Question

You can access the Santam Group website and also have a look at their subsidiaries or business units like MiWy Insurance, Santam RE, Santam Personal, Santam Specialists, Santam Commercial

Question

A company pursuing a differentiation strategy strives to create a product or service that customers perceive as being different in some important way. Customers need to believe that the product or service offered has differentiated qualities that are worth paying a premium price for.

Provide practical strategic recommendations for how the Santam Group can better differentiate their products and services for each of the following strategic business units (SBUs): Santam Personal, Santam Commercial, Santam Specialist, MiWay and Santam Re.

Answer 1

ANS-

Product/Service Differentiation:

Making a product differentiate from rivals and satisfy the customers. In the competitive environment company must have to innovative in their services. It is the process of distinguishing a product or service from others, to make it more attractive to a particular target market. This involves differentiating it from competitors' products as well as a firm's own products.

A differentiation advantage ca be achieved through

- Superior Quality

- Superior Innovation

- Superior customer Responsiveness

  

Now, followings are the recommendations for the SANTAM GROUP to achieve competitive advantage by product/service differentiation through create distinct competencies-

SANTAM PERSONAL (Personal Insurance)

· To provide combo insurance pack like insurance of Father+Mother, Husband+wife

· To provide Door to Door/Online facility for premium

· Provide an easy platform to get claim easily

· Cover the additional product like “get vehicle insurance with life insurance”

· Excellent Customer Service

· Better insurance features

· Developed trained Insurance agent with attractive attitude

SANTAM COMMERCIAL

· Get the market share to provide commercial insurance from TOP to BOTTOM like an insurance to barber shop to MNC companies

· Improve quality of insurance on very clear terms like claim or no claim circumstances

· Establish an office in big MNCs to provide exclusive services

· Insurance of business of different industries with risk analysis

· Developed a risk based insurance like Chemical industries, health industries and other

· Entered in unique business situations like provide insurance on amalgamation and demerger and their synergy

SANTAM SPECIALIST

· Developed more specialist business in their units

· Integration of multiple specialist business on their nature and demand

· Regular analyses the market to incorporate different services

· 100% guaranteed specialist business with premium price

             SANTAM MIWAY

· Developed intermediary business model

· Offers different business model, segmentations, risk profile, lapse percentage

· Strategy of growth through diversification

· Offers its customers excellent service, superior value products, and fair treatment at all times

                SANTAM RE

· Client Segmentation

· Delivery of tailored offering

· Established teams that leverage our knowledge, risks-bearing capacity and innovation to offer solution that transcend traditional reinsurance

· Use ever changing technology

· Leverage technology and data to understand risk better, improve underwriting and pricing

                                                                        *THANK YOU*