THE BROAD MARKETING STRATEGY
Direct Line is a fantastic success story. They started from scratch in the UK in April 1985 with a single product car insurance, and just one way for our customers to buy over the telephone. Direct Line has diversified from its traditional auto insurance and caters for a much broader market by offers Home insurance . They were the very first UK insurance company to use the telephone as our main channel of communication, and had been introducing new benefits and finding new ways of helping their customers ever since. At the beginning they are the market leader of insurance via telephone by develop a direct telephone and mail distribution channel, bypassing the brokerage route and thus saving the commission charged. They have become motor leading insurer in the UK because of enjoyment of customer retention rate of 85 percent compare to industry average rate of around 50 percent so we can indicates that this company have a good relationship with their customer that continually repeat in using their service that being offered. It now also has increased the local it services to include many countries in Europe. It also has grown outside of the insurance market as Direct Line Financial Services and offers mortgages and loans. Additional information from the net as for the market there are 35 million private motorists in the UK, all of whom are legally obliged to insure themselves and their cars as well as other people against injury and damage. Most motorists prefer the security of comprehensive cover, rather than a basic Fire and Theft policy. A total of £8 billion is spent annually in the UK on motor insurance with 40% of drivers opting for comprehensive insurance policies (Source: Mintel 2002). The company's first television advertisements appeared during the late 1980s but its branding breakthrough came in 1990 when the first television commercial featuring the distinctive Direct Line red phone on wheels appeared on UK screens....
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