ASSESSMENT OF MARKETING MIX OF LION INSURANCE COMPANY

Abstract

The purpose of the research was to assess the marketing mix of Lion Insurance Company. Specifically, it examined the product, promotion, premium (price), place, people, physical evidence and process of the Company. In order to obtain the best results, the main research methodology adopted was a survey involving three selected branches in Addis Ababa. Both primary and secondary data was used in this study. Primary data was collected using questionnaire and interview. 178 questionnaires were distributed to the sample respondents and 160 questionnaires were returned and valid for data analysis, making the response rate 90%. Interview was conducted with all employees of Business Development Department. Descriptive statistics, like frequency counts, percentage, etc was used in the analysis of the data. Findings from the research revealed that the promotion made by the company is found to be less attractive and its contribution in influencing customers to purchase additional insurance policy is found to be poor. The process used by the company is not automated; besides it is slow. The premium charged by the company is fair though some customers stated it as expensive. There is a price war in the industry and customers of the company are price sensitive. The company is doing well in delivering insurance policy to customers but the speed with which they settle the claims of the customer is found to be much slower. The equipments used by the company are modern and employees dress and furnishing of the room are found to be attractive to customers. The company is doing well in offering insurance policies that meet the insurance needs of the customers, but the terms and conditions of the policies are not written in plain language and customers are not satisfied with the service of the employees of the company