Marketing mix application of Bao Minh insurance corporation

Completing the distribution channel in a diversified and

effective direction

Bao Minh is focusing on developing distribution channels and

diversifying sales methods. Currently, instead of paying for insurance at the

company's headquarters, customers can go to the company's agent system.

By expanding the distribution channel, especially through banks, customers

can go through the affiliate's banking system to pay. Moreover, Bao Minh

should aim to build a process to operate customer-friendly distribution

channels, easily and conveniently for customers

pdf27 trang | Chia sẻ: honganh20 | Ngày: 08/03/2022 | Lượt xem: 70 | Lượt tải: 0download
Bạn đang xem trước 20 trang tài liệu Marketing mix application of Bao Minh insurance corporation, để xem tài liệu hoàn chỉnh bạn click vào nút DOWNLOAD ở trên
market share in Vietnam's insurance market. This is a big challenge for Vietnam insurance enterprises, including Bao Minh right in the domestic market, requiring Vietnamese insurance enterprises to have an appropriate business strategy. 1.3.2. Research gaps Thus, there are a number of domestic and foreign scientific studies on marketing mixes and insurance companies' activities on the Vietnamese market. However, there has been no scientific research on marketing mix in business activities of Bao Minh Insurance Corporation in the Vietnam insurance market. This is the biggest gap in the research and application of marketing mix into specific insurance businesses in Vietnam. 1.4. Research questions Question 1: Does the application of Bao Minh marketing mix inherit the experience of marketing mix application of other insurance enterprises? 7 Question 2: In the process of marketing mix, what difficulties does Bao Minh encounter? Question 3: How does the operation of marketing mix applicationof Bao Minh happen? Question 4: What factors affect the application of Bao Minh's marketing mix? Question 5: What are the solutions to improve the application of marketing mix for Bao Minh in the period 2020-2025? CHAPTER 2. THEORETICAL AND PRACTICAL BASIS ON APPLICATION OF MIXING MARKETING IN INSURANCE BUSINESS 2.1. Overview of insurance and insurance businesses 2.1.1. Concept, insurance classification Insurance is understood as a transaction, expressed by the terms, in which the individual or organization will be financially protected or entitled to compensation for damages from an insurance enterprise. Insurance enterprises will consider customers' risks to pay reasonable expenses to insurance buyers. Insurance is used to protect against risks such as financial losses that may cause damage to the person or property of the buyer or may be liability when the buyer causes damage to the third party. There are many different types of insurance mechanisms, and almost any individual or business can find an insurance company that is willing to guarantee them depending on the price. To manage these types of insurance, people are classified into groups based on different criteria, specifically as follows: Classification by subject of insurance; Classification by the mode of management; Classification by operational purposes; Classified by insurance techniques. 2.1.2. The role and characteristics of insurance 2.1.2.1.The role of insurance 2.1.2.2. Characteristics of insurance 2.1.3. Insurance business activities Insurance business means an operation of an insurance enterprise for profit-making purposes whereby an insurance enterprise accepts the risks of the assured, on the basis that the insurance buyer pays insurance premiums to the insurance enterprise to get beneficiary or indemnify the assured when an insurance event occurs. 8 2.2. Marketing mix application in insurance business 2.2.1. Overview of marketing mix application It can be said that marketing mix applicationin insurance business is a complex of decisions on products, prices, place, promotion, people, process and physical evidence that enterprises actually carry out to obtain the desired response from the target market. In fact, this marketing mix system describes a specific combination of the above seven types of decisions and the implementation of those decisions allows the insurer to meet market needs and achieve business goalst. The marketing manager is responsible for designing and selecting the best combination of them. In order to organize business activities well, insurance enterprises need to first identify the contents of the marketing mix well. 2.2.2. The implication content of marketing mix applicationin insurance business The content of marketing mix in insurance business is a set of inclusion: 2.2.2.1. Product 2.2.2.2. Price 1 2.2.2.3. Place 2.2.2.4. Promotion 2.2.2.5. People 2.2.2.6. Process 2.2.2.7. Physical evidence 2.2.3. The criteria to evaluate the effectiveness of marketing mix application Here are some criteria to evaluate the effectiveness of marketing mix application used by many insurance businesses. 2.2.3.1. Increase the number of customers 2.2.3.2. Return rate (ROI) 2.2.3.3. Sales 2.2.3.4. Profits on advertising costs (ROAS) 2.2.3.5. Feedback from staff and partners 2.2.3.6. Action of competitors 2.3.3.7. Customer satisfaction level on marketing mix application 1 Trong kinh doanh bảo hiểm thì giá sản phẩm bảo hiểm đồng nghĩa với phí bảo hiểm 9 2.3. Factors affect on the application of marketing mix in insurance business As is well known, the special properties of insurance products are expressed primarily in the intangibles and backward business characteristics. These two characteristics provide for a fundamental difference between an intangible product and a tangible product. Therefore, the application of marketing mix in insurance business has many differences that require marketing managers to consider clearly the factors affecting the mixed marketing system. In addition, because the success or failure of a business plan or a marketing mix program takes place in certain environments. Here is the marketing environment. This environment is a collection of multidimensional factors affecting the formulation and implementation of marketing mix decisions of businesses, including: Economics, Politics, Law and Society, Technology (revolution) Industry 4.0), Enterprise (type of business, structure, corporate culture), Customer, Risk Management, Competition 2.4. Experience in marketing mix applicationat some insurance companies in Vietnam 2.4.1. Marketing mix application of some insurance companies 2.4.1.1. Marketing mix application of PVI insurance company 2.4.1.2. Marketing mix application of Investment and Development Insurance Corporation of Vietnam. 2.4.1.3. Marketing mix application of AIG Insurance Company 2.4.1.4. Marketing mix application of insurance company Bao Viet - Tokio Marine 2.4.2. And the lessons of marketing mix applicationof these businesses Five lessons of experience associated with: products, pricing, promotion, human resources, operating procedures, facilities and facilities were shown in the dissertation. CHAPTER 3. CURRENT SITUATION OF MARKETING MIX APPLICATION OF BAO MINH 3.1. Overview of Bao Minh Bao Minh officially came into operation in early 1995 with an initial capital of only VND 40 billion and 84 staff. In 2004, Bao Minh Insurance 10 Company was equitized and transformed into a joint stock corporation model under the Decision No. 1691/2004 / QD-BTC dated March 3, 2004 and 2803 / QD-BTC dated 30 / 8/2004 Ministry of Finance. The company officially operated under the new model based on the establishment and operation license No. 27 / GP / KDBH dated September 8, 2004 of the Ministry of Finance. Upto now, Bao Minh is the third enterprise in the non- life insurance market, with a charter capital of VND 913 billion, owner's equity of VND 2,171 billion and a wide operating network through 62 branches in all country. Bao Minh operates in non-life insurance, non-life reinsurance, and financial investments. Currently, Bao Minh is providing more than 100 insurance products necessary for individuals, businesses and the economy such as property insurance, construction insurance, motor vehicle insurance, technical insurance, human insurance, marine insurance Table 3.1: Premium revenue of major product groups for 2016-2017 of Bao Minh Unit: VND billion Numerica l order Group Practic e 2016 Plan 2017 Practic e 2017 % complet e the plan % compare d to 2016 practice 1 Marine Group 374 331 372 112.39 99.47 2 Property Group 906 967 968 100.1 106.84 3 Motor vehicle group 850 995 831 83.52 97.76 4 Human group 972 1,11 6 1,224 109.68 125.93 5 Reinsuranc e group 372 407 429 105.29 115.2 6 Total 3,474 3,81 6 3,824 100.2 110.06 Source: Bao Minh, 2018, Annual Report of Bao Minh 2017, Bao Minh Insurance Corporation, p. 11 11 3.2. Marketing mix application of Bao Minh 3.2.1. Product As is well known, Bao Minh is the third insurance company in the market which carries out non-life insurance, reinsurance and financial investment activities. The company's product policy is expressed through decisions about product categories, product quality and brands. The objective of Bao Minh's product policy is to provide customers with increasingly completed quality products, rich and flexible products, helping the company to enhance its position in the market. 3.2.1.1. Product categories Currently, Bao Minh provides hundreds of insurance products of all kinds (for details see the table of insurance types of Bao Minh). These products are divided into Bao Minh's main insurance product groups including: 1) motor vehicle insurance, 2) human insurance (life insurance), 3) property and technical insurance, 4) marine insurance, 5) aviation insurance, 6) agricultural insurance. Box 1: Evaluation of products in marketing mix application Consider marketing mix is a complex system of 7 types of decisions as known in insurance business in Bao Minh is a new problem. Is it common here to focus on the type of product decision rich? And how to promote it? Le Anh Tuan, Director of Bao Minh Marketing Department Phone number: 0908240540 3.2.1.2. Quality of insurance products and brands Bao Minh especially attaches special importance to the quality of product and service shown by improving the quality of customer service with the most complete and convenient service system today. Bao Minh has a complete brand identity system from (Bao Minh) quite simple and easy to remember, the logo is designed based on the national flower of Vietnam, with the motto of "dedicated". In recent years, Bao Minh brand has affirmed its position in the market. 3.2.1.3. Customer reviews about Bao Minh's insurance products The survey showed that customers' satisfaction with the product diversity of Bao Minh is not high, with an average of 2.73 and 42.11% of the votes for average satisfaction. Although Bao Minh has tried hard to diversify its products, this shows that Bao Minh needs to try harder in the future. When the product is diversified at a high level, it will create a competitive advantage for Bao Minh. The remaining four observed 12 variables are at an average level of> 3. This shows that the quality of Bao Minh's insurance products, customer care, the differences of Bao Minh's products and brands are assessed highly by customers. Bao Minh needs to develop this advantage in the future. 3.2.2. Price 3.2.2.1. Price policy of Bao Minh Bao Minh has built a relatively reasonable price list for each product group over the years. Bao Minh implements the preferential price policy applied to customers who have a period of insurance policy in Bao Minh for a long time, customers who have a history of low losses when renewing have policies of discount and discount. In fact, the current pricing policy of Bao Minh, despite being competitive in the market, has not met the expectation of reasonable costs for insurance customers. 3.2.1.2. Customer reviews about insurance product prices Survey results show that the level of customer satisfaction on flexibility and in accordance with customer needs is not high. The average score is only 2.64 and 62.63% of the customer’s votes rated at average. This shows that the customer satisfaction level of Bao Minh's product price corresponds to the actual product pricing of this business mentioned above. The remaining observed variables achieved an average score of> 3. This is an advantage, Bao Minh needs to promote in the coming years. 3.2.3. Place 3.2.3.1. Distribution channel of Bao Minh Box 3: Evaluation of Bao Minh's distribution channel So far, the plan to implement the decisions associated with 7P is made by the corporation, and the implementation is assigned to member units. This reduces the activeness of the member units, corporations need to adjust accordingly. Need to build the main and priority distribution channels. The determination of this plan requires the participation of a number of units based in big cities with many customers such as Ho Chi Minh City, Hanoi, Da Nang ... To be fair, the diversity of decisions Bao Minh's distribution plan has not been as expected. Pham Thanh Hai, Director Bao Minh Dong Do Phone number: 0904038669 3.2.3.2. Comments of customers about the distribution of Bao Minh's insurance products 13 Survey results show that the level of customer satisfaction about the diversity of distribution channels that Bao Minh is using is low; the average score is only 2.63 and 52.63% of the rating 52, 63% on average. This suggests, in the future, Bao Minh needs to diversify the types of product distribution channels. Moreover, the level of customer satisfaction with the observed variables PD3.2, PD3.3, PD3.4. PD3.5 are all high. This is an advantage, Bao Minh needs to promote. 3.2.4. Promotion 3.2.4.1. Promotion activities of Bao Minh Bao Minh has used many ways to promote products, where people often focus on advertising and public relations through which to position the brand. Bao Minh has used the official website to advertise and link with other websites to make advertising banners for products. In addition, Bao Minh is also a sponsor of many programs, events ... such as sponsoring insurance for the "Red Journey" program, giving gifts to Nguyen Duc Canh scholarship students.... By these activities, Bao Minh aims to target potential customers in the retail market segment and affirm its position in Vietnam's insurance market. 3.2.4.2. Customer's opinion on promotion activities of Bao Minh The survey showed that most of the interviewed people said that the promotion policy of Bao Minh was not diversified. This is reflected in the average score of only 2.62 (<3) and 51.58% of customers rated this observation level at the average level. The remaining observed variables reflect the optimistic indicators. This shows that Bao Minh needs to pay attention to the diversity of promotion in subsequent plans. 3.2.5. People 3.2.5. 1. People of Bao Minh Bao Minh attaches importance to training through work. Because this is the job to communicate directly with customers, where employees are mentored, instructed by experienced people and over time, the capacity of these employees is enhanced. Training courses on professional skills are also organized periodically by Bao Minh. However, the issue of improving business ethics and friendliness when communicating with customers is still an expectation to be achieved in the future. 14 3.2.5.2. Customer's opinion about human resources of Bao Minh The survey showed that the two observed variables PD5.2 and PD5.4 only achieved an average of 2.76 and 2.71. This is a low level, requiring Bao Minh to pay attention in the near future. And the three observed variables PD5.1, PD5.3 and PD5.5 reach an average score of> 3. This index reflects the actual marketing mix application of Bao Minh in recent years. Bao Minh needs to promote this advantage to continue increasing its competitive advantage. 3.2.6. Process 3.2.6.1. Operation process of Bao Minh It can be said that the management model of Bao Minh has been determined and put into operation relatively effectively. The Regulation on appointment of leaders, the process of planning for source officials and the democratic regulation in joint-stock enterprises is formulated and implemented. The system of legal documents on organizational structure, risk management, corporate governance, operational processes of employees has been gradually developed and adjusted according to the development requirements of enterprises in each specific period. 3.2.6.2. Comments from customers about the operation process of Bao Minh According to the survey, only 5 out of 5 observed variables PD6.4 have an average score of 2.75. This shows that the coordination and responsibility regulations of the subordinate departments need to be improved in the future by Bao Minh. The remaining observed variables evolved in a positive direction. Bao Minh needs to maintain this advantage. 3.2.7. Physical evidence 3.2.7.1. Physical evidence of Bao Minh As we know, headquarter of Bao Minh Insurance Corporation is located at 26, Ton That Dam, Nguyen Thai Binh Ward, District 1, Ho Chi Minh City. This is the leadership center of both the Corporation and its subsidiaries. With 4,000 BMI agents in 63 provinces and cities, BMI wants to ensure that the BMI insurance brand will cover the whole country. And the policy is that if the transaction offices in the provinces have grown strong enough, they will be upgraded into member companies to be able to standardize the size of BMI. BMI's business strategy is to meet all the needs of customers from individuals to businesses. 15 3.2.7.2. Opinions of customers about physical evidence of Bao Minh 3.3. Factors affect onBao Minh's marketing mix application Identify factors affecting Bao Minh's marketing mix application through two aspects: statistical analysis and discovery factor analysis: 3.3.1. Statistical analysis 3.3.1.1. Economy When economic growth has progressed positively, leading to the increasing demand for insurance for construction works and projects. This is a potential for insurance industry in general and non-life insurance in particular, including Bao Minh. 3.3.1.2. Politics, law and society In recent years, insurance institutions have become more and more complete, joining insurance has become mandatory for some types, such as compulsory civil liability insurance of investors, compulsory civil liability insurance of motor vehicle owners when participating in traffic, compulsory fire and explosion insurance for buildings and constructions ... As a result, Bao Minh's insurance mayor has an opportunity to increase. 3.3.1.3. Technology In addition to the BEST and SAP management systems, hardware equipment has also been developed to meet the use of information technology for contract management, synchronous financial management from member companies. to the Corporation. This helps the Board of Management, the Boards at the headquarters to immediately report business, from which there is close guidance to the operations of the member unit. In the past time, Bao Minh has launched an online sales channel and applied social networking platform (digital platform) to reach customers relatively successfully. 3.3.1.4. Enterprise The issue of corporate governance was focused on by Bao Minh right after being separated into an independent institution. Because corporate governance has a direct and multifaceted impact on the marketing mix application. This work is closely linked with each stage of planning, implementation, leadership and control, from the Corporation level to the member unit level. In particular, management issues among the professional departments are coordinated, from the stage of exploitation to the stage of evaluation, compensation and payment. 16 3.3.1.5. Customer Recognizing the impact of customers on the application of marketing mix, Bao Minh is always seeking ways to meet the insurance needs of customers. Bao Minh constantly endeavors to apply modern technologies in information management and customer care, while consolidating the organizational structure to provide the highest quality of service, in the shortest time. Bao Minh is currently ranked third in the market, numbering over 80,000 customers. 3.3.1.6. Risk management Bao Minh has built a risk management system to detect and assess the risks they face. Develop acceptable risk control policies and procedures. The risk management system is periodically evaluated so that the company can best identify risks and find solutions. 3.3.1.7. Competition Like other factors, competition is having many dimensions affecting the application of Bao Minh's marketing mix. Competition is on the rise. This is identified through the growing number of businesses involved in insurance. These businesses also consider applying marketing mix as an important competitive tool. 3.3.2. Results of exploratory factor analysis 3.3.2.1. Test the reliability of the scale through Cronbach’s Alpha reliability coefficient In order to accurately identify the factors influencing the application of marketing mix in Bao Minh, from which we can propose solutions to promote positive impacts from these factors, the author analyzed the exploratory factor analysis via SPSS software. a) Scale of economic factor; b) The scale of political, legal and social factors; c) Technology scale; d) The scale of the enterprise factor; e) The scale of customer factor; f) Scale of risk management factors; g) Scale of competition factor. 3.3.2.2. Exploratory factor analysis + Testing the suitability of the EFA + Correlate testing of observed variables in representative measurements + Test the interpretation level of observed variables 17 3.4. General assessment 3.4.1. Successes The achievements in marketing mix application of Bao Minh are reflected through the effectiveness of applying marketing mix in the period of 2015-2019, as follows: Firstly, occupy a high position in the non-life insurance market. Secondly, increase the number of customers. Thirdly, increase the rate of return. Fourthly, increase sales. Fifthly, the return on advertising costs (ROAS) is high. Sixthly, upgrade management process. And seventhly, Bao Minh is increasingly aware of the role of customers in business operations, without customers, there is no business. 3.4.2. Limitations and reasons 3.4.2.1. The limitations Besides the achievements in marketing mix application as mentioned above, there are also many shortcomings that Bao Minh has to face. Firstly, human resources: the compliance with regulations from the exploitation stage to the stage of loss assessment, compensation approval, compensation payment has not yet complied with the regulations of the business, causing complaints from customer. The second is about process implementation: innovation and process implementation are sometimes subjective and not really scientific. Therefore, it is necessary to innovate regularly to meet and adapt to the market, thus retaining customers, ensuring stable revenue and growth. Thirdly about products: due to increasing competition in the market, the number of non-life insurance companies increases with increasingly diverse insurance products. Therefore, if not changed or invested in researching new products, Bao Minh will be lagged, insurance products will be outdated, and customers will abandon Bao Minh to go to other insurance companies. Fourthly about distribution channels: the widespread expansion of non- selective distribution channels does not bring business efficiency. Low revenue will cause business costs to increase, which affects the business efficiency of Bao Minh. 18 Fifthly about valuation: the reduction of fees should determine the appropriate reduction, avoid the race to lower fees, high discounts, only bring increased revenue but the high total cost makes Bao Minh's financial situation not improved. Good and low solvency. Sixthly on promotion: the maintenance of annual advertising has not been implemented regularly, lacking in planning and comprehensiveness, which will lead to the efficiency of advertising activities is not high and wasteful. Various forms of promotion have not yet been taken seriously. And the seventhly of facilities and facilities: although this work has been improved but still has not met the business requirements. 3.4.2.2. Reasons Bao Minh has spent 25 years operating and focused on applying marketing mix in business but in reality Bao Minh has not yet built an appropriate marketing strategy. Marketing unit of the newly established unit, this board has announced the company's business strategy, where marketing is mentioned but not yet the reach of a practical marketing strategy. Therefore, the marketing information system has not been completed, especially the information about customers and competitors is still lacking and not tim

Các file đính kèm theo tài liệu này:

  • pdfmarketing_mix_application_of_bao_minh_insurance_corporation.pdf
Tài liệu liên quan