We know Geico for the catchy ads it makes, but do we know Geico’s biggest competitors well enough? Geico or the Government Employees Insurance Company is an auto insurance company, the second largest in the United States. The company has over 12 million policy holders it caters to. But, what has been under the spotlight for the company is its innovative marketing efforts.
Founded in 1936 by Sir Leo Goodwin Sr. and wife Lillian, the intent of the company was to provide direct insurance to federal government employees. Interestingly the founder had been an employee with its now competitor USAA which specializes in providing insurance to military personnel. Since then the company has been able to make a mark in the industry and has also delved into other types of insurance other than auto insurance, like homeowners insurance and life insurance. The basic model was to tap the reliable government employees customer base which has a stream of customers with a stable income.
Geico followed a direct to a consumer sales model where it generally uses means like telephone and the internet to deal with its customers. However, over the years it has come up with numerous advertising campaigns that have had a mass appeal where their mascots have been especially popular. And, while the Geico Caveman and Geico piggy have made some big sales themselves, the gold dust day Gecko with a cockney accent is recognizable in every American Household. The company has been proactive with its advertising efforts and had spent over $1 billion in advertising in 2012, resulting in successful campaigns like ‘money savers’ and ‘Happier Than…’ campaigns which are sure to go down in case study history!
But even with the constant robust marketing, the company has been no stranger to strong competition and though the players in the immediate industry are few, the companies have been at loggerheads with their market capturing efforts. Then there are also the 25 Largest Financial Companies by Revenue who, though not immediate competitors, are also vying for the similar customer base. So here’s a list of who Geico’s biggest competitors are and who has ultimately been successful in beating it to the position of the largest auto insurer in the US.