Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

need help summary paragraph for case study Introduction Progressive is an insurance company that was established in 1937. In 1951, Progressive's growth branched out to

need help summary paragraph for case study

Introduction Progressive is an insurance company that was established in 1937. In 1951, Progressive's growth branched out to new location in downtown Cleveland. In 1955, Jack Green became CEO after the death of Joe Lewis, and Peter Lewis, Joe's son, began his career with Progressive. Peter Started looking for ways to differentiate the company from its competitors. In 1956, Progressive Casualty Company was formed to write auto insurance for high-risk drivers. Today, the company insures all types of drivers. (Overview, 2018) Further growth and expansion in the 1960s created the formation of The Progressive Corporation. In 1965, Peter Lewis became the CEO, he held his position for 35 years until he turned the reins over to Glenn Renwick in 2000. Glenn then passed the leadership torch to Tricia Griffith, current CEO and President, in 2016. (Overview, 2018) Progressive is the employer of more than 26,000. Progressive offers services through telephone, Internet and independent agents. The company bases data gathered and analysed to segment markets and price according to risk potential. The company has remained competitive by closely managing expenses and achieving operating efficiencies. Progressive also refines its risk measurement and price segmentation skills. Superior customer service, claims adjusting and strong brand recognition are also important factors in the company's competitive strategy. What has progressive done well over the years to attract new insurance customers? Progressive has been innovating consistently to provide insurance to its customer base at a low premium. It has built itself as a low-cost alternative due to its advanced pricing and segmentation approach. It has been constantly looking more smarter and more innovative solutions to be the only low-cost provider in the market. It has established a customer relationship management platform that is more cloud based and innovative. Progressive works very hard to satisfy existing customers as well as draw in new customers. They do this by providing convenient services such as 24-hour service and comparison insurance shopping. Progressive also provides lower rates for low risk drivers by their snapshot program. This program is a small device you plug into your car, after it monitors your driving habits for a short term. The snapshot device then uses your individual habits to determine how safe of a driver you are for your personalized rate. (Insurance, 2018) As a Progressive customer of nine years I can say that I enjoy the convince of these services. Discuss progressive insurance's direct marketing campaign which primarily revolves around the character Flo. why does it resonant so well with customers? What else should progressive be doing to ensure it stays top of mind in the competitive industry of insurance? In the competitive industry of insurance Progressive competes with the following top insurance companies including Allstate Corporation, Geico and Liberty Mutual Insurance. Progressive is a successful company with its marketing and advertising campaign. Employee training to ensure they are knowledgeable in all areas of the businesss operations can definitely help customers stay satisfied with their services, and stay top of mind. Progressive should maintain the character Flo, as she is the gimmick used by the company that comes top customers minds when thinking of Progressive. Analysis Strengths of progressive insurance company: The distribution channel is very strong Increasing customer acceptance in the sector is generating market share Innovative ways of reaching and serving consumers increases customer satisfaction They have strong liquidity and capital position Strong workforce of over 25,000 employees Uniqueness in insuring cars, motorbikes, boats Sponsorship of various events has enhanced its brand image Weaknesses of progressive insurance company: Operation expenses are impacting their profit margin Focus on few geographies limits their strengths and it has had its share of controversies Cannot easily scale to compete with large players Recommendations The Progressive Corporation is one of the largest automobile insurers in the United States and insures over 10 million policyholders. Progressive isn't the cheapest insurance company, but it offers a comprehensive set of coverages and discounts, meaning you can get great rates if you qualify. Young drivers looking for the lowest auto insurance rates most likely would not choose Progressive for those reasons. The company needs to address the needs of the young drivers also, and provide them with the same discount opportunities.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Management Of Business Finance

Authors: John Freear

1st Edition

0273014315, 978-0273014317

More Books

Students also viewed these Finance questions