THERE THERE— even when you wish you weren’t ii VIRGINIA ADVERTISING THERE THE STORY CONTENTS THE TARGET 2 TARGET Today’s 18 to 25 year olds are navigating independence for the first time in their lives. They are, in a sense, emerging into adulthood. They are experiencing Emerging Adulthood milestones such as graduations, serious relationships, first jobs, and moving Research Methodology into their own apartments. Though many of these events are liberating, they also Consumer Insights mark unfamiliar territory and are thus often overwhelming. Today’s 18 to 25 year olds are put in positions where they must make complex decisions about their 8 STRATEGY lives, including purchasing insurance policies. Emerging Adults & Insurance THE SERVICE Competitors State Farm Now To the target market, insurance is in a boring realm of responsibility they do Creative Brief not understand, and they do not want to waste their time dealing with it. They perceive insurance as a commodity that is only necessary when life takes a turn for the worse. However, State Farm needs to attract and retain their business to 12 CREATIVE secure a lasting, profitable customer base. Creative Strategy THE CHALLENGE The Campaign Phase One: Interest Currently, State Farm is not communicating with the target market in a relevant Phase Two: Connect way. State Farm’s recent advertising efforts do not appeal to 18 to 25 year olds, Phase Three: Interact and its competitors have been more successful in connecting with the target market online. State Farm must create a brand identity that fits with the target market’s lifestyle. 26 MEDIA THE OPPORTUNITY Media Objectives Traditional Media Virginia Advertising has developed a captivating and integrated communications Digital Media campaign that capitalizes on the company’s current strengths and enables Non-traditional Media State Farm to connect to independent 18 to 25 year olds. The THERE Campaign Budget & Timeline positions State Farm and its agents as supportive, trustworthy resources who are there when needed most. The implementation of this campaign will allow Evaluation State Farm to connect with the target market and give them the support and The Pitch independence they crave. The campaign tells 18 to 25 year olds: State Farm is there – even when you wish you weren’t. CAMPAIGN OBJECTIVES › Interest: Create stronger brand › Interact: Encourage the target to and agent awareness among learn more about State Farm and independent 18 to 25 year olds its product offerings › Connect: Within a year, prove to › The Bottom Line: Increase the the target market that State Farm number of auto and renters policies is relevant to their age group bought by 18 to 25 year olds 1 TARGET e·merg·ing a·dults [ih-mur-jing uh-dults] 1. those in the phase of the life span between adolescence and full-fledged adulthood 2. those who have left the dependency of childhood and adolescence, but have not yet encountered the enduring responsibilities of adulthood 3. those who explore a variety of life directions in love, work, and worldviews Age 18 19 20 21 22 23 24 25 Adolescence Adulthood 2 VIRGINIA ADVERTISING INTRODUCING EMERGING ADULTHOOD THE TRANSITION FROM ADOLESCENCE TO ADULTHOOD When exactly does an adolescent transition is vital because it unites the become an adult? Is it when they diverse group of emerging adults. graduate from college? Secure their first job? Get married? Studies of Major financial, residential, and today’s 18 to 25 year olds show that romantic changes mark the transition the entrance into adulthood is more into adulthood. In between these of a process than a single moment. milestones are daily moments, where This transitional period in their lives emerging adults take on smaller differs from both adolescence and responsibilities that make them adulthood and has recently been feel more grown up. During these termed by psychologists as “emerging moments, they often feel confident, adulthood.” excited, and fearless. They continue marching optimistically towards Emerging adults are diverse in their future until they encounter lifestyle, mindset, ethnicity, and an overwhelming and unfamiliar passion. They experience the situation, such as moving out on their transition into adulthood at their own own or deciding on a career path. At pace and on their own terms, but these times, emerging adults are not they all must complete this process to sure what to do, and so they turn to become an adult. Understanding this the people they trust for guidance. THE EMERGING ADULTHOOD TRANSITION 18 Year Olds 25 Year Olds Supported by I don’t think I’m a Parents 87% 13% kid anymore. But I’m not a real adult. I’m In School 67% 13% Living with halfway there. Family 84% 23% — KYLE, 21 Full-Time Employment 27% 78% BIG MOMENTS / LITTLE MOMENTS Big Moment The emerging adulthood process can be illustrated by the waves of an EKG. The larger peaks in the waves indicate more significant moments in the transition to adulthood. The smaller peaks and valleys indicate Little Moment the little moments that collectively define the entire process. Though every emerging adult has a different EKG rhythm, they are united by both big and small moments that comprise their transition process. Age 3 TARGET | THE THERE CAMPAIGN RESEARCH METHODOLOGY To gain insights into the mindset of the 18 to 25 year old, financially independent target market, Virginia Advertising conducted extensive primary and secondary research. Virginia Advertising determined a set of objectives to guide research: › Explore the social habits and lifestyle choices of emerging adults › Understand emerging adults’ view of insurance, State Farm, and its competitors › Gauge emerging adults’ reactions to creative concepts and executions PRIMARY RESEARCH METHODS Personal Interviews Virginia Advertising obtained diverse input from four groups of people: › emerging adults who are currently 6 financially independent insurance agents › emerging adults who will be financially independent in the 33 next two years target market parents › emerging adults’ parents › insurance agents 61 emerging adults ISTOCKPHOTO.COM/NSACUOFVIRGINIA FILE # 2948916 Surveys Focus Groups 20 1,265 focus groups held respondents between the age of 18 and 25 100 589 18 to 25 year old participants respondents financially 50 independent 90% states represented of participants were financially independent ISTOCKPHOTO.COM/NSACUOFVIRGINIA FILE # 498067 SECONDARY RESEARCH METHODS Secondary Research Virginia Advertising consulted databases including comScore, Simmons Choices 3, Nielsen, SRDS, and the US Census Data to gain an objective view and raw data on our 2,700+ target market. Additionally, Virginia articles and ads about insurance, Advertising researched previous and advertising techniques, and the existing State Farm campaigns, along target market were consulted with the entire insurance competitive landscape. ISTOCKPHOTO.COM/NSACUOFVIRGINIA FILE # 2948916 4 VIRGINIA ADVERTISING CONSUMER INSIGHTS Based on research, Virginia Advertising has determined four major consumer insights. The insights are categorized as follows: › TECH NATIVES - The Internet has transformed the way emerging adults communicate and shop › COMMITMENT PHOBIC - Emerging adults are disloyal customers and think commitments are restraining › LEAN ON ME - Emerging adults rely heavily on their parents for guidance › THE ME MENTALITY - Emerging adults value personal attention and brands that reflect their self images 65% of consumers say an online experience has changed their opinion of a brand 95% of 18 to 24 year olds say that the Internet is the first place they look for information TECH NATIVES The Internet has transformed the way emerging adults communicate and shop Technology is completely integrated advice they find on the Internet into the lives of today’s emerging from people they have never met. adults. This demographic is used to User-generated blogs, reviews of getting information instantaneously. products and services, and social In order to connect with the target media content all influence consumer market, State Farm needs to grab perceptions and buying behavior. their attention online in relevant and State Farm should have a presence in exciting ways. various digital media in order to build communities that enable emerging The prevalence of social media has adults to connect to each other and to helped create a community-focused agents 24 hours a day. generation. Emerging adults value ISTOCKPHOTO.COM/NSACUOFVIRGINIA FILE # 8064555 5 TARGET | THE THERE CAMPAIGN I want to take advantage of opportunities now, because I’ll have more responsibility in the future. — SARAH, 20 ISTOCKPHOTO.COM/NSACUOFVIRGINIA FILE # 3095223 COMMITMENT PHOBIC Emerging adults are disloyal customers and think commitments are restraining FAST FACTS Emerging adults believe that and are not hesitant to switch to › 52% of survey respondents commitments hold them back. another brand if they believe it will switched insurance providers They want to be free to live in the offer them a better product or service. because they wanted a lower price. moment, change their minds, and spontaneously take advantage of They also have a newfound perception opportunities. They feel invincible and of what constitutes a “necessity.” enjoy taking risks during insignificant Emerging adults view necessities moments. However, when emerging as items that provide instant adults find themselves in serious gratification, and do not always and unfamiliar situations, they feel consider purchases that will