Lactate’s motto uniform in good hands” along with their ability to remain in a positive public light for many years has provided the confidence customers want in an Insurance company. Allocate offers many types of insurance including home, rental, auto, life in addition to various recreational vehicles, motorcycles included. Slide 3-29 Estimating Current Demand: Total Market Potential With 9 million motorcyclists registered in this country this became a market that Allocate developed a heightened interested in targeting.
After initial data collection they determined that they only provided insurance to a single digit percentage of this market. They began their aiming by simply trying to create awareness that they sold motorcycle insurance. Ere number of registered motorcyclists along with registered bikes would allow Allocate to help determine their total market potential. As many motorcyclists own multiple bikes this would need to be accounted for in estimating the potential number of buyers.
Industry sales would then need to be looked at as not every motorcycle owner purchases motorcycle insurance, whether they are currently not using their bike or due to a disbelief in the need for insurance in general. This additional data could also be provided from surveys of buyer’s intentions targeted at hose with a motorcycle license or those who have recently purchased a motorcycle. Slide 3-7 Database Management Marketing and selling insurance is very different beast from marketing retail products.
Retail products typically can be marketed to offer something new to an Individual that they don’t already have or to replace their current stuff with a newer ‘regions. On the contrary once a customer has purchased insurance they do not make a change until they are either unhappy or a new offer is enticing enough to attract a customer to switch providers. Due to Allocate current customer profile they already have the ability to reach out, collect data and market to their 1. 5 million motorcycle owners who were already clients for other types of insurance. Elliot, 2008) ay providing a package deal with other insurance policies purchased through Allocate they are able to market internally and increase sales to those that are already loyal customers. Slide 3-11 Needs and Trends As times have changed and gas prices continue to rise, along with our population, consumers nave begun to switch trot the larger vehicles to more gas efficient choices that allows them the freedom to commute in the car pool lane. Motorcyclists No initially rode solely for pleasure began using their more cost effective motorcycles as part of their daily commute.
These factors have played a role in the increasing trend of motorcycle sales for the past decade. As these sales have remained elevated, this market has solidified its move to become a predictable and durable trend rather than a fad. Due to the concern that our current primary fuel source, oil, is finite and nonrenewable, we face substantial cost increases as depletion approaches. (Kettle & Keller, 2012) As the population continues to row our highways also become more congested, increasing our commute time.
In most Asian countries, with some of the more dense populations the main individual decide choice is the motorcycle. (Ins, H. T. -P. , Eng, A. F. M. S. & Ins, N. X. D, 2008) In time we may see our country following this trend and this may eventually transform our transportation industry resulting in motorcycle sales becoming a Mega Trend. Slide 3-21 Natural Environments As of Motorcycle Industry Council’s most recent report, scooter sales are up 1 1. 8% and dual-purpose bike sales are up 14. %. (MIMIC, 2012) With the purchase of any of hose types of bikes also comes a need for motorcycle insurance. The target population for these types of bikes are individuals looking for fuel efficiency, commute cost savings while still choosing a comfortable, more visible motorcycle or a less aggressive scooter. This target population fits into the Lactate’s current philosophy focusing on safety. Lactate’s website promotes the use of safety gear Nile riding and offers a good rider discount.
According to the case study the Increased sales are also accounted to the Baby Boomers and Generation Y consumers. Both these generations respond well to living green and are highly environmentally conscious along with image conscious. (Williams, K. K & Page, R. A) Slides: 4-11 Research Approaches, 4-30 Contact Methods & 4-31 Pro’s and Con’s of Online Research On the realization that this was an untapped market, Allocate did wonderful Job at reaching out to motorcyclists and determining how to target this population.
Firstly, as Allocate found many of their staff were motorcycle riders themselves which allowed Allocate to start with their own internal focus groups. They then began their own website which was targeted exclusively to motorcycles in addition to sponsoring motorcycle rallies. Helm, B. 2007) Motorcyclists are a tight community and communicate a great deal now through internet forums. Allocate has begun to play a role in this by providing their own forum and including their own employees. This provides them the ability to communicate directly with their consumers through a quick, cost efficient method.
This also allows them to target Individuals who are at a high likelihood of becoming potential customers and increases their ability to run quick surveys, whether determining user’s intention to buy or their opinion of Allocate versus other insurance providers. The other contact teeth that they have used in their sponsorship of motorcycle rallies has worked ‘ere well for Lactate’s competitor, Progressive. Progressive has been a longtime sponsor to the International Motorcycle snows which allows them to advertise directly on their website and they makes them the first booth each visitor sees on attending the show.
Immediately on arrival each visitor receives a business card to scan for free prizes which include various types of merchandise with Progressives logo. This marketing strategy has increased consumer association with their company name when asked where to buy motorcycle insurance. Lactate’s steps to enter the growing Motorcycle industry has not happened overnight however as it continues to grow their sales are likely to expand as well with their ability to attract the new conservative motorcyclists.