This document discusses the marketing strategy and initiatives of PEMCO Insurance. It notes that PEMCO aims to differentiate itself in an undifferentiated industry by focusing on building strong local community relationships and empowering customers and agents to promote the brand through word-of-mouth marketing. Some key tactics mentioned include sponsoring numerous local events, empowering employees to support local causes, leveraging local retailers and services to promote shared community interests, and facilitating customer and agent engagement through service-oriented initiatives to generate positive conversations about the brand.

1. Rod Brooks
VP & Chief Marketing Officer, PEMCO Insurance
President: Word of Mouth Marketing Association

2. Evening Magazine

3. Seeing The Edge
Differentiating in an
undifferentiated industry

4. Who is PEMCO?
World-Class
Customer Experience
PEMCO BUSINESS MODEL
• Integrity
• Responsibility
• Courage
• Leads with relationship

5. Our vision
PEMCO is the Northwest insurance company
that “gets it.” An organization that’s great to do business with,
one that shares the values of those who live here, one that’s
genuinely likeable. It’s the first choice of responsible people.

6. PEMCO’s “WHY” Why? Why? Why? Why?
Why? Why? Why? Why?
Why? Why? Why? Why?
Why? Why? Why? Why?
Why? Why? Why? Why?
Why? Why? Why? Why?
We enable and Why? Why? Why? Why?
Why? Why? Why? Why?
protect the dreams Why? Why? Why? Why?
Why? Why? Why? Why?
of responsible
Why? Why? Why? Why?
Why? Why? Why? Why?
Why? Why? Why? Why?
Northwest people Why? Why? Why? Why?
Why? Why? Why? Why?
Why? Why? Why? Why?
Why? Why? Why? Why?

7. Our BHAG: Big Hairy Audacious Goal
“Never have to advertise
for a lead again”
PEMCO customers
can’t stand the thought
of friends & family
doing business with
anyone else.

8. PEMCO’s winning approach
Differentiate Different because we live, work, learn
on hyper local and play in the same communities.
Achieve meaningful Grow and evolve tools to reach and
interaction connect with broad consumer base
Invest in long-term relationships with
Deliver world class consumers through consistent
customer experience engagement

9. Our situation in 2007
PEMCO
Share of 3%
advertising
voice was less
than 3% in the $55 Million
prior 2 years 2005-2006

10. Our situation in 2007
Brand Awareness
100
80
60
40
Geico State
20 Farm AllState
Farmers PEMCO
00

11. Our situation in 2007
Market Share
20
15
10
05
8.3 7.9 7.4 7.1 7.2 7.1 6.7 6.4
00

12. Employee moral
GOING
IN THE
WRONG
DIRECTION

13. Market oportunity

14. Insurance is …
The law
Not valued
Not trusted
Not well understood

15. Can only
“win” by
“losing”

16. ALWAYS
SHOPPING
See very little product
differentiation

17. ALWAYS
SHOPPING
2
PO
PISSED OFF or PRICED OUT

18. Challenges: old and new
1
Industry
• Highly regulated industry
• Product perceived as a commodity
• Insurance is an unsought product
2
Environment
• Consumers heavily influenced by peers, friends, strangers online
• New & unfamiliar channels are sustaining brand conversations

19. Be likeable
When all you have is rocks,
you need a better plan.

20. Be likeable
• Challenge Status Quo
• Highly Nimble
• Innovative & Creative
• Well Defined Strategies
• Leverages Partnerships
• Capitalizes on WOM of
loyal customers
• Builds Fierce Advocates

21. Extensive research initiative
Consumer • 100 In-home Ethnographic Interviews
• Important aspects of consideration
Research • Key influences of decisions they make
Internal • Cross Functional & Multi-level Conversations
• Culture, Values, and Challenges
Reviews • Strengths and Opportunities
Competitive • Studied Top Twelve Companies – S.W.O.T.
• Product, Price and Brand Positioning
Assessment • Advertising, Messaging, Distribution and P.R.

22. Some of the
people we talked to!

24. Leaders in innovation – Proud!

25. Incredibly GREEN

26. LOVE THE LOCAL GUY
Hometown Heros
Local Trumps Large
Personal Trumps Price

27. Unique, Quirky and COLORFUL

28. Jerry McGuire Syndrome

29. Four billion dollars is like brand magic!
• Car insurance is anything but
conservative when it comes to
marketing these days!
• Doling out dollars once reserved for
categories like beer and travel.
• 2009 Spending - $4.15 B – more
than twice industry spending in 2000.
• Industry growth – all lines – up 2.7%
in same time period.

30. Four billion dollars is like brand magic!
“Everything is working.
The one thing I don’t want to have
stand in your way is money.
That’s what I’ve got.”
“We wanted to kick Flo’s ass!” Warren Buffet
- GEICO
Nobody wants to sit around and talk about
car insurance… We needed to entertain…
Get people’s attention.” Nina Abnee – Leo Burnett
- Agency for Allstate
“...we’re not slowing down
Pam El, Marketing V.P.
until we get the job done. And our job
- State Farm Insurance
is to capture the hearts and minds
[of potential customers].”

31. Four billion dollars is like brand magic!

32. Four billion dollars is like brand magic!
Top 5 Carriers
Spent $2.39
Billion Dollars
In 2009

33. And the trend continues
Advertising
spending
topped
$5 BILLION
in 2010

35. PEMCO’s success depends on the positive opinion of people like me.
They listen, participate, encourage and enable me to share with others.
Listen
Enable + Participate
Partnership
Encourage

36. “I know you”
Initial: “I Know You” – Low Engagement
1) Familiar 2) Assessing & Evaluating 3) Consideration

37. “I like you”
Transaction: “I Like You” – Moderate Engagement
1) Functional 2) Transactional 3) Expectations met

38. “I love you”
Mature: “I Love You” – Active Engagement
1) Loyal 2) Relationship based 3) Recommendation behavior

39. “I defend you”
Mature: “I Defend You” – Active Engagement
1) Affinity 2) Proactive defender 3) Collaborative

40. Awareness To Advocacy
Closing the loop on
end-to-end engagement:
Listen: What is being said about
your brand and brands of your agents
Participate: Join the conversation
with great content, relevant resources
for customers AND agencies.
Encourage: Foster connections
between customers, agencies, carrier.
Enable: Provide customers and
agents a place to tell their stories.

42. Tools in the toolbox

43. Tools in the toolbox

44. Keeping it real – focus on people

46. Act Local - To Be Local!
Where they live, work, learn and play.

47. Act Local - To Be Local!
Where they live, work, learn and play.

48. PEMCO brand ambassadors

49. WALLY on the road
In 2011, PEMCO will sponsor
and participate in more than
100 Northwest events!

50. Serving community & neighbors
Empower employees
Support health & education
Celebrate Northwest

51. Local retailers
Celebrate a shared audience

52. Local services
Leverage shared interests

53. Local franchises & fans
Know your talkers!

54. Facilitate engagement
Give them something to share

55. Community agent partners
Amplify hyper-local community initiatives

56. Connect with community
Service-oriented activities create conversation

57. Spark conversation
Integrate “talkable” campaign elements into events

60. YOUR EDGE