Use life insurance as a product market within Australia, this will form the basis of your assessment in the report. Then use MLC Life Insurance as a specific product/brand in this market to anchor your analysis.
MLC Life Insurance website: www.mlcinsurance.com.au
Please ensure this assessment meets at least Credit requirements as per Consumer BeAssessment Type: Report
Length: 2000 words
haviour Rubric attached.
This assignment is required students to explore the impact of consumer behaviour on marketing strategy through developing an in-depth report on a specific target segment’s consumption patterns in a specific product category.
The assessment will be structured within a marketing mix framework, exploring internal, external and decision-making influences and involve a detailed and in depth analysis of the primary target market.
This report also requires you to consider and evaluate the relevance and validity of the proposed positioning statement(s) and an evaluation of the marketing strategies employed.
To prepare for the Report, consider your chosen product/brand and its 3-4 key competitors in the product market. Review the company websites to gain insights into how the products are positioned in the market. Choose two dimensions which can be applied across the products/brands and rank them on the basis of each of the dimensions. Using this information, create a perceptual map that illustrates the product market in question. Consider the possible opportunities or potential problems for your chosen product/brand.
Please note, this report will require you conduct secondary research. Ensure that you draw on additional resources, such as industry reports from IBIS World, academic journals, and marketing practitioner resources to supplement your analysis.
Assessment 2 will entail conducting secondary research to compile a report which investigates and analyses the following (I also did some research and these are notes in red below):
1. Market: size of market, key trends and product life cycle
There are four key trends in the marketplace that shape the dynamic nature of consumer behaviour that need to cover in this section:
2. Technological changes (Changing communications, Big data)
3. Changing demographics
4. Changing economy
à Refer to the IBISWorld Industry Report – Life Insurance in Australia
à Refer to MLC – Category, Competitive, Audience presentation
à Refer to WARC – TAL Insurance: Launching a brand nobody had heard of
à Refer to NobleOak – Life Insurance in Australia
2. Competitors: direct and indirect competitors, size of competitors, positioning of key competitors.
a) Product positioning: how is the product positioned in the marketplace to appeal to the target market.
à Refer to the MLC Life Insurance PowerPoint for a list of key competitors for MLC Life Insurance
à Refer to MarketLine – Insurance in Australia January 2017 report for further details on MLC key competitors
3. Target Market Segmentation: identify three segments. You may allocate identities/ names to each segment. You can segment the market by using bases such as geographic, demographic, psychographic, behavioural or benefits sought. These can be used individually or in combination.
à Refer to the “Merkle Summit_Customer Strategy Breakout Session with MetLife” as an example to create three market segments.
For MLC Life Insurance, there are four key life insurance segments:
1. Consumer Credit Insurance (CCI):
Credit Consumer Insurance (CCI) products are credit-linked insurance products designed to cover outstanding debt obligations. This includes, but is not limited to, mortgages, personal loans or credit card debt. They are distributed via channels where debt is issued and where there is a relevant credit-linked insurance product. CCI products are sold without the provision of personal advice.
The MLC Life Insurance products include:
· NAB Mortgage Protect (NMP)
· NAB Personal Loan Cover (PLC) and
· NAB Credit Card Cover (NCCC)
Direct insurance products are life insurance products that can be purchased directly by a consumer without the provision of personal advice. These products are generally distributed via channels where convenience and direct access is important to consumers.
The MLC issued Direct Life Insurance Product is NAB Essential Life (EL) – which will be the product we’re using as the product and target market
Group insurance products are life insurance products where a single policy provides cover for multiple individuals. Group insurance products generally provide automatic cover, without underwriting, up to a pre-specified acceptance level. Group insurance policy owner is typically limited to a superannuation trustee or corporate employer.
The MLC Life Insurance products currently include:
· Group Life
· Group TPD, and
· Group Salary continuance
4. Retailed Advised
Retailed advised insurance products are life insurance products that are distributed to individual customers in conjunction with the provision of the personal or general advice.
The MLC Life Insurance products currently include:
· MLC Insurance (MLCi)
· Personal Protection Portfolio (PPP)
· Life Cover Super (LCS), and
· ProtectionFirst (PF)
a) Identify and justify the selection of ONE target market for the product in question and provide an in-depth profile of the consumer that typifies this target
à Refer to Customer Communications Review – NAB Essential Life presentation and NAB Digital Acquisition Campaign to create the target market for MLC Life Insurance
Based on the profiled consumer from the target market identified in question 3 you are to focus only on this segment to complete the following section
4. Decision-making process; involvement and perceived risk
a) Need recognition: actual state and desired state
b) Information search: prepurchase search, internal search, consideration set and external search
c) Evaluation of alternatives: criteria for evaluation of alternatives, types of value, evaluation processes, product categorization and criteria selection
d) Choice: decision rules and retail outlet selection.
à Refer to Deloitte Life insurance consumer purchase behaviour