RACV Car Insurance
Firm infrastructure: • Highly developed information systems •Management support for innovation and creativity •Corporate reputation Human Resource Management: • Training and development
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Service • Superior product knowledge and advice • Easy to understand products/policies
Competitive Advantage (Supply) Sustainable Competitive Advantages – Secondary
Total Customer Responsiveness
Differentiation not just about the product, it embraces the whole relationship between the supplier and the customer. Coles – “Down, Down Prices are down” Well known and used brand across wide range of commodity items; individualised marketing based on data collection. RACV – “If you need me, I want you to call me, I‟ll be there” The motor drivers friend here to solve any motoring issue 24/7 AMMI – “Lucky you‟re with AAMI” Focussed on insurance you can feel safe to have your insurance with us
Evaluate costs and benefits of differentiation By implementing Multi policy discounts By implementing membership discounts
Key strategy Elements
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Competitive Advantage (Demand)
THE PRODUCT What Needs does it satisfy? Providing insurance to different and unique vehicles Third party‟s full insurances Providing complete care of car Providing quotes and claims for car insurance FORMULATE DIFFERNTIATION STRETERGY Select Product positioning in relation to product attributes Location Website Social Media (Advertisement)
Demographics of Customers Old age owners of veteran and vintage cars Family and Luxury oriented Car owners Working class car owner

Psychological Customer Behaviour Safety of Property and Family Discount, Loyalty card and saving driven customers Prestige oriented car owners
24/7 Contact Paperless claims Flexible payments Benefits^
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Lifetime guarantee on repairs
Roadside assist • • • •
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Price leadership: 2012 Audi R8 2012 Toyota Kluger 1973 VW Beetle
Competitive Advantage Car Insurance
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Competitive Advantage Car Insurance Providers
• Coles • Part of the Wesfarmers Group • One of Australia‟s largest retailers • Linked to FlyBuys • Large network of service providers • RACV • Founded in 1903 • Peak advocate for motoring related issues • Over 2 million members • AAMII • One of Australia‟s largest insurers • Over 2.5 million policy holders • First to introduce paperless claims.
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Emphasis on branding Advertising Design Service Quality New product development
Competitive Advantage (Demand)
THE CUSTOMER By what criteria do they choose? Relate patterns of customer preferences to product attributes Various types of cars insurances like Comprehensive Third party fire and theft insurance Third party damage insurance Veteran, vintage and classic vehicles insurance Comprehensive motor car insurance Third party damage property motorcycle insurance Complete care motor insurances Quick service Complete care of car Claims and emergency assistance Conveniences of multiple properties owners by multiple properties insurance What motivates them? Safety of family and car Safety from third party charges Value and Safety from having car insurance
Sociological Customer Behaviour Family and friends Culture and Society influences
What price premiums do product attributes command? Discounts and Savings premiums Rewards Loyalty Multi policy discounts Benefits and rewards of Membership
Ensure customer / Product compatibility Ensure customer by providing other car related services like Car driving school Car safety car warranty vehicles maintenance Roadside assistances
Select target Customer group Young Generation Car owners Family car owners Old age Car owners Discount driven car owners
What are its Key attributes? Comprehensive Car Insurance Third party car property damage Complete care Third party fire and theft Car insurance for veteran, vintage and classic Vehicles Quotes Motor vehicles Claims and emergency assistance
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X 500 190
1,265 526 268
Competitive Advantage Nature of Differentiation
Intangible Differentiation
Coles – Our brand is „all encompassing‟; you‟re part of our family; we‟ll tailor our marketing you based on our understanding of you. (Good) AAMI – Heavily marketed; sense of security due to high profile in the insurance market; feeling of rewards and benefits. (Better) RACV – Specialist motoring body which implies credibility; feeling of being in a club; we‟ll help you stay on the road because we know cars. (Best)