Virginia Csillag

5268 Summerlin Commons Way Suite 502, Fort Myers, FL 33907

1

Table of ContentsExecutive Summary

Mission Statement

Non-Financial Goals

Financial Goals

Competitive Advantage

SWOT Analysis

Industry Analysis

Competitor Analysis

Customer Analysis

Marketing Objectives

Target Market

Points of Difference

Positioning Statement

Perceptual Map

Product Strategy

Price Strategy

Promotion Strategy

Distribution Strategy

Organizational Chart

Implementation Plan

Evaluation & Control

Contact Information

Sources

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4

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6-7

8-9

10-12

13

14

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17

18

18-19

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20-21

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25

Company Description:

Zehner & Associates is an insurance agency located in Fort Myers, Florida and caters to the

southeast and southwest Florida region. Due to the frequent natural disasters that occur in

the state of Florida, insurance is a necessity. Direct competitors are Sawyer Insurance, Inc.,

Lott & Gaylor Insurance, Clark & Bell Insurance and they all offer similar insurance policies

and services. Other competitors include direct online competitors. Zehner & Associates

have a competitive advantage that is their brokers who each have more than two decades

of experience and expertise in the insurance industry.

Zehner & Associates need to promote themselves more aggressively to prevent

clients from switching to competitors and continue gaining new clientele.

Implementing more forceful promotional tactics by putting up a billboard, hiring

another qualified broker and two marketing interns, offering new services, putting on

a gift card drawing for clients, and improving social media sites will bring improve

company awareness Zehner & Associates.

These will be implemented over the course of two years and after the hiring of the

two upper-class marketing majors.

Executive Summary

Marketing Plan - 2

Mission StatementZehner & Associates current mission statement states:

“Zehner & Associates combines more than fifty years of experience and industry

relationships to offer clients better choices and solutions for insurance, wealth management

(or financial security) and human resources.”

A revised mission statement for Zehner & Associates is:

Zehner & Associates combines more than fifty years of experience and industry

relationships to offer insurance seekers and current clients in the Southwest Florida region,

better choices and solutions for insurance, and wealth management. Providing superior

customer service and low rates, as well as understanding customers needs,

drives the success of our agency.

The current mission statement is vague and does not describe who Zehner &

Associates’ clients are or what the operating philosophy of the agency is.

Non-Financial Goals Increase clientele by 30% by January 2020 for the agency as an entirety

Continue encouragement of referrals by current clients

Increase marketing efforts and promotions

Increase recycling efforts and continue to encourage clients to use online

statements versus mail in statements to reduce use of paper

Continue to refer clients to other Master Network (Nationwide) members as to

encourage other Master Networks members to refer clients to Zehner &

Associates

Offer internships through LinkedIn and other methods to local college students

for increased exposure to soon to be potential insurance clients

Marketing Plan - 3

SWOT Analysis

Increase revenues by 25% by January 2017

Decrease office supply costs by 5% by January 2016

Maintain cost control efforts

Financial Goals

Competitive Advantage Brokers have years of experience

o Scott Zehner, President and Advanced Markets Specialist, +20 years

experience

o Margie Tann, Vice President of Property and Casualty, +20 years

experience

Margie Tann recently became President of the local chapter of the Master

Networks (Nationwide) group

Access to more insurance companies, resulting in better coverage at

comparable rates

SIAA Affiliates

o Helps agency to remain independent, gain new markets, and

generate additional income

clients for +10 years

o 76% of clients have been Zehner & Associate

Customer loyalty

Online presence

Master Networks (Nationwide) affiliates

One-on-One customer interaction

SIAA affiliates

general professional liability, and employee practice liability

o Including group health plans, payroll solutions, human resource

management, benefits, buy-sell agreements, worker’s compensation,

Offers other services

o Including auto and boat insurance, home and flood insurance, renter’s

insurance, life insurance, Medicare health plans, long-term care, disability,

retirement, investments, and estate planning services

Offers variety of insurance services

Independent insurance agents

Margie Tann, Vice President of Property and Casualty, +20 years experience

Scott Zehner, President and Advanced Markets Specialist, has +20 years

experience

Zehner & Associates: Strengths

Zehner & Associates: Weaknesses

Small agency with limited capital

Small marketing and research and

development budgets

Relies on word-of-mouth marketing and

client referrals

Twitter page needs enhancements

Marketing Plan - 4

Marketing Plan - 5

Industry Analysis

o Map of the United States (see next page) shows top states with subsidized

national flood insurance policies as of November 2013.

Center for Competitive Florida:

Katrina and Sandy.

mostly from claims made during Hurricane

o Intended to reduce subsidies and eliminate debt,

(NFIP) for five more years.

o Extends National Flood Insurance Program

Biggert-Waters Flood Insurance Reform Act 2012:

the near future.

o New taxation developments the insurance industry could demand change in

o Smaller insurance agencies are affected by recent changes on a state level

(ORSA) and could be at risk of federal oversight.

o Issue: Generalizing GAAP and risk requirements into common platform

o Companies are continuing to generalize accounting methods.

Pricewaterhouse Coopers LLP.’s Insurance Issues of 2014:

o Worker’s compensation will experience rate increases

o Liability insurance is experiencing a continuous increase in cost. Insurer

profitability is going down due to poor interest rates.

o Florida: average annual loss for casualty remains high

o Capital is very high in the insurance industry and will remain so.

new entrants have been the cause of increased competition.

o Property insurance is currently stable and

technologies and terrorism.

recovery of the economy, emerging

volatility of global financial markets, slow

o Issues: Cyber security and privacy risks,

2014 Wells Fargo Insurance Market Outlook:Zehner & Associates: Opportunities

Expansion via hiring another agent or broker

Cross sell insurance to existing clients

Reach out to current clients and revamp their current insurance by offering

better policies

Paperless transactions for out-of-state clients

Offer consulting services for consumers purchasing online insurance

Provide internships via LinkedIn for current college upperclassmen who will

seek insurance in the near future

Zehner & Associates: Threats

Increasing costs and consumer’s needs

Cheaper and more convenient options available (direct online insurance)

Competitors have larger advertising and research and development budgets

Government regulations at the state and federal levels

Insurance is pricier to offer in Florida

Increase in insurance prices and lower profit margins affect smaller

agencies more

Marketing Plan - 6

Industry Analysis

Marketing Plan - 7

Competitor Analysis

subsidies:

federal health care market. Below is a graph showing which states receive

o About 7.5 million consumers could lose their subsidies in 34 states that utilize the

o Expected to end this summer 2015 and could greatly affect insurance industry

King v. Burwell Supreme Court case:

o Keeps young adults covered under the age of 26

o Removes insurance company barriers to emergency services

o Protects consumers choice of primary care doctor

o Covers preventative care

o Insurance companies must publicly justify unreasonable price increases

o Ends lifetime limits on insurance coverage

o Ends arbitrary withdrawals of insurance coverage

Affordable Care Act (ACA) 2010:

o Currently discussing how large insurance companies should be regulated and

whether or not they offer products that could pose larger financial risk to economy

Federal Reserve:

o Had huge effect on industry and future presidential election will determine further

direction of industry

ObamaCare:

o More clients purchasing pricier assets that require more insurance purchases

o On rise in southern region of the U.S.

Economic conditions:

Competitor Analysis

o Millennials have different values and are more skeptical of marketing efforts and

are less loyal to companies

Sociocultural trends

o Clients can purchase insurance online or via apps.

Technological advancements

How the ruling could reduce insurance coverage is found below:

o According to the Urban Institute for the New York Times:

o Consumers who purchase their own health insurance will also be affected

because insurance rates will increase if insurance groupings become olderMajor Brand Competitors:

Sawyer Insurance, Inc.

Lott & Gaylor Insurance

Clark & Bell Insurance

Information:

o Similar in size, growth, and profitability

Direct Online Insurance Companies:

Geico

Progressive

Esurance

The General Insurance

Information:

o Eliminates use of middle man, agent or broker

o Strengths:

Online convenience and premium prices

Promotion and pricing capabilities

o Weaknesses:

Minimal interaction with client

Buyer has high buying power

Competitor Analysis

Marketing Plan - 8

insurance offers

price premiums that direct online

Noncustomer’s needs: Buy insurance at

o Hartford, Progressive, etc.

Insurance is purchased from larger companies

o Heavy users- Have more expendable income and need more insurance for

additional items such as second homes or boats

The difference between heavy users and light users:

Home insurance policy purchases driven by the acquisition date of homes

Most policies are written semiannually for auto and annually for home insurance

Products are purchased singularly

Needs fulfilled: Sense of security

Cash, eChecks

Payment Method: Credit Card, Checks,

Area: Southeast & Southwest Florida

Purchasing Power: Male

Career: 45% Blue-Collar Workers

Children: Yes

Marital Status: Married

Age: Mostly 40s to late 50s

Customer Analysis

Marketing Plan - 9

Marketing Objectives

clients aged 30-65

Maintain and improve brand awareness among

online by 25% by January 2020

Increase number of insurance quote requests

30% by January 2020

Increase sales among clients ages 30-45 in the Fort Myers/Cape Coral area by

Increase amount of quotes written overall by 15% by January 2017

Target MarketClients age 30-65+, who are residents or own properties in the Southwest Florida

regions, have an income at or above $50,000+, preferably have children and own

vehicles and/or boats.

Points of Difference

Offer Various different types of insurance

SIAA Affiliates

Years of Experience

and Expertise

Positioning StatementTo potential and current insurance seekers ages 30-65+ in the Southwest Florida region with

an income of $50,000+ who seek for insurance that is cost effective for their homes, cars and

boats, and fits their personal needs, Zehner & Associates, is the insurance agency that

provides exceptional insurance service and values clients personal needs that offers clients

insurance brokers with upwards of 20 years of respective experience and expertise, and

therefore offers consumers variability in insurance and guarantees clients that they are finding

the insurance that fits their individual needs. The brand that is Zehner & Associates is

affordable, exceptional service, convenient, and digitally accessible.

Marketing Plan - 10

Perceptual Map

Insurance agencies mostly offer the same variety of services the only difference would be

the type of carriers they may have or promote. Therefore Zehner & Associates needs to

clearly differentiate themselves from other insurance agencies so that clients understand

why Zehner & Associates should be picked instead of other insurance agencies also in the

area. Cognitive dissonance may be present after purchasing insurance from Zehner &

Associates if clients do not pay the price that they would’ve liked to pay and may therefore

consider seeking another insurance agency that promises the client a lesser cost.

o Create a closer bond between insurance client and broker

o Reassure clients of their purchase decision

Benefits:

Suggestion: Calling current clients to follow up after sale of insurance products.

o Decrease doubt of choosing Zehner & Associates versus other insurance

agency in the area

o Clients perceive Zehner & Associates as an agency that really cares about

each individual client

Benefits:

Suggestion: Updating current clients and contacting them about better insurance

options available to them.

o Bring in new clients with different needs but require the same expertise and

experience

o Open opportunities for an untapped market

Benefits:

Suggestion: Consulting services offered for individuals seeking guidance as to which

direct online insurance companies best matches their situation.

practice liability.

vehicles, hole-in-one, and special events such as employee

sell agreements, worker’s compensation, liability, commercial

payroll solutions, human resource management, benefits, buy-

arises. Business services offered include: group health plans,

Zehner & Associates’ individual services include: auto & boat insurance, home & flood

insurance, renter’s insurance, life insurance, Medicare health plans, long term care,

disability, retirement, and investments such as estate planning. These are unsought

products meaning that consumers do not consider purchasing these products until a need

Product StrategyInsurance rates are set prices that are determined by the economy and the industry.

Individuals who practice actuarial sciences, and predict natural disasters and their impacts

set the insurance prices. Average annual homeowners insurance premium is about $900.

Therefore the prices remain unchangeable for insurance agencies. The brokers of Zehner &

Associates get paid by commission, which is based on the amount of policies they write.

Price Strategy

Promotion StrategyZehner & Associates currently have very limited promotion strategies.

Suggestion: Encouraging clients to share the Zehner & Associates Facebook page

so that they may be entered into a drawing to win gift certificate to Micelli’s

Restaurant, a local favorite.

Benefits:

o Clients will more actively follow Zehner & Associates on Facebook

o Encourages clients to share the Facebook page so that all of their friends will

see the page on their home page

o Will associate Zehner & Associates with the Micelli’s brand that is fun,

professional, and family oriented.

o Bring in clients from different areas who may be traveling through Ft. Myers

o Bring brand awareness of Zehner & Associates to heavy traffic areas around

Edison mall

Benefits:

Suggestion: Billboard advertisements near Edison mall in Ft. Myers, FL.

o Associate Zehner & Associates with local prestigious colleges

of equal caliber who may refer Zehner & Associates to their colleagues

o Brand awareness to individuals who have doctorates degrees and associates

insurance seekers in the near future

campuses and students who will be potential

o Bring awareness of the insurance agency to local

Benefits:

Suggestion: Contact local colleges in the area to set up internships among the local

college students through the business schools as well as on LinkedIn.

o See Zehner & Associates brand as one that cares for clients and their safety

rather than just wanting more clients

o Customer will remember unique free handout and therefore will more likely

remember Zehner & Associates

Benefits:

Suggestion: Smoke detector battery handouts at community events along with

Zehner & Associates home insurance pamphlet and/or brokers insurance cards.

o Will maintain brand awareness as clients will use their wallets on a day to day

basis

o Clients will want to carry such valuable information around with them just in

case

Benefits:

Suggestion: Emergency Info Wallet Cards to be handed out with business cards that

will have list of local emergency numbers such as fire department, police, poison

control, etc., include brokers contact information and Zehner & Associates logo.

Marketing Plan - 11

the colleges for advertising and promotional help is another great way to conduct free

research via their marketing research courses.

be necessary. One intern will be in charge of actively engaging on social media while the

other intern will be needed for calling clients for post service reviews and eliminating

cognitive dissonance as much as possible. Contacting the local marketing departments at

internships will be for credit only and unpaid. Two interns will

promotions and won’t cost the agency any money as the

Southwestern State College, will boost word of mouth

colleges such as Florida Gulf Coast University or Florida

promotions of Zehner & Associates. By finding two qualified marketing interns from local

Changes to the organizational chart include the addition of a highly qualified insurance

broker and two marketing interns. All of the brokers at Zehner & Associates have more than

two decades of experience and expertise in the industry and therefore finding a new

insurance broker that will fit the agencies values and company atmosphere will be hard to

find. Extensive recruiting and interviewing will have to occur in order to find a proper fit

amongst these top insurance brokers. The recommendation for two marketing interns are

for the implementation procedures necessary to handle social media updates and

maintenances so that insurance brokers do not have to worry about the social media

Distribution Strategy

o Reaching out to new clients who are visiting outside of the Ft. Myers area

o Expand brand awareness to local potential clients

Benefits:

Suggestion: Setting up a booth at a local mall and providing consultation for clients

seeking to purchase insurance

Associates plan to implement

introduce new services that Zehner &

o Easy way to advertise new broker or

business entrepreneurs

o Expand brand awareness to other local

Benefits:

meetings.

Suggestion: Setting up a table for Zehner & Associates at the local Master Networks

Zehner & Associates because of the type of products and services are not concerned as

much with their distribution strategy of the products as much as they are with the distribution

of their promotion strategies and word of mouth marketing. Distributing the company name

Zehner & Associates is vital to the company’s growth and financial success.

Organizational Chart

President: Scott Zehner

Insurance Broker: Margie

Tann

Marketing Intern

Marketing Intern

Additional Insurance

Broker

Marketing Plan - 12

Implementation PlanSummer 2015 – Winter 2015

Begin planning stages for implementing marketing program previously stated on

pages 17-21. This plan will require further research and analysis of financial

statement by Scott Zehner, President, to determine whether suggestions will prove

to be effective for Zehner & Associates.

Begin recruiting for additional broker to grow agency.

Hire two upper-class marketing interns through local business schools to revamp

social media pages.

Reach out to Florida Gulf Coast University and Florida Southwestern State College

to set up internship opportunities through the business schools.

Contact Miceli’s restaurant for gift certificates and discuss cash drawing.

Design a billboard to promote Zehner & Associates.

Determine strategies to implement consultation on direct insurance companies.

Determine strategies for multiple products discount and ensure feasibility.

Spring 2016 – Summer 2016

Continue recruiting for new insurance broker.

Attend MN events and network with local restaurant and promote among clients.

Create gift card drawing with Miceli’s and promote among clients as well as on

social media.

Implement billboard promotion near Edison mall.

Purchase new emergency info wallet cards to be handed out to clients.

Purchase batteries as well as pamphlet for home insurance and handout at local

community events.

Fall 2016 – Winter 2016

Hire new insurance broker.

Determine cash drawing winner for Miceli’s Restaurant gift card winner.

Hand out new business cards at networking events and to potential clients.

Marketing Plan - 13

Evaluation & Control

Keeping track of number of new clients once implementation processes begin will help

evaluate the success of the marketing strategies that will be implemented. Observing

number of Facebook likes and shares will provide a valuable tool that may be used for

evaluation of social media measures pursued by the company. Revenue generated must

also be closely observed to monitor success rates of the implemented marketing plan.

Clients may be asked how they feel about new promotional implementations the agency has

pursued to ensure clients are noticing the new changes and liking them. To truly evaluate

the outcomes of these new implementations a close analysis of financial statements must

occur.

Contact Information

Virginia Csillag

St. Bonaventure University – 2015

Professor: Dr. Mike Russell

csillava10@bonaventure.edu

(239) 677-6744

Marketing Plan - 14

Sources "Top Insurance Industry Issues in 2014." PWC. N.p., n.d. Web. 25 Apr. 2015.

<http://www.pwc.com/us/en/insurance/publications/top-insurance-industry-issues-

2014.jhtml>.

"2014 Insurance Industry Outlook Survey." KPMG. N.p., n.d. Web. 27 Apr. 2015.

<https://www.kpmg.com/us/en/topics/2014-outlook-surveys/pages/2014-insurance-industry-

outlook-survey.aspx>.

"2014 Insurance Market Outlook." Wells Fargo Insurance: n. pag. Print.

Marketing Plan - 15