Progressive 2011 Annual Report Download - page 15

Brand and Distribution Momentum An open question existed
over the last decade or so — could we market and retail our
product with the same success we enjoyed, more as a whole-
saler, with our agents representing our consumer face?
Perhaps an even more interesting question, and for me the
correct one, “Could we do so while enhancing both our
Agent and Direct distribution options?” — our very clear and
consistently stated objective.
Our single brand multi-distribution company
is a unique and valuable positioning in our space.
The road was not always straight, but the result
is extremely rewarding and powerful.
Today, I believe we have an answer. Progressive is a business
generating brand. One that is more important than any
means of distribution or product feature but in fact a clear
consumer mindset about who we are as a company and
what they should expect as a customer. Our Personal Lines
business today is a very balanced book, between distribution
options, with agent-produced auto business slightly larger
at 55% of policies. Our single brand multi-distribution
com pany is a unique and valuable positioning in our space.
The road was not always straight, but the result is extremely
rewarding and powerful.
esearch on consumer’s reactions to brands, preferences, and
advertising is extensive and often constructive, but rarely
definitive. We are, however, encouraged that consumer aware-
ness of our brand is both positive and closely associated with
key characteristics such as ease of doing business, distinctive
product features, and exceptional service, all consistent with
our intentions.
Ensuring congruity between internal and external brands
with actions matching expectations has been central to our
global brand development. The brand ambassador status
bestowed on “Flo,” our most visible employee image, is no
accident and serves as a clear behavioral model for all —
the substance perhaps not the humor. The importance of
getting this right was highlighted in 2 011 as “Flo” was voted
America’s #1 advertising icon (as named by Entertainment
Weekly). I’m sure her over 3.3 million Facebook fans had
something to do with that, but the point is the same.
For 2 011 we had clear objectives to advance our marketing
and advertising efforts.
We wanted the character of “Flo” to endure and, to do so,
sought to make the character richer and extend her range
of interactions and messages. The results are always subject
to opinion, but for me the creative developed in 2 011, for
use in 2 011 and 2012, was some of the best in this now long
running campaign. esults trump opinion, but I think
consumers might agree.
We had some clear ideas about a new campaign, its target
audience, and message, and tested our “Messenger” cam-
paign late in 2010. However, we found by observing the
“Mes senger’s” natural interaction style with all ranges of
people that we had an opportunity to improve on the
concept. By mid-year, we were reworking the campaign
structure. The “Messenger” is now carrying his message
of Progressive’s savings and convenience, by interacting
with prospective customers in real and unscripted settings.
Choosing settings like a gas station or baggage claim at
the airport, the “Messenger” can empathize with the pain
points of gas prices or baggage fees and, while not able to
solve them, is willing to share his savings on auto insurance
to help with the burden. These true slice-of-life scenarios,
where the “Messenger” can perform what we call random
acts of savings, provide reactions and responses that simply
could not be scripted. We’re encouraged by early results and
the developing acceptance of the character from “Not quite
sure,” to a guy who understands life and helps when he can
by “saving it forward.”
No campaign it would seem appeals to all and we are
delighted to have additional assets for use across the range
of audiences we wish to address and the media options avail-
able to us. The most enduring of our objectives is to ensure
all our customer communication and messaging is integrated
and presents a consistent Progressive brand, be it in print,
social media, digital, or television.
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Woop Woop (JWIL, age 29)Camper (Pelgrim, age 49)