Marketing Strategies for Allianz Company

The report focuses on Allianz Company and its marketing activities and objectives. It includes an analysis of the market environment using SWOT and PEST analysis, as well as strategies for market implementation and evaluation.

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MARKETING MANAGEMENT
Name of student
Name of institution
Name of instructor
Course code
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Executive summary
The report focusses on Allianz Company that deals with financial investment and
insurance services. The focus is on marketing activities and objectives set by the company to
succeed both locally and internationally. The report identifies the market environment of the
company by using various tools such as SWOT and PEST analysis. The tools assist in
coming up with the best opportunities to exploit and the threats and weaknesses to prevent.
Moreover, the report checks the various methods of implementing and monitoring
marketing strategies. The aim of monitoring is to ensure that the company does not fail in the
market and give a chance to competitors to enter the gap left. Allianz is a big firm with vast
resources and market share, which results in becoming a target for competitors intending to
win over the customers. Therefore, proper care and plans are required to ensure continued
market leadership and success.
("Allianz | Insurance and Asset Management worldwide", 2019).

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Table of Contents
Executive summary....................................................................................................................2
Allianz........................................................................................................................................4
Market environment...................................................................................................................6
SWOT analysis.......................................................................................................................6
Strengths.............................................................................................................................6
Weaknesses.........................................................................................................................8
Opportunities......................................................................................................................9
Threats..............................................................................................................................10
PEST analysis.......................................................................................................................11
Political factors.................................................................................................................11
Economic..........................................................................................................................11
Social................................................................................................................................12
Technology.......................................................................................................................12
Market strategies and objectives..............................................................................................12
Market penetration................................................................................................................13
Product development............................................................................................................13
Diversification of markets and products...............................................................................13
Marketing mix..........................................................................................................................13
Product..............................................................................................................................14
Price..................................................................................................................................14
Place..................................................................................................................................14
Promotion..........................................................................................................................15
People................................................................................................................................15
Market implementation............................................................................................................16
Market evaluation and control.................................................................................................16
Conclusion................................................................................................................................16
References................................................................................................................................17

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Allianz
Allianz is a multinational company that offers financial services with headquarters in
Munich, Germany ("Allianz | Insurance and Asset Management worldwide", 2019). The
primary services offered by the company include insurance and asset management. In the
year 2014, Allianz was named as the largest insurance and financial management company
around the globe with assets worth 1960 billion euros under management.
Allianz has the vision to strive to understand all stakeholders and address needs in a
sustainable manner for the purpose of the business and society. Through vast knowledge and
expertise, Allianz is in a special position to assist people and businesses to manage and
mitigate risk, protect assets and invest in future economic development. Allianz intends to
meet the goal of the vision by employing qualified employees and investing in modern
technology to develop current algorithms for investing. Additionally, the company intend to
engage in extensive marketing activities to increase customer awareness and market shares
("Allianz | Insurance and Asset Management worldwide", 2019).
The mission of the company is to offer exceptional performance in financial and growth
based performance ("Allianz | Insurance and Asset Management worldwide", 2019). Allianz
has set up systems to ensure the achievement of the mission within a short time frame. The
systems include entering into long term relationships with customers and businesses to enable
continuous development. Allianz has opened up branches around the globe to reach a wider
market share and serve more customers. Additionally, the company acknowledges that most
of the customers travel around the globe for work and leisure resulting in the need to open up
branches that serve customers anywhere around the globe ("Allianz | Insurance and Asset
Management worldwide", 2019). On the other hand, Allianz intends to become the market

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leader with a wide market share across the globe. The company intends to introduce some
improvements in services such as introducing e-commerce to serve customers and market
products online. Therefore, the company projects to have a strong brand and revolutionary
financial and insurance services that other companies use for benchmarking.
("Allianz | Insurance and Asset Management worldwide", 2019).
A graphical representation of the top insurance companies in terms of assets in billion U.S
dollars. Allianz leads the pack with 1046.69 billion worth of assets.

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Market environment
The analysis of the market environment will use the SWOT and PESTLE model
(Andreasen, 2012). The models will assist in identifying the internal and external factors that
affect activities. The company models operations based on the internal capabilities that
include the strengths and weakness found in the company. On the other hand, the external
factors shape up the organisation in a way that the company cannot control. Therefore,
Allianz should model operation to counter threats from external factors, which could hinder
business operations and exploit opportunities to increase profit and company size (Essawy,
2012).
SWOT analysis
Allianz management uses the SWOT analysis strategic tool to perform a situational
analysis of the company. The SWOT tool assists in identifying the strengths, weaknesses,
opportunities and threats of the company (Faulkner, 2013). SWOT analysis plays an
important role in company analysis due to the ability to identify both internal and external
situations. The internal situation is identified by analysing the strengths and weaknesses
while the external situation is identified by analysing the opportunities and weaknesses.
Strengths
Allianz Company enjoys a number of strengths that allows efficiency and
effectiveness in the market. The company’s strengths plays an important role in protecting
and expanding the market share in addition to assisting in penetrating new markets (Kumar,
2015). One of the major strengths includes possessing a strong free flow of cash due to the
many financial investments done by the customers. Additionally, the company offers a
variety of services and investments that generate profit to the company, which increases the
financial strength. The free flow of cash allows the company to engage in multiple
investments that earn profit for the company. Additionally, the company has the power to
enter new markets with ease due to the financial power to pay entering expenses such as taxes

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and customs in foreign countries (Gillingham, 2012). Therefore, the company has the power
to exploit new markets that develop all around the globe to increase profitability and
customer access. The ability to exploit the markets ensures that the company positions ahead
of other players in the market by exploiting new opportunities quickly.
Additionally, the company has automated services, which has resulted in uniformity
in terms of quality to customers. The company has been able to stand out in the market by
ensuring that the services offered globally have a similarity in quality and efficiency.
Therefore, the company has the power to attract and retain customers all over the globe since
automated services lack errors (Maharaj, 2011). Additionally, the automated system enables
access to a central database of customer information which allows customers to receive
services from any branch in the globe. The ability to access data has strengthened the
company’s market position as an international brand since customers get quick and quality
services anywhere. On the other hand, Allianz has a reliable website where customers access
online services such as new customer registration, depositing and customer services.
Therefore, the company has been able to serve customers even in places without Allianz bank
branches (Xiong, 2013).
Another strength enjoyed by the company includes having trained employees who
understand the art of marketing and educating customers to get the best from the company
products (Zablah, 2012). The workforce is trained in activities such as sales to enable
winning more customers in the market. Therefore, the employees have higher motivation and
sense of ownership of the company, which increases the dedication to educate the customers
about consumer products. The trained customers have increased knowledge about the
company services and intend to exploit the services to a higher extent (Anthony, 2015). The
action results in a highly educated customer base with a higher sensitivity to investment

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opportunities provided by the company. Therefore, Allianz experiences more customer
loyalty and higher purchases of investment packages.
Weaknesses
The weaknesses include the factors within Allianz that could result in competitor
attacks and lagging behind in the current dynamic market (Bromiley, 2014). Therefore,
Allianz should improve the operational activities and asset management to cover loopholes in
the market that could result in competitor winning in the market. One of the weaknesses
includes Allianz not investing adequately in automation and computerisation of activities.
The company has not trained employees accordingly to match the growth projected in the
coming years. Allianz intends to increase in asset size and spread branches to many countries
across the globe. The move requires a high level of investment in information systems to
match the current market demands and trends. However, the company has failed in the
information system in terms of websites and online services (Cabeza, 2013). Additionally, the
company has not engaged in adequate social media activities to increase awareness of the
product among the global potential customers of the age of 18-30 who are highly tech-savvy.
Additionally, the company has the weakness of poor financial planning since the
current and liquidity ratios do not indicate a proper position (Cook, 2011). The ratio shows
that the company is exposed to customer competition by giving a point of attack. The
competitors can exploit the opportunity by exposing the weakness to the customers, which
results in distrust in the services provided. Therefore, Allianz could lose market share when
customers learn about the shortcomings.
Moreover, the company does not invest highly in demand and supply forecast, which
has resulted in availing resources that fall short of the customer demands. On the other hand,
the company only offer back-office activities in the name of insurance and financial
management (Corrigan, 2017). Therefore, the company ignores the rising demand for front
office services, which other similar institutions have adopted. Allianz should improve market

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research activities to understand customer demand for services and source adequate resources
to match the demand. Consequently, Allianz should focus on improving customer service by
introducing front office services, which have become a cash cow for many financial
institutions.
Opportunities
Analysing opportunities reveals the external factors that the business should exploit to
generate benefits (Fabricius, 2014). Allianz has an opportunity to increase the market size
arising from the large financial power in terms of assets and cash in bank. Therefore, the
company can easily finance penetration into new markets without facing hindrances such as
high customs and taxes. Additionally, high financial power allows the company to employ
experts and consultants to perform market research to find new product combinations and
markets. Therefore, Allianz has the power to enter new markets with tailor-made products
that satisfy demand.
On the other hand, Allianz has the chance to exploit technological advancements to
offer uniform services and increase customer coverage (Flanigan, 2016). The adoption of new
technology will allow the company to offer online services to a vast market around the globe,
which results in additional profits for the company.
Moreover, the current global economies have become stable with minimal inflation.
The manageable inflation rates provide an opportunity for Allianz to offer financial services
such as loans with low interest-rates (Geldmann, 2015). Therefore, more customer increases
the number of loans, which results in revenues for the company. Additionally, allowing
customers to take long-term loans increases customer loyalty.
Furthermore, the global markets have developed better terms that enable ease of
penetration. The terms include reduced tax rates for foreign countries and free market
entrance (Jukić, 2019). Therefore, Allianz has a better chance of exploiting new markets
around the globe without fear of high operational costs. Additionally, many countries have

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set affordable corporation taxes and income taxes, which does not discourage foreign
employees from working. Therefore, Allianz has the opportunity to source experts form any
part of the globe without fear of paying exaggerated salaries.
Threats
Allianz suffers the threat of failing to develop new products into the market.
Therefore, the company has for a long time relied on competitor actions to increase the
products offered to the customers (Leverington, 2010). However, relying on competitors to
develop products poses a limitation to customer service since competitors may fail to
introduce new products quickly. Therefore, Allianz has lagged behind in the market with a
few revolutionary products to retain and attract new customers. The failure to introduce new
products has resulted in reduced customer trust since customers prefer investing with
companies that exploit new market opportunities.
Additionally, Allianz faces the threat of political and legislative changes in countries
of operations (Lockwood, 2010). Some countries such as China have increased the hourly
work rate for employees to 15 dollars. The increase could result in higher salary and wages
expense for branches operating in China. On the other hand, most countries have a very
volatile political environment. The countries could experience stability today and experience
unrest tomorrow. Therefore, Allianz lacks the power to predict what will happen in such
countries, which leads to the lack of a response strategy to the effects of the political unrest.
Therefore, Allianz incurs loses in due to a fall in the value of the currency, dormancy in
economic activities and inflation. During such situations, Allianz ends up making losses,
which affect operations and financial strength (Leverington, 2010).

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Strengths
1. Financial power
2. Automation of operations
3. Highly trained experts
Weaknesses
1. Poor asset management
2. Lack of current technology
3. Poor financial planning
4. Poor demand and supply forecasts
Opportunities
1. Global markets
2. New technology
3. Favourable terms in global markets
Threats
1. Failure to quickly deliver new products
2. Political unrest
3. Unfavourable legislatives
PEST analysis
The PESTLE tool assists in identifying the external factors that affect business
existence. The various factors included in the tool include political, economic, social and
technological. The company lacks influence on the factors, which calls for research activities
to come up with strategies of generating profits from the changes in external factors
(Rentschler, 2012).
Political factors
Allianz has benefited from political decrees such as requiring car owners to buy
insurance covers. The cheapest insurance cover required for vehicles is the third party cover.
The vehicles on roads that lack the basic insurance covers face legal fines and penalties.
Therefore, Allianz has experienced an increase in insurance policies subscriptions. As a
result, Allianz has earned more revenues from an increased market share (Rist, 2013).
Economic
The current economic status around the globe has allowed most people to have a high
amount of disposable income (Srinivas, 2012). Therefore, the customers can afford basic

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needs and retain more income for other activities such as savings, investing and buying
insurance covers. Allianz has benefited from the boom status of the economy since most
customers seek insurance covers and financial investment projects. Consequently, Allianz has
managed to increase the market share and profits from customer subscriptions to the various
insurance and financial investments offered.
Social
The current society experiences an increase in young drivers aged between 17-25
years. The young drivers have a reduced sense of responsibility on the road and cause many
accidents. Therefore, the current market requires paying higher premium rates to cover
accidents (Sax, 2018). Consequently, Allianz has generated more finances from insurance
premiums. However, the increase in premiums from the young drivers come at a cost of
paying out more to cover for accidents and medical bills.
Technology
The major benefit of technology advancement is the introduction of the internet. The
internet has enabled companies to develop social media pages and websites that market
products by reaching a wide customer coverage (Sulistiyani, 2012). Additionally, the online
functions have enabled the company to sell insurance policies on the net, which has reduced
the cost incurred in winning over a customer. Therefore, Allianz currently experiences
reduced operational costs compared to before the introduction of the internet.
Market strategies and objectives
 Allianz has marketing objectives that include.
 Becoming the market leader domestically and internationally
 Penetrating new markets across the globe
 Providing the best combination of financial investment and insurance
packages

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Market penetration
Allianz should grow by actively penetrating new markets both locally and
internationally. The company could engage in advertising products through the internet,
which has developed to become an important avenue to reach many customers (Srinivas,
2012). Therefore, Allianz should involve internet designers to develop attractive adverts and
engage content developers and promoters to increase advert visibility on the internet. The
move will enable more customers to view the products and subscribe. As a result, the
company will grow in market share around the globe.
Product development
Allianz Company should venture into producing new products that match the
changing customer and market demands (Srinivas, 2012). Allianz could introduce health
insurance that matches the current needs and introduce covers for cancer and sports like
bungee jumping among others. The policies will increase the number of subscriptions and
financial gains from customer premiums.
Diversification of markets and products
Allianz should strive to enter new markets such as Asia and Africa to increase
customer access (Vecchiato, 2012). Additionally, the company should diversify the products
to include a large number of customers. For example, Allianz could assist customers to
venture in bitcoins, has become popular in the current years. Allianz should assist customers
to avoid fraudulent bitcoins schemes and provide customers about the bitcoin companies that
have a higher chance of returning investment. Therefore, the customers will develop a higher
sense of loyalty and trust in the company.
Marketing mix
Allianz will intensify marketing activities by developing a favourable marketing mix
that suits the market needs. The market mix will enable Allianz to meet various customer

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requirements such as product packaging, price, place and promotion. The successful
implementation of the P’s of marketing will play a huge role in the company’s success
(Vecchiato, 2012).
Product
Allianz has a well-developed product mix to meet the market demands both locally
and globally. The company has organised various packages that include
 Private insurance
 Business insurance
 Management of assets
 Global insurance and financial services
The company has made the services available both online and in all the branches
distributed globally. Therefore, the company has managed to reach a wide customer base
with the products that suit and match the current customer demands. Additionally, the
product packages enable the company to penetrate new markets since most companies lack
the resources and expertise to run a combination of such services (Sax, 2018).
Price
Allianz offers competent product packages to the customers at very affordable prices.
However, the insurance industry does not compete based on the price of packages since the
customers check the ability of the company to return investments (Rist, 2013). Therefore,
developing a trustworthy relationship is crucial to the success of the company’s success.
Consequently, the customers check the interest returns and the period taken to earn from
investments. As a result, Allianz has developed competitive investment opportunities that
customers pay an amount that matches the risks and returns involved (Leverington, 2010).
Place
Allianz has opened up offices in more than 70 countries across the globe. The offices
managed financial and insurance operations within the regions allowing easy monitoring of

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services and data collection for feedback. Additionally, the regional offices assist in tailoring
the insurance and financial investment packages to the unique needs of the customers. The
move has allowed the company to earn customer loyalty around the globe (Leverington,
2010).
Promotion
Allianz engages in various promotional activities to reach a wide number of
customers and create awareness (Geldmann, 2015). The most popular promotion activities
include sponsorship activities such as the move to name Bayern Munich’s stadium, Allianz
Arena. The move has created customer loyalty and company awareness among football fans
who are spread in many parts across the world. Moreover, the company has sponsored other
sporting events such as Paralympics and golf tournaments.
Image of the Allianz arena.
("Allianz | Insurance and Asset Management worldwide", 2019).
People
The company puts emphasis on strengthening relations with the people. The major
focus is on employees of the company to increase the image and pride (Geldmann, 2015).

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Therefore, the company engages employees in training to increase the expertise and
knowledge of the products and customer service. The employee improvement results in
customer satisfaction and a better understanding of the company strategies and goals.
Market implementation
Allianz will implement market strategies by engaging experts to perform research and
identify the specific requirements of customers (Flanigan, 2016). Therefore, the company will
enter markets with tailor-made products that match requirements, causing a higher percentage
of success. Additionally, the company will learn the culture of the international market and
deliver products that match the requirements.
Market evaluation and control
Allianz will engage the services of internal and external auditors to ensure that the
company aligns activities to the strategic specifications (Flanigan, 2016). The auditors will
report diversions from the strategy and come up with solutions to prevent failure.
Additionally, the company will engage in data collection from customers and employees to
establish whether the company provides satisfactory services. Furthermore, Allianz will
introduce international operating standards such as the ISO certification to monitor service
delivery.
Conclusion
Allianz has the opportunity to become a market leader by implementing marketing
strategies in a way that beats the competition. The ability to meet customer demands will
ensure that the company has better relations in the market and avoid losing customers to
competitors. Additionally, the use of various tools such as SWOT and PEST plays an
important role in identifying the various challenges to avoid and opportunities to exploit.
However, Allianz should not undermine the effects of competitor actions in the
market. The competitors have a great chance of developing product packages that could push

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Allianz out of the market. Therefore, the company should invest in strategic alliances with the
competitors to allow access to market resources and secrets.
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