What can you do for $800 Million?
0 Comments Published by Frank Lane July 30th, 2009 in UncategorizedWell for starters, you can rebrand a company like GEICO. An anacronym for Government Employees Insurance Company, GEICO began selling insurance to the public over 20 years ago. In 1995, their ad budget was $31 Million. Few had heard of them.
Then in 1996, Bershire Hathaway acquired 100% of GEICO and Warren Buffet, not usually known as a marketing or advertising guy poured on the ad bucks, increasing advertising to just over $500 Million. I might add, that in my humble career, I have never seen such an increase. It worked. Today GEICO is the third largest insurance company and spends well over $800 Million a year in measured media.
Is GEICO a Killer Brand? I am not so sure. GEICO is a better example of a Dominant Brand, although this judgment could be argued. What do you think? Is GEICO choice being driven by a differentiated expectation? Before you answer too quickly, what would GEICO be with less than $100 Million in spending? Interesting? They definitely rebranded themselves. Even $800 Million would not get droves of people to buy insurance from the Government Employees Insurance Company, even if they saved 15%.



