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Andrew Davidson 
Susan Menke 
Susan Wolfe 
Lisa Hronek Archive for 2009
The Chevy Revolution Continues
Chevy has continued with its “Revolution” marketing strategy, gearing up to release three new automobiles in the next two years.
In less than one year (October 2010), Chevy will take its biggest risk with the release of its Chevy Volt to the public. The release of this electric car could also be the company’s largest payoff. First seen in the direct marketing space in August 2007, Chevrolet has continued to create hype for its first electric car through direct mail and email. We expect even more activity in upcoming months.
Chevy is also planning on introducing the 2011 Cruze during the third quarter of 2010 as a rival to the Honda Civic and other fuel-efficient economy cars. The Chevy Cruze is expected to have more interior space than the Honda Civic and come with a 1.4L Turbo engine, built with performance and fuel efficiency in mind. Marketing for the Cruze was first observed by Mintel Comperemedia in October 2008.
Finally, Chevrolet has plans to enter the mini-car market in 2011 with the Chevy Spark. The 2011 Spark has yet to be marketed within the US through direct mail or email. However, I expect we’ll start seeing Spark advertising soon.
With these new innovative products, Chevy is the automaker to watch in 2010. I’m also curious to see what the competition will do. Any predictions?
Drive less, pay less: State Farm tests pay-as-you-drive insurance in Ohio
State Farm is now offering its pay-as-you-drive (PAYD) program “Drive Safe & Save” in Ohio. Via a relationship with OnStar, State Farm has found a way to compete with Progressive, the recognized leader of the PAYD option for auto insurance.
Last October, State Farm started promoting the program in Ohio with letters stating “Drive less? Save more on State Farm auto insurance.” The letter promoted savings on auto insurance premiums. OnStar would provide the monthly mileage readings to State Farm for determination of the savings amount.
Progressive’s MyRate program has been expanding month-by-month. Last August, an InSight article said the MyRate program operated in 14 states. Today that count has moved up to 17.
These PAYD programs may be catching on. A July 2008 Brooking Institution report estimated that two out of three households would pay less for auto insurance and each would save an average of $270 per car with PAYD insurance over a conventional auto policy.
Will State Farm’s new PAYD program be able to compete with Progressive? And do you think PAYD holds the future for the auto insurance industry, offering more flexibility for those who don’t drive everyday?
The early tweet gets the worm
As social media networks continue to gain popularity, businesses are realizing the advantages of signing up for websites such as Twitter and Facebook. Companies have the ability to build their customer base, along with benefit from free marketing by using social media. Due to the constraints of the economy and its effects on marketing budgets, companies need to consider alternative ways to connect with consumers and maintain/increase business.
Let’s take airlines on Twitter, for example. It’s obvious these companies are adapting to the times and embracing the influences of social media. Airlines use Twitter to provide travel updates, promote special deals, disseminate company announcements and relay weather-related news. Companies within the airline industry also have the opportunity to connect with current and future customers in a non-invasive way, quickly and effectively.
In an industry that is as dynamic as air travel, dedicating energy to developing and maintaining social media accounts could greatly benefit business. Whether it be a savvy traveler or a savvy social media user, individuals will follow these forward-looking companies for key information and important updates.
Free webinar Thursday: Navigating the CARD Act
A bit of shameless self-promotion this week. I’ve got a webinar coming up on Thursday, December 17th. It’s free, the content is valuable, and I’d love it if you could attend.
“Navigating the CARD Act: Evolving Acquisition Strategies”
The CARD Act’s regulations go into effect in just a few short weeks, so I’m going to explore its implications on the credit card industry. We’ve already seen issuers respond with new direct marketing campaigns and strategies, and we expect even more innovation next year. Join me to look at what’s happening now, what will happen in 2010 and which specific challenges will still face the nation’s leading card issuers.