Essays on Marketing Strategy Recommendations - Medibank Insurance Company Case Study

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The paper "Marketing Strategy Recommendations - Medibank Insurance Company " is an outstanding example of a marketing case study. Travel insurance has gained increased popularity based on the increased number of people willing to travel safely. The Australia travel insurance market is shared by both government-owned and private companies. Australia’ s travel market has grown tremendously over the past five years in terms of product development, revenues, and the number of consumers. Moreover, the number of global travelers has also increased by about 8.8% annually in the past five years.

The travel insurance market is expected to grow constantly in terms of revenues, products, and consumer base. Medibank Insurance Company is the biggest private insurance company in Australia. It has about 340 million customers with insurance policies, which is about a third of the insurance market share in the private sector. Medibank also offers travel insurance and basically provides global insurance for travel in terms of health incidents, termination of trips, baggage loss, and delay in trips. The main insurance covers offered include a comprehensive cover for foreign travel, health insurance for international trips, multi-trip annual cover for domestic travel. In terms of the market environment, Medibank operates is an environment that requires increases collaboration and relationships with intermediaries such as suppliers and travel companies.

Moreover, the company also operates in a highly competitive market with its main competitors being AAMI and BUPA. The travel insurance market is influenced by numerous factors including demographics and economic aspect of consumer spending and earning. Medibank has not segmented its travel products effectively to meet rising consumer needs especially for low-income earners such as students. Overall, the company requires a robust marketing strategy to re-launch their travel insurance products and meet customer needs.

The main focus on the company should be towards developing different products that are likely to attract new consumer’ s, especially low-income earners. The product, market, and marketing analysis of Medibank is an effective way of understanding the numerous issues that need to be enhanced to0 compete effectively in the marketplace. The analysis illustrates the current travel insurance environment and how products can be designed to meet specific customer needs as well as business goals.

The following report aims at developing numerous marketing recommendations for Medibank in terms of travel insurance. The report will focus on products and services, pricing, place and distribution, and promotional mix strategies. The overall aim is developing specific strategies for Medibank to re-launch its travel insurance and take the necessary steps to ensure it reaches customers and meets their needs. Products and Services Travel insurance is becoming more necessary than previously thought (SHEEDY, 2016, p. 18). This is because travellers bear the largest risks when travelling, which is evident given the sale of non-refundable tickets among other examples.

Therefore, there is an ever-increasing demand for travel insurance. Travel insurance is both a product and a service. In terms of service, travel insurance enables people to be able to mitigate the risks of any or specific incidences while travelling. The most common service characteristic is ensuring that travellers can make claims especially when trips are cancelled or delayed. Medibank should adopt a travel insurance policy that enables customers to get 100% of their refund when trips are cancelled. Moreover, there are numerous issues that are proving challenging for travellers.

For instance, some people may choose to cancel their trips for numerous reasons resulting in loss of their tickets or fare. To enhance such scenarios, Medibank should adopt a “ cancel for any reason policy” , which means that customers are free to cancel their trips and make claims for refunds or settlements (Phillimore, 2015, p. 1). Moreover, travel insurance should also include the ability to recover costs when trips are interrupted. In terms of service, there is an increased need to provide all-round support and assistance.

This includes the manner in which customers can make claims and get their refunds. Additionally, there is an increased need to provide effective means of support including travels tips, medical support and evacuation, as well as baggage recovery. Therefore, Medibank should partner with other businesses who should act as intermediaries for ensuring that customers receive their services. Travel insurance cannot work without such services, thus the need to develop good relationships with other businesses to support insurance delivery.

References

Dumm, RE, & Hoyt, RE 2003, 'Insurance Distribution Channels: Markets in Transition', Journal of Insurance Regulation, vol. 22, no. 1, pp. 27-47.

Eddy, K 2015, 'An Older Australia', Journal of the Australian & New Zealand Institute of Insurance & Finance, vol. 38, no. 2, pp. 1-4

Emms, P, Haberman, S, & Savoulli, I 2007, 'Optimal strategies for pricing general insurance', Insurance Mathematics and Economics, vol. 40, pp. 15-34.

EYAL, O, & GARD, J 2016, 'THE SIX STEPS TO PRICING POWER IN INSURANCE', FICCI Studies & Surveys, p. 49.

Hughes, K, Wang, J, & Shu, M 2015, 'Exploring the travel patterns, preferences and recommendations of Chinese university students living in Australia', Journal of Hospitality and Tourism Management, vol. 23, pp. 12-22.

Kitchen, PJ, Patti, CH, & Schultz, D 2011, The Evolution of Integrated Marketing Communications : The Customer-driven Marketplace, Routledge, London.

Percy, L 2014, Strategic Integrated Marketing Communications, 2nd ed, Routledge, Hoboken.

Phillimore, N 2015, 'Shades of Grey', Journal of the Australian & New Zealand Institute of Insurance & Finance, vol. 38, no. 4, pp. 1-2.

SHEEDY, RL 2016, 'Insuring a Trip In Uncertain Times', Kiplinger's Retirement Report, vol. 23, no. 5, p. 18.

Trigo-Gamarra, L 2008, 'Reasons for the Coexistence of Different Distribution Channels: An Empirical Test for the German Insurance Market', Geneva Papers on Risk & Insurance - Issues & Practice, vol. 33, no. 3, pp. 389-407.

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