Market Research is a critical activity that helps a company in making significant resolutions as to whether it should invest in new markets, or introduce new-fangled products and services into existing markets (Kotler & Caslione, 2009). Moreover, it helps marketers know what customers think of their products and services (McQuire, 2006). As a result, of the competitive nature of the insurance sector, all companies must employ extensive modes of advertising and their insurance premiums, in an attempt to persuade clients to buy them and keep the existing customers from being poached by competitors. Allstate insurance company experienced a significant decline in its sale of insurance premiums and this forced the company to revisit its advertising strategies, and hence improve on them. They realized that they were losing ground to Progressive and Geico, among other companies; thus, they direly needed to come with new strategies. Earlier strategies of advertising and marketing by Allstate Insurance was not fruitful, since it has recorded a decrease in the market share of non-traditional customers who prefer the conservatively oriented companies such as Geico and Progressive.
Moreover, after its market study, it realized that the motorcycle industry was growing significantly, and this growth was not reflected in the way people purchase the company’s insurance premiums. Another fact that led Allstate to refurbish its advertising and marketing tactics is that out of the 14600 of its agents, about 600 were ardent riders of motorbikes. This made them realize that they could utilize these employees, since they had a great deal of knowledge about motorcycles. This effort was to help them increases their market coverage and create more awareness, and thus boost their annual revenue, since they realized that it was diminishing.
References
Kotler, P., & Caslione, J. (2009). Chaotics: The business managing and marketing in the age of turbulence. New York, NY: Amacom Publishing Ltd.
McQuire, E. (2006). The Market Research Toolbox: A Concise Guide for Beginners. London, LDN: Sage Publication Inc. Press.
