Demonstrating that borrowing advertising solutions from other markets may not work
Problem
After a behavioral segmentation study of their current customers, Allstate wanted to focus its entire communications effort in the General Market towards the biggest and most profitable of all the groups. The same approach was suggested for the Hispanic Market without considering the demographic profile of the ethnic group. Blinded by the desire to have all of its communications integrated, Allstate wanted to use the same advertising approach for both markets. We needed to convince Allstate that importing the solution from the General Market to the Hispanic Market could result in a considerable decline in sales.
Scenario Simulations
We developed a computer model that represented the proposed strategy for the General Market. Using the same model but just changing its parameters to mirror the demographic profile of the Hispanic Market allowed us to compare the outcome of the proposed strategy in both markets. The model was set in a way that allowed us to change the assumptions on the spot while we were discussing strategies with a multidisciplinary team from Allstate and agency people.
While the strategy suggested appeared as appropriate for the General Market it did not for the Hispanic Market. Alternative scenarios were simulated to stimulate a richer discussion about the appropriate approach for the Hispanic market.
Results
The model allowed us to work with the client as one collaborative team with a common goal, helping us move away from fruitless discussions tainted by political tensions and power imbalances. The collaborative approach helped us position ourselves as true partners rather than pure service providers.