PRODUCT MANAGEMENT Outline: o o o o Introduction Identify the current products and product line Overview of the sales information

for the past years on all products Analysis of this data -successful products -products failed o o Portfolio management: BCG and PLC. Recommendations: How the company can improve the performance of the chosen product Other relevant issues Political influence Natural calamities

Company Profile
About Lion of Kenya Our history The roots of Lion of Kenya can be traced back to the very beginnings of insurance in Kenya, with the appointment of Smith Mackenzie & Company as the Royal Exchange Assurance's Agent in Mombasa in December 1895. Lion of Kenya as a company

came into being in 1978. At the time, the Guardian Royal Exchange and Commercial Union were the majority shareholders. In 1979, Lion of Kenya took over the operations of the Joint Marine Office and the latter became a department within the company. To this day, Lion of Kenya continues to enjoy this rich heritage of experience and expertise in writing marine business. No doubt this is attributable to the Company's association with the JMO. What we do
Lion of Kenya is a general insurer transacting all classes of general insurance business. Starting with a modest gross premium of Kshs 48 million in 1978, the company has grown from strength to strength and the gross premium currently exceed Kshs 1.7 billion. At inception in 1978, shareholders' funds amounted to Kshs 8.75 million with total assets of Kshs 88 million. By the end of 2008, these figures had increased substantially to Kshs. 1.2 billion and Kshs 4.6 billion respectively. This phenomenal growth is attributable to our clients and intermediaries who have supported us over the years.

Introduction
Lion of Kenya insurance company provides services many Kenyan have yet to term as essential in their life. There are still quite a few Kenyans yet to be won over and this is an uphill task the marketing department has to deal with. Product management is a necessary strategy in seeing the success of Lion of Kenya. However popularity is slowly beginning to rise with the increased risk uncertainty

Product line
Lion of Kenya has a wide range of products to cater to the different market segments and their varying needs. These products lines include: o Motor insurance- this caters for all vehicle owners, private, motorcycles and commercial vehicles. This client base has an option of comprehensive cover or partial cover. Marine insurance- this caters for those in the import export businesses who receive or send shipment. Similarly insurance for private owned boats, ships, yachts, against theft/destruction/capsizing. All risk- this covers all personal valuable items from fire, theft, destruction e.g. laptops, televisions, and even bonds and money. Aviation- covers all private owned and commercial aircrafts

Agriculture- this covers farmers with crops, livestock, greenhouses from fire, windstorm, excessive rainfall, uncontrollable pests and diseases, drought except under irrigation farming, hail. Business insurance- this covers most businesses and industries and includes; work injury benefits, employee liability, machinery breakdown, machinery loss of profits, contractors and industrial all risk.

Sales report summary

Insuranc e policy 2005 22 8 13.1 4 2.4 6.77 2006 23.4 7.7 12.4 2 3 7.09 Sales (millions) Total cumulat ive sales % 2009 24.8 6.2 10.5 2.77 3.33 7.23 2010 24 7 12 3.19 3.38 7.17 42.58 12.42 21.29 5.66 5.32 12.72

Motor Marine All risk Aviation Agricult ure Business Total sales Summary

2007 23.13 5.8 11 3.6 3.03 7.12

2008 25.66 6.6 11.7 3.4 2.75 6.88

From the sales report, motor insurance accounts for over 42% of the companys total income. Motor insurance has remained the most popular of the services in the Lion of Kenya product portfolio over the years, thus contributing to the companys success; while agriculture and aviation have taken the back.

Portfolio management
Lion of Kenya has applied a variety of portfolio analysis tools to manage their product lines. The BCG tool has gone a long way in assisting the company in determining the products within the product line that has shown significant success and those not attracting enough clients to be divested. This tool essentially forecasts long-run market growth and relative market share.