This document provides a business plan for launching a new insurance product called I.Master. It includes an overview of the product, goals of launching it, analysis of the insurance market in Hong Kong, and competitive landscape. The plan outlines target customers, features and benefits of I.Master, pricing strategy, marketing approach, and risks. The goal is for I.Master to gain wide reputation and become a top 3 insurance product in Hong Kong within 3 years of its launch.

1. Company Confidential
i.Master Business Plan
Revision Number: 05
Author: Eliteen (Group 9)
Date: 07/2011

2. Table of Contents
Overview........................................................................................................................................3
Product Description......................................................................................................................3
Goals of the Product Launch.......................................................................................................4
Market Overview...........................................................................................................................4
Market Maturity...........................................................................................................................5
Market Trends.............................................................................................................................5
Growth Rate...............................................................................................................................5
Competitive Analysis....................................................................................................................6
Competitor 1...............................................................................................................................6
Competitor 2...............................................................................................................................7
Competitor 3...............................................................................................................................8
SWOT Analysis...........................................................................................................................8
Target Customer...........................................................................................................................9
Demographics............................................................................................................................9
Customer Needs.........................................................................................................................9
Why have i.master......................................................................................................................9
Purchasing & Decision Making Patterns...................................................................................10
Sales Process & Cycle.............................................................................................................10
Positioning..................................................................................................................................10
Unique Selling Proposition (USP).............................................................................................11
Tag Line.......................................................................................................................................11
Features & Benefits....................................................................................................................11
Pricing.......................................................................................................................................... 12
Pricing Strategy........................................................................................................................13
MSRP & Street Price................................................................................................................14

3. Channel Discounts....................................................................................................................14
Marketing.....................................................................................................................................15
Marketing Tactics & Promotion.................................................................................................15
Launch Budget..........................................................................................................................15
Marketing Mix...........................................................................................................................15
Expected ROI..............................................................................................................................16
Timeline/Schedule......................................................................................................................16
International................................................................................................................................17
Critical Success Factors............................................................................................................17
Necessary Commitments & Owners.........................................................................................17
Risks.........................................................................................................................................18
Overview
Our company, ING group, as one of the top principal companies in the insurance marketplace, products
performance of which are quite satisfactory. Through profound research and we find it high time
launched a new fund investment insurance product, I.Master, which would surely perform a leading role
in the insurance marketplace within the coming years. I.Master would keep expanding positive impacts of
our company, and itself would also gain a widely reputation in the insurance marketplace.
Product Description
Our new product I.Master provides a valid insurance plan of the duration from 5 to 30 years. Every
individuals can receive the repayments from even one year old to at most 75 years old minus the chosen
periods of year which the insurance product being carried on. The primitive saving date is been regulated
to 18months. The highest age that can validate insurance is limited to 100 years old. I.Master can be paid
annually, semi-annually as well as monthly, which is quite flexible to customer to choose.
Fix investment insurance is mainly consist of two parts, the initial saving accounts together with the
accumulated saving accounts. Those insurance fees being paid within the first 18 months will be the fixed
money to be saved the former account, which cannot be withdrawn; while when it is later after 18 years,
the insurance fee would be sent to the latter account, and some long-term investment returns and extra
fees would also be saved in the second account.
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4. Extra rewards are also guaranteed to be saved to the second account. Lifelong Valuable Insurance
account is guaranteed with 101% value of the initial saving account and accumulated offering account.
The fund can be variously combined as customers’ like. In this way, they are much more flexible and more
convenient. Because every individual has his own situation, flexible products can help them have a more
private and suitable plan of choosing the fund. And the wealth growing meets the need of the customer.
Any changes of the fund combinations are favorably free.
Goals of the Product Launch
Non financial goals:
1 Have a widely reputation in the marketplace.
In the first year, we will do more propaganda activities for the new insurance product; let potential
customers be familiar with I.Master.
2 Have a leading performance in the insurance market.
I.Master will occupy the main commercial insurance market in the first three years.
Financial goals:
1. To obtain revenue targets of 10 percent per year over time.
2. To obtain the number of carrying partners of at least 20 percent of overall customers.
3. To have a scale of 1 million of the fund offering by the second year.
Ultimate goals:
1.We aim to expand the impact of I.Master in the very first year to all of our potential customers.
2. To be a Top 3 principal commercial insurance product in the marketplace within 3 years .
Market Overview
Hong Kong is one of the most dynamic insurance markets in the world. Its geographic location, credible
legal system and effective regulatory framework have helped it to become a leading insurance centre in
Asia that has attracted many of the world’s top insurers. Hong Kong has one of the highest per capita
expenditure on insurance in the Asian region.
Mainly because of the panic of SARS wand the financial crisis in 2008, the demand for insurance products
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5. has been rising rapidly in recent years, and is expected to continue growing substantially during our
forecast period (2009-2013) and may vary its forms. There will not be any significant impact of the
economic turmoil on the market as consumers have not stopped buying insurance products but simply
changed their choices for insurance products. They are now opting for less risky products which have least
exposure to the open markets. What’s more, the insurance product related to a bank is now a growing
popular option. Thus, the investment-linked products will meet a growing trend as well as the traditional
(non-linked) insurance products.
MARKET MATURITY
The insurance industry in Hong Kong came to exist in 1835, and until now it has a history longer than 150
years. Without doubt, the market is rather mature market. The insurance penetration rate is also high as
compared to the overall Asian region. The high market density and penetration rate is due to the
government efforts and high insurance awareness among consumers.
Although the market is said to be kind of mature, it still has its limits compared with some other regions.
As its market dominant share is only 96.8%, which in Taiwan is over 130% and is above 100% in Singapore,
there is much potential hidden in the market.
MARKET TRENDS
Policy administration led the insurance technology spending in Hong Kong, accounting for 27.7%, with a
spend of $101.6m in 2007. Claims processing followed, with a spend of $56.7m, accounting for 15.5% of
the total insurance technology spend in 2007.
Technology spending within the life insurance business line in Hong Kong was valued at $301.9m in 2007,
growing at a CAGR of 9% between 2005 and 2007. Policy administration led the life insurance technology
spending in Hong Kong, accounting for 29.1%, with a spend of $87.9m in 2007.
GROWTH RATE
Total gross premiums were HKD207.2bn (USD26.6bn) in 2010, representing an increase of 11.6% over the
previous year, according to figures released in March 2011.
In the first quarter of 2011, total gross premiums were HKD56.3bn, representing an increase of 13.3%
over the corresponding period in 2010. Meanwhile, gross and net premiums of general insurance business
rose by 11.2% to HKD10.3bn and 8.4% to HKD7.0bn respectively compared with the corresponding period
in 2010. Overall underwriting profit however declined from HKD559m to HKD482m.
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6. As at March 31, 2011, there were 167 authorized insurers in Hong Kong, of which 102 were pure general
insurers, 46 were pure long-term insurers and the remaining 19 were composite insurers. As of the same
date there were 2,365 insurance agencies, 32,782 individual agents and 26,693 responsible
officers/technical representatives registered with the Insurance Agents Registration Board (IARB).
Competitive Analysis
The overall insurance market is always competitive, that the cake is attractive and there are many people
willing to take advantage of this trend by launching similar products with the same idea of I.Master.
Those competitor companies which are qualified enough to launch their own insurance product with
similar ideas of the various fund combination choices, would take advantage of our success. However,
people tend to be with more loyalty to the earliest one of the product in the similar conditions.
COMPETITOR 1
China Life Insurance (Group) Company and its subsidiaries (hereinafter referred to as China Life)
constitute the largest commercial insurance group in Mainland China. It is the only domestic insurance
group with an asset exceeding 1 trillion RMB yuan. It is also one of the largest institutional investors in
China's capital market.
In 2010 its insurance premium income hit 350.612 billion RMB yuan. Life premium income accounted for
37.2% of the Mainland's life market share. By the end of 2010, its total asset reached 1.7760 trillion RMB
yuan.
China Life Insurance (Group) Company, headquartered in Beijing, is a large state-owned financial and
insurance company. Its predecessor, PICC was founded in 1949 and the PICC (Life) Co., Ltd was set up in
1996 after its separation from the former PICC. In 1999, it was renamed China Life Insurance Company.
With the approval of the State Council and the China Insurance Regulatory Commission, the former China
Life Insurance Company was restructured as China Life Insurance (Group) Company in 2003. It has China
Life Insurance Company Limited, China Life Asset Management Company Limited, China Life Property &
Casualty Insurance Company Limited, China Life Pension Company Limited, China Life Insurance
(Overseas) Company Limited, China Life Investment Holding Company Limited and Insurance Professional
College as its subsidiaries. Its business covers life insurance, property & casualty insurance, pension plans
(corporate annuity), asset management, industrial investment and overseas operations. Through capital
operation, it has invested in several banks, security firms and other non-financial institutions.
China Life has been listed for eight consecutive years on the Fortune Global 500 list, and its rank moved
forward drastically from 290 in 2002 to 118 in 2009. It has been listed for the third consecutive year
among the World Brand 500 and ranked at 278th place in 2009. It is the only Chinese insurance company
on the Fortune Global 500 list and the World Brand 500 list. After the dual-listing in New York and Hong
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7. Kong in December 2003, China Life Insurance Company Limited returned to China A share market in
January 2007 and has become the first insurance company to be listed in Shanghai Stock Exchange. It is
also the first insurance company triple-listed in New York, Hong Kong and Shanghai and has become the
largest public life insurance company in the world in terms of market capitalization.
At present, China Life endeavors to implement a conglomeration strategy of “rational resource allocation,
clear comprehensive advantages, strong core businesses, appropriately diversified operations, high social
respect and peer acknowledgement, high imbedded value, strong core competitiveness and forceful and
sustainable growth”. It is our goal to build China Life into a world-class financial and insurance group with
“strong capital resources, advanced corporate governance, well-established management system,
stringent internal control, leading technologies, first-class team, superior service, outstanding brand,
balanced and harmonious development”.
COMPETITOR 2
As a member of the HSBC Group, HSBC Insurance shares an international network with offices around the
world and distributes insurance policies in 53 countries. Today HSBC Life (International) Limited is one of
the top insurers in the world.
We have been named Life Insurance Company of the Year 2006 by Asia Insurance Review and London-
based The Review - Worldwide Reinsurance magazine. Both magazines are highly-respected industry
publications that provide a benchmark for the Asian insurance industry. Their annual Insurance Awards
have grown to become a symbol of great prestige and a testament to the industry's aggressive pursuit of
excellence. In 2007, we were named as the Best SME partner for MPF Services by Economic Digest
Magazine in Hong Kong.
HSBC Insurance (Asia) Limited - Standard & Poor’s AA/Negative
HSBC Life (International) Limited - Standard & Poor’s AA/Negative
HSBC Insurance (Singapore) Pte Limited - Standard & Poor’s A+/Stable
HSBC Amanah Takaful (Malaysia) Sdn Bhd - Fitch A
As at 31 December 2009:
-HSBC Group’s total assets stood at US$2,364 billion
-Globally, HSBC Insurance contributed US$2.5 billion or 18% of Group profit, of which Asia Pacific Region’s
share was US$1.2 billion i.e. 49%
-Around 2,590 staff provided professional support to the business and customers of HSBC Insurance in
Asia
From the second half of 2007 to 2009 and, Financial Supervisory Commission awarded HSBC Life
Performance Excellence Insurance Company for enhancing insurance protection for the public.
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8. COMPETITOR 3
HSBC Life Insurance Company Limited, a joint venture set up by HSBC and the Beijing-based National
Trust, opened for business in Shanghai Thursday, marking the global financial giant's entrance into one of
the world's fastest-growing life insurance markets.
The joint venture, headquartered in Shanghai, has registered capital of 500 million yuan (73.2 million U.S.
dollars). HSBC and the National Trust each hold a 50 percent stake.
The company will focus on the sector of China's population that has rapidly-growing discretionary income
and will offer life, pension and medical insurance products.
"China is the focus of HSBC's strategy in emerging markets," said Zheng Haiquan, chairman of HSBC Asia
Pacific. "If HSBC has no insurance business in China, we could not be called one of the world's largest
insurance companies and China's largest foreign bank."
China's total life insurance premiums amounted to 733.8 billion yuan in 2008, up 48 percent from the
previous year, the second in scale in Asia after Japan. But its insurance penetration, or premiums as a
percentage of the economy, was low at 3.3 percent, said David Fried, board chairman of the joint venture
and chief executive officer of HSBC Insurance for Asia Pacific.
China's large population, low insurance penetration and ongoing economic reforms make for confidence
in the important role the Chinese market would play for HSBC insurance's global expansion, he said.
HSBC also holds 16.78 percent of Ping An Insurance (Group) Co. of China, the country's second largest life
insurer.
SWOT ANALYSIS
Strength
Professional Team: All fund managers in our company are qualified enough to give advice about our new
in
need of the customer.
Weakness:
Money which is in the initial saving account cannot be withdrawn.
The Redemption fee is unreasonably high if the initial saving account has not reached certain amount.
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9. Opportunities:
Large Potential Market: As all human are living with the capital market, we have a clearer view towards
the future plan of the fund investment. Because human are risk-avoiding and greed, they are willing to
grow their wealth in a relatively stable way by choosing our high-qualified fund.
Stable & Risky at the Same Time: According to different habits, there are enough choices.
Threat:
Competitors: The cake is attractive and there are many people willing to take advantage of this trend by
launching similar products with the same idea of I.Master.
The Traditional Attitude: People who are reluctant to receive new fund investment ideas may follow their
fathers’ way, which makes us lose some customers.
The Cycle of Economy: There is always a cycle in the economy. When it is gloomy, the return rate of fund
investment may be negative.
Target Customer
DEMOGRAPHICS
From the occupation and income survey result we can see white collars with income of $40,000-$80,000
consist the most part, which offers a good reference for us to cover this group as targets customers.
CUSTOMER NEEDS
1.To smooth people's consumption.
2 To minimise losses from accident
3 To protect their health-care
To protect their future generations'education, health,and mortgage
4 To get insuranceto for their old ages
5 Others
WHY HAVE I.MASTER
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10. 1 Customers can start their investments with as US$125 per month, a choice of premium terms ranging
from 5 to 30 years .
2 In addition an extra 10% of the Account Value,subject to a maximum of US$12,500,will be payable as
accidental death of the life insured during the 1st five policy years.
3 While the policy is in force, the life coverage of the basic plan will be equal to 101%of the total Account
Value of this plan.
PURCHASING & DECISION MAKING PATTERNS
Bank: banks are believed less likely to default.
Security Company:Investor can buy fonds though the transaction system on lin
Insurance Company
SALES PROCESS & CYCLE
(1)Publicity
We classify people from publicity department into different groups by various standards; according to the
promotional methods, we now assume the company mainly have four ways to publicize i.Master:
television advertising, magazine and newspaper advertising, field sales and Internet promotion. In this
case, the company must cooperate with television broadcast stations, publishing companies, banks and
even security companies. The promotion process starts right after i.Master is legally admitted, i.e the 16th
week. Basically, the costs would be high in the very beginning, while it would diminish with time going by.
(2)Sales
Managers and salesmen would be trained before i.Master entered the market.
Positioning
Our target market is Hong Kong. Based on the survey, considering our company features, the ideal clients
are:
(1) Collage students who will graduate in 1 or 2 years, relatively lack of insurance knowledge, caring their
future, easy to accept new things.
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11. (2)Young ‘white collars’ who just started their career, facing uncertain future and having strong income
growth potential.
(3) Clients aged between 35 – 55 whose career just enters the growth stage. They already bought
insurance; however they demand more insurance for themselves or their family members.
Unique Selling Proposition (USP)
(1)The investment-linked insurance plan can be supported be as little as USD125 per month, which is
perfectly suited for those young white collars who have the desire to invest and finance by himself.
(2)Account A and account B can be converted under certain circumstances.
(3)Death benefit and prevention for accident, which can only be withdraw with i.Master is another great
attraction for elder ages.
Tag Line
"i.Master, Your Master, Our Master"
i.Master--I am the one who master my own life.
Your Master--i.Master is the perfect fund for you to help manage your wealth.
Our Master--with i.Master in hand, we can all become capable in financing ourselves, control our future
and the social economic megatrends.
Features & Benefits
Feature Benefit
Investment-linked insurance plan with
as little as US$125 per month
Which means that you can easily start
investment and be your own master
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12. A wide range of investment Choices Which means that you have access to a
wide range of select investment choices
that allow investment in multiple business
sectors, geographic locations and asset
classes
A flexible investment Which means that you can have unlimited
and free changes of your investment
choice according to your personal
situation and your personal value system.
Death Benefit Which means that you can get an extra 10
% of the total account value of your
investment
A total different range of premium terms Which means that you can choose your
own premium terms ranging from 5 to 30
Pricing
I Master
Premium 10-year 5—30 years
Policy issued by age 1—（75—Premium 10-year）
Initial contribution period Uniform for 18 months
The policy expiration of the highest fixed
number of year
100 years old
Policy way due For Years /For half a year/For months
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13. PRICING STRATEGY
Pricing strategy
i.Master is a kind of insurance that all kind of investor can buy. We set up graded price system so clients
can choose the right products they need.
(1) For low income crowd whose annual income under 12000US$, such as college clients, the annual
minimum investment can be just 1500 US$. A low price plan with low return could be provided. For
instance, annual invest amount between 1500 to 3000USD can get a reward percentage up to 6%.
(2) For middle class like white collars, the reward percentage can be more moderate and flexibility. The
more you put in, the more reward you will get. For example, the investment premium of 12000us$ can
get 4% reward during the 5 to 9 year while that of 6000us$ can only get 3%.
(3) For clients who own much money and want to get high reward, I Master can meet your need for we
offer a high reward. If the investment premium is over 40000US$, the reward percentage could be up to
5.5% at the first 5 to 9 years and if you have invested for 30 years, your reward percentage could reach
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Annualized
premiums fixed
investment
(dollars)
Reward
5-9
percentag
e
10-14
（Premium
calculated
15-19
according to
the term)
20-24 25-29
30
1,500-<3,000 1.0% 4.0% 5.0% 6.0%
3,000-<6,000 0.5% 1.0% 4.0% 9.0% 11.0% 12.0%
6,000-<12,000 3.0% 5.0% 12.0% 20.0% 25.0% 30.0%
12,000-<20,000 4.0% 8.0% 19.0% 32.0%
40.0￥
45.0%
20,000-<40,000 5.0% 10.0% 20.0% 38.0% 50.0% 55.0%
>40,000 5.5% 11.0% 24.0% 42.0% 55.0% 57.0%
13

14. 57%.
MSRP & STREET PRICE
I Master
Premium 10-year 5—30 years
Policy issued by age 1—（75—Premium 10-year）
Initial contribution period Uniform for 18 months
The policy expiration of the highest fixed
number of year
100 years old
Policy way due For Years /For half a year/For months
The lowest premium regularly investors For Years For half a
year
For months
US$1,500 US$750 US$125
CHANNEL DISCOUNTS
Extra security reward
（1）In the first year in each policy pen fixed investment, the extra premium will receive a
complimentary investment units, and distribution to the customer's initial contribution account
（2）Ensure that extra bonus payments=0.3%*Premium 10-year *Fixed investment insurance
Cost
Guarantee first year award
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15. （1）In the first, customers can anniversary date policy was a guaranteed in the first prize. The first year
of a reward to select the unit of the additional investment way, the allocation to customer first
contribution account
（2）Ensure that the first year of bonus payments=Reward percentage*Annualized premiums fixed
investment
Marketing
MARKETING TACTICS & PROMOTION
Public Relations
Web Marketing
Advertising
Collateral
Events (Launch, Trade Shows, Other)
Direct Marketing Campaigns
Channel Marketing Programs
Social Media
LAUNCH BUDGET
MARKETING MIX
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16. 24%
1%
50%
5%
6%
4%
10%
PR
Adwords
Print Advertising
Collateral & Demo
Trade Show/Launch Event
Email Blasts
Channel Mktg Program
Expected ROI
Timeline/Schedule
1 Researches on customers' needs are done within three weeks, which can be conducted in
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17. questionnaire, phone call and on-line vote.
2 Analyses on consumers' pain points and design of i.Master is approximately accomplished in five weeks.
3 When the design of i.Master finished, the company will start the second round research, so as to weight
its product and make improvement.
4 Managers and salesmen would be trained for three weeks before i.Master entered the market, to make
i.Master better fit in the market.
5 After all those being finished, promotion work begin in the sixteenth week.
International
Date August 8th
2011
Budgets Wages for workers, such as hosts, usherettes and photographers
Costs of handbill, posters and other promotion materials
Costs of public security
Rent of building
Net of errors and omissions
Planned Activities Introduction of i.Master
Q&A
Banquet
Critical Success Factors
NECESSARY COMMITMENTS & OWNERS
According to the classification of departments, we now assume the whole process mainly take four
steps : research and analysis, design, revalue and promotion. Thus, the company must cooperate with
many other companies, such as firms of accountants, publishing companies and banks. Further more,
commitments between and within the companies should be made.
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18. RISKS
(1)The fact that money in the initial saving account cannot be withdrawn will drive out some potential
customers in a way.
(2)The Redemption fee is unreasonably high if the initial saving account has not reached certain amount.
(3)The overall insurance market is always competitive, that the cake is attractive and there are many
people willing to take advantage of this trend by launching similar products with the same idea of
i.Master.
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