Executive Summary ecutiv 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 kgr Backg orma Information 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 Strengths: ♦ 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 kgr Backg orma Information Continued Weaknesses ♦ 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 owners ♦ 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 Opportunities ♦ 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 Threats ♦ 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 being ♦ Stockholders fear the dot.com 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: ♦www.coveragecorp.com .cov www.co 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.” ♦www.einsure.com .einsure www.einsur “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.” ♦www.epolicy.com .epolic www.epolicy “ePolicy.com 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 Continued Indirect Competition Large, corporate insurance agencies like: ♦State Farm ♦Blue Cross Blue Shield—Blue Select ♦Travelers ♦American Republic ♦Humana ♦Mutual of Omaha ♦Conseco 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 Demographics ♦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 Psychographics ♦ 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 Continued Secondary Target Secondary arg Demographics ♦ Independent Insurance Agents ♦ Specialists looking to broaden their capabilities by using online insurance distributors Psychographics ♦ 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 tiary ertiar arg Demographics ♦ Stockbrokers, investors, and potential buy-out candidates Psychographics ♦Desire to cash in on the e-business front ♦ Able to invest or help the company reach IPO status Researc h esearc 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 time. 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) Strategy Strateg Advertising Objectives ♦ Create awareness of Insurance Noodle to small businesses, independent agents, and stockholders ♦ 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 Media Strategy Strateg 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 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 Noodle.com’s name out in “big lights”, to let people know who Insurance Noodle.com 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 Media Strategy Continued Strateg Continued Trade Shows Shows Insurance Noodle.com 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 Noodle.com 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 Forbes 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 CAB LE TE LE VIS ION 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 WE B -B AN N E R S forbes.com businessweek.com timebusiness.com wsj.com T R ADE S HOWS Media Calendar Media Media Production Costs Production 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 Budget 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 s.co m 6 $2,200 $13,200 busine ssw ee k.co m 6 $1,800 $10,800 tim ebusiness.com 4 $1,500 $6,000 w sj.co 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 Creative eati Creativ 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. eally “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- tions. 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 respect. Creative eati Creativ Continued 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 future location of Mike’s Underwater Wedding Chapel. Mike has $280,000 in fire insurance. 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. www.insurancenoodle.com The Future Location of Teddy’s Scorpion Hut is here. Teddy’s insurance company sold him $210,000 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. www.insurancenoodle.com eally “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? eciation pprecia Customer Appreciation Week ance, 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 fashion. 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. www.insurancenoodle.com 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. www.insurancenoodle.com 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. www.insurancenoodle.com 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 hree 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 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.