Introduction
Allstate must consider a loss control strategy because of the unforeseen impact that can affect their bottom line. Understanding the most common and costly claim payouts such as wind, burglary, fire, water, and physical damage can direct Allstate toward a more streamline approach in addressing some controllable claims, which will reduce payouts and increase profits (Allstate.com, 2011).
This assignment will further provide alternatives that can be used as a strategy so that Allstate can achieve additional growth that compliments their strategic vision of reinventing protection and retirement for consumers. In addition, provide clarity as to why differentiation is the best generic strategy, customer intimacy is the best value discipline, and market development is the best grand strategy. Keep in mind, the selected strategies are more in alignment with Allstate and best because it presents additional opportunities that Allstate can explore to drive growth and their ratings.
Generic Strategy
To begin, Allstate is a profit driven organization. Subsequently being categorized as an exclusive low cost leader under the generic strategy is not accurate. However, differentiation is a better strategy for Allstate. Reason being, differentiation is more so tailored to attract specific customers who desires an exclusive product or feel as if their product is superior. Allstate has a unique marketing strategy that make customers feel as if their services are so different and unique, which builds customer loyalty; plus, customers feel safe. This distinction is achievable with a strong workforce that represents the value of the company and communicates it effectively with their clients (QuickMBA.com). Even more important, this...
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.... In addition to the personal presentations that are conducted through Allstate’s social responsibility efforts, virtual demonstrations can be created to provide a more impactful experience. Stimulations activities can provide for a more advance learning experience. Allstate can partner with museums and specialized exhibits worldwide to create attractions that engages learning about car, fire, and home safety, etc. In fact, Allstate can start a safety mobile that travels to different schools, universities, day care centers, and universities. Even more innovative, is creating stimulations for college students who is studying quality control, science, engineering, etc. these students can become knowledge in their area of study on topics that affects the insurance industry. Simply, this concepts mimics the virtual organizations that University of Phoenix offers.
Blue Cross Blue Shield of Florida (BCBSFL) Operating Services is Florida’s largest insurer, serving more than 6 million residents in total. Three trends that redefine how Blue Cross Blue Shield of Florida brings value to its members are through consumer empowerment, E-business, and financial services modernization. BCBSFL holds approximately 30% of the HMO market share in Florida, which is twice the share of its nearest competitor. BCBSFL offers a BlueComplements program filled with discounts and services that allow members to stay healthy. Theses advantages include Healthy Alternatives, Vision One, TruVision, Hearx, GlobalFit, SafeTech, and Walgreens Mail Order Pharmacy.
Allstate insurance is the second largest property and casualty insurance company by premiums in the United States. Allstate insurance handles about 12% of the U.S home and auto insurance market. (Allstate, 2014). Many of Allstate’s customers fall under what one could refer to as a traditional selection of insurance for automobiles. Recently, Allstate has noticed a major shortcoming in lifestyle insurance, which includes coverage for motorcycles, boats, and other recreational vehicles, in comparison to its competitors. The motorcycle insurance sector is a 10.4 billion dollar industry and growing (PRWEB, 2012). The U.S. Department of Transportation website reports some astounding figures, including that 5,370,035 motorcycles were registered three years before the article, 7,138,476 motorcycles registered at the time of the article, and grew to 9,477,243 registered motorcycles at the end of 2012 (NHTSA, 2013). It is obvious as to why Allstate would identify motorcycle insurance as a worthy lifestyle product to devote marketing research dollars into in order to develop new strategies for cornering a share of the market.
Marketing at the Vanguard Group. In light of an evolving market, faced with new competitors, and after a careful analysis of their current customers, the Vanguard Group (hereinafter referred to as “Vanguard”) realizes it must rethink its entire marketing strategy. However, in order to protect and leverage their competitive advantage, which is their low management fees, and to optimize the loyalty that their customers continuously demonstrate toward their organization, they must now target the most profitable segment for them, and develop the best way to serve and delight these customers. SITUATION ANALYSIS Highlighted SWOT Strengths Low fees strategy - a good idea.
“Consumers today is on the go, multitasking and reaching them is much more difficult than it used to be. Habits are changing high tech gadgets are a must and music and TV is dialed up on demand dictated by the consumers. Consumers are choosing how they want to interact with the environment on their turns. A trend that has created many challenges for companies that are seeking new customers. No longer do American Express has just a captive audience watching three networks or going to the mailbox as their only incoming source of information and correspondents. Consumers are choosing how they want to interface and interact. Marketers need to be where consumers want them. Consumers have various cards to choose from and repeat offers in the mailbox all over ruined with options and as a result, finding a good time to talk with marketers require more creativity. Today, there is too many messages, and American Express trying to figure out if anything getting through” (Kotler & Keller, n.d.).
Soman,D & Marand, S (2009). Managing Customer Value: One Stage at a Time.: World Scientific Publishing. p9-14.
Rivalry among established firms is fierce. There are several factors that illustrate this: established market players (6.1). The product is highly standardized and the switching costs of the customers are low. Players are aggressive (6.2)
A marketer doesn’t just have a plan. Marketers now open up to a wider strategic plan and it’s based on steps that balance out what the market is offering consumers. These marketers must analyze their production with these steps, then make a portfolio of the growth and even their down falls therefore this keeps these marketers to continuously innovate and create even a greater amount of value for their customers. Marketing management functions are discussed along with the marketing mix and strategy.
Weinstein, A. (2012). Superior customer value: strategies for winning and retaining customers (3rd ed.). Boca Raton, FL: CRC Press.
First, we will analyze the targeted customer and the proposition designed by each company to attract them. In this part, there is a description of each market target and how each company has taken advantage of each unique position in the industry.
The insurance industry needed a vehicle to transfer billions of dollars of catastrophe risk to an entity capable enough to manage it. The only entity able to cope with these large risk...
Differentiation through distribution, including distribution via mail order or through internet shopping. For example u can buy Monster from Amazon.com.
This paper will analyze the mission and vision statements of JPMorgan Chase & Co against the performance of the organization. An evaluation of how well the company lives out its mission and vision statement will be provided. The organization’s strategic goals link to the company’s mission and vision will be assessed. An analysis of the company’s financial performance to determine the link between the company’s strategic goals, strategy, and its financial performance. A competitive and marketing analysis of JPMorgan Chase & Co will be conducted to determine its strengths and opportunities.
The purpose of this section of this report is to define the marketing concept; to explain what it means to be a market-orientated organisation; and to show that Tesco’s appear to be a successful, market-orientated company. Furthermore, that Tesco’s employ strategic relationship marketing to offer value to customers’; and achieve higher revenues and brand loyalty in return. Finally, to explain that being market oriented may also have some disadvantages if not carried out effectively.
Naumann, E. (1995). Creating Customer value: The Path to Sustainable Competitive Advantage. Cincinatti: Thomson Executive Press.
At one of our quarterly All Hands meetings, the president of our division discussed how growing the market share was critically important in the digital banking space. The key goal is to continue to lead this space in the future, but doing so becomes increasingly more challenging as new market competitors try to steal share. To keep ahead, we need to always bring our “A” game to the market. To create blue ocean strategies would require innovation, customer engagement, and out of the box thinking. We have to consider buyer utility, pricing, cost, and adoption. To do this would require us to be strategic about how we design, build and price our products. Even the way the business manages the different consumer segments is important. There is differentiation of the needs of different types of financial institutions. The customer centered brand management strategy we discussed in class is very useful to this type of organization. How we market to large national banks should be different than how we market to small town banks. Generally, small banks do not have the technology budget to invest in large scale digital channel solutions. Many companies decided to have different brands for their different customer segments. We discussed how this works successfully for car companies. For Digital Channels,