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Amira Athimni Meriem Ben Yedder Mohamed Omar Elgindi Reem Nassar Rym Belhadj
-Marketing Strategy-
Executive Summary
The strategic opportunity is to be a standalone integrated distribution company that would house all of Lincolns wholesaling efforts Customers are the most critical C. LFG has to satisfy customer needs and wants if it wants to maximize its market penetration The Strategic alternatives are : Centralize distribution to its top management team. Aggregate the individual distribution channels under a single company Maintain the existing strategy
Our strategic alternative will be Aggregating the individual distribution channels under a single company, LFD.
Protano 8 Cs
Category
LFG is operating in the financial services category High attractiveness
High risk
Distribution channel members have a wide range of products available, thus, they will choose the best products to offer to their customers.
High risk
Fierce competition
Protano 8 Cs
Company
LFG was first a life insurer diversified financial services provider, through M&A.
Protano 8 Cs
Customer/Consumer/Center of influence:
Customers are the distributors of financial products and services B2B Banks, independent brokers, wirehouse dealers and MGAs.
LFG customers needs and wants: Eager for information about the products & services in order to sell it the right target customer educate themselves on these products by going online. To begin offering packages of financial products and services to their customers more coordinated approach
Protano 8 Cs
Competition Financial products and services manufacturers: LFG has over 10% ROE AXA financial = over 20% ROE Nationwide and American General= over 15% ROE
Since the category is attractive, and our performance based on the ROE is average LFG has to try harder and come up with a new strategy.
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Case questions
LFD concept
L FD is a great concept that will achieve the customer intimacy strategy chosen by Boscia. Change the negative view of LFG distribution, since MGAs are not happy with the compensation plan offered by LFG nor the the lack of coordination between the Lincoln manufacturing companies . The wholesaling quality was not the same in the different business units The new distribution structure is a good move in order to better organize distribution.
Case questions
The solution oriented sales is all about Best customer relationship, not all customers require the same level of service or will generate the same revenues LFG needs to empower its people to achieve it.
Case questions
If the number of LFG touch points increases customers loyalty toward LFG will increase too: all of the physical, communication and human interactions that the companys customers will experience over their relationship lifecycle with the company, will make them eager to have more LFGs products on their shelf.
Incentives are not permanent To be loyal customers need constant involvement from LFG.
The actual business units organization led to missed opportunities: Different quality of wholesaling No coordination between the different manufacturing companies A better coordination between the various product groups as among the MGAs better selling performance + customer satisfaction
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Case questions Reactions toward Boscias Decision If this is such a great idea, then why isnt there a single other company out there doing it If a competitor is already doing it why do we want to copy it? How will it differentiate us ? - Managers are afraid of losing control over the sales, and not being connected to the field to have feedback from its customers Boscia should have reassured its team about the coordination that will happen between LFG and LFD, and the continual feedback that they will have. The negative reactions led to hiring a consulting firm to better evaluate the idea a more specified strategy that will differentiate LFG from other competitors by giving them a unique benefit.
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Strategic Alternatives:
Increase Profitability Decrease costs Not innovative / Not creative
Increase Profitability Solution oriented sales Fits better with the customer intimacy model
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S.I.V.A Solution
Implement the solutionsoriented sales tactics. Offering product packages
Value
Focus on differentiating our products by: - Providing the best product services - Better quality - High reliability on the company from customers - Empowering MGAs improve the compensation plan.
Access
Improved accessibility to products - Availability of variety products - Faster response to customers' need -Build IS
Our strategy is to build customer Intimacy. Tactics which will translate the strategy as follow
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