Case Study

What are consumers perception, particular Millennial consumers, of GEICO as an employer

based on their advertising? In other words, is GEICO communicating their brand effectively
among the correct target market(s)?
For over 75 years, GEICO has distinguished itself from the rest of the insurance industry. In the mid-1930s, at
the height of the Great Depression, there weren't many people with the foresight and courage to start up a new
company. Yet the husband and wife team of Leo and Lillian Goodwin were up to the challenge. Confident that
he could create a successful auto insurance business by marketing directly to carefully targeted customer
groups, Leo Goodwin hammered out a business plan during his early career in Texas.

In 1936, he put that plan into action, establishing the Government Employees Insurance Companythe
company known and loved today as GEICO. Few people realize that GEICO was initially targeted to federal
employees and certain categories of enlisted military officers.

Lillian Goodwin energetically marketed the company to this audience (in addition to doing the accounting,
setting rates, and underwriting) and within a year, GEICO had written 3,700 policies and hired 12 staff
members.

New Decade, New Investors: Enter Warren Buffett

In 1948, a pivotal figure joined the company. Lorimer Davidson, an investment banker and a friend of the
Goodwins, helped them find new investors when the original investors chose other opportunities. Among those
new investors was Benjamin Graham, a business professor at Columbia University in New York, who would
one day find Warren Buffett in his class. The link between GEICO and Warren Buffett was thereby established,
and in 1951 Buffett made his first official appearance in GEICO's history.

Interested in the company, Warren Buffett took the train to Washington on a Saturday to learn more about
GEICO and found that the office was closed. Fortunately, a janitor directed him to Davidson, and the two had
an impromptu meeting that would ultimately have a greater impact on the company than either man could have
realized at the time. After speaking with Davidson, Buffett learned enough to make his first purchase of GEICO
stock.

When Leo Goodwin chose to retire in 1958, he named Davidson to be his successor. It was Davidson who
would preside at the opening of new GEICO headquarters in Chevy Chase, MD in 1959 after more than 20
years of steady growth.

Growing Pains

The 1960s proved to be similarly successful. GEICO experienced virtually unbroken growth, passing the 1
million policyholder mark in 1964. Insurance premiums reached $150 million in 1965. Net earnings doubled to
$13 million in 1966. GEICO opened a number of sales and service offices for walk-in customers and its first
drive-in claims office in 1965.

The 1970s, however, were not nearly so good to the company. At the beginning of the decade, both Leo and
Lillian Goodwin passed away, and the loss of the company's founders seemed to usher in difficult times for
GEICO. By the mid-70s, the years of aggressive expansion were starting to show some weaknesses in the
company's loss reserves. It led to a difficult period for the company.

GEICO used the experience to strengthen its underwriting and reserving activities which helped build the
company's current reputation as a fiscally superior organization. Warren Buffett made another appearance in
1976 for a second purchase of GEICO stock, reported to total 1 million shares.

Prudent underwriting prevailed in the 1980s and expansion continued. GEICO introduced 24-hour a day, 365-
day a year telephone service for claims, sales and service in 1980 as its emphasis on customer service
deepened.

A New Chairman, a Bold Vision

In 1993, Olza "Tony" Nicely was named GEICO's new chairman, president and CEO, and worked to expand
the customer base through a new four-company strategy. Along with it came an increased advertising budget
which propelled GEICO toward much higher national visibility.

Warren Buffett liked what he saw. In 1995, his Berkshire Hathaway investment firm made a generous bid for
the remaining shares of GEICO's outstanding stock, and by 1996, GEICO was a subsidiary of one of the most
profitable organizations in the country.

That led to national advertising on an enormous scale. GEICO's ads and direct mail pieces flooded the
airwaves and filled mailboxes around the country and the company's growth shot upward. The GEICO Gecko
made its first appearance during the 2000 television season and quickly became an advertising icon.

Meanwhile, in 2001, Leo Goodwin was named to the International Insurance Society Hall of Fame, and by
2002, GEICO had passed the 5 million policyholder mark.

Continued Expansion, and a Civilized Caveman

In August 2004, GEICO declared the "good news" about re-entering the New Jersey auto market at a press
conference in Trenton that made local, regional and national news. That was also the year that GEICO
introduced the Cavemen to television audiences in order to drive home the point that using geico.com was "so
easy even a caveman can do it." The rest, as they say, is advertising history.

Later that year, GEICO broke ground for a new office in Buffalo, NY to help handle GEICO's thriving business,
and by December, company growth pushed GEICO to 6 million policyholders. Building activities in Buffalo
were completed in 2005 and associates moved into their new 250,000-square-foot regional center following a
grand opening ceremony in October.
Adding Services Online and on the Ground

In 2006, GEICO marketing efforts, expanding Internet capabilities and customer outreach combined to attract
the company's 7 millionth policyholder. GEICO's success continued throughout 2007 as the company grew to 8
million policyholders.

GEICO Auto Repair Xpress rolled into more than 400 repair shops around the nation, giving policyholders a
full service package of extras like onsite adjusters and rental vehicle reservation services.

GEICO introduced several new product lines. Of these, the Powersports unit got off to a good start, driven by
the well-established and highly successful motorcycle group.

GEICO Ad Icons Reach Celebrity Status

While GEICO continued its solid growth, its beloved ad icons began to garner accolades of their own. By 2007,
the Cavemen were not only featured in new ads, but also on an interactive Web site that showed off their
contemporary and very hip lifestyle.

Meanwhile, the Gecko took on an extra job and became the spokescreature for a national touring gecko exhibit
at several zoos and aquariums around the country in order to promote wildlife conservation efforts.

In 2008, the Caveman was voted America's favorite advertising icon of the year and joined the GEICO Gecko
on the Advertising Week Walk of Fame. The Caveman, still perturbed with GEICO for its "So easy, a caveman
can do it" slogan, did not attend the award ceremony.

GEICO Lately

2009 was another rewarding time for GEICO as associates celebrated a welcome growth spurt by reaching 9
million GEICO policyholders early in the year. This was also the year that the company set its sights on
Massachusetts drivers and put out the Open for Business sign in the Bay State in May. Now GEICO is truly a
national company, providing coverage for drivers in all 50 states and the District of Columbia. To help
customers further, GEICO opened a second location in Buffalo, NY for its growing GEICO Insurance Agency
operations, offering homeowners, renters, boat and other types of insurance coverage.

In 2010 GEICO provided mobile users with a first in the insurance industry the ability to quote and buy a
policy from mobile-friendly pages on their iPhone and Android mobile devices. Growth continued in 2012 as a
new milestone of 11 million GEICO policyholders was reached early in the year.

The Next Chapter

Who knows if GEICO founders Leo and Lillian Goodwin could have foreseen the incredible heights that their
company would reach? Could they have imagined that GEICO would become the largest auto insurer in New
York, Maryland, the District of Columbia and Hawaii, and very near the top in several other states?1 Would
they have thought the company would have more than 30,000 associates in 16 major locations throughout the

1
2011 A.M. Best Market Share Report
country offering insurance in all 50 states and the District of Columbia? Surpassing 14 million policies in force
in 2016, could the Goodwins have imagined their company reaching such impressive heights?

And would they be able to imagine what would happen in GEICO's next chapter? With assets of $32 billion2,
the company's future looks bright. But no matter what the coming years hold, GEICO will remain committed to
the values on which it was founded: excellent coverage, low prices, and outstanding customer service.

Project Question

GEICO is interested in learning about consumers perceptions of their company in regard to their likelihood to
work for GEICO, particularly Millennials. Does their advertising encourage or discourage people to seek
GEICO out as an employer?

Project Objectives:

The main project objective is to learn whether GEICO is effectively communicating their corporate values and
culture via their current digital and traditional advertising. Specifically, you should be considering the following:

1.) Does GEICOs current digital and traditional advertising motivate Millennials to apply to GEICO?
2.) What do they think GEICOs brand image is? Brand personality?
3.) Does this target market understand GEICOs corporate values and culture from their advertising?
4.) If so, which components? Is it their corporate webpage, their careers page, their television advertising?
5.) If so, which images/messages specifically help with this?
6.) If not, what is their current perception and understanding?
7.) Based on your research, which recommendations would you suggest to ensure that GEICOs
advertising is effective at communicating their brand?
8.) The age range for Millennials is rather broad in fact, 16 years plus. Would you use the same methods
to attract all Millennials? Would you use the same images/messages? Or would you have to segment
the Millennial market into sub-segments?

Your project should have measurable outcomes as a result of activities you recommend. Your plan should be
executable and realistic.

2 Assets are combined and vary by company. Refer to our financial information page for more details.