[Company name] [Company address]
[Company name] [Company address]
Remember Allstate’s famous phrase for attracting the Baby Boomers’ and Generation X? “You’re in good hands with Allstate!” Initially, we believed in Allstate’s message. Until my research introduced me to a Santa Fe (N.M.) plaintiffs' lawyer named David Berardinelli
Associates, S. J. (n.d.). 2011 Insurance Shopping Study. SM. http://academic.brooklyn.cuny.edu/economic/friedman/mmmarketingplanning.htm. (n.d.). http://academic.brooklyn.cuny.edu/economic/friedman/mmmarketingplanning.htm. Retrieved from http://academic.brooklyn.cuny.edu/economic/friedman/mmmarketingplanning.htm
Journal of Behavioral Studies in Business . (n.d.).
Keller, K. (2011). Marketing Management. 2011 Pearson Education, Inc. Publishing as Prentice Hall.
Keller, K. (n.d.). Marketing Management.
. I suspect, like me, David Berardinelli is Generation X member; the pleasure seekers who reached adulthood during the early 80s. Brands that successfully speak to us include fine wines reasonably priced; David Berardinelli collects fine wine. Also, products for home entertaining. For me, gourmet dining among friends; similarly, Berardinelli has chefs from local restaurants over to cook in his home. Functional products that make organization easy is essential, mostly, so I can spend quality time with friends and family privately. Mostly, brands that assure protection successfully speak to Generation X member like me and targets my age group. “You’re in good hands with Allstate!” Phrase was the mainstream market approach that served them well until insures sensed the company was paying too much for fraudulent claims and attorney fees. (BusinessWeek, 2006)
Suddenly, in the early 1990s, Allstate became “Tough Hands with Allstate”. Allstate retained McKinsey & Consultants due to widespread belief among insurers claiming illegitimate automobile-accident claims and attorney advertising, were to blame One focus of the Allstate McKinsey project called Claim Core Process Redesign (CCPR), was aimed at striking a blow at that trend. (BusinessWeek, 2006) The McKinsey Project “radically alter our whole approach to the business of claims." By redesigning Allstate's claims-handling system, a consulting firm realigned the insurer's goals to placate shareholders at policyholders' expense. (Berardinelli, 2006)
Allstate abandoned its obligations to its customers which caused an erosion of its conservative market. From 1992-1997 ignored, building brand awareness in non-traditional markets such as motorcycle market. Allstate’s marketing research analysis determined that the increase in national motorcycle sales were partially due to more women and baby boomers taking up riding. Since, Allstate’s target was males being head of household, women found the Allstate brand to be relevant to them; therefore, they are less likely to seriously consider that brand when shopping. Slide 3.3 Marketing Information System
Using Allstate’s Marketing Information System people, equipment, procedures The McKinsey Consultants redesigned Allstate’s claims-handling system by realigning the insurer’s goals to shareholders advantage at policyholders’ expense. By distributing needed, timely and accurate information to marketing decision makers (Keller, Marketing Management, 2011)
According to David Berardinelli's notes, one of the key elements of McKinsey's plan was reducing the number of claimants who turn to attorneys after an accident for help in collecting on their insurance. The consultants even distributed forecasts to decision makers of potential gains would mean for Allstate's stock. Allstate’s recovery to gain their share of Insurance Business requires a marketing metrics targeted towards a non-conservative Social-Cultural Environment sectors to be effective.