>>General Marketing Strategy:
HealthAxis' marketing strategy is designed
to promote awareness of the HealthAxis name, increase customer traffic to the web site, encourage purchases of HealthAxis' insurance products over the Internet, build customer loyalty through efficient claims processing and the availability of access to claims related and other information over the Internet, and maximize annual renewals. Commencing in the second quarter of 1999, HealthAxis intends to employ a combination of online and off-line advertising and promotion campaigns to stimulate web site traffic and increase its brand name recognition. The marketing efforts will also educate consumers as to the opportunity offered by online insurance purchasing, promote HealthAxis' brand name, and reduce its reliance on any one source of consumer traffic.
Web Site Promotion and Strategic Alliances:
HealthAxis' core promotional strategy involves the development of exclusive distribution relationships with major Internet gateways. HealthAxis' principal Distribution Partners are AOL, CNet, and Lycos. The Company expects these strategic relationships to raise brand awareness and to provide access to millions of online users. Based upon International Data Corp's ("IDC") estimate of 65 million U.S. Internet users, HealthAxis' relationship with AOL, alone, provides the Company with access to over 13.5 million members, representing approximately
20% of all U.S. Internet users.
Use of Related Online Channels: HealthAxis Distribution Partners are expected to add value to HealthAxis not just by the placement of banners and buttons, but by building information-rich environments attractive to HealthAxis' potential customer base. As these online services increasingly enhance their "insurance centers" and related product offerings, the Company believes overall customer traffic to HealthAxis should increase. The Company intends to prominently place itself not just in "insurance centers," but across multiple Internet channels to enhance the likelihood of attracting potential customer interest. Examples of such non-insurance channels may include, but are not limited to, health, money and business and shopping.
Online and Offline Marketing: HealthAxis marketing efforts will extend beyond the confines of its marketing arrangements with its Distribution Partners. HealthAxis intends to execute a variety of incremental media purchases both on the web and in traditional advertising mediums such as direct mail, radio, print and billboards. On the World Wide Web, HealthAxis plans to drive traffic to its site by buying spot media space both on additional portals and web sites that target the Company's core audience. The combination of exclusive distribution relationships and spot media purchases across multiple advertising mediums is intended to stimulate HealthAxis traffic and enhance the brand awareness among the target customer market.<< |
