In 2013, Progressive was the fourth biggest player in the auto insurance market, having lost the third standing in 2008 to GEICO. As the business shifted from service to online sales, it was placed by the direct selling model of GEICO firmly for growth. The direct sales mixture of progressive had increased from 36% of overall sales in 2006 of the sector average of around 25%, nicely ahead to 42% in 2012. Because of this, both Progressive and GEICO continued to gain ground on business leaders, Allstate and State Farm, who sold less than 5% of theirpolicies.
In 2013, Progressive expected to revolutionize the buying of auto insurance and to develop its competitive standing with Snapshot, a fresh usage-based pricing product. Whether these moves would be enough to catch up with GECIO was obscure, but they seemed to be operating well against Allstate and State Farm.
Progressive, 2007-2013 Case Study Solution
PUBLICATION DATE: October 27, 2014 PRODUCT #: 715427-HCC-ENG
This is just an excerpt. This case is about STRATEGY & EXECUTION
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