埃森哲-安联保险AIA中国市场细分项目建议书-201211

AIAChinaMarketSegmentationProposalNov2012Disclaimer2

1.ThisProposalhasbeendevelopedinresponsetothe__CustomerSegmentation&StrategyProject__RequestforTenderissuedby__AIAChina__(the“Company”),andAccenturehasreliedonthematerialsetoutintheRequestforTender.ThisProposalismadeavailabletotheCompanyonthebasisthatitwillusethecontentsonlyforthepurposeofconsideringtheappointmentofAccentureasaproviderofservicedescribedintheProposal,andthattheProposaloranypartthereofwillnotbeshown,readorpassedtoanypersonotherthanacurrentemployeeofthecompanywhohasaneedtoknow.

2.TheinformationcontainedinthisProposalincludestradesecretandproprietaryinformationofAccenture.ThecontentsofthisProposalareconfidentialtoAccentureandremainsthepropertyofAccentureandassuchthecontentsmaynotbedisclosedbytheCompanytoanythirdparty,normayanyoriginalconceptdevisedbyAccenturebeusedwithoutAccenture’sconsent.

3.WheretheProposalmentionsthenameofanyotherclientsofAccenture,AccenturerequeststhattheCompanynottocontactsuchnamedpartieswithoutAccenture’spriorwrittenconsenttodoso.

4.TheservicesproposedintheProposalwillnotaddressanylegalorregulatoryissuesconcerningtheCompany’sbusiness,operationsoruseoftheDeliverables.AstherearemanyfactorsnotdirectlycontrolledbyAccenture,theproposedservicesarenotintendedtoguaranteeresults.

5.ThisProposalisaninitialproposalonlybasedonAccenture’slimitedknowledgeoftheCompany’srequirements.AccenturedoesnotwarrantorrepresenttheaccuracyorcompletenessofthisProposal.TheCompanyshouldnotrelyonanymattersetoutinthisProposalthatisnotsubsequentlyincludedinanywrittencontractmutuallyagreedbetweenAccentureandtheCompany.

6.ThisProposalisfurnishedwiththeexpectationthattheCompanyandAccenturewillhaveanopportunitytoworktogethertoagreeupontheformofagreement.

(i)ItisourexpectationthatonecontractwillbesignedbetweentheCompanyandAccentureinasinglejurisdictiontocoverprovisionoftheproposedservices.(ii)AccenturehasdevelopedanumberofgeneralcontractingprinciplesandpolicieswhichformthebasisonwhichAccentureprovidesservicestoitsclients.TheseprinciplesaddressissuessuchaslimitationofAccenture’sliabilityandprotectionofitsknowledgecapital.TheinformationincludedinthisProposal(includingpriceestimates)isbasedontheassumptionthatsuchprinciplesareadoptedintheagreementbetweentheparties.

7.IftheCompanydecidesnottoproceedwithourproposal,selectsanotherfirm,ordecidestoconducttheprojectitself,werequestthereturnofthisProposaltogetherwithassurancesthatnophotocopiesofthisProposalhavebeenmade.

8.Accenturehasalliancerelationshipswiththirdpartyproductsandservicesvendors.Aspartofmanysuchrelationships,Accentureisabletoresellcertainproductsandservicesand/ormayreceivecompensationfromvendorsintheformoffeesorotherbenefitsinconnectionwiththemarketing,technicalandotherassistanceprovidedbyAccenture.ClientacknowledgesthatsuchrelationshipsmaybebeneficialtoAccentureandassistinitsperformanceoftheServiceshereunder.

9.ThisProposalisaninvitationtotreatandisnotabindingofferbyAccenture.

AcceptancebytheRecipientofthisProposaldoesnotcreateabindingcontractbetweentheRecipientandAccenture.

ThisProposalisvalidfor

__14__daysfromthedateofsubmissiontotheCompany.Agenda36.Appendix5.WhyAccenture4.ProjectPlan&Team3.SuggestedApproach&DeliverablesforAIAChina

2.OurPoint-of-ViewonSegmentation1.OurUnderstandingofYourRequirementOurUnderstandingofYourRequirementsBackgroundFacingthehugePRCinsurancemarketpotentialaswellasthefiercecompetition,AIAChinaisconductingstrategicreviewsonhowtokeeptheleadinTier1citiesandfurtherexpandthecompetitivestrengthinTier2/3cities.AIAbelievesthatbetterunderstandingofthemarketisthefoundationfortheexpectedgrowth.SurveybasedmarketsegmentingSegmentsprofilingTargetCustomerdefinitionandValuepropositionanalysisDifferentiatedofferings,touchpointsinteractionsandetc.designbytargetsegmentAIAcapabilitygapanalysisCRMinitiativesdefinitionAIAhencescopedcustomersegmentationproject,through….….toachieve…DeepunderstandingofthechangingmarketandcustomerneedsAgileGo-to-marketCustomerStrategyAIAtailoredmarketinginitiatives4ChangesoncustomerpurchasebehaviorandchanneldistributionareimpactingtheLifeindustry,forcingcompaniestoinnovateandmoveclosertothecustomer5Pitchedbattlefor

thecustomerNewandchangingcustomerbehaviorsDramaticallyheightenedcustomerexpectationsIncreasedprice-sensitivityNewandchangingcustomersegmentsAgingdemographicsDigitalgenerationcomesofageGrowingpurchasepowerofemerging-marketconsumersErosionofpriceandfeatureadvantages,duetolow-costcompetitionandacceleratedcommoditizationCustomerscontrol

theexperienceExpandedaccesstoproductandpricinginformationFragmentationoftraditionalmarketingmedia/channelsIncreasedeaseofswitchingandlevellingoutofsatisfactionWhattodotofurthergrowcustomerbasee.g.innewmarketsHowtobestrespondtochangingcustomerneedsandbehaviorsHowtostandoutinthefiercecompetitionKeyChallenges?HighperformancecompaniesbelievethathavingSegmentationandAnalyticscapabilitywillsetthemapartfromthecompetition6Source:AccentureCustomer-DrivenInnovationlifeinsurerexecutives

survey2011Q:Whatinvestmentareyoumaking,orconsideringmaking,inthenext3years?DevelopinganalyticscapabilitiesBetterdefiningtargetcustomersegmentsandcreatingtailoredcustomerexperiencesforthesesegmentsDevelopingandtrainingmarketinganddistributionemployeesonnewtools/processesExpandingtheservicesandexperiencesprovidedontheInternet(otherthanmobile)DesigningandimplementloyaltyprogramsBuildingmarketingsharedservicecapabilitesIntegrationforseamlesscross-channelcustomerinteractionsCreating/expandingspecificservicesonmobilecapabilitesLeveragingsocialcollaboration/socialmediaOutsourcingspecificmarketingactivitiestothirdpartiesInvestmentongoingInvestmentplanned/indiscussion27%32%43%61%41%60%40%56%63%21%49%46%43%36%30%30%37%26%30%22%97%lifeinsurershavemade/isgoingtomakeaninvestmentinAnalytics90%ofthemfocusedonCustomerSegmentationManyanalyticalenterpriseshavealreadybenefitedfromcustomersegmentationandanalytics7SharperSegmentationandAnalyticsAgileStrategicDecisionBetterCustomer-LevelexperienceanddecisionUpto10percentagepointsadvantageinCustomerSatisfactionLeadersaretwiceasfastasfollowerstospotnewpropositionopportunitiesUpto300%increaseinmarketingresponseratesUpto40%higherCustomerLoyaltySource:AccentureAnalysis2010,AccentureTM

SharePriceInterpreterUpto10%CAGRinTRSH*Note*:TRSH=TotalReturnToShareholdersAgenda86.Appendix5.WhyAccenture4.ProjectPlan&Team3.SuggestedApproach&DeliverablesforAIAChina

2.OurPoint-of-ViewonSegmentation1.OurUnderstandingofYourRequirementCustomersegmentationisananalyticalapproachwhichclassifiescustomersintogroupsthathavesimilartraits,andenablescompaniestotargettherightcustomersanddefinetailoredoffers9“Enablecompaniestoprioritizetheirtargetcustomersanddefinetailoredpropositiontocustomerswithinthesamesegment”CustomerswithsimilarbehaviorsHomogeneousgroupswithsimilarvalues,needs,preferences&affinityTargetedproduct&serviceofferingsatthesegmentlevelCustomerSegmentation“Customersareindividuals”(SegmentofOne)”DistinctbehaviorsDifferentvalues&needsWantcustomizedtreatments,services,productsMarketRealityNeed&preferencemappingtohomogenouscustomersegmentsILLUSTRATIVETargetTargetTherearefourmaintypesofsegmentationmethods,theycanbeappliedseparatelyorcombinedtogether10DemographicSegmentationSegmentsdefinitionisbasedonage,gender,income,occupation,religion,race,etc1Needs-BasedSegmentationSegmentsdefinitionisbasedonneedsanddrivers,whichindicatehowcustomersviewproducts/servicesfeatures,whatarethepreferencesandforwhichreasons2BehavioralsegmentationSegmentsdefinitionisbasedonpastandcurrentcustomersusageofchannelsandproducts/services3Value-basedSegmentationSegmentsdefinitionisbasedoncurrent/potentialvaluegeneratedbycustomers4Customer“Howcanwedescribeourcustomers?”“Whatdoesthecustomerneedandwant?”“What,whereandhowdoesthecustomerpurchase?”“Howmuchvaluedoesthecustomerdeliver?”Theapproachtosegmentationdependsstronglyonbusinessobjective11MarketExistingCustomerBaseAcquireRetain

&

DevelopSegmentationCustomerStrategyBrandOfferingsChannelMarketingServiceCustomerSegment(notattributed)MarketSegment(notattributed)PULL(abovetheline)AIAobjectiveCustomerSegment(attributed)TargetedactionsDirectMarketingCRMSegmentationwithAttributionMarketSegment(attributed)PUSH(belowtheline)Needs-basedsegmentationisthemostsuitableapproachgiventhebusinessobjective12Demographic/Value-BasedSegmentation=What,WhoNeeds-BasedSegmentation=WhyPros:Needsprovidepredictive,notdescriptiveinformation(WHYANDWHAT)Canleadtotheidentificationofnew-unmetneedstoincrease/capturemorecustomervalueSegmentshavedistinctlydifferentpreferencesandrequirementsCons:CanbedifficulttoattributeResearchmaybecomplexandrequiresignificanttimeandresourcesdependingonthecomplexityofthevaluepropositionPros:Marketresearchtendstobesimplertoexecute100%attributablebydefinitionCanbeenhancedbyderivedvariables(e.g.ratioinbound/outbound)Cons:DemographicsalonefailtoidentifythedriversofcustomerbehaviorDemographicapproachesmaynotbeactionablev.s.Noattributionneededinthisproposalscope,willnotjeopardizesegmentationresultAlignedwithAIA’sbusinessobjectiveNeedsbasedsegmentationenablesthecompanytodefinetheirtargetcustomersmoreeffectivelybylookingatcustomersinsurancepreferencesinadditionaltodemographicsinformation13ILLUSTRATIVEThroughbetterunderstandingofcustomerspreferences,itispossibletotailorthepropositionsandoveralltargetingstrategy14<Needsbasedsegmentationexample2>-aJapaneselifeinsurerTheJapaneselifeinsurerfoundoutfourdifferentsegmentsinthemiddle-aged

massaffluentmarket,andchosentwosegmentstotarget.Profile25-35yearsold,singleLivinginrichfamiliesHavecomprehensiveinsuranceinsuredbyothers30-45yearsold,marriedMostlybusinessownersorseniorexecutivesofcompanies25-40yearsold,marriedMostlywithhighincomewithhigh-flyingwhitecollars25-35yearsold,singleCollegeeducationLimitedincomeforinvestmentValuePropositionNottargetedStrongdemandofhighcashliquidityLowtoleranceofriskGroupinsuranceneedsforbusinessowners

AspirationstobebetterofffinanciallyConcernedaboutfamilylifeandchildrenConcernedabouthealth

NottargetedStrategyNottargetedProduct:Investmentlinkedinsurance;Universalinsurance;GroupaccidentinsuranceTouchPoint:One-to-oneserviceAgent:Professionalelderly

malefinancialadvisorsValue-addedservice:24hoursconsultingservice;discountonloanserviceProduct:Healthinsurance;Educationinsurance;DividendtypeinsuranceTouchPoint:Multichannel(e.g.Internet,Callcenter）Agent:collegeeducation,withfamilyorientationValue-addedservice:Childreneducationadvisoryservice;physicalexaminationNottargetedYoungRoyalInsuredAffluentSMEOwnersSavvyProfessionalsLifeStartersILLUSTRATIVE15

Needs-basedsegmentationapproach,supportedbylife-stage&valuesegmentation,isrecommendedforthisprojecttoalignwiththeprojectobjectiveCustomerValueCustomerNeedsGenderAgeMaritalStatusetc.Attitudes(lifestyle,interests,risktolerance…)Needs(Buying/usagedrivers,aspiredbenefits…)Perceptions(brand,beliefs…)etc.CustomerLife-stageIncomePurchasingPoweretc.AdvancedstatisticalanalysisisrequiredinconductingeffectiveneedsbasedsegmentationDegreeofCustomerInsightprovidedAnalyticalRigor&ServicingStrategyComplexityLowHighHighBASICJudgmental&businesswisesegmentsENHANCEDSegmentationusingsimplecutoffondifferentdimensionsValuegeo-demographicalproduct-usagedataADVANCEDUsesophisticatedstatisticalanalysistofindneeds-basedsegmentsFactoranalysisClusteringetc.16RecommendedforthisProjectAgenda176.Appendix5.WhyAccenture4.ProjectPlan&Team3.SuggestedApproach&DeliverablesforAIAChina2.OurPoint-of-ViewonSegmentation1.OurUnderstandingofYourRequirementPart1Segmentation&ProfilingUnderstandingofCurrentSituationReviewSuiteofProducts/BundlesReviewExistingServiceofferingsGainunderstandingofdistributionstrategy&modelSegmentAttractivenessCompetitoranalysisGapanalysis(product,channel,operation,IT,brand,etc.)FinancialmodelingoninsurancepurchasingpowerQualitativeanalysis(FocusGroup)Createvaluepropositions –Product –Service –ChannelOurapproachtoNeedsBasedSegmentationProduct,Services,andDistributionReviewGo-to-marketStrategyWHATStrategy –Growvalue –DefendShareHOWStrategy –Brand –Product –Services –Promotion –TouchPointsTargetingTargetSegments’ValuePropositionPart2Part3Part418QuestionnaireDesignSamplingSchemeSurveyExecutionSegmentationModeling2354SegmentProfiling6SegmentationObjective&Dimension1SegmentationObjective&DimensionsQuestionnaireDesignSurveyExecutionSegmentation&ProfilingPart1:Segmentation&

ProfilingSegmentationModelingSegmentProfiling1246519SamplingScheme3VarioussegmentationdimensionswillbeconsideredbasedonthebusinessobjectiveSegmentationdimensions:FullDependentAdviceSeekingSelfDirectedRisktakerConservativeBalancedIncomeExpenseProtectionInvestmentAgentWebsiteCallCenterAgeMarriageDealSeekerBrandLoverTouchPointsLifestageProductFunctionality&ServiceWillingnesstoReferMGMProgramPriceSeekerBalancedValueSeekerPriceSensitivityLoyaltyPurchaseDecisionProcessRiskToleranceValueNon-ExhaustiveQuestionnaireDesignSurveyExecutionSegmentation&ProfilingPart1:Segmentation&ProfilingSegmentationModelingSegmentProfiling2465SelectappropriatedimensionswhendesigningthequestionnaireSamplingScheme320ProductsBrand/

MassAdvertisingMarketingServicesIsthisdimensionactionableanddifferentiating?YESKeepNOKillHowarewegoingtousethisneeddimension?SegmentationObjective&Dimensions1QuestionnaireDesignSurveyExecutionSegmentation&ProfilingPart1:Segmentation&

ProfilingSegmentationModelingSegmentProfiling2465Appropriatetechniqueswillbeadoptedtomakesurethevalidityofsurveydata21SamplingScheme3SegmentationObjective&Dimensions1ILLUSTRATIVESurveyScopeDefinitionAllRelevantMarketsRandomSampleSelectionQualifiedSetSurveyedContains2,000~2,500samples,bothinsurancecustomersandprospectsExecutecustomersurveyCleanseandexploresurveydatageneratedduringfieldworkDefinesurveyscopetoobtaincustomers’needsandpreferences22Part1:Segmentation&ProfilingQuestionnaireDesignSurveyExecutionSegmentation&ProfilingSegmentationModelingSegmentProfiling2465SamplingScheme3SelectBeijing,ShanghaiandGuangzhouasthethreecitiesforsurveySelectbothAIAandnon-AIAcustomersforcompletenessDefineparticipantscriteriabasedonademographicsdimensions,e.g.ageandincomeSegmentationObjective&Dimensions1UseclusteringtechniquetogroupcustomerswithsimilartraitsandbehaviorsNewCentroidAssignmentRandomlyselectKclustercentroidsastheinitialseedsIntheexamplebelowK=3Foreachdatapoint,theEuclideandistancebetweenthispointandeachcentroidiscomputedEachdatapointwillbereassignedtotheclustercentroidwiththeleastEuclideandistanceClustercentroidwillberecalculatedbasedonthenewassignmentInitialSeedsDistanceComputationX1NewCentroidAssignmentX1X2C1C2C3X2C1C2C3X1X2C1C2C3Choosethenumberofcluster(K)DistanceComputation23Part1:Segmentation&ProfilingQuestionnaireDesignSurveyExecutionSegmentation&ProfilingSegmentationModelingSegmentProfiling2465SamplingScheme3SegmentationObjective&Dimensions1UnderstandthecharacteristicsofdifferentneedsbasedsegmentsHNWIAffluentUpperMassMassPremiumPartnersWealthyBorrowersVeryrichcustomerswhoarelikelytomaintainrelationshipswithmanyotherbanksCustomerswithveryhighborrowingneeds,bothasaconsumer&businesscustomerUrbanRoyalsExtremelycash-richhouseholdswithconservativeinvestmentneedsAffluentProvidersCustomerswithveryhighassetbalancebuthavelowappetiteforloanproductsPrestigeCard-HoldersCustomerswithhighcreditlimitbutwithlimitedrelationshipswiththebankExtremeLoan-OwnersSlightlyyoungerCustomerswhochoosethebanktomeettheirborrowingneedsValueSeekersCustomerswhousetheircreditcardsforpromotions&discountswhileminimizingcostLifeEnrichersCustomerswithaspirationstobebetterofffinanciallyandarebeginningtodevelopmoresophisticatedneedsBasicMiddleClassMid-incomecustomerswhohaveaccumulatedsomewealthbutnotyetprogressedbeyondsimplebankingneedsEarlyAdoptersCustomerswithgrowingbalanceswhoarealsomorelikelytousedigitalchannelsforbankingtransactionsLifeStartersMostlyyoungsingleswithlimitedincomebutfewercommitmentsandthusabletosteadilygrowtheirsavingsCommonMassLargestgroupofcustomers,theyhaveverylowbalanceanddonotinteractmuchwiththebank24Part1:Segmentation&ProfilingQuestionnaireDesignSurveyExecutionSegmentation&ProfilingSegmentationModelingSegmentProfiling2465SamplingScheme3ILLUSTRATIVEExample:AnAsianBank(1/2)SegmentationObjective&Dimensions1DetaileachsegmenttosupportstrategydefinitionAvg.Assets500K-2.5MAffluentProviderAvg.CreditLimit30K–100KAvg.OTRVehicleValue500K–800KAvg.MarketPropertyValue1-5MPlace16%Place458%Segment

InformationLoanandAssetsDistributionAvg.Assets:475KAvg.Loan:75.9KCreditCardAutoLoanMortgageTDRealEstateInvestmentsBankingSolutionHolding(%ofsegmentwithproduct)SegmentSize :165,004(2.3%)Avg.SolutionIndex :3.10(outof13)Avg.Revenue :3,483,100RevenueContribution :30.1%Avg.Profit :1,978,691ProfitContribution :43.4%Geography*Revenueandprofitiscalculatedpermonth25Part1:Segmentation&ProfilingSegmentationObjective&DimensionsQuestionnaireDesignSurveyExecutionSegmentation&ProfilingSegmentationModelingSegmentProfiling12465SamplingScheme3ILLUSTRATIVEExample:AnAsianBank(2/2)UnderstandingofCurrentSituationProducts,Services&DistributionReview26Part1:UnderstandingofCurrentSituationCompanyProducts/Sales/ServicesCustomers/DistributionWhatisAIA’smission?Howisthis

alignedtosalesforceactivities?HowdoesAIAdifferentiatefromcompetition?Whatarethecompany’score capabilities?Whatarethecompetitiveadvantages?WhatisAIA’scurrentmarketingstrategy?Whataresomeoftheearlyindicatorsofsuccess?Lessonslearnedfromstart-upthroughtoday?Whatisthesalesforcemantra?WhatproductsandservicesdoesAIAChina

offertotheirexistingcustomers?Wherearethegaps?Whatarethefutureplans?WhatisAIA’spricingstrategy?Howhasit changedsinceAIAlaunched?WhatstrategieshasAIAdevelopedformaintaininghigh-touch,intimatecustomerrelationships?WhatinternalandexternalcustomerpoolshasAIAChinaalreadyidentified?HowdoesAIA

currentlyidentify/reachitstarget

customers?3. WhatareAIA’scurrentdistributionchannels?Whatarethefuturedistributionplans?4. WhatareAIA’scustomeracquisitiongoals?Whatisthecurrentforecasts?CurrentCompanyCapabilities(e.g.Operation,IT,Sales,etc.)AbilitytoImproveCapabilitiesCompetitiveLandscapeSizeGrowthProfitabilityOtherStrategicFactorsPart2:Themostattractivesegmentsareonesthatprovideahighlevelofvalueandcanbecapturedbythecompany27SegmentAttractivenessSegmentvalueSegmentAchievability5432154321LowPriorityHighPriorityMediumPrioritySegmentishighlycompetitiveincludingwell-establishedfirmswithlargemarketingbudgets

ProfitabilityofsegmentisunprovenorlimitedDoesnothavethebreadthofproducts,servicesordeliverychannelsrequiredtoacquirecustomersinthissegmentSegmentismoderatelycompetitive

Profitabilityofsegmentisdesirable,butsub-optimalHasorwillhavetherelevantproductschoicesandserviceschannelsrequiredtoacquireaportionofthesecustomersfromthissegmentSegmentislargelyuntappedand/orunderservicedProfitabilityofsegmenthashighestpotentialCurrentlyhasorwillhavetherelevantproductschoicesandservicingoptionsformajorityofcustomersfromthissegmentLowMediumHighPart2:SegmentPriorityDefinitionILLUSTRATIVE2829Part2:SegmentTargetingILLUSTRATIVEHighValueProtectionSeekerGoodfinancialbase,self-careandhealthriskconcernedHighValueEstablishedMetropolisElitesFinanciallydoingwell.GoodatinvestmentandEnjoysharingrelatedknowledgeandreferral.NewFamilyDepositorPriceSeekerRiskSensitive,careaboutnotonlyhimselfbutalsothewholefamily,especiallythechildren.ImpressionableLowriskawarenessHavelowriskawareness,hardtocontactPreference（%ofcustomerchoosethecorrespondingproducts)Levelofriskawareness（1~10：lowtohigh)Insured（%ofcustomerbuyproductstocorrespondinginsured)InsurancechanneltrustInfluencelevelFinancialbaseReferralwillingnessPart3&4:TargetSegmentValueProposition&StrategyInsuranceSegmentvaluepropositionAccidentEducationHealthPensionInvestment53183423515212243358483946101032163332childrenspouseparentsself303859665661111191521415621255AccidentEducationHealthPension57.185.036.027.346.268.0356.615.211AccidentEducationHealthPensionInvestmentAccidentEducationHealthPensionInvestmentAccidentEducationHealthPensionInvestmentAccidentEducationHealthPensionAccidentEducationHealthPensionAccidentEducationHealthPensionchildrenspouseparentsselfchildrenspouseparentsselfchildrenspouseparentsselfILLUSTRATIVE30SegmentProductSuggestedSalesStrategyTypeFunction/FeatureInsurantFormsofCommunicationSalesMessagingHighValueProtectionSeekerprotectionHealthprotection,high-valueaccidentprotectionSelfBuilduptrustwithDM,thenprofessionalreachbyqualifiedagentsOnlineEmailOne-to-oneWearetrustableandwillprovideprofessionalcomprehensiveinsuranceprotectionHighValueEstablishedMetropolisElitesInvestmentRetirementsolutions,taxrestructuringSelfFace-to-facereachtoexplainthemorecomplexproducts,leverage

diversifiedrelaxedproductworkshopencouragereferralOne-to-oneCreativeproductworkshop-e.g.Tea/cocktailpartyWeareprofessionalfinancialplannerNewFamilyDepositorPriceSeekerProtectionandinvestmentPricerestructuredprotection/education/retirementbundlesFamilyProductworkshopWehaveacomprehensiveofferingfrominsurancetoinvestmentfundsILLUSTRATIVEPart3&4:TargetSegmentValueProposition&StrategyProduct/SalesStrategybasedonSegmentation31Part3&4:TargetSegmentValueProposition&StrategyService/Channel/BrandMessageStrategybasedonSegmentation

ValuePropositionPrimarilybeginnerinvestorswhowouldratherself-directtheirretirementplanningthanhaveAdvisorscontroltheirportfolios.PredominantlyriskaversePerceivefinancialprofessionalstoinvestbetterthanmostpeoplePrefertodeterminetheirownretirementplansShouldbebroughtinasguidanceclientsandeducatedontheadvisoryserviceastheygainconfidenceinthecompanyCould

controltheir

financialsituationwellNot

concernedaboutshorttermchangesinlongterminvestmentsExpecthighlevelsofserviceStrategyServiceCareer/LifeTransitionCounselingAdvisoryServiceCashmanagementanddebtmanagementIncomeGapAssessmentRetirementPlanningGuidanceServiceFinancialAssessmentServiceAdvisoryServiceEstatePlanningLifePlanningNetworkRetirementPlanningChannelQuarterlymailingstohomeE-mailOnlineMessagingE-mailPhoneOnlinemessagingCo-BrowsingPhoneInternet(self-service)WebChatCo-BrowsingBrandImageMessageWehaveacomprehensiveofferingfrominsurancetoinvestmentfundsMissiondrivenfinancialadvisorteamwhoarenotcompensatedonsalesvolume,sothereisnopressuretoselltotheclientHeavyfocusoneducatingthecustomerHolisticviewonhelpingourclientswithalloftheirfinancialconcernsMissiondrivenfinancialadvisorteamwhoarenotcompensatedonsalesvolume,sothereisnopressuretoselltotheclientHeavyfocusoneducatingthecustomerWehaveacomprehensiveofferingfrominsurancetoinvestmentfundsWeareinnovative,ourFinancialAdvisorsconstructcustomsolutionstoaddressindividualsituations,byleveraginganopenarchitectureproductportfolioandplacingthecustomerintheroleofdecision-makerwehelpsretireesmakethemostoftheirhard-earnedsavingsConservativeWorkersYearningforRetirementSavvyInvestorsILLUSTRATIVE32LocationLevelofAdviceLowHighRuralUrbanHNWIMassMarketLowIncomeAffluentCustomerSegmentation1Giventhechangingdemographics,thecustomerneedsandpreferenceshavebeenfoundtovarysignificantlybyl