This GEICO ad is the perfect example of a product line extension. A product line extension uses the current brand equity of a current product in order to make the introduction of a new product in the same product category more easily accepted. In this ad, we see the clear reference to the iconic GEICO ads that always include the phrase I just saved a lot of money on my car insurance by switching to GEICO. Yet, instead of continuing and talking about auto insurance, the ad mentions another product in its insurance line that it’s offering: homeowner’s insurance. This ad is part of a new series by the company that always includes I should take a closer look at GEICO. This tagline is very important as it signals to the consumer that there have been some changes in the company products. The commercial then ends, like the other auto commercials with some weird cheesy humor at the end that we have all grown to love.
While the commercials are essentially the same as the auto insurance versions, the new tag line alerts the viewer that it is not the average GEICO commercial and says “We’re not what we used to be known for. Come check us out!”. If for nothing else, the change should pique the viewers curiosity and make them pay a little more attention to the new message of the advertisement. Finally, this ad repositions the company from an auto insurance company to the more general category of insurance. Did the new ads convince you? Would you consider switching your homeowner’s or RV insurance to GEICO?