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Geico–The Annoyance You Could Be Avoiding

December 5, 2009

The current Geico Insurance campaign is annoying….and puzzling. It’s annoying because of the wrapped up dollar bills with eyes that appear in the oddest circumstances. It reminds me of clowns….you think they are cute at first and then you realize that they are just plain odd…and maybe a little scary.

It’s puzzling because from a Marketing point of view, it’s not a unique positioning claim and it’s not differentiating.
Their tag line is “the money you COULD be saving”. But they don’t say you will.  

Side note: If you are going to build your positioning on the fact that you have low prices, you need to have the lowest prices (see: Wal-Mart). Interestingly enough, Wal-Mart is moving away from “Low Prices Everyday” to “Save Money, Live Better” and trying to blur Target’s positioning “Expect More, Pay Less”….but that’s a topic for another time.

But Geico’s claim has been directly challenged by their competitors causing confusion in the marketplace. In fact, Allstate has come out with a commercial titled “Don’t Be Confused” that claims that customers who switched from Geico to Allstate saved money. And Progressive Insurance claims they will show you the prices of their competitors.

Vodpod videos no longer available.

So where does that leave Geico?

With a non-sustainable positioning statement and an annoying icon (not that annoying icons are new to them).

If their only point of difference is price, then they attract non-loyal customers who will flip at the change of the price tag.

The thing to remember here is that your point of difference should be unique, ownable and not easily duplicated by your competitor.

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