Marketing Assessment Report- Aflac Insurance Agency
Brief Company History:
Aflac was founded by brothers John, Paul, and Bill Amos in 1955. Aflac Incorporated is an international holding company based in Columbus, Georgia. In 1958 Aflac was recognized for introducing one of the world’s first cancer expense insurance policies. In its initial year 5,810 plans were sold and by the end of the decade Aflac had 376 agents selling insurance in Georgia, Alabama, and Florida. Aflac began adding many new insurance policies, including accident, short-term disability, hospital intensive care, hospital confinement indemnity, lump sum cancer, lump sum critical illness, specified health event, life, dental, and vision. In 1964 Aflac developed the “cluster-selling” technique of making presentations to groups of employees, this conserved time and effort rather than doing face to face with each employee. Aflac is the number one supplemental health provider in the U.S. The company is present in all 50 states and in Guam, Puerto Rico, and the Virgin Islands. Aflac insures more than 50 million people worldwide and has 70,000 licensed agents. (Aflac Annual Report for 2010) They are currently ranked 125 on the Fortune 500 list of America’s largest corporations. In the mid-1970s Aflac entered the Japanese market and they were only the third American insurance company to be licensed to sell in Japan. Aflac was set to do well in the Japanese market, with cancer insurance not available from Japanese insurers and cancer awareness growing in Japan good things were in line for the company. They insure approximately one out of every four households in Japan. They also insure more than 35,400 payroll accounts representing 89% of the companies listed on the Tokyo Stock Exchange, as well as employers and employees at 159,610 small businesses. (Aflac Annual Report 2009) Today Japan accounts for about 75% of the companies revenues.
Although Aflac was a Fortune 500 company the name had little recognition beyond the stockholders. After several unsuccessful attempts to increase Aflacs brand awareness the CEO Daniel P. Amos challenged several agencies to make Aflac a household name. When the commercial with the Duck came back to Mr. Amos he at first thought it was crude to the company name. After deliberating over the choices for a couple of days he noticed he couldn’t get that duck out of his head. After realizing that was his main goal of the commercial he chose to go with the Aflac Duck as the company icon. Ten years later the Aflac name is known by 94% of Americans and the Aflac Duck was added to the Advertising Walk of Fame.
Mission and Objectives of the Firm:
To combine innovative strategic marketing with quality products and services at competitive prices to provide the best insurance value for consumers. • Offer quality products and services at competitive prices and use new technology to better serve our policyholders. • Build better value for our shareholders.
• Supply quality service for our agents.
• Provide an enriching and rewarding workplace for our employees. Aflac has two very simple strategies for growth one being, “To continue expanding our product line.” And second “To focus on growing our distribution system of independent sales associates and insurance brokers.”
Marketing Objectives and the role of Marketing within the Firm:
When Daniel P. Amos was named CEO of Aflac Incorporated, he tried many different marketing campaigns to make the Aflac name more recognizable. All his attempts were coming up short until a 2000 campaign using a Duck as the company icon finally struck gold. The Aflac name was unrecognizable to almost everyone except shareholders before the Aflac Ducks depute. By the ten year anniversary of the marketing campaign the Aflac name was recognizable to 94% of Americans. When the brand recognition...
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