Jessica&Sonia

MarketingPlan
TableofContents
ExecutiveSummary
CompanyDescription
OurCustomer
Data
Demographics
Motives
Positioning
Targeting
PersonalityFactors
Attitudes
ProductUsage
Perception
ConsumerBehavior
Satisfaction
Goals
Advertisements
MarketingMix

ExecutiveSummary

Theproductthatwewanttomarketisanewinsurancecompanythatgivesbackto
thecustomer.

CompanyDescription
YouInsure : An insurance company that allows the customer to invest in their future by
giving them a portion of the money they saved for car insurance back to them. The longer
they stay with the company the more money they are able to save depending on how
good of a driver they are.
OurCustomer

PersonalcustomerBuysgoodsandservicesforhisorherownuseorfortheuseofthe
household.

Menbetweentheagesof3554

Womenbetweentheagesof2034(Thisisthelargestagegroupofwomenandmen
driving in the U.S. We found this information from The Federal Highway
Administration.(CenterofDiseaseControlandPrevention)

We attract our customers by presenting them with the main benefit of our company
comparedtothebiggercompanies.Wewillpresentthatourcompanywillhelpthemto
getaportionofthemoneytheyinvestintotheircarinsuranceback.Thebestwaytoget
attentionnowadaysistocreateaninformationalcommercialorvideo.YouTube,Vine

andWorldStararegreatresourcebecauseitisfreetomakeanaccountandwebsiteslike
thesearewherepeoplesharevideostoFacebookandTwitter.Togetourcompaniesname
outtherewewouldmakeaviralvideo.PeopleofallageswatchvideosfromFacebookto
YouTube.(Ourbudgetformakingthisvideoprofessionallywouldstartat$5,000.)

Figure1

Targetingwomenwouldbealoteasierbecausetheyareyoungerandmostlikelymore
willingtotryournewcompany.Theyarelowinconsumerdogmatism.Withtheolder
menwewouldhavetotrymuchhardertogetthemtoswitchcompaniesortryanew
companybecausetheyaremorelikelytostickwithwhattheyknow.Eventhoughthe
oldermenarehardtopersuadewewanttotargetthebiggestportionofdriversonthe
road.(RefertoFigure2)

Figure 2

Theywouldbemiddleagedandveryactivedrivers.Theagegroupof5565and1619arenot
ourcustomers.Theyoungeragegroupisntwhoourcompanyistargetingbecausetheyhavethe
mostaccidents. Theyoungerthedriversarethemorelikelytheyaretogetintoanaccident
involvingtextinganddrivingordrinkinganddriving.
Teen drivershavecrashrates3timesthoseofdrivers20andolderpermiledriven.
Immaturityleadstospeedingandotherriskyhabits,andinexperiencemeansteendriversoften
don'trecognizeorknowhowtorespondtohazards.ThisquotecamefromInsuranceInstitute
forHighwaySafety.
Theoldergroupsofdriversontheroadalsoarentassafeasthedrivingagewearetargeting.
Advancingagecanbringimpairmentsthataffectdrivingability. Driversage70and
olderhavehighercrashratespermiletraveledthanmiddleageddrivers,thoughnotashighas
youngdrivers.1ThisquotecamefromInsuranceInstituteforHighwaySafety

1 "Older Drivers." Topic Overview. Insurance Institute for Highway Safety, n.d. Web. 08 Dec. 2013.
<http://www.iihs.org/iihs/topics/t/older-drivers/topicoverview>

Ourcustomersarethoughtfulandcareabouthavingcarinsurancethatwillsavethemmoney.
Theyalsocareabouttheircarandthepeoplethatmaybeinit. (Doasurveyaskingquestions
aboutwhatkindofdriverourcustomerthinkstheyare.)

Atfirstconsumersarenotloyaltoourbrand.Sinceweareanewcompanypeoplewillnottrust
us.Oncewegaintheirtrustandtheyenjoyourservicetheywillbecomeloyalcustomers. We
knowthatourcustomershavefamiliesandwanttoprotectthem.Wewilltargettheirneedfor
safetyandsecurityintheirfamily.Themajordifferenceinourinsurancecompanyisthatwewant
tohelpcustomerssaveandinvestintheirfuture.Bothmenandwomenonthesamelevelput
awaymoneyforthefuture.Whetheritsininvestmentsorsavings.Targetingthisbehaviorofour
customerwillhelpusgaintheirtrust.
Whenitcomestopersonalfinancetopicsthatappealtothegenders,Sethi'ssurveyfoundmen
are more interested in investing (83%) and entrepreneurship (54%), while women prefer the
topicsofsavings(79%)andfrugality(67%). 2RamitSethiisanauthorthatwroteIWillTeach
YoutobeRich. He didasurveyonhowmenandwomenviewmoneydifferently.Thisquote
camefromFoxBusiness.

Data:QualitativeandQuantitativeResearch

Wewilluseresearchtofindoutmoreaboutourcustomersandcatertotheirneeds.

Wewillgetourinformationonourcustomerfromonlinesurveys,questionnairesandagencies
thatdealwithdriversliketheFederalHighwayAdministrationCenterofDiseaseControl.

2 Rogers, Kate. "Battle of the Sexes: How Men and Women View Money." Fox Business. N.p., Sept.
2011. Web. 08 Dec. 2013. <http://www.foxbusiness.com/personal-finance/2011/09/30/battle-sexes-howmen-and-women-view-money/>

Thebudgetforourprimarydataisaround$6,000.Secondarydatamaycostsomemoney
becausesometimeswellhavetobuydatafromothercompaniesandtherearewebsites
ontheinternetthataskyoutocreateanaccountandpaybeforeyoucanusetheirdata.

Theresultsweexpecttogetfromourresearchisthattheagegroupwearetargetingare
thekindsofconsumersthatareloyalists,lowinconsumerdogmatismandwanttosave
money.Alsowewanttofindoutwhattheywantinaninsurancecompanyandwhattheir
perceivedvalueis.Withtheresearchwewanttofindthattheyarewillingtopaythe
moneyforwhatourcompanywillgivetheminreturn.

Demographics

Men3454 (Targetingthisolderagegroupofmenwillbehardbecausetheyaremost
likelyloyaltoanothercompanybutthisistheagegroupthatwehavetotarget.Ina
Forbesarticleonsafestdrivers,60%ofaccidentshappenfromtheagesof1624.This

suggests that drivers are safer as they age. That goes for both men and women.

Figure 3

Women2034(Targetingthisagegroupofwomenisgreatforourcompanybecause
statisticsshowthatwomenarehavingchildrenyounger.Thesafestdriversarethedrivers
thathavefamilies.Theywanttoprotecttheirchildrenandwewanttohelpthem.Figure4

Figure4
Workingclass,middleclassandupperclass.(Thesearethepeoplewhohavemoneyand
arethinkingaheadandwanttosavefortheirfuture.)

Havefamilies.(Wearetargetingsingleparentfamilies,nuclearfamiliesandextended
families.Thesegroupsofpeoplehavethevaluesthatwearelookingforinourcustomer.
Theywanttokeeptheirfamilysafe.Wearealsotargetingfamiliesbecauseloyaltyof
brandpreferenceistransferredfromonegenerationtoanother.Thiswillhelpusbuildour
consumerbase.InformationreceivedfromChapterTeninConsumerBehaviortenth
editiontextbook.)

Drivetowork,home,drop/pickupkidsandfamily.Usescarfrequently.

Education:Incollegeorcollegegraduates.

Boomtownsingles,Moversandshakers,BedrockAmerica.Thesearethepeopleweare
targeting because they are the professional people that have families and higher
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education.Theystriveformoreinlifeandarelookingforsecurity.(Boomtownsingles
donthavefamiliesbutwestilltargetthemfortheirstatus.)

Ourcustomersaresurvivorsbelieversstriversandmakers.Thesearethepeopleweare
targetingbecausetheyaremorelikelytowanttosavemoneythemost.Theinnovators
maywanttosavemoneybutnotasmuchasthesurvivors.

Motives

Inthebeginningwewanttotargetconsumerswithgenericgoals.Sincewearestarting
outthatwouldbethebestwaytogetourcompanyoutthere.Genericgoalconsumerscan
helpourcompanygainacustomerbase.Wordofmouthisthebestwaytogetoutsources
ofinformation.Oncewegainacustomerbasewewillbeabletotargetbrandspecific
consumersbecausetheywillknowwhatourcompanyandbrandrepresentsfromothers.
Word of mouth in this generation also happens a lot through technology. Focusing
spreadingourinformationovertheinternetwillhelpgettheattentionofmoreofthe
customerswearetargeting.

ThereisacompanycalledWordofMouthMarketingAssociation.Becomingamember
ofthisorganizationwouldhelpusaccessinformationandspreadthewordofournew
company.Asmallbusinessmembershipis$1,000monthly.(Thisiswherewewould
havetopayforsecondarydata.)

Wewouldgoforanavoidobjectapproachtomarketourcompany.Wewillbeusingthis
approachbecauseourcustomersaresafedriversandshowingthemanadaboutwhat
couldhappenwithoutourcompanywillhelptopulltheminmore.

Targetingtheneedofsecuritythateveryonehas.

Wewouldtargetwomenthroughemotionalmotivesandmenthroughrationalmotives

Ourcustomeralsothinkscognitively.Theythinkcognitivelybecausetheyweightheir
optionswisely.Beingsafedriverstheyknowtheyhavetothinkabouttheirlivesandthe
othersaroundthem.Also,theythinkabouttheirfutureandtheywillbeabletoseethat
ourcompanywillbeabletogivethemwhattheywant;anaffordableandrewarding
insurancecompany.

Positioning

Wewouldpositionourbrandbyinformingtheuniquebenefitofinvestinginourcompanythat
differentiatesourcompanyfromothersincarinsuranceindustry.

Wewouldcommunicatetoourconsumersthroughfunnyandinformationalcommercials
onYouTube,VineandWorldStarasmentionedabove.

Theimagewewanttocreateinthemindofourconsumersisreliability,affordability,
efficiency,honestyandfairness.Wewouldachievethisbymakingacommercialwitha
balanceofhumorandinformation.

Targeting

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Theneedfornarrowcastingwilllikelytoariselaterinourcompanybecausewearenewandwe
wonthavealargeconsumerbase.Itmakesmoresensetosegmentconsumersoncethecompany
hasgrownandmakenewpoliciestailoredtotheirneeds.

Narrowcasting is a marketing method that allows marketers to develop and deliver more
customizedmessagestoincreasinglysmallermarketsegmentsonongoingbases.

PersonalityFactors

Wearetargetingconsumerswhoarelowindogmatismandarehighlyinnovativebecausetheyare
opentowardsunfamiliarproducts.Wetargetcustomershavingthesepersonalitytraitsbecauseour
insurancecompanyisnew.

ConsumerDogmatism:Apersonalitytraitthatmeasuresthedegreeofrigiditythatindividuals
displaytowardunfamiliarandtowardinformationthatiscontrarytotheirbeliefs. 3

ConsumerInnovativeness:Apersonalitytraitthatmeasurestheneedforuniqueness.

Sincepeoplewithlowdogmatismaremoreopentochangeinwhichproductstheyusethiswill
helpourcompanytargettheyoungerwomenandmenwearetryingtogettojoinourcompany.
(RefertoFigure2)

TheIdcanplayaroleinourtypeofproductbecausepeoplesimmediateimpulseswouldbeto
drivefasttogettotheirdestinationandnotbesafeontheroad.Butthecustomerssuperego
wouldthinkthatitsnotsafeandtheyshouldfollowtherulesanddrivethespeedlimit.Theegois
thebalanceandallowsthecustomertomaketherightdecisionandtobesafe.

Attitudes
3 Schiffman, Leon G., Leslie Lazar. Kanuk, and Joseph Wisenblit. Consumer Behavior. Upper
Saddle River, NJ: Pearson Education/Prentice Hall, 2010. Print
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Toovercomethedrawbacksofbeinganewcompanyintheautoinsuranceindustry,wechange
theattitudesofourconsumers.Wewouldemphasizeontheutilitarianandknowledgefunction
because our company provides the utility of saving money in the longterm and knowledge
becauseitprovidesauniquebenefit.

ProductUsage

Peopleusecarinsurancewhentheygetintoanaccident,whentheyneedtogettheircarsrepaired
andwhenthereispropertydamage.Frequencyofproductusagedependsontheprobabilityof
peopleoutofourconsumerstoencounteranautocollisionperyear.AccordingtoFigure6:

In2012,5.6percentofcollisioninsurancepolicyholdershadaclaim,while2.6percentofpeople
withcomprehensivecoveragehadaclaim.

In 2012 the average auto liability claim for property damage was $3,073; the average auto
liabilityclaimforbodilyinjurywas$14,653.In2012theaveragecollisionclaimwas$2,950;the
averagecomprehensiveclaimwas$1,585.4

Thefrequencyofproductusageisbasedonthefrequencyofpeoplegettingintoaccidents.But
theyarenotlikelytogetintoaccidentsbecausetheyaresafedrivers.

WewouldemphasizeontheethnocentricelementofourproductasAnAmericanCompany
because Americans hold a positive image of the products made in their country. We would
emphasizeonthisthemewhenadvertisingourproduct.ForexamplehavinganAmericanflag
flyingintheadvertisement.AccordingtoasurveyconductedbyConsumerReportsNational

4 Auto Insurance." III -. N.p., n.d. Web. 07 Dec. 2013. <http://www.iii.org/facts_statistics/autoinsurance.html>

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ResearchCenter,GivenachoicebetweenaproductmadeintheU.S.andanidenticalonemade
abroad,78percentofAmericanswouldratherbuytheAmericanproduct 5
ConsumerPerception

Price

Customervalueistheratiobetweentheconsumersperceivedbenefitsandtheresourcesusedto
obtain those benefits. Our consumers receive economical (they get their money back) and
functionalbenefitsandtheresourcestheyinvestaretimeandmoneytoobtainthosebenefits.

Thepercentageofreturnthatourconsumerwouldgetwouldbedecidedonthebasisofloyaltyto
ourcompany.Weencouragelongtermrelationships.Forexample,ifourconsumerstaysloyalto
usformorethan10years,wecharge10%(DependingontheresultsoftheJNDexperiment..The
JNDistheJustNoticeableDifferenceTheminimaldifferencethatcouldbedetectedbetween
twostimuli)moretothereturnstheywouldreceiveattheendoftheircarinsuranceperiod.

TheJNDexperiment:Wewouldhave5focusgroupsandeachofthemwouldbetoldthatthey
wouldearnapercentageofreturn.Thepercentageofreturnwouldbedifferentforeachgroup.
Thentheywouldbehandedsurveyswithformatof7pointLikertscale(morediscrimination)to
judgetheappealingofthepercentagerateofreturn.(LikertScaleApopularmeasurementtoolin
whichconsumersranktheirpreferencealongascalethatvariesfromagreetodisagreewith
variousgradationsbetweentheextremes.)

5 Made in America?" Products Made in America. ConsumerReports.org, Feb. 2013. Web. 24

Nov. 2013. <http://www.consumerreports.org/cro/magazine/2013/02/made-in-america/index.htm
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Figure6
ProductDifferentiation

Ascomparedtootherinsurancecompaniesourcompanystandsoutbecausewearetheonly
companythatgivesaportionofthemoneysavedovertimebacktothecustomer .Ourcompanies
otherUniqueSellingPointsisthatweareacompanythatfocusesonfamily.

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Mostinsurancecompaniesdealwithmorethanjustcarinsurance.ForexampleProgressivedeals
with motor vehicle and home insurance. With our company we are focusing only on car
insurance.Thiswillallowthecompanytobeexpertonthiskindofinsurance.StateFarmsUSPis
thattheyarealwaystherewhenyouneedthem.GiecosUSPisthatyouaresaying15%offcar
insurancewhenyouusetheircompany.ThedifferencebetweenourcompanyandGiecoisthat
thelongeryoustaywithusandcontinuetobesafedriversyouwillsavemoney.Themoneythat
youcontinuetoputintoyourcarinsurancewillatsomepointbegivenapercentageofitback.

PerceivedQuality

Whatthecustomersareexpectingistogetagoodproductthatisworththemoneytheyare
spending.Alsothatthisproductwillhelpthemsavemoneyforthefuture.Theybelievethey
cantrustourcompanyandthattheywillhavesecurity.

PerceivedRisk

Ourconsumersarelikelytoviewtheirdecisionsasafunctionalriskastheinsuranceconceptis
new.However,toreassureourconsumer,weuseadvertisementwithanemphasisonutilitarian
andknowledgefunctionoftheattitudechangetheory.

ConsumerBehavior

Theattitudestheyhavetowardsthisproductarenecessary.Sincetheyaresafedriverstheyknow
thathavinginsuranceisimportantandisneededincasesomethinghappens.Theythinkaheadfor
thefuture.Especiallysincemostofourcustomershavefamilies.

Wewouldfindoutabouttheattitudeofourcostumerstowardsourcompanythroughprimary
dataandattitudesurveyssenttoourcustomersbyemail.Itwouldbeashortsurveyandwewould
measuretheirattitudesonthebasisofsatisfaction,affordability,responsivenessandreliability.

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Satisfaction

Wecanensuresatisfactioninourcustomerbydoingsurveysandaskinghowtheyfeelaboutour
company.Theycansuggestthingstoimproveandalsotellinguswhatwearedoingrightsothat
wecontinue.Wecancheckuponpeopleonceevery6months.Wecanalsosuggestthatifthey
haveanyproblemstocontactourcompanyandwewilltaketheircommentsintoconsideration.

Loyalists Loyalists are our best customers because these are the customers that make our
company.Theyconsistentlygiveusmoneyandkeepourcompanyafloat.Withoutloyalistswe
wouldconstantlyhavepeoplecomingandgoingandourcompanywouldntdowell.

Apostles Apostles are also our best customers because they spread good word about our
company.Withwordofmouthfromtheapostlesabouthowmuchtheylikeourcompanywewill
beabletogainmorecustomersandhopefullymaketheapostlesloyalists.

Other customers who exist in our market are defectors, terrorists and hostages. We would find out
about them by taking feedback from our customers.

Wecanmakepotentialdefectors,hostagesandterroristsintoapostlesbylisteningtowhatthey
needfromourcompanyandtryingourbesttomeettheirneedswithoutaffectingthecustomers
thatarehappywithourcompany.

Goals

YouInsurefulfills safetyandsecurityneeds underMaslowshierarchyofneeds asit

helpsconsumersmanageriskbyofferingtopayconsumersasumofmoneyforbeing
safedrivers.

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Advertisements

Wewouldtargetverbalizersbecausewewanttoinformpeopleabouttheuniquebenefitsofbeing
acustomertoourcompany.Wecouldtargetvisualizersinfutureadvertisementstoexpandour
consumerbase.(VisualizersversusVerbalizersThetheorythatsomeconsumers,duetotheir
personalityrespondbettertohighlyvisualadvertising.Incontrastotherconsumersrespondbetter
toadvertisingthatofferdetaileddescriptionsutilizingwrittenorverbalinformation.)

Theimagewewanttosetinthemindsofthecustomerisreliable,affordable,efficient,honest
andfair.Alsothatwecareaboutfamilyvaluesandkeepingthemoneyinthecustomerspockets.
Toachievethis,wecouldtrainouremployeestoexhibitgenuineinterestinmeetingcustomers
needsandstrivingtomeettheirgoals.

Wecanmeasureinvolvementofconsumersthroughselfadministeredsurveysandthendecide
whichroutetopersuasionisbestsuited.

MarketingMix

ProductInsuranceCompany

PlaceStartinmajorcitiesandbranchoutfromthere.

PromotionsViralvideosonYouTube,Vine&Worldstar

Pricewouldbethesameasothercompaniesatinitialstages.Wegiveapercentageofmoney
backbasedonlongevityandloyaltytothecompany.

Willingness to pay

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Atthebeginningourcustomerwillbewillingtopaytheaveragepricefortheircarinsurance
dependingonthetypeofcartheyhaveandtheirpasthistory,justlikeanycarinsurance.They
arewillingtodothisbecausetheyknowinthefutureitwillpayoff.Oncetheyarewiththe
companytheywillstarttopayalittlelessbecausetheyaresafedriversanddontneedtopaya
lotbecausetheydontgetintoalotofaccidents.Whentheystarttopaylessforthecarinsurance
theywillhavealittlebitmoremoneyintheirpocketsnowandtheywillalsobesavingmoneyfor
future.

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