MKT FPX 5416 Assessment 3 Market Segmentation

MKT FPX 5416 Assessment 3 Market Segmentation

Name

Capella university

MKT-FPX5410 Digital Marketing

Prof. Name

Date

Executive Summary

Cigna HealthCare is a prominent global service company, currently led by CEO David Cordani. Its primary objective is to dominate the healthcare insurance market by fostering the development of a sustainable healthcare system that prioritizes quality care. This initiative is motivated by a dedication to providing high-quality services and incentivizing excellence in healthcare delivery. With a workforce of 37,000 employees, Cigna serves over 86 million customers across 30 countries, reinforcing the belief that enhancing customer health is fundamental to promoting overall well-being and security. Established in 1792 under various names, Cigna has deep roots in the insurance industry, having grown through innovation and a strong focus on customer-centric approaches in all market segments (Cigna, 2019).

The company aspires to be the foremost leader in health optimization for both employers and organizations, supporting employees in achieving and maintaining their health. Cigna’s internal and external sales partners work diligently to promote health, well-being, and security through a diverse range of innovative products and services. These initiatives aim to reduce medical expenses while enhancing overall health outcomes. Cigna provides a global network of physicians and hospitals, ensuring consistent customer service. The company’s current marketing slogan, “Together, All the Way,” encapsulates its extensive range of services and commitment to customer support (Cigna, 2019).

Market Segmentation

Cigna’s market presence across the United States varies significantly among the 50 states. The New England states, particularly Connecticut, where the company’s headquarters is located, are well-saturated, along with states such as Colorado, Arizona, and certain regions in the Southeast. However, opportunities for growth remain in other areas. On the international front, Cigna has expanded its reach through strategic mergers, acquisitions, and joint ventures with local insurance companies in countries like Turkey, Belgium, the United Kingdom, Brazil, Japan, Taiwan, Thailand, India, and Nigeria, thereby securing a robust market position (Patrick, 2015).

The mission statement of Cigna emphasizes health, well-being, and a sense of security (Cigna, 2019). To achieve these goals, the company endeavors to create an environment that is easy to navigate, reliable, personal, and empathetic. By fostering community support, promoting diversity, and driving innovation, Cigna aims to build a better future. Collaborating with partners allows Cigna to deliver sustainable solutions that add value to its customers, stakeholders, and the company, thus supporting its ongoing global growth and expansion.

Background of the Problem

Cigna Healthcare recognizes several minority market segments, including African Americans, Hispanics, Asian Americans, veterans, and LGBTQ communities. The company maintains a global commitment to diversity and inclusion through a non-discriminatory approach. Similar to other healthcare organizations, Cigna is concentrating on these minority groups, which are anticipated to experience significant growth, presenting opportunities for organizations that can effectively address their needs. With 20.4 million U.S. war veterans making up approximately 7.3% of the total population, this group also requires extensive healthcare services, many of whom contend with health issues related to disabilities.

Demographic trends indicate rising percentages of ethnic groups, particularly among Hispanics and African Americans. These groups constitute 12% of the population aged 85 and older, and 39% of the population under five years old. Such trends suggest that future American generations will predominantly consist of ethnic minorities, potentially exceeding 50% of the total population. While the LGBTQ community generally reports good health, it may not represent as significant a growth opportunity as other minority groups.

Literature Review

Cigna emphasizes customer individualization through tailored branding, supply chain strategies, promotional tactics, and pricing strategies within the domestic market. The increasing costs of healthcare have highlighted the importance of educating consumers about their specific healthcare needs. The Affordable Care Act (ACA) has facilitated the entry of individual consumers into the market, making healthcare more accessible. Cigna’s marketing strategies focus on delivering the right care at the appropriate time for relevant diagnoses. Previous marketing campaigns have been designed to address these objectives.

Section	Description
Executive Summary	Overview of Cigna’s goals, services, and market reach.
Market Segmentation	Analysis of Cigna’s domestic and international market presence and mission statement.
Background of the Problem	Discussion of Cigna’s focus on minority market segments and the implications of demographic trends.
Literature Review	Examination of Cigna’s marketing strategies and their alignment with healthcare accessibility trends.

Recommendations

To strengthen its organizational systems, Cigna HealthCare should ensure that diversity is not merely a policy but a core value integrated into its leadership and operations. Adopting a holistic approach to diversity will enable the brand to become more inclusive and effectively market to minority segments. Embracing diversity and minority markets should be viewed as a strength, shaping Cigna’s brand identity and enhancing its marketing strategies.

Focusing on the African American market segment, Cigna should address specific healthcare needs, such as a higher risk for health issues like prostate cancer. Marketing initiatives should promote genetic testing, counseling, health equity, and outreach programs that align with the health concerns prevalent in this demographic. Cigna’s participation in initiatives like the CEO Action for Diversity and Inclusion underscores its commitment to diversity, aiming to optimize workforce composition and cultural competence in care. Specific examples of initiatives include health resources targeted at Hispanic/Latino populations and programs tailored for the Asian/South Asian diabetes community.

Cigna’s Colleague Resource Groups (CRGs) play a crucial role in leveraging cultural insights to boost engagement, performance, and career mobility. Initiatives like the African American/Black CRG, the Asian/South Asian CRG’s Diabetes Prevention Initiative, and the Veterans CRG’s mindfulness program illustrate Cigna’s commitment to diversity. Furthermore, the PRIDE CRG supports LGBTQ-focused initiatives, including partnerships with organizations such as the Gay and Lesbian Medical Association (Cigna, 2019).

Conclusions

For an organization to thrive and become profitable, it must differentiate itself from competitors through diverse strategies. These strategies may involve targeting specific customer segments, refining product development, or employing unique marketing approaches, as evidenced by Cigna. The company’s commitment to minority market segments—including African Americans, Hispanics, Asian Americans, and U.S. war veterans—reflects a non-discriminatory approach. Notably, the Hispanic population is expanding rapidly in the United States. Women and African Americans often face greater health challenges compared to other demographics, prompting Cigna’s focus on these groups. This targeted strategy has allowed Cigna to concentrate on niche segments, leading to significant growth. In summary, focusing on specific market segments with tailored strategies enables organizations like Cigna to achieve substantial profits and growth. To succeed in today’s competitive landscape, companies must hone in on particular segments and develop distinctive strategies to outpace their competitors.

Cigna’s emphasis on minority segments has solidified its leadership position in the insurance industry and ensured its future sustainability. In addition to traditional minority groups, Cigna has established Customer Resource Groups (CRGs) that target nontraditional market segments, such as the Multigenerational CRG, People with Differential Abilities (PWDA) CRG, Virtual CRG, and Cigna Women’s CRG. These innovative marketing strategies have positioned Cigna to maintain its leadership in the insurance industry moving forward.

References

CDC. (2019, January 23). Retrieved from CDC: https://www.cdc.gov/nchs/nhis/sexual_orientation/questionnaire.htm

Cigna. (2019, January 17). Retrieved from Cigna: http://www.cigna.com/about-us?WT.z_nav=personal%3BTop-Nav%3Babout-cigna

Cigna Connects: 2017 Corporate Responsibility Report. (2019, January 25). Retrieved from Cigna.com: https://www.cigna.com/about-us/corporateresponsibility/report/#!/people/diversity

Cole, D. (2012, February 22). BenefitsPro. Retrieved from Top 5 carriers – Cigna: http://www.benefitspro.com/2012/03/07/top-5-carriers-cigna-healthcare

Manders, M. (2008). HealthCare Strategy and Growth. CIGNA Investor Day.

Overland, D. (2014, September 10). Cigna rebrands to emphasize community, expand reach in international markets. Retrieved from FierceHealthPayer: http://www.fiercehealthpayer.com/story/cigna-health-insurance-marketing-strategy-domestic-international-markets/2014-09-10

Patrick, M. (2015, March 27). Cigna: US Insurance Provider With 32.9 Billion Market Cap. Retrieved from Market Realist: http://marketrealist.com/2015/03/cigna-us-insurance-provider-32-9-billion-market-cap/

MKT FPX 5416 Assessment 3 Market Segmentation

Schiffman, L. G. (2019). Consumer behavior (12th ed.). New York, NY: Pearson.

Sturdevant, M. (2014, September 8). Hartford Courant. Retrieved from Cigna Rebrands, Begins ‘Together, All The Way’ Campaign: http://articles.courant.com/2014-09-08/business/hc-cigna-new-platform-20140908_1_new-brand-campaign-medicare-customers-healthspring

The 2017 Annual Homeless Assessment Report (AHAR). (2019, January 24). Retrieved from The U.S. Department of Housing and Urban Development: OFFICE OF COMMUNITY PLANNING AND DEVELOPMENT: https://www.hudexchange.info/resources/documents/2017-AHAR-Part-1.pdf

United States Census Bureau. (2019, January 25). Retrieved from Decennial Census of Population