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FoxFire!Monday, April 6, 2009Allstate Names Names If only the "good hands" people could get their hands on that little gecko...
In a recent TV ad, Allstate did something I've not heard them do before -- they named names. Specifically, they named Geico. Most companies, especially established players like Allstate, would prefer not to mention competitors at all. I haven't done the research to verify this, but I'm guessing Geico's massive advertising investment is yielding some business from customers switching from Allstate. And it's quite an investment at that. Geico absolutely dumps money into TV and radio, and have done so for years. They're running what appears to be four separate campaigns simultaneously -- the gecko, the cavemen, the "money you could be saving," and a few straight-forward spots thrown in just to keep you on your toes. Allstate's been pushed far enough, and now they're pushing back by name. When do comparative ads work? That's a topic for a longer discussion (it usually favors the competitor with lower share, not the market leader), but the strategy here appears to be about disspelling impressions of "savings from switching." Allstate now claims that the average customer switching to Allstate from Geico saved money. We're more accustomed to hearing that claim the other way around. Who knows if they're comparing apples to apples regardless of who you're switching from or who you're switching to? (We would need Progressive to find that out.) The "savings" game is one filled with questionable claims, regardless of industry. But as a small business owner or manager, take interest in this battle of the bigs. Watch how they position themselves, alone and in regard to each other. Then look at your own market. Are there valid comparisons to make? How direct should you be in describing them? Maybe, just maybe, it's time to name names. Labels: advertising, comparisons, competitors, marketing
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