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Executive Summary

PGI (Pure General Insurance) has struggled to establish its highly competitive and fast changing environment since 1970s. In UK, the company has tremendous growth as compared to other insurance companies but in many countries the company is experiencing small growth. It is significant for PGI to evaluate its present position and future objectives. The following marketing plan will support to measure current position of PGI in relation to its competencies and environment. I will establish novel strategies to ensure long term profitability and remain competitive via systematic method.

Question.1
A-Advice to PGI about promoting to these customers In marketing, customers have great value for organizations products and services. In my point of view, PGI should promote to customers through offering greater services, pays their claims quickly, threat the customer fairly, and maintain a good reputation in the mind of customers. In order to obtain all aforesaid objectives PGIs marketing mix program can better support the company to promote customers. Company should introduce new products and services (insurance policies) with comparable prices and attractive packages. Quality will be the main ingredient in all products and services that will enable the PGI to promote their customer to the great extent. It has been experienced by the PGI that lower quality customers that made number of insurance claims increased the operating cost for the PGI. Therefore, PGI will have to maintain and equipped entire its marketing mix program according to the needs and preferences of its customers. Further, communication channels, distribution centres and pricing policies should be according to the capacity of customers and should market driven. Integrated marketing communication and persuasive marketing communication channels can better support the PGIs marketing mix program in order to attract the potential customers. Moreover, today in the era of competition, distribution outlets and channels are also considered as best promotional tools for the company. Lastly, PGI should tailor its marketing and promotional programs according to the preferences of customers in order to promote them. B-For interview transcripts see last section of PGIs case study.

Interviewer: Sales Director Interviewee: Me Sales Director: Lower profitability when compared to direct insurers and brokers

Me: Low profitability can increase through maintaining cost and increasing market share or sales. It is essential for every organization to cope with its profitability level in order to get success. Sales director: Why it is necessary to expand product range in order to exploit customer base? Me: Product range can help the organization to better satisfy customer needs and wants. Further, it will help the company to increase its market share through attracting various new customers and satisfying existing or loyal customers. Sales Director: How single product offering lead to several provider customer relationship? Me: Single product offering increase its image due to its single sale from many providers so due to its monopoly several providers will create relation this single product offerings.

Question 2
Situational Analysis
(a) Customer audit The profile of PGI customers demographics are based on age, income factors and social class. Age is the most critical factor for PGI customers in order to conduct customer audit. The customer of PGI belong to various social classes like upper class, lower upper, middle class, upper , middle class, lower middle class, lower class etc. The amount of privately owned houses helped by a mortgage policy is the fundamental is considered as prime indicator of the amount of sold insurance policies. Table below depicted the shows the average length of mortgage and customer according to PGI.

Description 1993 Average size of 23.3 years mortgage Customers average 24.5years age

1997 27.1years 26.3years

2004 30.2years 27.8years

2010 34.1years 32.4years

(b) Internal audit PGI has a strong market share according to 2005 to 2010. According to 2010, 566 insurance policies have been finalized by the company. Existing affinity groups of PGI gives an employment to 4.5 million customers out of 5.2 million, the rest customers are retired from their perspective industries. Internal policies have tremendous effect on customers so that customers can easily attract from organizational image and policies.

(c) Macro audit The environmental factors have great impact on PGIs policies and workings. Following are the macro environmental factors. Legal/Political: PGI has presses by the conservative government of 1980s in relation to labour government and sympathetic legislations. These policies disturbed the overall insurance industry. On UK roads, for driving motor insurance is a legal and mandatory requirement. Economic: The country of UK has a good solvency condition in the national economy. UK is the only country whose operations were not badly affected by worlds financial crises occurred from 2004. The Insurance industry has a steady performance all over the UK. In 1970s, high inflation rate due to conservative government were caused the high level of unemployed workers. Cultural/Social: The people of UK have been remained he major users of insurance policies. Due to the high level of unemployment there is increasing public concern to various crimes and linked with effect of greenhouse and extreme weather conditions. Therefore, household insurance demand has remained buoyant. Technological: Due to the introduction of telephone and in 2000 internet it has been possible to pursue and maintain the record of various consumers in an efficient way. Further, sophisticated technology has great contribution in the functions of insurance business in all over the UK. Technology can enable the managers to get the competitive advantage over competitors (Raymond, 2010). (d) Micro Pure General Insurance has a good information portfolio which is enables the marketing consultants to overview and evaluates the new product line of insurance. Further, internal strategies have great emphasis on insurance households. (e) Competitor In UK, there is extensive competition in insurance industry. The insurance include Mills, Sable, Bullring, Blair Patterson, TE Bexley and Cherry Ash. The main competitors performance is an under.

Insurance Players Mills, Sable Bullring Blair Patterson TE Bexley Cherry Ash

Households 6.6% 8.0% 9.2% 3.4% 6.1%

Gross Premium Income Average Premium m 281.49 397 300.76 402 350.46 370 201.34 301 297.33 288

Question 3

Marketing Plan Outline


Executive Summary Marketing plan has significant importance for PGIs marketing team because team is responsible for getting feedback from customers satisfaction and guide the customers about various organizational policies and strategies. Marketing mix and promotional mix can better support the companies in order to pursue its potential customers to enhance the market share (Kotler and Armstrong, 2006). Mission statement Pure General Insurance is a profitable UK based company socializing in unique personal and commercial product lines delivered with exceptional service. Business objectives    To gain the recognizable market position through market driven prices and innovative insurance policies to potential customers To offer unique and beneficial products and services To create a differential image in the mind of customers as compared to other competitors

Situational analysis The situational analysis is based on internal audit and external audit. Good operational polices will help the PGI to smoothly run its functions in UK market. Strengthen information and promotional system will help the company to attract number of insurance households in UK. Marketing objectives of the PGI will emphasis on each sector and will be tailored according to

the preferences of consumers. The overall competition position of PGI is better as compared to other competitors and in the future company will offer more competitive prices and comparable products and services in order gain recognizable leadership position in the market. In the future, through better strategic decision making PGI will better cope with various external issues and factors. Introduction of new technologies will help the company to strengthen the sophistication of technological system of company. Overall global and environmental crises will be tackled by PGI in an amicable manner. SWOT analysis The SWOT analysis of PGI is depicted in table below.

Strengths(Internal)
1. Increasing premium rate leads to more 2. 3. 4. 5.

Weaknesses (internal)
1. Slow to responding current market 2. 3.

commission Strong financial position Sufficient production facilities Increasing product variety Prospect required greater services from insurance brokers

4. 5.

changing needs Growing trend of financial trend Greater competitors for insurance agencies to compete with internet and bank players Weak marketing and distribution facilities Enduring profitability
Threats (external)

Opportunities (external)
1. Cross selling ability 2. Diversification facilities 3. Innovative technologies enable the PGI

1. Increasing need for insurance and

to better perform transactions 4. There is increasing need of client for insurance consultant 5. Excellent Awareness 6. Large UK industry

cost might threat a point where a backlash occur 2. Government regulations on health care issues and impact of terrorism on business 3. Lower profit margin due to increasing expenses 4. Global competition in insurance companies

Marketing Objectives The marketing objectives of PGI will be:     To conduct the marketing mix and promotional mix programs in an efficient and effective manner in order pursue the more households To increase the market share through lucrative marketing strategies and promotional offerings To the implementation of marketing campaign for target market via newspapers, world of mouth, flyers, posters, TV, Internet and various other amicable approaches To develop the enduring relationship with potential customers in order to gain competitive advantage

Marketing Mix The marketing mix of PGI will include followings products, prices, and promotion and placement strategies. PGI will not only sale an insurance policy to its customers but also its agent should provide advice and assistance, facilities of compensation and claim and prestige of company to customers. In the PGIs business the decisions of price should be concerned with:    The charge of premium against policies Charging of interest for defaulting the credit facility and the payment of premium Charging of commission for consultancy activities and underwriting

The placement part of marketing mix should be related to two vital facets. First, to the management of insurance personnel and second is to locating a branch. The management of insurance personnel and agents should find significant with the view to maintain the products and services norms. The promotional campaign of PGI should be effective. There is local competition in UK between various players so PGI should emphasis on extensive promotional activities in order to attract customers and compete with insurance players. There is a need to provide effective and proper training to insurance agents and personnel in order to better pursue the customers. Implementation In order to better implementation research and development will be contributed to the great extent. Research and development has more importance for organization to introduce new ideas or products (Wit and Mayer, 2010).Therefore, managers of PGI must arrange an external research or survey for every six months in order to measure the current position of PGI against various competitors. This strategy will help the PGI to implement its marketing plan and strategies in the best interest of the organization.

Control Controlling is referred to the evaluation or check and balance of either everything is occurred according to plan or not (Robbins and Coulter, 2007). Marketing managers need to measure the performance of marketing team. The marketing must provide report to marketing manager after every quarter about their results and progress. Marketing team has significant value because they are responsible to get customers feedback about satisfaction and explains the clear picture of organizational products and services to customers. Effective controlling can enable the PGI to better respond the competitor strategies and polices. This overall marketing plan will support the PGI to take corrective actions in order to solve various complex issues and problems related to insurance policies.

References:

Kotler , P. and Armstrong, G. (2006) Principles of Marketing, Prentice Hall Inc. Raymond, H.A. (2010) 'Technology value as a dynamic strategic framework', European Business Review, vol. 22, no. 5, pp. 556-571. Robbins, S. and Coulter, M. (2007) Management 9th Edition, Pearson Prentice Hall. Wit, B.D. and Mayer, R. (2010) Strategy: process, contect and centext, Thomson.