Solutions to improve marketing activities of manulife Vietnam from 2007 to 2010

MASTER IN MANAGEMENT PROGRAM (MMVCFB6) COMMITMENT I would like to confirm this thesis is my own research All data and information mentioned in this thesis is honest. N N g g u u y y e e n n X X u u a a n n C C h h i i n n h h ACKNOWLEDGEMENTS After graduated from the Economic University of Ho Chi Minh city, I have passed five years of working in several companies, some of them are very famous like Ajinomoto Inc. with Japanese management style, Manulife Vietnam – a western company bearing active authorization and MBO management style… and one of them is not famous but very dynamic and flexible like H&M – a new private local enterprise. I have learned from company managers the way they lead their team, their company to meet goals. I heard several complaints and discovered some disappointed emotions they received from their staffs. But I did not know how the manager can do it well in handling job management, harmonizing conflicts and benefits as well, creating strategy for the company, selecting and processing from a hundred bundles of information to make right decisions…To get the answer for this question, I decided to take an advance study. The Master of Management (MMVCFB6) is very suitable and the most efficiency course that can help me to understand and to improve knowledge, skill of management. After two years, the course is ending soon, and I am writing the thesis. I have learned a lot during my study course from many people and received great helps from them. Firstly, I would like to thank to all Professors of the Course for their instruction on all the newest and the deepest knowledge and experience to us. Secondly, I would like to express my sincere thanks to Professor Le Tan Buu – The Head of Commercial-Tourist Department of the Economic University of Ho Chi Minh city who directly gave me advices to make the research and final thesis. The thesis discusses about marketing activities of Manulife Vietnam company. I have also received many ideas contributing from my colleagues in Marketing department, Sales managers and many agents. I would like to send my thanks to them as well for I will never finish the thesis without their assistances. Thank to Board of Management who gave me a chance to interview them and helped me with many advices during the time I have worked with the company. Last but not least, I would like to send thanks to my classmates, especially to my Group-One members for their sharing knowledge, experiences, discussions that help me to build up my mind. Working with them in class assignments is a chance for me to polish myself in the team. N N g g u u y y e e n n X X u u a a n n C C h h i i n n h h S S t t u u d d e e n n t t o o f f t t h h e e M M M M V V F F F F B B 6 6 2 2 0 0 0 0 5 5 - - 2 2 0 0 0 0 7 7 GUIDANCE ADVISER’S COMMENTS The topic of research is highly concerned by Vietnam life insurance companies, especially to Manulife Vietnam situation. The thesis's structure is logical, and well established. The content is comprehensive, clear and abundant in figures and facts. The Market analysis is marvelous based on the market survey, face- to-face interview and focus group showing the hard working of student Nguyen Xuan Chinh. The solutions for improving marketing activities in the company are highly practical. I hereby agree to let the student present this thesis to the Board of Examiners. D D o o c c t t o o r r L L e e T T a a n n B B u u u u D D e e a a n n o o f f F F a a c c u u l l t t y y o o f f C C o o m m m m e e r r c c e e a a n n d d T T o o u u r r i i s s m m U U n n i i v v e e r r s s i i t t y y o o f f E E c c o o n n o o m m i i c c s s H H o o C C h h i i M M i i n n h h C C i i t t y y i TABLE OF CONTENTS LIST OF TABLES VIII LIST OF FIGURES IX LIST OF GRAPHS X CHAPTER 1 1 INTRODUCTION 1 1.1. INTRODUTION 1 1.2. OBJECTIVES AND SCOPE OF THE STUDY 2 1.3. METHODOLOGY 2 1.4. STRUCTURE OF STUDY 4 CHAPTER 2 5 LITERATURE REVIEW 5 2.1. THEORY OF MARKETING AND MODERN MARKETING 5 2.1.1. Definition of marketing 5 2.1.2. Vision of marketing 6 2.1.3. Marketing concept 6 2.1.4. Marketing Process 7 2.1.4.1. Understanding behaviors and motivations 9 2.1.4.2. Segmenting markets 10 2.4.2.3. Choosing the targets 13 2.1.5. Marketing Mix 14 2.1.6. Global Marketing Management 15 2.1.7. Roles of marketing to an enterprise activities 18 2.1.8. Content of marketing activities of a life insurance company 19 2.1.9. Factors effect to Marketing activities of a life insurance company 20 2.1.9.1. Internal factor. 20 2.1.9.2. External factor. 21 2.2. LIFE INSURANCE INDUSTRY 23 2.2.1. Roles of life insurance in an economy 23 2.2.2. Vietnam life insurance business 24 CHAPTER 3 26 MANULIFE VIET NAM - MARKETING ANALISYS 26 3.1. HISTORY, VISION, MISSION, ENVIRONMENT, ORGANIZATION AND OPERATION 26 3.1.1. History of the company 26 3.1.2. Manulife Vietnam Vision and Values 28 3.1.3. Business Environment 29 3.1.3.1. Suppliers 30 3.1.3.2. Competitors 31 3.1.3.3. Customers 32 Style Definition: TOC 1: Tabs: 6.1", Right,Leader: … Style Definition: TOC 2: Tabs: 0.67", Left + 6.1", Right,Leader: … Style Definition: TOC 3: Tabs: 0.88", Left + 6.1", Right,Leader: … Formatted: Left: 1.38", Right: 0.79", Top: 1.38", Bottom: 1.18" Formatted: Font: 16 pt, Bold, Font color: Blue Formatted: Font: VNI-Times Deleted: 16 Deleted: 15 Deleted: 21 Deleted: 20 Deleted: 21 Deleted: 20 Deleted: 22 Deleted: 21 Deleted: 25 Deleted: 23 Deleted: 25 Deleted: 23 Deleted: 25 Deleted: 24 Deleted: 28 Deleted: 26 Deleted: 28 Deleted: 26 Deleted: 28 Deleted: 26 Deleted: 28 Deleted: 26 Deleted: 30 Deleted: 28 Deleted: 31 Deleted: 29 Deleted: 32 Deleted: 30 Deleted: 34 Deleted: 31 Deleted: 35 Deleted: 32 ii 3.1.3.4. Partners 33 3.1.3.5. Regulatory Agencies 33 3.1.4. Organization and Operations 34 3.1.4.1 Organisation 34 3.1.4.2 Procedure of Operation of Manulife Vietnam 39 3.1.4.3 Operation indication of manulife Vietnam from 2000 to 2006 40 3.2. MARKET SURVEY ANNALISYS 40 3.2.1. General market situation analysis from the survey 40 3.2.2. Reason of client not having an life insurance contracts 43 3.2.3. Reasons to terminate contract before due date (lapsed and surrendered policies) 44 3.2.4. Factors to make a buying decision 44 3.2.5. Resistance to have a life insurance contract 46 3.2.6. Key factors when selecting a right service 46 3.2.7. Favorite benefits of life insurance service 47 3.2.8. Who should have an insurance contract 49 3.2.9. Life insurance and other investment vehicles 51 3.2.10. The company images 52 3.2.11. Potential clients 53 3.2.12. Income – Life insurance 54 3.2.13. Draft of future market shares of life insurance 55 3.3. MARKETING ACTIVITIES ANALYSIS OF MANULIFE VIETNAM 56 3.3.1. Human resource of Marketing department 56 3.3.2. Market research and analysis 57 3.3.3. Public relation activities 57 3.3.4. Sales support 58 3.3.5. Sale promotion and advertising 58 3.4. SWOT 59 3.4.1. Strengths 59 3.4.2. Weaknesses 60 3.4.3. Opportunities 60 3.4.4. Threats 61 3.5. MARKET SHARE ANALISYS 62 3.5.1. Market Share by collection premium (Revenue) 62 3.5.2. Share by distribution channel (Number of agents) 63 3.5.3. Market Share by new contracts 64 3.5.4. Productivity of agents 65 CHAPTER 4 66 SOME SOLUTIONS TO ENHANCE MARKETING ACTIVITIES 66 IN MANULIFE VIETNAM 66 4.1. MARKETING OBJECTIVES FROM 2007 TO 2010 66 4.2. SOLUTIONS TO MEET OBJECTIVES 66 4.2.1. Building up a marketing department with necessary functions 66 4.2.2. Market segmentation 68 4.2.2.1. Segmentation by sex 68 Deleted: 36 Deleted: 33 Deleted: 36 Deleted: 33 Deleted: 37 Deleted: 34 Deleted: 37 Deleted: 34 Deleted: 41 Deleted: 38 Deleted: 42 Deleted: 39 Deleted: 42 Deleted: 39 Deleted: 42 Deleted: 39 Deleted: 45 Deleted: 42 Deleted: 46 Deleted: 43 Deleted: 46 Deleted: 43 Deleted: 48 Deleted: 45 Deleted: 48 Deleted: 45 Deleted: 49 Deleted: 46 Deleted: 51 Deleted: 48 Deleted: 53 Deleted: 50 Deleted: 54 Deleted: 51 Deleted: 55 Deleted: 52 Deleted: 56 Deleted: 53 Deleted: 57 Deleted: 54 Deleted: 58 Deleted: 55 Deleted: 58 Deleted: 55 Deleted: 59 Deleted: 56 Deleted: 59 Deleted: 56 Deleted: 60 Deleted: 57 Deleted: 60 Deleted: 57 Deleted: 61 Deleted: 58 Deleted: 61 iii 4.2.2.2. Segmentation by income 69 4.2.2.3. Segmentation by age 70 4.2.3. Product development 71 4.2.3.1. Products development adapts to target segmentation 71 4.2.3.2. Products re-launching 71 4.2.4. Sales force – Distribution channel 72 4.2.4.1. Enhancing quality of distribution to build trust with customers 72 4.2.4.2. Enlarge distribution location 73 4.2.4.3. Facility for distribution 73 4.2.5. Building the Company Image 73 4.2.6. Public relation, promotion, advertisement and after sales services 74 4.3. VALIDITY OF SOLUTIONS 76 4.3.1. Estimate result of solution in segmentation and product development 76 4.3.2. Estimate results of solutions in distribution and product development 76 4.3.3. Estimate results of solutions in PR, advertisements, improving after sell customer service 77 CONSCLUSION 78 Deleted: 71 Deleted: 68 Deleted: 72 Deleted: 69 Deleted: 73 Deleted: 70 Deleted: 73 Deleted: 70 Deleted: 73 Deleted: 70 Deleted: 74 Deleted: 71 Deleted: 74 Deleted: 71 Deleted: 75 Deleted: 72 Deleted: 75 Deleted: 72 Deleted: 76 Deleted: 72 Deleted: 76 Deleted: 73 Deleted: 78 Deleted: 75 Deleted: 78 Deleted: 75 Deleted: 78 Deleted: 75 Deleted: 79 Deleted: 76 Deleted: 80 Deleted: 77 Deleted: IIIIXXX11122455556681316 Deleted: V Deleted: Deleted: ¶ Deleted: Deleted: V Deleted: ¶ Deleted: Deleted: Deleted: ¶ Deleted: Deleted: Deleted: ¶ Deleted: 1 Deleted: 1 Deleted: ¶ Deleted: 1 Deleted: 1 Deleted: ¶ Deleted: 1 Deleted: 1 Deleted: ¶ Deleted: 2 [5] [6] [9] [1] [3] [7] [2] [4] [8] iv A contract with conditions between client and insurer in a life insurance protection agreement. Before a real contract is signed, agent can use computerize proposal contract to deal and consult their client. : a Vietnamese organization or citizen who is authorized by Insurer to solicit life insurance business in Vietnam. : any organization or individual who is residing in Vietnam having obtained 18 years of age and above, having full capacity for civil acts, and is the person who fills in and signs the Insurance Application Form and pays the insurance premiums. : any individual who is accepted by Insurer for insurance under the policy terms and conditions. : can be an organization or an individual designated by the policy owner to receive the insurance benefits according to the terms and conditions of the insurance policy. the relationship between policy owner and life assured in which the policy owner must suffer financial loss or mental detriment on the death of the life assured, and the loss must be legal. The policy owner shall have insurable interests in the following persons: * The policy owner him or herself; * Legitimate wife, husband, children, father, mother of the policy owner; * Siblings, others who have lawful fostering/guardian relationships with the policy owner; * Nephew and niece of the policy owner; Formatted: Font: VNI-Times, 13 pt Formatted: Font: VNI-Times, 13 pt, Font color: Auto Formatted: Font color: Auto Formatted: Font: VNI-Times, 13 pt, Font color: Auto Formatted: Font: VNI-Times, 13 pt Formatted: Font: Bold Formatted: Font: Bold Formatted: Font: Bold Formatted: Font: Not Bold Deleted: ¶ ¶ VND : Deleted: Currenc y of Vietnam Deleted: Vietnam Don g ¶ WTO : The World Trade Organization¶ ¶ ¶ ¶ ¶ v * Others in relation to whom the policy owner will be subject to material financial loss as a result of the life assured's death. : a specified amount of money that the insurer receives from the policyholder in order to provide the policy benefits when a specific event occurs as regulated in the policy wordings. : the face amount of a policy agreed by both the policy owner and insurance company in the insurance policy. : with regards to the life assured, the loss, paralysis or dismemberment of: * Two arms; or * Two legs; or * One arm and one leg; or * Two eyes; or * One eye and one arm; or * One eye and one leg. : A legal form issued by the Insurer. The policyowner has the obligation to provide sufficient and accurate information in the application form. This form is considered as an integral part of the Insurance Policy. : A legal document issued by the Insurer and is an integral part of the Insurance Contract listing core benefits of the insurance policy. : the duration between two premium due dates. The premium paying frequency can be: * Monthly; or * Quarterly; or [...]... years with Manulife Vietnam as a Business Analyst gives a chance to learn and to develop to be an experts in this field The company is chosen to apply the theories and knowledge of the Master in Management course to real life Deleted: ¶ 2 The study of “Some solutions to enhance marketing activities in Manulife Formatted: Font: VNI-Times, 13 pt Vietnam is to apply the theories and knowledge of the Master... 2: Introducing literature review of marketing management, modern marketing and the role of Life insurance in an economy Chapter 3: Marketing analysis and evaluation of Manulife Vietnam Chapter 4: Some solutions to enhance marketing activities of Manulife Vietnam Conclusion Deleted: This report will not mention about the marketing budgets or price and financial data of the company because some sensitive... Management course to analyze the current situation of life insurance industry in Vietnam in order to find out the solutions to improve the effectiveness of marketing activities of Manulife Vietnam as well as to bring back the dynamic market for Life insurance industry in Vietnam It is also can be used as a reference for other companies in Life insurance industry In the short time of research, analysis... Deleted: to have Deleted: chance to learn more about marketing key concepts and basic tools, to understand the contemporary approach and culture of marketing in the company, to make marketing analysis and generate the researching ideas and to know importance of marketing in today’s business to make a recommendation efficiently to the company ¶ Especially, the course guide me Deleted: to a deeper... Number of Manulife Vietnam employees 36 Table 3 4 : Some operation indicator of Manulife Vietnam from 2000 to 2006 40 Table 3 5 : Who should by service 49 Table 3 6 : Income and purchasing decision 54 Table 3 7 : Total revenue of Life insurance companies .62 Table 3 8 : Total number of new contracts of Life insurance companies 64 Table 3 9 : Productivity of agents of Life insurance... Deleted: solutions to revoke the status of the market for life insurers Deleted: s Manulife (Vietnam) Ltd was the first wholly foreign-owned life insurance company authorized to transact business in Vietnam It provides the best financial protection and investment management services tailored to customers, studying Manulife s marketing activities will help us to understand about Life Insurance market in Vietnam. .. requests the organization to have a special tool to understand the customers’ behaviors and motivations in order to meet their satisfaction To operate successfully, a business must identify its customer, determine the types of products it customer want, and distribute those products in convenient, timely and economical manner Figure 2 10 : New place of marketing in the organization From the training course... correspond to the customer’s perceived value of the product The aim of most marketing strategies is to set a price that corresponds to customer perceptions of value in the product and at the same time not leave 4 money on the table” 4 Information from “Global Marketing Management” book – Warren J Keegan Deleted: does Deleted: ” 18 Formatted: Font: VNI-Times, 13 pt Deleted: Above all ever before, marketing. .. geographic condition is mobile or stable also impacts customers’ behaviors Languages or cultures are considered as geographic factors as well The aim of this report is focus on the marketing strategy, going to analysis deeply the strategy and finding out the way to improve it The foundation of marketing is necessary to review and concentrate into which one is the most important By reviewing the literature... Deleted: of a forces of the particular society and culture in which he or she has lived Global Deleted: that marketing has played an important role influencing the rate of culture change around the world Global marketers have to learn to rely on people who know and understand local customs and attitudes for marketing expertise The legal and political environment of global marketing is the set of government . 2.1.7. Roles of marketing to an enterprise activities 18 2.1.8. Content of marketing activities of a life insurance company 19 2.1.9. Factors effect to Marketing activities of a life insurance. chosen to apply the theories and knowledge of the Master in Management course to real life. Deleted: ¶ 2 The study of “Some solutions to enhance marketing activities in Manulife Vietnam is to. knowledge of the Master in Management course to analyze the current situation of life insurance industry in Vietnam in order to find out the solutions to improve the effectiveness of marketing activities