Short Case Study: Strategic Marketing, writing homework help
Seek Uritee (as in “sec-urity”), the President of Reliable Insurance was reviewing this year’s annual business plan. Reliable was a property and casualty insurer, selling home, auto and liability insurance. They did not sell life insurance nor any form of health or medical insurance. Reliable did not have its own salesforce. It relied upon independent agents.
Uritee’s primary concern was for his profitability. Customers were becoming increasingly price-sensitive and Reliable, as the number four firm in market share, was far from being the low cost producer in the industry.
As Uritee considered the options, he reflected on how the industry had changed in recent years. What had once been a highly fragmented industry with no truly dominant player was rapidly consolidating. A number of mergers and acquisitions had created some relative giants. Brokers were joining franchises, forming buying consortia to reduce costs and increase bargaining power vis-à-vis insurance companies. Add to this the threat of both lower cost (than agent) Internet-based distribution and new competition from other financial institutions, like banks, and the outlook appeared bleak.
a. Assuming that people today are no less security-minded (or Seek Urite-minded) than they were in earlier times, what does the consumers’ new-found focus on lower prices imply about how suppliers have marketed their product (i.e. what sorts of things haven’t suppliers been doing)? (15 marks – 75 words or less)
b. What sorts of things could Urite do if he wishes to successfully offer a premium priced product? Be certain to comment both on the nature of the product offering and the supporting infrastructure. (35 marks- 400 words, double-spaced not including exhibits)
c. What sorts of things might Urite consider doing if he discovers that he cannot do the things required to support a premium price? Be certain to comment both on the nature of the product offering and the supporting infrastructure. (35 marks – 400 words , double-spaced not including exhibits)
d. What should Urite do? If your answer is “it depends…”, tell me what it depends upon by listing the five MAJOR things you would like to know. You should provide a short (as in one sentence defense) for how each item of information will assist you in making the decision. Please be specific (i.e avoid generalities like “will people buy it?”) – no page limit but brevity appreciated (15 marks)
Please see the Seek Urite file attached for more details. I will be uploading the Slides for session 3 and 4 by next week as well.
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