Marketing : Happy Insurance Company - Business Plan Example

HAPPYINSURANCE [Your Happy Insurance Company 200 Broadway Av ABN: 53 004 085 616 ACN: 000 000 019, 007 249 989, 005 749 986 HAPPY INSURANCE COMPANY Marketing Plan Prepared: 17 March 2015 Table of Contents Executive Summary 3 Vision 3 Mission 3 Target Market 4 Competitor Analysis 4 Marketing Objectives 5 Products and Services 6 Marketing Strategy 6 Advertising and Promotions 6 Position 7 Pricing 7 Distribution 7 Public Relations 7 Marketing Activity 7 New Clients 8 Sales Increment 8 Growth Implementation 9 Timeframes for Growth 9 Staff Requirements to Ensure Growth 9 Achievement of Marketing Objectives 10 Importance of Contingency Plans 10 Works Cited 11 Marketing Plan Executive Summary Making considerations on our strengths, current position, and opportunities, at Happy Insurance Company we plan to boost our overall sales by a12% and profits by 18 %. In response to this our main objectives include; i. Market share growth of 1.5% quarterly. ii. Establish favorable relationships with current customers and partners such as brokerage companies. iii. Create a favorable corporate image as the best insurance firm in the industry. iv. Acquire highly competent sales team and motivate it through incentives to increase overall sales. v. Further market research to identify potential customers with minimum chances of claims to make them clients. To further facilitate achievement of our plan we have identified our main target as senior citizens, middle income families and small scale seasonal businesses within Sparkling City. However, achievement of these plans also requires identification of main competitors whom we have identified as large insurance companies, broker companies within the region, and agents. Vision We intend to become the world’s leading insurance company with a keen interest on attaining ultimate customer satisfaction. Mission To establish long term insurance solutions to customers through convenient and favorable mechanisms. Target Market Our current target market consists of senior citizens, middle income families and small scale seasonal businesses within Sparkling City. This market segment comprises of a significantly robust population and more importantly it is surrounded by relatively few risks. The choice of the target market is guided by extensive research on the essential aspects population in relation to insurance. Research study records show that about 39% of the population is above 45 years, the average income is $27000 amid an unemployment rate of 10%. Additionally, there are relatively many seasonal small scale businesses that mostly target tourists. We are restrained about dealing with low income earners due to increased risk rates emanating from poor maintenance of insured property. For example, some of the low income earners may prefer to conduct crucial repairs on their own rather than seeking professional assistance thereby increasing risks of further or total damage. Confining our services within the state is facilitated by concerns over payment difficulties mainly due to lack of an effective and convenient payment mechanism. For instance, there may be difficulties working with distant brokers thereby inconveniencing both the customer and the company. Moreover, collecting all essential information pertaining to people in distant areas may prove difficult thereby limiting the ability of proper client assessment. Competitor Analysis The main competition comes from large insurance companies that are already established hence have popularity and customer loyalty especially from the senior citizens. The increased level of competition is facilitated by our target market of middle income earners hence the ability to seek services from large insurance firms. Moreover, existence of unions within professions may favor the large companies due to provisions favoring group plans such as among teachers. However, due to their robustness their prices are quite high and increased client pool reduces quality of services offered such as due to lack of direct interactions with insurance company representatives. Main competition comes from two major brokerage firms in the locality, Top Brokers and Thick Inc. Their main strength is that they have been in existence for a relatively long period hence have gained loyalty and trust from the locals. Additionally, these firms give services are relatively low prices and cover the entire population including low income earners. Nonetheless, the firms are quite small and do not arguably have large financial resources required to extensively cover the entire market. Moreover, due to the relatively small financial resources they do not have highly competent personnel with the necessary aggressiveness. Another major source of competition comes from the agents whose main strength a relatively large financial backup enabling them to carry out extensive advertising. Additionally, their prices are relatively low and the some of the restrictions curtailing our market do not affect them. Nonetheless, due to their robustness and high numbers of clients they do not have strong relationships with the people such as conduction of face to face dialogues. Marketing Objectives i. Market share growth of 1.5% quarterly. ii. Establish favorable relationships with current customers and partners such as brokerage companies. iii. Create a favorable corporate image as the best insurance firm in the industry. iv. Acquire highly competent sales team and motivate it through incentives to increase overall sales. v. Further market research to identify potential customers with minimum chances of claims to make them clients. Products and Services Happy Insurance Company mainly deals with provision of insurance for homes and businesses in Sparkling City. In the last 10 years since our establishment we have provided our wide range of clients with the best insurance cover paying great consideration on prices that are favorable to the needs of customers. Additionally, we are proud of our achievement in ensuring speedy claim settlement over the years. We have maintained favorable relationships with various independent brokers in the region to ensure quality service provision. As such, there exists good relationships between our clients and specific brokers thereby ensuring satisfaction from all ends. Our team of highly qualified professionals also gives advice and counseling services on insurance issues both to our existing clients and potential clients. This has been facilitated by the growing need among clients to learn more about the general concept of insurance, their policy coverage, and how to get the most from their respective covers. Furthermore, we offer guidance and insurance, where applicable, on seemingly external matters such as purchase of homes and business startups and expansion to both our clients and mutual clients. Marketing Strategy Advertising and Promotions The most appropriate avenue of promoting the services provided by Happy Insurance Company is extensive and aggressive advertising. However, the focus is not just on carrying out numerous advertisements but also on using appropriate approaches and measures to advance it. Effective advertising includes incorporation of differentiation points and not only on the favorable prices. This entails creation of awareness and the need to use Happy Insurance Company rather than any other insurance. Additionally, it is extremely important to not only focus on products and services provided but rather on the company itself. This is because favorable corporate image of the company is bound to bring clients. Position Other than advertising, Happy Insurance should also strengthen relationships with clients through increased contacts. While this boosts customer loyalty it also ensures that all covers are current and adequate. Pricing Happy Insurance must ensure that the price of products and services are competitive and favorable to all our clients. Additionally, payments should suit customer’s preferences such as through giving options on convenient payment dates. Distribution To further increase customer convenience, Happy Insurance provides for payment options either directly to the offices or through our listed broker firms and agencies. Public Relations Finally, Happy Insurance Company will increase its participation in community based projects to improve its corporate image and also give back to the community. For example, this may be done through sport sponsorships and involvement in senior citizen groups and associations (Contreras and Inter-American Development Bank, 2004, p.117). Marketing Activity Marketing Activity Person Responsible Date of completion Cost $ Success Indicator Advertising and promotion Happy Insurance marketing team 17/ 03 /2016 6000 6% market share increment Public relations seminar 1 Selected Happy Insurance representatives 22/05 /2015 400 0.5% client increase Public relations seminar 2 Selected Happy Insurance representatives 30 /08/ 2015 500 1% client increase New Clients A clear indication of business growth and development is increment in number of clients served. As such Happy Insurance Company is highly interested in acquiring new clients through employment of appropriate strategies such as; 1. Increased advertising to increase awareness about the existence of Happy Insurance Company and its products and services. 2. To invest deeply in a team of highly skilled sales representative with the necessary abilities of selling insurance products to new clients. 3. Increase interactions with associations and brokers within the region. 4. Maintain high levels of professionalism and customer service to build favorable reputation within the region. 5. Participation in community activities to build a reputable corporate image thereby attracting new clients. 6. Carry out detailed market research to identify new unexplored market segments and customize products to fit them. Sales Increment Promoting the current level of sales requires integration of the above strategies of getting new clients and an addition of others including; 1. Increasing emphasis on service and support to increase customer satisfaction. 2. Increase the number of services provided to include others such as automobile insurance. 3. Expand services a bit to other areas close to Sparkling City where current reliable partners such as brokers operate. 4. Introducing better employee incentives especially among sales representatives to boost individual performance. Growth Implementation Implementing the planned growth however requires creations of a given set of conditions and favorable environment. Most importantly is conduction of market research to identify not only new opportunities but also to emerging trends within the industry. This is particularly important in making appropriate adjustments that suit current market trends. Additionally, implementation of growth requires internal analysis and improvement. In simpler terms this is to say that there is need to create a conducive working environment within the company such as through promotion of team work. This is essential in attaining the overall productivity of the company and ensuring higher employee retention. Timeframes for Growth Creation of growth time frames is highly essential since it allows for evaluation of whether progress is being made within the required confines. The overall performance should be calculated based on the quarterly share market increment. However, in addition to this, growth marked by expansion to other three regions yet to be determined is expected to take effect within the next five years. Staff Requirements to Ensure Growth i. All Happy Insurance employees should portray a sense of professionalism and expertise. ii. Sales representatives should ensure they meet the monthly targets in the respective responsibility criteria. iii. All Happy Insurance workers should maintain favorable relations to promote team and reduce conflict levels. iv. Happy Insurance advocates for diversity and equality to increase the pool of new ideas. Achievement of Marketing Objectives Determination of achieving the set marketing objectives will be done through examination and evaluation of whether the set sales projections and milestones have been attained. Results corresponding to these projections and milestones indicates that the set marketing objectives have been met. Importance of Contingency Plans Coming up with appropriate contingency plans is an advisable for preventing total failure of the marketing plan. This is because failure of one or several plans is met with ready mindsets and countered with the set measures in place. Works Cited Contreras, C M. E. Corporate Social Responsibility in the Promotion of Social Development: Experiences from Asia and Latin America. Washington, DC: Inter-American Development Bank, 2004. 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