Marketing Analysis of Westpac Insurance Services: HI5004 Report

This report presents a marketing analysis of Westpac's insurance services. It begins with an overview of the company and its service offerings, followed by a competitive analysis that identifies key players in the Australian banking and finance industry. The report then conducts an environmental scan using PESTLE and Porter's Five Forces frameworks to assess the political, economic, social, technological, legal, and environmental factors impacting Westpac. A demand forecast is provided, highlighting the importance of insurance in maintaining stability and the impact of technological disruptions. The report further explores market segmentation strategies based on demographic, geographic, psychographic, and behavioral factors. It identifies Westpac's target market and concludes with a positioning statement that emphasizes the company's reputable market position and commitment to customer trust. The report references various sources to support its findings.

MARKETING
Westpac

INTRODUCTION
 The intent of this presentation is to discuss
regarding the insurance services offered by
Westpac Back of Australia.
 The presentation is comprised brief
information related to service like
competitive background, environment
scanning, and market segmentation related
to the bank.

OVERVIEW OF SERVICE
 Westpac Banking Corporation is generally
called as Westpac, under the banking and
financial service of Australia with
headquarters in the Sydney. The bank was
established in 1817 (Westpac Banking
Corporation, 2019).
 The services delivered by the bank are
consumer banking, investment management,
insurance and finance, credit cards,
mortgages, private equity, corporate
banking, private equity, and global wealth
management (Westpac Banking Corporation,
2018).

COMPETITIVE INFORMATION
 Westpac Insurance service deals with intense
competition in the Banking and Finance
Industry of Australia due to presence of
number of key players in the market such as
Commonwealth Bank, National Australian
Bank, and Australia and New Zealand
Banking Group (Nasdaq, 2018).
 All these players offer range of insurance
services to their client and compete in terms
of interest rate, additional benefits, etc.

ENVIRONMENTAL SCANNING (PESTLE
ANALYSIS)
 Political - Changes in the policy like
introduction of bank levy is impacting the
performance of the leading banks
(Parliament of Australia, 2017).
 Economic - Chinese market investment in
the Australia is impacting the property
prices.
 Social - Increasing demand for affordable
housing services.

ENVIRONMENTAL SCANNING (PESTLE
ANALYSIS)
 Technological – Digital transformation of
product and service has resulted in reducing
paper work and enable easy banking and
insurance Services.
 Legal – The legal environment of Australia is
becoming challenging which is impacting the
business operations.
 Environmental - Environmental criticism
resulting in alteration in the practices of
business.

ENVIRONMENTAL SCANNING (PORTER
FIVE FORCE FRAMEWORK)
 Threat of New Players – The threat of new player in the Australian
banking and insurance market is low due to presence of entry barriers
established by the government and existing players in the market.
 Threat of Substitute Products – The threat of this force in the
Insurance industry is low because this service does not have any type of
substitute service.
 Competition among existing players – The competition in the
Australian banking and finance service market is high because of the
availability of strong players in the market such as Commonwealth Bank,
National Australian Bank, and Australia and New Zealand Banking Group
(Nasdaq, 2018).
 Power of Suppliers – The power of supplier in the banking and finance
industry is high because they are the one who provide different products
to the banks for delivering services to the clients. This also increases the
negotiation power of the suppliers.
 Power of Buyer – The power of customer in the banking and finance
industry is low due to regulations and laws implemented by the
government. In addition to this, the changes in the interest rate, etc. is
due to changing market conditions that cannot be controlled by customer
and banks.

DEMAND FORECASTED
 A traditional profitable segment of the business,
insurance is considered to be important for
carrying stability to the individuals and
companies. But, the decreasing bottom line in
the entire industry, resulting in diverse changes
in the market. The main cause of the changes in
the market is technology disruption. The
analytics and data create the main insurance
market. However, the disruption and innovation
are seeking to outstrip traditional insurance
stakeholders, by carefully assessing the
insurance value chain for leveraging the
preference of customers for improved services at
low prices (Mordor Intelligence, 2019).

MARKET SEGMENTATION
 Market segmentation is all about dividing the market in
different segments. The criteria that are used by the
business to divide the market are demographic,
geographic, psychographic, and behavioural
segmentation (Wedel and Kamakura, 2012).
 Under demographic segmentation, Westpac divide the
market based on income, age, gender, etc.
 Under geographic segmentation, the bank divides the
market depending on location of the customer.
 Under psychographic segmentation, the bank divides
the customer base based on their lifestyle, attitude, etc.
 Under behavioural segmentation, the bank divide the
market depending on their decision making pattern,
interest level, etc.

TARGET MARKET
 Target market is the marketing strategy used
by the businesses to divide the segment into
groups for focusing their marketing efforts
towards selected group. The target market of
Westpac for its increase services are those
who purchase different vehicles, purchase
house, and desire to establish new business
in the market (Bhasin, 2018).

POSITIONING STATEMENT
 Positioning is the place that is occupied by
the business in the eyes of the customer
(McGhie, 2012). Westpac Bank and its
services have occupied a reputable position
in the market. This reputation has been
gained because company try to maintain the
trust of its customers through its reliable
services.

REFERENCES
 Bhasin, H. (2018) Marketing Strategy of Bank of America –
Bank of America Marketing Strategy [Online]. Available from
https://www.marketing91.com/marketing-strategy-bank-ame
rica/
[Accessed 28 August 2019]
 McGhie, A. (2012) Brand is a Four Letter Word: Positioning
and the Real Art of Marketing 1st ed. U.S: Advantage Media
Group.
 Mordor Intelligence (2019) Life & Non-Life Insurance Market
in Australia - Trends, Industry Competitiveness, and
Forecasts to 2022 [Online]. Available from
https://www.mordorintelligence.com/industry-reports/life-no
n-life-insurance-market-in-australia
[Accessed 28 August 2019]
 Nasdaq (2018) Competitor Industry: Commercial Banks
[Online]. Available from
https://www.nasdaq.com/symbol/wbk/competitors [Accessed
28 August 2019]