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Snoopy6.10
Snoopy6.10
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Snoopy6.10
Snoopy6.10
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Snoopy6.10

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  • 1. METLIFE GET SMART June 10, 2010
  • 2. 3 BACKGROUND MetLife, Inc. (MetLife) is a provider of insurance, employee benefits and financial services, with operations throughout the United States and the regions of Latin America, Asia Pacific and Europe, Middle East and India (EMEI). The Company provides a variety of insurance and financial services products, including life, dental, disability and long- term care insurance, various annuity products, and auto and home insurance. Within the United States, it also provides a range of savings and mortgage banking products. The Company’s segments include Insurance Products (group life, individual life and non-medical health insurance products), Retirement Products (individual and institutional annuity products), Corporate Benefit Funding (pension closeouts, structured settlements and other benefit funding solutions), Auto and Home segment, International, as well as Banking, Corporate and Other.
  • 3. 4 THE SILVER AND THE ICON MetLife is the second largest life insurer in the US. Snoopy has served as the MetLife mascot since 1985.
  • 4. 5 SALES BREAKDOWN 2009 2008 2007 2006 Revenue ($ millions) 41,058 50,984 47,152 42,929 Change in Revenue -19.5% 8.1% 9.8% Operating Margin -10.6% 9.9% 12.3% 9.1% Profit Margin -5.5% 6.3% 9.2% 14.7%
  • 5. 6 SALES BREAKDOWN 57% 9% 14% 7% 11% 2% Insurance Products Retirement Products Corporate Benefit Funding Auto & Home International Banking Corporate & Other 2009 MetLife derives over half of its revenue from life insurance premiums.
  • 6. 7 THE METLIFE OBJECTIVE Changing the way consumers think about insurance
  • 7. 8 TV SPOT
  • 8. TRENDS
  • 9. 10 RIDING OUT THE STORM “Unfavorable market conditions, which continued through 2009, provided a challenging business environment for our Insurance Products segment. This resulted in lower net investment income and an increase in market sensitive expenses, primarily pension and postretirement benefit costs. Higher levels of unemployment continued to impact certain group businesses as a decrease in covered payrolls reduced growth. However, revenue growth remained solid in all of our businesses.” MetLife 2009 Annual Report
  • 10. 11 RISKS ARE A CHANGING CATASTROPHE: Needing insurance for risk of death, house burning down, hospital stay. VS. ANXIETY: Needing insurance for being laid off, taking care of older parents, living to 100. Consumers have moved from needing traditional safety nets to more modern, personal ones.
  • 11. 12 LESS CONFIDENCE IN EMPLOYERS According to a Watson Wyatt study, 62% of employers are very confident they will offer health insurance 10 years from now (2009). This figure is down sharply from 73% in 2008. According to a Fidelity Investments study, almost half of US employees believe that health insurance and pension plans will not be provided by their employers in ten years.
  • 12. 13 CONSUMER HEALTHCARE ANXIETY “These are the people you would expect to have positive experiences with America’s healthcare system... the lucky ones - except they’re not. They’re hurting... struggling to pay medical bills, skipping doctor visits and prescriptions because of costs... and they are extremely pessimistic about the future of our country. They think healthcare is one of today’s most important issues and they are ready to vote about it.” AFL-CIO President John Sweeney on a 2007 AFL-CIO survey of working class Americans regarding health insurance 76% of those uninsured didn’t seek medical attention because of cost. 71% of those with healthcare insurance through their employer are afraid of losing it.
  • 13. 14 HEALTHCARE: PERSONAL CONCERN The number of uninsured Americans has increased from 41 million in 2005 to about 46 million in 2009. Reasons: 1. Diminishing employer coverage. 2. Pricier private premiums 38.75 40 41.25 42.5 43.75 45 46.25 47.5 2005 2006 2007 2008 2009
  • 14. 15 CHAPTER 7 According to The American Journal of Medicine, medical bills were the cause for 62% of bankruptcies in 2007. This figure was 46% in 2001. “...78% of them [medically related bankruptcies] had health insurance, but many of them were bankrupted anyway because there were gaps in their coverage like co- payments and deductibles and uncovered services. Other people had private insurance but got so sick that they lost their job and lost their insurance.” Steffie Woolhandler, M.D. Harvard Medical School
  • 15. 16 FUTURE OF HEALTHCARE According to the Congressional Budget Office, the number of uninsured Americans is projected to increase from 45 million in 2009 to about 54 million in 2009. With landmark health legislation being passed since that study, these numbers remain to proved out.
  • 16. 17 REFORM AND BIG INSURANCE “What our firm sees as the best path forward for the private insurance industry’s bottom line is, to be blunt, inaction [no passage of healthcare reform]. The study’s authors advise that if no reform is passed, earnings per share would grow an estimated ten percent from 2010 through 2019, and the value of the stock would rise an estimated 59 percent during that time period.” Goldman Sachs analysis of how Obama’s healthcare reform would financially impact the health insurance industry
  • 17. 18 METLIFE OPPOSITION MetLife has been a staunch supporter of FreedomWorks, a PAC that has been a vocal opponent of Obama’s health care reforms.
  • 18. 19 FOR SOME CONSUMERS... Thinking about planning for your death is not pleasant. Even more so when you’re young. So many procrastinate on all levels of purchase consideration.
  • 19. 20 BUT THIS ISN’T EVERYONE Six out of ten middle class households recognize the need to increase their life insurance and half of these households intend to buy coverage in the next year. Additionally, many would like to do so online.
  • 20. 21 THE BIG PROBLEM Buying life insurance is challenging. “Buying life insurance is challenging for even the most motivated. Of those people who say they will buy life insurance, research shows that more than 80% will fail in their attempt. Beth Hirschhorn, MetLife CMO
  • 21. 22 CONSUMER QUESTIONS 1. What type of insurance is right for me? 2. How much coverage do I need? 3. How much will this cost? Answers to these basic questions tend to be varied and not very straight- forward.
  • 22. 24 BACKGROUND Prudential Financial, Inc. (Prudential Financial) is a financial services company. The Company has operations in the United States, Asia, Europe and Latin America. Through its subsidiaries, it offers products and services, including life insurance, annuities, retirement-related services, mutual funds, investment management, and real estate services. It offers these products and services to individual and institutional customers through third party distribution networks. It has two businesses: Financial Services Businesses and the Closed Block Business. The Financial Services Businesses comprises the United States Retirement Solutions and Investment Management division, United States Individual Life and Group Insurance division, and International Insurance and Investments division, as well as its Corporate and other operations. The Closed Block Business comprises the assets and related liabilities of the Closed Block and certain other assets and liabilities, including the IHC debt.
  • 23. 25 SALES BREAKDOWN 5 2009 2008 2007 2006 Revenue ($ millions) 32,688 29,219 34,377 32,268 Change in Revenue 11.9% -15% 6.5% Operating Margin 4.8% -3.9% 13.6% 13.6% Profit Margin 9.6% -3.9% 10.7% 10.6%
  • 24. 26 TV SPOT
  • 25. 27 TV SPOT
  • 26. 28 ADVERTISING CLUTTER
  • 27. 30 BACKGROUND New York Life Insurance has been in the Big Apple since it was just a tiny seed. Although the top mutual life insurer in the US has branched out somewhat, it has retained its core business: life insurance and annuities. Its products include long-term care insurance and special group policies sold through AARP and other affinity groups and professional associations. New York Life Investments offers products and services range from mutual funds for individuals to investment management services for institutional investors. The company, through New York Life International, is also reaching out geographically, targeting areas such as Mexico and India where the life insurance markets are not yet mature.
  • 28. 31 TV SPOT
  • 29. 33 BACKGROUND American International Group, Inc. (AIG), is a holding company, which through its subsidiaries, is engaged primarily in a range of insurance and insurance-related activities in the United States and abroad. AIG's four reportable segments include: General Insurance, Domestic Life Insurance & Retirement Services, Foreign Life Insurance & Retirement Services, and Financial Services. In March 2010, the Company closed the sale of a portion of its asset management business to Pacific Century Group. According to the 2008 Forbes Global 2000 list, AIG was once the 18th-largest public company in the world. It was listed on the Dow Jones Industrial Average from April 8, 2004 to September 22, 2008.
  • 30. 34 SALES BREAKDOWN 2009 2008 2007 2006 Revenue ($ millions) 96,004 6,896 103,632 113,387 Change in Revenue 1292.2% -93.3% -8.6% Operating Margin -14.2% -1544.8% 7.8% 19.1% Profit Margin -11.4% -1439.8% 6% 12.4%
  • 31. 35 TV SPOT
  • 32. 37 BACKGROUND Aflac Incorporated (Aflac) is a general business holding company and acts as a management company, overseeing the operations of its subsidiaries. Its principal business is supplemental health and life insurance, through its subsidiary, American Family Life Assurance Company of Columbus (Aflac), which operates in the United States (Aflac U.S.) and as a branch in Japan (Aflac Japan). Aflac’s business consists of two segments: Aflac Japan and Aflac U.S. Aflac Japan sells supplemental insurance products, including cancer plans, general medical indemnity plans, medical/sickness riders, care plans, living benefit life plans, ordinary life insurance plans and annuities. Aflac U.S. sells supplemental insurance products, including accident/disability plans, cancer plans, short-term disability plans, hospital intensive care plans, fixed-benefit dental plans, vision care plans, care plans, and life insurance products. During 2009, the Company acquired Continental American Insurance Group, Inc.
  • 33. 38 SALES BREAKDOWN XXX 2009 2008 2007 2006 Revenue ($ millions) 18,254 16,554 15,393 14,616 Change in Revenue 10.3% 7.5% 5.3% Operating Margin 12.2% 11.6% 16.2% 15.5% Profit Margin 8.2% 7.6% 10.6% 10.1%
  • 34. 39 TV SPOT
  • 35. 41 BACKGROUND Principal Financial Group, Inc. (PFG) is a provider of retirement savings, investment and insurance products and services. PFG’s United States and international operations concentrate primarily on asset accumulation and asset management. In addition, it offers a range of individual and group life insurance, group health insurance, individual and group disability insurance and group dental and vision insurance. PFG primarily focus on small and medium-sized businesses providing an array of retirement and employee benefit solutions to meet the needs of the business, the business owner and their employees. PGF has four segments: U.S. Asset Accumulation, Global Asset Management, International Asset Management and Accumulation, and Life and Health Insurance.
  • 36. 42 SALES BREAKDOWN XXX 2009 2008 2007 2006 Revenue ($ millions) 8,849.1 9,935.9 10,906.5 9,873.1 Change in Revenue -10.9% -8.9% 10.5% Operating Margin 8.4% 4.6% 9.8% 13.5% Profit Margin 7% 4.6% 7.9% 10.8%
  • 37. 43 TV SPOT
  • 38. 45 BACKGROUNDTeachers Insurance and Annuity Association - College Retirement Equities Fund (TIAA-CREF) is one of the largest financial services companies in the United States, with $398 billion in assets under management as of September 30, 2008. The organization helps meet the financial needs of approximately 3.6 million individuals and 15,000 institutions in the academic, research, medical, cultural and nonprofit fields. Much of TIAA-CREF operates on a nonprofit basis, with surplus returned to participants. TIAA-CREF is headquartered in New York City and has major offices in Denver, Colorado; Charlotte, North Carolina; and Dallas, Texas; as well as 60 local offices throughout the United States. The company ranks 86th on Fortune's list of the 500 largest corporations in America. The company owns the Walkers Stadium where Leicester City play their football matches
  • 39. The Process: It’s not easy getting life insurance
  • 40. 47 THE YOUNG AND INDIFFERENT Who we are For nearly 135 years, Prudential Financial has helped people grow and protect their wealth. We offer individual and institutional clients a wide array of financial products and services, including life insurance, annuities, retirement-related services, mutual funds, investment management and real estate services. Today, we are one of the largest financial services companies in the United States. We have $667 billion in assets under management and approximately $2.9 trillion of life insurance in force worldwide as of December 31, 2009. We have operations in the United States, Asia, Europe and Latin America. We also have one of the most recognized and trusted brand symbols: The Rock®, an icon of strength, stability, expertise and innovation. We measure our long-term success on our ability to deliver value for shareholders, meet customer needs, attract and develop the best talent in our industry, offer an inclusive work environment where employees can develop to their full potential, and give back to the communities where we live and work.
  • 41. 48 THE YOUNG AND INDIFFERENT “Life insurance, long considered a “must do” within a family’s investment choices, has evolved to a “should do” that people tend to put off. Younger consumers are significantly less interested in the concept of life insurance and are approaching overall financial planning unlike any generation that has preceded them. We seek to overcome these marketplace dynamics in ways that ultimately advantage MetLife.” MetLife Agency Review RFI
  • 42. 49 FOR SOME CONSUMERS... Thinking about planning for your death is not pleasant. Even more so when you’re young. So many procrastinate on all levels of purchase consideration.
  • 43. 50 BUT THIS ISN’T EVERYONE Six out of ten middle class households recognize the need to increase their life insurance and half of these households intend to buy coverage in the next year. Additionally, many would like to do so online.
  • 44. 51 CONSUMER CURIOSITY 1. What type of insurance is right for me? 2. How much coverage do I need? 3. How much will this cost?
  • 45. 52 THE BIG PROBLEM Buying life insurance is challenging. “Buying life insurance is challenging for even the most motivated. Of those people who say they will buy life insurance, research shows that more than 80% will fail in their attempt. Beth Hirschhorn, MetLife CMO
  • 46. 53 WHY THIS CHALLENGE? 1. Consumers assume coverage will be expensive 2. Lack of easy-to-find cost information 3. Many don’t want to engage an agent early in the process 4. Once they’re ready to buy insurance, the process is very complicated
  • 47. 54 THE METLIFE SOLUTION In May 2010, MetLife announced a new online tool that allows a user to get a no- obligation quote without entering personal information and without experience sales pressure. The site is set up to allow visitors to get quick responses. This is revolutionary compared to other sites since it doesn’t involve the user talking at any point to an agent for a quote.
  • 48. CONSUMER PERCEPTIONS
  • 49. 56 CATEGORY PERCEPTION Insurance is exciting alright.
  • 50. 57 COMPARE 1. insurance 1. insurance 1. insurance 1. ? 1. duck 1. money 2. rock 2. bankrupt 2. magazine 2. insurance 2. insurance 2. boring 3. solid 3. money 3. boring 3. teachers 3. quack 3. insurance 4. the rock 4. crooks 4. old 4. box 4. annoying 4. finance 5. money 5. bank 5. new york 5. boring 5. aflac 5. bank 6. old 6. manchester united 6. ? 6. money 6. ? 6. investments 7. real estate 7. fraud 7. life insurance 7. finance 7. goose 7. nothing 8. boring 8. evil 8. newspaper 8. no idea 8. ducks 8. ? 9. life insurance 9. bankruptcy 9. snoopy 9. unknown 9. funny 9. investment 10. bank 10. bailout 10. paper 10. retirement 10. nothing 10. who? According to Brand Tags, the word “boring” was used to fairly often to describe different life insurance brands. The word “old” popped up for a few brands as well.
  • 51. 58 CONTRAST 1. insurance 1. insurance 1. insurance 1. ? 1. duck 1. money 2. rock 2. bankrupt 2. magazine 2. insurance 2. insurance 2. boring 3. solid 3. money 3. boring 3. teachers 3. quack 3. insurance 4. the rock 4. crooks 4. old 4. box 4. annoying 4. finance 5. money 5. bank 5. new york 5. boring 5. aflac 5. bank 6. old 6. manchester united 6. ? 6. money 6. ? 6. investments 7. real estate 7. fraud 7. life insurance 7. finance 7. goose 7. nothing 8. boring 8. evil 8. newspaper 8. no idea 8. ducks 8. ? 9. life insurance 9. bankruptcy 9. snoopy 9. unknown 9. funny 9. investment 10. bank 10. bailout 10. paper 10. retirement 10. nothing 10. who? What differentiates insurance brands tend to words and phrases related to either marketing efforts or product offerings that tend to broad in nature. AFLAC and Prudential in particular have numerous tags that derive from ad campaigns.
  • 52. 59 BRAND TAGS 1. snoopy 2. insurance 3. health 4. boring 5. ? 6. life 7. it pays 8. old 9. life insurance 10. blimp MetLife’s advertising has resulted a lasting impression on consumers’ image of its brand. Yet despite consumers associating Snoopy, MetLife’s mascot, very strongly with the brand, other tags such as “boring” and “old” indicate that the company suffers from the baggage of its category. Like its competitors, the brand’s unique tags are derived from specific product offerings and its advertising.
  • 53. 60 SNOOPY IN THEIR OWN WORDS “Since 1985 Snoopy has served as an ambassador for MetLife, providing a warm, approachable quality that is important to the MetLife brand. Our logo and Snoopy work together to unify the many communications provided by various entities of our company. Please note that Snoopy by himself is not interchangeable with the MetLife logo. He should supplement our logo, not substitute for it. While he is at the forefront as our brand icon, the rest of the PEANUTS gang isn’t far behind and play supporting roles in many of our communications. Together Snoopy and the PEANUTS gang help differentiate us from other companies. Although it is not required that all MetLife-branded entities use Snoopy, his presence does send a clear and valuable message. He can be appropriate for a wide range of communications, and we urge that you carefully consider including him in your materials. Please note that Snoopy need not appear only in the Ambassador Snoopy pose or only in combination with the MetLife logo. He may also be used in other poses as an illustration to convey specific messages, and he may appear alone or with other PEANUTS characters in accordance with the guidelines presented here.”
  • 54. 61 METLIFE USER REVIEWS Pros 1. Great price 2. Easy to work with 3. Snoopy Cons 1. Bad customer service 2. Expensive 3. No live customer service rep Despite MetLife being seen as a good value, many users across a number of consumer sites consistently lambasted the brand as providing poor customer service.
  • 55. 62 Is MetLife aware of this?
  • 56. Three Issues
  • 57. 64 1. ECONOMY: In these challenging economic times, consumers may be more likely, whether through circumstance or personal decision, to shop for insurance without an employer intermediary. 2. PROCESS: When consumers do shop for insurance, particularly for the life variety (a key MetLife offering), the process can be so challenging that the intended purchase never occurs. MetLife is addressing this via their online solution 3. Despite employing innovation, MetLife carries the baggage of being seen as old and boring like others in its category. It also has the unique problem of being viewed as a poor customer service provider. Do they buy this? This poses the question: Are these brand perceptions barriers to their objective of changing how consumer perceptions of insurance?

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