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Bite-size Case Study

How Aflac used advertising to increase the value of its corporate brand

Published on April 30, 2017 Originally recorded 2014   8 min
0:03
In this next section, we're going to be talking about a case study which is a really very interesting company called Aflac, an insurance company in the US, in truly a low interest category, but yet they have built a brand based on the silly duck pronouncing the name Aflac and has created a tremendous interest and following in the US. The interesting thing about this case study is we're going to be looking at both the revenue and the corporate brand equity, both sides of the brand value equation. And that is what this section is all about.
0:40
On this slide, what we're looking at is familiarity and favorability based on core brands, corporate branding index research over time. We report this data on a quarterly basis. This is rolled up into an annual basis for ease of viewing. We have, first of all, familiarity and favorability are on a 100-point scale, the blue is familiarity, the red is favorability. And those who are familiar with the company can evaluate the favorability attributes.
1:11
On this slide, what we see is communication spending overlaid on familiarity and favorability. From 1997 through 2002, you'll see the communication spending was going up every single year, and as a result, the familiarity was moving fairly and steadily upward as well as favorability. Many companies would be very happy with this kind of performance, but Aflac was really focused on building their brand very, very quickly and what they did is launched a new campaign. It's called "The Duck Campaign." And it's using this duck as a spokesperson for the company. And even though the spokesperson did not say anything, the way he would say Aflac as almost a quack became part of the campaign and was very, very humorous and very successful. In 2003, that campaign was launched along with definite increase in the communication spending and you'll see that there was a significant jump of familiarity and favorability. That campaign was rolled out over a period of years to 2007 with ever increasing high levels of spending and the result was ever improving familiarity and favorability. In 2007, the company cut back, facing the financial crisis as most companies did, they cut back their advertising somewhat. And you can see the beginning of a leveling off period both in familiarity and favorability, and they have since restored that spending level.
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How Aflac used advertising to increase the value of its corporate brand

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