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Summary Communications and Competitive Strategy Plan for FBM Life Assurance Co., Nigeria

Summary Communications and Competitive Strategy Plan for FBM Life Assurance Co., Nigeria

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  • Communications & Competitive Strategy Plan for FBM Life Assurance LimitedNOTE: Real names of corporate bodies have been changed developed by dele ogundahunsi dele.deneri@gmail.com; (+2348164969170); Skype; deneri4
  • [the brief]FBM Life Assurance Limited requires agency to develop a holistic branding and integrated communicationscampaign to create brand awareness, deepen penetration and to build and increase share of the LifeAssurance market. [scope of the brief]>Interpret mission, vision and value statements to capture effectively the company’s unique valueproposition, identity and aspiration>Evaluate and advise brand positioning options for FBM Life>Develop Strategy and themes for multiple media and channels>Other responsibilities as outlined in the corporate communications brief: -Business Objective: Target a significant increase in market share by 2013 -Communications Objectives: Create brand awareness for top of the mind awareness & brand recall Build & Increase market share -Expectant Output: Print, Radio, Billboards, Direct Marketing, Online Ads & Social Media [our approach]> Adequately respond to the brief, but also go beyond the precincts of the brief to chart possible routes tocompetitiveness. 2
  • [background 1]About FBM Life Assurance Limited▪FBM Life Assurance Limited received its operating license from the National Insurance Commission(NAICOM) in September 2010. The company is jointly owned by FBM of Nigeria Plc (65% equity)and Samlan Developing Markets of South Africa (35% equity). While FBM Plc remains the oldestand one of the most viable banks in Nigeria with over 500 branches across the country (and outside itsborders), Samlan controls an asset base of over $45 billion and operates in five continents of the world.While the FBM group had earlier operated an insurance brokerage firm, FBM Insurance Brokers,the vast opportunities to pool long term investible funds through the emerging life insurance market,the existing infrastructural capabilities of the parent institution (FBM) and CBN’s recent directiveswhich reversed universal banking practices among others, made the establishment of FBM LifeAssurance a crucial decision for the FBM group.FBM Life Assurance’s product categories include Group Life Assurances, Group Mortgage Protection,Credit Life, Term Assurance, Mortgage Protection Assurance, Deposit Administration and IndividualPolicies. 3
  • [background 2]Market Overview▪The Life Insurance MarketLife insurance products promote long term investments because such products restrict access for aperiod. The savings pool from life insurance products can be invested in medium to long terminstruments (Including government bonds) which will support infrastructure development. Indeveloped economies that have viable insurance industries, life insurance business generally thrivesthe insurance industry by contributing not only significantly to the industry but also to the GrossDomestic Product (GDP). For instance, The South African insurance industry contributes about 16 percent of the countrys Gross Domestic Product.▪The Life Insurance Market in NigeriaLife Insurance business in Nigeria is still at a developing stage. In the year 2010, the Life arm ofthe Insurance sector in Nigeria contributed far less than $1 billion out of a total premium of $1.24billion. Comparatively, the Life arm of the South African insurance market generated about 70% of theindustry’s total income, in the year under review.The low penetration of life assurance in Nigeria is a function of certain dynamics. First is Consumerapathy and misunderstanding of the investment benefits of life assurance . If five average Nigeriansare asked about their disposition to life assurance, at least three are likely to say “Are you wishing medead?” To many Nigerians, life assurance is all about receiving death benefits, whereas Life Insuranceis an avenue to plan for the future through the provision of savings and investment plans. Second is thelow disposable income of the average Nigerian which according to official statistics is $100 or less.Coupled with the prevailing global economic meltdown, this has made acquisition of savings andinvestment plans such as life assurance policies a distant consideration in the decision process of theaverage Nigerian, where shelter, food and housing are more pressing needs. 4
  • [background 3]Market Overview [contd.]▪The Life Insurance Market in Nigeria [cont’d]Third is the general lack of product innovation in the Nigerian life insurance sector over theyears, as most operators sell the same traditional products. Product development , for a longtime, did not take cognizance of the changing lifestyle , aspirations and needs of the averageNigerian consumer, recent economic realities within and outside the country, etc. The educatedsegment of Nigerian consumers are beginning to get more aware of the need for investmentplanning, while a sizeable number also recognize the investment benefits of life insurance. LifeInsurance firms in Nigeria need to reinforce the value of life insurance policies as instruments of“immediate” or lifetime wealth creation and financial security, rather than post-death benefits.Charting a Competitive Strategy for the FBM Assurance BrandNo doubt the market is highly competitive, highly regulated and most life assurance productsare not well-differentiated in terms of brand values. It is imperative that FBM Assurance adopt aclearly-thought out competitive strategy, not only to claim a considerable share of the market inthe months and years which follow, but also to gradually emerge as a leader in this market andenjoy the benefits of differentiation that come with market leadership.Apart from developing and sustaining a highly differentiated positioning for FBM Life Assurancethis plan also intends to identify a roadmap to immediately begin to launch FBM AssuranceLimited, an emerging, but strong brand on to the path of market leadership. 5
  • A Stakeholder Map of The Insurance Industry in NigeriaRegulator Professional Associations Reinsurance/Loss Adjusting Channels Association of Registered Insurance Agent s of Nigeria (ARIAN) National Council of Registered Insurance Brokers (NCRIB) Insurance National Insurance Commission (NAICOM) Companies The Institute of Loss Adjusters of Nigeria (ILAN) (Life & Non-Life) Reinsurance Companies Nigeria Insures’ Association (NIA) 57 Loss Adjusters Customers Insurance Agents 15,000 Insurance 2 31 Brokers 350 Risk Sharing Sales & CustomerPolicy Skill Development & Management ServiceFormulation 6
  • [strategy] 7
  • [SWOT Analysis] SCENES>New and backed by a vision to reach the largeuninsured market in Nigeria.>Backed by strong owner-brands (FBM & Samlan)>Ability to tap into the extensive FBM infrastructuralnetwork across NigeriaW>New Kid On the Block: needs to be proven>Presently, products and product delivery are similar towhat exists in the market.O>The growing penetration of alternative channels such Tas mobile technology may be exploited >Market regulation does not leave much room for competitiveness through innovative products and>Product innovation may be to meet the changing product pricinglifestyles and needs of consumers. >General lack of enlightenment among Nigerians has>Vast market potentials in the life insurance market constrained the market opportunities available toremain untapped. operators.>Compulsory Insurance, based on statutory regulations,provides an influx of new business. 8
  • [Communications Objectives] Increase awareness & share of voice for FBM Life Assurance1 by at least +70% at the end of 1 year. Engender increase in recognition and recall levels for2 the FBM Life Assurance brand in the Nigerian market by +30% in the first 6 months.3 Increase customer enquiries leading to sales, by at least 50% at end of 1 year campaign period.4 Differentiate the brand through a credible positioning, within 12 months 9
  • [Target Market] SCENEa.) The “traditional” insuringpublic, especially middle age Commercial and non-Nigerians in the A,B, C1-3, b.) the commercial institutions with alargely uninsured, but sizeable D sizeable number of employeessocio-economic segment, desirous (for group policies)of savings and investmentinstruments & c.) the aspirationalsegment of youths between the20-29 age bracket The Media (especially Editors, Senior Key Industry Reporters & Stakeholders such as Correspondents on NAICOM, brokers, etc Insurance, Business & Financial beats & The General Public 10
  • [Positioning Structure] SCENEThe FBM Life Assurance Brand Onion [proposed] Vision: To be Nigeria’s 1st choice in Wealth creation & financial security... Values: Integrity, Innovation, Professionalism, Respect for the individual & Quality Service Personality: Reliable, Innovative & Ambitious Positioning: FBM Life Assurance provides opportunities for wealth creation, through excellent Life Insurance policies. 11
  • [Strategy Execution Cycles] Short Term (6-12/18 Months): This cycle will deploy communications aimed at espousing & reinforcing >Brand Positioning and driving >Market Penetration Medium to Long Term (2/3 Years):Strategic marketing functions during this cycle will be supported with communications which drive >Market Development and >Product Innovation 12
  • [action plan] 13
  • [Cycle 1]Brand Positioning &Market Penetration 14
  • [Market Penetration & Brand Positioning 1]Goals:>Create a groundswell of awareness for the FBM Life Assurance corporate and product brands.> Differentiate FBM Life Assurance Limited by strongly communicating its positioning, throughcredible facts and figures.>Support and sustain market penetration efforts geared towards sales of present life insuranceproducts through sustained consumer awareness.Approach: FBM Life Assurance will communicate its corporate and product brands within thecontext of wealth creation, investment planning for the future and financial security, rather thanas products which avail after-death benefitsRationale: Over the years, most life insurance operators have not emphasized the investmentvalues of Life Insurance policies, over the years. Marketing communications has mainly toutedlife policies as financial security in the event of death. In a deeply religious socio-culturalenvironment such as obtains in Nigeria, that approach may be counter-productive.Again, most life insurance firms are not well-differentiated in terms of positioning. This assumptionwas borne out of a respondent’s reply, during our pre-plan consumer survey –According to him, ”whatelse does a life insurance company sell, if not life insurance policies?”.FBM Life Assurance Limited will be differentiated as the reliable provider of wealth creationopportunities through excellent Life Insurance Policies. 15
  • [Market Penetration & Brand Positioning 2]Execution:>Advertising-Optional Themes: a.) Creating Wealth through Investment, b.) Financial Security for Life , c.) ADifferent Approach Attitude to Life.-Scope: 6-18 Months at the initial; National; Product & Corporate Brands-Channels:▪Radioa.) Radio Advertising spots across selected stations and b.) a 15 minute episodic sponsored radioprogramme geared towards educating the insuring public on how to invest for the future. Theprogramme will particularly use case studies to drive home the comparative advantages of lifeinsurance policies as investment instruments, over others such as stock-trading, etc. Listenerswill also learn about the various life policies in the market, benefits which accrue from FBM LifeAssurance’s policies, etc. FBM Life Assurance’s radio commercial spots will also be embeddedwithin this programme, while listeners are encouraged during each episode to visit a website orcall a phone number for more information. 16
  • [Market Penetration & Brand Positioning 3]Execution (cont’d):>Advertising (cont’d)-Channels (cont’d):▪PrintPressa.) Newspaper Adverts with innovative sizes will be published in at least 2 widely-read , nationalpublications b.) Regular 1-column Advertorial Columns will be published in a selectedpublication to educate the public about financial planning, life insurance and its benefits, etc.BrochureCreatively conceptualized brochures will be produced as part of the sales kit for FBM LifeAssurance marketers. This will also be useful for distribution at Mass Events. While displayingthe array of products in the company’s portfolio, the brochure will also spell out benefits, termsand conditions, etc of each product. 17
  • [Market Penetration & Brand Positioning 4]Execution (cont’d):>Advertising (cont’d)-Channels (cont’d):▪OnlineGoogle Banner/Image AdsOnline Advertising using Google Banner advertisements is very effective in reaching specifictarget markets on the web. This is a field of Search Engine Marketing (SEM). Such ads may be targetedto appear:-on Google search and other search sites (e.g web surfers who browse the Google search engine in Nigeria)-on Websites that people visit (e.g some of the popular forums and blogs often visited by most Nigerians who belong to the target market bracket of FBM Life –nairaland.com, nigerianbestforum.com, lindaikeji.blogspot.com, etc-on Mobile phones with full browsers, tablets, and devices-to People in specific locations or who speak a specific language-to Specific audiences (the Google Display Network includes thousands of portals around the world which have partnered Google and on which Googles Ads can be deployed. For instance, FBM Life may target its Google Ads to some or all Nigerians on LinkednIn.com, etc) 18
  • [Market Penetration & Brand Positioning 5]Execution (cont’d):>Advertising (cont’d)-Channels (cont’d):▪Online (cont’d)Google Banner/Image Ads (cont’d)Apart from precision targeting through keywords,websites, geographical areas, etc, Google Advertising’sCost Per Click (CPC) method will ensure that eventually,FBM Life only pays for each click made by a web visitor on the banner ad. This is cost-effective.Recommendation: Highly targeted skycraper Banner adsfeaturing FBM Life and based on agreed communicationtheme (much emphasis on Wealth Creation, rather than‘hardsell’ life Insurance) will be deployed on the Googleplatform for 1 year. Images may be changed fromtime to time. A click on a banner takes a web visitor to theFBM Life site, or a specific site set upfor marketing purposes. 19
  • [Market Penetration & Brand Positioning 6]Execution (cont’d):>Advertising (cont’d)-Channels (cont’d):▪Social MediaFacebook AdvertisingWith more than 750 million users worldwide, Facebook is a great channel for branding and directreturn on advertising spend. Facebook advertising will allow FBM Life to target profiles based on certaindemographics (e.g young upwardly mobile professionals, CEOs, self-employed Nigerians, etc) andInterests . Facebook advertising is based on a CPM(cost per mille/cost per thousand impressions)and CPC (cost per click) pricing model. Targeted, relevantclicks can be directed to the FBM Life Assurance websiteor Facebook Fan page. Facebook Ad: an exampleRecommendation: A facebook advertising campaign will be rolled out for at least 3 months, to drive traffic tothe FBM Life fan page. This advert will encourage targeted facebook audience to click the FBM Life facebookbanner ad to get a free, downloadable ebook on wealth creation/personal financial planning (already collatedfor FBM Life’s social media campaign) or an ebook such as Napoleon Hill’s Think and Grow Rich. Clicking on thebanner thereafter take a facebook user to FBM Life’s fan page, where s/he clicks “like” and gets access todownload the freebie, which has already been uploaded on box.net. 20
  • [Market Penetration & Brand Positioning 7]Execution (cont’d):>Advertising (cont’d)-Channels (cont’d):▪Social Media (cont’d)Facebook FanpageHaving a facebook fan page with dynamic and frequently-updated content will not onlyhelp FBM Life to engage with its customers, but will also enable it to generate leads andreach out to prospects by leveraging its positioning.Recommendation: The FBM Life fanpage will be constantly updated with write-ups and tipson wealth creation and financial planning; contests and opportunities to win giveaways,news of corporate events, product information and milestones. Every facebook user whohas “liked” the page will have access to such content on their own facebook and can make(moderated) comments, thus setting the stage for interaction and a word of mousecampaign. Agency will set up an interactive custom facebook fanpage for FBM Life andmanage same, on contract. 21
  • [Market Penetration & Brand Positioning 8]Execution (cont’d):>Direct Marketing--Scope: 1 Year at the initial-AGMs & ConferencesMost of the professional bodies usually have Annual General Meetings (AGMs) and periodicConferences which are well-attended by members, especially directors and top managementexecutives of firms within the industry. Such events provide opportunities for relating withcaptive audiences relevant to FBM Life’s target Market. At least 20 of such bodies will beidentified and approached for FBM Life to have access to participants, for the purpose of a 30minute audio-visual presentation to participants on FBM Life, its unique positioning, policies(especially group policies), etc. Such bodies may include the Institute of Directors, NigerianInstitute of Quantity Surveyors, Association of Advertising Agencies in Nigeria, etc. Brochureswill be distributed to participants.-Database Acquisition & Direct MailParticipants of AGMs and events where FBM Life has made presentations will be datacapturedand follow-up messages sent to them in the form of creatively-produced direct mail shots,including interactive flash-enabled CDs. Apart from these, Agency will build a database of atleast 500 most-likely prospects (such as members of Decision Making Units of organizations),across various professions and industries, to whom Direct Mail Shots will be sent. 22
  • [Market Penetration & Brand Positioning 9]Execution (cont’d):>Public Relations--Scope: 6 Months at the initial; National; 30% Product Brands & 70% Corporate Brand-Continuous Media Presence (CMP)It is important to consolidate on media mileage generated immediately after the licensing of FBM LifeAssurance by NAICOM and the launch of the company. This will continue to situate the company andits products in a strategic position in the eyes of the public and stakeholders, building the imagenecessary for eventual market leadership position. CMP will include news and photo stories aboutevents within the company (e.g. new products, 200 days in operation, 300th customer milestone,Quarterly figures of Claims Settlement) and snippets of industry-relevant comments ascribed to topmanagement of the company, etc. CMP may be deployed for an initial period of 6 months with adeliverable of a minimum of 10 news mentions/photo stories in the Press per month and an additional2 electronic news mention per month.-Feature StoriesAt least 3 Feature Stories on FBM Life Assurance will be published on relevant pages of selectedNational and business publications, per month for 6 months. Each feature story will be developedfrom a different angle and occupy not less than half of a newspaper page at each Instance.Publications to be considered include The Punch, Saturday Punch, The Guardian, THISday, NEXT,Tribune, Vanguard, The Nation, Daily Trust, Compass, The Sun, Leadership, BusinessDay, TELL, CityPeople, Business Hallmark and special industry-specific publications. 23
  • [Market Penetration & Brand Positioning 6]Execution (cont’d):>Public Relations (cont’d)-Special InterviewsAt least one full length interview of a key executive of FBM Life Assurance will be arranged andpublished in a notable press publication per month, for 6 months. 24
  • Brand Positioning:Execution Through Advertising Creatives 25
  • [Advertising Creative Rationale ]Insert Here 26
  • [Radio Commercials ]Insert Here 27
  • [Press]Insert Here 28
  • Media PlanInsert Here
  • [Cycle 2]Market Development & Product Innovation 30
  • [Product & Market Expansion Options for FBM Assurance] SCENEANSOFF Matrix/Product-Market Expansion Grid: The Options Existing Products New ProductsOption 1>Existing Market-Existing Products: Marketexisting/traditional Products to traditional (middle Existing Marketsage) market in the A, B & C SES Market Product Penetration DevelopmentOption 2>New Market-Existing Product: Market existingproducts to the D SES (micro-insurance) withmoderate changes in product & pricing structuresOption 3 New Markets>Existing Market-New Product: Create new, Marketinnovative products/enhanced products targeted at Development DiversificationA,B,C SESOption 4>New Market-New Product:Introduce new products to the aspirational segment ofyoung graduates & first-time-career, unmarriedworkers. 31
  • [Market Development & Product Innovation 1]Goals:>Expand the breadth of market opportunities beyond present/traditional target market.>Identify key success areas of Product Innovation.Approach: Redefine the competitive landscape by creating new market segments and tailoringinnovative products (including innovative pricing structures) aimed at such new marketsegments.Rationale: The hallmark of market leadership is the development of the overall market. Whenan emerging brand develops the market beyond its traditional borders, it begins not only to gainrecognition as a market leader, but stands to reap the benefits of brand leadership, ahead ofother brands, though such other brands (follower brands) may also eventually tap into thesebenefits of market expansion. This is particularly evident in the Fast Moving Consumer Goods(FMCG) sector, where for instance a brand such as Close-Up Toothpaste embarks on a marketexpansion campaign with a key component targeted at Consumers to brush twice rather thanonce daily (Brush Day + Night), in order to increase toothpaste usage and increase sales. Thiscompetitive direction was also employed years back, by IGI Insurance, jumpstarting the IGIbrand into market leadership position in the Nigerian insurance industry, within a short time. 32
  • [Market Development & Product Innovation 2]Execution:>Micro-Insurance & the D Socio-Economic Segment (SES)-Traditionally, Life Insurance products in Nigeria have been targeted at the cream of consumers (theA,B & C socio-economic classes), leaving the D segment of the population, which though may notpossess a large layout of disposable income, yet have critical needs for investment planning and futurefinancial security.By partnering with and relying on the infrastructural network of FBM Plc, FBM Assurance Plc caneffectively market tailored insurance policies to this segment, at low-cap premiums, but whichturnover at the end of the day, will ensure impressive profit margins. Communications to this atypicalmarket will be done in style, language and imagery immediately understandable by that segment andthrough channels easily accessible to them, such as Radio and Television (latching on to already-existing popular programmes which they hear/watch). Comprehensive Product Developmentprocesses and Marketing Communications will be developed for this initiative, on endorsement.>Catching them Young: Young GraduatesTraditionally, Life Insurance marketers have always targeted middle age Nigerians, usually marriedworking class consumers with families. However, with the present economic realities, some discerningyouths such as newly-graduating tertiary school students have come to see the imminent need forthem to consider investment planning right after leaving school, rather than wait till they getemployed. This segment is an aspirational market with great potentials throughout the customer lifecycle. 33
  • [Market Development & Product Innovation 3]Execution (cont’d):>Catching them Young: Young Graduates (cont’d)As part of a long-term customer acquisition programme, It is recommended that FBM Life Assurancedevelop a product targeted at serving youth corp members and begin the recruitment of such younggraduates by partnering with the National Youth Service Corp (NYSC), in selected states, or nationally.As part of this partnership, seminars will be held at NYSC orientation camps with serving corpers inattendance, to educate them on Wealth Creation, Investment Planning, Life Insurance as a tool ofFinancial Security (rather than a means to death benefits), The FBM Life Assurance offerings, etc. CorpMembers are encouraged to purchase the special FBM Life Assurance policy targeted at them as a babystep towards ensuring their future financial security. All attendees of the seminar (including buyers ofthe FBM Life policy) are datacaptured. FBM Life Assurance sends follow-up messages to these newly-recruited customers at each stage of their endeavours, reminding them about the need to startinvestment planning early enough, the renewal of their FBM Life Policy and general tips on WealthCreation. Apart from placing the FBM Life Assurance brand at the top of the minds of these segment ofthe market throughout their lifetime, it is expected that a considerable number of policyholders willbe signed on. Again, the special life Insurance policy developed for this segment may include riskcomponents for travel, disability during national service assignments, etc. The National Youth Service(NYSC) may be lobbied to make it a compulsory part of the service documentation for every corpmember. Marketing Communications support will include informative brochures, events management(seminars), tactical advertising at product launch, media relations, etc. 34
  • [Market Development & Product Innovation 4]Execution (cont’d):>m-insurance (mobile insurance)Nigeria has an estimated population of 146 million. According to more recent research studies, themobile phone subscriber base in Nigeria reached almost 73 million at the end of 2009, representing apenetration level of 50% of the population. According to the Nigerian Communications Commission(NCC), capital investments in mobile networks and operations have constituted a total of more than$16 billion as of March 2010, since 2001 when the Nigerian government successfully liberalized theindustry.While majority of consumers (especially those at the bottom of the pyramid) may not have readyaccess to banking services and while others may find the cost of banking services expensive, almost alllevels of consumers have access to mobile phones.It is recommended that FBM Life Assurance integrate its operations into mobile telephony, to makeservices easily accessible to customers. With this, customers can buy affordable life insurance with theconvenience of being able to manage that insurance via their handsets, submit claims, queries andmake their premium payments, using their handsets.FBM Life Assurance may partner with selected mobile telecoms operators in the country, individually(multichannel approach) or develop an interface with all mobile telcos through a single platform suchas Mtech (single channel approach). Communications support here will include Media Relations(including a press conference to launch the service) and tactical Advertising to create awareness. 35
  • [Key Performance Indices -kpis]>CYCLE 1: Short Term Term (Market Penetration & Brand Positioning Stages)-Efficient Conceptualization, Design & Production of all Advertising Materials-Effective Media Planning & Media Buying (Online & Offline)-Minimum 10 news & 2 photo stories per month x 6 months (Continuous Media Presence)-Minimum 2 Electronic News Mentions per month x 6 months (Continuous Media Presence)-Minimum 3 Feature Stories per month x 6 months (Feature Stories)-1 Special Interview per month x 6 Months>CYCLE 2: Long Term (Market Development & Product Innovation Stages)-Provision of advisory services at all stages of Market Development & Product Innovation stages-Efficient Planning & Implementation of all marketing communication support activities 36