Cutting back on advertising is a surefire way to lose market share in the auto insurance industry.

People only think of auto insurance in two situations:

→ After an accident claim is poorly handled
→ When they receive a significantly higher bill for the next 6-month period

In both cases, drivers start looking for alternative providers.

And what brand are they going to turn to? The one they recognize.

Take GEICO for example.

GEICO’s preference dropped by 15% over the last two years. Why?

Two Reasons:

1️⃣ : GEICO cut back on their media spend, resulting in a loss of share of mind. Meanwhile, State Farm introduced ‘Jake from State Farm’ in 2020 and became the main beneficiary.

2️⃣ : GEICO had the largest rate hikes among all insurance companies. The promise of “15 minutes can save you 15%” no longer holds, as all brands now claim similar price advantages.

→ It’s possible to manage higher fees if you over-invest in building mental availability, but not when cutting back on it.

GEICO’s experience is a cautionary tale for any brand considering scaling back on advertising.

Want to keep your brand top of mind? Consistent and effective advertising is key.

Forget what you think you know about market dominance.

In 2023, MSW Research looked at consumer behavior for 4 popular fast-food chains.

Our findings revealed that McDonald’s commands an impressive 11% positive market gap. 🍔

But where do these customers even come from?

People who prefer other fast-food brands but can’t get to them.

Take Wendy’s for example.

Even though it drives Brand Preference at 22%, its lack of availability is leading consumers to go elsewhere.

To close this gap, Wendy’s must intensify efforts in recruiting new franchisees while maintaining existing marketing strategies that are working to build their distinct brand assets and preference among their users. 🥤

→ Understanding brand preference and market potential offers actionable insights for strategic growth.

With MSW Research’s proven predictive power, brands can address market gaps effectively, driving strategy for maximum impact.

Proximity matters—even when it comes to your go-to fries. 🍟

In 2023, the fast-food industry faced a significant challenge with rising prices.

Fast-food chains had to think—well FAST.

Consumers perceived McDonalds and Burger King to be very similar with ‘Convenient,’ ‘Affordable’ and ‘Offering options friends and family enjoy.’

BurgerKing always trails in their head-to-head competition with McDonalds on these dimensions.

Rising prices are challenging the price/convenience positioning and surpassing consumer acceptance thresholds.

Value perceptions in QSR have been hit harder than other food service formats, and this has led to an increase in promotions.

McDonald’s is reported to be doubling its value mix. These promotions build revenue but detract from the brands core relationships.

Menu innovations by both are attempts to move somewhat toward a position that emphasizes a greater connection with customers.

Both Sonic and Wendy’s connect with guests on an emotional level.

Sonic is ‘Different’ as it has ‘Has trendy menu options’ and ‘Cares about its customers,’ and Wendy’s is ‘For someone like me’ and ‘Tastes good.’

In our next video, we will talk about the implications for reaching the brand’s potential. 📲