Marketing strategy for a product/service case study; Sanlam/Santam Insurance
Abstract
This
paper is intend to analyze insurance as a product offer by Santam Insurance a
subsidiary of Sanlam a South African financial services group. In this paper we will look at a brief
background of the company and its products. The current marketing strategies of
Sanlam/Santam it objectives, target segments(s), value proposition and the
marketing mix implementation. Furthermore we will diagnose the current
marketing strategy and implementation. Finally we shall prescript solutions to
the short comings that will be found during our analysis of the current
marketing strategy and implementation.
Insurance
is a means of protection from financial loss. It is a form of risk management,
primarily used to hedge against the risk of a contingent or uncertain loss. The
insurance industry is divided into two categories; -Accident and health
companies are probably the most well-known, -Property and casualty companies
insure against accidents of non-physical harm (Brian, 2018). Satam insurance a
subsidiary of Salam finance is our case study, the case study will enable us to
analyze it current market strategy focusing on Africa where she recently
acquired one of Africa’s bigger insurers Saham Assurance. This gives Salam a
bigger global coverage of 41 countries with 33 from the African continent.
In December 1917, a small group of
Afrikaners and a Scotsman met in the Royal Hotel in Cape Town to discuss the
formation of a company which would later prove to have a major impact on South
Africa's economic history. The Suid-Afrikaanse Nasionale Trust en Assuransie
Maatskappij Beperk (South African National Trust and Assurance Company
Limited), Santam, was registered on 28 March 1918. Today, Sanlam is a
diversified financial services provider with an extensive product offering
catering for all market segments. The Group has consistently grown its local as
well as an international footprint (Sanlam, 2018).
Santam is a subsidiary of Sanlam who in
October 11, 2018 acquires 100% of the capital of Saham Finances; her
acquisition deepens Sanlam’s direct presence in 33 countries in Africa
stretching from the Cape to the Maghreb and East and West Africa and 41
globally, giving it unmatched access to the continent’s insurance market. Also
Sanlam is present in India, Malaysia, Philippines, the UK /Ireland, the US,
Switzerland and Australia (Sanlam, 2018).
Between 2010 and 2015, Santam invested
significantly in new technology enablers to assist the commercial and personal
business in realizing its strategy. An analysis of the benefits delivered by
these projects includes: − Optimizing the commercial lines contact centre’s
structures, processes and technology (an investment of R100 million) achieved
improved productivity through the reduction of headcount even though the volume
of transactions has increased by 21% since 2013. − Establishing a new
technology foundation and the optimization of online interaction channels for
employees, intermediaries and clients over a period of five years at a cost of
R95 million. The main benefit is reduced call volumes and the ability to
maintain service level agreements (SLAs).
In other for Sanlam to implement the Santam product’s current marketing strategy
Sanlam technically base its implementation on the 4 P’s of marketing Place,
price, product and promotion. In implementing the place or coverage in October
2018 acquire Saham insurance to expand its market to francophone Africa given a
Santam direct presence in 33 countries in Africa and 41 globally. Santam
tailored it prices to suit the African market that is why it has little or no
resistance from its clients on the cost of it insurance products while follow
strict regulations.
In the light of product Santam offers
benefits under short-term policies, which include engineering, guarantee,
liability, miscellaneous, motor, accident and health, property, transportation,
and crop policies, and contracts that could comprise a combination of various
insurance covers. The company also provides alternative risk transfer;
long-term insurance consisting of funeral policies; and cell captive facilities
through Centric Insurance.
Santam uses promotion techniques such as:
advertising, public relations, social media marketing, email marketing, search
engine marketing, video marketing and more. Each touch point is supported by a
well positioned product to truly maximize return on investment. Santam also
work with many service providers that offer exclusive discounts on services
that will improve the safety and security to its clients, their family and
possessions.
Looking at the Sanlam current product Santam
evaluation, the product’s current
marketing strategy and implementation is promising in the Africa market looking
at it coverage. The acquisition of Saham Finance expands it foot print to Sub
Saharan Africa and the Maghreb zone increasing it present in 41 countries in
total. The
Group has a direct stake in operations based in South Africa, Namibia,
Botswana, Swaziland, Zimbabwe, Mozambique, Mauritius, Malawi, Zambia, Tanzania,
Rwanda, Uganda, Kenya, Ghana, Nigeria, India, Malaysia and the United Kingdom
and has business interests in the USA, Australia, Burundi, Lesotho and the
Philippines. Following the acquisition of the SAHAM Finances Group, it has
exposure to insurance operations in Morocco, Angola, Algeria, Tunisia, Niger,
Mali, Senegal, Guinea, Burkina Faso, Cote D’Ivoire, Togo, Benin, Cameroon, Gabon,
Republic of the Congo, Madagascar, Lebanon and Saudi Arabia. (Saham Finanace,
2018).
Santam is South Africa’s leading general
insurer with a market share in excess of 22%. Listed on the Johannesburg Stock
Exchange (JSE), the Santam group provides a diversified range of general
insurance products and services in Southern Africa and internationally through
a network of 3600 intermediaries and direct channels. Now Sanlam taking over
Saham finance who in turn acquired Colina Insurance who was one of the leading
Life insurers in Africa is good business strategy for Sanlam/ Santam for the
future.
With this great vision and expansion Sanlam/Santam
has for Africa and the globe I have noticed for now one business difficult to
be face by their expansion and that is exploiting the African market to it
totality. It is true Africa has the fastest growing population and great
business opportunities, off course there is the need for insurance services,
the question is; at what price and cost looking at the realities doing business
in the African continent. The solution to this is for Santam/Sanlam dive very
quickly into micro insurance products for the African continent. The term
"micro insurance” typically refers to insurance services offered primarily
to clients with low income and limited access to mainstream insurance services
and other means of effectively coping with risk (Micro Insurance Network, n.d.).
To conclude, it is eminent that at 100
years of Satam/Salam existence it has emerged as a global brand as she has
grabbed a bigger share of the insurance marketing in Africa. This is through
the acquisition of Saham Assurance and working with more than 3600 service
companies in the provision of the services to the African continent and the
world at large. None there less developing a more tailored insurance product to
the African continent to meet up with the financial capacity of the African man
will be a plus to the growth of Satam/Salam.
References
Sanlam,
(October 29, 2018). About our history.
Retrieved from; https://www.sanlam.com/about/Pages/history.aspx
Saham
Finanace, (October11, 2018). All systems go for major Sanlam Emerging Markets
deal.
Micro Insurance
Network, (n.d.). Key concepts
Retrieved from; https://microinsurancenetwork.org/microinsurance/key-concepts
Brian,
B. (July 25, 2018). How does the insurance sector work? Investopedia.
Annexes
