The paper “ Advertisement Campaign for AAMI’ s Car Insurance" is an affecting version of a case study on marketing. A four-decade-old AAMI has, on a date, has a mammoth 2.5 million policyholders enrolled with it. Being the leading home, car, small business and compulsory third party (CTP) insurer, AAMI receives millions of telephone calls every year. Known for using exceptional marketing strategies and innovative methodologies, AAMI has the distinction of dealing with its customers directly. That apart, it also has the privilege of introducing in the market such insurance benefits as no penalty, no-fault, lifetime repair guarantee, and maximum no claim bonus.
Besides this AAMI provides progressive no claim discount on home insurance, valet service and general insurance customer charter (AAMI, nd). Its customers find it at their beck and call particularly when any calamity strikes and ever since its inception AAMI has been considered as the best alternative to motor club-owned and government-owned insurers. AAMI's business has grown manifold over the years and today its CTP and home insurance segments have been the biggest revenue-generating options that the company has developed over the last decade or so. With business as booming like this, the new boss at AAMI is eying the car insurance segment the most since he believes that if tapped rightly among the 18-30 age bracket, the segment stands chances of exceptional growth.
For this, a budget of $100,000 has been earmarked for the advertising campaign. This figure was reached on the basis of last year's budget; keeping in view the media inflation costs that have resulted in the last one year. What needs to be advertised and to whom? On boss' recommendations, the advertising campaign will be run for the young segment of the society.
It is because this is a potential segment and different from the young generation of yesteryears. The young generation today is more informed, well connected, has greater attention spans, and has money and influence. The behavior of this age bracket is influenced greatly by advertisements, branding and global influences infused by media campaigns. These behaviors are said to transcend from their upbringing rather than acquired traits that they are subjected to in their late teens.
Media campaigns are said to change their mindsets on consumption and spending. This age group today has a spirit of volunteerism which advertising can take advantage of. This age group likes a fast-paced life and is drawn towards luxury; cars belong to that luxury. The campaign will have to make the best possible attempts in not making it synonymous with "push advertising". Instead, it has to be developed such that it creates peer-to-peer networks. This will be beneficial because this age group, which has been brought up with advertisements bombarded from all sides, has a propensity to use social references to aid them in purchasing decisions.
Los Alamos Chamber of Commerce (2006) and HarrisInteractive, Inc. (2000) have recommended the use of social references for this thing. Peer-to-peer networks determine which products are or are not important for this generation. AAMI, thus, will have to stick to its age-old tradition of sticking to the innovative use of selling its brands.