Progressive Insurance: Making Pay as You Drive a Snap for Consumers

21 Pages Posted: 30 May 2017

See all articles by Paul Farris

Paul Farris

University of Virginia - Darden School of Business

Sylvie Thompson

University of Virginia - Darden School of Business

Thomas J. Steenburgh

University of Virginia - Darden Graduate School of Business

Abstract

Heather Day, a marketing director and brand manager, must evaluate her options for Progressive Insurance's next Snapshot product advertising campaign. Working on a limited budget, Day must select between employing television ads featuring the popular character known as Flo and continuing with the launch of advertising campaigns already in use, such as “Rate Sucker.” The case places Progressive's proposed advertising campaign into a broader historical context and asks how the Snapshot product both fits into the company's current business model and affects its channel strategy. Students are presented with a myriad of exhibits that help make this authentic marketing scenario come to life.This case is used in Darden's first-year course “Marketing” and would also be an appropriate selection for an “Integrated Marketing Communications” or “Brand Management” course. It is intended to replace “Progressive Insurance” (UVA-M-0633), “Changing Channels: Progressive Insurance Drive Insurance” (UVA-M-0756), and “Does TripSense Make Sense?” (UVA-M-0757).

Excerpt

UVA-M-0873

Rev. Sept. 6, 2016

Progressive Insurance:

Making Pay As You Drive a Snap for Consumers

It was fall 2013, and Heather Day, marketing director for the Progressive Corporation's Snapshot program, was sitting in her office in Mayfield, Ohio, evaluating her options for the next Snapshot advertising campaign. Her budget was almost exhausted and she needed one more campaign to take the program into 2014. Day knew that the Progressive executives viewed Snapshot as a strategic tool with which to maintain the company's competitive pricing edge within the industry. It was her job to convince consumers that the new Snapshot technology was attractive. She was struggling to decide which campaign to recommend.

Should Day recommend leveraging Snapshot with Flo? The always perky Flo, with her classic navy headband and matching sneakers along with her tricked-out name tag, had turned Progressive Insurance into a household name. Flo first appeared in television commercials in 2008 as the upbeat Progressive store clerk. She quickly gained a following on various social media sites such as Twitter. By 2013, some would argue, she had reached iconic status—she had almost 5million fans on Facebook alone. Could Flo do it again and turn Snapshot into a household program, or were there limits to how far Progressive could push the character?

. . .

Keywords: advertising strategy, pricing strategy, branding, marketing communications, brand strategy, brand management, Progressive Insurance, Snapshot, B to C, Rate Sucker, Flo, marketing budget, marketing forecast

Suggested Citation

Farris, Paul and Thompson, Sylvie and Steenburgh, Thomas J., Progressive Insurance: Making Pay as You Drive a Snap for Consumers. Darden Case No. UVA-M-0873. Available at SSRN: https://ssrn.com/abstract=2974733

Paul Farris (Contact Author)

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States
434-924-0524 (Phone)

HOME PAGE: http://www.darden.virginia.edu/faculty/farris.htm

Sylvie Thompson

University of Virginia - Darden School of Business

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

Thomas J. Steenburgh

University of Virginia - Darden Graduate School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

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