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INTRODUCTIONAssignment.
Select a company that has a specific marketing challenge and write a case study includingthe following elements:1. A real-life scenario2. Supporting data and documents3. Develop three open-ended business questions that should be answered in full.
Assumptions.
For the purpose of this research, it is assumed that the audience has a goodunderstanding of marketing communication concepts as well as technology and its role in marketingcommunications.
Caveats.
Where proprietary information is unavailable data may be substituted for illustration purposes.Substituted data will be noted and may or may not be viable for including but not limited to validating thesuccess of recommended solutions, goals or objectives.Sweeping changes have affected the financial industry in the past year, with no clear signs ofstabilization. Although the research presented in this case study is current, consideration should givenwhere information is no longer relevant. Information that is known or suspect to be outdated will be notedat the time it is presented.
Omissions.
The focus of this case study will be directed towards Nationwide’s individual consumersegment; thus, detailed information regarding Nationwide’s other customer segments are beyond thescope of this study and while recognized are not researched nor documented in detail.
MARKETING CHALLANGES
Nationwide Insurance implemented an Integrated Marketing Communications(IMC) program largely to overcomea negative image it had developed during the 1990’s for violating the Civil Rights Act of 1968 and the Federal FairHousing Act of 1988. Nationwide utilized discriminatory underwriting practices until the United States JusticeDepartment filed suit against Nationwide in 1997. Immediately thereafter, Nationwide quickly stepped forwardand filed a consent decree offering corrective actions to repair its discriminatory practices.It has taken over a decade to overcome Nationwide’s reputation of illegal practices and turn its image and brandaround. A large part of the turnaround success has been due to its IMC practices. However, as technology andthe use of the Internet has increased and is more adopted by both corporate America and mainstreamconsumers, several issues may resurface for Nationwide in combating negative public opinion, specifically inregards to social media venues utilized in IMC practices.Although Nationwide ended its discriminatory practices, public opinion may be slower to accept Nationwide’spositive turn around. Negative press, Internet postings and future corporate missteps may affect Nationwidemore harshly than corporations with an untarnished reputation. Navigating this potential public relations andbranding challenge are the basis for two of my three marketing concerns. My third marketing concern addressestoday’s economy and competing in a price sensitive market.1. Nationwide Group has made a wise decision to leverage social media venues. However, the use ofsocial media can mean losing control over public relation images. For example, Internet blogging andComment Reviews. How does Nationwide Group combat negative blogs on social media websites whereit does not have the ability to control communications, especially in light of fiduciary responsibility andbroker/client confidentiality regulations?2. How does Nationwide Group convey trust and dependability through its internal and externalcommunications and during a national meltdown of financial institutions, including the world’s largestinsurer American Insurance Group(AIG), which was seized by the US government in September 2008?
3. Several of Nationwide competitors are differentiating on price due to the recessionary economic times.How does Nationwide Insurance add value, attract and retain customers and still remain profitable duringdifficult economic times?
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