AIG Marketing Mix (4Ps) & Marketing Strategy
Marketing strategy of AIG through marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion).
AIG Product Strategy:
AIG is a leading insurance company spread across 130 countries. In United States AIG is the largest underwriter of commercial and industrial insurance. The product portfolio in its marketing mix includes property casualty insurance, life insurance, retirement products, mortgage insurance and other financial services. AIG offers insurance plans to cover travellers worldwide that includes coverage for valuables, trip cancellations, medical expenses and emergency travel services. Other products are included in the category of Private client group, cyber insurance and commercial insurance. A global aerospace insurance market leader for over 65 years and they have 10,000 commercial claims professionals throughout the world with a highly experienced aviation underwriting and claims team. AIG uses Client Centric Analytics, which pinpoint loss drivers, improve safety, and ultimately improve a client’s risk profile. AIG also offer credit and political risk insurance which is designed through flexible and cost effective trade credit design to ensure steady cash flow and mitigate risk of non-payment by key customers.
Image: company website
This concludes the product strategy in AIG marketing mix & strategy.
AIG Price/Pricing Strategy:
Below is the pricing strategy in AIG marketing mix strategy:
AIG has a diverse portfolio and hence a wide pricing range. The various pricing decisions are taken based on several factors which include cost effectiveness, prioritizing profit generating investments, optimising social costs and assigning weightage to policies to maximise profit.
AIG’s aerospace insurance is charged premium since a lot of risk is involved and damage compensation is high. When developing pricing strategies AIG takes into consideration the cost of rate of death, rate of interest & the expenses incurred on the insurance business. AIG focuses on addressing transparency in the pricing in its marketing mix and no hidden costs are levied onto the customer.
AIG Place & Distribution Strategy:
Following is the distribution strategy in the AIG marketing mix:
AIG forms a global network that spans across 200 countries and jurisdictions which includes AIG affiliate insurers and third party Network Partner insurers. Its corporate headquarters are in New York City, USA and its Middle East, Europe, and Africa headquarters are in London, and the Asian headquarter is in Hong Kong. The distribution of AIG’s products is carried out through various channels – direct and indirect with the insurance agent being the important channel member unit. Physical distribution of the service products that involves funds and support at right time and place is an important factor in the policy distribution decision.
Accident and Health products distributed through numerous channels, which including agents, brokers, affinity partners, airlines and travel agents.
AIG Promotion & Advertising Strategy:
The promotional and advertising strategy in the AIG marketing mix is as follows:
AIG sponsors sporting events like Rugby and organizations such as USA Rugby, the Japanese Rugby Federation, and programs like Rookie Rugby and Rugby in a Box. American International Group has also been the global sponsor and official insurance partner of New Zealand Rugby and the legendary All Blacks. AIG logo appeared on the shirts of Manchester United football team as part of their 4 year deal for sponsorship. Advertisements can be seen on Television, print media, billboards through various marketing campaigns. AIG has its dedicated website where all the service offering information about each and every product is mentioned. It carefully choses the mode of promotion considering the target customer to reach and has been utilising the social media marketing strategy extensively to promote its products. The word of mouth publicity of AIG has played an important role in convincing customers and due to its popular brand name it has attracted several customers.
Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of AIG.
People:
AIG hires its employees who has knowledge of computers microcomputers, fax machines, sophisticated telephonic service, e-mailing and intra-net service. The front-line-staff as well as the managers are given the training facilities so that they in position to make possible an effective use of the technologies. The AIG employees are well aware of the behavioural management, and they understand the changing level of expectations of users & make sincere efforts to fulfil the same.
Physical Evidence:
Signage personifies the AIG insurance company and It gives an identity by which users recognize the company. Its quality and transparent policies has made AIG one of the quality choices for customers to choose the insurance policy. American International Group have sponsored major football team like Manchester United hence it creates an impression among the customers that the company can be trusted when filling for claims and will not default them.
Process:
AIG has several processes and frameworks which ensure high efficiency in work and deliverables. The process adopted is customer friendly, thereby streamlining the claim process. The processing method is easy and convenient to customers and it serves large number of customers efficiently thereby bringing down the overheads. AIG is known for transparent policy making decisions and they have leveraged upon the trust shown by the customers. Hence, the marketing mix of AIG is completed.
About AIG:
AIG abbreviated as American International Group, Inc. is a multinational insurance corporation and has its presence in 130 countries. It operates through 3 businesses AIG Property Casualty, AIG Life and Retirement, and United Guaranty Corporation (UGC). AIG provides insurance products for institutional, commercial and individual customers. Cornelius Vander Starr was the founder of American International Group. AIG provides financial services in global capital market operations that involves retained interests and direct investment. It was a central player in the 2008 financial crisis where it was bailed out by the federal government for $180 billion and it was under government control. Its corporate headquarters are in New York City, USA and its Middle East, Europe, and Africa headquarters are in London, and the Asian headquarter is in Hong Kong.
AIG had a market capitalization of $75. AIG is the largest underwriter of commercial and industrial insurance in the United States.
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