I think they call that "Buying the wrong demo"
Sun Jun 29 18:41:16 EDT 2008
----- Original Message -----
From: "Dan.Strassberg" <email@example.com>
Subject: Re: I think they call that "Buying the wrong demo"
> So explain this one: From what I've read, GEICO still does not sell
> auto-insurance in Mass. My car was insured by GEICO around 1973, when
> the company was in deep financial trouble (this was before Warren
> Buffet bought it) and it pulled out of Mass. I had to scramble to find
> another insurer before my policy was cancelled.
> Now, even if you don't count all of the GEICO ads that appear to be
> national buys that are seen/heard on radio and TV stations in Mass,
> the number of GEICO ads that appear to have been bought intentionally
> on Mass stations must place GEICO ad buys very near the top of
> auto-insurance ad expenditures in this state. Since GEICO doesn't sell
> auto insurance in Mass, what are they doing? All I can figure is that
> they are contemplating a return to Mass and they are buying name
> recognition here in anticipation of that return. But they aren't yet
> convinced that they can make a profit with the new competitve rates
> here and are gambling that the name recognition will buy them a big
> advantage if and when they pull the trigger. Sounds like an expensive
> wager to me, but with Buffet behind the company, they must know what
> they are doing.
iirc - GEICO stood for Government Employees Insurance Company. it was
available to me as a member of the US Navy (1977-1981) if i cared to do so.
i don't know whether or not Buffett had anything to do with this company as
it was not unlike a credit union at the time - services available providing
you were a member/employee of a specific group or company. i bought a car
in 1978 in Charleston, SC but went with the local AllState branch. i
almost switched to GEICO as when i was assigned to Brunswick, Maine in 1978,
i was directed to a "different" AllState Insurance office that was
specifically for members of the military, as opposed to "regular" people
when i tried to change my coverage and home address. many of my shipmates
were insured through GEICO and were very satisfied with the coverage, and
that its reach was nationwide through its military affiliation, regardless
of where one was stationed.
as to the availability of their coverage, they are a godsend to broadcasting
as one of the best-spending advertisers, radio or tv.
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