Summary Communications and Competitive Strategy Plan for FBM Life Assurance Co., Nigeria. For the full, downloadable version, go to http://flevy.com/browse/business-document/life-insurance-communications-and-competitive-strategy-plan-1428

1. Communications & Competitive Strategy Plan
for
FBM Life Assurance Limited
NOTE: Real names of corporate bodies have been changed developed by
dele ogundahunsi
dele.deneri@gmail.com;
(+2348164969170); Skype; deneri4

2. [the brief]
FBM Life Assurance Limited requires agency to develop a holistic branding and integrated communications
campaign to create brand awareness, deepen penetration and to build and increase share of the Life
Assurance market.
[scope of the brief]
>Interpret mission, vision and value statements to capture effectively the company’s unique value
proposition, identity and aspiration
>Evaluate and advise brand positioning options for FBM Life
>Develop Strategy and themes for multiple media and channels
>Other responsibilities as outlined in the corporate communications brief:
-Business Objective: Target a significant increase in market share by 2013
-Communications Objectives: Create brand awareness for top of the mind awareness & brand recall
Build & Increase market share
-Expectant Output: Print, Radio, Billboards, Direct Marketing, Online Ads & Social Media
[our approach]
> Adequately respond to the brief, but also go beyond the precincts of the brief to chart possible routes to
competitiveness.
2

3. [background 1]
About FBM Life Assurance Limited
▪FBM Life Assurance Limited received its operating license from the National Insurance Commission
(NAICOM) in September 2010. The company is jointly owned by FBM of Nigeria Plc (65% equity)
and Samlan Developing Markets of South Africa (35% equity). While FBM Plc remains the oldest
and one of the most viable banks in Nigeria with over 500 branches across the country (and outside its
borders), Samlan controls an asset base of over $45 billion and operates in five continents of the world.
While the FBM group had earlier operated an insurance brokerage firm, FBM Insurance Brokers,
the vast opportunities to pool long term investible funds through the emerging life insurance market,
the existing infrastructural capabilities of the parent institution (FBM) and CBN’s recent directives
which reversed universal banking practices among others, made the establishment of FBM Life
Assurance a crucial decision for the FBM group.
FBM Life Assurance’s product categories include Group Life Assurances, Group Mortgage Protection,
Credit Life, Term Assurance, Mortgage Protection Assurance, Deposit Administration and Individual
Policies.
3

4. [background 2]
Market Overview
▪The Life Insurance Market
Life insurance products promote long term investments because such products restrict access for a
period. The savings pool from life insurance products can be invested in medium to long term
instruments (Including government bonds) which will support infrastructure development. In
developed economies that have viable insurance industries, life insurance business generally thrives
the insurance industry by contributing not only significantly to the industry but also to the Gross
Domestic Product (GDP). For instance, The South African insurance industry contributes about 16 per
cent of the country's Gross Domestic Product.
▪The Life Insurance Market in Nigeria
Life Insurance business in Nigeria is still at a developing stage. In the year 2010, the Life arm of
the Insurance sector in Nigeria contributed far less than $1 billion out of a total premium of $1.24
billion. Comparatively, the Life arm of the South African insurance market generated about 70% of the
industry’s total income, in the year under review.
The low penetration of life assurance in Nigeria is a function of certain dynamics. First is Consumer
apathy and misunderstanding of the investment benefits of life assurance . If five average Nigerians
are asked about their disposition to life assurance, at least three are likely to say “Are you wishing me
dead?” To many Nigerians, life assurance is all about receiving death benefits, whereas Life Insurance
is an avenue to plan for the future through the provision of savings and investment plans. Second is the
low disposable income of the average Nigerian which according to official statistics is $100 or less.
Coupled with the prevailing global economic meltdown, this has made acquisition of savings and
investment plans such as life assurance policies a distant consideration in the decision process of the
average Nigerian, where shelter, food and housing are more pressing needs.
4

5. [background 3]
Market Overview [contd.]
▪The Life Insurance Market in Nigeria [cont’d]
Third is the general lack of product innovation in the Nigerian life insurance sector over the
years, as most operators sell the same traditional products. Product development , for a long
time, did not take cognizance of the changing lifestyle , aspirations and needs of the average
Nigerian consumer, recent economic realities within and outside the country, etc. The educated
segment of Nigerian consumers are beginning to get more aware of the need for investment
planning, while a sizeable number also recognize the investment benefits of life insurance. Life
Insurance firms in Nigeria need to reinforce the value of life insurance policies as instruments of
“immediate” or lifetime wealth creation and financial security, rather than post-death benefits.
Charting a Competitive Strategy for the FBM Assurance Brand
No doubt the market is highly competitive, highly regulated and most life assurance products
are not well-differentiated in terms of brand values. It is imperative that FBM Assurance adopt a
clearly-thought out competitive strategy, not only to claim a considerable share of the market in
the months and years which follow, but also to gradually emerge as a leader in this market and
enjoy the benefits of differentiation that come with market leadership.
Apart from developing and sustaining a highly differentiated positioning for FBM Life Assurance
this plan also intends to identify a roadmap to immediately begin to launch FBM Assurance
Limited, an emerging, but strong brand on to the path of market leadership.
5

6. A Stakeholder Map of The Insurance Industry in Nigeria
Regulator Professional Associations Reinsurance/Loss Adjusting Channels
Association of Registered Insurance Agent s of Nigeria (ARIAN)
National Council of Registered Insurance Brokers (NCRIB)
Insurance
National Insurance Commission (NAICOM)
Companies
The Institute of Loss Adjusters of Nigeria (ILAN)
(Life & Non-Life)
Reinsurance Companies
Nigeria Insures’ Association (NIA)
57
Loss Adjusters
Customers
Insurance Agents
15,000
Insurance
2 31 Brokers
350
Risk Sharing Sales & Customer
Policy Skill Development
& Management Service
Formulation
6

7. [strategy]
7

8. [SWOT Analysis]
SCENE
S
>New and backed by a vision to reach the large
uninsured market in Nigeria.
>Backed by strong owner-brands (FBM & Samlan)
>Ability to tap into the extensive FBM infrastructural
network across Nigeria
W
>New Kid On the Block: needs to be proven
>Presently, products and product delivery are similar to
what exists in the market.
O
>The growing penetration of alternative channels such T
as mobile technology may be exploited >Market regulation does not leave much room for
competitiveness through innovative products and
>Product innovation may be to meet the changing product pricing
lifestyles and needs of consumers.
>General lack of enlightenment among Nigerians has
>Vast market potentials in the life insurance market constrained the market opportunities available to
remain untapped. operators.
>Compulsory Insurance, based on statutory regulations,
provides an influx of new business. 8

9. [Communications Objectives]
Increase awareness & share of voice for FBM Life Assurance
1 by at least +70% at the end of 1 year.
Engender increase in recognition and recall levels for
2 the FBM Life Assurance brand in the Nigerian market
by +30% in the first 6 months.
3 Increase customer enquiries leading to sales, by at least 50%
at end of 1 year campaign period.
4 Differentiate the brand through a credible positioning,
within 12 months
9

10. [Target Market]
SCENE
a.) The “traditional” insuring
public, especially middle age Commercial and non-
Nigerians in the A,B, C1-3, b.) the commercial institutions with a
largely uninsured, but sizeable D sizeable number of employees
socio-economic segment, desirous (for group policies)
of savings and investment
instruments & c.) the aspirational
segment of youths between the
20-29 age bracket
The Media (especially
Editors, Senior
Key Industry Reporters &
Stakeholders such as Correspondents on
NAICOM, brokers, etc Insurance, Business
& Financial beats
& The General Public
10

11. [Positioning Structure]
SCENE
The FBM Life Assurance Brand Onion [proposed]
Vision: To be Nigeria’s 1st choice
in Wealth creation & financial
security...
Values: Integrity, Innovation,
Professionalism, Respect for
the individual & Quality Service
Personality: Reliable, Innovative
& Ambitious
Positioning: FBM Life Assurance
provides opportunities for
wealth creation, through
excellent Life Insurance policies.
11

12. [Strategy Execution Cycles]
Short Term (6-12/18 Months):
This cycle will deploy communications
aimed at espousing & reinforcing
>Brand Positioning
and driving
>Market Penetration
Medium to Long Term (2/3 Years):
Strategic marketing functions during this cycle will be
supported with communications which drive
>Market Development
and
>Product Innovation
12

13. [action plan]
13

14. [Cycle 1]
Brand Positioning
&
Market Penetration
14

15. [Market Penetration & Brand Positioning 1]
Goals:
>Create a groundswell of awareness for the FBM Life Assurance corporate and product brands.
> Differentiate FBM Life Assurance Limited by strongly communicating its positioning, through
credible facts and figures.
>Support and sustain market penetration efforts geared towards sales of present life insurance
products through sustained consumer awareness.
Approach: FBM Life Assurance will communicate its corporate and product brands within the
context of wealth creation, investment planning for the future and financial security, rather than
as products which avail after-death benefits
Rationale: Over the years, most life insurance operators have not emphasized the investment
values of Life Insurance policies, over the years. Marketing communications has mainly touted
life policies as financial security in the event of death. In a deeply religious socio-cultural
environment such as obtains in Nigeria, that approach may be counter-productive.
Again, most life insurance firms are not well-differentiated in terms of positioning. This assumption
was borne out of a respondent’s reply, during our pre-plan consumer survey –According to him, ”what
else does a life insurance company sell, if not life insurance policies?”.
FBM Life Assurance Limited will be differentiated as the reliable provider of wealth creation
opportunities through excellent Life Insurance Policies.
15

16. [Market Penetration & Brand Positioning 2]
Execution:
>Advertising
-Optional Themes: a.) Creating Wealth through Investment, b.) Financial Security for Life , c.) A
Different Approach Attitude to Life.
-Scope: 6-18 Months at the initial; National; Product & Corporate Brands
-Channels:
▪Radio
a.) Radio Advertising spots across selected stations and b.) a 15 minute episodic sponsored radio
programme geared towards educating the insuring public on how to invest for the future. The
programme will particularly use case studies to drive home the comparative advantages of life
insurance policies as investment instruments, over others such as stock-trading, etc. Listeners
will also learn about the various life policies in the market, benefits which accrue from FBM Life
Assurance’s policies, etc. FBM Life Assurance’s radio commercial spots will also be embedded
within this programme, while listeners are encouraged during each episode to visit a website or
call a phone number for more information.
16

17. [Market Penetration & Brand Positioning 3]
Execution (cont’d):
>Advertising (cont’d)
-Channels (cont’d):
▪Print
Press
a.) Newspaper Adverts with innovative sizes will be published in at least 2 widely-read , national
publications b.) Regular 1-column Advertorial Columns will be published in a selected
publication to educate the public about financial planning, life insurance and its benefits, etc.
Brochure
Creatively conceptualized brochures will be produced as part of the sales kit for FBM Life
Assurance marketers. This will also be useful for distribution at Mass Events. While displaying
the array of products in the company’s portfolio, the brochure will also spell out benefits, terms
and conditions, etc of each product.
17

18. [Market Penetration & Brand Positioning 4]
Execution (cont’d):
>Advertising (cont’d)
-Channels (cont’d):
▪Online
Google Banner/Image Ads
Online Advertising using Google Banner advertisements is very effective in reaching specific
target markets on the web. This is a field of Search Engine Marketing (SEM). Such ads may be targeted
to appear:
-on Google search and other search sites (e.g web surfers who browse the Google search engine in
Nigeria)
-on Websites that people visit (e.g some of the popular forums and blogs often visited by most
Nigerians who belong to the target market bracket of FBM Life –nairaland.com,
nigerianbestforum.com, lindaikeji.blogspot.com, etc
-on Mobile phones with full browsers, tablets, and devices
-to People in specific locations or who speak a specific language
-to Specific audiences (the Google Display Network includes thousands of portals around the world
which have partnered Google and on which Googles Ads can be deployed. For instance, FBM Life may
target its Google Ads to some or all Nigerians on LinkednIn.com, etc)
18

19. [Market Penetration & Brand Positioning 5]
Execution (cont’d):
>Advertising (cont’d)
-Channels (cont’d):
▪Online (cont’d)
Google Banner/Image Ads (cont’d)
Apart from precision targeting through keywords,
websites, geographical areas, etc, Google Advertising’s
Cost Per Click (CPC) method will ensure that eventually,
FBM Life only pays for each click made by a web visitor on
the banner ad. This is cost-effective.
Recommendation: Highly targeted skycraper Banner ads
featuring FBM Life and based on agreed communication
theme (much emphasis on Wealth Creation, rather than
‘hardsell’ life Insurance) will be deployed on the Google
platform for 1 year. Images may be changed from
time to time. A click on a banner takes a web visitor to the
FBM Life site, or a specific site set up
for marketing purposes.
19

20. [Market Penetration & Brand Positioning 6]
Execution (cont’d):
>Advertising (cont’d)
-Channels (cont’d):
▪Social Media
Facebook Advertising
With more than 750 million users worldwide, Facebook is a great channel for branding and direct
return on advertising spend. Facebook advertising will allow FBM Life to target profiles based on certain
demographics (e.g young upwardly mobile professionals, CEOs, self-employed Nigerians, etc) and
Interests . Facebook advertising is based on a CPM
(cost per mille/cost per thousand impressions)
and CPC (cost per click) pricing model. Targeted, relevant
clicks can be directed to the FBM Life Assurance website
or Facebook Fan page.
Facebook Ad: an example
Recommendation: A facebook advertising campaign will be rolled out for at least 3 months, to drive traffic to
the FBM Life fan page. This advert will encourage targeted facebook audience to click the FBM Life facebook
banner ad to get a free, downloadable ebook on wealth creation/personal financial planning (already collated
for FBM Life’s social media campaign) or an ebook such as Napoleon Hill’s Think and Grow Rich. Clicking on the
banner thereafter take a facebook user to FBM Life’s fan page, where s/he clicks “like” and gets access to
download the freebie, which has already been uploaded on box.net.
20

21. [Market Penetration & Brand Positioning 7]
Execution (cont’d):
>Advertising (cont’d)
-Channels (cont’d):
▪Social Media (cont’d)
Facebook Fanpage
Having a facebook fan page with dynamic and frequently-updated content will not only
help FBM Life to engage with its customers, but will also enable it to generate leads and
reach out to prospects by leveraging its positioning.
Recommendation: The FBM Life fanpage will be constantly updated with write-ups and tips
on wealth creation and financial planning; contests and opportunities to win giveaways,
news of corporate events, product information and milestones. Every facebook user who
has “liked” the page will have access to such content on their own facebook and can make
(moderated) comments, thus setting the stage for interaction and a word of mouse
campaign. Agency will set up an interactive custom facebook fanpage for FBM Life and
manage same, on contract.
21

22. [Market Penetration & Brand Positioning 8]
Execution (cont’d):
>Direct Marketing
--Scope: 1 Year at the initial
-AGMs & Conferences
Most of the professional bodies usually have Annual General Meetings (AGMs) and periodic
Conferences which are well-attended by members, especially directors and top management
executives of firms within the industry. Such events provide opportunities for relating with
captive audiences relevant to FBM Life’s target Market. At least 20 of such bodies will be
identified and approached for FBM Life to have access to participants, for the purpose of a 30
minute audio-visual presentation to participants on FBM Life, its unique positioning, policies
(especially group policies), etc. Such bodies may include the Institute of Directors, Nigerian
Institute of Quantity Surveyors, Association of Advertising Agencies in Nigeria, etc. Brochures
will be distributed to participants.
-Database Acquisition & Direct Mail
Participants of AGMs and events where FBM Life has made presentations will be datacaptured
and follow-up messages sent to them in the form of creatively-produced direct mail shots,
including interactive flash-enabled CDs. Apart from these, Agency will build a database of at
least 500 most-likely prospects (such as members of Decision Making Units of organizations),
across various professions and industries, to whom Direct Mail Shots will be sent.
22

23. [Market Penetration & Brand Positioning 9]
Execution (cont’d):
>Public Relations
--Scope: 6 Months at the initial; National; 30% Product Brands & 70% Corporate Brand
-Continuous Media Presence (CMP)
It is important to consolidate on media mileage generated immediately after the licensing of FBM Life
Assurance by NAICOM and the launch of the company. This will continue to situate the company and
its products in a strategic position in the eyes of the public and stakeholders, building the image
necessary for eventual market leadership position. CMP will include news and photo stories about
events within the company (e.g. new products, 200 days in operation, 300th customer milestone,
Quarterly figures of Claims Settlement) and snippets of industry-relevant comments ascribed to top
management of the company, etc. CMP may be deployed for an initial period of 6 months with a
deliverable of a minimum of 10 news mentions/photo stories in the Press per month and an additional
2 electronic news mention per month.
-Feature Stories
At least 3 Feature Stories on FBM Life Assurance will be published on relevant pages of selected
National and business publications, per month for 6 months. Each feature story will be developed
from a different angle and occupy not less than half of a newspaper page at each Instance.
Publications to be considered include The Punch, Saturday Punch, The Guardian, THISday, NEXT,
Tribune, Vanguard, The Nation, Daily Trust, Compass, The Sun, Leadership, BusinessDay, TELL, City
People, Business Hallmark and special industry-specific publications.
23

24. [Market Penetration & Brand Positioning 6]
Execution (cont’d):
>Public Relations (cont’d)
-Special Interviews
At least one full length interview of a key executive of FBM Life Assurance will be arranged and
published in a notable press publication per month, for 6 months.
24

25. Brand Positioning:
Execution Through Advertising Creatives
25

26. [Advertising Creative Rationale ]
Insert Here
26

27. [Radio Commercials ]
Insert Here
27

28. [Press]
Insert Here
28

29. Media Plan
Insert Here

30. [Cycle 2]
Market Development
&
Product Innovation
30

31. [Product & Market Expansion Options for FBM Assurance]
SCENE
ANSOFF Matrix/Product-Market Expansion Grid: The Options
Existing Products New Products
Option 1
>Existing Market-Existing Products: Market
existing/traditional Products to traditional (middle
Existing Markets
age) market in the A, B & C SES
Market Product
Penetration Development
Option 2
>New Market-Existing Product: Market existing
products to the D SES (micro-insurance) with
moderate changes in product & pricing structures
Option 3
New Markets
>Existing Market-New Product: Create new, Market
innovative products/enhanced products targeted at Development Diversification
A,B,C SES
Option 4
>New Market-New Product:
Introduce new products to the aspirational segment of
young graduates & first-time-career, unmarried
workers.
31

32. [Market Development & Product Innovation 1]
Goals:
>Expand the breadth of market opportunities beyond present/traditional target market.
>Identify key success areas of Product Innovation.
Approach: Redefine the competitive landscape by creating new market segments and tailoring
innovative products (including innovative pricing structures) aimed at such new market
segments.
Rationale: The hallmark of market leadership is the development of the overall market. When
an emerging brand develops the market beyond its traditional borders, it begins not only to gain
recognition as a market leader, but stands to reap the benefits of brand leadership, ahead of
other brands, though such other brands (follower brands) may also eventually tap into these
benefits of market expansion. This is particularly evident in the Fast Moving Consumer Goods
(FMCG) sector, where for instance a brand such as Close-Up Toothpaste embarks on a market
expansion campaign with a key component targeted at Consumers to brush twice rather than
once daily (Brush Day + Night), in order to increase toothpaste usage and increase sales. This
competitive direction was also employed years back, by IGI Insurance, jumpstarting the IGI
brand into market leadership position in the Nigerian insurance industry, within a short time.
32

33. [Market Development & Product Innovation 2]
Execution:
>Micro-Insurance & the D Socio-Economic Segment (SES)
-Traditionally, Life Insurance products in Nigeria have been targeted at the cream of consumers (the
A,B & C socio-economic classes), leaving the D segment of the population, which though may not
possess a large layout of disposable income, yet have critical needs for investment planning and future
financial security.
By partnering with and relying on the infrastructural network of FBM Plc, FBM Assurance Plc can
effectively market tailored insurance policies to this segment, at low-cap premiums, but which
turnover at the end of the day, will ensure impressive profit margins. Communications to this atypical
market will be done in style, language and imagery immediately understandable by that segment and
through channels easily accessible to them, such as Radio and Television (latching on to already-
existing popular programmes which they hear/watch). Comprehensive Product Development
processes and Marketing Communications will be developed for this initiative, on endorsement.
>Catching them Young: Young Graduates
Traditionally, Life Insurance marketers have always targeted middle age Nigerians, usually married
working class consumers with families. However, with the present economic realities, some discerning
youths such as newly-graduating tertiary school students have come to see the imminent need for
them to consider investment planning right after leaving school, rather than wait till they get
employed. This segment is an aspirational market with great potentials throughout the customer life
cycle.
33

34. [Market Development & Product Innovation 3]
Execution (cont’d):
>Catching them Young: Young Graduates (cont’d)
As part of a long-term customer acquisition programme, It is recommended that FBM Life Assurance
develop a product targeted at serving youth corp members and begin the recruitment of such young
graduates by partnering with the National Youth Service Corp (NYSC), in selected states, or nationally.
As part of this partnership, seminars will be held at NYSC orientation camps with serving corpers in
attendance, to educate them on Wealth Creation, Investment Planning, Life Insurance as a tool of
Financial Security (rather than a means to death benefits), The FBM Life Assurance offerings, etc. Corp
Members are encouraged to purchase the special FBM Life Assurance policy targeted at them as a baby
step towards ensuring their future financial security. All attendees of the seminar (including buyers of
the FBM Life policy) are datacaptured. FBM Life Assurance sends follow-up messages to these newly-
recruited customers at each stage of their endeavours, reminding them about the need to start
investment planning early enough, the renewal of their FBM Life Policy and general tips on Wealth
Creation. Apart from placing the FBM Life Assurance brand at the top of the minds of these segment of
the market throughout their lifetime, it is expected that a considerable number of policyholders will
be signed on. Again, the special life Insurance policy developed for this segment may include risk
components for travel, disability during national service assignments, etc. The National Youth Service
(NYSC) may be lobbied to make it a compulsory part of the service documentation for every corp
member. Marketing Communications support will include informative brochures, events management
(seminars), tactical advertising at product launch, media relations, etc.
34

35. [Market Development & Product Innovation 4]
Execution (cont’d):
>m-insurance (mobile insurance)
Nigeria has an estimated population of 146 million. According to more recent research studies, the
mobile phone subscriber base in Nigeria reached almost 73 million at the end of 2009, representing a
penetration level of 50% of the population. According to the Nigerian Communications Commission
(NCC), capital investments in mobile networks and operations have constituted a total of more than
$16 billion as of March 2010, since 2001 when the Nigerian government successfully liberalized the
industry.
While majority of consumers (especially those at the bottom of the pyramid) may not have ready
access to banking services and while others may find the cost of banking services expensive, almost all
levels of consumers have access to mobile phones.
It is recommended that FBM Life Assurance integrate its operations into mobile telephony, to make
services easily accessible to customers. With this, customers can buy affordable life insurance with the
convenience of being able to manage that insurance via their handsets, submit claims, queries and
make their premium payments, using their handsets.
FBM Life Assurance may partner with selected mobile telecoms operators in the country, individually
(multichannel approach) or develop an interface with all mobile telcos through a single platform such
as Mtech (single channel approach). Communications support here will include Media Relations
(including a press conference to launch the service) and tactical Advertising to create awareness.
35

36. [Key Performance Indices -kpis]
>CYCLE 1: Short Term Term (Market Penetration & Brand Positioning Stages)
-Efficient Conceptualization, Design & Production of all Advertising Materials
-Effective Media Planning & Media Buying (Online & Offline)
-Minimum 10 news & 2 photo stories per month x 6 months (Continuous Media Presence)
-Minimum 2 Electronic News Mentions per month x 6 months (Continuous Media Presence)
-Minimum 3 Feature Stories per month x 6 months (Feature Stories)
-1 Special Interview per month x 6 Months
>CYCLE 2: Long Term (Market Development & Product Innovation Stages)
-Provision of advisory services at all stages of Market Development & Product Innovation stages
-Efficient Planning & Implementation of all marketing communication support activities
36