|
New Product Development Research
Client
The client is a multi-national insurance corporation that markets
health, life, and disability insurance, and annuity products to
individuals and employers.
Challenge
Increasing
premium costs have had a negative effect on new sales and business
retention in both the individual and employer markets. The
corporation was seeking to develop a health insurance product that
would provide major-medical coverage at an affordable price for its
markets.
Research Application
The corporation contracted with
McGrath Marketing to assess demand for the revised health insurance
in both the individual and employer markets. McGrath Marketing
conducted focus groups with employers and consumers. Focus group
findings revealed demand for a non-traditional, low cost health
insurance product, predominantly with employers in small and
mid-size firms. A telephone interview survey of employers was
undertaken to statistically confirm product demand. Due to the
apparent lack of consumer interest, no additional research was done
in the individual market.
Because the
quantitative research findings validated product demand in the
employer market, additional qualitative research was done to
determine the pricing strategy and product positioning for the
small and mid-size business segments. Focus groups were also held
with members of the corporate sales team and major sales agencies
to develop an effective promotion strategy for this non-traditional
type of health coverage.
Outcome
The new product was introduced to
business customers on a state-by-state test market basis in 1st
quarter 2002. Due to good sales, the product is now a part of the
standard portfolio, available in all markets in which the
corporation is licensed to sell.
back
|
