Westpac Insurance Services: Marketing Analysis and Strategies Report

This report provides a comprehensive marketing analysis of Westpac Banking Corporation's insurance services in the Australian market. It begins with an overview of Westpac's services, including car, home, and business insurance. The report then delves into the competitive landscape, highlighting key players like Commonwealth Bank and NAB, and assesses the external environment using PESTLE and Porter's Five Forces frameworks. It examines political, economic, social, technological, legal, and environmental factors impacting Westpac. The analysis also includes market segmentation, target market identification (those purchasing vehicles, houses, or starting businesses), and a positioning statement. The conclusion emphasizes Westpac's strong market position and the effectiveness of its marketing efforts. The report is a group assignment for the HI5004 Marketing Management course, fulfilling the requirements of a semester-long marketing plan project.

Running head: MARKETING
Westpac
Marketing
8/29/2019

MARKETING 1
Table of Contents
Introduction................................................................................................................................2
Task 1.........................................................................................................................................2
Overview of Service...............................................................................................................2
Competitive Information........................................................................................................2
Environmental Scanning........................................................................................................3
PESTLE Analysis...............................................................................................................3
Porter Five Force Framework............................................................................................4
Demand Forecasted................................................................................................................5
Market Segmentation.............................................................................................................5
Target Market.........................................................................................................................5
Positioning Statement.............................................................................................................5
Conclusion..................................................................................................................................6
References..................................................................................................................................7

MARKETING 2
Introduction
Marketing is said to be the set of activities adopted by the business for the promotion of
service or product to the customer. Marketing is comprised of advertising, selling, and
delivering services to the end user (Kotler, Burton, Deans and Armstrong, 2015). The aim of
this section of the report is to discuss regarding the environment, industry, and competition
landscape of Westpac Bank and its insurance service in the Australian market. In addition to
this, the paper is highlighting the strategies that Westpac has adopted to sell its insurance
services properly like STP Analysis that is Segmentation, Targeting, and Positioning.
Task 1
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 introduced 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). Westpac bank offer different types of insurance like car insurance, home
insurance, content insurance, travel insurance, business insurance, etc. It offers quick claims,
options for flexible payment and variety of General Insurance to its clients. The motive
behind offering range of insurance services to the clients is to help them in asking for claims
at the time of any uncertain activity, etc.

MARKETING 3
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 Force - The parliament of Australia approved the Major Bank Levy Bill in the year
2017 that is focused on mandating a 0.06 levy on the banks with around $100 billion in the
total liabilities (Parliament of Australia, 2017). Westpac is included in the five banks of
Australia which also lied under this command. The drive of the government behind this
regulation is decreasing the budget deficit in the short run and reinforces the organizational
fiscal position.
Economic Force - Chinese market investment in the Australia is impacting the property price
due to which people are unable to purchase the property in the country. But, the Chinese
buyers have no influence on the prices of property (Chau, 2017).
Social Force - Increasing demand for affordable housing services. As it is known that the
productivity in the Australia has increased and getting benefit from the higher prices for the
export commodity because of average income, 'resources boom', and increased household
wealth (Parliament of Australia, 2019). It is expected that households have to invest increased
portion of their income and wealth on enhancing the housing quality.
Technology Force - Digital transformation of product and service has resulted in reducing
paper work and enable easy banking and insurance Services.

MARKETING 4
Legal Force - The legal environment of Australia is becoming challenging which is impacting
the business operations. The introduction of different regulations such as Bank Levy Bill has
impacted the Westpac performance.
Environmental Force - Environmental criticism resulting in alteration in the practices of
business. The increasing global warming and climate change issues are impacting not just the
retail or mining businesses, but also impacting Banking industry. The bank in Australia is
involved in reducing their carbon emission by reducing the use of electricity.
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 Substitute product 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 increased 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

MARKETING 5
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
The market segmentation strategy is adopted by Westpack bank on the basis of four
segmentation variables that are explained as follows: 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 split the customer base based in their lifestyle, attitude,
etc. In addition to this, under behavioural segmentation, the bank divide the market
depending on their decision making pattern, interest level, etc.
Target Market
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).

MARKETING 6
Positioning Statement
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.
Conclusion
The above section of the report has presented the environmental analysis, industry analysis,
and competitor analysis of Westpac Bank which is one of the leading banks of Australia in
order to identify its position in the market. The analysis has highlighted that the bank is
dealing with the immense pressure from the economic, political, and social factors of
environment analysis which has impacted its performance too. However, its strong and
leading position in the market has supported it in surviving in this competitive market and
maintains its brand identity. Hence, in the conclusion it could be said that the bank is known
in the market and its marketing efforts are showing results.

MARKETING 7
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-
america/ [Accessed 28 August 2019]
Chau, D. (2017) Are Chinese buyers driving up Australia's housing prices? [Online].
Available from https://www.abc.net.au/news/2017-10-06/impact-of-chinese-buyers-on-
australian-house-prices/9021938 [Accessed 28 August 2019]
Kotler, P., Burton, S., Deans, K., and Armstrong, G. (2015) Marketing 2nd ed. Australia:
Pearson Higher Education.
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-non-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]
Parliament of Australia (2017) Major Bank Levy Bill 2017 [Online]. Available from
https://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/Bills_Search_Results/
Result?bId=r5896 [Accessed 28 August 2019]
Parliament of Australia (2019) Factors influencing the demand for housing [Online].
Available from
https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Former_Committees/
hsaf/report/c04 [Accessed 28 August 2019]

MARKETING 8
Westpac Banking Corporation (2018) Accessible products and services [Online]. Available
from https://www.westpac.com.au/about-westpac/westpac-group/corporate-governance/
Accessibility/accessible-products-services/ [Accessed 28 August 2019]
Westpac Banking Corporation (2019) About us [Online]. Available from
https://www.westpac.com.au/about-westpac/ [Accessed 28 August 2019]
Yousafzai, S. and Yani-de-Soriano, M. (2012) Understanding customer-specific factors
underpinning internet banking adoption. International Journal of Bank Marketing, 30(1),
pp.60-81.