Analyzing Case Studies & Marketing Strategies in Superannuation Funds

This assignment presents a case study analysis of marketing strategies employed by superannuation funds, focusing on AMP Superannuation Savings Trust and AustralianSuper. It examines customer service issues in the banking industry, communication errors, strict withdrawal rules, and workflow management. The analysis includes a comparison of AMP and AustralianSuper, covering their business overview, client profiles, target groups, and market segmentation based on demographic, geographic, and behavioral factors. A cost-benefit analysis is conducted to evaluate the effectiveness of the marketing strategies, revealing that AustralianSuper's strategy yields higher additional benefits over costs. The assignment concludes by recommending marketing strategies for both funds, emphasizing the use of digital media, educational campaigns, and engagement with third-party individuals and organizations. Desklib provides access to this and other solved assignments to aid students in their studies.

Running Head: CASE STUDIES & MARKETING STRATEGY 1
Case Studies &
Marketing Strategy of Superannuation Funds

CASE STUDIES & MARKETING STRATEGY 2
Table of Contents
Task 2.....................................................................................................................................................3
Case Study1.......................................................................................................................................3
Case Study 2......................................................................................................................................3
Case Study 3......................................................................................................................................4
Case Study 4......................................................................................................................................4
Task 3.....................................................................................................................................................6
Business Introduction........................................................................................................................6
Business Overview.............................................................................................................................6
Comparison Between Both the Companies.......................................................................................7
Client Profile & Target Group............................................................................................................7
Market Segment & Characteristics Affecting Market Segment.........................................................8
Cost-Benefit Analysis.........................................................................................................................9
Marketing Strategy..........................................................................................................................10
Sample Tools & Advertising.............................................................................................................11
Monitoring Process and Review......................................................................................................12
Conclusion.......................................................................................................................................13
References.......................................................................................................................................14

CASE STUDIES & MARKETING STRATEGY 3
Task 2
Case Study1
Customer service in banking industry plays an important factor in client retention.
Apart from offering great products, organizations should endeavour for continuous
enhancement of services and timely query resolution (Mcghee, 2013). In this case study, the
bank has clearly lacked in its responsibility of not providing continuous service during its
working hours. This clearly shows an indifferent and irresponsible attitude of bank employee
at enquiry counter. It also gives a view of attitude of senior employees in the branch. Senior
employees should keep a track on activities inside the branch and regular oversight over
juniors.
A customer in such a condition should raise this problem with the branch authorities.
The customer should suggest branch officials that in case of non-availability of an employee,
an alternate arrangement should be made and employee should respond properly. In this case
complain may be made verbally. In case of repetition of such incidence, written complain
may be made to branch manager or even to head office.

CASE STUDIES & MARKETING STRATEGY 4
Case Study 2
Communicating with clients in an appropriate manner is an important organizational
function (Jefkins, 2012). This case study highlights two errors organizations generally
commit in communicating with their customers. First, they target customers with
inappropriate mailers. As in this case, widow is receiving mailers regarding student banking
facilities. Second, they do not pay attention to any requests raised by the customers. Widow is
continuously receiving the mailers despite many requests for them to be stopped. It also
highlights the lack of coordination between branch and head office. Branch manager is
unable to process the request of widow.
In this case as no action is being taken by the branch officials, so widow should
directly contact the head office in writing by mail. Widow should complain about the
appropriate mailers and lack of coordination between the branches. Widow should also tell
them to activate ‘do not disturb’ facility for such cases so that such mails are not received.
Case Study 3
This case highlights a strict rule of various banks regarding the withdrawal limits for
customers. Banking policies in present times are aimed at generating revenue through various
sources and maintaining liquidity in the system (Ayadi & Mouley, 2013). Although the
customer has withdrawn above the standard limit for the first time in 8 years, the account has
been charged with penalty. The good thing here is that bank has informed the customer about
the charges in a form of a written letter. Banks are continuously alert in matters regarding
over drawing of balances and any errors committed by clients.
The customer in this case can request the bank to reverse the charges by giving a
written request. The customer may argue that the limit has been breached for the first time
and that too in 8 years, so the bank may consider reversing the penalty.

CASE STUDIES & MARKETING STRATEGY 5
Case Study 4
Mismanagement of customer rush and workflow is often a problem for service
organizations. This often leads to wastage of time for customers (Zopounidis, 2012). This
case study highlights the problem of inappropriate work flow management in banks. In this
case bank should probably arrange for two counters. Also there are many customers who
waste the time of other people in branch. These customers should be dealt separately.
In this case, customer should bring to notice the problem by complaining to the
officials. The customer should also tell bank employees that this is a continuous problem. The
customer should also advice that people carrying money in form of large number coins
should be dealt on a separate counter. These suggestions may be communicated verbally or in
form of written letter.

CASE STUDIES & MARKETING STRATEGY 6
Task 3
Business Introduction
Superannuation funds are various financial plans developed by government or private
entities for accumulation of funds and with intention to provide income after retirement
(Smith, 2012). These funds are not mandatory and are promoted by the government with tax
benefits. This report presents a marketing strategy and comparison of two financial
companies to be analysed as superannuation funds. The funds chosen are AMP
Superannuation Savings Trust and AustralianSuper.
AMP Superannuation Savings Trust is a resident regulated fund. This fund is
registered with Australian Prudential Regulation Authority (APRA) and has more than 2
million participants. The fund was formed on 1 July, 1998 and is following the regulations of
Income tax authorities (AMP, 2017). AMP capital is the investment manager of fund.
AustralianSuper is one of the largest pension and superannuation fund of Australia. The fund
has more than 2.2 million members. The fund is run to generate profit for members and
because of its size the cost of fund is very low. AustralianSuper is also registered with APRA
and has multiple investment managers. (AustralianSuper, 2017).

CASE STUDIES & MARKETING STRATEGY 7
Business Overview
AMP Superannuation Savings Trust is a public offer retail fund. The contributions to
fund are received through AMP Life and AMP Capital. The fund is qualified for transfers and
rollovers. The fund has 8 MySuper products and 290 investment options. MySuperstratergy
product has 29% of its total assets. The fund has assets of around $55 billion. This fund
invests global bonds, global shares, listed real estate, Australian shares and derivatives
(Superguide, 2017). On the other hand AustralianSuper is an industry and public offer fund.
This fund has 13 Mysuper products and 13 investment options. In this fund MySuper
stratergy has 67% of the total assets. This fund has invested all over the globe with
investments of about $120 billion. The investments include financial instruments as well real
assets. Shares, airports and shopping centres are part of its portfolio (Superguide, 2017).
Comparison Between Both the Companies
AMP Superannuation Savings Trust is pension fund, run and promoted by AMP. The
shares of AMP are listed on Australian stock exchange. It is financial services enterprise
dealing in various products. The company deals in employee and personal plans. The fund
believes in developing variety of investment options for different risk profile clients. The
company also provides insurance linked plans with whole life or endowment option.
AustralianSuper is a superannuation fund with offices all over Australia. It has two
divisions. First one is an industry and personal division. Other one is retirement income
division. The company believes in sustainable long term investment returns and reducing
costs because of large fund size. Apart from managing superannuation fund, the organization
deals in financial advice and providing insurance to members. For sustainable growth of
organization, it launched ‘social aware investment option’ for its members.

CASE STUDIES & MARKETING STRATEGY 8
Client Profile & Target Group
AMP Superannuation Savings Trust is a public fund. It can be offered to general
public. Australian Superannuation Savings Trust has 38% female participants and 59% male
members. Most of the participants are present in age group 35-44 years. Largest number
funds have been too contributed by this group. Superannuation funds benefit by targeting
young generation. So target group should be individuals between ages of 25-40 years. On the
other hand AustralianSuper is a member only fund. Benefit of member only funds are
manifold. It is benefitted by low fees, decisions are not affected by vested interests and
profits are for members. It has 39% female members and 59% male members. In this fund
most of the subscribers are present in age group of 25-34 years (Superguide, 2017). This fund
too should have its target group as young generation between ages of 25-40 years. However
both the funds should target all sections of the society.
Market Segment & Characteristics Affecting Market Segment
Market segmentation consists of segregating total customer base of a business in
smaller groups based on certain criteria (Sun, 2009). Criteria can be based on demographic,
geographic or behavioural factors. Markets can be segmented for these two funds in an
identical manner because both have customers of all ages, regions and behaviour biases.
Hence various segments and characteristics affecting them are:
1. Demographic Segmentation: Demographic factors play an important role in deciding
market segment of these funds. Market segment can be formed by age, income,
gender and family size (Gbadamosi, 2013). For these funds, market segments can be
high income, young with high income and old couples. These segments are affected
by different products offered by the company. As every segment has their unique
need. Young are interested in risky and long term investments.

CASE STUDIES & MARKETING STRATEGY 9
2. Geographic Segmentation: Geography affects an individual’s lifestyle. People living
in urban centres have better life style and longevity in life. So they are interested in
products which have whole life annuities. On the other hand, rural population lives a
very hard and risky life. For such individuals pension plans along with insurance and
low premium are right products.
3. Behavioural Segmentation: Behavioural biases of an individual affect the choices
which are made in selecting and purchasing different products (Solomon & Lowrey,
2017). Insurance and pension are generally delayed investments. In this segment price
conscious and unaware investors want low premium products. This segment is
affected by psychological and social biases of individuals.
Cost-Benefit Analysis
The process of evaluating benefits and costs associated with a business strategy to
analyse the effectiveness of the plan. It consists estimating the costs associated with the
proposed strategic proposal and simultaneously calculating all benefits generated by the plan.
Both direct and indirect costs as well as benefits should be included in the analysis (Campbell
& Brown, 2015)
Table 1 Cost-Benefit Analysis 1
AMP Superannuation Savings Trust
Costs($) Benefits ($)
Market Research 110000 Increased
Revenues 835000Advertisement Campaign 190000
Sales Employee Salary 150000
Sales Promotion Material 49000
Office Expenditure 30040
Miscellaneous 14000
Total Costs 543040
Total
Increased
Revenues 835000
Additional Benefits over 291960

CASE STUDIES & MARKETING STRATEGY 10
Costs
Table 2 Cost-Benefit Analysis 2
AustralianSuper
Costs($) Benefits ($)
Market Research 90000 Increased
Revenues 946000Advertisement Campaign 210000
Sales Employee Salary 130000
Sales Promotion Material 54000
Office Expenditure 35000
Miscellaneous 20000
Total Costs 539000
Total
Increase
d
Revenues 946000
Additional Benefits over
Costs 407000
After conducting a cost-benefit analysis of marketing strategy of both the superannuation
funds, it is concluded the benefits overweight costs in both the cases. However, marketing
strategy of AustralianSuper is successful over the other company. Total additional benefits
over cost in case of AMP Superannuation Savings Trust are $291960, whereas $40700 in
case of AustralianSuper.
Marketing Strategy
Marketing strategy is a set of guidelines and processes that an organization follows for
promotion and improving reach of its products (Ferrel & Hartline, 2013). Marketing
strategies are devised taking into consideration various stakeholders of an enterprise.
Marketing Strategy of AMP Superannuation Savings Trust
Like most of the superannuation funds, the organization is also using partners and
influencers for product promotion. Indirectly, strategy also focuses on development of world
class award winning products for customer retention and attraction. Fund has its focus on
umbrella approach with aims holistic approach to promotions. This process starts with

CASE STUDIES & MARKETING STRATEGY 11
customer research, product development, advice and selling at end. Social and digital media
is also a source of marketing for AMP.
It is recommended that company develops a strategy for engaging third party
individuals and organizations for spreading awareness and selling its products. Educational
campaigns through television, events and street shows should be its focus.
Marketing Strategy of AustralianSuper
According to Homewood (2016), marketing strategy of AustralianSuper is targeted
through digital media and focusing on millennial. Millennial are very excited about the
superannuation products and do a considerable analysis of different product options. The
company also gets a lot of queries from them. Digital media will provide an effective
platform for targeting all sections of the society. Apart from this company is also using other
sources of marketing such as engaging with partners and influencers. The partners and
influencers help in promoting products by creating awareness and changing attitudes.
Apart from these, it is recommended that the company uses traditional methods of
marketing. It should organize workshops and street campaigns. Promotion through television
should be encouraged. Company may also engage advisers, banks and other agents for sales
promotion.
Sample Tools & Advertising
Marketing tools and advertisements help organization target audiences according to
their needs and help in effectively evaluating a campaign to analyse return on investment
(Adler, 2010).
AMP Superannuation Savings Trust
In 2016, the company launched goal based operating system, which comprised of goal
centre and a explorer. The system has article, videos and modules for educational purpose

CASE STUDIES & MARKETING STRATEGY 12
and marketing. Modules have option to narrate as well. This is helpful of old as well those
who are visually impaired (Burchill, 2017). Digital media tools such as online mailers and
podcasts are also being used by the organization. Advertisements on social media are also
common. YouTube, LinkedIn and Twitter online marketing tools are also being used by the
company.
It is recommended that company also uses promotional hard copy material for product
promotion. These will be for helpful older and non-tech-savvy individuals. These can be sent
along with policy statements after taking customer approvals.
AustralianSuper
Since, at present company has its focus of digital media and millennial. It should
focus on next-generation tools and advertising. Digital media tools include online
advertisements, marketing through mobile, web-analytics and emails. Digital media and
analytics are effective in targeting customers by evaluating their needs. Partners and
influencers are using social media websites and tools for product promotion. They are
particularly active on Twitter and YouTube.
Apart from the current tools and advertisement methods, it should also use
promotional items such as educational videos, product brochures and merchandise to improve
brand value. Banners and newspapers advertisements should also be encouraged. Traditional
tools and advertisement measures result in a lasting impression.
Monitoring Process and Review
Monitoring and review process of marketing strategy involves analysis of impact of a
plan, quantitatively measuring various data and carrying out appropriate changes to existing
plan in case pre-defined results are not achieved (Saunders, 2015).
AMP Superannuation Savings Trust