Marketing Strategy of Bajaj Allianz analyzes the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). These business strategies, based on Bajaj Allianz marketing mix, help the brand succeed in the market. Let us start the Bajaj Allianz Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
The product strategy and mix in Bajaj Allianz marketing strategy can be explained as follows:
Bajaj Allianz is one of the leading insurance companies in India. Bajaj Allianz is a long-term provider of life insurance cover and has a diversified product portfolio. It has a total of 100 products out of which 25+ are related to health.
Its focus is on providing innovative plans and schemes to its customers. Its marketing mix product portfolio is as follows:
- Term plans – lower-priced life insurance plans with options to add riders which increase financial security
- ULIP (Unit Linked Insurance Plans) – These help in diverse investment of money in debt, equity, and money market instruments, etc.
- Retirement Plans like Life Long Assure Plan, Pension Guarantee Plan, Retire Rich Plan
- Child Plans – Both to save money for marriage and children’s education
- Investment Plans like Save Assure, Guarantee Assure, Invest Assure
- Group life insurance - providing cover to groups of people such as employers-employees, co-workers, professionals, cooperative societies, etc.
Bajaj Allianz Price/Pricing Strategy:
Below is the pricing strategy in Bajaj Allianz marketing strategy:
Bajaj Allianz has a very diversified portfolio hence its products are priced variedly. The prime rates are fixed taking into consideration many and with the guidance of the Government.
It offers one of the lowest priced life insurance premium plans with its Risk care plan at around Rs.3200 per year for a 5 year term. Bajaj Allianz’s pricing strategy depends on the competition and the market conditions much more than on company decisions. This industry has highly competitive pricing strategies and it also tries to be competitively priced. To have a loyal customer base, it has offered its premium at fairly affordable rates and offers many different plans to its customers to choose from. Its penetration to different demographics strategy is growing at a fast pace due to such pricing models
Following is the distribution strategy in the Bajaj Allianz marketing mix:
While the traditional distribution network for insurance companies being agents now more and more companies are using unconventional methods like e-networking, bancassurance, online service integration, brokers, etc. Bajaj Allianz has a network of 40+ offices across India present in all parts of the country. With an objective to provide insurance to every nook and corner of the country it is rapidly growing its network of employees and offices. It has offices spread across all major cities and towns. Penetration in rural areas is still low.
Even though its infrastructure is smaller when compared to its competitors but it is rapidly growing.
Bajaj Allianz Promotion & Advertising Strategy:
The promotional and advertising strategy in the Bajaj Allianz marketing strategy is as follows:
Bajaj Allianz focuses both on retention of existing customers and to add new customers to its bracket. Separate marketing division is there to attend to the promotional needs of the company. Latest campaign “#IfsOfLife” on online platforms continued as “life hai ifs se bhari- fikar na kar, plan kar” gained significant traction to its website. This campaign sensitised people towards the problems and ambiguities in life but then giving hope with examples and visuals of people overcoming these challenges and ifs. Another famous ad campaign was “Samjho Ho Gaya- Life Goals. Done.” was a nationwide campaign to target entrepreneurs, travellers, students needing funds to do activities and meet their goals. It has mobile application – insurance wallet to manage and buy insurance policies. Uses mass media advertising like TV, print media, radio, etc. as well. The company also used OOH(Out-of-home) advertising to reach customers while they were out of their homes. Door to door marketing is also used by them through agents.
Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of Bajaj Allianz.
Bajaj Allianz is headquartered in Pune with offices in over 200 cities in India and more than 3,500 employees. Its entire business is hugely depended on the type of employees it has as it’s a services and insurance business where the customers need to be educated and conveyed the importance of insurance. Hence it pays a lot of attention to proper training of its employees. It pays a lot of attention to ethics, equality in work place by ensuring reviewing its systems regularly. It also ensures that company policies are followed by every employee. It has many welfare schemes for its employees.
Bajaj Allianz has steady business processes focusing on customer service. It focuses on timely service and query handling of customers. Most of the processes are automated and hence have a hassle-free interface and offer ease of use to the customers. The mobile app helps in keeping the customers aware of any new service and to provide them technical support and guidance
Bajaj Allianz has offices all across the country with rich ambience, comfortable working environment and ease in access. Hoardings and information counters outside offices provides the customers with the requisite knowledge of different plans and offers. Well-placed counter desk for ease of access to customers. The company logo, integration of company colours with the office provide important cues to the customer and help in brand awareness, retention and acceptance. Hence this completes the marketing mix of Bajaj Allianz.
About Bajaj Allianz:
Bajaj Allianz General Insurance is a joint venture between Bajaj Finserv and Allianz SE, a German financial services company. Bajaj Finserv is an Indian Financial company and a part of Bajaj Holdings, an NBFC. Finserv’s core business lies across insurance, wealth management and advisory and lending activities. It is listed in the NSE and BSE. Its other subsidiaries are Bajaj Housing Finance Limited (BHFL) and Bajaj Financial Holdings Ltd. Allianz SE is a European company out of Munich, Germany. It mainly deals in insurance and asset management.
As of 2014, Allianz is the world's largest insurance company, the largest financial services group according to Forbes magazine. The Insurance industry in consists of 60+ companies of which 20 are life insurance companies.
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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