STPanalysis

Division of Group Work
1、Introduction
The process of segmentation, targeting and positioning is central to effective strategic marketing. In order to select the most appropriate target market, it is necessary to understand different segments, the organization can give those wants. To determine the target market, the organization must consider how to position itself in the market. Try to communicate value proposition, target market, and enable customers to believe that the organization has a unique offer. In fact, positioning mode and communication can help the organization to establish competitive advantage.
S – Segmentation
●determine market segmentation factors
●describe segments feature
T -- Targeting
●evaluation of each market segment
●select the target market
P -- Positioning
●positioning for each market segment
●market positioning information dissemination
The cases of Taikang Life and Manulife-Sinochem are considered to be indicative of the emerging developments in Chinese insurance sector.( The traditional three insurance leaders are China Life，Ping An Insurance and Pacific Life).This study is based on a comparative analysis of segmentation, targeting and positioning between Taikang Life and Manulife-Sinochem.
According to the different angles of marketing contrast, we choose background, market orientation, segmentation approach, target marketing，positioning, market response, performance as the compared approaches of Taikang Life & Manulife-Sinochem. Then we gain some empirical findings to support the analysis conclusions.
2、Empirical Findings
TaiKang Life operated in November 1996. It takes the lead in using in the credit rating by international conventions. TaiKang Life obtained AAA credit-level in 2001. It means strong liquidity and minimal risk. TaiKang Life established the trinity risk management systems. According to the rules, it is full of provisioning. TaiKang Life has plenty of solvencies. TaiKang Life takes the lead in the standardization of the management, it adopted international standard for the first time. In 2004, the system of TaiKang Life passed the ISO9001:2000 certification. Manulife-Sinochem operated in November 1996. It is a joint venture company between Manulife Limited and China Foreign Economy and Trade Trust Company.
TaiKang Life takes the quality as the core. With the fast development of enterprise and market share, at the same time, it emphasizes on following the rules and develops step by step. TaiKang life thinks highly of preventing financial risks. Manulife-Sinochem`s pro-active approach to investing in people and technology ensures to provide the very best customer service and support to customers, agents and partners. It keeps on Customer-focused and professional management idea.
Referred to the segmentation, TaiKang life focused on people whose income was high. Also, they emphasize customer-oriented segmentation, especially in demographic. The segmentation is so simple that TaiKang life also enlarges it with customer’s psychographic and behavior. Manulife-Sinochem has similar segmentation to TaiKang life. But the difference is that Manulife-Sinochem concentrates on the middle class families rather than the high income people.
The two insurance companies also have difference in targeting approaches.
TaiKang life is targeting the female segment. At the same time, they keep a watchful eye on people who have steady income and response to their families. At the same time, TaiKang life also targets the net marketing. Manu-Sinochem cares more about the juvenile market. Also, they pay attention to something about public welfare. Though the targeting is not clear enough, they have more attraction.
TaiKang life has clearly positioning, the company realized a new crowd, the white-collar workers. Most of these white collars have received a good education, and they have more insurance consciousness and higher incomes. Taikang life believes the white-collars will be the largest customer groups of insurance products. So, Taikang life position itself as the professional provider of white-collars, it advocates young, healthy, fashionable and happy modern life view, modern consumption and family values of white-collar crowd. Taikang life also devotes itself to design products for family, not just for individual, it means that one family just need to buy one product. Manulife-Sinochem’s aim is to be the most professional insurance company, provide services to all people, and not focus on one certain crowd.
At present, as the fourth biggest life insurance company in China, Taikang life has won the trust of customers, and also won some prizes. But, the accomplishments the company achieved don’t reflect its characteristic. As a foreign insurance company, Manulife-Sinochem is more professional than Taikang life. However, in most Chinese people’s eye, Manulife-Sinochem is not the most professional company and also not the best choice to buy the products of foreign insurance company. Because AIA has won the hearts of Chinese, it is the leader of foreign insurance company in China. People prefer to believe AIA.
Resulting from the above discussion, TaiKang life seems to be performing better in some of services, such as the quality of consumer, excellent background of local enterprise etc, but not too huge advantage, whereas Manulife-Sinochem has held a big consumer group that is vast middle class. It is obvious that TaiKang life has already had a good progression in the past several years, and its share of the market has been expanding year by year. Although Manulife-Sinochem has segmented its market in middle class, its business performance has not been good enough; its growth rates are
too low.
Table：Comparing the Approaches of Taikang Life & Manulife-Sinochem
(Summary of mpirical findings)
3、Conclusion
With a credit-level of AAA, which means strong liquidity and minimal risk, Taikang Life is always to provide high quality insurance service to the increasingly white-collars crowd. It keeps a watchful eye on people who have steady income and response to their families. At the same time, TaiKang life is targeting the female segment.
From the analysis above, Taikang Life seems to be better for some services, such as the quality of consumer, a good background of local businesses, while the Manulife-Sinochem holds a huge consumer group that is the vast number of middle class. It continues to take the customer as the center and the professional business philosophy. At the same time, Manulife-Sinochem pays more attention to the teenager market and the public welfare.
Although Manulife-Sinochem has made the market segmentation of the middle class, it is more obvious that Taikang has made a better progress on the market share in the past years.。