IMC Plan On Geico Insurance Company Research Paper

IMC Plan On Geico Insurance Company - Research Paper Example Center of discussion in this paper is GEICO or Government Employees Insurance Company. Founded by Leo & Lillian Goodwin in the year 1936, the Company started its journey as car insurance company for government & military employees. Since then it has seen many changes in its structure & quest for growth. The company has grown by leaps & bounds over these years and is adjudged as 3rd largest auto insurer in private section in US. GEICO is standing tall as part of Berkshire Hathaway headed by Warren Buffet with 8 million policyholders & 17 million vehicles insured under its belt. GEICO started as a company which was catering to the needs of federal & military employees only. The founders Leo & Lillian Goodwin had different marketing plan for their business and the utmost was to lower the cost. This business plan of theirs was made successful with the induction of federal employees in their marketing strategy as this segment of people would be posing low risk and eventually companyâ€⠄¢s profit would not be hampered. Even today GEICO sticks to this objective of its and all through these years one thing which has remained intact with the company is creating customer value through its services. Every firm in today’s time needs to promote itself through various advertisements as to reach maximum number of people and build a strong customer base. GEICO is a company which has always believed in reaching out to people directly than through any agents and for this very reason it has relied on internet communication, through phone and heavily investing on advertisements which in return has increased its customer base. c) Competitive Analysis: Competition is one word which can never be forgotten in context of marketing plan. Every company has a competition in its field and a proper analysis is must to emerge as winners. GEICO also have been facing tough competition from other players but what has made it look different is its excellent coverage, always thriving to keep costs low and last but not the least good service quality to its customers. d) Environmental influences: External or the environmental influences can be broadly divided into 4 categories- i) Economic: GEICO has been considerably climbing the steps towards the numero-uno position and this has been possible because of good economic position of US. Though lately due to recession the things turned ugly but now the economy is back on track and so GEICO can expect further growth. ii) Technological: To keep up with the time and competition GEICO not only needs a good service quality but also innovation in the products. With technology being at par GEICO’s service is further going to make customer happy and more interested in the company for getting their vehicles insured. iii) Political-Legal: A company like GEICO should always make sure it follows all the norms and regulations set by the government to prosper smoothly without any hassle. A politically clean company is most so ught after company by any customer and in a risky business like insurance sector a company surely needs to legally manage its business. iv) Socio-culture: With power comes great responsibilities and for this GEICO should also be socially attached with its