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.

 

Who is your relative? 1+1=3, make synergy effect.

Be proactive Save the relationship coca cola continuously invested in

advertisement, publicity, branding

Rabbit vs. tortoise

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.

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.

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.

AB Bank

Stationary ,advertisement and publicity

27,218,559

44,720,259

64,989,223

Pat profit aftertax)

532,186,349

1,903,493,845

2,300,621,640

Earnings per share 93 85.37 103.18

Annual report up to 2008. Valuation date,31 December 2008. Industry analysis,2006 full year and 2007

(unaudited). Assumptions were made.

Gross premium sales. Profit before tax.

Wight avg. 26.75 of consumer survey.

Poor Moderate

Good weight

average

weighted average

Standard rating

1 8 4 2 0.125 22 2.75 Poor/no 1

2 9 5 0 0.125 19 2.375 Moderate 2

3 0 0 14 0.125 42 5.25 Good/yes 3

4 10 2 2 0.125 20 2.5

5 9 3 2 0.125 21 2.625

yes no 0.125 0

6 4 10 0.125 34 2.75

7 2 12 0.125 38 2.25

8 14 0 0.125 14 5.25

26.75

.3125

1 2 3 4 5 6

Tk in million

2004 2005 2006 2007 2008 2009

Profit after Tax 51.98

70.43

80.86

163.19

245.07

265.97

Net Premium Income

233.15

267 327.2

451.02

627.21

672.73

advertisement 29.760 25.0044 24.81

Year      

net profit/gross premium

advertising to gross prem.ratio

adv/net profit

2009-10 15.42% 1.65% 10.70%2010-11 16.04% 1.08% 6.71%2011-12 16.32% 0.83% 5.08%

Revenue SourceSales

RevenueMarketing

Investment ROMI

Existing Customers1,803,605,70

0.00 N/A N/A

Portion due to marketing402,855,700.

00 11,324,160.00 35.57

Up-selling to Existing Customers

40,285,570.00 8,400,000.00 4.80

Customer Rescue20,142,785.0

0 633,600.00 31.79

New Customers 4,028,557.00 782,280.00 5.15

Branding40,285,570.0

0 7,087,160.00 5.68Other Marketing Investments

80,571,140.00 1,540,000.00 52.32

Totals/Averages588,169,322.

00 29,767,200.00 19.76

Newspaper Ad 11,324,160 (Existing customers)

Magazine Ad 6,33,600 (Customer rescue)

TVC 7,087,160 (Branding)

RDC 7,82,280

Billboards 8,400,000 (Up selling)

Making of the Audio Visuals 1,540,000 (Other)

Grand Total (BDT) 29,767,200

In case of product ,there is decline and in case of brand there is no decline.

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.

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.

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

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

Survey results

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

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.

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.

Strengths: awards, recognition, trust of corporate house

Weaknesses: Historically no publicity

Opportunities: Potential market

SO strategies: branding to penetrate the market.

WO strategies: advertisement.

Threats :Competition, new entrants

ST strategies: Corporate relation, new innovative product and wide communication.

WT strategies: Perform some publicity, and be first mover (pioneer insurance sponsors news bulletin).