Hagerty Boston Consulting Group Matrix

Hagerty's strategic partnerships are a key driver of its growth, positioning them as a star in the BCG matrix. The planned rollout of the State Farm Classic Plus program to over 25 states in 2025 is a prime example, enabling Hagerty to access new customer segments and expand its policy count rapidly.

These collaborations are crucial for Hagerty's ambitious goal of more than doubling its policy count to three million by 2030. By leveraging established distribution channels through partners like State Farm, Hagerty can efficiently capture market share in high-potential areas.

Stars in the Hagerty BCG Matrix represent segments where the company holds a strong market position and experiences high growth. Hagerty's focus on modern classics and enthusiast vehicles, particularly those from the 1980s to 2000s, exemplifies this. The company's strategic partnerships, like the State Farm Classic Plus program, are key drivers, expanding policy counts rapidly. Furthermore, Hagerty's robust membership growth, with 279,000 new members in 2024, and the significant expansion of its Marketplace, which saw revenue surge by 176% in Q1 2025, solidify its star status.

Major, well-established events like The Amelia Concours d'Elegance and the Greenwich Concours d'Elegance are cornerstones of Hagerty's portfolio, acting as significant cash cows. These events consistently draw substantial crowds and secure robust sponsorships, leading to predictable revenue streams and bolstering Hagerty's brand prestige within the collector car community.

These established concours are undisputed market leaders in their specific niche. Their established reputations and dedicated fan bases mean they require only moderate promotional investment to maintain their strong performance. For instance, The Amelia Concours d'Elegance, a premier event, typically sees attendance in the tens of thousands, with significant media coverage that extends Hagerty's reach far beyond the physical attendees.

Beyond direct revenue, these events significantly contribute to Hagerty's brand equity and foster deep community engagement. They provide stable, reliable returns year after year, reinforcing Hagerty's position as a central pillar in the classic car world and ensuring continued customer loyalty.

Hagerty's core insurance for vehicles manufactured before 1981 is a quintessential cash cow. This segment, representing a mature market, generates consistent premiums with an estimated 14% market share and an impressive 89% customer retention rate.

The Hagerty Drivers Club, boasting 876,000 paid members as of early 2024, provides a predictable and recurring revenue stream. This strong membership base acts as a financial engine, funding broader business operations and expansion.

Flagship events like The Amelia and Greenwich Concours d'Elegance are significant cash cows, drawing large crowds and securing robust sponsorships. Their market leadership requires only moderate promotional investment, ensuring stable, reliable returns.

Hagerty's media and content library, including its magazine with a reported 90% annual engagement, builds brand value and customer loyalty efficiently. This content acts as a cost-effective marketing tool, driving consistent traffic and reinforcing brand authority.

Specialized roadside assistance and claims services are vital for customer retention, contributing to a high Net Promoter Score of 82. These mature offerings provide stable revenue and reinforce Hagerty's reputation for reliability.

Within the Hagerty BCG Matrix, niche print publications that are becoming outdated can be categorized as dogs. These might be publications with a shrinking subscriber base and significant costs associated with printing and distribution. For instance, a 2024 report indicated that print magazine circulation in the US has seen a steady decline, with many niche titles struggling to maintain relevance against digital alternatives.

The financial viability of these legacy print formats is often questionable in today's digital-first environment. If these publications aren't generating enough revenue or capturing a meaningful market share, their continued investment becomes a drain on resources. The ongoing migration of readers and advertisers to online platforms further highlights the challenges these specific print assets face.

Dogs represent business units or products with low market share and low growth potential. These are typically areas that consume resources without generating significant returns, often requiring a strategic decision regarding their future. In the context of Hagerty, these could be legacy event formats or niche print publications that are no longer financially viable.

For example, a niche print magazine with declining readership and high production costs would fit the dog category. In 2024, the continued shift to digital media means many print publications struggle to maintain profitability, especially those not catering to a highly engaged, niche audience willing to pay a premium.

Similarly, physical locations or regional hubs that are not attracting new members or driving transactions, while incurring substantial overhead, are also dogs. These might represent a small fraction of overall business activity but disproportionately drain company resources, making them candidates for divestment or restructuring.

The key characteristic of a dog is its inability to generate substantial cash flow or contribute meaningfully to future growth, often necessitating a critical evaluation of their continued operation.

Hagerty's move into the post-1980 enthusiast vehicle market, a segment with an estimated $30 billion addressable market, presents a significant opportunity but also a question mark. Currently, Hagerty only captures about 2% of this vast segment, indicating substantial room for growth.

This expansion is crucial as younger demographics, particularly Gen Y and Gen Z, are showing increased interest in these later-model enthusiast vehicles, driving potential growth. However, achieving a stronger foothold requires considerable investment in marketing and product development to effectively convert these vehicles into Hagerty's Stars.

Hagerty's ventures into new international markets and the development of advanced digital platforms like Duck Creek represent classic question marks. These initiatives demand substantial investment with uncertain future returns, as the company aims to build market share in emerging areas, such as personalized AI/ML-driven insurance, which saw continued investment in 2024.

The expansion into the post-1980 enthusiast vehicle market, a segment valued at $30 billion, also falls into the question mark category. With only a 2% current market share, Hagerty faces the challenge of significant investment in marketing and product development to convert this potential into a dominant position, especially as younger demographics show increasing interest.

Developing new digital community platforms is another question mark, requiring considerable investment to build a user base against established social media giants. While the global social media market was valued at $2.07 trillion in 2023, capturing user attention in this competitive landscape, where digital advertising spending exceeded $600 billion globally in 2024, poses a significant hurdle.

Exploring new financial services like specialized financing or wealth advisory for collector vehicles also fits the question mark quadrant. These areas offer high growth potential, tapping into a market projected to reach $100 trillion by 2025 for wealth management, but require substantial investment to establish a competitive presence.