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Marketing of Services

Bajaj Allianz General Insurance


Regd. Office & Head Office: GE Plaza, Airport Road, Yerwada, Pune 411006

Presented By : Anindya Banerjee (071106) Suman Dutta (071146) Abhinav Sharma (071102) Saptarshi Mitra (071141) Somnath Ghosh (071144

Marketing of Services

> bajajallianz.com

Insurance Operations - What actually happens


01

Analysis of claims Product redesign Renewals


09

10

Product Development Innovate Customize Value for money-Actuaries


02

Product Approval from IRDA


03

08 Claims Loss analysis Moments of Truth Settlement of claims The human touch 07

Insurance Operations
04

Marketing Strategy Identity customer segments

Operations Premium receipt 06 Policy issuance 05 Underwriting Reinsurance/ Accounting Understanding the risk D Base Management Coinsurance Risk exposure control Learning about new industries Investments Risk Management Pricing

Distribution Channels Banc assurance Agency Travel Broking Direct

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Marketing of Services

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Introduction
Its a joint venture between Bajaj Auto
ltd. and Allianz AG.

Bajaj Auto is the largest two and three


wheeler manufacturer.

Allianz is the worlds largest insurance


company with 700 subsidiaries across 70 countries.

Competitive Pricing and quick honest


response have earned the company the customers trust and market leadership in a very short time.
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Marketing of Services

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SWOT Analysis
Brand name Bajaj Allainz All India network Product across all lines Strong IT infrastructure Strong Mktg infrastructure
More and more private players Focus on increasing market share and aggressiveness Increases pressure on profitability

Income reliance on investment portfolios major part of income from small sets of sales force
Untapped potential for expansion De tariffing will allow differential pricing High competition will foster innovation in product pricing
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Weakness

Strengths

Opportunities

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Threats

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Marketing of Services

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Gap Analysis An audit

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Fore School Of Management

Marketing of Services

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Provider Gap 1- Net Score 24 out of 40


1. Market Research Orientation 2. Upward Communication 3. Relationship focus 5 6 7

4. Service Recovery
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Marketing of Services

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Provider Gap 1
The company scores high on relationship focus. Recently in the month of January 2008, Bajaj Allianz has launched a product named Health Ensure which is a product similar to their existing product Health Guard with a few capping. This is for the customer segment who doesnt want to spend too much money on premiums The company should spend more money in market research The top management gets the response and the general customer expectations through the intermediaries, so efficiency of the latter is crucial
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Marketing of Services

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Provider Gap 2- Net Score 18 out of 30


1. Systematic Service Design 2. Presence of Customer Defined Standards 7 8

3. Appropriate physical evidence and Servicescape

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Fore School Of Management

Marketing of Services

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Provider Gap 2
Lack of very impressive sales brochures and pamphlets has
lowered the scores

The focus should be developing illustrative and comprehensive


brochures reducing the complexity.

The employees should be trained with these brochures. The


physical evidence factor in service marketing is very crucial and the sales force should be able to communicate the top managements perceptions to the customers. They themselves should know the product offering well
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January 25, 2014 Fore School Of Management

Marketing of Services

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Provider Gap 3- Net Score 22 out of 40


1. Effective Human Resources Policies 2. Effective Role Fulfillment by the customers 3. Effective alignment with Service Intermediaries 5 3 6

4. Alignment of Supply and Demand


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Marketing of Services

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Provider Gap 3
The company score low on the role fulfillment aspect of the customers and effective human resources policies It is the responsible of the customers to go through the policy brochure in detail during acceptance of the policy, should clear ambiguities if any. In most cases however, it is found that the customer is not aware of the clauses of the policy which creates problems during settlement of the claim procedure Focus should not only be on the policies but also on the competence level of the intermediaries
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Marketing of Services

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Provider Gap 4- Net Score 24 out of 40


1. Integrated Service Marketing Communications 2. Effective Management of Customer Expectations 3. Accurate Promising in advertising and personal selling 5 6 7

4. Adequate Horizontal Communications


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Marketing of Services

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Provider Gap 4
Print ads, hoardings, billboards etc are the areas where there are scopes for extensive advertising for greater visibility and top of the mind recall The company doesnt have a TPA (Third Party Administrator) team for settlement of claims. But they do have a HAT (Health Administrative Team) do ensure that the claim settlement is done efficiently. This results in enhanced Customer Satisfaction At the same time the company should ensure that if any claim is rejected the customer should be made aware of the reasons of the same
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Marketing of Services

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Customer Gap - Score 6 out of 10


In any insurance company, the client expects maximum
support and help from the company at the time of distress. So whenever any claim comes the company needs to handle it promptly to ensure maximum satisfaction

For this purpose, Bajaj Allianz has got its own Health
Administrative Team (HAT). The perceived service quality gets enhanced and the gap gets reduced.

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Marketing of Services

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Environmental Scanning

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The value chain: Secondary The value chain: Primary Activities Activities

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Porters framework

Rivalry among Competitors Barriers Buyer/Customer Suppliers to entry Power Power Threat of Substitutes products Industry Concentration in Life FDI Limited Ceiling Widening Actuaries Product in the Range Market and Non-life Capital Government Reinsurance Large Requirements Corporate Pension Concentration Scheme Clients Low Penetration Insurance Elaborate Tax Cession Saving Sale Distribution of to Instruments Bancassurance the of National Requirements Insurer Regulation Restricts Lock Emerging Dependence -in Price of Buyers Substitutes Sensitive on IT Competition Buyers Providers Multiple Distribution Channels

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Marketing of Services

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ANSOFFS MATRIX: Recent Actions and Decisions

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RecommendationsMarketing Mix
PRODUCT
-- Only 5% of the health market tapped -- Young people should be targeted -- Customized products should be offered to the corporates. -- Low premium products in the rural market. -- Agricultural insurance, tractor insurance etc should be focused -- Wedding insurances and film insurances. -- Death of an individual due to terrorist attacks
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PRICE
--Company should try to achieve profits from the STAR products like Health and Travel Insurance. -- Motor insurance is now a CASH COW -- Bajaj Allianz should get the customer base from the motor insurance and try to sell them the newer profitable products. -- Discounts should not be offered in their STAR products.

Fore School Of Management

Marketing of Services

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RecommendationsMarketing Mix
PLACE
-- Company recently targeted young students and chemists to serve as intermediaries. -- Company can target boutiques to target the female segments for product selling and recruiting advisors. -- Collaborating with gymnasiums
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PROMOTION
-- Heavy advertising in electronic and print media -- Billboards in bus stands, highways etc --Rural market has to be captured by advertising on post offices, banks, etc.

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Marketing of Services

> bajajallianz.com

RecommendationsMarketing Mix
PROCESS
--There should be standardization across the same segments of customers. -- New product features should be represented well. -- SERVQUAL scores should be tallied and analyzed using the customer satisfaction surveys.
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PEOPLE
-- DSAs and salespersons be trained -- Sales force should be made to understand that customer retention is much more important than meeting sales targets

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Marketing of Services

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RecommendationsMarketing Mix
PHYSICAL EVIDENCE
-- The policy papers be drafted properly -- Flashy brochures should be made and circulated using the sales force during product selling.

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Marketing of Services

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Recommendationsto compete
Efficient and hassle claims settlement and disbursement
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should be provided. Reduction in operating expenses and management cost so as to be able to go for competitive pricing. Inculcating the culture of the company among the DSAs and the sales advisors Hiring of the sales advisors should be based on strict parameters Shifting focus from retail customers to large corporate houses Risk hedging mechanisms like re-insurance should be adopted on a larger scale.
January 25, 2014 Fore School Of Management

Marketing of Services

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Recommendationsto compete
Providing more than one kind of insurance in one single
policy. Appropriate reasons to the customers in case of any discrepancies in premiums or rejection of claims. Hiring good agencies so as to develop better promotional campaigns and increase the market visibility. Hiring good actuaries with widespread experience of the industry Collaboration with companies belonging to different industries Increasing awareness about health policy in rural areas
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Thank You Any Queries

Bajaj Allianz General Insurance Co. Ltd.


Bajaj Allianz General Insurance
Regd. Office & Head Office: GE Plaza, Airport Road, Yerwada, Pune 411006 www.bajajallianz.com

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