Strategic management and marketing strategy in insurance companies : case: China Life Insurance Company Limited in Shifang
Duan, Miao (2012)
Duan, Miao
Lahden ammattikorkeakoulu
2012
All rights reserved
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-201205117715
https://urn.fi/URN:NBN:fi:amk-201205117715
Tiivistelmä
Currently, rural issues have become the crucial obstacles to the sustainable development of China. In order to solve those problems, the Chinese government decided to implement the micro insurance policy in undeveloped rural areas.
In light of the government decision, China Life Insurance Company Limited, the leader and state-own life insurance company in China, launched the pilot program to sell micro life insurance to the low-income population. China Life decided to enter the rural market with its mass marketing strategy that applied in all branches of the company to cover the entire market. However, the mass marketing strategy ignores the various demands for life insurance products for different people, thus, cannot effectively satisfy customers’ needs. Moreover, low awareness about life insurance in rural areas is still a problem that hinders China Life’s sales.
Following the strategic management process, the author applies qualitative research method and deductive method to investigate the external and internal environment for China Life. Data are collected from primary sources, including interviews, and questionnaires, and secondary sources, such as books, journals, and electronic sources, etc.
Considering all the external and internal factors that have been analysed in this thesis, the author found out that China Life should step into rural markets with marketing strategy that emphasizes the differences among different segmentations. In other words, the company should sell tailored products to each target group in order to expand its market share in rural areas.
In addition, since life insurance awareness is relatively low in rural areas, the author proposes to continue the company’s promotion plan, and human resources training plan to improve the recognition of life products as well as the quality of direct sales persons who greatly affect on selling insurance products.
In light of the government decision, China Life Insurance Company Limited, the leader and state-own life insurance company in China, launched the pilot program to sell micro life insurance to the low-income population. China Life decided to enter the rural market with its mass marketing strategy that applied in all branches of the company to cover the entire market. However, the mass marketing strategy ignores the various demands for life insurance products for different people, thus, cannot effectively satisfy customers’ needs. Moreover, low awareness about life insurance in rural areas is still a problem that hinders China Life’s sales.
Following the strategic management process, the author applies qualitative research method and deductive method to investigate the external and internal environment for China Life. Data are collected from primary sources, including interviews, and questionnaires, and secondary sources, such as books, journals, and electronic sources, etc.
Considering all the external and internal factors that have been analysed in this thesis, the author found out that China Life should step into rural markets with marketing strategy that emphasizes the differences among different segmentations. In other words, the company should sell tailored products to each target group in order to expand its market share in rural areas.
In addition, since life insurance awareness is relatively low in rural areas, the author proposes to continue the company’s promotion plan, and human resources training plan to improve the recognition of life products as well as the quality of direct sales persons who greatly affect on selling insurance products.