The strategy of coporate sponsorship is an approach that is used by Allstate

The strategy of coporate sponsorship is an approach

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The strategy of coporate sponsorship is an approach that is used by Allstate Insurance Corporation for several years. In general , six important sponsorship contracts which are worth mentioning: (1) naming rights to the Allstate Arena, (2) the National Collegiate Athletic Association men’s football, (3) Major League Soccer and the Mexican National Soccer team, (4) NASCAR Sprint Cup Series, (5) the Good Words Team, (6) and the Sugar Bowl (Allstate, 2016). All these sponsorship contracts have appeared to be effective in creating brand recognition for Allstate. The benefit being that with each sponsorship, the Allstate brand is mentioned and prominently featured for each event respectively. . Despite being relatively success by industry standards, the Allstate Insurance Corporation has faced substantial criticism during the last 10 years. Many of issues related with the insufficient customer focus in the firm were collected and presented in the book “From Good
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ALLSTATE INSURANCE CORPORATION CASE ANALYSIS 26 Hands to Boxing Gloves” written by Berardineli (2008). As he claims, the firm’s managers do all their best to reject customers’ claims by using various excuses. This accusation is supported part by Allstate Insurance Corporation being chosen as the worst insurer of the year by the American Association for Justice[ CITATION Ame08 \l 1033 ]. Jon Haber stated, “ While Allstate publicly touts its ‘good hands’ approach, it has instead privately instructed its agents to employ a ‘boxing gloves’ strategy against its policyholders” (Wemple, 2008). It can be claimed that, while financially Allstate Insurance Company is not currently in a crisis situation, there are some disturbing tendencies and indicators that may be considered as negative signals for Allstate. In particular, it is reasonable to quesuestion whether or not the firm’s famous slogan “You are In Good Hands with Allstate” is not as applicable now as it may have been in the past. Berardineli (2008) evidences the change in purpose by the fact that consulting company, McKinsey & Co. executed a strategy for Allstate Insurance Corporation that was aimed at maximizing profits by minimizing the money spent on customers’ claims[ CITATION Ame08 \l 1033 ]. While Allstate has allegedly changed its policy regarding claims’ procession, it continues to conduct marketing activities which carry the same message of customer focus, quality services and products, as well as Allstate Insurance Company’s dependability in comparison with the key rivals. Aside from marketing and sales strategies, it is also relevant to point out that Allstate Insurance Company is currently going through significant changes in its business and information and technology model. As previously stated, it hasn’t changed substantially since 1999. However, as Bloom (2015) claims, now Allstate Insurance Company tries to gradually transform from its traditional, hierarchical model to a cloud-centric business model. Interestingly,
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