B2B Assignment

On
Federated Insurance Case study

By effectively focusing on particular consumer groups, market segmentation will enable the
company to consistently deliver the proper message to their customers.

Market segmentation is essentially the strategy of breaking up consumer base into reachable
groups. It can also accelerate the process of developing new products by guiding the creation of
product offers for various market segments.
The purpose of micro segmentation is to choose how to interact with clients inside each group in
order to increase the value of each customer to the company. Small, homogeneous market sectors
will result from this.

Bases of micro segmentation –

 Application
 Favourite items
 Customer Capabilities
 History with the brand
 Business Priorities of Customer
 Time since last purchase
 Contribution to profitability

3 major aspects of Federated insurance company are –

 High quality
 Targeting small and mid-size companies
 Best service

On basis of macro segmentation industry that company should choose – Building Contractors.

Reasons-

Several construction-related activities call for insurance. (Damage of materials, buildings, ,

injuries, any contractual issue, loss or defect of material, damage due to weather, defects in
design,damage due to sickness, injury of employees, negligence & professional misconduct,
environmental damage )

1- More risk involved.

2- Inadequate risk management is a major challenge of this industry.
3- Future growth of construction of industry.
4- Construction-related buildings and structures require insurance
5- Construction employees must be covered by insurance.
6- The bond requires insurance coverage.
7- Construction equipment, machinery must be insured.
8- Legally, they must carry insurance.
9- They require defence against unforeseen events.
10- Projects that are commercial or residential require insurance
11- Uncommon construction projects - general liability policies do not provide coverage
for any events, buildings, or materials that are uncommon in construction projects. These
cannot be insured separately, so they must be added and included in the coverage.

Further segment the building contractor industry –

Residential contractors - In response to the rising need for residential housing, numerous
infrastructural projects are now being launched.

Cities upcoming with the system of residential apartments and societies - Since the company
should target small and medium businesses, the company should target cities where there are
good number of residential infrastructures upcoming. Federated insurance can establish good
and longtime relations with contractors who have recently started such projects. The company
can attract them towards their risk management service which they offer. Also, as the company is
already present in 48 states, covering tier 2-3 cities will not be a difficult task for them.
Electrical contractors – Their purchasing capacity is continuing. For modern infrastructure and
equipment, electrical contractors are essential. Safety is a major concern for them. They rely on
tools and equipments which further require insurance.

Electrical contractors in industrial areas - The company can focus on equipment insurance in
industrial areas, as they deal in heavy and complicated equipments and machinery. Industrial
areas require work of installation also, which goes in line with the company offering worksite
safety conditions.

Relationship buyers- Who value partnership as federated insurance has been consistent in its
“reputation and values” with its customers.

2-

Some SMB customers only want the cheapest option when they purchase it, but some look
for value-added services (such advice on risk management) and a comprehensive, integrated
insurance solution.

 A convincing tactic for persuading businesses to make larger insurance investments is to

show the statistical risk of future industry-specific liabilities.
 Instead of concentrating solely on the quality of their services, Federated Insurance can
emphasise why buying their insurance is a wise financial choice in the long term.
  Small firms run a significantly bigger risk when choosing a low-cost insurance coverage
than highly liquid huge companies do. One event may bring their entire business to ruin.

As, the Federated insurance company thrives thanks to its solid relationships with SMB clients.
The business must steadfastly adhere to every avenue for satisfying SMB clients. Some SMB
clients wanted the cheapest solutions   The ways that F insurance firm should react to clients who
are solely concerned with price can be-

• Keeping approaches in mind, extra services are not offered with low-cost solutions.

• High compensations are paid for policy retreats.

• The retrieved aspects are of high quality.

• There are no specific risk management instructions offered for low-cost choices.

Distinctive qualities that Federated should emphasize in the customer value proposition-

 Promote and put into practice programmes for managing risks.

 To create and develop risk-reduction strategies.
 To encourage a workplace with a healthy environment.
 Create policies and processes that can increase worksite safety and prevent loss.

Marketing – Audience market ,Launch, Discount ,advertisement

Tech services- Services offered, Number of days of effective delivery ,Ties ups with companies
for transportation
SBU manager-

Corp Level Manager-

Logistics-