Marketing of Education Insurance Policy(MBA Group Project)

Group MembersMuhammad Fiaz

Ei11MBA17

Naeem Arshad

Ei11MBA34

Muhammad Mohsin Ali

Ei11MBA20

Muhammad Abubakar

Ei11MBA07

Muhammad Waqar

Ei11MBA24

Danish Shahid

Ei11MBA33

AcknowledgementWe got an honor to present put up our meagre effortin the form this project to our reverent and deferentprofessor Ahmad Muneeb Mehta. We are highlyobliged and grateful to him depth of our heart that henever confined us just in books but he imparted us anopportunity to develop an instil our creative expertisefor the better future, also provided us a soundplatform to be well-groomed professionals. Therefore,it is the extract and the outcome of his supremeperception, consideration and academic guidance thatwe are able to submit our project. We believe we willbe highly motivated and encouraged in this attempt.

What is Insurance?Insurance is basically risk management device. The losses toassets resulting form natural calamities like fire, flood,earthquake, accident etc. are met out of the common poolcontributed by large number of persons who are exposedto similar risks. This contribution of many is used to pay thelosses suffered by unfortunate few. However the basicprinciple is that losses should occur as a result of naturalcalamities or unexpected events which are beyond thehuman control. Secondly insured person should not makeany gains out of insurance.

Why Insurance ?

You've worked hard to build a solid financial footing for you

and your family, so you want to be sure that everything is

protected. Accidents and disasters can and do happen, and

if you aren’t adequately insured, it could leave you in

financial ruin. You need insurance to protect your life, your

ability to earn income, and to keep a roof over your head.

Different types of insurance

Fire

Travel

?

Professional

Motor

Marine

Livestock

Crops

Education

Education is a powerful driver of development and one of thestrongest instruments for reducing poverty and improving health,gender equality, peace, and stability. Although there has been greatprogress in the last decade—many more children attend schools andgirls’ education has markedly improved—61 million children are still outof school. Even when children complete school, they often do sowithout acquiring basic skills necessary for work and life. This isparticularly detrimental when unemployment is high and labormarkets are demanding more skilled and agile workforces than everbefore.

Hurdle in Education

There are many hurdles in educational sector but the

financial deficiency is the biggest problem in Pakistan.

We Need

Security

• As we discussed finance is the biggest problem in education and

no one is sure about their financial standings.

• Any event can cause discontinuity in education if you are

financially disturb.

• That’s why we need security of finance to continue education

even in the financial crises.

Secure Education InsuranceNow complete your education with financial security.

Our Product Description

Secure Education Insurance- is a cover granted to students via

educational institute for semester/annual fee.

• Refund Fee

• Cover upcoming Fee

• Re-sit examination fee (extension)

How it will Work

• The amount of premium is in included in fee in the shape of %

• I will explain the product with the help of this example

Withdrawal schedule

Exclusions

• Any fine in the amount of fee.

• Re-sit examination fee.

• Any extra course taken fee.

Extensions

• Re-sit examination fee

Market Research and Analysis

Our company wants to develop and introduce a newProduct. So, we have gathered information through in-depthinterviews. We made a survey of the market to have a clearidea about our market, our customer demand, needs andwants. This information helps us to know about the currentmarket and prospects of our new product.

Market Description

Pakistan is a country of about 185 million people.. The total market size of ourproduct is about 20 million and day by day it is increasing. We have a spreadnationwide market of different convenient product. People are nowadays verymuch concerned about the market and product conditions. So we have agrowing prospect of customers of “SEI”. Among the population we worked outfew segments of customers who will prefer our product most.

Market Segmentation and Targeting

Market Segments

We have observed and analyzed the

market and based on the nature of the

market we segmented the market in the

following sectors:

Geographic sector.

Private Sector

Govt. Sector

Demographics:

Individuals

Institutions

Behavioral:

Scholarships

Fee Instalments

Target market and projections:

Analyzing all the segments, we decided our target market

according to our product category. The target customers of

“SEI” students studying in educational institutes. If we

consider price versus security of education received then we

can see that the security of education received is more

valuable. Therefore charging the mentioned prices are

justified. The following figures give a clear idea of our target

market.

Target Market:

Individual Students- 20%

Educational Institute - 80%

We separate our target market into three different

segment based on their geographic,

demographic and behavioral characteristics.

“SEI” wants to satisfy its customers

need. That’s why it is important to

identify the market needs. Our first

consideration is to provide the best

product to our customers.

Market Needs:

SWOT analysis:

The product existence in the

future is depending on its

strengths, weakness,

opportunities and threats

analysis:

Strengths:

1.Low production cost

2.Technological and marketing knowledge

3.Strong distribution channel

4.Easy process

5.Reasonable price

Weaknesses:

It is easy to copy the idea by others

Opportunities:

1.Large market

2.High demand

Threats:

1.High competition in future by

copying the idea

2.Entrance of new product

3.Alternatives are avoidable in

some segment

4.Uncertainty of launching a

new product.

Competitor Analysis

There is no competition in

market that’s why there is no

competitor for this particular

product.

Distinct Competency:

Companies can try to entrance our market

by launching new product lines to compete

us. Yet, we have distinct competitive

advantage. That is our product is still brand

new. The other companies will take

sometimes to enter into the market. Till then

we can have a monopoly market

condition. The other advantage that we

have is lower price. We will sell products in

reasonably lower price then other

competitors do.

Marketing Plan

Product

The secured education insurance

is a product specially designed to

provide cover of risk for future fee

payment.

it is provide an amount of money

when student face the financial

problem during the study.

Price

Price of secured education insurance

policy is determine by the some

percentage of the per semester /annual

fee of the particular student.

It’s 10% of fee payment.

Place

Place is a distribution channel of insurance products :

1-Through internet

2- Direct meet to the operational level of particular college or university for sale the

policy for generating the customer loyalty.

3- In the premises of insurance company.

PromotionWe can promote this secured education insurance by

1- Personal communication

2-Impersonal communication with the

customer

- By advertising in which include

Print ads, radio, television,

- By personal selling which include

Sales presentations, sales meetings,

face-to-face selling.

People

For secured education insurance There is

the need of a competent and attractive

staff and other things is keep in mind

include:

1-Qualified staff,

2-Trained staff,

3-Staff have better skills,

4-Provide the Safety

5-Public relationship,

6-Better services provided to

colleges or universities.

Process

The staff is provide the services to reduce the complications at the time of issuing of the policy

and also reduce the divergence of secure

education insurance policy for the benefits of

customer.

Physical Evidence

- College bag with printed labels

- Key rings

Pricing Strategies

We have decided to set a reasonable price for our product when

we will develop it. We considered many factors in setting the

pricing policy.

1. Setting the pricing objectives:

Our company has decided where it wants to position its market

offering. We have chosen our objective to maximize market

share. We believe that a higher sales volume will lead to lower

costs and higher long-run profit. We have set the lower price

because we assume that the market is price sensitive. Our overall

objective is to capture the maximum market share by setting

lower price.

2. Estimating costs:

We have estimated the cost and want to charge a price that

covers the cost of pure premium, commission and profit margin of

the product.

3. Types of cost:

Insurance products include the following costs:

Pure Premium

Commission

Administration cost

Marketing cost

4. Analyzing competitor’s costs, prices and offer:

There are no competitors in the market therefore analyzing the

competitor’s cost is not possible.

5. Selecting a pricing method:

The pricing method for our product will be based on the

percentage of the covered fee and also depend on the pool.

Marketing Strategy

To acquire a strong position in the market, we need to

give special emphasis on effective promotional activities.

In order to get the maximum market share we will have to

use all tools of marketing promotion. Specially, advertising

through mass media will support us a lot.

Advertising:

We initially will give more emphasis on

paper ads and TV commercials. Because,

advertising through these media is the

most effective way to reach the customers

and position our product in their mind.

Personal Selling:

Personal selling is most effective

tool of insurance products. Both

the parties can directly interact

with each other.

Promotional Tools:

We have also planned to apply

some promotional tools. We

may apply the strategy of giving

gifts, lucky coupons, college

tours depending on the market

and competitive situations.

Conclusion

This new product offering is the best

choice for the students to eliminate

the financial hurdle in their

education.