New York Life - Marketing Management Case Analysis Essay example

912 Words May 21st, 2011 4 Pages
BAB25 – Case analysis 2: New York Life and Immediate Annuities
Unlike the old days where a retiree could rest assured that they could live out the rest of their life on their pension and social security checks, the retirees of today receive their pensions paid out in a lump sum that takes the place of the pension check, but encompasses the total amount a retiree has to live on until they pass away. This creates uncertainty in the amount a retiree can spend per month, and if the total amount is sufficient to last them until they pass away. Immediate annuities help to create certainty in the financial situation of retirees. While retirees can be certain that they will receive a social security check each month, the amount of income they
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We can hence position the product by presenting it as a safe solution adapted to one's own needs. Differentiating the product from those of NYL's competitors is important; potential clients of GLI annuities should understand the superior benefits of the product. Building on the company's reputation, GLI annuities should be promoted as a long term investment from a responsible company, concerned with its customers and providing long term relations between agents and customers. In order to reach a greater public and change customers' mindsets, we need to strengthen the core components of the company. For this, we believe that the focus should be put on NYL's agents rather than collaboration with investors that would force NYL to compromise on its values and products. While the pool of agents is already significant, only 4000 of them sold GLI annuities, as only 40% of the 11,500 agents had received the training specific to the product (Rotemberg & Gourville, 2010, p.12). Therefore we believe that the GLI business would grow if all agents are trained to improve their knowledge of the products and hence their services to customers. We believe that the pool of agents should be increased gradually as number of customers grows in order to sustain the aforementioned values of NYL while the price of GLI annuities should not be changed, considering the customized services NYL provides. Instead, they need to focus on

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