|
|
|
|
|
NY Life Marketing Plan
|
|
|
NY LIFE Concept Development Assignment Team 15 Summary 1. Does NYL want to enter into the DC market? Definitely yes! DCs are the fastest growing type of pension fund; NYL can’t afford to miss this opportunity! 2. What type of service(s) should NYL provide? When entering an existing market, one has to be able to compete with the existing competition; in this case the major competitors are offering total service packages. Also, according to several surveys, an important concern, for both sponsors and participants, in selecting pension plan providers is good record keeping/administrative services. These factors necessitate NYL offer a full service DC plan. Here are some specific suggestions for services NYL should offer: · In-house record keeping with possible strategic alliances with major payroll processing service provider(s) to obtain payroll/contribution information automatically with no extra effort by the employer. · Monthly, quarterly, semi-annually or annually statements (participants option). · Basic information on the first page, detailed information on subsequent pages. · Toll free phone access for daily balance and other updates (and access to they same information over the internet in the future) · Automatic reallocation for those without the inclination to personally manage fund allocation. More details are found in Attachment Two of this report. 3. Major advantages from this recommended concept. · Continued relationship building with existing customers · Reputation building to attract future customers · Complete control over the program allowing increased flexibility to meet both existing and future customer needs (both companies and individuals). These advantages will allow NYL to be a complete financial need provider for customers: insurance, assortment of retirement funds, and financial planning advice. 4. Other possibilities Contracting the record keeping services to another company requires NYL to rely on someone else being responsive to customer needs (problems will reflect poorly on NYL). Although many reputable record keeping companies exist that would probably be responsive enough, they would also charge more for that flexibility, reducing NYL’s profit margin. But the key concern is that this option does not build a lasting close relationship with customers. Having its own in-house record keeping requires a relatively large initial investment and ability to keep up with the technology, however it will pay off in the long run since DC plans are expected to expand and dominate the pension market in the future.
|
|
|
|
Still Can't Find What Your Looking For? Then Try a Essay Search!
|
