Lincoln Financial Group (A)

Amira AthimniMeriem Ben YedderMohamed Omar ElgindiReem NassarRym Belhadj Pr. Marco Protano

-Marketing Strategy-

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Executive Summary

The strategic opportunity is to be “a standalone integrated distribution company that would house all of Lincoln’s wholesaling efforts”

Customers are the most critical C. LFG has to satisfy customer needs and wants if it wants to maximize its market penetration

The Strategic alternatives are :• Centralize distribution to its top management team.• Aggregate the individual distribution channels under a single

company• Maintain the existing strategy

• Our strategic alternative will be Aggregating the individual distribution channels under a single company, LFD.

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Protano 8 C’s

Category LFG is operating in the financial services category

High attractiveness

High risk

Distribution channel members have a wide range

of products available, thus, they will choose

the best products to offer to their

customers.

High risk

Fierce competition

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Company

• LFG was first a life insurer diversified financial services provider, through M&A.

• Core competencies: the life insurance business in 2000, 46% of earnings.

• Annuities: LFG was a market leader in the variable annuity products.

• Investment management: mutual funds and managed accounts.

Protano 8 C’s

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 • Customers are the distributors of financial products

and services B2B Banks, independent brokers, wirehouse dealers and MGAs.

• LFG customers needs and wants: Eager for information about the products & services

in order to sell it the right target customer educate themselves on these products by going online.

To begin offering packages of financial products and services to their customers more coordinated approach

Customer/Consumer/Center of influence:

Protano 8 C’s

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Competition

Protano 8 C’s

Financial products and services manufacturers:

LFG has over 10% ROEAXA financial = over 20% ROENationwide and American General= over 15% ROE

Since the category is attractive, and our performance based on the ROE is average LFG has to try

harder and come up with a new strategy.

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LFD is a great concept that will achieve the customer intimacy strategy chosen by Boscia. Change the negative view of LFG distribution, since MGAs are not happy with the compensation plan offered by LFG nor the the lack of coordination between the Lincoln manufacturing companies . The wholesaling quality was not the same in the different business units The new distribution structure is a good move in order to better organize distribution.

LFD concept…

This tactic Assures a more coordinated structure

Case questions

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Deliver a superior customer value by tailoring offerings to match exactly the demand of its customers ( Distributors).

Information about the products and services offered: Financial advisors need to persuade them to invest in funds persuasion process.

help customers to identify and sell the right product to the target market.

- Medusa solution oriented sales involves:Hearing the objectives of the target audience and crafting a solution for it.Recognizing when it doesn’t have a solution and providing them with a better alternative.

A customer intimacy approach…

The solution oriented sales is all about Best customer relationship, not all customers require the same level of

service or will generate the same revenues LFG needs to empower its people to achieve it.

Case questions

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If the number of LFG touch points increases customers’ loyalty toward LFG will increase too: all of the physical, communication and human interactions that the company’s customers will experience over their relationship lifecycle with the company, will make them eager to have more LFG’s products on their shelf.

Creating and retaining customers…

Incentives are not permanent To be loyal customers need constant

involvement from LFG.

Case questions

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The actual business units’ organization led to missed opportunities:

Different quality of wholesalingNo coordination between the different

manufacturing companies

Wholesaling efforts under one umbrella…

A better coordination between the various product groups as among the MGAs better selling performance + customer satisfaction

Case questions

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“ If this is such a great idea, then why isn’t there a single other company out there doing it” If a competitor is already doing it why do we want to copy it? How will it differentiate us ?

- Managers are afraid of losing control over the sales, and not being connected to the field to have feedback from its customers Boscia should have reassured its team about the coordination that will happen between LFG and LFD, and the continual feedback that they will have.

Reactions toward Boscia’s Decision…

The negative reactions led to hiring a consulting firm to better evaluate the idea a more specified strategy that will differentiate

LFG from other competitors by giving them a unique benefit.

Case questions

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Strategic Alternatives:

Increase Profitability

Solution oriented sales

Fits better with the customer intimacy model

Centralize the distribution

Aggregate the individual distribution channels under

a single company

Continue with the existing strategy

Increase profitability

through customer intimacy

model

• Increase Profitability• Decrease costs Not innovative / Not creative

• No change • Not fulfilling customer

satisfaction Risk of loosing market share

S.I.V.A

SolutionInformation & Incentives

Value Access

Implement the

solutions-oriented

sales tactics.

Offering product

packages

*Direct communicatio

n with the customers

Increase the number of

touch points.

*Fast feedback from the

customers.

• Focus on differentiating

our products by:- Providing the best product

services

- Better quality

- High reliability on the company from customers

- Empowering MGAs improve

the compensation

plan.

Improved accessibility to products

- Availability of variety products

- Faster response to customers'

need

-Build IS

Our strategy is to build customer Intimacy.Tactics which will translate the strategy as follow…

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