Farmers Insurance Group Marketing Plan
Vanessa Hesterberg
BUS 695 Marketing Capstone Seminar
Prof. Dr. C.R. Roberts
July 9, 2012
Chapter 4 Marketing Plan Exercise
Macro trend analysis encompassing all relevant macro trend categories and should uncover quantitative data that provides evidence of the size and growth rate of the overall market
In the demographic environment many of the target audience are middle class homeowners between the ages of 25 and 70 years of age and have pets. The company would incorporate fitness and exercise with a pet and offer the insurance at the same time, appealing to the target audiences’ sociocultural side. The company would also encompass the economic environment which would incorporate extra discounts on the home and auto side for having pet insurance, making the insurance more affordable.
According to the Journal Sentential, more companies are offering pet insurance as a perk or discount to the employees. According the American Pet Products Association, Americans spent over 12.2 billion on vet care.
Qualitative data regarding the five forces
This new line of insurance would compete against other small companies like Purina who sells pet insurance on the side. The only threat would be the threat of other insurance companies like Allstate or Statefarm competing with Farmers after seeing the company’s success. Farmers Insurance would have strong buying power with their current customers and our current target market. There is a slight threat of substitution but this service is very unique. The only possible threat to entry would be our current slow economy but most customers treat their pets as family and tend to look past the economy.
Critical success factors An important critical success factor is that every pet will get sick just like human beings, it is bound to happen. Also, most pet owners consider their pets to be family according to the American Animal Hospital Association.
Chapter 5 Marketing Plan Exercise
Precisely spell out the research objectives the research is intended to meet.
My research is intended to determine what size of my already mature market is need of pet insurance. Market potential would be the first step in using an evidence based forecast and sales forecast. I would also research using analogy and focus groups but leave room for error based on that fact that buyers do not always do as they say.
Design the research to get you there. Identify your methods, your sample, and any statistics (means, etc.) you will employ. Prepare drafts of questionnaires, guides for focus group sessions or in-depth interviews, plans for how you will conduct observational research, etc.
My sample will include every agent’s current customer. The customers with bundled insurance will be most important and noted separately from those customers who have just auto, home or life. It is important to see how many customers would buy this insurance just to get every possible discount even if they do not yet carry pet insurance. For my research I plan to use a focus group. My focus group will be asked a series of questions that look something like this: 1. How many of you are pet owners? 2. How many pets do you have? 3. What kind of pets do you have? 4. How many of you value your pets like family? 5. How much do you spend a year on vet bills? 6. How often do your pets need medical attention? 7. How many of you Bundle your insurance 8. How many of you think it is important to keep your insurance with one company?
I will conduct observational research by asking each agent to ask every customer if they would be interested in a quote for pet insurance. Those who are interested will be noted by the agent and the agent’s office will then report back to each district. Each district will then send their numbers and other pertinent information in to the main office.
Describe how the combination of your secondary research and your planned primary research will lead to your estimate of target market size and your sales forecast for your marketing plan. Precisely spell out the mathematics that will do this, connecting it to specific secondary data or specific answers to questions or observations from your primary data.
By using both my primary research of focus groups, questionnaires and qualitative observation and my secondary research of the popularity of pet insurance in the current market as well as the size and percentage of the potential market that already has pet insurance, it is better to go with the chain ratio forecast to determine my sales forecast. It will look something like exhibit 5.4 on page 129 in our text book
Reference
Gores, P. (2011). Pet health insurance trend grows. Retrieved from http://www.jsonline.com/business/121472104.html
Walker Jr., O. C., & Mullins, J. W. (2011). Marketing strategy: A decision-focused approach (7th ed.). Boston, MA: McGraw-Hill Irwin.
