GEICO Advertisement Analysis

GEICO or the Government Employees Insurance Group, is an auto insurance company that is currently the second largest in the United States. In 2014, the company provided insurance for more than 22 million vehicles that were owned by 13 million policy holders. The company uses a sales model that is made direct to the consumer and is well known for its humorous advertising. The company has used many different humorous ads but one type of ad remains the company’s signature ads and those are the ones that include the GEICO gecko.

The organization was first founded in 1936 to provide insurance directly to individuals that worked for the federal government. In 1937 the business was relocated from San Antonio, Texas to Washington, D.C., because they realized that their company would probably work best in an area where there were a higher number of federal employees.

This rapid growth in the company came on much too quickly and in 1975 the company reported a 126.5 million dollar loss and was near collapse. To prevent the collapse of the corporation, 45 other insurance companies agreed to help the company by taking over a quarter of GEICO’s current policies, with the stipulation that the company would issue stock offering to raise the money it needed to pay for claims. This incident took the company five years and a lot of work reorganizing the company to recover.

Today, GEICO has come a long ways from their near collapse and now deals directly with its customers by means of internet and telephone. Aside from these two methods, the company also has 150 offices across the country called the local agent program that are also available to help