KEEP GOIN STRONG

STATEFARMSTRONG.COM

TABLE OF CONTENTS

RESEARCH DIRECTOR

CAMPAIGNDIRECTOR CREATIVE DIRECTOR IMC DIRECTOR

MEDIA DIRECTORAmanda Takacs

THE STOMACH

Nicole Rehling

THE TEETH

Marty Filogamo

THE GROWLCory Schneider

THE MOUTH

Nicole Botich

THE CHOMP

2 Executive Summary3 Situation Analysis11 Primary Research12 Problems & Opportunities13 Creative Strategy15 Media Plan25 Creative Executions32 IMC39 Budget Breakdown

Shark Attack has the intense and fierce ability to shred the competition and make your target their main focus of attack. Starting with its creative growl, the media will bite into the target with its sharp teeth and chomp at the audience with effective IMC promotions. The attack will be backed with a strong stomach for research that can easily digest the target.

Whats your plan for attack?

THE ATTACK TEAM

1

EXECUTIVE SUMMARY

THE CASEState Farm Insurance is the nations leading property and casualty insurance company. To maintain its current position, State Farm Insurance must target independent young adults, aged 18-25. Currently, State Farm Insurance is positioned as a traditional, old-fashioned insurance company to the 17 million independent young adults within the U.S. population. In addition, State Farms established customer base is aging, directing the company to choose young adults as the primary target and remain on top of the insurance market. Shark Attack will effectively and efficiently use media placements, creative executions and promotional events to create a fully integrated marketing communications plan that will contemporize the brand image for State Farm Insurance.

RESEARCHThrough our primary research, Shark Attack found that the target is independent young adults, aged 18-25, who are responsible for 50 percent or more of their living expenses. Our campaign will be most visible in the seven major U.S. cities which have the largest population of this target market. Research showed that the primary target is both racially and ethnically diverse, as well as being goal-oriented and technologically advanced. Through research, it was also discovered that the target is price-sensitive, as over 60 percent of the targets members are in college and approximately 56 percent are working full-time. The secondary target is legacy young adults, those whose parents have State Farm Insurance. By researching the primary and secondary target markets, we also identified a tertiary target: parents. Parents can be an large influence on the target when it is time for independent young adults to select an insurance company.

Shark Attacks primary research showed that State Farm, compared to its competitors, is behind in grabbing this targets attention. State Farms key competitors are Progressive, Allstate and GEICO Insurance companies. The competitors

have been able to reach independent young adults through their advertising campaigns, resulting in measurable success. However, these competitors are catering increasingly to an impersonal world and often offer auto insurance exclusively. This is an opportunity for State Farm Insurance and for our campaign. Overall, through primary research, Shark Attack found that it is important to contemporize and build the brand to attract our target market and to continue upstaging the competition.

REsultsShark Attack has allocated $21 million of the $40 million budget to media, using approximately $11.5 million on traditional placements and $8 million on non-traditional placements. $16 million of the campaign budget will be spent on IMC, with the remaining $3 million allocated for production and contingency funds. After conducting research, analyzing the market and testing its concepts, Shark Attack believes that it has created an effective campaign that will connect with the target market. Although the companys existing customer base in aging, State Farm Insurance still has the resources and the drive to provide both support and reliable insurance coverage to all of their current and future policyholders. Through creative media placements, State Farm Insurance will be consistently reinforced as a modern and approachable brand, allowing the target to know that no matter what life throws at them, State Farm Insurance will help them to Keep Goin Strong.

Executions,

Media and IMCShark attack will accomplish the Keep Goin Strong campaign through both traditional and non-traditional media to reach the target market. Traditional media methods include collegiate newspapers, network television, radio, national magazines and out-of-home placements. Non-traditional media choices

include mobile ads, web player ads, Internet media site ads, mall kiosk placements, stair wraps, grocery cart ads and airport baggage claim clings. Shark Attack will use these non-traditional methods to their fullest to reach the target market, as they are an active group who consumes many mediums. Placements will heavy-up in the states with the highest populations of 18-25-year-olds: California, Florida, Illinois, New York, Ohio, Pennsylvania and Texas.

In order to create buzz and more interaction between State Farm and the target market, Shark Attack will create promotional events throughout the yearlong campaign to create a connection between the two groups. The promotions will incorporate State Farm in typical everyday and night activities for those in the 18-25-year-old target, as well as large events in American culture (i.e. New Years Eve in Times Square, the college BCS national championship, March Madness, etc.).

THE SOLUTIONThe target perceives State Farm Insurance as an outdated, expensive brand for older adults. They perceive State Farms agent-based insurance model as a luxury they cannot afford. The Keep Goin Strong campaign will reposition State Farm Insurance as a humorous and contemporary brand for young adults while achieving top-of-mind awareness. The tagline, Keep Goin Strong, means that no matter what happens in life, State Farm and its agents will be there to support their clients during weak moments. State Farm Insurance will give the target reassurance that they are taken care of by someone who is experienced and understands. The existing Good Neighbor slogan will remain in our ads, under the State Farm logo, to maintain the original branding and act as an extension to the money that the client has already spent promoting it. The target will find the creative executions hilarious but straightforward, reinforcing the brand image. By creating a modern and humorous campaign, Shark Attack will capture the target market and as a result, be successful.

2

3SITUATION ANALYSIS

State Farm Insurance was founded in 1922 by retired farmer and insurance salesman George Jacob G.J. Mecherle. His motivation for starting the company was simple: he was intent on treating his customers with fairness and honesty.

Mecherle knew farmers drove less and had fewer accidents than city folks and thought they should pay less for automobile insurance. The insurance company G.J. worked for didnt agree and suggested he start his own company.

Thats exactly what he did.

The State Farm founders philosophy of insurance coverage at a fair price, coupled with fair claim settlement, remains the cornerstone of the clients success. His original vision and values still guide State Farms current mission.

Today, State Farm insures more cars than any other insurer in North America. They are also the leading U.S. home insurer. More than 17,000 agents and 68,000 employees serve the companys 75 million policies in the United States and Canada. State Farm also provides their customers with a wide array of financial products and services to help them manage today and prepare for tomorrow.

As of 2006, the auto insurance industry in the United States totaled over $162 billion. In the auto insurance market, the top 10 American insurance companies accumulated 64% of the market share, the highest of which is State Farm. The company is currently ranked 31st in the Fortune 500, a hierarchical listing of American companies by revenue, and insures more cars and homes in the U.S. than any other insurer. In 2007, State Farm Insurance earned a revenue of nearly $62 billion.

COMPANY Background

SALES AND MARKET SHARE

OTHER

STATE FARM

ALLSTATE

PROGRESSIVE

GEICO

FARMERS

18%

11.1%

7.3%52%

4.9%

6.7%

1922Jacob Mecherle started an insurance company that created fairness for individual customers.

1924Indiana Farm Bureau and State Farm sign a contract making the Indiana Farm Bureau the first state agent for State Farm.

1942State Farm Insurance becomes the largest automobile insurer in the U.S.

4SITUATION ANALYSIS

In an effort to attract an emerging and relatively untapped market, State Farm Insurance initiated a young adult task force. The result was the 2006 Now What? campaign, which featured a series of provocative and thought-provoking situations that left viewers in a position to make a decision. Overall, the campaign improved young adults attitudes toward insurance understanding, brand recognition and favorability toward State Farm Insurance. Additionally, a significant increase in the number of new policies written among the target group took place. State Farms current promotional budget is $40 million.

The increase in Internet usage has changed the insurance industry tremendously. The direct-insurer model, which is exhibited by companies such as GEICO, Progressive and Esurnace, have an edge in this area because they cater to the ever-prevalent and growing trend of online insurance purchasing. Along the same lines, the insurance industry has become much more aggressive over the past few years tough economic times have made affordability a top priority, particularly among the target audience.

ITS THE LAWCar insurance is regulated at the state level, with each state enforcing its own guidelines concerning the minimum car insurance coverage that is required. All states have laws regarding the minimum amount of liability coverage a driver must have in order to legally drive their vehicle, though it may be considered wise to carry additional coverage.

Virginia residents, for example, are required by law to pay the state $500 annually if they choose not to carry liability insurance on a particular vehicle. New Hampshire, on the other hand, is one of few states that does not require motorists to carry liability insurance.

The penalties that await motorists who choose not to carry auto insurance vary. Its not uncommon for such a motorist to be subject to a hefty fine, license suspension, license expulsion or jail time. Usually, the minimum required insurance plan, by law, is third party insurance to protect the victim of an accident against being financially responsible for loss, damage or injury caused by a vehicle.

PAST ThemesMAJOR TRENDS

Political and Legal Factors

1971State Farms well-known jingle, Like a Good Neighbor, State Farm is There, was written by American songwriter Barry Manilow.

1965State Farm began marketing health insurance.

2006State Farm was the first property and casualty insurer ever to help promote a major feature film the Disney/Pixar animated feature film, CARS.

5SITUATION ANALYSIS

When compared to competing insurance companies, State Farm Insurance is losing the battle for young adults attention. While they view State Farm Insurance as being an old-fashioned and outdated brand, members of our target are attracted to contemporary brands, such as GEICO and Progressive, because of their humorous advertising and creative executions. To defend its top position, State Farm Insurance will have to contemporize its brand by keeping in touch with the lifestyles of young adults.

State Farm Insurance and its agents takes their roles as good neighbors within their community very seriously. To a State Farm agent, this means being there when and where theyre needed, support their customers and following through on what theyve promised. State Farm Insurance commits to each protect and serve each policyholder. The client has built strong bonds and a tradition of success by ensuring these promises are kept.

Because of their dedication to neighborly service, State Farms customer satisfaction is highest among all U.S. insurance agencies. According to the American Customer Service Index (ACSI), State Farm Insurance ranks first for customer satisfaction for property and casualty Insurance with a score of 81 on a 100-point scale. State Farm also ranked second for automobile insurance, with a score of 80, tying GEICO.

Consumer perception

and uniqueness

Customer Satisfaction

BRAND importance

BRAND EVALUATIONThere are a number of companies within the State Farm Insurance Group, including the State Farm Mutual Automobile Insurance Company, the State Farm Life Insurance Company, the State Farm Fire and Casualty Company and the State Farm Bank. Through these companies, State Farm provides for the insurance needs of current clients through an agent-based model with 16,000 agents and 76,500 employees throughout the 50 states and Canada. This type of business structure gives State Farms customers the personal attention and cooperation they desire. Because of this, all State Farm companies take their Like a Good Neighbor, State Farm is There slogan seriously, living the slogan as a lifestyle rather than just viewing as a motto.

State Farm insurance is sold in all 50 states with 16,000 agents and 76,500 employees throughout the U.S. and Canada.

DISTRIBUTION

We are people who make it our business to

be like a good neighbor; who built a premier company by selling

and keeping promises through our marketing partnership; who bring

diverse talents and experiences to our work

of serving the State Farm customer.

6SITUATION ANALYSIS

State Farms current brand personality is perceived as being conservative and traditional, typically appealing to older generations as a reliable choice for insurance products. Through the Keep Goin Strong campaign, State Farms brand will become a modern and more approachable brand to those in any age group, primarily to the 18-25-year-old demographic. State Farm Insurance will become more like a friend than a service to current and prospective customers alike.

State Farm Insurance is currently the number one choice among Americans for both automobile and renters insurance. Running business under the agent-based insurance model helps State Farm Insurance maintain their Good Neighbor mind set, as their agents have the ability to provide guidance and support through the insurance purchase process. In addition, State Farms agent-based model provides consumers with a reliable agent with whom they can have as a constant contact for any concerns, questions and claims submissions. When providing service to their clients, State Farms agents believe its all about the client: their needs, their priorities, their values and their future.

BRAND PERSONALITY

Product Evaluation

YOUR RISKS

YOURDREAMS

YOURLEGACY

ESTATE PLANNING

SAVINGS, HOME OWNERSHIP, RETIREMENT, EDUCATION PLANNING

PROPERTY/LIABILITY, PREMATURE DEATH, DISABILITY, HEALTH CARE, LONG-TERM CARE, EMERGENCY SAVINGS, DEBT MANAGEMENT, BUSINESS OWNERS

Our success is built on a foundation of shared values quality service and relationships,

mutual trust, integrity and financial strength.

Our vision for the future is to be thecustomers first and best choice in the products and services we provide. We will continue to be the leader in the insurance industry and we will become a leader in the financial services arena. Our customers needs will determine our path.

Our values will guide us.

7TARGET MARKET

SITUATION ANALYSIS

During the campaign year, there will be approximately 17 million independent young adults, paying 50 percent or more of their living expenses and living in the U.S. The target is both racially and ethnically diverse; one in three considering themselves a minority. More than 60 percent of the target consists of college students and 56 percent of them are also working full-time. Known as the Millennial Generation, the target is part of the largest age group since the Baby Boomers. There are over 11 million households that currently include a young adult and an additional 3.3 million where a young adult is considered to be the head of the household. The secondary targets are legacy young adults those whose parents are State Farm Insurance customers. The tertiary targets are parents of the primary, as they are both a direct and indirect influence on the selection of an insurance company.

The primary target is goal-oriented, more ethnically diverse and more fluent with technology than prior generations. They believe that everyone has an individual voice but are skeptical when it comes to placing their trust in a product or service. The target uses a variety of channels to conduct business for their insurance needs. Members prefer accessing price quotes online or over the phone. For advisory issues, members of the target often prefer to request help in person or over the phone.

Independent young adults are distinguished from dependents by their autonomy and decision making on both insurance and financial services products. Almost three times as many young adults who pay for their own insurance have switched providers compared to those whose parents pay for their insurance. Those who are loyal to State Farm Insurance because of their parents are called legacy young adults. This group is most likely to return to using State Farm for the security known from parents experience.

Young adults are on a budget and are fiscally conscious. This target worries about reducing debt and their careers started. They tend to believe that nothing bad will ever happen to them. This target wants to be considered adults, yet most have limited experiences. They are Internet-savvy and prefer to take care of most things online.

This will be a nationally distributed campaign with special consideration given to the states with the highest populations of the 18-25-year-olds: California, Florida, Illinois, New York, Ohio, Pennsylvania and Texas. State Farm Insurance is licensed to sell insurance products in all 50 U.S. states and the Canadian provinces of Alberta, New Brunswick and Ontario.

DEMOGRAPHICS

PSYCHOGRAPHICS

GEOGRAPHICS

8SITUATION ANALYSIS

BRAND CAPSULES

Alison is 18 years old and lives with her parents. She is about to graduate high school and is not interested in learning about spending money to prepare for the unexpected. Alison wants to be considered an adult, yet she is unfamiliar with many of lifes experiences. Her parents are ready to let her experience this desired independence when she begins to attend college and rent her own apartment, though Alison will then be responsible for more than 50 percent of her living expenses.

THE HIGH SCHOOL GRADUATE

Brett is a 21-year-old college senior whose parents are insured by State Farm. When he graduates college, he will be more loyal to State Farm Insurance than new prospect independents. He will choose State Farm over a new insurance provider, because his parents have had positive experiences with State Farm.

THE LEGACY CUSTOMER

Ronnie is 20 years old and is one of the 17 million independent young adults responsible for 50 percent or more of their living expenses. He has developed his mothers autonomy and decision making with insurance and financial services. Ronnie moved out of his mothers house when his graduated high school and got a full-time job. He possesses the working knowledge of what he needs to be on his own and is working towards buying a new vehicle.

THE FULL-TIME WORKER

Justin is a 21-year-old student part of the 60 percent of young adults that attends college. He also works a part-time job. He is price-sensitive, budgeting his money in an organized and conscious manner. He is worried about accumulating debt paying off his student loans when he graduates.

THE COLLEGE STUDENT

Jessica is a 24-year-old nontraditional college student who is only halfway though her college program. She has been working full-time since high school to pay for her college education. Jessica is looking into purchasing her own insurance policy, since she is no longer covered by her parents plan. A local State Farm agent could provide her with the assistance and security she needs, especially since she does not have a solid understanding of insurance features.

THE Non-traditional STUDENT

Ann is 24 years old and is the head of her household; one of 3.3 million in the U.S. population of young adults. She graduated from college and has a sustainable job, is reducing loan debt and maintaining a successful career. She desires the quality of trust and support for her family and is unsure of which company would be the best fit.

THE WORKING PROFESSIONAL

9SITUATION ANALYSIS

BACKGROUND Founded in 1931, Allstate is the largest publicly held personal insurance line in the U.S. Allstate provides its products to their customers in a variety of ways including agents, banks, and brokers. In total, Allstate sells 13 different lines of insurance including auto, life, and commercial as well as offers services such as banking, retirement and investment options for its clients. POSITIONING Allstates tagline Youre in Good Hands with Allstate gives a very strong platform for its creative strategy. Its current campaign, Our Stand, features commercials lead by their spokesperson in real life events ranging from high school dances to football tailgating. The commercials feature straightforward messages emphasizing the benefits Allstate offers to its customers and the advantages and savings individuals can reap by switching insurance providers. STRENGTHS Allstate is currently the second leading provider of personal property and casualty insurance in the nation. As a result, Allstate holds a strong market share within the industry. Recently, the companys financial ratings have increased, causing the companys credibility to grow within consumers minds. Along with their established credibility, Allstate offers its clients a wide selection of products and services which has expanded their customer reach. WEAKNESSES Allstates decision to add additional products to their line has produced negative side effects, lessening the profits of the company as a whole. This, paired with the downturn in the economy, in 2008, resulted in a decrease in Allstates policies. With premiums decreasing, the available budget left for advertising is threatened.

BACKGROUND Originally the Government Employees Insurance Company, founders Leo and Lillian Goodwin set out to establish an insurance company for U.S. government and military personnel. From its inception in 1936, GEICO has become the fastest-growing major auto insurance provider in the country. In 1995, Warren Buffet and his investment firm, Berkshire Hathaway, purchased GEICO stock, making it one of its subsidiaries. This transition had a profound increase on the amount of GEICOs advertising, resulting in a large period of growth for the company. POSITIONING GEICO often uses humor as a prominent force behind their advertising. Past campaigns have used 3-D animation in the form of the GEICO gecko and the GEICO cavemen, using the tagline GEICO: So Easy a Caveman Could Do It. Many of the early advertisements operated under the tagline 15 Minutes Could Save You 15 percent or More on Car Insurance. STRENGTHS GEICO offers a wide range of products to its customers including auto, life, overseas, motorcycle, home owner, renters, mobile home, flood, umbrella, and boat insurance as well as emergency roadside assistance. This diversification helps the insurance provider appeal to a wide group of potential consumers. WEAKNESSES Using humor in its advertisements has gained brand recognition for GEICO, but the companys credibility has not been reinforced. The young and fun feel of GEICO may not appeal to all consumers. As a result, they are isolating a segment of their market through this approach.

Founded in 1998 under the name Sierra Holdings Inc., Esurance began accepting auto insurance polices in 1999. Though it is now a private insurer under the White Mountains Insurance Group, the San Francisco-based company employs roughly 1,700 workers. In 2008, revenue totaled $826 million after having spent only $120 million on advertising the previous year. Esurance is currently licensed to sell insurance in 30 U.S. states. Erin Esurance, their animated superhero spokeswoman, was designed to contrast an industry that is largely perceived to be dry and intimidating. The company also positions themselves as being more environmentally conscious than their competitors by making statements and payments available online.

Allstate Geico

ESURANCE

COMPETITIVEANALYSIS

10

SITUATION ANALYSIS

BACKGROUND Progressive Mutual Insurance Company was founded in 1937 by Joseph Lewis and Jack Green. Almost two decades later, in 1958, they added Progressive Casualty Company to add auto insurance to their products. The Progressive Corporation was formed in 1965 and the company went public in 1971.

POSITIONING Progressive also uses humor as a foundation for their advertising strategy. Progressives spokeswoman, Flo, is a bold, fun-loving personality who dominates their commercials. During these spots, Progressive gives shape to a virtual shopping experience where the consumer is in charge, emphasizing the customization options available and the affordability that Progressive can offer. Progressives tagline, Now Thats Progressive, highlights their direct-insurer model which has easy accessibility for consumers.

STRENGTHS Progressive is widely accepted by consumers, which gives the company a strong position within the auto insurance industry. Progressive has also lead the market in motorcycle insurance since 1998. Having strong positions in both markets is a testament to Progressives brand recognition and customer loyalty. In 2008, Progressive received a patent for the new approach they invented to handle automotive insurance claims. Customers can now bring their vehicles to one of Progressives claim sites and pick up a rental vehicle while the representative writes up a quote, schedules repairs and handles the business end of the insurance claim for the client. This process has increased Progressives customer satisfaction and overall productivity, giving them a positive stock in consumers minds. WEAKNESSES Due to its size, Progressive has difficulty competing with larger businesses. This disadvantage, paired with the poor performance the company showed over the course of 2008, may potentially hurt the companys credibility in the minds of its consumers. Lower revenues will eventually decrease the available advertising budget.

With annual revenue of approximately $21 billion in 2008, Columbus, Ohios Nationwide Mutual Insurance Company began as the Ohio Farm Bureau Federation. Nationwide is heavily involved with the world of American sports. They are accredited with bringing Columbus NHL franchise to town and, afterward, becoming a title sponsor on the NASCAR Nationwide Series. Nationwide spent a total of $80 million on advertising in 2007, making them a formidable competitor in the field of agent-based insurers.

Safe Auto was founded in 1993 and is headquartered in Columbus, Ohio. The company currently serves 14 states and its average ad spending of $60 million has made the companys jingle infamous among television audiences everywhere. Currently, Safe Autos marketing has been left in the hands of a fictional Safe Auto worker, Justin Case. Its 1,100 employees man the phones 24 hours daily to help fulfill the companys consumer promise to be kept Legal for Less.

progressive

Nationwide

Safe Auto

11

PRIMARY RESEARCH

Shark Attack conducted five focus groups with participants, aged 18-25, to learn more about their perceptions of State Farm and the insurance industry. Some individuals were knowledgeable about the basics of insurance, while others did not have any experience with insurance. Many participants seemed to rate the top insurance companies by their familiarity with their advertising. Quality and price was more important for those who a had a vague knowledge of insurance, usually purchasing insurance after conducting research. The participants in our focus groups did however agree that auto insurance is necessary; though, a few people believed renters insurance was not.

By conducting 25 one-on-one interviews, our team was able to gain a greater insight of the targets current perceptions of State Farm and their familiarity of the insurance industry as a whole. Looking outside the target market, Shark Attack also managed to interview career-oriented males and females aged 23-28, who may have graduated from college, started a career, and/or family, in order to obtain information about how they purchased insurance and their thought process while doing so.

FOCUS GROUPS

One-on-one Interviews

We collected 100 surveys from within the target to gain a greater insight of their media consumption, current perceptions of State Farm Insurance and their competitors. We learned

that when advertising auto insurance, evening television and promotional giveaways or sponsorships were the most influential. The most surprising finding of our survey concerned the preferred structure of managing auto insurance. 52 percent of respondents preferred

agent-based models, with a local agent managing the account. Only 46 percent of the surveyed target preferred the direct-based model, managing their account strictly online or over the phone.

SURVEYS

We conducted three agent interviews to complete our primary research. These interviews were done in an effort to collect further information about the insurance industry, giving us an additional perspective to take into account for our campaign. Learning more about the daily business that is conducted between State Farm Insurance agents and their clients helped our team conceptualize effective advertising.

To gauge the targets response, Shark Attack held concept tests within the various stages of campaign development. The first phase of concept testing was done while the creative executions were still being constructed. Using the groups feedback, our team made the appropriate revisions and used several participants suggestions in further executions. Testing was also completed once the executions were more concrete, again the suggestions were taken into consideration and final corrections were made.

AGENT INTERVIEWS

CONCEPT TESTs

RECOGNIZABLE

FUN/FRESH

EXPERIENCE

TRUSTWORTHY

AFFORDABLE

PREMIUMCUSTOMIZABLE

STRUCTURED

PRACTICAL

D

Brand perception

SURVEYS 100FOCUS GROUPS 5

ONE-ON-ONE INTERVIEWS 25

AGENT INTERVIEWS 3

CONCEPT TESTS 2

STATE FARM ALLSTATE GEICO PROGRESSIVE

12

PROBLEMS & OPPORTUNITIES

Target market is extremely price sensitive.

State Farm lacks awareness and recognition within the target market.

Though agent-based and direct-based model are equally appealing, it is perceived that agent-based insurance models are at a disadvantage because of the inaccessibility of agents during nights and weekends.

Statistics show that half of young adults switch insurance providers within the first year due to dissatisfaction with service, specifically because the way they were treated and for price concerns.

The target is not interested in learning about or researching insurance options.

State Farms current client base is aging at an accelerated rate.

The target has a skeptical perception about where to place their trust in products or services concerning insurance providers.

Many insurance companies target the Caucasian majority, when in actuality 37 percent of the target population is not actually Caucasian. Multicultural young adults comprise more of the population which State Farm Insurance is targeting.

State Farms key competitors offer very similar services and coverage lines.

Many members of the target are reluctant to ask for advice, especially concerning financial problems.

Persuade the target to take action and visit StateFarmStrong.com, where the available bundle packages and discounts will be featured.

Highlight State Farms experience and history while implementing a humorous and straightforward advertising campaign that appeals to the target market.

Disseminate through StateFarmStrong.com that State Farm Insurance agents are available over the course of nights and weekends, altering the current perception.

State Farm Insurance can increase the awareness of agent-based insurance benefits and how they strive for their clients not to feel like a number. StateFarmStrong.com will give the target information and different options which potential policy holders can browse through.

State Farm Insurance has the ability to educate its target in an effective manner that will hopefully build brand recognition and provide a connection between State Farm Insurance and new clients.

With Keep Goin Strong, start to target current 18-25-year-olds, Echo Boomers, who comprise the largest generation since the Baby Boomers.

Present information to the target rather than make it their responsibility to conduct research.

Construct creative executions which connect with individuals from any cultural or ethnic background.

Utilize advertising media that reduces the impact of clutter by competitors clutter.

Create a campaign that is friendly and welcoming to new policy holders.

PROBLEMS OPPORTUNITIES

13

State Farms overall goal is to gain a fair share of the young adult market by changing the perception of State Farm among young adults, which will then lead to consideration of the brand and purchase.

To increase consumption and knowledge of State Farm auto and renters insurance within the target 18-25-year-olds.

To contemporize State Farm Insurance and make the company top-of-mind for 18-25-year-olds.

To increase brand recognition and preference over the competition. To increase trust and loyalty with current and prospective policy holders. To establish State Farm as the preferred insurance company and maintain its position as

the number one auto insurance provider.

DEMOGRAPHICS Keep Goin Strongs primary target are the approximately 17 million independent young adults currently living in the U.S. This group extremely diverse they are more accepting of other cultures and lifestyles than the generations before them and are composed of a wider range of ethnicities. 60 percent of the target identify themselves as college students and 56 percent claim to work full-time. Children of parents who are already State Farm Insurance customers are our secondary target, called legacies. These parents have a great deal of influence on the purchase of insurance, making them Keep Goin Strongs tertiary target.

PSYCHOGRAPHICS The primary target is driven and technology-savvy. Their youthful demeanor has made them skeptical about putting too much trust in a particular company. Use of student loans and limited income has forced many members of the target to spend their earnings very conservatively and insurance is typically brushed to the bottom of their priority list. As a result, its difficult to engage the target in a discussion about preparing for the unexpected, especially when money is involved.

The target uses a vary of media channels on a daily basis. Over-saturation and clutter in advertising has become a serious concern when given the challenge of reaching these individuals. Both the primary and secondary target prefer to conduct insurance-related business online or over the phone. When problems arise, however, they are more prone to call a representative than dig for answers on untrusted Web sites.

GEOGRAPHICS Keep Goin Strong is a national campaign with an increased emphasis on seven DMAs in California, Florida, Illinois, New York, Ohio, Pennsylvania and Texas. These DMAs have the highest populations of independent young adults (aged 18-25). State Farm Insurance is one of few insurers licensed to sell products and cover their clients in all 50 U.S. states.

State Farms advertising goal is to develop a fully integrated marketing communications program to change the perception of State Farm.

COGNITIVE To gain interest and better educate the target about auto and renters insurance.

AFFECTIVE To convince the target that State Farm Insurance is not only an insurance company, but also a straightforward friend who will encourage consumers to persevere.

CONATIVE To stimulate the target to choose State Farm Insurance as their auto and renters insurance provider and to eventually become loyal brand consumers.

BUSINESS OBJECTIVES TARGET MARKET

ADVERTISING OBJECTIVES

Life happens. State farm insurance will be there through it all with the friendly service and security you deserve. With the agent-based program, you are bound to Keep Goin Strong.

CONSUMER PROMISE

CREATIVE STRATEGY

14

CREATIVE STRATEGY

KEY COMPETITORS GEICO, Allstate and ProgressiveSECONDARY COMPETITORS Esurance, Nationwide and Safe Auto

State Farm currently leads the market in auto and renters insurance. When it comes to the brands perception among young adults, however, State Farm Insurance, lags behind its competitors. Several competitors take advantage of direct-insurer models, which base their customer support around call centers the Internet. This indirect approach appeals to our technology-savvy target. State Farm, on the other hand, along with one of its top competitors, Allstate, believe that agents are an essential part of insurance experience. These insurance companies practice agent-based management models and focus on offering a more direct approach by using agents to answer questions and provide advice.

State Farm Insurance is currently positioned as the number one auto and renters insurance company. While most young adults describe State Farm Insurance as a company, they often see it as an old-fashioned, expensive brand for more established adults. These perceptions can make young adults feel that State Farm Insurance is out of touch with people their age and, therefore, not an viable insurance option. The desired consumer perception is to be a top-of-mind consideration, to be friendly and to be straightforward.

Primary research showed that young adults perceive State Farm Insurance to be dated and incompatible with their lifestyle. The target does not understand the value and guidance that an agent can provide and is hesitant to initiate personal contact when they are used to doing business in more impersonal ways. Therefore, positioning State Farm Insurance as a contemporary and upbeat insurance company will create awareness and amusement. Keep Goin Strong will make State Farm Insurance a top-of-mind option for young adults.

COMPETITIVE FRAME POSITIONING

Executions are shocking and humorous but followed by a strong and uplifting message: Keep Goin Strong. Applying this concepts to the target market will change the perception of State Farm Insurance among young adults and position the brand in the top of the consumers mind

Be introduced to an agent who will work with you to customize your insurance plan. We will take care of your needs at your level and for a better value. We can handle any problem today to keep you going strong. Online convenience and over the phone 24 hours daily. We make it personal because we have been there. We want you to Keep Goin Strong.

TONE AND MANNER

Claim SupportThrough lifes big and small moments, everyone needs a good neighbor. Whether its being hit in the face, falling down the stairs or your first little fender bender, State Farm Insurance will keep their customers going. State Farm supports their clients during their weak moments, making them strong so that no matter what life may throw at them, State Farm help will them Keep Goin Strong.

The BIG IDEA

15

MEDIA PLAN

TARGETReach independent 18-25-year-olds, including Hispanics, African Americans and Asian Americans responsible for 50 percent or more of their living expenses.

Allocate a large percentage of media spending towards non-traditional placements that match the targets media consumption. Our campaign will pair non-traditional media placements with traditional vehicles such as college newspapers, national magazines and network television.

GEOGRAPHIC Implement a national campaign that emphasizes the states that contain the highest populations of the target markets. Emphasize media placements within the following states: Texas, Florida, Illinois, New York, Ohio, Pennsylvania, and California.

SEASONALITY Create a campaign that extends from May 2010 to May 2011, keeping the creative message current with each execution. Pay close attention to special events and scheduled media placements within the duration of the campaign year, tailoring advertisements accordingly.

REACH AND FREQUENCY

Reach approximately 60 percent of our primary target within the first half of the campaign with an average frequency of four. Reach 30 percent of our secondary target and 10 percent of our tertiary target by accounting for media overlap.

Place advertisements in a variety of mediums in an attempt to not only obtain our target reach but also to maintain our desired frequency.

SCHEDULINGMaintain a consistent presence throughout the duration of the campaign year with a heightened emphasis during months of special interest.

Buy media in a pulsing schedule, advertising in each month with an amount during peak times.

CREATIVE Reach a target that has become desensitized to advertising efforts in over-saturated, cluttered media. Advertise in new and innovative outlets to effectively gain attention from our target audience.

BUDGET Effectively allocate 53 percent of the total budget toward media placements. $21 million will be budgeted towards media placement with spending broken down as such: $2 million in collegiate newspapers, $4 million in Internet, $2.5 million in national magazines, $5 million in network television, $1 million in Web players and $1 million in mobile.

OBJECTIVE STRATEGY

16

MEDIA PLAN

TELEVISIONNETWORK VEHICLE LENGTH DAYPART FREQ MONTHS REACH CPP RP CPM TOTAL COST

ABC Desperate Housewives :30 Primetime 8p-11p 5 9 (Sept - May) 13,951,000 $23,171.00 5.6 $9.30 $648,788.00

ABC Greys Anatomy :30 Primetime 8p-11p 5 9 (Sept - May) 13,795,000 $23,171.00 5.6 $9.41 $648,788.00

CBS The Big Bang Theory :30 Primetime 8p-11p 5 9 (Sept - May) 12,729,000 $23,171.00 5.8 $10.56 $671,959.00

CBS March Madness :30 Primetime 8p-11p 3 2 (March - Apr) 11,100,000 $23,171.00 6.5 $13.57 $451,834.50

NBC The Office :30 Primetime 8p-11p 5 9 (Sept - May) 5,590,000 $23,171.00 4.2 $17.41 $486,591.00

NBC Sunday Night Football :30 Primetime 8p-11p 3 5 (Sept - Jan) 21,560,000 $23,171.00 9.1 $9.78 $1,054,280.50

FOX Family Guy :30 Primetime 8p-11p 5 9 (Sept - May) 7,382,000 $23,171.00 3.7 $11.61 $428,663.50

FOX House :30 Primetime 8p-11p 5 9 (Sept - May) 3,910,000 $23,171.00 1.5 $8.89 $173,782.50

FOX World Series :30 Primetime 8p-11p 3 2 (Oct - Nov) 7,641,000 $23,171.00 5.8 $17.59 $403,175.40

THE CW Americas Next Top Model :30 Primetime 8p-11p 5 4 (May - Sept) 3,960,000 $23,171.00 1.7 $9.95 $196,953.50

THE CW Vampire Diaries :30 Primetime 8p-11p 5 9 (Sept - May) 4,113,000 $23,171.00 1.8 $10.14 $208,539.00

TOTAL $5,373,354.90

25.59 percent of the media budget was allocated to network television. By broadcasting State Farms Keep Goin Strong campaign to a nationally diverse audience, we will increase awareness within different demographics. Our vehicle selections consist of television programs that target both males and females. Network television is an excellent way to reach a large percentage of our target. These 30-second spots will run throughout the length of the campaign year to increase awareness of State Farm Insurance and to contemporize the brand.

RATIONALE: Network Television $5,373,354.90

17

MEDIA PLAN

DMA STATION FORMAT DAYPART FREQ LENGTH CUME GRPS CPP COST/SPOT AQH (%) COSTChicago WGCI-FM Urban M-F 3-7 PM 60 :30 6.5 390 $252.78 $682.50 2.7 $98,584.00

Chicago WKSC-FM CHR M-F 6-10 AM 60 :30 6.7 402 $210.64 $737.25 3.5 $84,677.00

Cleveland WENZ-FM Urban M-F 3-7 PM 60 :30 6.5 390 $252.78 $682.50 2.7 $98,584.00

Cleveland WGAR-FM Country M-F 6-10 AM 60 :30 5.9 354 $210.64 $737.25 3.5 $74,567.00

Houston KHMX-FM Hot AC M-F 6-10 AM 60 :30 3.8 228 $210.64 $737.25 3.5 $48,026.00

Houston KTHT-FM Country M-F 6-10 AM 60 :30 5.9 354 $210.64 $737.25 3.5 $74,567.00

Los Angeles KDAY-FM Urban M-F 3-7 PM 60 :30 6.5 390 $252.78 $682.50 2.7 $98,584.00

Los Angeles KIIS-FM CHR M-F 6-10 AM 60 :30 6.7 402 $210.64 $737.25 3.5 $84,677.00

Miami WLRN-FM AC M-F 6-10 AM 60 :30 5.8 348 $210.64 $737.25 3.5 $73,303.00

Miami WAMR-FM Spanish M-F 6-10 AM 60 :30 3.1 186 $210.64 $737.25 3.5 $39,179.00

New York City WWPR-FM Urban M-F 3-7 PM 60 :30 6.5 390 $252.78 $682.50 2.7 $98,584.00

New York City WXRK-FM Rock M-F 3-7 PM 60 :30 4.5 270 $252.78 $682.50 2.7 $68,251.00

Philadelphia WXTU-FM Country M-F 6-10 AM 60 :30 5.9 354 $210.64 $737.25 3.5 $74,567.00

Philadelphia WIOQ-FM CHR M-F 6-10 AM 60 :30 6.7 390 $210.64 $737.25 3.5 $98,584.00

TOTAL $1,114,734.00

RADIO

5.31 percent of the media budget was allocated to the top two radio stations in the DMAs with the highest population of 18-25-year-olds. We chose to utilize radio advertisements to primarily announce and promote our IMC events. Choosing a morning daypart targets independent young adults on early commutes to work or school. An evening daypart increases exposure in other segments that may have been missed by morning advertisements. From hip-hop to country, adult contemporary to Spanish-language radio, our target will recognize State Farms Keep Goin Strong campaign as modern and fresh. Through the radio executions, State Farm Insurance will create awareness of their brand and attract the target to attend IMC events.

RATIONALE: Radio $1,114,734

18

MEDIA PLAN

MAGAZINE CIRCULATION INSERTS AD SIZE GRIMPS COST/INSERT CPM COSTSports Illustrated 3,218,133 5 Full Page/4C 16,090,665 $320,000.00 $99.44 $1,600,000.00Glamour 2,290,452 5 Full Page/4C 11,452,260 $170,080.00 $74.26 $850,400.00Shape 1,701,028 5 Full Page/4C 8,505,140 $162,000.00 $95.24 $810,000.00TOTAL $3,260,400.00

MAGAZINE

15.53 percent of the media budget was allocated to national magazines. Magazine insertions are an excellent way to target a national audience and because of their circulation and extended shelf life. Throughout the year, these advertisements will complement other traditional placements in order to build State Farms brand awareness and work to change the perception of young adults. While the majority of the target does not have yearly magazine subscriptions, we chose to advertise during special interest months.

RATIONALE: Magazine

8.72 percent of the media budget was allocated for college newspapers. This category is most effective at reaching the college students who comprise 60 percent of our target. It is estimated that nearly 95 percent of college students read their school newspapers and that there is almost no other print competitor on college campuses. We chose universities and colleges with the highest enrollment and attempted to reach at least one school in most states. The placements will coincide with various IMC events happening on and around the respective campuses. In total, we chose to advertise in 50 college newspapers with 20 full-page, four-color ads.

RATIONALE: College Newspaper

$3,260,400

1,831,649.80

19

MEDIA PLAN

SCHOOL/ LOCATION OF CAMPUS DMA ENROLLMENT COST/INSERT INSERTIONS TOTAL

Arizona State University - Tempe, AZ Phoenix, AZ 53,298 $2,031.00 20 $40,620.00

Auburn University - Auburn, AL Montgomery, AL 24,602 $1,722.00 20 $34,440.00

Brigham Young University - Salt Lake City, UT Salt Lake City, UT 35,000 $615.00 20 $12,300.00

California State University - Fullerton, CA Los Angeles, CA 37,765 $1,834.80 20 $36,696.00

California State University - Long Beach, CA Los Angeles, CA 34,715 $1,620.00 20 $32,400.00

Colorado State University - Fort Collins, CO Denver, CO 25,000 $976.00 20 $19,520.00

Florida International University - Miami, FL Miami, FL 39,000 $1,161.76 20 $23,235.20

Florida State University - Tallahassee, FL Tallahassee, FL 39,136 $2,588.00 20 $51,760.00

George Mason University - Fairfax, VA Washington, DC 30,714 $1,024.00 20 $20,480.00

Indiana University - Bloomington, IN Indianapolis, IN 38,990 $2,884.32 20 $57,686.40

Iowa State University - Ames, IA Des Moines, IA 28,000 $1,974.00 20 $39,480.00

Kansas State University - Manhattan, KS Topeka, KS 23,000 $2,067.00 20 $41,340.00

Louisiana State University - Baton Rouge, LA Baton Rouge, LA 28,019 $1,167.50 20 $23,350.00

Michigan State University - East Lansing, MI Lansing, MI 46,648 $2,288.00 20 $45,760.00

New York University - New York City New York, NY 54,919 $1,692.71 20 $33,854.20

North Carolina State University - Raleigh, NC Raleigh-Durham, NC 31,000 $1,683.75 20 $33,675.00

Northeastern University - Boston, MA Boston, MA 15,521 $1,435.00 20 $28,700.00

Ohio State University - Columbus, OH Columbus, OH 53,715 $1,438.80 20 $28,776.00

Oklahoma State University - Stillwater, OK Oklahoma City, OK 23,844 $1,326.00 20 $26,520.00

Pennsylvania State University - University Park, PA Johnstown-Altoona, PA 43,998 $2,049.00 20 $40,980.00

Portland State University - Portland, OR Portland, OR 26,587 $1,128.40 20 $22,568.00

Purdue University - West Lafayette, IN Lafayette, IN 40,090 $2,474.04 20 $49,480.80

Rutgers University - New Brunswick, NY New York, NY 52,470 $920.00 20 $18,400.00

University of Arizona - Tucson, AZ Tucson, AZ 38,680 $2,245.50 20 $44,910.00

University of California - Los Angeles Los Angeles, CA 39,650 $3,029.48 20 $60,589.60

University of California - Berkeley, CA San Francisco, CA 35,409 $2,502.00 20 $50,040.00

College Newspapers

20

MEDIA PLAN

SCHOOL/ LOCATION OF CAMPUS DMA ENROLLMENT COST/INSERT INSERTIONS TOTAL

University of Colorado - Boulder, CO Denver, CO 32,191 $1,299.00 20 $25,980.00

University of Conneticut - Storrs, CT Hartford, CT 29,383 $1,560.00 20 $31,200.00

University of Florida - Gainesville, FL Gainesville, FL 50,000 $2,715.00 20 $34,300.00

University of Georgia - Athens, GA Atlanta, GA 34,180 $2,256.30 20 $45,126.00

University of Illinois - Champaign, IL Champaign, IL 41,918 $3,151.75 20 $63,035.00

University of Iowa - Cedar Rapids, IA Cedar Rapids, IL 30,000 $4,112.76 20 $82,255.20

University of Kansas - Lawrence, KS Kansas City, MO 30,102 $1,769.40 20 $35,388.00

University of Kentucky - Lexington, KY Lexington, KY 26,913 $1,452.90 20 $29,058.00

University of Minnesota - St. Paul, MN Minneapolis-St. Paul, MN 50,883 $1,778.60 20 $35,572.00

University of Missouri - Columbia, MO Jefferson City, MO 30,200 $1,180.00 20 $23,600.00

University of Nebraska - Lincoln, NE Lincoln, NE 24,100 $2,215.20 20 $44,304.00

University of Nevada - Las Vegas, NV Las Vegas, NV 28,000 $1,560.00 20 $31,200.00

University of New Mexico - Santa Fe, NM Santa Fe, NM 20,864 $1,630.00 20 $32,600.00

University of North Carolina - Chapel Hill, NC Raleigh-Durham, NC 28,567 $2,493.00 20 $49,860.00

University of South Carolina - Columbia, SC Columbia, SC 27,994 $1,452.12 20 $29,042.40

University of South Florida - Tampa, FL Tampa, FL 39,852 $1,200.00 20 $24,000.00

University of Tennessee - Knoxville, TN Knoxville, TN 26,476 $1,656.00 20 $33,120.00

University of Texas - Austin, TX Austin, TX 50,170 $3,657.16 20 $73,143.20

University of Utah - Salt Lake City, UT Salt Lake City, UT 29,284 $2,186.00 20 $43,720.00

University of Washington - Seattle, WA Seattle-Tacoma, WA 42,933 $1,740.00 20 $34,800.00

University of Wisconsin - Madison, WI Madison, WI 42,030 $1,505.20 20 $30,104.00

University of Southern California - Los Angeles Los Angeles, CA 33,500 $1,495.00 20 $29,900.00

Virginia Commonwealth University - Richmond, VA Richmond-Petersburg, VA 32,000 $441.76 20 $8,835.20

Virginia Poly and State University - Blacksburg, VA Roanoke-Lynchburg, VA 30,739 $2,197.28 20 $43,945.60

TOTAL $1,831,649.80

College Newspapers

21

MEDIA PLAN

LOCATION GRIMPS/MONTH# OF AREAS

# OF MONTHS

COST/DEVICE COST

Cleveland, OH 682,200 10 12 $1,000.00 $120,000.00

Chicago, IL 1,822,918 10 12 $1,000.00 $120,000.00

Los Angeles, CA 2,304,369 10 12 $1,000.00 $120,000.00

Miami, FL 1,666,666 10 12 $1,000.00 $120,000.00

New York, NY 1,666,666 10 12 $1,000.00 $120,000.00

Philadelphia, PA 700,000 10 12 $1,000.00 $120,000.00

Houston, TX 1,500,000 10 12 $1,000.00 $120,000.00

Atlanta, GA 916,667 10 12 $1,000.00 $120,000.00

Boston, MA 416,667 10 12 $1,000.00 $120,000.00

El Paso, TX 516,000 10 12 $1,000.00 $120,000.00

Las Vegas, NV 1,100,000 10 12 $1,000.00 $120,000.00

Milwaukee, WI 600,000 10 12 $1,000.00 $120,000.00

Minneapolis, MN 1,266,700 10 12 $1,000.00 $120,000.00

Tampa, FL 400,000 10 12 $1,000.00 $120,000.00

Wichita, KS 347,000 10 12 $1,000.00 $120,000.00

Memphis, TN 543,000 10 12 $1,000.00 $120,000.00

TOTAL $1,920,000.00

MOBILE

VEHICLE GROSSIMPRESSIONSCOST MONTH MONTHS COST

Airport Ads 4,500,000 $37,500.00 4 $150,000.00

Brand Baseball 50,000 $15,625.00 4 $62,500.00

Bus Ads 1,000,000 $10,000.00 12 $120,000.00

Cell Phone Decals 50,000 $25,000.00 4 $100,000.00

Chair Ads 50,000 $15,625.00 4 $62,500.00

Grocery Cart Ads 400,000 $10,000.00 12 $120,000.00

Mall Kiosk Ads 7,450,000 $600,000.00 12 $720,000.00

Office Clings 1,000,000 $25,000.00 6 $150,000.00

Stair Ads 1,000,000 $10,000.00 12 $120,000.00

Toilet Clings 1,000,000 $5,000.00 6 $30,000.00

Transit Ads 1,000,000 $10,000.00 12 $120,000.00

TOTAL $1,755,000.00

Out-Of-Home

8.36 percent of the media budget was allocated to out-of-home advertising, all considered to be non-traditional placements. Keep Goin Strong will attract the target in an effective and creative way, using uncluttered mediums to invoke humor and express the big idea in a creative, fresh way.

RATIONALE:Out-Of-Home

9.14 percent of the media budget was allocated to mobile advertising, one of the most exciting new mediums in the U.S. today. In the selected seven DMAs, the Keep Goin Strong campaign will place mobile Bluetooth devices in public places such as shopping malls, bars and transit stations.

RATIONALE: Mobile $1,920,000

$1,755,000

22

MEDIA PLAN

WEB Players

VEHICLE SHOW LENGTH # OF EPISODES IMPRESSIONS GROSSIMPRESSIONS CPMCOST/EPISODE COST

ABC.com Grey's Anatomy :15 15 200,000 800,000 $23.00 $4,600.00 $69,000.00

Desperate Housewives :15 15 200,000 800,000 $23.00 $4,600.00 $69,000.00

CBS.com The Big Bang Theory :15 15 200,000 800,000 $19.00 $3,800.00 $57,000.00

How I Met Your Mother :15 15 200,000 800,000 $19.00 $3,800.00 $57,000.00

CWTV.com Gossip Girls :15 15 200,000 800,000 $15.00 $3,000.00 $45,000.00

Vampire Diaries :15 8 200,000 800,000 $15.00 $3,000.00 $24,000.00

FOX.com Family Guy :15 15 200,000 800,000 $20.00 $4,000.00 $60,000.00

House :15 15 200,000 800,000 $21.00 $4,100.00 $63,000.00

NBC.com The Office :15 15 200,000 800,000 $23.00 $4,600.00 $69,000.00

Heroes :15 15 200,000 800,000 $17.00 $3,400.00 $51,000.00

TOTAL $564,000.00

2.69 percent of the media budget was allocated to Web players. These efficient, far reaching placements will appear on the NBC, ABC, CBS, CWTV, and FOX Web sites and will be shown to viewers of the targets most popular shows.

RATIONALE: Web Players

$564,000

23

MEDIA PLAN

VEHICLE COST/CLICK MONTHS CLICKS COST

GOOGLE $0.40 12 150,000 $720,000.00

YAHOO! $0.40 12 150,000 $720,000.00

MSN $0.40 12 150,000 $720,000.00

TOTAL $2,160,000.00

WEB PAGE IMP/MONTH GRIMPS CPMCOST/MONTH COST

GOOGLE.COM 300,000 3,600,000 $10.00 $3,000.00 $36,000.00

YAHOO.COM 300,000 3,600,000 $10.00 $3,000.00 $36,000.00

YOUTUBE.COM 300,000 3,600,000 $10.00 $3,000.00 $36,000.00

FACEBOOK.COM 300,000 3,600,000 $10.00 $3,000.00 $36,000.00

MSN.COM 300,000 3,600,000 $10.00 $3,000.00 $36,000.00

LIVE.COM 300,000 3,600,000 $10.00 $3,000.00 $36,000.00

WIKIPEDIA.ORG 300,000 3,600,000 $10.00 $3,000.00 $36,000.00

MYSPACE.COM 300,000 3,600,000 $10.00 $3,000.00 $36,000.00

BING.COM 300,000 3,600,000 $10.00 $3,000.00 $36,000.00

AOL.COM 300,000 3,600,000 $10.00 $3,000.00 $36,000.00

MICROSOFT.COM 300,000 3,600,000 $10.00 $3,000.00 $36,000.00

AMAZON.COM 300,000 3,600,000 $9.25 $2,775.00 $33,300.00

BLOGGER.COM 300,000 3,600,000 $9.25 $2,775.00 $33,300.00

EBAY.COM 300,000 3,600,000 $9.25 $2,775.00 $33,300.00

ASK.COM 300,000 3,600,000 $9.25 $2,775.00 $33,300.00

WIKIANSWERS.COM 300,000 3,600,000 $9.25 $2,775.00 $33,300.00

CRAIGSLIST.ORG 300,000 3,600,000 $9.25 $2,775.00 $33,300.00

GO.COM 300,000 3,600,000 $9.25 $2,775.00 $33,300.00

ABOUT.COM 300,000 3,600,000 $9.25 $2,775.00 $33,300.00

EHOW.COM 300,000 3,600,000 $8.75 $2,775.00 $31,500.00

MAPQUEST.COM 300,000 3,600,000 $9.25 $2,775.00 $33,300.00

APPLE.COM 300,000 3,600,000 $9.25 $2,775.00 $33,300.00

ADOBE.COM 300,000 3,600,000 $9.25 $2,775.00 $33,300.00

WORDPRESS.COM 300,000 3,600,000 $8.75 $2,625.00 $31,500.00

MSNBC.COM 300,000 3,600,000 $8.75 $2,625.00 $31,500.00

WALMART.COM 300,000 3,600,000 $8.75 $2,625.00 $31,500.00

TARGET.COM 300,000 3,600,000 $8.75 $2,625.00 $31,500.00

FLICKR.COM 300,000 3,600,000 $8.75 $2,625.00 $31,500.00

DICTIONARY.COM 300,000 3,600,000 $8.75 $2,625.00 $31,500.00

WEATHER.COM 300,000 3,600,000 $8.75 $2,625.00 $31,500.00

MOZILLA.COM 300,000 3,600,000 $8.00 $2,400.00 $28,800.00

ESPN.COM 300,000 3,600,000 $8.00 $2,400.00 $28,800.00

BANKOFAMERICA.COM 300,000 3,600,000 $8.00 $2,400.00 $28,800.00

ATT.COM 300,000 3,600,000 $8.00 $2,400.00 $28,800.00

IMDB.COM 300,000 3,600,000 $8.00 $2,400.00 $28,800.00

ANSWERS.COM 300,000 3,600,000 $8.00 $2,400.00 $28,800.00

LINKEDIN.COM 300,000 3,600,000 $8.00 $2,400.00 $28,800.00

CHASE.COM 300,000 3,600,000 $8.00 $2,400.00 $28,800.00

PHOTOBUCKET.COM 300,000 3,600,000 $8.00 $2,400.00 $28,800.00

MYWEBSEARCH.COM 300,000 3,600,000 $8.00 $2,400.00 $28,800.00

PAYPAL.COM 300,000 3,600,000 $7.25 $2,175.00 $26,100.00

TWITTER.COM 300,000 3,600,000 $7.25 $2,175.00 $26,100.00

CNN.COM 300,000 3,600,000 $7.25 $2,175.00 $26,100.00

CNET.COM 300,000 3,600,000 $7.25 $2,175.00 $26,100.00

YELLOWPAGES.COM 300,000 3,600,000 $7.25 $2,175.00 $26,100.00

M-W.COM 300,000 3,600,000 $7.25 $2,175.00 $26,100.00

VERIZONWIRELESS.COM 300,000 3,600,000 $7.25 $2,175.00 $26,100.00

CAREERBUILDER.COM 300,000 3,600,000 $7.25 $2,175.00 $26,100.00

BBC.CO.UK 300,000 3,600,000 $7.25 $2,175.00 $26,100.00

COMCAST.NET 300,000 3,600,000 $7.25 $2,175.00 $26,100.00

TOTAL $1,563,300.00

Internet

Search engine

24

MEDIA PLAN

17.73 percent of the media budget was allocated to Internet advertising. By purchasing Internet ads through networks like Google and Yahoo!, Keep Goin Strong will be more cost efficient. The plan is to combine the use of both rich media video banners with regular web banners while working with the top search engines to optimize State Farms Web presence.

RATIONALE:Internet

$3,723,300

MEDIA MAY 2010JUN 2010

JUL 2010

AUG 2010

SEP 2010

OCT 2010

NOV 2010

DEC 2010

JAN 2011

FEB 2011

MAR 2011

APR 2011

MAY 2011

Internet

Magazine

Mobile

Newspapers

OOH

Radio

Television

Web Players

Media Flowchart 31% Non-Traditional$7,962,300.00

69% Traditional$11,580,138.70

26% Network Television$ 5,373,354.90

3% Web Player$ 564,000.00

9% Mobile$ 1,920,000.00

5% Radio$ 1,114,734.00

16% Magazine$ 3,260,400.00

18% Internet$ 3,723,300.00

9% College Newspapers$ 1,831,649.80

8% OOH$ 1,755,000.00

7% Contingency$1,457,561.30

25

CREATIVE EXECUTIONS

KEEP GOIN ST

RONG

Sometimes, transitions in life can feel like a wipeout down a flight of

stairs. But, with the friendly, good neighbor-like attention from State

Farm, you can feel secure during lifes less glamorous moments.

Contact your local agent or visit StateFarmStrong.com to find out how you can Keep Goin Strong.

THAT THIRD STEP IS A DOOZY...

Like a good neighbor,State Farm is there.

NEWSPAPER OR MAGAZINE PLACEMENT

10%Tertiary

60%Primary

30%Secondary

BRAND BASEBALLS Throughout the first part of the summer, brand ambassadors at college, minor and major league baseball games will distribute these window clings in parking lots. Placed on the drivers side windshield, spectators will receive quite the shock when they return to their vehicles after the game. Brand baseballs are popular promotional products among sports fans and will allow for further campaign awareness.

TARGET REACH BREAKDOWN

26

CREATIVE EXECUTIONS

STAIR DECALS Designed to simulate a fallen businessman, complete with briefcase and Web site address. These decals will be placed at the bottoms of stairs and escalators throughout the entire campaign. This will generate positive viral publicity as well as incite humor, setting Keep Goin Strong apart even further from competitors.

BAGGAGE CLAIM By recreating a travel mishap, this non-traditional placement is sure to draw the attention of many, even those outside our primary target. During months where spring break travel is prevalent, brand ambassadors will use empty suitcases and piles of clothes to mimic a situation where the luggages contents have littered an airport baggage claim. By setting these exhibitions up at airports in popular vacation destinations as well as Americas busiest airports, State Farm Insurance will continue to be placed at the top of the targets mind.

BROKEN CELL PHONE DECALS These cell phone decals will be distributed randomly and applied on the pavement and sidewalks of the top seven DMAs and top 50 college campuses. Designed to mimic two types of broken cell phones, these decals draw attention to the Web site and will further promote the campaign tag line and message.

27

CREATIVE EXECUTIONS

WEB BANNER AND RICH MEDIA VIDEO PLACEMENT

28

CREATIVE EXECUTIONS

OFFICE CLINGS This out-of-home application will generate tremendous publicity for the Keep Goin Strong campaign. Imagine walking down a city street, only to be confronted with the image of a computer monitor, dangling from a window several stories up. Still connected by an outlet two floors above. These window clings, will be applied to buildings with the highest foot traffic in the top three DMAs.

TOILET CLINGS At one point or another, it is likely that members of the target will experience a very unfortunate situation: they will drop something valuable in a toilet. Its ugly, its gross, it happens. These State Farm toilet clings are designed to do two things: draw in observers by using tongue-in-cheek humor while still freshening the toilets. Made from colored paradichlorobenzene and styled to look like a common cell phone, the blocks of deodorizing and disinfecting compound will typically dissolve within 60 days of installation. These will be placed in bathrooms of establishments that are typically visited by members of our target: bars, campus locations, fast food restaurants, etc.

29

CREATIVE EXECUTIONS

BUS Full side wrap bus posters will adorn city buses in the top seven DMAs for our target and will serve as a moving reinforcement to the campaigns position: bad things will happen, State Farm Insurance will help you Keep Goin Strong. The entire side of the buses purchased will feature a full-color graphic. Depicting a Honda Civic with its trunk open, its contents will appear to be spilling out behind it as the vehicle travels down the road. This out-of-home delivers a high frequency and reach. The advertisement induces comedic remembrance and is sure to drive target audience members to the Web site.

GROCERY CART Advertising on grocery carts is a logical vehicle because independent young adults often cover the costs of their own groceries. This out-of-home placement utilizes a translucent plastic insert that covers each side of the cart. The siding displays both the StateFarmStrong.com address and a stack of dumbbells, creating a play-on-words while encouraging patrons to Keep Goin Strong.

MALL KIOSKS Year-round placements on the backlit displays of shopping malls offer an interesting shift from usual fashion ads. Humor is drawn from the advertisements they depict petite runway models in compromising situations, proving themselves even more effective if found placed in front of stores like Victorias Secret or other designer boutiques.

30

CREATIVE EXECUTIONS

CHAIR ADS Placed on park and city benches in the top seven DMAs for our target, State Farm Insurance chair ads will depict a humorous situation most people are familiar with: someone showing a little too much skin. These placements are sure to grab the attention of those who encounter it and will only serve to further move State Farm and StateFarmStrong.com to the top of independents minds.

KEEP GOIN ST

RONG

Lifes troubles may make you feel like youve got two wheels off

the ground. Thankfully, the neighborly attention from State Farm

can help bring you back to Earth during those mindless moments.

Contact your local agent or visit StateFarmStrong.comto find out how you can Keep Goin Strong.

WHEN THE SCALES ARENTTIPPED IN YOUR FAVOR...

Like a good neighbor,State Farm is there.

NEWSPAPER OR MAGAZINE PLACEMENT

31

CREATIVE EXECUTIONS

MUSIC AND SEVERAL SLOW-MOTION VIDEOS CLIPS OF SHOCKING, PAINFUL MOMENTS BEGIN...

OTHER COMMERCIALS WILL BE DIFFERENT FOR VARYING PLATFORMS LIKE INTENSE FOOTBALL HITS DURING FOOTBALL SEASON ON ESPN...

THE FITTING MUSIC (IN THIS CASE, JOURNEY - DONT STOP BELIEVING) WILL CONTINUE AS THESE VIDEO CLIPS CONTINUE ONE AFTER THE OTHER...

THE MUSIC WILL FADE TO A LOWER LEVEL AS THE LAST CLIP FINISHES. THE SCREEN WILL FADE RED AND THE LOGO, WEB SITE AND TAGLINE WILL APPEAR AS THE FOLLOWING AUDIO IS READ:

THE VIDEO CLIPS WILL BE HOME VIDEO-TYPE SHOTS THAT THE TARGET EXPERIENCES...

YEAH, LIFE SOMETIMES WINDS UP LIKE THAT. STATE FARM INSURANCE WILL BE THERE THROUGH IT ALL WITH THE FRIENDLY SERVICE AND SECURITY YOU DESERVE. VISIT STATEFARMSTRONG.COM OR CONTACT YOUR LOCAL AGENT TO FIND OUT HOW YOU CAN KEEP GOIN STRONG.

KEEP GOIN STRONG

StateFarmStrong.com

TV STORYBOARD The Keep Goin Strong television commercials will be humorous and entertaining, causing State Farm Insurance to achieve top-of-mind awareness. The clips within the commercials will be modified to pair with the programming that they accompany (sports clips during Sunday Night Football, and so on).

32

INTEGRATED MARKETING COMMUNICATIONS

OBJECTIVE Create a place where the target can go when they are ready to actively research and purchase insurance.

STRATEGY Develop a Web site, StateFarmStrong.com, where information about State Farms offerings can be accessed by the target.

RATIONALE Since overwhelming the target with policies, numbers and statistics is ineffective, becoming top-of-mind gives the target a chance to reach out for more information at their own convenience (at StateFarmStrong.com).

TACTICS StateFarmStrong.com will require visitors to create a username and password. Once a user, the target will have access to everything from an online money organizer to entertainment videos. This site will have all the information that our target will need to transfer into becoming an independent policyholder. These features will also be available on mobile devices. Through the site, there will be several opportunities for the target to win prizes and entertain themselves with other users video uploads.

StateFarmstrong.com

STATEFARMSTRONG.COM

KEEP GOIN STRONG VIDEO OF THE DAYBRING STATE FARMTO YOUR CITY:

Indianapolis, IN

Nashville, TN

Portland, OR

Seattle, WA

SKATEBOARD TRICKGONE WRONG...This months Keep Goin Strong video winner

comes to us from Little Rock, AR. The winner

received a free day at the spa including a full body

massage. Judging by this video, it looks like he

needed it...

HOME INSURANCE PLANS EVENTS VIDEOS GIVE-A-WAYS VOTING

username passwordParentsCLICK!

33

OBJECTIVE Increase awareness of State Farms Keep Goin Strong by being present at tailgating events during college footballs major rivalry games.

STRATEGY Engage the target by hosting State Farm-sponsored events that allow tailgaters to learn their insurance products and services.

RATIONALE Being present at these major games will create awareness and introduce college students to StateFarmStrong.com before they assume the responsibilities of purchasing their own insurance.

TACTICS State Farm brand ambassadors will travel to major college football rivalry games and set up tents in the tailgating fields. Competitive events, including cornhole, obstacle courses and other contests, will allow fans to win prizes and earn points for their schools tailgate scoreboard. State Farm jerseys will be given out to participants who sign up for StateFarmStrong.com accounts. One lucky male and female participant from each rivalry school will be selected to compete in a punt, pass and kick contest at halftime. The top five males and females, nationwide, will be awarded an all-inclusive trip to the BCS National Championship game.

STRONG TAILGATE

INTEGRATED MARKETING COMMUNICATIONS

$1,500,000

34

INTEGRATED MARKETING COMMUNICATIONS

OBJECTIVES Reach the target (primarily college students) during their spring break, introduce them to the meaning of Keep Goin Strong and direct them to action, visiting StateFarmStrong.com.

STRATEGY Promote State Farm Insurance by partnering with ABCs Wipeout. Vacationers can attempt to navigate fun obstacles and learn how to Keep Goin Strong.

RATIONALE Creates awareness of the Keep Goin Strong campaign by creating a fun, fresh interactive setting that allows the perception of State Farm Insurance to be contemporized.

TACTICS State Farm Insurance will host the event at the top five college spring break destinations (Panama City, South Padre Island, Miami, Cancun and San Diego). There, the target will be able try out the State Farm-sponsored obstacle course. Brand ambassadors will distribute promotional material items including wristbands, cell phone stickers, key chains, sunscreen, koozies, water bottles and sunglasses. The ambassadors will also give partygoers more information about StateFarmStrong.com and offer incentives for starting an account, such as a free cover charge to a local bar. The events most extreme video clips will be posted on the Web site and the participants in the top five videos will receive tickets to various entertainment venues.

Strong WipeOut

$2,000,000

35

INTEGRATED MARKETING COMMUNICATIONS

OBJECTIVE Increase awareness of the Keep Goin Strong campaign by creating an attractive brand image as well as verbal buzz about State Farm.

STRATEGY Provide those attending the New Years Eve ceremony in Times Square, New York City, with distinguishable red hats that display the State Farm logo and the StateFarmStrong.com Web address.

RATIONALE The Times Square New Years Eve ceremony is broadcast on major networks across the U.S. By providing red State Farm hats to those in the live audience, the State Farm Insurance logo and StateFarmStrong.com Web site will be seen by not only those attending the event, but also those watching across the nation.

TACTICS Provide 500,000 hats to those in attendance for the dropping of the ball. Those receiving the hats will be encouraged to wear the hat throughout the night, displaying the State Farm name and the StateFarmStrong.com Web site to the television audience. The hats will also be functional, providing State Farm with extended exposure when recipients return home and wear it again and again.

Strong new year

OBJECTIVE Boost awareness of Keep Goin Strong and demonstrate how State Farm Insurance acts as a good neighbor, by helping individuals safe and secure through transitions in their young lives.

STRATEGY Use a variety of vehicles to convince the target to take advantage of the features at StateFarmStrong.com, particularly the video upload section.

RATIONALE It is important to have the target take advantage of the many features on StateFarmStrong.com. Giving them the chance to interact with the site and win prizes will create buzz about State Farms online features (where the majority of the facts are laid out at the targets convenience).

TACTICS StateFarmStrong.com will have a video upload section where users can upload videos similar to the ones in Keep Goin Strong advertisements, depicting the less glamorous moments in life. Since most of these videos result in some sort of pain or soreness, State Farm Insurance will select 10 video winners every month to have a day at a spa. This will reiterate State Farms desired positioning of helping the target feel secure through those painful transitions in life.

Strong Relaxation

$2,000,000

$1,000,000

36

INTEGRATED MARKETING COMMUNICATIONS

OBJECTIVE Reach the target in social settings that will allow State Farm Insurance to display how Keep Goin Strong modernizes their brand image and is able to connect to the target.

STRATEGY Promote Keep Goin Strong by connecting with the target at popular bars and convincing them that State Farm is a viable insurance option.

RATIONALE By reaching the target in an exciting, lively atmosphere, State Farm Insurance aims to continue with its goal of building top-of-mind recall when members of the target make insurance decisions.

TACTICS State Farm Insurance will hold a contest on StateFarmStrong.com that will give the users the opportunity to bring State Farm to their town. The 10 towns with the most nominations every month will host a Strong Party at their towns bar of choice. Brand ambassadors will distribute promotional items and give the bar patrons a chance to participate in riding a mechanical bull, singing karaoke and dancing.

OBJECTIVES Build campaign exposure within participants and spectators of the nations top five marathons, in an effort to reinforce the meaning of Keep Goin Strong and cause the audience to visit StateFarmStrong.com.

STRATEGY Promote State Farm Insurance by co-sponsoring the nations top five marathons: the Big Sur Marathon, Boston Marathon, Chicago Marathon, New York City Marathon, and St. George Marathon.

RATIONALE A strong portion of the target market are active, health-conscious people who thrive on competition and exercise. Using marathons as an advertising outlet is a cost-effective way that reduces surrounding clutter.

TACTICS State Farm Insurance will co-sponsor the Big Sur Marathon, Boston Marathon, Chicago Marathon, New York City Marathon, and St. George Marathon. At these events, brand ambassadors will distribute promotional items such as water cups, drawstring bags, and other athletic orientated material to reinforce the overall message of Keep Goin Strong.

Strong party STRONG MARATHON

OBJECTIVE Increase awareness of State Farm by making a difference in peoples lives through a philanthropy.

STRATEGY Emphasize Keep Goin Strong and build a positive partnership with the American Red Cross.

RATIONALE Partnering with the American Red Cross connects State Farm Insurance to an organization that is trusted to help save lives, assist in times of disaster and increase personal safety and security. American Red Cross is Americas favorite charity. This partnership will influence State Farms target to visit StateFarmStrong.com and sign up for an account.

87 percent of Americans are likely to switch from one brand to another brand that is about the same in price and quality, if the other brand is associated with a good cause. -Cone Redefining Cause Study

TACTICS State Farm Insurance will donate $0.10 to the American Red Cross (up to $500,000) for every person who signs up for a new account on StateFarmStrong.com.

Strong benefit$2,000,000

$500,000

$2,500,000

37

INTEGRATED MARKETING COMMUNICATIONS

OBJECTIVE Increase awareness of Keep Goin Strong and showcase the new, contemporary feel of the State Farm insurance brand.

STRATEGY Rely on the popularity of March Madness to promote the State Farm brand through team fans.

RATIONALE March Madness is a widely viewed sporting event that is promoted and aired on a national level. Through this event, Keep Goin Strong can gain greater exposure.

TACTICS Using the StateFarmStrong.com Web site, fans of the participating teams will be able to upload videos to explain why they are their teams biggest fan. Once videos are uploaded, fans will be able to vote on the best, whose author will be proclaimed Biggest Fan on Campus. These fans will then follow their team throughout the bracket, capturing fan moments throughout the March Madness time period. Fan moments may include, but arent limited to, fan parties, team moments, etc.

Strong Madness

OBJECTIVE Develop buzz and increase usage of the mobile capabilities on StateFarmStrong.com.

STRATEGY Persuade users of StateFarmStrong.com to text a promotional code to State Farm Insurace for a chance to win a pampered movie experience: a private screening with catered concessions.

RATIONALE State Farm should continue to always be there. An effective way to portray that message is by having StateFarmStrong.coms features accessible on mobile devices.

TACTICS Users of StateFarmStrong.com will also be given the option to activate a mobile account. Once a mobile account user has bought a ticket at a participating movie theater, they can go to the give-a-way section of StateFarmStrong.com. From there, they are able to text a promotional code to State Farm. One lucky moviegoer will be announced in the theater and receive a pampered movie experience. This will reinforce State Farms committment to customer service -- by going above and beyond to make their clients feel appreciated.

STRONG EXPERIENCE

$1,500,000

$2,000,000

38

OBJECTIVE Increase parents/guardians awareness of Keep Goin Strong.

STRATEGY Provide the parents of college-bound individuals with information about State Farms services and offers at StateFarmStrong.com.

RATIONALE Since a large portion of the target is not educated about insurance, parents/guardians become a major influence when their son or daughter select an insurance provider.

TACTICS State Farm Insruance will partner with the 50 largest U.S. colleges. Most colleges provide some kind of take-home information for parents about their son or daughters campus or coupons for the surrounding community. State Farm Insurance will provide promotional material about their services and other useful information for parents to access on StateFarmStrong.com.

Strong Guardians

INTEGRATED MARKETING COMMUNICATIONS

IMC CONCEPT MAY 2010JUN 2010

JUL 2010

AUG 2010

SEP 2010

OCT 2010

NOV 2010

DEC 2010

JAN 2011

FEB 2011

MAR 2011

APR 2011

MAY 2011

Strong Benefit

Strong Experience

Strong Guardian

Strong Madness

Strong Marathon

Strong New Year

Strong Party

Strong Relaxation

Strong Tailgate

Strong Wipeout

IMC FLOWCHART

6.3% $1,000,000Strong Guardians

9.3% $1,500,000Strong Tailgate

12.5% $2,000,000Strong Wipeout

12.5% $2,000,000Strong New Year

6.3% $1,000,000Strong Relaxation

12.5% $2,000,000Strong Party

15.6% $2,500,000Strong Marathon

9.3% $1,500,000Strong Experience

12.5% $2,000,000Strong Madness

3.2% $500,000Strong Benefit

$1,000,000

39

BUDGET BREAKDOWN & EVALUATION

11% Production & Contingency

40% IMC49% Media

IMC $16,000,000.00

MEDIA $19,542,438.70

PRODUCTION & CONTINGENCY $4,457,561.30 Shark Attack will measure the effectiveness and success of Keep Goin

Strong through the following tactics: Administer surveys before, during and after the campaign in order to

measure the awareness it has generated. Track the number of accounts created at StateFarmStrong.com Track the features on StateFarmStrong.com that the users are taking

advantage of such as the money manager, video uploads, insurance facts, facts for parents, voting, give-a-ways, etc.

In order to make State Farm even more appealing to the target, Shark Attack recommends the following tactics:

That the campaign, and more specifically the commercials, are made up of painful, yet humorous moments in life. The commericals could relate to any television program. Several clips of models falling on the runway for a female-targeted show, basketball fouls or injury clips for a basketball program, etc.

Another way to engage the target at social events might be to include concerts. Promotional materials are especially effective for these events.

Campaign Evaluation

Recommendations

KEEP GOIN STRONG...