6.2 Price Strategy Essay

273 WordsOct 22, 20132 Pages
6.2 Price strategy 6.2.1 Price policy The insurant must aged 1 to 8 is eligible to join, while education fund will not be affected if insurant die or become disabled. In addition, with the increase of insurant’s age, the insurance costs must be risen. In the meanwhile, when set up the price, HSBC needs to consider about competitor’s products, offering discount to customers, and encourage the group purchase to make the product much more competitive. For the short term strategy, study abroad education insurance could enter the Chinese market by acquiring an already existing customer portfolio from database of HSBC. Moreover, HSBC could achieve customer by direct marketing program, typically integrated by direct mail, direct call, direct sales, and distribution of sales brochure. For the quantitative perspective, according to the Chinese overseas study service center, in 2012, the number of students going abroad, studying oversea is more than 200000, and the annual increase is to 20 %(). Moreover, based on questionnaire for education insurance of potential customers, around 10% of Chinese young Chinese families plan to arrangement for their Children study abroad in the future. Therefore, HSBC estimates to gain 50,000 customers in first year, Fix c The fix cost for HSBC‘s education insurance consist of IT supports (that is computer system, software development, customer support and other such IT overhead cost), office rental, staff training and such fixed costs were estimate Variable cost Channel | Unit cost | Prospects Reached | Response Rate | Direct Mail | ¥2 | 2000000 | 1.0% | Direct Call | ¥0.50 | 3000000 | 2.0% | Direct Sales | ¥8.00 | 500000 | 30.0% | Sale Brochure | ¥1.00 | 1000000 | 1.5%

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