1 / 37

A finexp Production TM

A finexp Production TM. Disclaimer.

lou
Download Presentation

A finexp Production TM

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. A finexp Production TM

  2. Disclaimer Finexp does not provide guarantee, warranty on analysis and the sources of information of analysis and any decision on the basis of analysis. The analyses and its source are assumed to be true fair and based on theoretical and empirical experience. Hence Finexp is not liable in explicit or implicit terms. Moreover any decision is subject to market risk and complete diversification or guaranteed investment return is not possible.

  3. Insurance Company and Marketing industry on investment

  4. Many man, many minds. But one thing :Relationship keeps man alive.

  5. If you are a business • Who is your relative? • 1+1=3, make synergy effect.

  6. suggestion • Be proactive • Save the relationship • coca cola continuously invested in advertisement, publicity, branding

  7. Growth vs. competitors Rabbit vs. tortoise

  8. Result

  9. Integrated business promotion • Three criteria must be met for a communication to be classified as advertising. • The communication must be paid for • The communication must be delivered through mass media • The communication must be attempting to persuade customers to try the product.

  10. 6000 crore insurance industry and rising. • The Insurance Market in Bangladesh now consists of two state-owned corporations, forty three and seventeen private sector general & life insurance companies respectively, a total of 62 insurance companies. Thus the insurance sector in Bangladesh has grown up substantially and deepened remarkably with number of companies in both life and general segments. With the expansion of size of the insurance market, the volume of assets of the industry has also increased substantially.

  11. Supply demand gap and competition • Banking sector: In Bangladesh ,in 90s janata bank ,agrani bank and many other banks were doing well without any brand promotion ,the reason was that the demand was more and supply was less. But now a days the scenario is different. More firm is there and due to intense competition and increase of supply ,consumer is more like to go for brands.

  12. AB BANK

  13. Advertisement cost

  14. EPS

  15. PAT profit after tax)

  16. Sources of data Annual report up to 2008. Valuation date,31 December 2008. Industry analysis,2006 full year and 2007 (unaudited). Assumptions were made.

  17. Key indicators and bases • Gross premium sales. • Profit before tax.

  18. Result of consumer survey • Wight avg. 26.75 of consumer survey.

  19. Calculation

  20. Trend

  21. Trend in expected advertising cost

  22. Sensitivity analysis

  23. Return on marketing investment

  24. Break down assumptions

  25. Sales revenue from break down :assumption

  26. Top brands

  27. Brand life cycle

  28. In case of product ,there is decline and in case of brand there is no decline. Brand value vs. marketing investment

  29. Brand life cycle • Introduction -- During this stage, the product is introduced into the market and publicity campaigns are launched to promote its functions, features, quality and usage and attract customers to try out or buy the product. • Growth -- The branded product begins to build up its following among consumers during this stage. The cumulative effect of marketing begins to show and the market share expands.

  30. Cont. • Maturity -- Brands or products in the maturity stage have a considerable market share and have reached their sales peak, with growth beginning to slow down. Brand influence at this stage is at its height and the kinds of marketing strategies to be adopted are many.

  31. cont. • Decline -- Brand awareness is high but sales are on the decline. Other characteristics of this stage include falling prices, weakening competitiveness and emergence of new products. • The same product or the same company may experience different life cycles in different markets

  32. Bottom line Survey results Survey result, weighted average 26.75 means there is demand of advertisement in the industry and already green delta has an positive impact in the industry. It can be increased through systematic publicity

  33. Brand value • Based on research based method ,brand value of green delta is BDT 4,699 Million. This value can be increased through marketing investment.

  34. Free cash flow to equity Value of share:835 . and market price was about 1982. cash flow is expected to be positive, hence investment in marketing will not hamper their productivity. but for superior growth and they need to spend on promotion and their expected retention rate 45 % (recommended )so that this amount can be reinvested for growth. Green delta currently paid good dividends.

  35. Marketing return on investment • If green delta insurance company limited currently invest 2.97 core in advertisement ,based on logical assumption it is expected that about 19 % MROI will be generated.

  36. Tows matrix

More Related