Supporting sporting events like the Sugar Bowl contributes to the growth of

Supporting sporting events like the sugar bowl

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social projects organized by the government or non-governmental organizations. Supporting sporting events like the Sugar Bowl contributes to the growth of brand recognition, thus
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ALLSTATE INSURANCE CORPORATION CASE ANALYSIS 48 bolstering the company’s brand value. Also, supporting social projects and charity programs aligns with the slogan “You are in Good Hands with Allstate”. Of course, there is no need in cancelling all the sponsorship programs of the company. There is a compelling reason to assume that allocating financial resources from some celebrity endorsements over to high profile sporting, charity and other socially responsible events would be consistent with the company’s slogan. Secondly, it seems logical to rethink the marketing strategy which is currently maintained by the company. The current marketing strategy is traditional and only differs slightly from the Allstate’s strategy which its marketers had been using for the last twenty years. The use of celebrities’ endorsement may be considered effective but it should be understood at what cost the recognition comes. By conducting extensive and specific marketing research in order to find out whether the cost of this course of action is justified by its effectiveness. An analysis of the company’s financials has shown that Allstate experiences significant problems in the effort of attracting new customers. While the retention of existing customers is managed effectively due to a high level of customer loyalty, it is hard for the company to attract customers. At the same time, Allstate’s marketers don’t currently consider the younger customer market segment in its marketing strategy. While young people prefer using the internet to make purchases and avoid personal communication, the company maintains its focus on agencies that communicate with each customer in a face-to-face manner. I would suggest that Allstate pay more attention to its various alternative sales and distribution channels, as well as vary its marketing activities. For example, it might be useful to launch some creative contests among customers for the best video about customer experience with Allstate. It is vital for the company to be closer to the target customer so that a relationship
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ALLSTATE INSURANCE CORPORATION CASE ANALYSIS 49 can be built. The use of modern communication channels in order to interact with its potential customers can aid in that endeavor. The third significant change which is essential for the company is launching a new business model. It could be argued that the current Allstate’s business model is outdated. First of all, it is sometimes ineffective while processing large amounts of data. Secondly, it is hierarchical and doesn’t encourage employees to take initiative and be innovative inhibiting organizational agility. Lastly, the interaction between managers and subordinates in an agency office across the country is largely dependent on the managers’ personality. Therefore, it is hard for the company to maintain a uniform corporate culture. Most of these problems can be solved by launching a
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