The demographics that will be used for may target market will include; income, family composition and age. The indemnity health insurance will target people with a lot of disposable income meaning that they will be likely to contribute to an insurance cover. Family composition will help to target families with children and provide a cover that takes care of their health. The indemnity health insurance will target people of different age groups. The indemnity health insurance product would be tested in the market using the following ways; consulting the experts and using focus groups. Experts in the insurance industry will be used to rate and advise on the product. Focus groups will help to get view and important inputs on how the market will respond.
“Solutions insurance” is the brand name that I would choose for the indemnity health insurance. The pricing strategy is focused on affordability (Išoraitė, 2397). Pricing the indemnity health insurance that is directly focused on the customers will be cheap providing cover to all the need in that market segment. Indemnity health insurance that is provided by other businesses will also be affordable. The pricing on my indemnity health insurance will be relatively cheaper than those of my competitors since affordability is our competitive advantage.
Placement of indemnity health insurance will be done though insurance agents and financial institutions. Every business requires identifying its distribution channel in the market (Resnick, 163). Using insurances agents is a direct way of distributing indemnity health insurance in the market. Partnering with financial institutions can help to sell the insurance covers to clients. Promoting indemnity health insurance will happen through the following ways; advertisements and use of referrals. Advertisements through mass media outlet and through the internet will help to promote the indemnity health insurance. Marketing through referrals will promote of indemnity health insurance to clients.
Išoraitė, Margarita. “Marketing mix theoretical aspects.” International journal of research granthaalayah (2016): 2394-3629.
Resnick, Sheilagh Mary, et al. “Marketing in SMEs: a “4Ps” self-branding model.” International Journal of Entrepreneurial Behavior & Research 22.1 (2016): 155-174.