Case Harvard

Case#4- Federating Insurance: Targeting Small Businesses 1. When looking at an automobile industry the Federated macrosegmentation would be taking a company like BMW and looking at the market segments in a broader view. For example, the owner of the branch must make sure their employees are happy with their job. The macrosegmentation of this would be employee performance. Federated plays a role in this because with great performance comes incentives. Federate gives insurance incentives to BMW employees. As the insurance supplier, Federating Insurance must make sure they are on top of their game. To do so, they must take the macrosegmentation and dig into the segment some more to find out what employees really want. This would be called the mircosegmentation. Therefore, the macrosegment of the employees performance can be split into a smaller group by researching what makes the individual happy. This would be what Federating Insurance is already doing which is having the one on one relationship with its customers to make sure they are satisfying everyone’s needs.

2. When buying insurance, some SMB customers just want the lowest-priced option for each type of insurance, whereas others want value-added services. I believe that Federated should be open to all opportunities. Although, their mission is to provide quality insurance, in order to keep a good clientele they should also provide a special package for companies who look for a just smart price deal. They should use this deal as a last resort and instead with dealing with customers try to make the insurance buyers understand the companies mission and how much more beneficial the value based package is. Also, in my opinion, I believe that Federated should not illuminate anything from the customer value proposition because they already have a good response to it. If they were to illuminate anything there is a chance they can lose some customers as well. All in all, I believe they should let the value