@nickerickson88

Young Adults are consumed by countless responsibilities and social commitments*. School. Jobs. Pick-up basketball games. Movies. Concerts. They told us they perceive themselves to be the single busiest generation ever. They use social media to enable every aspect of their busy lives.** They told us they dont use their time to think about getting in a car accident or having their apartment robbed. They are preoccupied with balancing their hectic schedules and searching for new ways to connect. More than anything, Young Adults value their time. Young Adults told us State Farm is outdated, expensive and a hassle. They told us the insurance agent is unnecessary, an extra complication, and an added built-in cost. Circle Advertisings campaign addresses these misconceptions by positioning State Farm as: A value and a convenience, saving Young Adults time. Competent users of social media, meeting Young Adults where Young Adults meet. The pre-eminent insurance agent network, freeing Young Adults to do their thing. In the pages ahead we will present to you the strategies and programs that reinforce State Farms positioning to Young Adults. You will see that at Circle we dont just tell you what we will do, we show you what we did.

Circle Advertisings 53 members, hired in September, presented the 4th Annual Warlocks and Witches Ball in October. This served as our initial team-building exercise, where we conducted our first wave of primary research among Young Adults to gain insights into their attitudes about insurance. Our three-month research initiative culminated on February 4 in a Chapman sound stage with Rompe, a five-hour event where we translated our research into key campaign insights leading to our creative Big Idea. Our Big Idea rationalizes a logical, researchbased advertising strategy, media plan, promotional program, PR calendar, and creative executions. Through implementation, we tested two of our signature events: the Get Covered promotion and the Next Breath PR event. Again, we dont just tell you what we will do; we show you what we did. Every Circle Advertising member is an expert in social media. When you hire Circle, you inject social media into your marketing DNA. When a Young Adult experiences an unfortunate situation that requires an insurance solution, it is a State Farm agent who steps in and takes charge, Freeing Young Adults to continue with their busy lives. Feel Free shows State Farm not only insures the cars, laptops, TVs and bikes of Young Adults, it insures what they value most. Their time.

*source: 60 Minutes The Millennials are coming. **source: CBS - The Age of the Millennials.

we set out to understand Young Adults...

OBJECTIvEs
We set and executed five research objectives to guide our campaign and ultimately build a lasting relationship between Young Adults and State Farm.
Recognize Independent Young Adults current views of Auto and Renters insurance Analyze State Farms top competitors in the Auto insurance industry Discover profitable approaches to reach our demographic effectively Test various State Farm brand identities for recognition, recall and reinforcement of brand positioning Attract and maintain Independent Young Adults

We will correct Young Adults misconceptions and leverage the Agent network

Largest market share in the Auto insurance industry Agent-based business model Long history of growth and success

Reposition State Farm to Young Adults Leverage State Farms Agent benefits Exploit social media Target Hispanics

Disproportionately low penetration of Young Adult market Ignorance of agent benefits Inconsistent advertising Social media

Multiple agent-based models: Allstate, Nationwide, Farmers Young Adult preferences for online communication Highly saturated insurance market Young Adults perception that agent based model is outdated

...and found out they dont understand you

research impressions
man on the street interviews
california hotspots college campuses

professional interviews events

TOTAL SURVEYS
general insight surveys parent surveys independent young adult surveys psychographic surveys hispanic surveys

warlocks & witches attendees get covered attendees next breath attendees

Initial research surveys and impressions were conducted at the Warlocks and Witchs Ball

diaries
media diaries agent diaries

focus groups

Branding focus group that provided insight on the effectiveness of State Farms messaging and recall versus its competitors

6 different types of research gave us over 6,000 research impressions and led us to key insights into our target demographics
Before we could better Young Adults lives by being there, we wanted to understand how to turn our audience into brand advocates. We found out where, when and how to reach them in the most relevant and exciting way. Research diaries granted us insight on State Farms current physical work environment. Our media diaries revealed the vast number of messaging vehicles our markets are exposed to everyday. We utilized the high turn out at our three events to approach our audiences in a non-intrusive way. Professional interviews with auto collision specialists, social media experts, lawyers and the director for the Stanford Institute for Economic Policy gave us insights on Young Adults in relation to insurance.

Man on the Street Interviews at UNLV that provided valuable qualitative research insights

we found 3 different markets...

We split Young Adults into three audiences to tailor our approach to each segment. This allowed us to place our ads strategically, plan events and choose partnerships that are relevant to their lives.

PrImary - IndEPEndEnTs
There are 17 million Independents between the ages of 18 and 25 in the US that we can align with. They are extremely pricesensitive and for the first time are purchasing insurance without their parents assistance. They crave convenience, which causes them to prefer online models.

of Independents live in an off-campus apartment or house (without a parent or guardian)

of Independents have the same insurance provider as their parents or guardians

of Independents have State Farm insurance

sECOndary: TransITIOnal
Transitionals are in between dependence and independence. This movement provides the perfect opportunity to engage our market at a time when they want to be considered adults.
of Transitionals regard their family as the most trusted resource when it comes to choosing an insurance company of Transitionals said price was one of the determining factors when choosing an insurance company of Transitionals said having an insurance agent would influence their final decision

Young Adults look for three leading factors in insurance:

want Good Rates/Prices

TErTIary: HIsPanIC
Our Hispanic target is as wellversed in pop culture as any group in the US. Their definition of culture revolves around work, life and play. They also display a higher usage of mobile Internet and cell phone features, allowing us to connect to them through fresh initiatives.

want their claims paid fairly and promptly

want honest and trustworthy representatives

of surveyed Hispanics spoke both English and Spanish fluently

more likely to download digitial content than the average US adult internet user*

of the total online population is made up of Hispanics and is expanding more than 50% faster than the overall US online population*

* U.S. Demographics are Changing Are Your Marketing Plans Ready? study by The Nielsen Company

...with three different barriers

There are three barriers separating State Farm from connecting with Young Adults. Understanding and overcoming these barriers will allow State Farm to communicate its message effectively. This is a necessary step in developing our strategy.

GEnEraTIOnal dIsCOnnECT
Young Adults experience higher brand bombardment than any generation before them. Over-saturation of the market has made them immune to messaging, especially in brands they cite as irrelevant. With brands that engage them however, brand loyalty is extremely high. State Farm is not this brand. 11 out of 12 Young Adults correctly identified the State Farm logo Of those 11, less than half could recite the tagline

aGEnT mIsCOnCEPTIOn
To Young Adults, Agents seem outdated and boring. They view Agents as pushy and associate them with car salesmen. Presenting the value that an Agent offers will motivate Young Adults to switch providers. I wouldnt trust the Agent, just because Id know hed be trying to sell me stuff Female, 20, Focus Group Participant I could have gone down there to talk to someone, but that would have been a waste of time, Female, 22, Focus Group Participant on talking with a representative after an accident While the majority of Young Adults do not see the benefits, those with an Agent express deep appreciation for their services. Translating this to the rest of our market is key to creating incentive to switch providers. I really like having an Agent, they especially helped me when I got in a wreck and was in a time crunch. Female, 22, Man on the Street Interview

lOw InvOlvEmEnT mIndsET

Insurance ranks low on the Young Adult priority list, creating another barrier for State Farm. Their limited knowledge of insurance keeps them from discussing it, making it difficult to engage them. I dont think car insurance has ever come up in a conversation with my friends Male, 21, Brand Awareness Focus Group

* Source: http://www.statefarm.com

to be effective, timing is everything

After breaking through the barriers the second phase addresses the Occasions of Opportunity. These are the five periods in which Independents, Transitionals and Hispanics are motivated to think about, interact and even switch insurance providers. All executions and messaging will hit at least one of the following Occasions of Opportunity.

PurCHasInG a Car
Purchasing a high-ticket item, such as a car, immediately brings insurance into Young Adults minds. By focusing on competitive pricing and the personal touch of an Agent, State Farm can generate interest for their services.

mOvInG (Off CamPus/OuT Of THE HOusE)

When moving out on their own, Young Adults mindsets transition from dependent to independent as they begin to realize the value of material property. This is an Occasion of Opportunity for State Farm to better lives by providing peace of mind in the form of Renters insurance.

GraduaTIOn
This is a generation of aspiration. Whether heading into college or the professional world, fiscal success and responsibility dominate their consciousness. State Farm has an opportunity to assist Young Adults as they take the next step.

aCCIdEnTs
Fifty-six percent of Young Adults said they primarily think about insurance after getting into an accident. State Farm can reinforce the value of the Agent by emphasizing the time an Agent saves.

dIssaTIsfaCTIOn wITH COmPETITOrs

As individuals experience dissatisfaction with their providers, a key Occasion of Opportunity opens for State Farm. Available and helpful Agents motivate Young Adults to switch to State Farm.

finding our place and investing in ideas

PERCEPTION MAP
(where we want to be) We analyzed the industry and found a lucrative position that State Farm can own.

RETURN ON IDEA
(3yr long term) The current ROI model doesnt take into account the full make-up of a brand. We developed a framework to measure the return on idea.

BRAND OBJECTIVES

18%

10%

8%

projected percentage current percentage

top of mind

relevancy

perception of quality

92%

45%

22%
19% 16%
projected percentage current percentage

difference

awareness

being there

trust

compentency

We will reposition State Farm as valuable and convenient. The valuable and convenient position is currently vacant, allowing State Farm to capture first-mover advantages. Repositioning State Farm allows it to become more appealing to Young Adults and differentiates it from other agent-based competitors, such as Allstate.

A brand is no longer what we say or do, but what people think and say about us. Goals must be meaningful to our audience, in their terms, not ours. Because the insurance industry is a slow yielding industry where significant monetary returns cant be expected within a single year, we developed a framework that measures long-term brand value.

understanding conventions...
Before developing our own ideas, it was imperative to understand industry conventions and market perceptions. Without a complete understanding of what already exists, it was impossible to break these norms and establish resonant messaging. We developed a process called Rompe (pronounced: rome-peh) that allowed us to understand trends and evaluate creative executions, promotions, public relations initiatives and media strategies in the marketplace. Industry analysis and audience research was presented to give weight to our insights. Rompe, from the Spanish word to break, serves as our catalyst in understanding trends and norms that help us discover how to differentiate State Farm from its competitors.

Information on the insurance industry as well as Young Adults was presented to find correlations, niche markets, insights and initiatives that have yet to be explored. As a part of the process, each of our departments displayed its findings on boards assembled in a large room. Our research included: The history and core principles of State Farm Insights into Young Adults mind sets Creative trends in insurance advertising Artistic trends on a global scale Corporate responsibility campaigns Emerging media A yearlong calendar of nationwide events

...and breaking them

Our team spent 90 minutes walking through the exhibits taking notes, analyzing and discussing findings. This free-form environment fostered insights that guided the direction of our entire campaign, culminating in a three-day process leading up to our Big Idea.

Key findings included:

State Farm is a company that betters peoples lives by being there Animated characters or live-action spokespeople ultimately alter the Agent Online-based companies utilize gimmicks and superhero personalities to make up for the lack of a timesaving Agent Altering the Agent is untruthful and contrary to State Farms beliefs; we must celebrate the Agent for what they do We also discovered there were three basic ideas that drove advertising executions in the insurance industry: Altering reality Altering the Agent Celebrating reality We determined the best approach was to celebrate real-life situations and the Agent who enables you to experience them. State Farms strength, as a real-life company with real-life values, should be celebrated and not compromised.

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Translating Our Insights Into Executions

Brand IdEa
Bettering peoples lives by being there.

BIG IdEa
fEEl frEE
The Now What? campaign perfectly illustrated Young Adults reacting to property damage scenarios, leaving them in a state of panic and uncertainty. We have coined this gasp, the Inhale Moment. The moment after the Inhale is the key to communicating our message to Young Adults. This is the moment that State Farm customers count on their Agent. The moment when they realize their time is not compromised. The moment they Feel Free.

CrEaTIvE vIsIOn
sTaTE farm aGEnTs EnaBlE yOu TO ExHalE, and Carry On. Inhale moments are universally overwhelming. State Farm agents make a difference in peoples lives by offering support and saving time, allowing customers to exhale and carry on with their lives. It is this vision that manifests the Feel Free moment in a practical way.

TOnE
The tone is lighthearted, empathetic and assuring. This remains consistent with the core principles of State Farm and embodies the message of Feel Free.

ExECuTIOns
All executions will seamlessly integrate into the above ideas and the tag line, Feel Free.

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strengthening State Farms relationship with Young Adults

It is important to understand the stage of the relationship State Farm shares with Young Adults. There are five stages in the State Farm/ Young Adult relationship, each with tailored executions to maximize effectiveness.

InTrOduCTIOn
Create interest and build familiarity with the Feel Free campaign.

rEInfOrCInG valuE
Demonstrate specific benefits of State Farm that empower customers to Feel Free.

InCrEasE awarEnEss
Build a presence, create brand advocates and spread the Feel Free message.

affIrmaTIOn
Emphasize post-purchase services and reward State Farm advocates for spreading Feel Free.

POsITIOnInG
Define the value of State Farm services, participate in the Feel Free conversation and inform potential customers of the benefits of choosing State Farm.

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as media habits evolve, so must we

It is no longer a matter of what brands can do, but what they should do. Media can no longer be defined as traditional or non-traditional, but as every interaction between the brand and its audience*. In order to re-frame our perspective in a way that encapsulates and facilitates every interaction between State Farm and Young Adults, we will approach our planning with four media categories.

PaId
Anything we purchase, including traditional advertising. Vehicles include: television, radio, print, outdoor and digital. :30 spot - ABC, ESPN, Galavision, Univision Print - Allure, SI, Motorcyclist Online - Yahoo! Telemundo, Hulu takeovers, Keywords & Paid local search

EarnEd
Anything that gives our audience an opportunity to invite us into their lives, making State Farm a topic of conversation through word-of-mouth and PR endeavors. Viral Video Next Breath World Cup - Kick-Off

OwnEd
Any existing touch point we have, such as our agents, offices and Web sites that enhance and reinforce our message. It is usually overlooked and often turns out to be the most cost-effective. ex. buildings, shopping bags, fleet Branded postage Big Red Couch Collision Card

CrEaTEd
Any new media vehicles that have been designed and created specifically by us to deliver our message uniquely. ex. spectaculars, phone applications, branded video games Parking lot takeover - major sporting events and concerts iPhone Game - Go, Play, Win! Guerilla Executions

* Source: TBWA/MediaArtsLab

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media and research: a winning pair

After evaluating the Barriers, Occasions of Opportunity and stages of Brand Awareness, we evaluated the media vehicles that would best fit into each stage of the campaign.

We will use paid media to support the introduction phase of the brand cycle by creating brand interest and building familiarity.

We will use earned media to reach Young Adults and build a presence and brand advocates.

We will employ owned media to translate the positioning phase of the brand cycle to Young Adults and define State Farms value.

We will reinforce value using created media because it demonstrates State Farms service benefits.

We will use created media to place emphasis on post-purchase services and reward State Farm advocates.

14

To respect and refresh State Farms established style, our Creative Strategy will encompass the following elements to deliver all messaging: We will connect the perception of value with State Farm Agents by positioning them as time savers. We will remain effective and relevant to Young Adults by creating executions that are artful, visually arresting and on their terms. We will increase retention and pass-along rates by adding value beyond the medium itself using take-aways. We will always portray Agents as trusted, helpful and knowledgeable. We will create executions that are cross-cultural, respecting the assimmilation of our Hispanic market. We will maintain the substantiality of our message by placing the Feel Free logo in a three dimensional environment and reflect the Feel Free moment by having a wisp move fluidly through the logo. With these elements combined with the previously presented guides, we are confident that our executions will maximize effectiveness for both the messaging of the Feel Free campaign and its successful reception.

15

using well-established mediums to reach our market

PrInT ad dInnEr
Our print ads portray the seamless transition from the Inhale to Exhale moment as the Young Adult is empowered to carry on from setbacks in her day. She experiences the Feel Free moment when she realizes her Agent is there and she can enjoy her evening.

PrInT ad rOadTrIP
A CD takeaway inserted in magazines gives the owner 25 free song downloads from FeelFree.com.

radIO fEEl frEE wEEKEnd

To create brand presence on the radio, State Farm will sponsor three days of commercial-free radio in 18 major markets throughout the entire year.

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kicking off our campaign

This spot will launch at the beginning of the World Cup in June and help to build awarness for the Feel Free campaign. It will air on both ESPN and Univision, capturing our Independent and Hispanic markets. The spot will run from June 2010 until March 2011 with a pulsing strategy that alternates air time with our radio spots.

:30 second spot -between events inOn Carry his day The Young Adults seamless transition
establishes the idea of constant motion, reinforcing the value of a State Farm Agent as a time saver. By running the commercial in reverse, we shift the focus from his accident to the Feel Free moment that follows. He is able to live life normally because his Agent takes care of the accident.

Male steps out of undamaged car

Walks away from car in backwards motion

Keys fly from his hand into another hand

Walks backwards into a sushi bar

Sits down with his date

Talks with her over a finished meal

Eats sushi at the table

Waves and walks away from table backwards

Walks out of restaurant

Jogs onto a soccer field

Juggles soccer the soccer ball

Dribbles backwards down the field

Appears in front of an office

Enters a conference room full of businesspeople

Papers fly from the table into his arms

Walks by his car, now damaged

Appears worried, seeing his car

Gives his keys to the agent and smiles

The design of our :30 second spot will give the illusion that each scene is placed directly next to each other. The Young Adults motion is uninterrupted as he transitions from scene to scene. The production design simulates the idea that he can move from one event to another without stopping to deal with an unexpected event.

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making the online connection...

Hulu PaGE TaKE OvEr
A State Farm Agent will enter the screen and invite the viewer to watch their show commercialfree. The Agent interacts with the website, pulling away the ad to allow the show to continue.

GOOGlE adwOrds
Insurance related keywords will place our site at the top of the online search. Twitter testimonials will replace standard call-to-actions.

Cars.COm HOmEPaGE TaKEOvEr

A webpage takeover will load a site that appears to be destroyed. Users will watch the site piece itself back together, followed by the Feel Free logo appearing on the page.

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...and bringing it home

TransIT audIO POsTErs

Underground transit systems will feature audio posters allowing Young Adults to plug-in their headphones and enjoy relaxing natural sounds and music before their busy commute.

Bus sHElTEr
Bus shelter takeovers will generate brand experience on public transportation. Those waiting to board the bus will experience the Feel Free message, illustrated by the big red couch decal.

OuTdOOr BIllBOard GamE TImE

The ad portrays the seamless transition from the Inhale to the Exhale moment as our Young Adult is empowered to carry on from his unforeseen event. This billboard is one of two that will be used. One will mirror the magazine print ad and the other will create brand awareness, using State Farm red and the Feel Free logo.

Bus wraP/InTErIOr TaKE-OvEr

(Not Pictured) The bus wrap will depict a damaged car and a helpful Agent opening the doors of a bus, separating passengers from the accident. For non-drivers, the interior bus takeover will use vinyls to create an apartment-like setting featuring items that are covered by Renters insurance.

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its been there, whether you knew it or not

Name: Address:

THEIR INFO
____________ ___

Policy Number:
____ ___ ___

____

______________

Drivers Licen State/License

____

____

se: Place:

____________

Persons invo

____________

___

____

All witnesse

s: THEIR INFO
____ ____

____

lved in accid

ent:

____

___

Name: John ____________ Smith ___ Policy Number: Y 3547961 Address: 421 ____________ ___ ____ Grand __ St. Orange, CA ____ ____ 92867_ Drivers Licen ce: D9801359 ______________ _ State/License Place: CA/G IW868 ___ ____________ Persons invo lved in accid ____ ent:

YOUR INFO

YOUR INFO
____

fEEl frEE wEBsITE

FeelFree.com will include information on our initiatives, contests and will link to our social media networks and the State Farm homepage.

Name:

_______________

___ Policy Number:

_______________

er: Y 3547961

Address:

_______________

____ ___ Policy Number: Y 3547961 All witn Smith Name: Johnesse _______________ _______________ s: ____ __ Address: 421 Grand______92867 St. Orange, CA __ _______________ _

Drivers License:

_______________

Drivers Licence: D9801359 _______________ State/License Place: CA/GIW868 _______________ Persons involved in accident:
___
_______________

State/License Place: _______________ Agen Name/Nu mber: Alex Personst involved in accident: Diez ______

Name: John All witnesses: Smit ____________ h ___ _______________ Policy Number: Y 3547961 ______________ Address:421 _ Grand St. Oran ____ ____ ge, CA 9286 ____ ___ 7 Drivers Licen se: D9801359 ______________ State/License
_

______ _______________

All witnesses:
_______________

Place: CA/G

Y 3547961

____________

IW868

___

Agent Name/Number: Alex Diez _______________ Name: John Smith _______________ Policy Number: Y 3547961 _______________

Address:421 Grand St. Orange, CA 92867 _______________ Drivers License: D9801359 _______________

Collision Card

COllIsIOn Cards

State/License Place: CA/GIW868 _______________

Collision Card

Collision Cards will allow State Farm customers to Feel Free from worry, knowing they have all the necessary information to exchange after an accident.

COllaTEral rEdEsIGn
(not pictured) All collateral materials will be redesigned to match the Feel Free campaign.

GrEETInG Cards

State Farm Agents will send greeting cards on special occasions to their customers. For example:

BIG rEd COuCH 20

Sitting areas in State Farm offices will be supplemented with red, branded couches. These allow the Agents to build a more comfortable and relaxing environment in their office, mirroring the support and comfort an Agent provides.

Whole wide world meet Austin. Austin, meet the whole wide world. Take some time to get to know each other.

if it doesnt exist, well make it

GO. Play. wIn.
TODAY,
Go. Play. Win. is an iPhone game that prompts users to take pictures of State Farm logos encountered in everyday life. This interaction encourages them to visit various State Farm offices where they can find clues to win a variety of prizes.

552-558

parking is on us

sms PlaTfOrm ParKInG lOT TaKE-OvEr

State Farm will utilize major sporting events and concerts for their parking lot take-over initiative. They will buy out the entire lot, covering the cost of parking for attendees. Instead of a traditional parking voucher, they will receive a State Farm branded free parking pass for the entire day. Example: Parking lot takeover of Lady Gaga concert, MLB Playoff games and music festivals. (not pictured) State Farm customers can send a text to a specific number, which will return a text with their policy information.

laPTOP vInyl sTICKEr

Copy: Sometimes the best office work is done outside the office so Renters insurance can cover your laptop ANYWHERE you go.

BIKE TIrE sPOKE InsErT

Copy: Renters insurance covers your bike everywhere you go. So go somewhere.

BrandEd PaCKaGInG TaPE

Branded packaging tape will act as a reminder of our brand at one of the Occasions of Opportunity, moving.

44 USA
For about the price of 4 STAMPS, you could add Renters Insurance

auTO KIT
An auto kit includes everything a Young Adult would need if something were to happen to their car.

mOvE-In KIT
A move-in kit will provide commonly forgotten items used during the moving process for our Transitional market.

BrandEd usPs sTamPs

State Farm branded stamps remind our market of the low cost of Renters insurance.

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giving the gift of giving

nExT BrEaTH CamPaIGn

Next Breath supplements the Feel Free campaign by empowering Young Adults to pass on the Feel Free moment through giving. Next Breaths social media and promotional events enable participants to emulate State Farm values: mutual trust, quality and being there. Next Breath will launch its social media campaign after the initial launch of Feel Free. After you experience the Inhale and Exhale moment, there is always the Next Breath.

EvEnT
We tested our Next Breath event and chose to benefit UNICEF. It featured three expressions of feeling free: art, music, and writing. ART - Local artists donated pieces and made them available for purchase with proceeds going to UNICEF MUSIC - A live karaoke band allowed attendees to let go of inhibitions while singing on stage. WRITING - There were two boards placed at the entrance of the event. One was titled, What makes you Stressed? while the other read What makes you Feel Free? Attendees wrote on the board to share their experiences with each other. To further publicize the event, live tweeting was displayed on a projector enticing attendees to tweet and share the experience with their online communities with the hashtag #nextbreath. The incredible success of the event determined that it could be rolled out nationally in support for UNICEF.

nExT BrEaTH OBJECTIvEs

Develop a public service campaign communicated through social media Reach 150,000 Young Adults through events and social media efforts Gather awareness and support for local and global charities

rEsEarCH Of yOunG adulTs*

prefer to contribute to charities focused on child wellbeing and disaster relief

prefer to attend a concert instead of a sporting event, gala, carnvial or others

prefer to volunteer for a charity

would not donate.

prefer to donate in other ways

prefer to donate money

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*based on a psychographic survey of 533 independents

social media is our fort

wE arE TraInEd
Circle Advertising incorporates talent from a spectrum of majors at Chapman University, the most dominant being Public Relations and Advertising (PRA). Internet Communications, a required course of PRA is dedicated to the study of social media and its effects on marketing. Required reading includes top selling social media books: Twitterville: How Businesses Can Thrive in the New Global Neighborhoods Naked Conversations: How Blogs are Changing the Way Businesses Talk with Customers Groundswell: Winning in a World Transformed by Social Technologies

wE arE awarE
In past campaigns we have incorporated Facebook, YouTube, and Blogs yielding incredible results. Feel Free gave us the perfect opportunity to use these mediums in conjunction with Twitter. We designated a Twitter Task Force to research and educate the team on Twitter and maximize its potential with tools such as Tweetdeck. We observed conversations that involved State Farm directly (@ statefarm) as well as indirectly (tweets that included #statefarm or state farm). We found three influential insights: Many people unknowingly gave positive testimonials regarding their experiences with State Farm @StateFarm created organic conversation with followers regarding customer service and initiatives De-marketing campaigns were initiated on the grassroots level with twitters such as Angela Russell (@State_Farm_Sucks) and Larry Chiang (@larrychiang)

Professional Interview with social media expert and author of Trust Agents, Chris Brogan

wE arE aCTIvE
We used twitter to inform followers of the progress of Circle Advertising (#chapmanpra, #nsac) and promoted our events by linking to our Facebook event pages. We also developed hash tag channels within the #nsac channel to communicate internally. Circle Advertising dominated the conversation that existed in the #NSAC channel by maintaining over 80% of the tweets from October 2009 March 2010. Near the completion of this book, the conversation eventually spread to NSAC participants across the country and created conversation. Proof of our influential strategy with social media was given to us when schools across the nation began to implement Circle Advertising-created @LarryChiang hash tags and jargon into their conversations.
@State_Farm_Sucks

Case studies and strategies featured in these books were used collectively to shape the curriculum. Outside of the classroom Circle Advertising attended two major events that featured experts on social media. A presentation by Seth Godin, author of Linchpin and an interview with Chris Brogan, author of Trust Agents, These three relevant insights became integral when shaping our provided valuable insight into the ever-changing realm of social media. social media objectives for Feel Free.

On Twitter, word can spread faster than wildfire. Companies no longer have the option of ignoring the conversation. Twitterville shift the focus from products to relationships. Naked Conversations Our job is to connect to people, to interact with them in a way that leaves them better than we found them, more able to get where theyd like to go. - Linchpin Weve taken what weve learned from our years as digital nativesto help you better understand the mind-set required to match your business needs. Trust Agents People use technologies to get the things they need from each other, rather than from traditional institutions. - Groundswell

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now its yours

Next Breath will serve as the catalyst in creating new online relationships between State Farm and Young Adults while spreading the Feel Free message. Next Breath will use these four popular social media tools to maximize the reach of the campaign: Facebook Flickr YouTube Twitter

sTaTE farms yOuTuBE CHannEl

The State Farm YouTube Channel will not only be a destination for current commercials, it will be the resource for everything State Farm. This includes all of the videos for Next Breath as well as promotional contests. The mixture of video uploads will work in unison to share the Feel Free idea. Videos include: Next Breath Events State Farm Philanthropic Events World Cup Promotion Kick-Off

Young Adults want to connect with each other and with brands that have something worth saying. It is important to stay connected and engage conversation in new and relevant ways.

InITIaTIvEs:
THE GIvE away GIvEaway!
Utilizing Twitter, State Farm will announce their presence online. Followers of @StateFarm will be randomly selected to have $1000 donated to a charity of their choice. A new follower will be picked everyday for a year. Followers qualify by including their Feel Free moment and tweeting at @StateFarm and #FeelFree. Using the #NextBreath hashtag, @StateFarm will announce contest winners and charities.

suPPOrT:
The social media Taskforce (national level)
A division within the Public Relations team called the Social Media Taskforce will maintain accounts and keep tabs on trends in the world of social media, ensuring that State Farm remains ahead of the curve.

nExT BrEaTH fanPaGE

Facebook will be utilized in order to help promote the national rollout of the Next Breath event. State Farm will participate in conversations to share their ever-present philanthropy efforts and post opportunities for fans to volunteer at upcoming events. Links to all charities that received $1000 from The Give Away Giveaway will be posted, as well as the names of the donors.

@sfagent Twitter accounts (local level)

The Social Media Taskforce will train State Farm agents on Twitter, ensuring they are competent and able to converse with Young Adults. Implementing Twitter will redefine how the industry utilizes social media to connect to Young Adults. Communicating in a public forum increases Young Adults opinion of trust and transparency of a brand. Below are some examples of typical conversations that would benefit followers: Answering basic insurance questions Local State Farm event information Discounts that State Farm offers Marketing materials will feature the Agents Twitter handle so customers can follow local conversations. Ex: @SFAgent_JJameson

nExT BrEaTH flICKr PaGE

The popular photo gallery site will feature a Next Breath Flickr page. This gives the Next Breath community a place to share their experiences from Next Breath events. The gallery will feature volunteers and attendees photos and stories from the events.

24

making the best of a bad situation

Strategy
Feel Free brings State Farm into communities by extending its reach through live-event promotions. These events break all three barriers and provide a reprieve from the busy lives that Young Adults lead. Each event has been carefully considered to target Independents, Transitionals and Hispanics in various locations.

get Covered
Get Covered incorporates situational sets, a paint splatter station and a dance party to evoke the Feel Free moment. It builds a platform for our audience to relate to, breaking the barrier of Generational Disconnect. It also breaks the barrier of Low Involvement by encouraging our audience to take part in staged accidental sets that remind them of the need for insurance. Get Covered targets Transitionals and Independents in places they hang out: campuses and local hot spots. We executed Get Covered with two elements that contributed to the Feel Free moment:

Situations
There were three sets: a robbed apartment, a car with a shattered window and a bike without wheels. Young Adults experienced the Inhale moment as they interacted with these situations. They were excited to participate as each set was designed to look like a photo shoot. During the national rollout, photos from the sets will be posted online and voted on, with the first place photo becoming a print ad.

Paint Splatter dance Party

As participants transitioned from the situations to the dance party, they were enthusiastic about experiencing the Exhale moment at the paint splatter station. It was a space where they could let go of their inhibitions and carry on to the rest of the event. During the event, participants were given campaign branded shirts and sunglasses. As a partnership, Red Bull provided refreshments for event participants.

25

finding new friends...

THE wOrK ExCHanGE TEam
The Work Exchange Team trains volunteers to work at music festivals across the nation. State Farm will sponsor a concert at each festival for the volunteers that celebrates the work theyve done, evoking the Feel Free moment. We will emphasize festivals that run from May to June, hitting our Occasions of Opportunity of Graduation and Moving Out.

wOrld CuP
The World Cup Contest motivates users to express their hobbies and passions by re-enacting their favorite moments in soccer history. Videos of these moments will be posted on the State Farm Youtube channel. Viewer votes will determine the winner of an all-inclusive trip to the World Cup. This promotion makes State Farm branded content relevant to the market and breaks the barrier of Generational Disconnect.

sPOnsOrs & ParTnErsHIPs

Carfax
State Farm will partner with CARFAX to create a Common Issues tab, which will include pros and cons of specific car models. This partnership builds State Farms brand value and hits the Occasion of Opportunity of Purchasing a Car.

IKEa ParTnErsHIP
A partnership with Ikea will increase awareness of Renters insurance and will hit the Occasion of Opportunity of Moving Out. As a copromotion, we will set up our staged accidental sets from Get Covered in major cities using Ikea products. Expanding on Ikeas current initiative, when people take the furniture from the set, the product description will be revealed. Each piece of Ikea furniture will have a traced outline on the floor identifying the name and price of the product in relation to the benefits of Renters insurance.

ZInGO dEsIGnaTEd drIvErs

Zingo Designated Drivers will motorbike to the State Farm customer, put their bikes in the customers trunk and drive them home. We will partner with Zingo to celebrate the responsible friend the designated driver by giving them a night off to Feel Free with their friends and know everyone has a safe ride home. The partnership will begin in the month of March to hit the Occasion of Opportunity of Graduation, as this is when people begin to think about their next step. Since this program doesnt reach all of our targeted cities, we plan to work with them to expand nationally.

Hulu.COm If I Can drEam

If I Can Dream is an online reality show, streamed by Hulu, which follows the stories of five 20 25 year-old actors as they chase their dreams of stardom in Hollywood. State Farm will support their endeavors by sponsoring acting coaches for each house member. If one of the participants doesnt perform well at a casting, State Farm will sponsor another casting call. By presenting the agent as coach, someone that is there, we break the barrier of Agent Misconception.

26

...and hitting the road

Get Covered will be implemented in parking lots of large music venues and university parking structures nationwide. It will be organized by Everything Events & Entertainment beginning June 2010. Everything Events previous clients include: Disney, Charles Schwab, GEICO, NFL, Gatorade and many more. Red Bull, a partner of the signature event, will utilize its established infrastructure with its street teams to promote the event in each of the targeted cities, concentrating on college campuses and local hot spots that attract independents. The first event will take place in New York during the first week of June. Next Breath regional events will be executed in the same cities as Get Covered but will commence in 2011. Each event will be planned and executed by a passionate State Farm agent team leader who will receive help from volunteer street teams, drawn from nationwide charities.
SALT LAKE CITY 181,000 Westminster BYU Utah Utah State
twitter

PR & promo timeline

get covered WORK EXCHANGE TEAM WORLD CUP IKEA If I ca n Dream ca rf ax zingo

May

JUNE

Ju ly

AUG.

SEPT.

OCT.

NOV.

DEC.

JAN.

FEB.

Mar.

APRIL

MAY

next brea th unisef blogger news next breat h flickr facebook

COLUMBUS 754,000 Ohio State MINNEAPOLIS 382,000 UMinnesota

MADISON 231,000 UWisconsin St. Paul INDIANAPOLIS 798,000 UIndianpolias PHILIDELPHIA 1,540.000 Temple UPenn Penn State HARTFORD 124,000 Yale Trinity Uhartford

national roll out map

PORTLAND 582,000 Portland State Reed Lewis and Clark

CHICAGO 2,835,000 UIllinois

BOSTON 620,000 BC, BU Emerson Harvard Northeastern MIT Tufts NEW YORK 8.300.000 NYU Barnard WASHINGTON D.C 591,000 George Washington Georgetown American Howard LAS VEGAS 607,000 UNLV CHARLOTTE 687,000 Duke, Johnson and Wales UNC Queens Kings MIAMI 413,000 UMiami BALTIMORE 636,000 Johns Hopkins UBaltimore

SAN FRANCISCO 808,000 USF SFSU Berkeley

LOS ANGELES 3,849,000 Chapman UCLA USC Loyola Marymount

PHEONIX 132,000 ASU

DENVER 598,000 Boulder UDenver

DALLAS 1,M279,000 SMU AUSTIN 757,000 UTexas St. Edwards MEMPHIS 669,000 Rhodes UMemphis

ATLANTA 536,000 Emory Georgia, Tech Spelman

27

2010-2011 EVENTS
PAID PRINT magazine-(OP4C) magazine-insert ONLINE homepage takeover hulu show sponsorship keywords & paid local search OOH billboard building corner billboard transit audio poster transit interior poster bus shelter bus wrap TELEVISION :30spot television RADIO 3-day station sponsorship EARNED twitter: #feelfree facebook fan page viral video PR NEXT BREATH next breath event next breath twitter account
The Great Giveaway Giveaway

June 10 July 10 Aug. 10 May 10 Sept. 10 Oct. 10 3 10 17 24 7 14 21 28 5 12 19 26 2 9 16 23 30 6 13 20 27 4 11 18 25 1

Nov. 10 Jan. 11 Feb. 11 March 11 April 11 Dec. 10 8 15 22 29 6 13 20 27 3 10 17 24 31 7 14 21 28 7 14 21 28 4 11 18 25

May 11 2 9 16 23

TOTAL impressions production

/000,000 /000 ($)

Graduation

Memorial 4th of July Day

World Cup

Labor Day Halloween Thanksgiving

Christmas Hanukkah

MLK Jr. Day

March Madness

Mothers Day

cost
/000,000 ($)

next breath fan page next breath flickr foursquare badge PROMOTIONAL EVENTS get covered work exchange team FIFA kick-off contest carfax sponsorship zingo sponsorship ikea spectacular if I can dream sponsorship OWNED collision card feel free website big red couch collateral redesign greeting cards CREATED branded packing tape vehicle kit move-in kit Go. Play. Win. parking lot take-over SMS platform spectaculars guerilla promotional items branded stamps

28

10,517.4 830.7 32.0 29.6 6,915.7 14.6 0.8 14.8 3,457.9 3,457.9 14.8 7.0 2.8 254.3 12.5 1.1 138.6 7.5 103.6 5.0 1.2 5.1 n/a 12.1 665.6 159.8 3.1 126.4 2.3 74.6 5.2 49.4 119.9 50.2 4.2 1.6 14.2 8.1 5.6 660.4 21.6 11.2 879.6 3.0 4.5 570.0 10.0 1,360.1 570.0 10.0 1,360.1 1,321.7 58.8 14.4 1,321.7 14.4 58.8 496.8 180.0 0.9 n/a n/a 7.6 8.4 n/a n/a 2.0 0.0 100.0 0.4 25.0 80.0 6.0 0.0 57.6 n/a 3.4 n/a n/a 0.4 8.5 n/a n/a 30.2 51.2 0.0 18.0 0.0 4.3 6.6 0.4 21.1 320.5 50.7 0.0 122.4 45.1 42.5 0.0 0.0 n/a 0.6 1.8 0.1 7.0 0.1 n/a 0.0 0.0 53.6 1.3 0.0 95.0 7.9 40.7 885.1 0.9 0.1 0.1 28.4 0.1 267.4 35.0 5.4 524.0 0.5 0.1 0.1 30.0 0.1 35.5 0.1 396.1 3,460.0 4.8 0.0 11.1 2.1 295.5 0.3 3.5 0.3 5.1 236.4 1.2 40.6 200.0 150.6 193.1 2.0 6.0 0.2 165.0 4.0 0.3 387.0 332.5 0.3 178.5 0.1 0.01 138.0 0.2 5.7 235.7 total impressions 1,155,906,600 total production cost $5,355,766 grand total $38,783,700

for parties of 17 million or more, gratuity is included

Paid Created Earned Owned

$31,338,268 $1,361,119 $845,980 $71,257

Created Paid Owned Earned

$3,459,918 $830,772 $885,136 $179,990

Commission Contingency

$800,000 $227,610

29

EvaluaTIOn (mETrICs)
We will evaluate our campaign through market share increases and monetary gains.

PITCH
State Farm is at a crucial crossroad. Young Adults are transitioning into roles of responsibility and developing habits that will carry on through the rest of their lives. State Farm has a dwindling window of opportunity to reach these Young Adults before they develop brand loyalty elsewhere. This is where we come in. Young Adults want a brand that understands them and meets them where they meet. Feel Free does that. By re-positioning State Farm as convenient and valuable on all channels, especially social media, State Farm will begin to foster what will later mature into a profitable relationship. Weve shown you not only what we will do, but what weve done and how it has been effective. In an age of uncertainty, State Farm is currently torn between two seemingly mutually exclusive needs: Breaking through industry clutter Remaining true to themselves Circle Advertising provides a way to do both. A way to remain true to State Farms values and engage in conversation with Young Adults. A way to inspire them. A way to Feel Free to be State Farm.

auto: We will increase State Farms market share in the Young

Adult Market by 4.2% pts. We predict increases of: by breaking the barrier of misconception by breaking barrier of low involvement by breaking barrier of generational disconnect by retaining dissatisfied current customers

renters: We will increase market share by 1.7%pts. This percentage

breaks down to: increase in conquest sales incrase by up-selling current customers

Industry research of successful and unsuccessful campaigns determined this number to be reachable and conservative.*

POsT-TEsTInG
Feel Free was put through rigorous testing and 81.3% of those presented with it liked the message, stating: Feel Free makes me think of a weight being lifted. The tagline says Feel Free to do what you want, and we will take care of things for you. The freedom to do whatever you want, and still feel confident that things will be taken care of the right way. The message sells confidence and security. It makes me think that the agent would have my back so I dont have to be there. Selling confidence through a state of mind. To me these ads sell to 18-25 year olds who are on their own for the first time. They are college aged, away from mom and dad, making a big transition. It shows that with State Farm the transition can be made easy.

How we calculated the numbers Auto: 714,000 customers gained: 17M people X 4.2%. $942M revenue: 714,000 customers X $1319.14/yr (average premium). Renters (Conquest): 13.6M potential customers: 17M people X 80% (percentage of renters). $26M revenue: 13.6M people X$192/yr (average premium). Renters (Up-sell): 145,000 customers: 5% X 2.9M (number of State Farm Young Adult customers). $3.5M (0.7% market) revenue: 145,000 customers X $24/yr (average premium). Profit: $48.6M in profit: $971.5M total revenue X 5% (industry average mandated by govt*).

30 *Source: www.iii.org