The paper "Marketing of Pure General Insurance Company" is a perfect example of a case study on marketing. The PGI Company has long been facing hurdles in terms of its competitors, however, it boasts of a very huge strength in terms of being very strong in motor insurance. The situational analysis of this company reveals the company’ s strengths and weaknesses and examines the potential threats and opportunities it faces by venturing into a new insurance category, house insurance. Interviews of potential customers have also been taken into regard to analyzing the situation in a better way. The business was a joint venture between Andy Purrfect and Bill Reeves.
This company came into being when Bill’ s wife, being a member of a club, asked for motor insurance and earnings by sharing a percentage of the commission. The company boasts delivering only motor insurance to the citizens of the United Kingdom. The company saw ups and downs when the introduction of Direct Line came crashing into the market and took over it by storm. Their idea was the introduction of a direct insurance concept where the role of a broker was cut short and people could directly go to the insurance companies and make the cheapest deal.
This idea was propagated throughout Europe and accepted by all. The company has been able to maintain its position even through these turbulent times and sustain its market. However, they are now thinking of market penetration and adapting a diversification strategy by venturing into house insurance. SITUATIONAL ANALYSIS The company’ s situational analysis has been of prime importance because it is recommended to carry out one when venturing into a new market or diversifying in the old one only. Customer audit Customers today have become clever due to constant exposure to the information that is available around the world.
They have become intelligent and they never settle for less. They want the best and in search of the best, they can spend an enormous amount of time till they get what they want. In terms of customers, one takes two things into consideration. First is if the customer is buying the product for the first time. The second is the condition when a renewal of service or repurchase of product is taking place.
Customers take different considerations before buying a certain product for the first time or for the second time. Survey research shows that customers give more importance to the price the most when they are buying products for the first time. Reputation plays an important role too as customers are willing to pay more for a product known for its quality rather than one which is not known for its compatibility. When it comes to buying to a product they have already brought before or have had any experience with, their considerations change a bit.
Service issues top this list which means that the customers feel comfortable with the service of the product. Next comes the price which means in both cases, price always stays the driving factor for customers.