- 923,449

Time Business                    2nd w e e k 2nd w e e k 2nd w e e k                                      2nd w e e k
circ.- 1,840,946


CNN                    4 weeks               1st w e e k                                    1st w e e k                               1st w e e k

CNN Headline News      4 weeks                                         1st w e e k          1st w e e k                 1st w e e k

MSNBC                  4 weeks                                         1st w e e k          1st w e e k


                                                                                                                                                    Media Calendar
                                                       Production Costs

Print Ads (7)
Category        Hours      Rate         Total
Creative                4         $325      $1,300
Copywriting             4         $250      $1,000
Art                     8         $300      $2,400
Account Services       10         $300      $3,000
Photography             8         $275      $2,200
Retouching              3         $300        $900
Preprinting     One Page        $1,500      $1,500
                          Total per Ad: $12,300
                       Number of Ads:            7
                            Total Print: $86,100

Web Ads (7)
Category        Hours       Rate           Total
Creative                2         $325         $650
Copywriting             3         $250         $750
Art                     4         $300        $1,200
Account Services        5         $300        $1,500
                          Total per Ad:       $4,100
                        Number of Ads:             7
                            Total Print:     $28,700

Television Estimate
                            Total TV:       $300,000

Public Relations Estimate
          Total Press Release Production: $150,000

                         Total Creative Production: $564,800
                                                                        Media Buys and Budget Totals
                           T i m e s i n P u b l i c a ti o n
                               4-Co lo r Full P age                        Co st/ e a.               Co ve r         Co st/ e a.     To tal Co st
Fo rbe s                                  3                                 $53,120                    4             $69,050         $435,560
Busine ss W e ek                          6                                 $85,000                                                  $510,000
Tim e Business                            4                                $113,000                                                  $452,000
                                                                                                                       To tal:      $1,397,560

                           W e e k s in C able T V
                              P rim e tim e S po ts                        Co st/ e a.                                               To tal Co st
CN N                                    7                                  $116,667                                                  $816,669
CN N He adline N ew s                   7                                  $116,667                                                  $816,669
M SN B C                                6                                  $140,000                                                  $840,000
                                                                                                                       To tal:      $2,473,338

                                W e b -B a n n e rs
                                    M o nths                                Co st/ ea.                                               To tal Co st
fo rbe m                           6                                    $2,200                                                   $13,200
busine ssw ee m                    6                                    $1,800                                                   $10,800
tim                       4                                   $1,500                                                     $6,000
w m                              12                                    $3,000                                                   $36,000
                                                                                                                       To tal:       $66,000

                                 T rad e S h o w s
                                     M o nths                               Co st/ ea.                                               To tal Co st
1/ m o nth                              12                                  $22,000                                                  $264,000
                                                                                                                       To tal:       $264,000

                        T r a d e S h o w G i v e -a w a y s
                                      N um be r                              M onths               Co st/ ea.                        To tal Co st
co ffe e m ug                          2,500                                   12                   $2.19                             $65,700
stre ss-balls                          2,500                                   12                   $2.00                            $60,000
                                                                                                                       To tal:       $125,700

                                                                To tal Co st o f M e dia B uy s and P R / S ale s P ro m o tio n:    $4,326,598
                                                                       To tal Co st o f P ro ductio n (se e pre vio us page ):        $564,800
                                                                                                  T o ta l B u d g e t S p e n t:   $4,891,398

Our strategy and concept development for the advertisements are built around the notion
that Insurance Noodle is there to make purchasing insurance easy, comfortable, honest,
and personal. The ads in these series speak to the audience and tells them that insurance
noodle knows how important your business and your business decisions are. All the execu-
tions will show that Insurance Noodle works a little different, a little better.

             “Reall      Insurance”
Campaign #1: “Really Bad Insurance”
Campaign #2: “Tied”
Campaign #3: “Icons”

Magazine Executions
Designed to be placed in various print magazines including Forbes, Business Week, and
Time Business. The small business owners we interviewed read these publications most
frequently. Our target will most easily be reached by placing ads in the above publica-

Campaign #1
Ad#1: “Underwater Chapel”
This ad features a bright, colorful image of an underwater scene. The headline and body
copy are placed directly on the image. The logo and tagline appear at the bottom right
hand side. The tone to this ad is fitting to the personalities of the young small business
owner. With witty sharp humor, this ad will allure the reader.

Ad #2: “Scorpion Hut”
This ad, very similarly to the Underwater ad, features an image with text over it. The logo
and tagline appear at the bottom right hand side. This ad shows the reader again, how
their personalities match that of Insurance Noodle.

Campaign #2
Ad #1: “Got You Tied Up?”
This ad features an intense image of a man tied up with a bright light shining over him, as
several men surround him. The headline and copy appear cleanly at the bottom third of
the page, with the company logo and tagline appearing at the bottom right hand side.
This will show that Insurance Noodle would not treat their customers with anything less than
Ad#2: “Customer Appreciation Week”
Virtually identical to Ad#1, this ad will feature a similar design, with text that sends the
same message.

Campaign #3
Ad #1: “Shackled”
Delivering the message that Insurance Noodle will never make you feel used, this clean ad
features an image of handcuffs, sharp headline, and short body copy. Sign off if with the
company logo and tagline.

Ad #2: “Screwed”
Functioning the same way as “Shackled,” this ad sends the same message, with similar copy
and an image of a screw.

Ad #3: “Time”
Suggesting that Insurance Noodle will not waste your time, this ad is targeted towards
independen brokers. It has an image of a sundial, a short and quick headline with brief
body copy. Same design style as above two ads.

Internet Executions
A series of banner ads and buttons were designed to correspond to the three campaigns.
The ads would be placed in the sites for the online versions of the print magazines and PR
sections. The tones of the banners and buttons harmonize with the other media to the
related campaign.

Television Commercial
Considering the size of budget, we at Agency 3 took this opportunity to create a television
commercial for Insurance Noodle’s new campaign. The commercial is based on the ideas
tied to campaign #1, but principles of all three campaign concepts appear in the commer-
cial. This will be a 30-second spot to be placed on CNN, CNN Headline News, and
MSNBC during prime time.
     This is the
                     Mike’s Underwater

     in fire

Mike’s agent was from a big firm, and obviously didn’t care too much about him. Insurance Noodle
can help you and your independent insurance broker find out just what you need to insure your
new business and how much it should cost you.

                                                             Odd Name.           Great Insurance.
                                 The Future
                                          Scorpion Hut
                                                                   is here.

 company sold him
   in flood insurance.

Teddy’s agent was from a big firm, and obviously didn’t care too much about him. Insurance
Noodle can help you and your independent insurance broker find out just what you need to
insure your new business and just how much it should cost you.

                                                           Odd Name.           Great Insurance.
          “Reall      Insurance”
Campaign: “Really Bad Insurance”
                       Internet Executions
                       Internet Executions
            Full Banner (468x60)
            Running Time : 6 seconds, looped.

            Full Banner (468x60)
            Running Time : 6 seconds, looped.
                      Tied up with your insurance company?
                                   your insurance company?

Insurance company got you tied up?
Insurance company got you
Once the big insurance companies have you, they make it pretty difficult to leave or even
change your existing policy. Insurance Noodle can help you escape the binds by putting you
in control of your business’ insurance.

                                                           Odd Name.             Great Insurance.
                                                           w w w. i n s u r a n c e n o o d l e . c o m
                   Tied up with your insurance company?
                                your insurance company?

      Customer Appreciation Week
                 Insurance Inc.
          at Big Insurance, Inc.
Most of us know the best way to run a successful business is to keep the customers
happy. Seems someone forgot to tell the big insurance companies, though. At insur-
ance noodle we can save you and your customers time and money in a convenient

                                                        Odd Name.             Great Insurance.
                                                        w w w. i n s u r a n c e n o o d l e . c o m
     Campaign: “Tied”
           Internet Executions
           Internet Executions
Full Button (125x125)
Running Time : 4 seconds, looped.

Full Button (125x125)
Running Time : 6 seconds, looped.
   Do you feel shackled to your
    big insurance company?
Once those big firms get you as a
customer, they make it hard to leave.
At Insurance Noodle we can give you
quotes from a variety of companies so
you can make sure you or your insur-
ance agent are getting the best deal.
You’ve been getting this from your
 insurance company far too long.
 At Insurance Noodle, we can give you
 quotes from a variety of companies so
 you or your independent insurance
 agent can make sure you are getting
 the best deal.
Save your customers some time.

As much as you may not want to
admit it, your customers want to spend
as little time with you as possible. At
Insurance Noodle, we can provide
time- and money-saving options for
you and your customer.          
    Campaign: “Icons”
           Internet Executions
           Internet Executions
Full Banner (468x60)
Running Time : 6 seconds, looped.

Full Banner (468x60)
Running Time : 7 seconds, looped.

Full Banner (468x60)
Running Time : 7 seconds, looped.
                                                                 Campaign: All
                                                                 Television Execution
                                                                  elevision Execution

Frame One
Camera Direction: Scene opens on desert landscape. Dolly right to guy chasing a scorpion. Subtitles
    appear at bottom of screen: “Teddy’s Scorpion Hut just bought over $210,000 in flood insur-
    ance from a big company.” Cut to next scene.
Voiceover: “Maybe your insurance broker from that big firm always asks about your son.”
Music: Upbeat original composition. Whimsical undertones emphasize humor of the ad’s scenes.
                                                              Campaign: All
                                              Television Execution Continued
                                               elevision Execution Continued

Frame Two
Camera Direction: Scene opens with camera at surface of ocean, with water lapping up over the
    lens. Camera peds downward to medium shot of an underwater wedding (see sketch). Subtitles
    appear at bottom of screen: “Mike just opened his dream business: an underwater wedding
    chapel. Mike’s insurance company sold him $280,000 in fire insurance.” Cut to next scene.
Voiceover: “And maybe he sends you a birthday card every year.”
Music: Continues from frame one.
                                                               Campaign: All
                                              Television Execution Continued
                                               elevision Execution Continued

Frame Three
Camera Direction: Scene opens with closeup of sidewalk. Pan upward to storefront. Subtitles ap-
    pear at bottom of screen: “Fort Knox’ insurance company suggested $2,000,000 in theft insur-
    ance.” Cut to next scene.
Voiceover: “And, just maybe, he is selling you a lot of insurance that you don’t need.”
Music: Continues from frame two.
                                                               Campaign: All
                                              Television Execution Continued
                                               elevision Execution Continued

Frame Four
Camera Direction: Scene is Insurance Noodle logo with tagline “Odd Name. Great Insurance.”
    Scorpion from frame one skitters across lower two-thirds of frame. Fade out.
Voiceover: “You’re in control with Insurance Noodle. A variety of quotes and a helpful panel of
    experts can make business insurance easier for you or your independent agent. So, how is
    Junior anyway?”
Music: Continues from frame three and fades.

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