Research On The Strategic Adjustment Of Marketing Channel In CPIC Shanghai

With the deepening and development of the market oriented economy in our country, our insurance market is enjoying a great change. In the 80s', there was only one dominating company in the market, while a variety of foreign and domestic share-holding insurance companies operate in the market at present. For the high similarity of the product, foreign insurance groups joined the market actively after China entering WTO, which stimulate the more and more fierce competition in the insurance market. Therefore, marketing channel is gradually taking the place of product sales. The scramble for market share is not only the simply compete of the products, but marketing channels as well. How to change mind, develop marketing channel and maintain a stable business growth in the heat competition has been a critical issue for domestic property insurers.Though being the lead in the industry, China Pacific Property Insurance Co. Ltd (CPIC)is facing problems in its marketing channel in recent years, which may account for the efficient sales and management. Those traditional direct sales have not fit for a rapid market scramble under present economic background. The Company must make full use of its strength and advantages to adjust for the market changes and lead the market forward. Being recognized as good experience internationally, cooperation with brokers and intermediary agents to expand business is a good choice for our domestic insurance company in its market share competition. In this article, I try to provide my viewpoint on the strategic adjustment of marketing channel according to the practical situation of CPIC.The article is combined by five sessions. The first session is introduction including the background, target as well as the main train of thought of my research.The second session is the general introduction of the China's insurance industry. In this session, I start with the variety of China's insurance market, and focus on the fundamental situation and features of the market development with an emphasis on the internal and external environment on the aspects of economy, culture and competition facing by CPIC.The third session is a diagnosis on the marketing channel of CPIC Shanghai. I analyze the situation of its marketing channels and the existing problems in this session.The next part is talking about the experience generated in the advance countries in the marketing channel. In countries such as America, UK, and Japan, the sophisticated insurance industry has been built up more standardized channel operation. The study on the development history may provide useful reference for industry development and strategic adjustment of China.The fifth session is the core of this article on the strategies of marketing channel in CPIC Shanghai. Aiming to gain success in the heat competition, CPIC Shanghai must build up efficient marking channels. I discussed the principles of strategic adjustment from such aspects as channel structure, price, service, motivation. Besides, I put forward the model to how to develop a diversified market channel and the protection mechanism for the efficiency.I try to provide my suggestion on creating more fair competition environment in China. I believe, the never-stop market development will bring up new challenges to CPIC Shanghai for further study.