Market Segmentation Strategy

Company missions and objectives

The company, Red Kites Money, plans to establish and market an insurance and protection specialism within our existing list of clienteles. The objective is to increase revenue by creating a strategic marketing plan to promote a range of pre-retirement products that fit our clients’ needs in the most efficient and effective manner. With the right strategies in place, seeking marketing dissertation help can provide valuable insights into this process. This report aims to breakdown how best to set up and market the new insurance and protection advice arm of the business.

Market segmentation

The marketing plan aims at promoting our pre-retirement insurance products. The target segments are based on demographic segmentation; to our existing clients of Red Kites Money who are within the ages 35-60, married, have children, paying a mortgage and working full-time. The reason why it is decided to target these segments specifically is because the products, that are offered, fit in with the needs of clients within these segments. Therefore, it is the most cost-efficient segments to market as it will require less convincing to portray to the clients the importance and value that the products can provide them.

The number of clients which fall into these segments out of the 5000 clients that Red Kites Money has is 500. This is the number of clients that the company targets via the marketing plan. Out of the 500 existing clients, 10% of them are expected to be converted into sales as a direct result of the marketing plan. The reason for this assumption is because these are existing clients of Red Kites Money, therefore making it easy for the company to promote as there is an existing relationship. I have been told by the company director that each successful product sold is worth £1500 in revenue to our company. These numbers portray that we are looking at bringing in a potential minimum of £75,000 in revenue based on the 10% of the 500 clients we market to only taking one product each.

Marketing objectives

The marketing objectives of the organisation Red Kites Money are,

To grab the market share through introducing insurance product for the middle and old age people

To retain 10% of the 500 customers of the organisation Red Kites Money through pre-retirement plan

To achieve product sale with £1500 revenue for each client

To maximise organisational profitability by promoting the insurance product in the market

Marketing strategy

Segmentation and targeting

Market segmentation and targeting is mandatory for the organisation Red Kites Money to each the insurance product to the customers where there would be high chance for investing in the product (Asseraf, Luis and Shoham, 2017). The customer’s segmentation is hereby important for the organisation to identify the customer base and peach the new insurance product of the company for generating revenue. Hereby, the customer segmentation can be done on the basis of the age, gender, economic status and preferences of the clients where the audiences are targeted for the insurance product. The organisation targets the age group between 35 years to 60 years, where the product can attract these age groups in future due to its return policy and interest rate. On the other hand, it is one type of retirement planning and thus the targeted age group is beneficial for the organisation for retaining them successfully. The company Red Kites Money also targets the male members in the company as compared to female members as the male members are investing at a huge amount due to their married life and children so that they would get high return on their investment. The organisation also targets the medium and high economic class so that the people can be attracted with the new insurance product successfully. These customers prefer to invest in the retirement planning due to its high return as well as monthly income scheme for fulfilling the basic needs of the individual. On the other hand, the organisation also targets the members who are working in the service sector or manufacturing sector as well as who are doing business. This target group is also effective for the firm to retain them for long run and convince them to invest a lump sum amount for the benefits of them in future as the retirement planning scheme is good for future where the people can get a good interest rate for fulfilling their daily activities. This consumer base is also effective for the organisation Red Kites Money to target them and make it successful through proper investment in the new insurance planning.

Positioning

After successful customer segmentation and targeting, it is necessary to have proper positioning strategy for establishing the brand in the market and proposing the suitable and best insurance products for the customers. In the recent era of globalisation, there is increasing numbers of death rate due to ill health condition and other critical diseases and thus the insurance policy is mandatory for the people to have secure base of income in future (Cassidy, 2016). moreover, the people, who are working in the organisations or having business in the country are concerned about secure income base for the future and invest in effective insurance product for better return on investment in future during the retirement. It is hereby beneficial for the company to retain the customers for the insurance product and in this regard, the organisation mainly targets the old customers of Red Kites Money, where the organisation targets the 10% of 5000 customers, which accounts 500 customers. The company in this regard must focus on email marketing, where the organisation needs to send email personally in each customer as per their requirements and targeted customers base. This further enhances the positioning strategy of the product. Additionally, the organisational branding is another way to developing proper positioning strategy, where the organisation must focus on advertising the insurance policy through organisational websites and offline advertisement through print media and television marketing by arranging capital. These are major positioning strategies, through which the organisation can increase brand visibility and promote the insurance product in the market for successful retention of the customers.

Marketing mix

The marketing mix strategic planning is good for the organisation Red Kites Money, to restructure the organisational operations and promote the insurance product to the client. It is a new product ion which Red Kites Money focuses for better management of the clients and supports them with good insurance planning and proper services to each client. The marketing mix strategic planning includes the factors such as product price, place and promotion, which are effective to develop suitable marketing planning for the organisation Red Kites Money so that it would be possible for the organisation to strengthen their customer’s base (Tomczyk, Doligalski and Zaborek, 2016).

Product

The product is mainly the insurance scheme, which is fruitful for the organisation to retain the clients in long run (Leon et al., 2017). The organisation Red Kites Money focuses on targeting the clients aged between 35 years to 60 years and it is effective for the organisational insurance product which is retirement scheme. The insurance scheme is good for the clients of getting higher return on investment, where the pension scheme is the scheme where a lump sum amount can be invested and the client can get high return at the maturity stage as well as the client also can get monthly income on that scheme. Hence, the product is effective to retain the clients for better return in future and get a secured income base for securing future life. There is secure base of income with ethical law and insurance regulations which secures the clients to invest in the insurance plan.

Price

The price for the insurance product is also medium, where the organisation set premium pricing policy to retain the clients for better management and retention of the customers (Hanlon, 2019). The price of the new insurance product is affordable which further attract the audiences in the market which further retain the clients in future. On the other hand, there is tax exemption for such insurance is also another pricing strategy of the clients so that they can get extra interest income. On the other hand, the pricing offers on booking the insurance plan instantly also attract the clients for investing in the insurance policy.

Promotion

The promotional activities are also effective for the organisation to launch the new product with sharing all the benefits for the clients (Sadeghpour et al., 2017). The organisation Red Kites Money can retain the customers in the market and primarily it targets the 10% customers of the company where the total customers are 5000. Target of 500 customers is good where the organisation send personal email about the new product launch to attract tem for the best offers in securing future income base. In addition to this, the organisation also needs to develop banner at the company as well as invest in print media and televisions advertisement for sharing their new product and launch it to attract the clients aged between 35 years and 60 years for secure pension plan. The organisation is also efficient to invest in arranging social campaigning and social media advertisement to share their new product and attract the social communities for better return on investment to secure future income earn. Arranging social campaigning through creating program in the crowded areas of the market place as well as online campaigning through social media are effective where the firm can utilise FaceBook and Instagram for the campaigning and share the relevant data and information about the product to attract the individuals for their benefits in future. Though the above mentioned promotional strategic planning the organisation would be able to retain the old clients of the business as well as attract the new clients in the market where the product promotional activities are effective as it provides a scope to the brand to share all the necessary information about the insurance policy for make the customer’s investment fruitful for their future secure income.

Place

Placement of the product is mandatory and it is considered as a good marketing planning for better establishment of the brand and in this regard, the insurance company Red Kites Money also focuses proper placement of the insurance product through strengthening the supply chain and distribution network where it is possible to provide good insurance product and services to each client. The efficient team members as well as sales team are taking care of the customers as well as acknowledge their actual needs and preferences for future income base (Hollensen, 2019). This further helps the sales managers to support the customers and help them to develop financial planning to invest in the new products for secure pension fund which further helps the client to get monthly income and also can get a lump sum amount at the maturity of the insurance scheme as per the terms and condition and interest rate. The sales managers can attend the customers at their place and discuss over the insurance plan and help them to invest in the plan efficiently. Hence, the placement as well as the internal operation system through developing cloud computing and online database management system for handling client data safety, customer’s feedback management through online customer’s portal as well as the 24*7 services and support to the customers are effective for the organisation Red Kites Money to place the insurance product strategically and retain the customers successfully in long run.

Marketing expenditure

Implementation

It is essential for the organisation to invest in the marketing planning for better management of the product in the market (Floreddu and Cabiddu, 2016). The insurance product development needs proper pricing, which may attract the clients for future investment where the clients can afford the insurance. Insurance product development is mandatory for the company Red Kites Money to attract the client and make it successful to work £1500 for each client. The company targets the 10% client of 5000 customers where the company can contribute in the revenue approximately £30000 which is fruitful for the organisation to expand their business sustainably. The organisation also needs to invest in marketing promotional activities such as social media advertisement, social campaigning and creating banner for promoting the product in the market to attract the people aged between 35 years to 60 years during the pre-retirement period. The people can have better option to invest in this product and ensure high investment for getting high return on investment. Implementation and control planning depends on the marketing experts for better management and the organisation must focus on managing the client for delivering high quality insurance product and support them 24*7 for providing efficient services to all the clients.

Reference List

Asseraf, Y., Luis, L.F. and Shoham, A., 2017. The “Marketing Flexibility–Marketing Planning” Paradox and New Product’s Performance: An Abstract. In Marketing at the Confluence between Entertainment and Analytics (pp. 1389-1389). Springer, Cham.

Cassidy, A., 2016. A practical guide to information systems strategic planning. CRC press.

Floreddu, P.B. and Cabiddu, F., 2016. Social media communication strategies. Journal of Services Marketing.

Hanlon, A., 2019. Digital Marketing: Strategic Planning & Integration. SAGE Publications Limited.

Hollensen, S., 2019. Marketing management: A relationship approach. Pearson Education.

Leon, R.D., Rodríguez-Rodríguez, R., Gómez-Gasquet, P. and Mula, J., 2017. Social network analysis: A tool for evaluating and predicting future knowledge flows from an insurance organization. Technological Forecasting and Social Change, 114, pp.103-118.

Sadeghpour, F., Far, M.G., Khah, A.R. and Amiri, M.A.A., 2017. Marketing Strategic Planning and Choosing the Right Strategy using AHP Technique (Case Study: Ghavamin Bank Mazandaran). Dutch Journal of Finance and Management, 1(2), p.45.

Tomczyk, P., Doligalski, T. and Zaborek, P., 2016. Does customer analysis affect firm performance? Quantitative evidence from the Polish insurance market. Journal of Business Research, 69(9), pp.3652-3658.