Allstate Corporation Marketing Mix (4Ps) & Marketing Strategy
Marketing strategy of Allstate Corporation through marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion).
Allstate Corporation Product Strategy:
AllState Corporation is one of the leading financial institutions of the world. Allstate provides its services in the sector of Insurance. It started its journey with the idea of selling auto insurance by direct mail in 1931. By 1941, only one-fourth of the auto owner used to have insurance. But to take the financial responsibility of the mishaps which might occur because of the incidents, a law was passed in 1950s. Throughout 1950s, AllState introduced new products like fire insurance, homeowners and life insurance. Gradually, AllState kept on introducing new products like worker's compensation insurance and surety bonds. Currently, AllState provides three major products as part of its marketing mix service offering:
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Insurance Products (Asset Protection) |
Wealth transfer |
Financial Products |
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Auto Insurance & Commercial Auto |
Estate Planning Products |
Asset Management |
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Homeowners Insurance |
Business Succession Planning Products |
Accumulation |
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Condominium |
Fixed Survivorship Life |
Life Insurance |
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Scheduled Personal Property |
Variable Survivorship Life Family Protection Insurance |
Retirement |
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Small Business Owner |
Term Life |
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Customizer And Business Package Policy |
Long-Term Care |
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Image: flickr.com/photos/lucamascaro/
This concludes the product strategy in Allstate Corporation marketing mix & strategy.
Allstate Corporation Price/Pricing Strategy:
Below is the pricing strategy in Allstate Corporation marketing mix strategy:
AllState practices the price optimization approach. This approach uses the mathematical models to analyses the variation in customer behavior for buying a particular service or product with varying prices.
Price optimization includes analyzing competitive management, customer elasticity models and other optimization techniques. This approach is generally used to provide its customers a tailored pricing for different needs and demands of the customers. This strategy helps AllState to come up with new and different price mixes as per the dynamic market and customer needs. This approach helped AllState to retain their loyal customers by providing them services at customized prices.
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Allstate Corporation Place & Distribution Strategy:
Following is the distribution strategy in the Allstate Corporation marketing mix:
The company started its operations in Chicago and by 1953 it started selling insurance in Canada and AllState Insurance Company was established in Canada in 1964. In 1967, the company moved to Illinois from Chicago. The company started making the products more accessible to the customers by locating neighborhood agents and spreading them across the neighborhood.
In 1999, AllState started with a new and different business model creating single, exclusive and independent agents selling the products across the globe.
Allstate Corporation Promotion & Advertising Strategy:
The promotional and advertising strategy in the Allstate Corporation marketing mix is as follows:
AllState company, from the very beginning is known for its slogan “You're in good hands”. This slogan is one of the most recognized slogans in the entire America. In 1960s and 1970s, the brand began to promote via mass communication media like television, radio and print media. The brand endorsed by famous actor Ed Reimers for almost 22 years. By 2003, television commercial with the actor Dennis Haysbert were aired to promote the services provided by AllState. In 2010, AllState started with a promotion with Dean Winters as Mayhem with the main motive of promoting the brand with the slogan “Are you in good hands”. AllState also started a social media campaign for social awareness vai an 8 episodes web series. The web series depicts the common situations teens face with respect to driving. The series aimed at promoting interest and support in favour of responsible teen driving and road-safety in general. The firm is also associated with Sponsoring sports events like football, soccer etc.
Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of Allstate Corporation.
People:
Allstate has around 10,000 agency owners with 24, 000 licensed sales professional serving around 16 million customers. These professional financial representatives hired by the firm partners with the agencies and provide valuable service to the customers. AllState believes in investing in their resources work on them. AllState has initiated a program called Enery for Life (EFL), which is a day and a half energy management workshop to provide them an opportunity to learn making strategies to channelize their energy in the work. The program started in January 2013 where coaches from Allstate Home Office in Chicago for weeks started taking EFL program for 400 employees.
Process:
AllState provides a specialized local agent dedicated to its customer. This agent helps the customer to find discounts, understand your coverage, learn about the claims process, discover new tools and resources and so much more. This helps in building a personal relationship and makes the customer comfortable with the agent. Sometimes the agents go beyond their capacity and try to associate with the customers to understand their needs and become the part of the community. The firm also provides a 24/7 customer care support to help customers with any kind of issue.
Physical Evidence:
The customer can avail the services provided by AllState either by online mode or by offline mode. In offline mode, a designated agent will be helping the customer and once the service is being bought, all the evidences regarding the fulfillment of the terms and conditions will be handed over to the customer. The services can be availed online also in which the customer will be providing all the necessary details and the company in return will be sending them the acknowledgment documents which a customer can printout and upload again. AllState also provide its customers an online portal where every customer (whether applied online or offline) will be having an account to see the details of the services, making payments etc.
This completes the marketing mix of Allstate Corporation.
About Allstate Corporation:
The Allstate Corporation is the second largest personal insurance providers in the United States and the largest that is publicly held. Allstate was founded in April, 1931 as a subsidiary of Sears, Roebuck and Co., and was spun off in 1993.
Browse marketing strategy and 4Ps analysis of more brands similar to Allstate Corporation. The Marketing Mix & Strategy section covers 4Ps and 7Ps of more than 800 brands in 2 categories.
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