LEAD AUTO INSURANCE CASE STUDY

Lead Auto Insurance is an auto insurance company, a subsidiary of Lead Managers Consulting Group, a marketing management consultancy firm in Ghana. Lead Auto repairs cars on behalf of customers who are on their programme. The company has four different brands which are Lead 100%, which target customers who would like a 100% repair of all faults the car develops. Lead 50% target customers who would like a repair of selected parts of the car engine. Lead Commercial is the third brand which targets commercial vehicles and Lead Corporate which targets corporate institutions who would like to put their cars on the insurance programme.

In a recent marketing audit report by a consultant at the corporate head office, these facts were realized base on the Boston Consulting Group (BCG) matrix assessment.

i. A brand like Lead 100% was operating in a higher growth rate market with a higher market share.

ii. Lead 50% was operating in a higher growth rate market with a lower market share.

iii. Lead Commercial was operating in a lower growth rate market with a lower market

share.

iv. Lead Corporate was operating in a lower growth rate market with a higher market share.

Lead Auto Insurance management is concerned about the implications of the balance of their product portfolio on the company success and is seriously considering major decisions. The company understands that the growth of a business depends on the health of the balance of the product portfolio within their operation. Also there is a need to understand the clear objectives of each SBU/ Product on the BCG matrix for the growth of the business.

As marketing manager of Lead Auto Insurance, write a memo report to management answering these questions.

a. Memo title (2mark)

b. What is Portfolio analysis (2marks)

c. Draw the BCG matrix and indicate the positions of the different brands (Lead 100%, Lead

50%, Lead commercial and Lead Corporate) of the company on the matrix as reported in

the marketing audit within case study. (10 marks)

d. Discuss two (2) uses of portfolio analysis to management.(10 marks)

e. Based on your understanding of the importance of using BCG as portfolio analysis of

SBUS/ Products;

Discuss the clear objective that should be set for brands like Lead 100%, Lead 50%, Lead Commercial and Lead Corporate. (16marks)