Consumer Behaviour

1.Prepare a segmentation and targetting plan that can be used by the insurance agent, or the insurance company, for the given town Rampur, or town class (Population 3 lakhs) respectively. Perspective of either agent of company can be taken. This should involve segmentation criteria,

segment potential, attractiveness, and target segment details.

India with about 200 million middle class household shows a huge untapped potential for players in the insurance industry. Saturation of markets in many developed economies has made the Indian market even more attractive for global insurance majors. The insurance sector in India has come to a position of very high potential and competitiveness in the market.

Therefore segmentation and targeting plan should include middle class and lower class. He should target Rambir. Rambir has limited education and his income is variable. However according to studies this segment is an untapped segment. This segment tends to value oriented and remains brand loyal. Therefore this segment should be targeted by insurance agent

2. In India there is a strong societal influence and norms denoting class related activities.Age position in extended family and caste has to be taken into consideration which become as important as education , awareness occupation etc,

* Therefore segmentation plan for the insurance agent is as follows-(The Urban SEC Grid, which uses Education levels and Occupational criteria of the Chief Wage Earner (CWE) of a household as measures to determine socio-economic classification, and segments urban India into 7 groups (A1 to E2) and

* The Rural SEC Grid, which uses Education and Type of House )-

Geographic SEC segmentation -C,

Age -35 49 yrs

Family size -nuclear as well as joint families with children <6 yrs.

Occupation- traders,shop owners,business men

Personality-responsible

User status -potential user,

Loyalty status-absolute

Readiness- informed

Marketing criteria- social position and age-in rural areas this is a large segment who hold a social position in the family and would be trend setters.

They are educated but not too an extent that they can make better investments than Iinsurances.

They are also not saturated like the service class who are already insured for most. Therefore there is a potential market for expansion

Segment potential-segment potential is high as in India this segment is relatively unsaturated compared to service class. This segment would also require less convincing as financially literate guys.

Profitability is medium . as this segment would not buy premium insurances due to variable incomes. Hence the insurance agent would be targeting on high volumes rather than higher margins.

Segment attractiveness -highly attractive segment as high growth due to untapped resources. Less competition as other companies would target on service segment

2. Given the segmentation plan, what should be the positioning/value

proposition, and marketing mix that should be used for the target

segment

VALUE PROPOSITION FOR THE INSURANCE COMPANY

* Establish a unique position Targeting a different yet highly potential segment which has remained untapped.

* Be relevant to target market segment (by addressing a real problem, and fulfillingl an emotional need or want of providing education to children which this segment has been unable to do for themselves. The insurance agent should communicate that future needs would be higher which they may not be able to fulfill

* Be credible / believable. By communicating the best plan and not the costliest one

* Have clarity (to all relevant people and targeted customers).

* Communicate advantages (versus alternatives and competitors) which are meaningful, not irrelevant differences like cheaper plans ,easy instalments etc.

* Differentiate the brand from alternatives (again, in meaningful way)

As the mass media like t.v.,internet reach is very low in this segment( 17-20%),marketing mix should involve

Sales force as the major way of selling insurance.

However r print media reach is around 50% therefore print media could be used.

Besides this place advertisement like banners to be used.

Event management in schools to be done with parent of children explained about various policies available. 1.Prepare a segmentation and targetting plan that can be used by the insurance agent, or the insurance company, for the given town Rampur, or town class (Population 3 lakhs) respectively. Perspective of either agent of company can be taken. This should involve segmentation criteria,

segment potential, attractiveness, and target segment details.

India with about 200 million middle class household shows a huge untapped potential for players in the insurance industry. Saturation of markets in many developed economies has made the Indian market even more attractive for global insurance majors. The insurance sector in India has come to a position of very high potential and competitiveness in the market.

Therefore segmentation and targeting plan should include middle class and lower class. He

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