1.

Background

AIA Group Limited, it is the largest public listed life insurance group in Asian. The
company provides general insurance services and financial services, life insurance for
individuals and businesses, as well as health and accident insurance. The company’s
operations are carried out by other segments in different countries, such as Hong Kong,
Thailand, Singapore, Korea, Malaysia, China and other countries. The company was
founded by Cornelius Vander Starr in 1919 and is headquartered in Hong Kong. On 2
June 1919, there is a young American call Cornelius Vander Starr started his insurance
agency at 15 Nanking Road, Shanghai. Starr start up his business with one simple
business idea: people in Asia would find insurance attractive because of their desire to
care for their family and be prudent. Due to this idea, AIA group has successfully
expanded his business in all around the world.

AIA had planned to be listed company in Hong Kong Stock Exchange on 3 April
2010. When during the IPO process, a UK-based financial services company has the
intention to acquire AIA Group for 35.5 billion US dollar, but the deal was rejected by
AIA Group. Then AIA has done the IPO process on October 2010 by raising
approximately 20.51 billion US dollar and also become the third largest IPO ever.

In today, AIA not only become a well-known insurance company in Malaysia, but
also the whole world. It is due to AIA had done a lot of benefit to the public and big
corporates likes financial supporting, create jobs, economy growth for nation. One of
the examples, for those people who facing unexpected losses or business operations
interrupted, AIA can offer him a financial support to solve the problem if he has bought
the AIA’s business protection plan before. Therefore, the AIA group in today is playing
an important role of ‘giving a hand’ when people is facing an economic hardship.
3.Market Segmentation

Market segmentation is a process of segmenting the market that to differentiate the

potential customers into groups based on different characteristics. There are four types
of segmentation exist in our world which is Demographic segmentation, Geographic
segmentation, Behavioural segmentation and Psychographic segmentation. All those
types of segmentation is very useful for marketer to determine their marketing
campaigns.

For the AIA group, we realise that it is are more tend to be Demographic segmentation.
It is because all the product that introduced by AIA group are based on demographic
factors, the consumer needs, wants will change frequently due to demographic variables.
For examples, age and occupation. These variables are easier to measure than the other
variables. AIA segment the market by age and occupation, for example the coverage
age for the policies are from 17 to 70 years of age, and occupation class 1 to class 4.
Company will use these variables to determine the policy holder premium payment. For
example, the older persons pay the premium are usually higher than adult due to the
higher exposure risk.

4.Market Targeting

Next, for the market targeting is the one that to help person to choose which type of
potential customer that should be focus more. It is because in real life it is impossible
to serve all consumers in the market due to the different needs and wants. Therefore, it
is important for marketer to do a Market Targeting that to maximize their product sales
by fulfilling their targeting customer satisfaction. There are four types of market
targeting which is differentiated marketing, undifferentiated marketing, concentrated
marketing and micromarketing.

For the AIA group, it more likely is a differentiated marketing. AIA group use this
strategy to target several market segments and design separate offers for each. For
example, AIA not only provide life insurances, health and disability insurance, but also
provide accident protection during your journey and homeowners fire insurance which
provide a coverage to building and covers loss or damage caused by fire, explosions or
lighting strikes. By using this marketing strategy, AIA fulfils the need as many
customers as possible.