Caresuper Company Brand Analysis - Case Study Example

Brand Analysis Project: Caresuper Company Name Professor Institution Course Date Brand analysis project: Caresuper Company Executive summary This report is well created to analyze brand strategies of Caresuper Company. In doing this, the report will cover sub topics such as marketing objectives, target market, general marketing, summarize the brand equity using CBBE model and make recommendations in terms of brief marketing project plan on how the company can execute the recommendations. The report will analyze company objective in terms of customer relationship and market share. The target market part discusses the traditional and new market segment. On general marketing strategies front, this paper will focus on expansion of product line, use of technology and target market among others. Last the report will discuss brand equity using which encompasses CBBE model and provide recommendation on how to implement the marketing plan. Table of Contents Brand analysis project: Caresuper Company 2 Executive summary 2 Table of Contents 3 1.0 Introduction 4 2.1 Marketing objectives 4 2.2 Target market 6 2.3 General marketing strategy 7 2.4 The role the brand plays, Brand positioning and value objectives 9 4.0 Brand equity and CBBE 10 5.0 Recommendations 13 6.0 Conclusion 14 7.0 References 15 1.0 Introduction The need to have a better life after retirement has led workers in Australia and beyond to seek for superannuation (Ivanov 2014). Companies offering superannuation services have also grown in numbers, prompting contemporary managers understand the importance of building strong brands. Companies which have not taken this heed, has been overtaken in terms of competition and market share. One of the strongest brands in Australia is Caresuper Company which has maintained this status since 1986 (Ivanov 2014). This is actually a culmination that it is built on a solid foundation. Competition has not only increased in terms of quality product offered in the market but also in terms. People want to leave institutions of learning get jobs and get income to improve their lives. After getting in the employment, many do not imagine of retirement after some age, therefore, do not care about life after retirement. It is the reason why Caresuper Company capitalized on the superannuation industry in Australia to enable employees to save for retirement. 2.1 Marketing objectives Caresuper Company has corporate objectives that will enable the organization to evaluate if the goals are achieved within the stipulated time just like the changes that have been made over the years to its product and services to make them more attractive to its customers. The SMART Objectives are outlined as follows: The company ranks 5th among 24 funds (Ivanov 2014). Caresuper Company aims at being rated as the largest and leasing super Superannuation fund organization in whole of Australia. Caresuper Company (2014) claims that it plans to do this by improving the experienced members get and also build great relationship with these members all through their lives as employees at during retirement. Good relationship with customers will ensure they gain competive advatage over other market players including AMP Limited, Westpac Banking Corp, PwC Australia, AustralianSuper and Commonwealth Bank of Australia among others (Ivanov 2014) The company intends to empower its registered members to realize a long-term financial goals and security. In so doing, they maximize their savings which they can benefit from during retirement. It intends to efficiently manage and control internal competence and outsource some of its packages to ensure service are delivered efficiently, competitively and cost-effectively (Caresuper Company 2014). Also, it aims at adopting higher governance standards. Ivanov (2014) claims that the organization aims at maintaining stable growth of 20 percent in the next five years, from 2014 through to 2018. Increase the company’s general market shares by 12% by 2015 (Caresuper Company 2014). To increase its brand awareness and differentiated positioning in Australia. To market its superannuation products and service across the globe by 2018. To raise the number of distribution channels in Australia by 15 percent so as to increase the number of services they offer by 2015 (Caresuper Company 2014) Targeting self-employed while providing them with low fees, ancillary products and competitive insurance to match their superannuation savings (Caresuper Company 2014) 2.2 Target market   Since its inception in 1986, Caresuper Company has been concentrating on Australia market. However, competition is increasing as many companies are joining the market to provide superannuation fund, hence Caresuper Company has been prompted to rethink their strategies of remaining relevant in the market (Collinson, 2004). One of the strategies is that they have been compelled to review is the target market. Caresuper Company (2014) claims that generally, the company has been targeting professionals who are engaged in administrative, managerial and service jobs. The company is now targeting the Middle East and eastern Asian which seems to have a high disposable income, particularly among the middle class. Countries like UAE, Qatar, Singapore and China have high disposable income, hence employees have the opportunity to save heavily for the retirement or for old age years (Jayaraman 2009, p.57). The consumers are not only employed, but also work on their businesses. Therefore, Caresuper Company targets class who run their own businesses. The opportunity they give to business owners will help them boost their businesses, even in their old age. Similarly, the company is also targeting self-employed Australians so as to boost their retirement benefits. Normally, self-employed people do not think of their retirement because they consider that they will have they business even in old age (Caresuper Company 2014). The reality is that, energy with which people perform in early years of their lives reduces tremendously. As such, performance of business drops and can even lead to closure. Caresuper Company is capitalizing on the opportunity to secure future for self-employed. In general, the company targets adults from the age 20 who have an income as their key customers (Caresuper Company 2014). 2.3 General marketing strategy As started earlier, competition has increased and managers need new and unique strategies to survive the competition. Ivanov (2014) posits that major funds in Australia and across the globe declined in the last five years, due to slow rate of growth witnessed following 2008 economic downtown. During the global economic downturn of 2008, some companies reduced employees’ salaries while laid-off some of their employees (Matanda & Ewing 2012, p.7). In the situation, most of the people reduced the rate of contribution towards superannuation while others had to stop. This has created competitive pressures on the companies to devise the exemplary reforms and strategies that will help them attract more customer hence increase in profits. The strategies devised include reducing operation costs, increase and improve the selected markets, create strategic partnerships, differentiation and better positioning and use of technology. The company has few employees, but effective on its payroll. In fact, the company only employees 30 staff (Ivanov 2014). The situation has helped the company a great deal to reduce the cost of operation during economic hardships and now. To increase its profits, Caresuper Company started focusing on new target markets and selected segments. The company is targeting the middle class in the Middle East, mainly in Qatar, UAE, China and Singapore who are regarded to have high disposable income. Miller & Coffin (2004, p.239) assert that people who have extra income tend to buy luxury products and also save retirement. In China alone, middle class population has increased to 300 million people (Jayaraman 2009, p.59). The company also targets self employed Australians unlike before when Caresuper Company used to specialize in employed people, mainly involved in administrative, managerial and service jobs. Caresuper Company also began getting into partnership with other companies during economic hardship of 2008 to increase its profits. It got into partnership with the MFS Global Equity Trust and Crowe Horwath to market and provide superannuation products on behalf of the company (Caresuper Company 2014). This will ensure that Caresuper Company increase brand awareness. In that way, the company will be able to grow its customer base which now stands at 196000 in Australia alone. A partnership will ensure their business reach new markets and block the competitor from capitalizing in the markets they already occupy (Kotler & Armstrong 2010). Brand strategists argue that brand awareness strengthens with proper marketing strategies. Keller (2013, p. 187) believes that marketing endeavors of building brand awareness is done so as to create the brand in the minds of the consumers. The company has increased in the product line over the years to be able to cater for the needs of many market segments and take advantage of these markets. Today, Caresuper Company offers its customers products in both investment and assets. In investment option, it has products like capital guaranteed, capital stable, sustainable balanced, conservative balanced, growth and alternative growth (Caresuper Company 2014). Similarly, in asset option, it offers products such as capital secure fixed, interest, direct property, overseas shares and Australian shares (Ivanov 2014). Increasing a product line is considered a significant expansion strategy for the organization which intends to enhance its revenue or share of the market. To shun losing customers to other market players having high performing products, Caresuper Company develops new products or upgrades their current products to compete effectively. Cateora & Graham (2007) contend that by developing new product, the company differentiates its products from the rest of market players. For instance, the majority of its product are different from those of competitors. According to Ivanov (2014), the company also positions itself as a biggest superannuation provider in Australia and helps it to stamp its presence and win the heart of its target markets. The company also has invested in technology to increase access to its services. In 2012, Caresuper Company launched Insurance Online (Ivanov 2014). This is a platform which enables its customers and even new one to apply for insurance covers on online technologies. The company uses both the Website and the social media such as Facebook and Twitter to inform their existing customers about their services and also to attract new customers. 2.4 The role the brand plays, Brand positioning and value objectives One condemnation of contemporary customer democracy is the existence of several brands. However, what the opponents fail to completely recognize is the critical roles which brands play in the current and consumer-focused economy (Keller 2013, p.75). One of such roles is that several products in the market give them the opportunity to choose from the options. However, branding your products makes them unique from the competitors. Just like any other stronger brands, Caresuper Company as a unique brand communicates strong message and information to its consumers and creates emotional impact that attract them. The company has unique products such as capital stable and capital secure fixed which differentiates it from the products of the competitors (Caresuper Company 2014). The brand also provides consumer protection since it is a company which minds it’s image and would not let to it be tainted. According to Ivanov (2014) the brand also positions itself as a biggest superannuation provider in Australia and helps it to stamp its presence and win the heart of its target markets. It also positions itself a as low fee superannuation fund company so as stand out from other competitors and differentiate itself from the competition. As a company that operates in one of the sectors which has been marred with dishonesty and ethical issues, Caresuper Company value objective aims at maintaining confidence, offering value, conform to ethics and be a trusted adviser (Caresuper Company 2014). 4.0 Brand equity and CBBE Caresuper Company has become one of the household names among Australian consumers (Caresuper Company 2014). The company created strong brand equity through effective marketing done in billboards, online, newspapers and magazines. Its marketing strategy has ensured that it has 196,000 loyal customers. Satisfying customers needs over the years, has enabled them to have positive perception and feeling towards its products. This has reduced the fears customers normally have towards retirement’s benefits in that most companies are not often honest with the exact benefits. Caresuper Company brand equity can further be analyzed through CBBE model. From the consumer point of view Keller (2013, p.352) describe brand equity as the differential impact which brand knowledge holds on consumer reaction to marketing of that particular brand. The CBBE model is used to analyze Caresuper Company because it is a brand that customers have learned, heard of now and in the past hence that aspect is likely to impact their perceptions (Kuhn, Alpert & Pope 2008, p.6). The company has made sure consumer learns about their product through marketing hence creates the products in their minds. CBBE model has four phases for creating a strong brand and which are used to assess the value of Caresuper Company in the minds of customers (Staisch 2007, p.32). These phases include brand identity, meaning, responses and relationships. Having 196,000 loyal members is a sign that Caresuper Company has a strong brand identity in Australia which has several market players. Caresuper Company (2014) argues that the company has created a strong brand through comprehensive marketing and creating superannuation products which satisfies customer needs. The company differentiates itself through name and logo, which is highly recognized by Australians. The company name itself “Care” suggests that it cares about workers during their retirement. Also the words “super” suggest that it deals with superannuation products. The name and the brand itself are highly identifiable with the market target which has been majorly the employees mainly involved in administrative, managerial and service jobs (Ivanov 2014). The brand is therefore likely to succeed in the future due to its name and target markets. The brand meaning implies to the meaning of products based on how it is communicated to the customers (Kuhn, Alpert & Pope 2008, p.5). The meaning is normally attributed by functional or abstract associations. While functional association is concerned with brand performance, abstract is concerned with image of the brand. Ivanov (2014) affirms that Caresuper Company has performed fairly high in terms of brand meaning. Their performance has been boosted by heavy investment in promotion about the product. The company posts their comparison of their products on their website to ensure consumers get the meaning before picking (Caresuper Company 2014). By doing over the website they ensure that everybody can access the information. According Kuhn, Alpert & Pope (2008, p.6) responses represent the reaction and assessment on the basis of arrangement of brand association recognized in the meaning. This is normally manifested after promotion. Also, customers who have used the services can be called upon to talk about their experience (Keller 2013, p. 352). Based on the number of people who are registered to this fund, it can be argued that it is of high quality and credible. Similarly, many of its consumers would argue that it is secure. The loyalty of the 196, 000 customers that subscribes to superannuation products is also a response that they believe that it will secure their future after retirement. According to Caresuper Company website (2014), it has won industry funds of the year in two consecutive years, 2013 and 2014. This award is organized by The Blue Ribbon Awards and more than one hundred companies are often surveyed (Caresuper Company 2014). The award is a positive response and a feeling which can help the company in terms of marketing and brand awareness. Furthermore, it communicates a message that Caresuper Company is a superior brand in the market. Relationships make up the last phase of CBBE model in which customer’s response is transformed to build an active loyalty (Kuhn, Alpert & Pope 2008, p.7). The phase is actually reflected in the company marketing objective which aims at building great relationships with members all through their lives in employment and after retirement. In a real sense, this is what the company has done over the years with the current loyal customers (Caresuper Company 2014). These phases are frequently represented within the six brand building blocks consisting of salience, imagery, performance, meaning, feelings, judgments and resonance (see the figure 1 below) (Keller 2013, p. 353). Figure 1: CBBE model Source: (Keller 2013, p. 353) 5.0 Recommendations The brand analysis of this superannuation fund company has revealed that Caresuper Company is outstanding and strong brand which holds considerable brand equity. However, the brand faces threat and opportunities which must be addressed to make it maintain or gain competitive advantage in the superannuation fund industry. Studies have demonstrated that low income and self employed people do not consider superannuation arrangements like to upper and middle employed class people do. However, the challenges faced by low income and self employed have made them to reconsider saving for future during old age. As such, the company should consider and put more effort on this market segment to increase its profits and even to dispel the brand association with the rich. Caresuper Company scrambles for a market share with close substitutes such like savings and investment and mortages offered by investment banks and national security funds offered by the government. Some of these funds are cheap compared to Caresuper Company superannuation fund such the national security funds; hence some middle class experiencing low disposable income may neglect Caresuper Company for other brands. Therefore, Caresuper Company ought to leverage its better value retention be able to compete with other brands which are outside its product category. Expansion of product lines has been a sign of growth to Caresuper Company and also a strategy to lock out competitors out of a market and take gain competitive advantage. Today, the company has developed several products with fewer differences. However, if this practice is not controlled, the some new products may cannibalize the existing ones leading a loss. Therefore, improving an existing will be more viable. 6.0 Conclusion Caresuper Company is currently enjoying the growth of superannuation industry due to its strong brand and wide market presence. The company has continued to use them to strength its market share over the years. However, the brand is now threatened with increased competition, cheap superannuation fund coming into the market, brand association with the rich people and close substitutes. There are several opportunities that Caresuper Company can still exploit comprising of trying to invest in successful and similar markets, and creating joint venture and partnership with established companies in new markets to increase brand awareness. 7.0 References Australian Government 2014, Superannuation and Retirement, Viewed in October 18 2012 from http://www.treasury.gov.au/Policy-Topics/SuperannuationAndRetirement Cateora, P. R & Graham, J. L 2007, International Marketing, New York, McGraw-Hill Irwin. Caresuper Company 2014, Caresuper Company Official Website, Viewed in October 18 2012 from http://www.caresuper.com.au/ Collinson, P 2004, Australia may hold key to pensions, The Guardian. Ivanov, 1 2014, IBISWorld Industry Report K6330 Superannuation Funds in Australia, IBISWorld, Viewed in October 18 2012 from http://www.ibisworld.com.au/industry/default.aspx?indid=523 Jayaraman, K 2009, Doing business in China: A risk analysis, Journal of Emerging Knowledge on Emerging Markets, Vol.1, No. 1, p.55-62. Keller, K 2013, Strategic Brand Management: Building, Measuring, and Managing Brand Equity, Pearson Education Limited. Kotler, P & Armstrong, G 2010, Principles of Marketing 13th Ed, Upper Saddle River, NJ, Prentice Hall. Kuhn, K, L., Alpert, F & Pope, L.K 2008, Pope an Application of Keller’s Brand Equity Model in a B2B Context, Griffith University, p.2-30. Matanda, T & Ewing, M 2012, The Process of Global Brand Strategy Development and Regional Implementation, International Journal of Research in Marketing, Vol.29, pp.5– 12. Miller, A & Coffin, J 2004, Measuring Marketing Effectiveness and Value: The Unisys Marketing Dashboard, Journal of Advertising Research Vol.44, pp. 237–243. Staisch, I 2007, A Brand Audit on the L’Oréal Brand, University of Stellenbosch, 1-94. Read More