Marketing Mix of Allianz and 7Ps (Updated 2024)

The Marketing mix of Allianz analyses the 7Ps of Allianz, which includes the Product, Price, Place, Promotion, People, Physical Evidence, and Process of Allianz. Allianz is a global company that deals in financial services, including asset management and insurance. It was founded in 1890 in Berlin, Germany, by Wilhelm von Finck and Carl von Thieme. It has its headquarters in Munich and has various subsidiaries. According to Forbes magazine, Allianz has become one of the world’s largest European companies in both financial services and insurance. Allianz expresses its brand personality through its integrity, commitment, and competitiveness. Its various competitors are as follows.

• MetLife
• AXA Group
• AIG
• AON

Allianz is a non-tangible brand that believes in the value proposition, establishing an emotional connection with every participant and a sound network, including customers, stakeholders, agents, brokers, and new customers and employees.

About Allianz

• Type: Multinational financial services company
• Industry: Insurance and asset management
• Founded: February 5, 1890, in Berlin, Germany
• Founders: Carl von Thieme, Wilhelm von Finck
• Headquarters: Munich, Germany
• Area served: Worldwide
• Current CEO: Oliver Bate
• Number of employees: Over 159,253
• Major products: Insurance, asset management, banking, and retirement solutions

Allianz Product Strategy

Allianz started its company in Germany with products like accident policies and marine policies. After going international, it became the first global brand that dealt with corporate policies, and by the year 1914, it became the most prominent maritime insurer in its home country. In 1905, the brand Allianz obtained a license to offer fire insurance, and in 1911, it also dealt with machinery breakdown policies. In 1918, the company decided to deal in new products: automobile insurance, and by 1922, it was offering life insurance policies.

The Product Mix of Allianz in 2024 is as follows (Source).

1. Insurance Products: Life Insurance: This includes various types of life insurance policies, such as term life insurance, whole life insurance, and universal life insurance; Property and Casualty Insurance: This includes auto insurance, home insurance, and various commercial insurance products; Health Insurance: Allianz offers health insurance plans for individuals and businesses, which may include medical, dental, and vision coverage; Travel Insurance: They provide travel insurance products to protect travelers against unexpected events while abroad; Specialty Insurance: Allianz may offer specialized insurance products for unique needs, such as pet insurance, event insurance, and more.
2. Asset Management: Allianz Global Investors: Allianz operates an asset management division that offers a wide range of investment products and services, including mutual funds, exchange-traded funds (ETFs), and institutional investment solutions.
3. Retirement and Pension Products: Allianz provides retirement planning and pension products, which may include annuities and pension funds.
4. Banking and Financial Services: Allianz may offer banking services and financial products, such as savings accounts, fixed deposits, and investment products.
5. Risk Management: Allianz offers risk management solutions for businesses, helping them assess and mitigate various risks they may face.
6. Financial Planning Services: They may provide financial planning and advisory services to individuals and businesses to help them achieve their financial goals.

Allianz Pricing Strategy

Because of the premium nature and value of the brand, it generally uses a premium pricing policy. This higher price also helps develop specific services and products acceptable to various clients in monetary value terms. The pricing policy includes multiple factors to change customers to loyal business clients.

Here’s a breakdown of a significant part of their pricing and marketing strategy.

1. Risk-Based Pricing: Allianz utilizes a risk-based pricing approach, which involves assessing the individual risk profile of each customer. Allianz sets premiums that align with the perceived risk by analyzing factors such as age, health, driving history, and location. This strategy ensures that customers pay premiums commensurate with their level of risk, promoting fairness and accuracy in pricing.
2. Actuarial Expertise: Allianz leverages its extensive actuarial expertise to determine pricing structures that cover potential claims and generate sustainable profits. Actuaries use data analysis and statistical models to predict future claims and set pricing levels that balance customer affordability with company profitability.
3. Customization and Flexibility: Allianz recognizes the diverse needs of its customers and offers a range of insurance products and coverage options. This customization allows customers to tailor their policies to match their unique circumstances, enabling them to pay for the required coverage.
4. Bundling and Cross-Selling: Allianz employs bundling and cross-selling strategies to encourage customers to purchase multiple insurance products. For example, by offering discounts or incentives for bundling home and auto insurance, they enhance customer loyalty and expand their share of wallets.
5. Transparency and Communication: Allianz strongly emphasizes transparent pricing and effective customer communication. They communicate the factors influencing premiums and educate customers about how they can potentially reduce their insurance costs through safe driving, preventive measures, or risk mitigation.
6. Competitive Positioning: Allianz evaluates its pricing in the context of the competitive landscape. They aim to position themselves competitively while maintaining the perception of quality and reliability in their products and services.
7. Continuous Monitoring and Adjustments: Pricing is not a static process for Allianz. They continuously monitor market trends, customer behavior, and claims data to adjust their pricing strategy as needed. This dynamic approach ensures that they remain responsive to changing market conditions.

Allianz Place Strategy

Allianz is an international brand and serves more than global customers in seventy countries through international services with its numerous branches, offices, and nearly 180,000 employees. The company first became international after opening an office in London in the later part of the 19th century. It has branches in other locations in the USA, Spain, Brazil, Italy, France, and numerous other countries.

To provide the best possible services to its clients, the company has completed a thorough research on each region and then set up the best possible branches so that its clients are not inconvenienced. It has developed a global market through effective distribution channels, including competent sales officials, direct marketing efforts, company contacts, and superior services. Various Allianz products are distributed through an efficient network of distributive channels operated by full-time agents.

Here are crucial elements of Allianz’s place strategy:

1. Extensive Global Presence: Allianz has a widespread network of offices, branches, and subsidiaries in numerous countries worldwide, allowing them to serve customers in diverse markets. This global presence enables them to tap into a broad customer base and respond to regional needs effectively.
2. Multi-Channel Distribution: Allianz utilizes a multi-channel distribution approach, including physical agents, brokers, bancassurance (partnering with banks), and online platforms. This strategy ensures customers can access Allianz products and services through their preferred in-person or digital channels.
3. Strategic Partnerships: Allianz forms strategic partnerships with banks, financial institutions, and other businesses to expand its reach and offer insurance and financial products through these partners. These collaborations enhance their distribution capabilities and increase their market share.
4. Digital Transformation: Allianz has invested significantly in digital technology and online platforms to provide customers with convenient self-service options and streamlined access to information and services. This digital transformation is crucial in meeting the evolving needs of today’s tech-savvy consumers.
5. Customer-Centric Approach: Allianz strongly emphasizes understanding and meeting its customers’ unique needs in various regions. They tailor their products and services to local market demands, ensuring customers receive relevant and culturally sensitive solutions.

Allianz Promotion Strategy

Allianz has set up some simple business goals, including gaining clients and holding on to them as customers through their efficient services. Its international promotional marketing strategy includes a push-and-pull strategy through advertisements, promotions, and other awareness programs. Sponsorship also plays a critical role in its marketing and sales strategy, so it regularly expands its sponsorship folio.

The brand has naming rights with a 43,000-seater football stadium, and its name, Allianz Parque, was announced after a contest on Facebook. Its other naming deals include Allianz Stadium, Allianz Park, and Allianz Riveria in Australia, London, and Nice. It also has other international sports platforms, like the Paralympic Games, Formula One, and Golf, for global brand ambassadors, sponsorship plays, and sponsorships. It has been associated with events like swimming and tennis, and in Ireland, its football league is officially named the Allianz National Football League. Lang Lang, a renowned pianist, is one of the global ambassadors of this famous brand.

Some Recent Video ads and Print ads of Allianz are:

Allianz People Strategy

The “People” marketing component of the Service Marketing Mix is crucial, especially for a company like Allianz, which operates in various services within the insurance and financial services industry. Here are some key points regarding the “People” marketing aspect of Allianz:

1. Highly Skilled Workforce: Allianz prides itself on employing a diverse and skilled workforce. This includes insurance professionals, financial advisors, customer service representatives, and support staff. Their expertise and knowledge in various insurance products and financial services are essential for delivering high-quality customer service.
2. Training and Development: Allianz invests heavily in the training and development of its employees. This ensures that their team is up-to-date with industry trends, regulations, and technologies. Continuous learning and development initiatives help employees to provide innovative solutions and personalized service to their clients.
3. Customer-Centric Approach: The employees at Allianz are trained to adopt a customer-centric approach. They focus on understanding each customer’s unique needs and strive to provide solutions that best meet them. This approach helps in building long-term relationships with customers.
4. Global Presence with Local Expertise: Allianz operates in multiple countries worldwide, and its employees bring in a rich mix of cultural and local market knowledge. This global presence, combined with local expertise, enables Allianz to effectively cater to the diverse needs of its global customer base.
5. Ethical and Professional Standards: Allianz employees must adhere to high ethical and professional standards. Integrity, honesty, and transparency are fundamental values that guide their interactions with customers, partners, and colleagues. This fosters trust and reliability in the services provided by Allianz.
6. Teamwork and Collaboration: The culture at Allianz encourages teamwork and collaboration among employees across different departments and geographies. This collaborative environment enables sharing ideas, best practices, and solutions, enhancing service quality and innovation.
7. Role in Corporate Social Responsibility (CSR): Employees at Allianz also play a crucial role in the company’s CSR activities, contributing to community development, environmental sustainability, and social welfare. This reflects the company’s commitment to economic success and social and environmental responsibility.
8. Customer Service Excellence: The people at Allianz are vital to delivering excellent customer service. From the initial contact point through claims processing to ongoing account management, the emphasis is on providing a seamless and positive experience for the customer.
9. Leadership and Management: Allianz’s leadership and management teams are composed of experienced professionals who lead by example. Their strategic vision and commitment to excellence drive the company’s success and ensure the organization remains focused on its core values and objectives.

Allianz Process Strategy

The “Process” component of the Service Marketing Mix is pivotal for a company like Allianz, which operates in the insurance and financial services sector. It refers to the mix of Allianz and the company’s offices, methods, and procedures to deliver its services efficiently and effectively to customers. Here are some key points regarding the “Process” aspect of the Allianz marketing mix:

1. Customer Onboarding: Allianz has streamlined its onboarding process to make it as smooth and efficient as possible. This includes easy application processes for insurance policies, financial products, and services, often enabled through digital platforms for speed and convenience.
2. Claims Processing: Allianz is known for its efficient and transparent claims processing procedure. The company utilizes technology and human expertise to ensure that claims are processed quickly, accurately, and fairly, minimizing customer stress and wait times.
3. Risk Assessment and Management: Allianz’s risk assessment and management process is highly sophisticated, employing advanced analytics and data modeling to price insurance products accurately and manage risk. This ensures the company can offer competitive pricing while maintaining financial stability.
4. Customer Service and Support: Allianz has a comprehensive customer service and support process in place, including multiple channels for communication, such as phone, email, and online chat. These processes provide timely and helpful support to resolve customer inquiries and issues.
5. Digital Transformation: Allianz is continuously improving its processes through digital transformation. This includes adopting digital tools and platforms for policy management, claims filing and tracking, and customer communication, making it easier for customers to interact with the company and manage their policies.
6. Policy Renewal and Adjustments: The company has straightforward processes for policy renewals and adjustments, allowing customers to update their coverage as their needs change easily. This flexibility is critical to maintaining customer satisfaction and loyalty.
7. Feedback and Continuous Improvement: Allianz has processes to gather customer feedback systematically and leverage this input for continuous improvement. This includes surveys, customer interviews, and analysis of customer service interactions to identify areas for enhancement.
8. Compliance and Regulatory Adherence: The processes at Allianz are designed to ensure full compliance with regulatory requirements and industry standards in each market they operate. This is crucial for maintaining trust and avoiding legal or financial penalties.
9. Training and Development: Internal training and development processes ensure that Allianz employees have the necessary skills and knowledge to perform their roles effectively, essential for delivering high-quality service.
10. Technology and Innovation: Allianz strongly emphasizes leveraging technology and innovation in its processes. This includes using artificial intelligence, machine learning, and blockchain for improved efficiency, security, and customer experience.

Allianz Physical Evidence Strategy

The “Physical Evidence” component of the marketing mix. Allianz believes the Service Marketing Mix refers to the tangible and intangible elements that customers use to evaluate the service quality before, during, and after a purchase. Physical evidence plays a crucial role in building trust and credibility for a company like Allianz, operating in the insurance and financial services industry. Here are some key points regarding the “Physical Evidence” aspect of Allianz’s marketing mix:

1. Corporate Branding: Allianz’s logo and corporate branding are consistent across all platforms and materials, creating a solid and recognizable visual identity. This includes their online presence, promotional materials, and physical offices, contributing to a professional image that instills customer confidence.
2. Online Platforms and Websites: The design, usability, and content of Allianz’s online platforms serve as physical evidence of their commitment to providing accessible and comprehensive services. These digital assets are designed to be user-friendly, informative, and secure, reflecting the company’s values and professionalism.
3. Physical Offices and Locations: Allianz’s physical offices and locations, including their headquarters, branch offices, and service centers, are designed to be welcoming and professional. These spaces’ layout, signage, and overall design contribute to a positive customer experience and serve as a tangible brand representation.
4. Marketing and Promotional Materials: Brochures, flyers, business cards, and other promotional materials provided by Allianz are designed with high-quality materials and attention to detail. These items offer tangible proof of the services and help convey the company’s commitment to excellence and reliability.
5. Customer Testimonials and Reviews: Published customer testimonials and reviews act as physical evidence of the quality of Allianz’s services. These real-life experiences shared by existing customers can significantly influence potential customers’ perceptions and decisions.
6. Official Documentation: The quality and clarity of official documentation, such as policy documents, contracts, and statements, are crucial. Allianz ensures these documents are professionally prepared and easily understood, reinforcing the company’s credibility and customer trust.
7. Awards and Recognitions: Awards and recognitions received by Allianz from reputable industry organizations are physical evidence of the company’s excellence and leadership in the insurance and financial services sector.
8. Community Engagement and CSR Initiatives: Allianz’s involvement in community engagement and corporate social responsibility (CSR) initiatives is often documented and shared with the public. These activities prove the company’s commitment to social and environmental responsibility.
9. Employee Presentation: Allianz’s employees’ professional appearance and demeanor in person and digital communications are physical evidence of the company’s values and professionalism. This includes uniforms, name badges, or any specific dress code followed by the staff.
10. Security Features: For an insurance and financial services company, security features, both physical (such as in offices) and digital (on online platforms), serve as critical physical evidence. They reassure customers about the safety of their personal and financial information.

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