China Life Insurance Marketing Mix (4Ps) & Marketing Strategy
Marketing strategy of China Life Insurance through marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion).
China Life Insurance Product Strategy:
China Life Insurance Company offers an extensive range of products to its customers. It sells both individual life insurance and group life insurance. Individual Life Insurance- Under this, there are six different types of insurance available:
• Health Insurance which covers consumers medical claims
• Accident Insurance which covers loss caused to customers due to any accident
• Juvenile Insurance which provides financial support to children below 18 years of age for their marriage and education
• Term Insurance is most suitable for people in low-income groups. It helps customers to ease the consequences of death and disability
• Investment Insurance offers basic life insurance facilities but also allows customers to share their dividends of China Life
• Endowment Insurance is specially designed to benefit the aging people post their retirement
Group Life Insurance- It provides insurance to companies’ employees on matters such as health and medical claim, loans, construction works risk avoidance, etc.
According to the level of risk coverage, the products offered by China Life Insurance can be categorized into two categories:
• Investment type products which include endowment insurance which provides dividends to the customers at maturity
• Risk type products which include products like health insurance and accident insurance that aims to control the damage caused by unforeseen situations
Based on execution time, the products offered by China Life Insurance can be categorized as:
• Short-term Insurance relates to products that have execution time of less than one year and includes short-term health insurance and accident insurance for both individuals and group insurance structure
• Long-term Insurance relates to products that have execution time of more than a year and includes life insurance which covers the entire duration of a person’s life
According to money return policy, life insurance can be categorized into two groups:
• Participating Insurance wherein customers are entitled to the dividends of the company base on the profit gained in the financial year
• Non-participating Insurance wherein the customers are not guaranteed a fix term payment after their death
Image: Wikimedia
This concludes the product strategy in China Life Insurance marketing mix & strategy.
China Life Insurance Price/Pricing Strategy:
Below is the pricing strategy in China Life Insurance marketing mix strategy:
China Life Insurance Company offers different prices for different products. Investment type insurance is designed for people who have enough money for investment, and thus these products are charged a high rate.
Health Insurance caters to the needs and requirements of families belonging to middle-income groups, and therefore they are charged at a rate suitable for them. Specific insurance such as accident insurance is designed for people who have low incomes and prefer lightening damages from death or injury, so these products are priced at comparatively lower rates. To conclude, prices are charged differently for different products based on the particular target market for the product. Moreover, each insurance product has different payment terms, and these terms are mostly flexible. Customers can choose whether they want to make monthly or yearly payments.
Read more about China Life Insurance
China Life Insurance Place & Distribution Strategy:
Following is the distribution strategy in the China Life Insurance marketing mix:
China Life insurance has a strong presence across destinations in China.
Products are delivered to customers by three major platforms:
• Filed officers and agents who are direct sales representative of the company
• Internet that is through their websites (www.e-chinalife.com)
• Bancassurance intermediaries that refer to the cooperated insurance selling banks and other similar financial institutions
China Life Insurance Promotion & Advertising Strategy:
The promotional and advertising strategy in the China Life Insurance marketing mix is as follows:
To enhance its sales, China Life Insurance combine sits marketing strategy and channel strategy together to boost market demand and improve its sales channel accessibility. For instance, China Life insurance plans events to make customers familiar with its products. The personal selling of trustworthy consumers made this company a brand. The promotion is done on digital platforms also through Youtube ads, facebook page, e-commerce site, etc. It supervises sales outcomes to build a good relationship with its team members and motivates sales agents to encourage sales. Its visibility on the digital platforms is doing quite well for the company.
Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of China Life insurance.
People:
There are two types of people involved in any service types of Industry. In this case, the types of people are the employees and the customers. The Priority for China Life insurance has always been the customers, and it has maintained the standard to provide world-class services to its customers. The employees are the way to connect with the customers and get the work done. SO, the employees also play a vital role.It has around 600,000 agents working day in and day out to satisfy the customers worldwide.It always recruits staffs and employees by their knowledge and experience and molds them according to the company guidelines by giving proper training sessions, workshops, and seminars. Customers are the sole reason for the existence of any banks.
Process:
As every service of an insurance company has shifted online, the customers can access the offer from anywhere at any point in time. The mobile application for all the mobile devices has a sophisticated process for all the services offered by the bank be its account information, be it investment services, be it request for demand draft and many more. The China Life insurance website also gives an idea about that how the company works, if a customer wants to purchase any service, how it can be approached and achieved, the procedure is given on the website as well as on the mobile application. There are around 0.6 million agents working to fulfill the needs of the customers.
Physical Evidence:
The ambience and interiors of the office are very well balanced. The customers can have a pleasant atmosphere in the office. Every area is guided by the sign mark so that the customers can quickly go wherever he/she wants to go to avail the service at the company’s office. The website also gives an idea about that how the company works. The employees are also well dressed and groomed to provide the customers an excellent visual satisfaction to the customers. The employees are known as agents in the company, and they work on their toes to guide the customers. This concludes the marketing mix of China Life insurance.
About China Life Insurance Company:
China Life insurance is a Beijing based life insurance company. The predecessor of the China life insurance company, PICC was founded in 1949. Later in 1966 PICC (Life) was set up after its separation from PICC. In 1999, it was renamed as China Life Insurance Company. With 70% of its shares with the government, it is the largest state-owned life insurance company in China.
It has been listed among Fortune Global 500 Companies for 15 consecutive years. Currently, the group has China Life Insurance Company Limited, China Life Property and Casualty Insurance Company Limited, China Life E-commerce Company Limited, China Life Investment Holding Company Limited, China Life Insurance (Overseas) and Insurance Professional College as its subsidiaries.
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