Presentation to Investors April 2007 - Sanlam
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Presentation to Investors
April 2007
We will cover…
● The business strategy & how marketing strategy will assist in
achieving goals
● Where we have come from and what do we have to work with
● What is our destination, why and how will we get there
● What does the road map look like, some milestones
● What is our progress and how will we measure it
Sanlam vision
To be the leaders in wealth creation
and protection
Client centric
The key pillars of the business strategy
● Growth
● Cost management
● Capital management
● Broader financial services
● Transformation
| Empowerment
| Culture
| Brand
Relationship between the business strategy
and the marketing strategy
● The marketing strategy is an integral part of the business
strategy. It is one of the key drivers to ensure success of the
business objectives
● Marketing strategy is owned by the CEO
● Sanlam Ltd Exco is the ultimate custodian of “The Brand”
● The key focus is on client centricity, diversification and
transformation
Where have we come from ?
● Sanlam’s roots
| Empowering the Afrikaans nation.
| Often linked to NP and the Broederbond
| A significant icon of the Afrikaans rise to power
| Mutual association – privatised in 1988
| First real empowerment deal in the country with the sale of
Metropolitan to NAIL.
| Ubuntu BothoOur heritage
● Empowerment is in the DNA of the organization
● A long and powerful history of strength and stability
● Very South African
An Industry beleaguered
● With such a large share of the RA market Sanlam has been at
the forefront of the media pressure
● Sanlam continues to have a leading role in the industry reform
process
| Involvement with the Treasury in consultation around the
Statement of Intent & other changes
| Lizé as chairperson of the LOA
● Branding will NOT solve regulatory issues, but transforming the
business will go a long way. The Brand is not separate from the
business, it is inextricably linked.What is our destination?
● Client centricity as a strategic position
● Broadening from Life assurance to Financial services
(diversification)
● Appeal to all South Africans beyond our traditional base
(Empowerment and transformation)
Client centricity as a strategic position
● Operating in a commoditised industry
● Client centricity not unique, great execution is the key
● Expressed in “customisation of financial solutions for specific
individuals/clients”
● The transformation of the business model to meet consumer
requirements as evidenced by:
| Provision of value for money
| Need for increased transparency
| Regulatory pressures responding to consumer needsExpressing client centricity & customisation
● One Mother Brand - Sanlam
| Build on strengths
| Extend/stretch the Brand
| Wide range of markets served by the Brand
● Messaging to the market
| Financial solutions for specific clients
● Sub-brand strategy for retail sector
| Customisation and focus on specific portfolios based on
segments
● Institutional cluster, each business customises uniquely for
every client
● A client rewards programme to provide additional benefits from
being associated with Sanlam
Reality – a client rewards programme
● Coupled to financial health and education
● Key pillar in building both positioning of brand and credibility of
the organisation as client centric
● Value proposition tailored to meet the needs of specific market
segments, rather than the usual ‘one size fits all’ approach
followed by rewards programmes
o The current value proposition has been specifically designed for
the middle market
o Work underway on value propositions for the entry level, mass
affluent and agricultural segmentsReality objectives
• Help brokers build deeper relationships with core clients of the
Sanlam Group, thereby aiding acquisition and retention
• Respond to competitor offerings
• Respond to client requirements
• Encourage clients to use cost-effective ‘self-service’ and
electronic channels
• Incentivise clients to keep their personal details up-to-date
• Move Sanlam beyond being just a ‘grudge’ purchase
• Provide an opportunity to communicate with clients more
frequently and in a more positive manner
Reality mechanics
● Fee-based, opt-in programme
● 2 options, R16.50 per month and R75 per month. The more
expensive option carries the ‘traditional’ discounted gym
membership benefits
● Access to free and significantly discounted financial planning
tools specifically selected to complement, rather than compete
with, the financial advice provided by qualified Financial
Intermediaries
● Range of retail discounts and special deals
● Points-based programme, each point has a value of 10 cents.
o Sanlam Group companies and retail partners reward members
for desired behaviour with points.
o Clients use their card to earn and spend points, in addition to the
traditional call center and catalogue channels.Going beyond life assurance to financial services ● Provide a range of diverse solutions for broad financial needs, from risk and protection to investments and home loans ● Solutions NOT products Appeal to all South Africans ● We need to shift from our traditional power base of the middle, Afrikaans market to encompass all South Africans ● We are listed on the JSE ● Largest share of business flows and income currently in SA – but this does not preclude extending the business beyond these borders. ● Addressing challenges of relevance in the Affluent Market – endorsed branding “Glacier” ● Leverage African Life/Sanlam Developing Markets in the lower end of the market. ● Use our position in CSI in engaging not only the minds but also the hearts of local communities.
Road map and milestones
Implement new brand positioning Detailed strategy complete with
involvement and buy in
Vesting positioning internally and Very early days, take up strong in
externally certain areas. Work continues
Ongoing testing with all Ongoing – initial indications that
stakeholders where it is adopted, seen success
Internal culture change to enable Major focus for 2007
delivery of brand promise to market
Rewards programme Launched, take up slow.
Focus for 2007
Measure by results Business performance
Ongoing research tracking
Measuring the impact of the strategy
● Business performance
● Brand awareness and trackingOur investment above the line.
Category LTI – Jan to Dec 2006 –R353 780 503
Excludes Old M utual Bank! R14 509 820
1 L IF E DIR EC T
AL LAN G RAY
6%
5%
AS SUPO L
2%
S ANLAM
15% C HA NNE L L IF E
0%
C LIE NT EL E L IFE
8%
O LD M UT UA L,
6 0 ,4 27 ,3 0 9 , 17 % CO RO NAT IO N
6%
D IS CO VE RY LIF E
3%
INVE ST EC B ANK
9%
M O M E NT UM
8%
•2005 spend R374 million
M ET RO PO L IT AN L IB ER T Y LIF E ASSO C • 5.6% down on 2005
2% 1 9%
Spontaneous awareness – Total Market
June to Dec 2006
100
95
90
85
Old Mutual
80
75
70
Sanlam
65
60
55
50 Metropolitan
45
40
35
30 Liberty
25
20
Discovery Life
15
Momentum
10
5
0
31/07/06
07/08/06
14/08/06
21/08/06
28/08/06
04/09/06
11/09/06
18/09/06
25/09/06
02/10/06
09/10/06
16/10/06
23/10/06
30/10/06
06/11/06
13/11/06
20/11/06
27/11/06
03/07/06
10/07/06
17/07/06
24/07/06
04/12/06
11/12/06
©2007, Research Surveys
Rolling Period = 4
Total sample
Sanlam: 1277 Clientele: 1073 Hollard: 1117 Old Mutual : 595 Liberty: 328 Discovery Life: 357
1Life Direct: 578 Momentum: 522 Metropolitan: 2
400
Category TV AR's Total
200
Market
0Favourability (positive ratings) – Total Market
June to Dec 2006
100
95
90
85
80
75
70
Old Mutual
65
60 Sanlam
55
50
45
Metropolitan
40 Liberty
35
Discovery Life
30
Momentum
25
20
15
10
5
0
31/07/06
07/08/06
14/08/06
21/08/06
28/08/06
04/09/06
11/09/06
18/09/06
25/09/06
02/10/06
09/10/06
16/10/06
23/10/06
30/10/06
06/11/06
13/11/06
20/11/06
27/11/06
03/07/06
10/07/06
17/07/06
24/07/06
04/12/06
11/12/06
©2007, Research Surveys
Rolling Period = 4
Total sample
Sanlam: 1277 Clientele: 1073 Hollard: 1117 Old Mutual : 595 Liberty: 328 Discovery Life: 357
1Life Direct: 578 Momentum: 522 Metropolitan: 2
400
Category TV AR's Total
200
Market
0
Thinking ahead?
● Linkage of the Thinking Ahead slogan to Sanlam has increased
steadily over time since 2001 to about 25% at the end of June
2006
● The next best competitor in terms of slogan linkage is Liberty
with "We're working on it" - with linkage levels of 6%
We’re thinking ahead – are you?Some final thoughts
● We have a very clear marketing strategy inextricably linked to the
Business Strategy, designed to help deliver the business objectives.
● Marketing Strategy informed by the entire organisation with buy in and
support from the executive team
● The organisation has begun aligning with the strategy and it is
beginning to pay off
● It is a journey we have begun and we will continue – maintaining
momentum
● Can Sanlam be a “sexy” brand ? Time will tell but we have no doubt
that it will continue to grow as a relevant and aspirational brand.
● Finally, we are not apologetic about being big. We are big because
more clients have chosen us than have chosen most of our
competitors. We are big because we are successful and this means
we have the depth of resources and talent to achieve everything we
set out to do. We are proud to be big and successful !You can also read
