Essays on Aami Car Insurance Advertising Case Study

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The paper "Aami Car Insurance Advertising" is a good example of a marketing case study.   AAMI was founded in 1970 and it currently has over 2.5 million holders of its policy and countless calls yearly. It is a top insurer in home, car, small business and compulsory third party insurance. AAMI deals directly with its customers and uses innovative marketing and business strategies to give them outstanding customer service and high-quality products. The company has introduced several insurance benefits including no-fault, lifetime repair assurance, no penalty and valet service, among others. In this report, AAMI plans to carry out a campaign to promote its car insurance, which comprises of comprehensive insurance, third party insurance and Compulsory Third Party (CTP) Green slip (AAMI 2013).

The aim of the campaign is to create awareness on the product and create interest to draw new customers between the age of 18 and 30 years. Addressing current needs Objectives of advertising There are a lot of insurance companies offering car insurance policies around Australia and thus, the objectives of the intended campaign include: To increase awareness of AAMI’ s various products under car insurance, especially to people aged between 18 and 30 years. To increase the number of car insurance policyholders. To convince more people in the target group to enrol for the car insurance policy by highlighting its various benefits to them. To make AAMI’ s car insurance the preferred insurance among most car owners across Australia. Advertising strategy To address the current needs, AAMI should take on a number of strategies.

To start with, AAMI should use the budget of $100, 000 which will enable it to carry out its campaign for the car insurance product targeting people between the age of 18 and 30 years.

This seems like a good budget since it is based on last year’ s budget and also includes media inflation costs. Taking into account the inflation costs is a significant move because it will enable the company to effectively match the availed resources with expected advertising expenditure. A Unique Selling Proposition (USP) is important when a company is planning to carry out a promotion on its products or services. In the case of AAMI, it has USPs in relation to the various packages under its car insurance.

Some of its USPs includes paperless claims, ability to choose one’ s premium, free towing of a damaged car, drivers course, driver rewards and 24/7 customer service. In its campaign to promote its car insurance product, a USP is crucial since it will assist the company to be in a position to convince potential customers on the unique benefits that they should expect from taking car insurance with AAMI, not any other company. According to Shimp (2010, p. 223), creating a USP for a product ought to be a company’ s first priority.

This is because; if the company does not make its business to stand out among others, it is hard to persuade the target audience to purchase its product. Lamb, Hair, & McDaniel, (2008, p. 421) maintains that the main reason why it is crucial for a company to form a USP is the need for a method to show prospective buyers that it is offering a product or service that is very distinct from those being offered by other companies. Without a USP, potential customers will not have a reason to patronize a company, since they will not see the way its product is original and different.

A USP is what convinces buyers to try a company’ s product and it is crucial to create a very powerful USP (Burtenshaw, Barfoot, & Mahon 2006, p. 88). Accordingly, USPs is necessary for AAMI in its campaign.



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