Marketing department reorganisation
The client is a major Life Insurance Company in the UK. They provide pensions, protection and investment products. Distribution is primarily through intermediaries (IFA’s, Tied agents and JV’s) with a small direct sales force.
A number of market trends have created the need to reduce costs, namely:-
- Cost of regulation – ever increasing compliance requirements driving costs
- Changing regulation:-
- “Sandler Products” – introduction of simpler low priced products expected to replace many traditional (more expensive) products
- De-polaristion – transparent cost and commission leading to lower prices
- Competition – a change in the relative power between distributors and manufacturers is driving down profit
- Increasing consumer awareness – creates pressure on prices
As a result of which the client commissioned a leading Strategy Consultancy to review their business model and make recommendations on how they should compete in the future. The report focused on the need to reduce the cost of distribution and made a number of proposals as to how the Sales and Marketing department could reduce these costs.
The client wished to implement these proposals themselves but early on in the process decided they needed some independent help.
The client asked us to help them manage the implementation of the proposals and deliver the savings.
Key Project Activities
Establishment of a change programme with four key objectives:-
- Reduce the regional footprint and reduce costs
- Segment the customer service offering and reduce costs
- Outsource the provision of a direct sales force through a joint venture
- Re-organise the marketing department around the new customer service offering and reduce headcount
Programme management and facilitation with the key stakeholders.
The key benefits were:-