Celebrity endorsement is actually an effective marketing instrument However it

Celebrity endorsement is actually an effective

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Celebrity endorsement is actually an effective marketing instrument. However, it is very expensive. While Allstate spends substantial amounts of money on such expensive marketing activities, its competitors prefer finding the ways of optimizing the existing advertisement activities based on modern technologies. For example, GEICO is focused now on optimizing its videos which are promoted as ads before YouTube clips. The completion has addressed this
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ALLSTATE INSURANCE CORPORATION CASE ANALYSIS 45 problem by creating advertisements that only last 10 seconds. The rest of the time is dedicated to some funny explanations of the fact that the ad has ended so fast. Thus, if a customer decides not to turn off the ad after the first ten seconds, he or she will not be disappointed (Kfurtivo, 2015). This example illustrates how Allstate’s competitors analyze modern technologies and try to use them in their marketing strategies. At the same time, there are no signs of Allstate’s efforts in studying modern technologies in order to optimize marketing costs. Allstate’s leadership just use modern technologies as common communication and marketing channels without a deep investigation of their effectiveness and the ways of optimizing costs on their usage. High Staff Turnover. An outdated business model implies an absolute control of agencies over their employees. As a result, employees may feel smothered by their manager. Also, the company sets very high sales goals which are very hard to achieve for most of the new employees. As a result, a lot of newcomers cannot endure such stressful working conditions. It is undisputable that a high staff turnover rate should be considered as a weakness in the case of Allstate. According to the Allstate’s concept, insurance business requires personal contact with a customer which is intended to ensure a high level of customer loyalty. At the same time, a customer likely prefers communicating with one employee during his entire experience with an insurer. Thus, the process of switching insurance managers on a regular basis negatively affects customer loyalty of existing clients concluding that high turnover is an obvious weakness of the Allstate Corporation. Supply Chain. Despite the declared principles of the company’s supplier diversity program, some employees point out that it is less effective than supply programs of the key competitors. Most of the problems with the corporation’s supply chain are connected with the
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ALLSTATE INSURANCE CORPORATION CASE ANALYSIS 46 low level of its flexibility According to the information on its official website, the corporation offers an opportunity to build relationships with Allstate for businesses owned by (a) women, (b) veterans, (c) minorities, and (d) members of the gay, lesbian, transgender or bisexual communities. On one hand, this program aligns with modern business trends regarding diversity in business. On the other hand, signing contracts with business owned by some specific groups of people may deprive the company from signing contracts with other businesses that may provide more value to Allstate and its customers.
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