International Marketing Plan for Allianz - Case Study Example

International Marketing plan for Allianz 2nd December 2009 Executive summary Allianz is an international company specializing in the provision of financial services, and the company's headquarters is in Munich, Germany. In the global business world of today, companies cannot afford to just remain domestic, as this could lead to a decline in the company's reputation and business. Serious companies have to work hard on their international presence, to ensure that their stakes in the market are maintained and increased. Founded in the year 1890, Allianz has branches in more than 70 countries and more than 180,000 employees worldwide. The company has acquired about 60 million customers to whom it provides property and casualty insurance services, health insurance, life insurance asset management and banking services. Allianz started to go international in the late 19th century when the company opened a branch office in London. Allianz now also has branches in Paris, Italy, Great Britain, Netherlands, Brazil, Spain, and USA. Allianz hopes to expand into Eastern Europe and establish branches either in Hungary or turkey. Since international marketing plans revolve around certain factors, the company will have to complete a thorough analysis of the countries in question, so as to determine the feasibility and viability of international services in these countries. This report will also discuss the viability of establishing branches in the Turkish or Hungarian market place. The Company is aiming to establish the organization in a global market. In order to do this an effective international marketing plan would have to be developed. Situation analysis The goal of this international marketing plan is the provision of specific directions for the company's marketing activities. Research will be carried out in various areas like segmentation, marketing, pricing strategy, targeting and positioning, promotional strategy, control and implementation, in order to achieve set goals. This marketing plan will also detail what the company can achieve with such an international marketing strategy and hoe this plan will help in realizing company objectives. When an organization has decided that it is beneficial to go international and start operations in another country, "it is necessary to define company policies on international marketing and the company's objectives for creating promotional campaigns that are efficient. As long as Allianz continues to offer superior services that are efficient, then the company will be better than a domestic company. As the global market continues to grow bigger and population increase continues, the company must engage in effective international marketing, in order to acquire and maintain more clients." (An in depth analysis of Insurance Industry) Interest in Hungary and Turkey Numerous variables function within an international company such as this, which deals in a global market. These variables can influence the company's strategy either directly or indirectly. Being well implanted in various parts of the world Allianz seeks to invest other markets in Europe. Marketing strategy At Allianz, the goal of business is the acquisition of clients and maintaining these clients as customers. The company's international marketing strategy should reflect this, as the company continues to build its reputation. The strategies that would be used for this international marketing will be a push/promotional strategy and pull/selling strategy. The push/promotional strategy will use the company's trade promotion activities and sales force to create consumer demand internationally. The pull/selling strategy involves expenses on promotions for consumers and advertising in order to build up consumer demand for services SWOT analysis The sections highlighted below constitute the most relevant issues for Allianz, and the success of the company. Strengths The company's strengths include: a brand new international approach, staff experience, targeted focus and marketing prowess. Allianz would have to take advantage of these strengths in order to utilize the company's opportunities and also manage threats effectively. Possible weaknesses to the company's international campaign are basically those problems inherent in new product and financial services marketing. Allianz's Strengths also include Product differentiation Superior experience: since the Allianz team is quite experienced in marketing, the company has to capitalize on this experience and bring it to bear on the international market Popularity of the company: strong companies like Allianz tend to have a kind of cult or customer loyalty for many years, which will be brought to bear on the international scene Weaknesses Launching new products and services internationally brings disadvantages of having to build a whole new market structure Opportunities A growing international market Potential for continued improvement Vertical integration: Allianz also has the potential to integrate more services into its international presence and add more branches in various parts of the world Threats The latent competition ensures that there would be other companies who will begin to offer similar services internationally. Unforeseen economic downturn may also reduce fluid/disposable income in spite of a strong domestic economy and anticipated continuous growth. Marketing mix The company should Endeavour to employ a wide range of advertising promotions and communications in order to achieve set out international marketing goals Marketing budget The company's marketing budget must be reviewed and the marketing director would assume responsibility for the budget, excluding the budget for developing the company website. The budget for the international marketing campaign needs to be evaluated on a quarterly basis, with adjustments made to media vehicles, advert schedules, and effective frequency as required Promotion As part of international marketing promotions, there should be grand PR parties and sports events held and organized for prospective clients. Local, national and international media will also be used and sales personnel will be stationed in target market locations like shopping malls and concerts and other related events Financial projection In order to make Allianz's financial services more appealing internationally, the company will have to look towards market segmentation. In looking towards market segmentation, the company will be able to identify specific customer characteristics of interest in specific financial services. As noted on the website of the Center for Business Planning, "the purpose of for segmenting a market is to allow the sales/marketing program to focus on the subset of prospects that are most likely to purchase what the company offers, and this can help to ensure the highest yield/return for sales/marketing expenditures, if done properly." (Center for Business Planning, 2009) The international marketing plan developed by Allianz must make a careful analysis of market research to lead to useful decisions regarding the nature of the market in hungary, and of the potential clients in that country. To be able to satisfy the needs of these customers, the company must identify ways to understand its internal and external situation, including the market environment, the customer and the capabilities of the company PEST Analysis Political Factors Increased service tax on premium 5% discount on corporate premium Hike in FDI limit Pricing control in general insurance Favorable regulation for rural insurance Economic Factors Increase in Gross Domestic Savings Social Factors Low insurance coverage Rise in elderly population Growth of insurance Technological Factors Automation of processes Increase in CRM solutions Internet driven information era (Insurance Industry: An Analysis) Implementation and control Allianz's international marketing efforts will be designed to launch and provide sales of goods and services. The marketing director will be in charge of tracking the various programs and changes might be made to the marketing mix if there are no appreciable results. Attention should also be given to some other factors like economic recession, extremely low sales, and the expensive nature of certain types of media that will be used for the international marketing plan, as these factors might influence the budget and marketing mix. The company's international marketing efforts will be reviewed quarterly. Differences between revenue and sales goals during the first year of operation will be the main source of comparison. Customers' feedback will also be sought on marketing efforts and there will be surveys and focus groups organized to evaluate the efficacy of adverts. Conclusion Assessment of external factors can help a company to position itself within the environment in which the company operates. Although there are various macroeconomic factors that can affect a company like Allianz, the direction and strength of major industry shaping trends can be gauged by environmental factor assessment. This type of assessment may seem to pose a threat on some occasions but on the other hand, this assessment can create new opportunities. During the environmental assessment, it is vital to seek out new opportunities for business, feasible market places and other companies with which some form of cooperative arrangement can be built. In order to be successful internationally, Allianz needs to understand, anticipate and take advantage of the changes in the business environment. The international environment does have a big impact on the determination of market decisions. A large part of international marketing requires the scanning of the external environment that affects Allianz, so that the company can respond profitably to the trends and market requirements of the targeted market. Allianz hopes to expand into Eastern Europe and establish branches either in Hungary or turkey. Due to Global currency issues and the effects of previous economic recessions which have created problems for the company and the services it renders, I believe that Hungary will be a more viable location for the company to invest internationally, as this country is more open to foreign investment. Industries in this country are also expanding and this represents more opportunity for the company's financial services. The firm has also been advised to take a long term view. This is a good strategy for the company, as most emerging markets are long term based, to guard against the negative effects of economic downturns References An in depth analysis of Insurance Industry (http://www.scribd.com/doc/8729865/An-in-depth-analysis-of-Insurance-Industry) Center for Business Planning, (2009) Marketingprofs.com (2004, May 18). How ethical, legal, and regulatory issues differ on a B2C site compared to a B2B site.. 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