State Farm Insurance Like a good neighbor Sate Farm is there “with a sandwich”

The Story Behind State Farm  Founder George Jacob “G.J.”  The beginning of State Farm began in 1922  Originally a single line auto insurance for farmers  The vision of the jingle “like a good neighbor, state farm is there”.  The extension of the company’s policy

One in every 5 cars on the road is insured by State Farm  Development of sub-companies under the umbrella of State Farm such as the Fire and Casualty Company.  Development of State Farm Bank  Development of a non-traditional financial institution  Rapid growth from 1922 and by 1942 it become a top auto insurance company

State Farm’s Vision, Mission & Goals  Vision: Operate fairly and do the right thing for our customers  Mission: First and best choice in the products and services provided “Our Mission emphasizes building strong communities, communities in which we can and want to do business in”.  Goals : Our goal is to strengthen existing relationships and develop new ones with non profit organizations that meet your philanthropic focus areas

Nonprofit Organizations  Non profit Organizations :  National Board Certification Teaching Standards  American Disaster Giving Program  Habitat for Human  Red Cross

SWOT  Strengths: Marketing strategy, ranking, recognition  Weakness: inability to turn over underwriting operations negatively affecting profit, declining financial flexibility and strength, mutual company(not able to sell stock to raise revenue)  Opportunities: Increasing profit; aging population, growth of global property and casualty.  Threats: Global climate; natural disasters, lower yields on long term bonds

Communication Strategy  Agent-based model  Velocity Communication-  YouTube  Twitter  Face Book  This is a fast and easy way to approach a younger audience

Current Communication Problem  Recent incident  In 2012 State Farm handled hurricane claims that customers made  State Farm tried covering up the policy which saved them millions from trying to give the money for the claims.  2013 unpaid claims  Refusal of the company to pay the customers claim

atch?v=4U_Mz9fySTA

Solutions  State Farm needs to be specifically clear with their customers as to which policy they are attaining  Set up workshops to help their clients fully understand their policy  State Farm must try to respond to every claim the can, considering the loyal customer has a right to claim for their monthly premium and since the company is able to donate millions yearly.  The last two are to create a safe account and minimize donations.

Cynthia Sotelo Josh Duran Danny Corral Raul Velarde Tuan Han

State Farm Insurance Like a good neighbor Sate Farm is there “with a sandwich”