Published by MBA Skool Team, Last Updated: January 06, 2018
Marketing Strategy of AIA Insurance analyses the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). There are several marketing strategies like product innovation, pricing approach, promotion planning etc. These business strategies, based on AIA Insurance marketing mix, help the brand succeed.
AIA Insurance marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.
Let us start the AIA Insurance Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
AIA Insurance Product Strategy:
The product strategy and mix in AIA Insurance marketing strategy can be explained as follows:
AIA insurance company is one of the largest financial institutions in the world, especially in insurances. AIA is an insurance company that offers a cover in return of multiple regular premiums. An insurance is simply a contract between two parties where one is willing to pay small premium amounts, instead of incurring a huge loss all at once, to the other party which will cover the loss on the basis of a few conditions. AIA offers many products in its marketing mix such as Life insurances, Medical Protection, which cover your medical expense, critical Illness protection for specific medical conditions, and accidental cover for road accidents, insurance for travel and lifestyle to protect belongings and oneself on a trip. These are some of the areas where AIA offers insurance and allows the customers to avail these services once proper background check and approval is taken from them.
AIA Insurance Price/Pricing Strategy:
Below is the pricing strategy in AIA Insurance marketing strategy:
AIA insurance uses prices which helps it compete with the challenging competitors in the sector.
Prices in the insurance sector are predatorial. The same life insurance can be offered by three different parties at the three different prices. Prices completely depend upon the kind of cover that is offered, the kind of client an insurance company deals with, how often they meet with accidents, and the conditions that are applied on the basis of which an insurance cover will be provided. There are a number of players in this market and that can be the reason why prices need to be affordable at the same time need to be profitable for the insurance provider. Complete break even analysis needs to be done through data regarding the number of customers that actually had to be provided the coverage in the year.
AIA Insurance Place & Distribution Strategy:
Following is the distribution strategy in the AIA Insurance marketing mix:
AIA Insurance enjoys a strong presence in some of the upcoming economies Pan-Asia. And this is the region where need for a proper insurance system is immense. Lately, most of the insurance activating and availing is carried out through online mediums.
A service can be booked online and an AIA agent can visit the party with all the valid information regarding a particular insurance scheme.
AIA Insurance Promotion & Advertising Strategy:
The promotional and advertising strategy in the AIA Insurance marketing strategy is as follows:
The brand which is now famously known as the Real Life Company, advertises and promotes the brand on multiple mediums under the same name. They have made a conscious effort to improve social media presence and since then have managed to garner huge attention from potential customers. The brand advertises on vanilla mediums like TV, radio, print and outdoors as well, depending on the country, city, location and the kind of traction it enjoys in that region.
Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of AIA Insurance.
People involved in the working of AIA Insurance are insurance agents, people that create policies, people that maintain data and customers that at the end of the day need an insurance. Further, there are people involved that acts as motivators to a customer that pushes other potential customers to buy an insurance.
The process here is quite simple. There are set policies designed that a customer can opt for. Whenever an insurance is needed, the customer can reach out to AIA. AIA Insurance will arrange for an insurance agent that will visit the person or business in need for an insurance. A plan is selected and a premium amount is selected. On the basis of the same a cover is provided to the customer. Once the customer starts paying a premium, he is insured.
The physical evidence provided in this case is the insurance documents or in today’s time the e-document that AIA will provide once a customer has availed for the insurance. Advertisements, brochures and plans can be treated as physical evidence as well. This concludes the marketing mix of AIA Insurance.
About AIA Insurance:
AIA is the biggest, public listed – independent Insurance Company in whole of Asia. They offer services across the globe and have subsidiaries in 18 countries. In 2019, the company will celebrate its 1st century, as the company was founded by Cornelius Vander Starr in Shanghai in the year 1919.
The company eventually became a part of the American International Group, and was later split from the same. AIA released its IPO in 2010 and hence went on the raise an amount of HYK$159 billion, which apparently is the third biggest IPO the world has ever witnessed.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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