Allstate insurance is the second largest property and casualty insurance company by premiums in the United States. Allstate insurance handles about 12% of the U.S home and auto insurance market. (Allstate, 2014). Many of Allstate’s customers fall under what one could refer to as a traditional selection of insurance for automobiles. Recently, Allstate has noticed a major shortcoming in lifestyle insurance, which includes coverage for motorcycles, boats, and other recreational vehicles, in comparison to its competitors. The motorcycle insurance sector is a 10.4 billion dollar industry and growing (PRWEB, 2012). The U.S. Department of Transportation website reports some astounding figures, including that 5,370,035 motorcycles were registered three years before the article, 7,138,476 motorcycles registered at the time of the article, and grew to 9,477,243 registered motorcycles at the end of 2012 (NHTSA, 2013). It is obvious as to why Allstate would identify motorcycle insurance as a worthy lifestyle product to devote marketing research dollars into in order to develop new strategies for cornering a share of the market.
Slide 4-3 What is Marketing Research
Marketing research is the systematic design, collection, analysis, and reporting of data and its findings relevant to the specific marketing situation that a company faces (Kotler, 2012). By researching the motorcycle rider, Allstate is able to identify who they are and what they experience. In 2008, Allstate conducted a “Who’s Behind the Helmet” survey. They defined their qualifications as a motorcycle owner who is 18 years of age or older with an income of $50,000 or more. (Floyd, 2008). The 500 person sample size produced insightful and interesting details for Allstate. Jeff Deigl, assistant vice president of specialty product lines for Allstate, is quoted as saying “Similar to car enthusiasts, millions of Americans invest significant time, energy and money to celebrate their love of motorcycles. It's important to constantly update our understanding of who's out there riding and what's important to them. After all, we don't just protect the bike - we protect the rider, as well"(Allstate, 2014). Allstate’s research also led them to coveted information upon discovering that 600 of its 14,800 agents were motorcycle riders themselves. Allstate was able to leverage this find by featuring some of its motorcycle riding employees in an attempt to bond with consumers. They proclaimed that Allstate knows the needs of motorcycles riders better than competitors because the “good hands” were on handlebars (Helms, 2007).
Slide 4-11 Research Approaches
Allstate utilized multiple outlets to accumulate its raw date. I previously mentioned a survey that Allstate conducted: “Who’s Behind the Helmet”. This survey resulted in important ethnographic findings. The culture amongst active riders showed that they were twice as likely to give up their TV before they gave up their motorcycle. Riders unite and...