Executive Summary

The education insurance region is a large part in the Vietnam insurance market. Vietnam with the tradition of respecting education, learning conditions of children is paid attention of the families and the whole public. Pru Triple Education is a standard of Prudential Vietnam insurance company and in the market. Pru Triple Education help the customers good education for your kid assures him a bright future. In this assignment, our aim is introducing, analyzing and evaluating this product of Prudential Vietnam. This assignment based on the information of many sources. Hopefully, it can bring some knowledge about Pru Triple Education to raise the attention to this product.

I. Company analysis: What is Prudential: Slogan: Always Listening. Always Understanding

As can be seen, Prudential is one of the leading life insurers, it is believed by millions of Vietnamese people and it has the network of over 155 customer service centers, branch offices and general agency and business partner offices nationwide. Now Prudential make up more than 40% market share in terms of premium income (according to AVI's 2009 report). Moreover, Prudential Vietnam not only focuses on insurance market share, but also it studies about other fields. Such as: Prudential Vietnam Fund Management Company, established in 06/2005, is also a leading fund manager with the largest investor base in Vietnam and highly experienced investment professionals. Prudential Vietnam Fund Management Company currently serves for more than 11,000 clients, with over US$1.4 billion funds (as of 31/12/2008) In addition, providing financial security to customers through life insurance and fund management, Prudential also widen its business to include consumer finance with the birth of Prudential Vietnam Finance Company on 09/10/2007. After ten year operation, Prudential Vietnam has been playing an important role in mobilizing idle funds from people to invest in the national economy as well as transferring skill and creating high quality human source. Besides business activities, Prudential Vietnam has been keen on participating in social activities

1. Mission statement:

Like the mission of the Prudetial plc, the mission statement of Prudential Vietnam is what the chairman said

Our mission has been to meet our customers' changing needs for savings, income and protection. http://www.prudentialreports.com/2009ar/index.asp?pageid=22 The slogan is also the service guideline of Prudential: Always listening, always understanding. Prudential Vietnam realizes that listening is the only way to understanding customers. And understanding customer is the best way to provide the perfect service and product to satisfy them. One of their principles is providing the excellent service. Therefore, Prudential Vietnam has been actively investing in the development of abundant products and efficient service systems in order to improve its ability to serve its customer throughout the country. 2. Company objective:

We can see that the company objective of Prudential Vietnam is expanding in Vietnam market. In 2009, according to Mr. Andrew Yeo, Prudential opens 29 new offices in Vietnam. In 2010, Prudential has the agency office system in 63 city and town through the country. It can be seen that the company objective is continue to be the market share leader Prudential also want people know that their company is an insurance company offers brings brighter future for customers. Prudential Vietnam prides itself on being a good and

trusted company. Prudential has been orgnised and take part in many community activities.

II.

Environmental analysis
Prudential and its marketing intermediaries, customers, competitors and publics all operate in a large macro environment. It has strong impacts on the performance of Prudential. It consists of the six main factors, involves demographic, economic, natural, technological, political and social forces. The influence of these factors will be specified in the next part. 1. Economic: Initially, economic conditions are the basis of the Prudential development. Vietnam economic has been developed through years Government figures of GDP growth in 2006, was 8.17%. According to Vietnam's Minister of Planning and Investment, the government targets a GDP growth of around 8.5% for 2007. In 2009, the nominal GDP reached $92.439 billion[1], with nominal GDP per capita of $1,060[. In recent years, cause of the global economic crisis, the inflation rate was maintained at less than 10% (6.9% (2009 est.) 23% (2008 est.) Therfore, not only Prudential and Pru Triple Education have problem with finding potential customers and the number of canceling contracts, but also the whole market. Vietnam became the WTO's 150th member on 11 January 2007. It brings many insurance companies to the life insurance market. It means the number of competitor is rising. The market has been become more competitive than ever for Prudential. 2. Cultural: The culture of Vietnam has big influence to insurance market. Insurance or investment in Vietnam is quite new and strange. Vietnamese people dont have the habit of giving their money for other man or the habit of worry for the risk in the future. Lot of them thinks that their life risk is depends on fate. If the incident really comes, it can not be avoided.

However, openness and integration contributed to change Vietnamese mind. Besides, the tradition of taking care for family members of Vietnamese people is a condition for the development of insurance industry. 3. Demographic The third factor is demographic forces. Regarding the population of Vietnam is a densely populated country in the world. By late 2005, Vietnam's population of more than 83 million people, including labor age group and children are the majority. However, the number of people who have life insurance is approximately 5 million people, the proportion of people having life insurance was only about 7%, while this average rate in other country in the same area is 20-25%. (According to http://www.webbaohiem.net/cm-nang-bo-him-nh/1359-cau-hi-216-co-nhng-nhan-tnao-nh-hng-n-s-phat-trin-ca-th-trng-bo-him-nhan-th-vit-nam.html) That shows insurance industry is very potential in Vietnam, including Prudential. Beside, Vietnam has the tradition of respecting education. Therefore, children education always is the top concerns of parent and relatives, also the whole public. Parents are always willing to do anything for the best learning conditions of their children. Hence, the education insurance and Pru Triple Education has the opportunity to develop. 4. Legal: The Vietnamese policy and laws for life insurance is still quite complex. Its a problem to Vietnam insurance industry. However, Vietnam is trying to improve the insurance laws. Now, the system of legal on the insurance industry improves to accommodate to international standard. Ministry of Finance supervises the insurance operation in the industry, from recruiting and training agents to the activities. 5. Technology: Information technology has met the for Life insurance of Prudential. In the field of general insurance and life insurance in particular, the application of information technology has allowed insurance companies computerized service process, reduce bulky

properties of the organizational structure of enterprises insurance, diversifying distribution channels and other forms of services, enhancing customer service through ancillary services tech,...In addition, the rapid development of information technology created a new consumer habits for clients. Customers demand increasingly to seek information via modern media such as via: Internet, phone, email ... is to provide integrated financial services including insurance - investment - bar accounting ... So this is a chance to Prudential triple education thorough application of scientific achievements and technical needs and the increasing diversity of customers in terms of competition and integration.

(http://www.webbaohiem.net/c%E1%BA%A9m-nang-b%E1%BA%A3o-hi %E1%BB%83m-nh/1359-cau-hi-216-co-nhng-nhan-t-nao-nh-hng-n-s-phat-trin-ca-thtrng-bo-him-nhan-th-vit-nam.html)

6. Nature Another factor in the macro environment which affects on Prudential is nature. Clearly, in the natural environment had many changes, where humans can not anticipate natural risks that can carry at any weird today, the insurance becomes a good wealth. Climate change real for people how often cause disasters. And then, Prudential insurance market becomes more necessary than ever.

III. Competitor analysis

In the insurance market, next to Prudential also has many other competitors. According to the Vietnam Insurance Association, in 2009, Prudential was leading the market-share with 40%, The second highest market-share is Bao Viet with 34%. Next to the two companies is Manulife with 10% of the market-share.

%
4 5 4 0 3 5 3 0 2 5 2 0 1 5 1 0 5 0 P ential rud 41.6

Th phn Bo himnhn th
36.5

10.58

11 .32

Bo Vit N n T h h

M nulife a C ng ty

N hng C ty khc

Clearly, in the process and development activities, Prudential faced many difficulties from the competition, especial for Bao Viet and Manulife. First, established on 01/15/1965, Bao Viet has now become the Finance Insurance Group in Vietnam. Not only having networks across the country, Bao Vietnam, but also known as a strong brand, a reputation in the field of insurance. To have that position, Bao Viet has that utilize and develop their strengths. As a state-owned organization, Bao Viet received the assistance and special incentives from the government. In addition, strong financial capability, understanding the local market to help protect Vietnamese advantages compared to Prudential. Moreover, in the process of competition, Bao Viet has established relationships with many reinsurance companies to help enhancing the

cooperation, both to reduce the risk. However, Bao Viet still has some security weaknesses that affect performance. Slogan "Vietnamese security interests" binds scope of activities of this group. Customer service is the only Vietnamese, can not reach out to foreign markets. The education insurance of Bao Viet includes: An Sinh Thanh Tai, An Sinh Lap Nghiep, An Sinh Hieu Hoc, etc. Each of those product lead to different time of education in Vietnam.

(http://www.baoviet.com.vn/newsdetail.asp? websiteId=1&newsId=27&catId=3&lang=VN)

Another direct competitor is Manulife. Founded in 1999, after more than 10 years of operating with the slogan "Your future is our future", Manulife Vietnam has developed rapidly and become a world-class company providing a wide range of financial protection products quality and best service for customers in Vietnam. At the present, Manulife has been the third leader in market-share. With the advantage of 100% capital from abroad and more than 100 years of credit in favor of Asian markets, Manulife is committed to assuring long-term operation. Manulife education endowment product is the education insurance which provides the assuring for the kid. The age child at the beginning of the contract is from 0 to 10. However, comparison with Prudential Vietnam, Manulife is the logo of a little-known, except for their customers. When you see this icon, it is clearly not the business of Manulife is. This problem is caused by Manulife Vietnam do not pay attention to communication, and advertisings his company's image on the mass media.

(http://www.manulife.com.vn/web/vietnam.nsf/public/Introduction_VN.htm)

To conclude, when Vietnam joins the WTO, Vietnam's market becomes ever more promising for high-speed development. Thus, the influx of a growing number of insurance groups will bring a market share race dramatic, drastic. To head firmly and development, it is necessary for Prudential to have suitable for detail strategies in the competition with their rivals.

IV. Customer Analysis

Customer segments Behavior Characteristics Loyalty status: strong_ when customer choose financial investment in this type of insurance that is safe for their finances and it can bring profit as well as a guarantee of future Usage rate: various stage of user Benefit sought: safety - when customer buy insurance that means they invest their money to future so they usually find out the most safety case.

Psychographic Socio-economic status: nowadays, the economic of Vietnam is developing quite quickly so the economic status of people increase so much. When they have better life, they find out the way to take care the life of family and themselves in future. And

insurance is a good choose for them to sure for a good life. Lifestyle, attitudes: in the past Vietnamese dont think that insurance is safety. But now this product becomes very popular over the world so people have new attitudes about it. Buying insurance becomes formal with Vietnamese.

Demographic

It is also suitable for the whole families with parents and children who are students needing money to pay for fee. Rights education is designed with flexible payment options at the time of your school age children 2, 3-level, university or start a business. Not only you but also your spouse and your children have the opportunity to provide the same protection in the contract. Insured Age: 18-55 years old Benefits are reduced premiums for contracts with large denominations

Geographical Actually, the big cities ( such as Hanoi, Hochiminh city, Hai Phong) often have a big proportion of customer

V. Brand Analysis
The brand we are consider in this assignment is Pru Triple Education. However, before go to the information of it, wed better have a look at the Prudential brand. Prudential is a strong brand in Vietnam, with the level of awareness up over 90%. There are very little people who do not know about Vietnam slogan Always listening, always understanding as well as the image The man from Pru with the familiar red color. 1. Prudential Brand: Prudential was established in the UK and had operated in many countries. Life insurance company Prudential Vietnam officially established in 1999, and 2009, has more than 28,040 agents. "Always listening, always understanding" the slogan of the Prudential had become Vietnamese idioms in modern life and go on naturally. Through this point, we can speak about the influence of Prudential Vietnam to the insurance market. At present, Prudential has already become the market-share leader with 40% market share of insurance industry. 2. Pru Triple Education: In eleven basis products of Prudential, we choose analyzing the Pru Triple Education cause of the below reasons:

This product has many characteristics of Prudential, and also is a standard in the insurance. The company products usually are built based on listening - understanding customer needs, by that Prudential could provide products and best service. With so many Vietnamese people, saving money to defend before incidents which may happen in the future is a routine, but financial planning for individual stages of life is very strange. Therefore, the Prudential insurance products designed various suitable products for individuals and families symbol of Vietnam, balancing many factors such as income, family size, economic environment, social welfare policy of government. Besides, Prudential agents is not seller product, but the professional financial advisors to help each client evaluating financial condition to create a long-term financial plan for the customers and their relatives for selecting a good insurance products. This is one of three product has the largest number of contracts in Prudential. The name of this product reflects the its characteristic, a insurance for education. Pru Triple education is the first insurance product for education in which the policyowner is one of the parents of the kid who get the education benefit of the contract. Besides, another speciality of Pru Triple Education is the capability of protecting for the whole family if the policyowner can take full advantage of it. This point is what the competitors have not gotten already. The last reason is the flexible applied ways of Pru Triple Education. This insurance has the capability of assuring and saving. Besides, the policyowner is the bread maker, the fat her ( or mother) of the children. The age to entry insurance is 18 to 55, so it can be use to saving for the entire time or simply for their own needs. We can say that Pru Triple Education is a flexible insurance product for customers. To evaluate better the performance of this brand name, its necessary to conduct these following portfolio analyses: a) PLCs:

Pru Triple Education appeared in the public in 2007. Since then, its contract was rising and rising. Besides, Pru Triple Education contracts is one of the third highest percentage in the total contract. Those information are stable still through two years ( according to the Prudential Agents). The number of competitor in this product line is quite big. However, the education insurance area in Vietnam insurance market is large. At 2007, there are ten kind of education products which were provided by five insurance company. According to daiichi-life.com.vn, this product line maybe has 50% of the market-share. However, by now, the number of competitor is stay still. One of the result is the present attention is in the investment region. However, the number of contract is increasing. In general, the condition and benefit of Pru Triple Education is suitable and satisfy the Vietnamese customers. Pru Triple Education is in the growth stage in the Product life cycle. It will take amount of years to change to the maturity. Customers who are reducing premiums for contracts with large denominations A year ago, to commemorate the founding Marginalized, * Vietnam has a big advertising program, not only on the channel information, the purpose of polishing the image, name

of the company. Education Products Triple Pru also in product groups which are widely introduced. b) 4Ps: Product: Pru Triple Education - Good education for your kid assures him a Bright Future! Like what the name said, Pru Triple Education is an education insurance product. The main purpose of the product is protecting and supporting for the education of children in the future and assuring of protecting the financial plan for the family. The condition to use Pru Triple Education: Age of the policyowner: 18 55 years old Policy term: 10 22 years Premium term: 6 -18 years ( its up to the policy term 4) Major benefit insurance: Flexibly choose the time of receiving education benefits for children learning: Customers can choose the time of receiving the benefits of education in the first seven years before maturity, 4th year before the maturity date or on each year in the last five years of the contract. Customer can also wait for the maturity to receive the contract benefits with the highest cash. There is the exactly solution for customers

Total payment Kids age Solution A Payment for your kids education during his years of junior, senior high school, university level %Sum assured %Accumulated dividend and terminal bonus Schooling Stages Junior high school Senior high school University

11

20

14 18 Solution B Payment for your kids education in his years at senior high school 14 15 16 17 18 Solution C Payment for your kids education in his years at University and career starting 18 19 20 21 22

25 75 20+10 20 20 20 20+10 20+10 20 20 20 20+10

25 75 20 20 20 20 20 20 20 20 20 20

On the entry to university

University and career starting

The total payment for your kids education may be up to 120% of the sum assured. Especially, the payment for your kids education shall be continued regardless of acidents to the life assured, also bread earner. Ensure educational benefits in cash when the risk occur When risks occur, customers will receive insurance money, and be free the costs for the remain time of the contract period. They also can keep all the entire cash benefit in the origin selected contract to serve the educational needs of children.

 Protect when death or injury Upon death or total and permanent dismemberment of the policy-owner, Prudential will pay 100% of the sum assured to assist the life assured and family to overcome hard days. (Upon total and permanent disability of the life assured, payment will be made in 10 installments for ten years. Payment for your kids education shall be continued on term in accordance to your kids educational plans. Both families have been covered One Pru Triple Education contract can protect for three member on the family. . In addition to the primary insured, the product form of protection (riders can be attached) for the spouses and their kid. Vietnamese family structure usually has four members: the two of parent, the two of children. If one family with four members purchase two Pru Triple Education (policyowners are two of the bread makers), then, the whole family can be assured completely and perfectly.

Price: Prudential give the customers various level of price to match with many financial stages of customers. However, like the other basis product of Prudential, the lowest premium of Pru Triple Education is about 1.5 million VND per year, except the fee of riders which can be attached. This price of this Pru Triple Education is quite cheap to campare to other familiar products in the market. Although there are no restriction on sum assured, It depends on the health condition of the life assured and the policy owners financial conditions. Besides, Pru Triple Education has the process Large Sum Assured Discount to customers who choose the high value contract.

Sum assured (million) Discount rate (% the sum assured)

60 - less 120

120 - less 180

180 and above

0,30

0,45

0,60

For instance, if the customers take part in Pru Triple Education with the sum assured of ! 50 millions. Then, they would discount the annual premium : 150,000,000 0.45% = 675,000 VND per year. Promotion: Because of the characteristics of insurance product: Unsought goods, so most of the promotion of Pru Triple Education is aggressive advertising and personal selling. Therefore, human resource of Prudential is pay attention. All of agents of Prudential are trained carefully to understanding and hold the spirit of Always listening, always understanding and make sure that their activities are based on Honest, Fairness and Perfect Services. At Prudential, the agents are reminding that customer benefits is the first thing to considers. Place: Pru Triple Education is suitable with much kind of customers, so the distribution is large. Prudential has been expanding agency offices through the country. However, the major distribution of this product is in the urban area. The major part of agency offices is in cities, towns and wards.

VI.Swot analysis
In SWOT analysis, we will discuss all aspect of Pru Triple Education; there are strengths, weaknesses, opportunities and threats which Pru Triple Education has. 1. Strengths Prudential has been a well-known brand in the world before entering to Vietnam. Over 10 years of long existence and development, Honda Vietnam now becomes a part in the Vietnamese peoples life. One of product of Prudential is Phu-An Gia Thanh Tai. We can say that With Phu-An Gia Thanh Tai, you are completely assured because of the financial safety measures are planned to closely follow every step on the path of your child's education. Moreover it can many benefit for customers: The first educational insurance in Vietnam offers benefits to the leader of the

family, the father (or mother) of the baby. Rights education is designed with flexible payment options at the time of your

school age children 2, 3-level, university or start a business. General education benefits are paid up to 120% of the amount insured. Specially,

the benefits of this education are guaranteed payment in case the unlucky incidents happen to the insured person, who is also a pillar of the family. Customer has opportunity to receive bonus plus accrued interest divided by the

end of the contract. Not only you but also your husband (or wife) and your children have the

opportunity to provide the same protection in the contract. 2. Weaknesses: Pru Triple Education provides many solutions for the different stage, different needs, different situation of customers. They have two cash benefit option and three solutions for the time customers get the sum. However, there is too much option for them, so they

can be confused to try to understanding and finding the suitable service for themselves. Hence, providing the information and knowledge of product to customers is up to the agents responsibility. However, the capability and effort of each person is very different. Another weakness is the providing information for customers. In the website of Prudential, the customers are hard to find the information they need. There is the problem of find information in this website. Besides, the customers care offices response customers not immediately. 3. Opportunity: It cannot be denied that some factors and forces of the external environment bring Prudential great opportunities. After Vietnam joint in WTO, the economic develop fast; the income of people will go up, too. When life is beginning to return to normal, people will think about future with many ill-luck things. So it is a good opportunity for Prudential. Moreover, now the percentage of pupil and students increase rapidly and the parent take care their studying very carefully it is a good traditional of Vietnamese and the product is educational insurance so there are many families want to buy insurance to life of their children. Finally rural area is a potentially environment for Phu-An Gia Thanh Tai. Because there are many people who dont have old-age pension, want to hoard up money for 4, Threats In the dynamic environment, Prudential and Pru Triple Educare products have to face with not only opportunities but also threats. Firstly, Vietnamese does not have the habit of buying insurance. Instead, they often choose to send a bank or savings because of not realized the profound benefits and profits of insurance offers. Therefore, it is not easy for Prudential and Pru Triple Educare to access with large parts customers. In fact, to do this, a permanent campaign and also the

specific steps are as a suggestion for Prudential. In addition, Prudential may promote and advertise Pru Triple Educare products to customers through mass media.

The second threat which is really important for Prudential is competitive pressure among competitors. Obviously, as a member of the World Trade Organization, Vietnam is opening up to welcome businesses to invest and grow. Besides, the insurance market is very potential investment. That was the reason for the growing number of insurance groups in Vietnam, with abundant capital and human resources with high qualifications and diversity of products became ever more challenging by Prudential. In addition, insurance market has about 10 insurance products safety education is provided by five life insurance companies. As a specialist, several years of data showed that sales of insurance security costs of education constitute a large proportion, sometimes up to 50% in the product mix of insurance on the life insurance market Vietnam. Thus, Prudential should focus on links with the powerful financial groups to increase capital, attract staff of highly qualified and bring high quality products, reasonable prices, better service quality.

VII. Conclusion
There is no denial that Phu-An Gia Thanh Tai is a good educational insurance. It brings many benefits for customer and focus on the pupil and student which suitable with

traditional of Vietnam. But we have some suggestions for the products or companys future direction to improve it more development and increasing the number of customer. First of all, that is the information about this product is not detail about price, investment on website of Prudential We reckon that Prudential should explain carefully about everything of this product to attract customer more than. On the other hand, we believe that if this company focuses on short-term training course about skill to keep relationship with customer and having professional employees, they will have more opportunities to development. On conclusion, Prudential Insurance Company of Vietnam, after more than ten years of operation in Vietnam (1999-2007) has achieved much success, has given millions of people in Vietnam a guarantee for a bright future. Besides business, Prudential Vietnam joint in social activities to help build the lives of poor families as well as incubates for young talents. I am sure that when anyone see the logo "The Man from the Pru" with the slogan "Always listening. Always understood, "then everyone can say that is the Prudential. This is a testament to the success of Prudential Vietnam turned over the building and put their brand in mind, everyone's confidence