2. DISCLAIMER
This 10 Step Marketing Plan is part of the mandatory requirements of
Prof. Remigio Joseph De Ungria’s AGSB Marketing Management class.
The data included in this report are based on publicly available data
such as those on internet websites, news, package declarations, public
reports.
When appropriate, data are “masked” so as not to create unexpected
conflicts.
The reports are posted and linked on Slideshare, blogs and Facebook
so that there is easier sharing among students from different
marketing classes.
3. MITIGATING RISKS
FOR THE COOPERATIVE SECTOR
CLIMBS’s PTM for the LPP:
1.Are the Cooperatives and their members;
2.Are interested in mitigate risks through insurance;
3.Can choose between Coop and Private Insurance
Providers;
4.Are underserved by big insurance players;
5.Is 4% of the Total Market for Traditional Insurance.
4. MORE THAN JUST PROTECTION
Loan Protection Plan:
6.It is a group renewable term insurance plan that aims to
reduce delinquency in payment of loans and to relieve
beneficiaries of the financial obligation in case of natural
death.
7.Its premium is priced based on loan amount to covered.
8.It uses direct marketing for promotion.
9.It is distributed nationwide.
10.Uses niche approach to gain market share.
5. CLIMBS’S PTM FOR THE LPP:
COOPERATIVES AND THEIR MEMBERS
WHAT IS COOPERATIVE?
an autonomous and duly registered association of persons
with a common bond of interest
have voluntarily joined together to achieve their social, economic
and cultural needs and aspirations
making equitable contributions to the capital required, patronizing
their products and services
accepting a fair share of risks and benefits of the undertaking in
accordance with the universally accepted cooperative principles.
Source: http://www.cda.gov.ph/frequently-asks-questions-faqs
6. CLIMBS’S PTM FOR THE LPP:
COOPERATIVES AND THEIR MEMBERS
WHAT ARE THE CATEGORIES OF COOPERATIVES?
Cooperative shall be categorized according to membership and
territorial consideration. In terms of membership, cooperatives
shall be categorized into:
Primary-the members of which are natural persons.
Secondary-the members of which are primaries.
Tertiary-the members of which are secondary cooperatives.
Source: http://www.cda.gov.ph/frequently-asks-questions-faqs
7. CLIMBS’S PTM FOR THE LPP:
COOPERATIVES AND THEIR MEMBERS
“Our cooperatives are classified into four – micro,
small, medium, and large. Micro is composed of
cooperatives with assets three million and below, then
small is classified with 15 million and below, medium is
100 million and below, and large is 100 million and
above.”
Source: http://www.cda.gov.ph/resources/updates/news/535-why-there-should-be-more-
cooperatives-in-the-philippines3
8. CLIMBS’S PTM FOR THE LPP:
COOPERATIVES AND THEIR MEMBERS
The profile of PTM:
-Active member-borrowers of a primary
cooperative
-Age: 18-64yrs old
-In good health
Source: http://www.cda.gov.ph/resources/updates/news/535-why-there-should-be-more-
cooperatives-in-the-philippines3
9. CLIMBS’S PTM FOR THE LPP:
COOPERATIVES AND THEIR MEMBERS
Needs: Insurance represents the safety needs which make
up the second-lowest rung on the Maslow needs
pyramid.
Wants: Cooperatives and their members buy insurance as
means to mitigate risks brought about by premature
death, age and disability.
Demands: Cooperatives and their members opt for an
insurance product that is accessible, affordable and has
comprehensive coverage.
10. CLIMBS: THE MARKET SHARE
Direct and Indirect Competition:
Direct: Cooperative and Private Insurance Providers
offering Traditional Insurance
Cooperative Insurance System of the Philippines (CISP)
Philam Life
Sun Life of Canada
Manulife
Cocolife
others
11. CLIMBS: THE MARKET SHARE
Direct and Indirect Competition:
Indirect:
Mutual Fund Companies
SSS/GSIS
Variable Insurances
Variables: Price, Features Benefits, Quality of Service
(AfterSales/Claims)
12. CLIMBS LPP: THE POSITIONING
CLIMBS LPP: Benefit Positioning
Benefit
Philam Life
Credit LIfe
Sunlife
Credit Grp
Ins
CISP
LPI
CLIMBS
LPP
Level Coverage
Diminishing Coverage
Accidental Death and Disability Coverage
waiving of Contestability period
13. CLIMBS LPP: THE POSITIONING
Service Positioning
Service
Philam Life
Credit LIfe
Sunlife
Credit Grp Ins
CISP
LPI
CLIMBS
LPP
Fast Claim Processing and Settlement
(less than 15 days)
Patronage refund for product availment
Less strict in claim evaluation
Aftersales account management
Membership/ownership rights
Free financial literacy program to clients
14. CLIMBS LPP: THE POSITIONING
Price
Net Rate per
thousand Loan
Amount Coverage
Philam Life ₱ 0.40 Diminishing
Sunlife of Canada ₱ 0.60 Diminishing
CISP ₱ 0.40 Diminishing
CLIMBS ₱ 0.70 Level
15. CLIMBS: THE MARKETING GAP
The Market Share (Cooperatives as Niche)
Out of 24,562 registered cooperatives, only 4% (980 coops)
are insured with LPP.
Of the total Premium generated by CLIMBS, 80% (Php
960Million) comes from LPP premium remittances.
Most number of insured members come from medium to
large sized cooperatives.
Due to regulatory restrictions imposed by Insurance
Commission and the Cooperative Development Authority,
CLIMBS is only allowed to sell insurance to cooperatives.
16. CLIMBS: THE MARKET SHARE
Premium Income of Life Insurance Companies
Year 2016
Based on Submitted Unaudited Quarterly Statistics
First Year Single Renewal Total Market Share
1Philippine American Life & Gen. Ins. Co.
519,759,985 903,693,324 5,664,394,511 7,087,847,820
14.1%
2Sun Life of Canada ( Philippines ), Inc.
361,674,244 1,042,252,849 5,284,754,975 6,688,682,068
13.3%
3BOO Life
1,444,501,844 (650,538) 4,074,490,290 5,518,341,596
11.0%
4Manufacturers Life Ins. Co. (Phils.)
1,028,707,282 205,802,889 4,147,990,176 5,382,500,347
10.7%
5United Coconut Planters Life Assce. Corp.
1,237,306,451 2,848,901,240 4,086,207,691
8.1%
6Insular Life Assce. Co., Ltd.,
370,825,238 178,019,788 3,344,804,313 3,893,649,339
7.8%
7Philippine AXA Life Insurance. Corp.
708,316,937 645,821 1,717,866,516 2,426,829,274
4.8%
8AsianLife & General Assce Corp.
307,260,682 - 1,772,619,853 2,079,880,535
4.1%
9Pioneer Life Inc.
672,259,966 287,470 864,261,296 1,536,808,732
3.1%
10BPI Philam Life Assurance Corp.
175,557,368 135,950,654 1,106,291,015 1,417,799,037
2.8%
11SunLife Grepa Financial, Inc.
231,878,081 1,574,155 1,148,965,873 1,382,418,109
2.8%
12CLIMBS Life & General Ins. Coop.
1,158,765,362 3,010,255 38,309,245 1,200,084,862
2.4%
13Fortune Life Insurance Company
400,900,529 - 737,390,267 1,138,290,796
2.3%
14PNB Life Insurance, Inc.
380,811,780 7,723,557 697,576,758 1,086,112,095
2.2%
15Beneficial Life Insurance Co.
430,982,167 - 545,689,625 976,671,792
1.9%
Others
1,730,825,733 (628,639) 2,564,802,022 4,294,999,116
8.6%
TOTAL 11,160,333,649 2,477,681,585 36,559,107,975 50,197,123,209 100.0%
MARKETSHARE
23. CLPP LPP: THE PRICE VS COMPETITORS
Price
Net Rate per thousand
Loan Amount Coverage
Philam Life ₱ 0.40 Diminishing
Sunlife of Canada ₱ 0.60 Diminishing
CISP ₱ 0.40 Diminishing
CLIMBS ₱ 0.70 Level
24. CLPP LPP: THE PROMOTION
Mass
Business Forums
Stakeholder’s Meeting
Sponsorships of Client Activities (in exchange of
“airtime”)
Personal
Direct Marketing
Personal Selling
26. CLPP LPP: THE PLACE
• The CLPP is available
nationwide through area
sales office and personnel.
• CLIMBS aims to bring the
LPP to the doorstep of the
cooperative through
personal selling done my
sales agents.
27. THE WINNING STRATEGY
• The main strategy is to be the leading insurance
provider for the cooperatives (niche market). Also, due
to regulatory restrictions by the IC and the CDA, CLIMBS
may not sell LPP to private entities.
• CLIMBS can offer other service benefits that private
insurance companies cannot.
• The culture of the Cooperative Sector favors direct
marketing. Cooperators respond well to personal selling
and account management done by Sales personnel.
28. MITIGATING RISKS
FOR THE COOPERATIVE SECTOR
CLIMBS’s PTM for the LPP:
1.Are the Cooperatives and their members;
2.Are interested in mitigate risks through insurance;
3.Can choose between Coop and Private Insurance
Providers;
4.Are underserved by big insurance players;
5.Is 4% of the Total Market for Traditional Insurance.
29. MORE THAN JUST PROTECTION
Loan Protection Plan:
6.It is a group renewable term insurance plan that aims to
reduce delinquency in payment of loans and to relieve
beneficiaries of the financial obligation in case of natural
death.
7.Its premium is priced based on loan amount to covered.
8.It uses direct marketing for promotion.
9.It is distributed nationwide.
10.Uses niche approach to gain market share.
