RAC gives £5m boost to marketing budget

The RAC is to increase its £25m promotional spend by 20% to give greater marketing power to core areas of its business: roadside assistance, motor insurance and legal services.

RAC commercial director David Lewis said the £5m increase reflected growing confidence in the business and in marketing's ability to grow it.

At the heart of planned activity is a DRTV campaign, created by direct marketing agency Partners Andrews Aldridge, promoting the RAC's legal services. The campaign will break at the end of February.

Lewis said the RAC was keen to boost sales, particularly in the personal injury sector, which has not had a clear market leader since The Accident Group's demise in 2003. However, he admitted that the sector's reputation had been tainted by so-called 'ambulance chasers'.

'It is critical that we do not undermine the trust in the RAC brand,' he added.

The RAC intends to significantly grow its roadside business and develop more flexible types of cover, such as cheaper packages for people who have just passed their driving tests through its driving school arm, BSM.

The refocus of its marketing strategy coincides with a department review, which has seen a number of roles made redundant and the merger of internet operations with its group marketing function.

Last year the RAC ranked top for customer satisfaction in the authoritative JD Power Roadside Assistance Study, beating arch-rival the AA (Marketing, 14 July 2004).

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