AEGON GROUP, U.K.

I N S U R A N C E & P E N S I O N C O M PA N Y

FACTS
Industry : Insurance & financial services Founded : 1831 as Scottish Equitable. Headquarters : Edinburgh, Scotland. Area served : 20 countries. Revenue: 30,000 million (ended 2012) Services : INVESTMENTS

PROTECTION

FACTS
Employees: 27000 Customers: 40 million. Part of AEGON Group, a multinational life insurance, pensions and asset management company, Netherlands Till 1994, its major markets were in the USA and Netherlands. Since 1994, the UK has become another major and increasingly important market and hence, in 1994 AEGON bought a large stake in Scottish Equitable. Scottish Equitable was a strong brand with a heritage that went back to the 1830s and was famous among customers. AEGON has also acquired many other businesses in UK.

FACTS
As most of the acquired companies kept their existing identities, awareness of AEGON in the UK remained relatively low. The other AEGON businesses in UK includedi. Kames Capital . ii. Positive Solutions. iii. Origen. iv. Stonebridge International Insurance Ltd. v. AEGON Global Pensions. AEGON realised that such low levels of awareness could impact on its ability to achieve its ambitions. Therefore, it needed to combine the global strength of its parent with the experience and reputation of the domestic company brands, like Scottish Equitable, that made up AEGON in the UK.

FACTS
Due to better medical facilities, UKs lifestyle and life expectancy were changing.

PROBLEM 1
Inability to choose the correct required financial solutions Thinking ahead and saving for retirement is a concept that is most of the times difficult for people to understand and people do not always feel equipped to choose between the range of financial products and services and are not sure where to seek support and advice.

PROBLEM 2
Increased life expectancy of UK people It has risen in recent years so people can expect to be retired for longer. There is also a drive by the UK government to reduce dependency on the State in old age.

PROBLEM 3
Mis-selling financial products. AEGON, UK have been accused of 'mis-selling' by not providing consumers with the best product for their needs.

PROBLEM 4
Falling Stock Exchange values. The falling values on the Stock Exchange have affected the investment return on some products, such as mortgage endowments and the government-imposed price controls had reduced profitability.

PROBLEM 5
Competition
AEGON is in competition with organisations which sell directly to consumers and which are better known in the UK. AEGON distributes its products and services to customers mainly through financial advisers.

PROBLEM 6
Many trading names
As AEGON traded under a number of brand names it was not always easy for financial advisers and consumers to recognise the breadth and depth of the company in the UK. AEGON, as a reputable company, has had to address and overcome these industry-wide problems to remain competitive.

SOLUTION 1
BRAND STRATEGY

To solve the confusion among customers, about the existence of AEGON in UK and its services, as it traded under a number of different company brands, BRAND STRATEGY is suggested. The brand strategy helped to reposition the brand within the industry. All the brands now carry a new common look which is refreshing and different.

SOLUTION 2
PROMOTIONAL STRATEGY
External promotional campaigns will help to reinforce the local knowledge and the global power of AEGON in the UK. A partnership with British Tennis to help increase awareness of the AEGON brand with the target consumers in the UK

SOLUTION 3
Need for the change in strategy of operations

This means building a responsive organisation to the needful change and competition

SOLUTION 4
MANAGEMENT DEVELOPMENT PROGRAMME
To simplify financial services and provide more customer focus. Think customer- ensuring that the customer's needs are at the heart of business, informing actions, decisions and behaviours'. Other managers and professionals are encouraged to 'innovate with your customers in mind'. This will prevent from miscalculation in selling financial services.

SOLUTION 5
Skilled and trained sales staff
To develop the workforce which can relate and communicate adequately with the customers, explaining them the accurate financial advice. The objective will help to develop the skills needed within the business to help it change. The emphasis is on making information clearer for the customer to understand and the company easier to do business with.

CONCLUSION
Change is continuous. The process of change is a journey. External factors will always be there to influence business organisations. AEGON responded to these factors by simplifying, clarifying and strengthening its brand in the UK. As organisations change, their patterns of behaviour and business culture develop. For AEGON, this is a cycle in which the business uses its knowledge to learn from its experiences. This has helped AEGON as an organisation to move positively towards achieving its full potential and to remain competitive in an increasingly difficult market.

Thank You!!