>>Online Demographics: The demographics of the Company's potential customers are closely aligned with those of the online community. Generally, Internet subscribers are (i) predominately younger than the average for the general population; (ii) have higher household incomes than the national average; (iii) obtain higher educational levels than the national average; and (iv) include a high proportion of self-employed, small office and home office individuals. Based upon statistical information provided by AOL, the average AOL subscriber is 37 years old, has a household income of $60,000 or greater, has a college education and is self-employed.
Target Marketing Strategy: The primary target markets are the small group and the individual market. Within the individual market, the targeted customers are individuals who are not covered by a corporate sponsored health plan. Potential individual customers include (but are not limited to) people who are self-employed, part-time employees or full-time independent contractors or other individuals who are not covered by a corporate sponsored health plan.
Initially within the small group market, the Company intends to focus its marketing efforts on groups of four or less, including small office and home office-based individuals. The Company believes its combination of cost advantage and customer-centric shopping environment will prove a compelling proposition for its targeted customer segments.
The small office/home office community is a highly attractive market to HealthAxis. HealthAxis expects to exploit this market with both its individual and small group products. The cost savings resulting from buying direct can be substantial when experienced by multiple employees, even for very small groups.
HealthAxis expects the average size of a group sale to increase over time.
Product Pricing: HealthAxis believes that pricing will represent its single most important competitive advantage relative to the competing health insurance distribution channels. Offering product to consumers via the Internet will allow the Company to re-engineer a multi-layered distribution system that has historically added significant cost to the typical health insurance product.
Depending on the policy, consumers may enjoy savings of up to 15% as compared to product offered through the traditional insurance distribution system. The Company plans to continually monitor its price competitiveness across the country. HealthAxis evaluates pricing environments on a zip code by zip code basis, to ensure the competitiveness of its products. HealthAxis plans to strive to be a cost leader at any given level of plan benefits in the markets in which it participates.
Life Cycle Marketing: The Company's market research indicates that the purchase of health insurance is generally associated with a variety of identifiable life events. These events represent situations in which a potential customer may recognize a heightened need for insurance and include, among other things, loss of job, new job, graduation from college, marriage, birth of a child, divorce, relocation, starting a new business and discontinuing operations of an existing business. These life events generally result in the destruction of existing health care relationships and require the establishment of new ones.
Identifying these events and targeting individuals experiencing such events are important elements of the Company's marketing strategy.<< |
