Professional Documents
Culture Documents
Marketing Management
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EXECUTIVE SUMMARY
By focusing on its strengths, its present client base, and new value-priced
products in the next year, Pru Life UK China Jade Branch plans to increase gross sales
The Keys to Success and critical factors for the next year are, in order of importance:
3. Provide small businesses with an affordable basic business package. Pru Life UK
has been profitable, but recently has had a declining market share and this must be
with their decision makers and plotting a mutual plan for success. Get commitments
Investigate new markets that meet the marketing criteria by committing to small rural
areas;
with the clients, staff members, and companies, that respect the interests and goals of
each party. Success will be measured by the clients choosing Pru Life because of their
belief in the company’s ability to meet or exceed their expectations of price, service, and
expertise.
Knowledgeable, friendly staff that can empathize with our consumers' needs and
circumstances.
Policies that meet or exceed the expectations of our clients, and that are
A commitment to an annual insurance review for all of our clients. A phone call is
more than any direct mass marketer offers. Pru Life UK believes personal contact
customers are mostly young professionals and middle class families who demand
Pru Life UK has stressed to the insured the importance of good communication
between the agent and client to insure proper coverage is in place. Pru Life has noticed
as the clients become better informed about insurance that there has been a
tremendous increase in clients wishing in-depth discussions about their policy coverage
and how they can get the most value for their insurance.
The company's strength lies in the quality and depth of our products and staff.
The offices, unlike the competition, are open six days a week. Because of larger staff,
they are able to service the clients even when an agent is busy or out of the office on
inspections.
The past few years have seen tremendous upheaval in the insurance industry.
The number of players has increased in both agent and company communities.
contract cancellations, and refusal to write new business by some markets, they now
may find themselves in competition with some of the traditional distribution companies
that are setting up direct marketing facilities and branches. The banks now have
announced they will open stand alone insurance offices to retail insurance.
In spite of the above, Pru Life UK believes that insurance agents will survive. The
company is more automated than most service industries. Pru Life UK is close to the
broker-client relationship. The clients, in most cases, still do not care or know which
company they are placed with. They trust Pru Life UK judgment in selecting the proper
Based on these changes in the goals, outlook, and company culture, Pru Life UK
China Jade Branch anticipates that they will be able to make revenues of approximately
Php 10,000,000 by year three of the plan and a net profit of Php 1,000,000. The
STRENGTH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
WEAKNESSES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
OPPORTUNITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
THREATS ............................................. 19
REFERENCES ............................................. 27
MARKET SITUATION
Pru Life UK is a subsidiary of British financial services giant Prudential plc and
started its operations in the Philippines in 1996.. Established in 1848, Prudential plc has
an extensive network of life insurance and mutual funds operations around the world,
active in the United Kingdom (UK), Europe, the United States (US) and 13 markets in
Asia. It has 26 million customers worldwide and manages £351 billion in assets.
In the Philippines, Pru Life UK is one of the leading life insurance companies with
more than 20 years of excellence in providing relevant and innovative life insurance
products designed to meet the specific needs of the public. The pioneer and expert in
listen to and understand the financial protection and wealth management requirements
of the Filipino.
Pru Life UK serves in the Philippines with over 100,000 customers and a team of
recognized also as one of the fastest growing Prudential company in Asia by regional
Most of single individual especially young professionals need financial goals for their
future dreams and wants. For married individuals starting a family, they need financial
security product or a saving plan that can answer to their future goals, children’s
them wanted to have it personalized so that they can choose various components.
Most of them are saving in the banks, and then second option is through
cooperatives and third is through insurance company. They are saving in the bank
because it is safe and secured. They are willing to save for many years and have
willingness also to save outside of a savings account eg. Stocks and shares, funds or
bonds.
They invested on insurance because of its good customer service, financial advisers
and great benefits and they invested because of their friend, relatives or family. Another
reason for investing in an insurance policy is that they wanted it to be a financial support
in case of emergencies.
previous experience, like most of them are influenced by their family or friend
experience. We can also see here that salary mostly affect them in saving together with
their priorities in life. So, it is an implication that cost of saving or willingness to save
matters here plus the customer experience like updating them through text or email or
giving them good service and most importantly their knowledge about this financial
product. The use of information materials like leaflets is also an important consideration
PRODUCT SITUATION
Pru Life UK saves and protects life goals with wide range of comprehensive
plans. This will be able to tailor-fit protection benefits according to the needs and budget
of the client. While giving peace of mind against life’s uncertainties, Pru life UK products
also accumulate savings that will get through unexpected financial bumps and make
investment strategy, confident that investment is backed by the rich financial experience
Investments(Singapore) Limited.
COMPETITIVE SITUATION
Pru Life UK’s direct competitors are Sun Life Financial Canada (Philippines), Inc.,
Manulife Financial, and PhilAm Life. These insurance firms are among the top Life
Sun Life Financial Canada (Philippines), Inc is the number one insurer in
the Philippines. It offers a wide spectrum of products that include Life Insurance,
Accidental Insurance, Pension Plans, Education Plans and Mutual Funds. Sun
Life Financial Philippines is represented in the country by its life insurance arm,
Sun Life of Canada (Philippines), Inc. (SLOCPI); its mutual fund manager, Sun
Life Asset Management Company Inc. (SLAMC); and its pre-need business
distributor, Sun Life Financial Plans Inc (SLFPI).SLOCPI pioneered life insurance
in the Philippines in 1895. Today, it is one of the largest and most trusted
insurers in the country with almost half a million policy holders to date. (retrieved
from www.sunlife.com.ph) Sun Life offers individual life insurance products to fit
your lifestyle. Its differentiation strategy “It’s time for a brighter life” gives its
clients assurances of putting their family above all, providing for the present while
covering the future, preparing for a children’s education, own home and a family
vacation and the need to get a life insurance and an investment portfolio. It offers
Their actual products for savings are Sun Acceler8 and Sun Dream Achiever.
always looking for solutions that better meet the financial needs of its customers
made a search of “Redefining Standards”. This quest made AXA Philippines the
variable life products into the market. AXA Philippines is determined to give
customer’s needs, the way they want it. Currently AXA Philippines is offering
financial security to almost 500,000 individuals through its group and individual
life insurance products. As the pioneer in the market, AXA Philippines is offering
the second generation variable life products that provide the clients even better
financial security and improved returns. It targets young high potential prospects,
leaders and managers of tomorrow, aged 25 and up with a net spendable income
above 25,000 a month and the managers and leaders of today looking forward to
secure their financial future. Through market segmentation Philippine AXA is able
leading companies in the country, the Philippine American Life and General
Insurance Company (Philam Life) and Bank of the Philippine Islands (BPI).
Philam Life is the premier life insurance company in the Philippinxes and the
market leader for over 60 years. BPI is a leading commercial bank in the country
with over 160 years of experience in the local banking industry an extensive
branch network of more than 800 branches and 1,500 ATMs.(retrieved from
paying capability of securing the future of those who matter to them most through
peso investment.
Insular Life
Insular Life was established on November 25, 1910 at a time when the
Philippines’ leading and largest Filipino life insurance company, Insular Life
prides itself with its role in securing the lives of Filipinos families for close to a
century. Its roster of products from its ordinary whole life, endowment, limited-
plans not only offers the best cost- benefits ratios among insurance plans in the
market. More importantly, these are designed to allow individuals to wield control
personalized and friendly service. The company understands the Filipino culture,
which is why they provide the warm, friendly Filipino brand of service that makes
Insular Life unique. Insular Life length exists for 103 years in the insurance
industry. It is the only Filipino insurance company makes it to the top 10 making it
as the largest Filipino insurance company. The company offers best value for
money-dividends and cash values. Its policies generally pay dividends and build
up cash values. As a Filipino mutual life insurance company, all Insular Life
policyholders are part owners of the company. They have voting rights and their
product lines that are geared towards a wide market segment spanning the A, B
secure the financial future of his family. It also offers convenience with its no
protector and the guardian "Insular Life is your far-sighted guardian” that its
attributes can be associated with an eagle. Insular life strength was on strength
lay on our heritage, size, strength and stability, experience, being Filipino who is
the local champion. As the far-sighted guardian, they share their experience and
knowledge to help their customers lay solid foundations for the future. (retrieved
from www.insularlife.com.ph)
Manulife Financial
Manulife has been conducting business in the Philippines for over 100
years. One of the oldest life insurance firms in the country, Manulife received its
license in 1907 to operate in Manila, 20 years after the company was first
concurrently held the post of Prime Minister of Canada. The first foreign company
to list in the Philippine Stock Exchange, Manulife is among the top life insurance
companies in the country today. A dedication to client service has paved the way
for the company's growth and increased financial strength throughout the years.
2000, Manulife received approval from the Philippine Securities and Exchange
high quality pension and education plans to the public. (retrieved from
products and services tailored to both individual and group customers in Asia.
Manulife’s focus is providing its clients with strong, reliable, trustworthy and
forward-thinking solutions for their most significant financial decisions. These four
pillars have guided our company and have helped establish Manulife as one of
PhilAm Life
campaign to gain deeper insights that enable them to offer a range of insurance
and wealth management products that fit the needs of the individual by genuinely
engaging with people’s real lives. Over the last 90 years, the company has built
its business upon serving the ever-changing needs of people and companies in
has developed products and implemented marketing programs that fit the needs
DISTRIBUTION SITUATION
towards the development of multiple distribution channels. They no longer rely solely on
traditional channels such as agents and physical presence of their offices, but have
developed new alternate channels to drive sales and customer convenience while
keeping costs low and maintaining profitability. These factors are leading to the
customers continue to integrate the use of the internet in their daily lives, this has
distribute insurance products as customers make use of the internet in their decision
making and product buying process. Insurance companies are also effectively using
technology to better meet customer demands by integrating technology with the whole
policy sales cycle to include payment schedule and updating of customer information
and policy composition. They are focusing on speeding up the complete insurance
efficiency and profitability. These initiatives are enabling insurance companies to scale
up their business models by strengthening their internal processes with a goal of better
customer service.
MICRO-ENVIRONMENTAL SITUATION
Demographic
population were academic degree holders with females (58.3 %) and males (41.7 %).
Only 1% of them have insurance policies or investments. Given with this figures, the
insurance company has a greater opportunity since there will be higher possibilities that
money earned will be put on savings because they are more open for changes and
Economic
In terms of the economic environment, there are 80,763 OFWs from Batangas
Province (2010 Census). More than 40 % of the remittances from them goes to
household spending like on education and health care which can affect the buying
behavior of customers and the company can leverage on its pricing strategy. The
remaning 60 % goes to everyday expenditures of their family like acquiring goods and
services.
Technological
(Existence of Facebook, Twitter, Google+ and other web like Tumblr serve as key points
in the value chain. This media flatform helps in the Product Development since
Insurance Company can scan social networks to interact with customers and funnel the
input to product development. More so, for Marketing and Communication to create
marketing material making use of viral marketing like adding viral videos which could
Political/ Legal
The PD 612 otherwise known as the Insurance Code of the Philippines and the
BSP Consumer Education Committee initiatives provides a more stringent rules and
regulations towards the protection of the consumers. This implies that the potential
consumers of the Insurance Company will be more confident in transacting with them.
On the end of the company, the stricter rules will enable them to review their operating
Socio-Cultural
Educating about the value of insurance or financial literacy would be easier and
sufficing information about the product could spark their curiosity about availing
insurance policies. According to survey, Filipinos are receptive to change and use of
social media. There are 36.2 million Filipino Facebook Users as of 2018. These
numbers are a positive indication that Filipinos are tech-savvy people which positively
welcome change and innovation thus an opportunity for the company to think of
SWOT ANALYSIS
The following SWOT analysis captures the key strengths and weaknesses within
the company and describes the opportunities and threats facing Pru Life UK.
STRENGTHS
Prudential PLC has penetrated Asia long before than its competitors
Pru Life UK's savings plan offers customization of the policy one may want to
invest in. It offers a lot of choices that one can tailor-fit acording on his wants and
increase/ decrease your premium, and the freedom to spend it into anything you
want)
WEAKNESSES
OPPORTUNITIES
The company can create a marketing campaign focusing on the importance and
The company can maximize the use of the internet and social media in promoting
the company’s Savings Plan product thru videos, teasers and slogans
customer account updates through the use of the internet via computers, mobiles,
THREATS
Joint ventures of large companies to strengthen their positioning in the market e.g.
Looking into the SWOT Analysis, it can be derived that Pru Life UK can maximize its
reliability and product flexibility. And with the interest of the Batanguenos to the internet,
the company can take full advantage of the online channel to increase awareness and
sales opportunities to attract the millennial generation customers. Only then can the
company capture more policy holders while protecting it from the strategic alliances and
market as they are selling an “invisible product” that is hard for the consumers to
measure the value of satisfaction and benefits that they can get out of purchasing a
policy package.
A number of insurance companies are in existence in the market but still, many
are reluctant to avail due to lack of proper knowledge and understanding about the
product and with the assumption that all insurance offerings are the same. Thus,
appreciation of the product’s advantage and uniqueness are not properly conveyed to
Pru Life UK however, despite the unique product offerings that it upholds failed to
convey this message to the market. Its conservative approach to marketing hinders it to
reach more of the potential market. This failure in promotion is the critical issue that the
group will address in our integrated marketing plan in order to reach our objectives.
a. Financial Objectives
b. Marketing
To capture at least 2% of the target market by the end of 2020 marketing plan
Pru Life UK China Jade Branch primarily markets and services Personal Life
Insurance in the province of Batangas. Its customers are mostly working young
professionals (25 yrs old and above) and middle class families who demand value-
priced insurance premiums in keeping with their fixed incomes. Pru Life UK will also
MARKETING STRATEGY
The primary objective is to position Pru Life UK as the market leader in quality
and value-priced insurance, commanding 2% of market share next year. The marketing
strategy will seek to first to create customer awareness regarding the services offered,
then develop the customer base, and work finally toward building customer loyalty and
referrals.
Pru Life UK will employ several methods to communicate. The first method will
be and advertising campaign. The campaign will utilize the different sources, both the
yellow pages as well as an industry journal. The second method of communication will
be within the regional event that attracts most the local agents and brokers. The last
and brokers. The mail campaign will provide all of the prospective customers with
ACTION PROGRAM
Pru Life UK marketing mix is comprised of the following approaches to pricing,
distribution, advertising and promotion.
Pricing: Ensure that the price and service are perceived to be good value to the
client. The pricing scheme will be competitive relative to other support service
providers such as Sun Life Financial Canada (Philippines), Inc., AXA Philippines
o Select seniors will have special attention to this market in advertising. Will make a
concerted effort to support and sponsor seniors programs in the area. Will seek
out Cottage associations and offer support and advice to attract new senior clients
and responsibility for trying to control the severity and number of claims. Staff
o All advertising has to emphasize the differentiation point rather than price
o The company must sell, not the product. In spite of some companies' efforts to
minimize the importance of the broker, clients still identify with the broker, not the
insurance company
attracting clients from out of the area who may be difficult to service and properly
inspect.
o Make contacts and support senior citizen groups and cottage associations.
Identify sports and hobby groups that involve seniors and cottagers .
FINANCIAL PERFORMANCE
In the end of 2019 the projected total premium income is 10% better than 2018.
While forecasted growth in 2020 is being projected by 20% from the current year of
2019.
20000
16446
19810
18116 19221
21143.1
20% 15%
10%
15000 10% 5%
6%
0%
10000
-5%
5000 -10%
-9% -9%
0 -15%
The decline in total net premium income in 2017 was mainly attributed to the shift
in sales mix to five-pay unit-linked product from single-pay linked product. Excluding
single premium income, the Company’s first year and renewal years’ premium income
Growth in total premium income in 2018 was a modest 6% versus prior year
2017. In passing, the heightened focus on protection products produced a 15% growth
127,736) to 2018 (P 105,975). Estimated advertising and marketing expenses for 2019
is P 100,673.
While to be able to meet the company goals, the projected advertising and
marketing expenses on 2020 will be P 121,784. Pru Life UK will provide priority on the
The Keys to Success and critical factors for the next year are, in order of
importance:
3. Provide small businesses with an affordable basic business package. Pru Life UK
has been profitable, but recently has had a declining market share and this must be
with their decision makers and plotting a mutual plan for success. Get commitments
Investigate new markets that meet the marketing criteria by committing to small rural
areas;
circumstances.
Policies that meet or exceed the expectations of our clients, and that are
A commitment to an annual insurance review for all of our clients. A phone call is
more than any direct mass marketer offers. Pru Life UK believes personal contact
Pru Life UK has stressed to the insured the importance of good communication
between the agent and client to insure proper coverage is in place. Pru Life has noticed
as the clients become better informed about insurance that there has been a
tremendous increase in clients wishing in-depth discussions about their policy coverage
and how they can get the most value for their insurance.
The company's strength lies in the quality and depth of our products and staff.
The offices, unlike the competition, are open six days a week. Because of larger staff,
they are able to service the clients even when an agent is busy or out of the office on
inspections.
REFERENCES
https://www.prulifeuk.com.ph/en/
www.sunlife.com.ph
www.axa.com/en/
www.philamlife.com.ph
www.insularlife.com.ph
www.manulife.com.ph
www.philamlife.com