marketing plan big revisions (2) - situation analysis (zehner & associates)
TRANSCRIPT
Table of ContentsExecutive Summary
Mission Statement
Non-Financial Goals
Financial Goals
Competitive Advantage
SWOT Analysis
Industry Analysis
Competitor Analysis
Customer Analysis
Marketing Objectives
Target Market
Points of Difference
Positioning Statement
Perceptual Map
Product Strategy
Price Strategy
Promotion Strategy
Distribution Strategy
Organizational Chart
Implementation Plan
Evaluation & Control
Contact Information
Sources
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4
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5
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6-7
8-9
10-12
13
14
14
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18-19
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20-21
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25
Company Description:
Zehner & Associates is an insurance agency located in Fort Myers, Florida and caters to the
southeast and southwest Florida region. Due to the frequent natural disasters that occur in
the state of Florida, insurance is a necessity. Direct competitors are Sawyer Insurance, Inc.,
Lott & Gaylor Insurance, Clark & Bell Insurance and they all offer similar insurance policies
and services. Other competitors include direct online competitors. Zehner & Associates
have a competitive advantage that is their brokers who each have more than two decades
of experience and expertise in the insurance industry.
Zehner & Associates need to promote themselves more aggressively to prevent
clients from switching to competitors and continue gaining new clientele.
Implementing more forceful promotional tactics by putting up a billboard, hiring
another qualified broker and two marketing interns, offering new services, putting on
a gift card drawing for clients, and improving social media sites will bring improve
company awareness Zehner & Associates.
These will be implemented over the course of two years and after the hiring of the
two upper-class marketing majors.
Executive Summary
Marketing Plan - 2
Mission StatementZehner & Associates current mission statement states:
“Zehner & Associates combines more than fifty years of experience and industry
relationships to offer clients better choices and solutions for insurance, wealth management
(or financial security) and human resources.”
A revised mission statement for Zehner & Associates is:
Zehner & Associates combines more than fifty years of experience and industry
relationships to offer insurance seekers and current clients in the Southwest Florida region,
better choices and solutions for insurance, and wealth management. Providing superior
customer service and low rates, as well as understanding customers needs,
drives the success of our agency.
The current mission statement is vague and does not describe who Zehner &
Associates’ clients are or what the operating philosophy of the agency is.
Non-Financial Goals Increase clientele by 30% by January 2020 for the agency as an entirety
Continue encouragement of referrals by current clients
Increase marketing efforts and promotions
Increase recycling efforts and continue to encourage clients to use online
statements versus mail in statements to reduce use of paper
Continue to refer clients to other Master Network (Nationwide) members as to
encourage other Master Networks members to refer clients to Zehner &
Associates
Offer internships through LinkedIn and other methods to local college students
for increased exposure to soon to be potential insurance clients
Marketing Plan - 3
SWOT Analysis
Increase revenues by 25% by January 2017
Decrease office supply costs by 5% by January 2016
Maintain cost control efforts
Financial Goals
Competitive Advantage Brokers have years of experience
o Scott Zehner, President and Advanced Markets Specialist, +20 years
experience
o Margie Tann, Vice President of Property and Casualty, +20 years
experience
Margie Tann recently became President of the local chapter of the Master
Networks (Nationwide) group
Access to more insurance companies, resulting in better coverage at
comparable rates
SIAA Affiliates
o Helps agency to remain independent, gain new markets, and
generate additional income
clients for +10 years
o 76% of clients have been Zehner & Associate
Customer loyalty
Online presence
Master Networks (Nationwide) affiliates
One-on-One customer interaction
SIAA affiliates
general professional liability, and employee practice liability
o Including group health plans, payroll solutions, human resource
management, benefits, buy-sell agreements, worker’s compensation,
Offers other services
o Including auto and boat insurance, home and flood insurance, renter’s
insurance, life insurance, Medicare health plans, long-term care, disability,
retirement, investments, and estate planning services
Offers variety of insurance services
Independent insurance agents
Margie Tann, Vice President of Property and Casualty, +20 years experience
Scott Zehner, President and Advanced Markets Specialist, has +20 years
experience
Zehner & Associates: Strengths
Zehner & Associates: Weaknesses
Small agency with limited capital
Small marketing and research and
development budgets
Relies on word-of-mouth marketing and
client referrals
Twitter page needs enhancements
Marketing Plan - 4
Industry Analysis
o Map of the United States (see next page) shows top states with subsidized
national flood insurance policies as of November 2013.
Center for Competitive Florida:
Katrina and Sandy.
mostly from claims made during Hurricane
o Intended to reduce subsidies and eliminate debt,
(NFIP) for five more years.
o Extends National Flood Insurance Program
Biggert-Waters Flood Insurance Reform Act 2012:
the near future.
o New taxation developments the insurance industry could demand change in
o Smaller insurance agencies are affected by recent changes on a state level
(ORSA) and could be at risk of federal oversight.
o Issue: Generalizing GAAP and risk requirements into common platform
o Companies are continuing to generalize accounting methods.
Pricewaterhouse Coopers LLP.’s Insurance Issues of 2014:
o Worker’s compensation will experience rate increases
o Liability insurance is experiencing a continuous increase in cost. Insurer
profitability is going down due to poor interest rates.
o Florida: average annual loss for casualty remains high
o Capital is very high in the insurance industry and will remain so.
new entrants have been the cause of increased competition.
o Property insurance is currently stable and
technologies and terrorism.
recovery of the economy, emerging
volatility of global financial markets, slow
o Issues: Cyber security and privacy risks,
2014 Wells Fargo Insurance Market Outlook:Zehner & Associates: Opportunities
Expansion via hiring another agent or broker
Cross sell insurance to existing clients
Reach out to current clients and revamp their current insurance by offering
better policies
Paperless transactions for out-of-state clients
Offer consulting services for consumers purchasing online insurance
Provide internships via LinkedIn for current college upperclassmen who will
seek insurance in the near future
Zehner & Associates: Threats
Increasing costs and consumer’s needs
Cheaper and more convenient options available (direct online insurance)
Competitors have larger advertising and research and development budgets
Government regulations at the state and federal levels
Insurance is pricier to offer in Florida
Increase in insurance prices and lower profit margins affect smaller
agencies more
Marketing Plan - 6
Competitor Analysis
subsidies:
federal health care market. Below is a graph showing which states receive
o About 7.5 million consumers could lose their subsidies in 34 states that utilize the
o Expected to end this summer 2015 and could greatly affect insurance industry
King v. Burwell Supreme Court case:
o Keeps young adults covered under the age of 26
o Removes insurance company barriers to emergency services
o Protects consumers choice of primary care doctor
o Covers preventative care
o Insurance companies must publicly justify unreasonable price increases
o Ends lifetime limits on insurance coverage
o Ends arbitrary withdrawals of insurance coverage
Affordable Care Act (ACA) 2010:
o Currently discussing how large insurance companies should be regulated and
whether or not they offer products that could pose larger financial risk to economy
Federal Reserve:
o Had huge effect on industry and future presidential election will determine further
direction of industry
ObamaCare:
o More clients purchasing pricier assets that require more insurance purchases
o On rise in southern region of the U.S.
Economic conditions:
Competitor Analysis
o Millennials have different values and are more skeptical of marketing efforts and
are less loyal to companies
Sociocultural trends
o Clients can purchase insurance online or via apps.
Technological advancements
How the ruling could reduce insurance coverage is found below:
o According to the Urban Institute for the New York Times:
o Consumers who purchase their own health insurance will also be affected
because insurance rates will increase if insurance groupings become olderMajor Brand Competitors:
Sawyer Insurance, Inc.
Lott & Gaylor Insurance
Clark & Bell Insurance
Information:
o Similar in size, growth, and profitability
Direct Online Insurance Companies:
Geico
Progressive
Esurance
The General Insurance
Information:
o Eliminates use of middle man, agent or broker
o Strengths:
Online convenience and premium prices
Promotion and pricing capabilities
o Weaknesses:
Minimal interaction with client
Buyer has high buying power
Competitor Analysis
Marketing Plan - 8
insurance offers
price premiums that direct online
Noncustomer’s needs: Buy insurance at
o Hartford, Progressive, etc.
Insurance is purchased from larger companies
o Heavy users- Have more expendable income and need more insurance for
additional items such as second homes or boats
The difference between heavy users and light users:
Home insurance policy purchases driven by the acquisition date of homes
Most policies are written semiannually for auto and annually for home insurance
Products are purchased singularly
Needs fulfilled: Sense of security
Cash, eChecks
Payment Method: Credit Card, Checks,
Area: Southeast & Southwest Florida
Purchasing Power: Male
Career: 45% Blue-Collar Workers
Children: Yes
Marital Status: Married
Age: Mostly 40s to late 50s
Customer Analysis
Marketing Plan - 9
Marketing Objectives
clients aged 30-65
Maintain and improve brand awareness among
online by 25% by January 2020
Increase number of insurance quote requests
30% by January 2020
Increase sales among clients ages 30-45 in the Fort Myers/Cape Coral area by
Increase amount of quotes written overall by 15% by January 2017
Target MarketClients age 30-65+, who are residents or own properties in the Southwest Florida
regions, have an income at or above $50,000+, preferably have children and own
vehicles and/or boats.
Points of Difference
Offer Various different types of insurance
SIAA Affiliates
Years of Experience
and Expertise
Positioning StatementTo potential and current insurance seekers ages 30-65+ in the Southwest Florida region with
an income of $50,000+ who seek for insurance that is cost effective for their homes, cars and
boats, and fits their personal needs, Zehner & Associates, is the insurance agency that
provides exceptional insurance service and values clients personal needs that offers clients
insurance brokers with upwards of 20 years of respective experience and expertise, and
therefore offers consumers variability in insurance and guarantees clients that they are finding
the insurance that fits their individual needs. The brand that is Zehner & Associates is
affordable, exceptional service, convenient, and digitally accessible.
Marketing Plan - 10
Perceptual Map
Insurance agencies mostly offer the same variety of services the only difference would be
the type of carriers they may have or promote. Therefore Zehner & Associates needs to
clearly differentiate themselves from other insurance agencies so that clients understand
why Zehner & Associates should be picked instead of other insurance agencies also in the
area. Cognitive dissonance may be present after purchasing insurance from Zehner &
Associates if clients do not pay the price that they would’ve liked to pay and may therefore
consider seeking another insurance agency that promises the client a lesser cost.
o Create a closer bond between insurance client and broker
o Reassure clients of their purchase decision
Benefits:
Suggestion: Calling current clients to follow up after sale of insurance products.
o Decrease doubt of choosing Zehner & Associates versus other insurance
agency in the area
o Clients perceive Zehner & Associates as an agency that really cares about
each individual client
Benefits:
Suggestion: Updating current clients and contacting them about better insurance
options available to them.
o Bring in new clients with different needs but require the same expertise and
experience
o Open opportunities for an untapped market
Benefits:
Suggestion: Consulting services offered for individuals seeking guidance as to which
direct online insurance companies best matches their situation.
practice liability.
vehicles, hole-in-one, and special events such as employee
sell agreements, worker’s compensation, liability, commercial
payroll solutions, human resource management, benefits, buy-
arises. Business services offered include: group health plans,
Zehner & Associates’ individual services include: auto & boat insurance, home & flood
insurance, renter’s insurance, life insurance, Medicare health plans, long term care,
disability, retirement, and investments such as estate planning. These are unsought
products meaning that consumers do not consider purchasing these products until a need
Product StrategyInsurance rates are set prices that are determined by the economy and the industry.
Individuals who practice actuarial sciences, and predict natural disasters and their impacts
set the insurance prices. Average annual homeowners insurance premium is about $900.
Therefore the prices remain unchangeable for insurance agencies. The brokers of Zehner &
Associates get paid by commission, which is based on the amount of policies they write.
Price Strategy
Promotion StrategyZehner & Associates currently have very limited promotion strategies.
Suggestion: Encouraging clients to share the Zehner & Associates Facebook page
so that they may be entered into a drawing to win gift certificate to Micelli’s
Restaurant, a local favorite.
Benefits:
o Clients will more actively follow Zehner & Associates on Facebook
o Encourages clients to share the Facebook page so that all of their friends will
see the page on their home page
o Will associate Zehner & Associates with the Micelli’s brand that is fun,
professional, and family oriented.
o Bring in clients from different areas who may be traveling through Ft. Myers
o Bring brand awareness of Zehner & Associates to heavy traffic areas around
Edison mall
Benefits:
Suggestion: Billboard advertisements near Edison mall in Ft. Myers, FL.
o Associate Zehner & Associates with local prestigious colleges
of equal caliber who may refer Zehner & Associates to their colleagues
o Brand awareness to individuals who have doctorates degrees and associates
insurance seekers in the near future
campuses and students who will be potential
o Bring awareness of the insurance agency to local
Benefits:
Suggestion: Contact local colleges in the area to set up internships among the local
college students through the business schools as well as on LinkedIn.
o See Zehner & Associates brand as one that cares for clients and their safety
rather than just wanting more clients
o Customer will remember unique free handout and therefore will more likely
remember Zehner & Associates
Benefits:
Suggestion: Smoke detector battery handouts at community events along with
Zehner & Associates home insurance pamphlet and/or brokers insurance cards.
o Will maintain brand awareness as clients will use their wallets on a day to day
basis
o Clients will want to carry such valuable information around with them just in
case
Benefits:
Suggestion: Emergency Info Wallet Cards to be handed out with business cards that
will have list of local emergency numbers such as fire department, police, poison
control, etc., include brokers contact information and Zehner & Associates logo.
Marketing Plan - 11
the colleges for advertising and promotional help is another great way to conduct free
research via their marketing research courses.
be necessary. One intern will be in charge of actively engaging on social media while the
other intern will be needed for calling clients for post service reviews and eliminating
cognitive dissonance as much as possible. Contacting the local marketing departments at
internships will be for credit only and unpaid. Two interns will
promotions and won’t cost the agency any money as the
Southwestern State College, will boost word of mouth
colleges such as Florida Gulf Coast University or Florida
promotions of Zehner & Associates. By finding two qualified marketing interns from local
Changes to the organizational chart include the addition of a highly qualified insurance
broker and two marketing interns. All of the brokers at Zehner & Associates have more than
two decades of experience and expertise in the industry and therefore finding a new
insurance broker that will fit the agencies values and company atmosphere will be hard to
find. Extensive recruiting and interviewing will have to occur in order to find a proper fit
amongst these top insurance brokers. The recommendation for two marketing interns are
for the implementation procedures necessary to handle social media updates and
maintenances so that insurance brokers do not have to worry about the social media
Distribution Strategy
o Reaching out to new clients who are visiting outside of the Ft. Myers area
o Expand brand awareness to local potential clients
Benefits:
Suggestion: Setting up a booth at a local mall and providing consultation for clients
seeking to purchase insurance
Associates plan to implement
introduce new services that Zehner &
o Easy way to advertise new broker or
business entrepreneurs
o Expand brand awareness to other local
Benefits:
meetings.
Suggestion: Setting up a table for Zehner & Associates at the local Master Networks
Zehner & Associates because of the type of products and services are not concerned as
much with their distribution strategy of the products as much as they are with the distribution
of their promotion strategies and word of mouth marketing. Distributing the company name
Zehner & Associates is vital to the company’s growth and financial success.
Organizational Chart
President: Scott Zehner
Insurance Broker: Margie
Tann
Marketing Intern
Marketing Intern
Additional Insurance
Broker
Marketing Plan - 12
Implementation PlanSummer 2015 – Winter 2015
Begin planning stages for implementing marketing program previously stated on
pages 17-21. This plan will require further research and analysis of financial
statement by Scott Zehner, President, to determine whether suggestions will prove
to be effective for Zehner & Associates.
Begin recruiting for additional broker to grow agency.
Hire two upper-class marketing interns through local business schools to revamp
social media pages.
Reach out to Florida Gulf Coast University and Florida Southwestern State College
to set up internship opportunities through the business schools.
Contact Miceli’s restaurant for gift certificates and discuss cash drawing.
Design a billboard to promote Zehner & Associates.
Determine strategies to implement consultation on direct insurance companies.
Determine strategies for multiple products discount and ensure feasibility.
Spring 2016 – Summer 2016
Continue recruiting for new insurance broker.
Attend MN events and network with local restaurant and promote among clients.
Create gift card drawing with Miceli’s and promote among clients as well as on
social media.
Implement billboard promotion near Edison mall.
Purchase new emergency info wallet cards to be handed out to clients.
Purchase batteries as well as pamphlet for home insurance and handout at local
community events.
Fall 2016 – Winter 2016
Hire new insurance broker.
Determine cash drawing winner for Miceli’s Restaurant gift card winner.
Hand out new business cards at networking events and to potential clients.
Marketing Plan - 13
Evaluation & Control
Keeping track of number of new clients once implementation processes begin will help
evaluate the success of the marketing strategies that will be implemented. Observing
number of Facebook likes and shares will provide a valuable tool that may be used for
evaluation of social media measures pursued by the company. Revenue generated must
also be closely observed to monitor success rates of the implemented marketing plan.
Clients may be asked how they feel about new promotional implementations the agency has
pursued to ensure clients are noticing the new changes and liking them. To truly evaluate
the outcomes of these new implementations a close analysis of financial statements must
occur.
Contact Information
Virginia Csillag
St. Bonaventure University – 2015
Professor: Dr. Mike Russell
(239) 677-6744
Marketing Plan - 14
Sources "Top Insurance Industry Issues in 2014." PWC. N.p., n.d. Web. 25 Apr. 2015.
<http://www.pwc.com/us/en/insurance/publications/top-insurance-industry-issues-
2014.jhtml>.
"2014 Insurance Industry Outlook Survey." KPMG. N.p., n.d. Web. 27 Apr. 2015.
<https://www.kpmg.com/us/en/topics/2014-outlook-surveys/pages/2014-insurance-industry-
outlook-survey.aspx>.
"2014 Insurance Market Outlook." Wells Fargo Insurance: n. pag. Print.
Marketing Plan - 15