Marketing Plan of Aegon
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EVALUATION OF AEGON’S INTEGRATED ANNUAL REPORT 2020
Introduction
There are a wide range of investment, protection, and retirement products offered by Aegon. Over 175 years ago, the company was founded. Known as Transamerica, they now operate in a number of nations, including the United States (Connell., 2020). The Hague, the Netherlands, is home to their corporate headquarters. For example, the company provides financial services to its customers; it is also an employer and business partner, pays taxes and contributes to the community through investing their money. Aegon's value creation is diverse. Customers, the environment and the communities in which they operate all need to be taken into account in order for this to be a successful business model.
Aegon’s Strategy
2020 marks Aegon's introduction of an ambitious operating plan with new financial targets for all stakeholders, as well as the implementation of initiatives based on these goals. As part of this strategy, the company aims to lower its costs, increase its margins, and grow profitably.
These strategies included;
Focused portfolio and capital management
New strategy emphasis for Aegon in 2020, targeted at improving their performance trajectory by enhancing value for customers, shareholders, and other stakeholders in the firm. One global asset management business is the focus of their new strategy, which focuses on a limited number of key regions. They focus on three major markets: the United States (the largest retirement and protection market), Netherlands (the second biggest), and Britain (the third). Spain and Portugal, Brazil, and China are among their fastest-growing markets (Ceylan and Tezergil., 2017). Aegon will look for ways to expand in certain locations, such as taking advantage of local growth prospects, establishing strong local alliances, and pursuing promising sales and distribution channels, as part of its concentrated approach. Among the other major enablers for success are Aegon Asset Management (AAM) and a new global operational platform that will allow them to leverage economies of scale, realize synergies and expand their third-party assets.
Aligning Aegon to its Strategy
Aegon's transition calls for a shift in organizational rhythm and a more disciplined governance in order to succeed. As a result, they will be able to change their operational model. In the United States and the Netherlands, they are creating specific teams to manage their Financial Assets. CEOs with the necessary skills, competences, and mindset will be hired to handle these books for the best possible financial results.
Decisions will be made more quickly and accountability will be established. They will shift to a clear structure for accountability. It is now the group's responsibility to come up with a strategic plan, allocate capital according to the group's defined risk tolerance level and set goals for its implementation. It also defines operational directives, policy and framework and provides shareholder service. Local strategies and operating plans are developed by business units within the overall strategy framework to guarantee that these strategies are implemented.
Increase of Profitability Growth
Cost-cutting measures are being used by Aegon's management in order to improve its operating performance materially. With a stringent and precise operating plan, it hopes to save EUR 400 million by 2023, which represents 13% of the total addressable expense base (Aegon Integrated Annual Report 2020 pg 22). One of the goals of Aegon's affiliate distribution channels expansion is to increase the conversion of assets under management into assets managed in-house by AAM, as well as to improve cross-selling and customer retention.
With a focus on increasing long-term profitability, Aegon is also enhancing the firm's financial stability by focusing on building a stronger and more stable business model. While strengthening their balance sheet and reducing debt, the company plans to reduce their exposure to changes in interest rates and other financial market movements.
Value Creation
As part of the company’s strategy, the management has identified different areas that can contribute to its profit growth which include growing of customer base, enhancing customer experience and improving margins as discussed below:
Growing of customer base
There are about 30.4 million individual clients in Aegon's broad customer base (Aegon Integrated Annual Report 2020 pg 22). In order to achieve this, the company must gain a foothold and maintain it in places where it can develop and earn a healthy return on its investment. Additionally, the company will look for ways to expand Strategic Assets in its core regions and their emerging development areas including China's life insurance sector, and Spain and Portugal's banc assurance businesses.
Enhancing Customer Experience
In order to improve Aegon's user experience, the firm will need to upgrade its business technology and systems. This will allow the company to fulfill client requests substantially faster, as well as offer new and improved consumer offer. Customers will have more ways to interact with Aegon thanks to the company's continued investment in self-service capabilities.
Improving Margins
Increased margins are being sought by decreasing costs, improving efficiency and looking for opportunities for profitable expansion across Aegon's many markets and business areas. They have discovered specific opportunities for sustainable expansion within their core regions, for example by increasing the use of proprietary investment products they have identified. With the move to a global operating platform, AAM's management will be better able to optimize its operations and enhance profitability, As a result of their new global strategy; they expect growth in related channels and third-party assets in markets where competition is fierce. It is essential that Aegon maintain a high-performance culture, make significant investments in employee training, and place a strong emphasis on customer service if it is to meet its ambitious growth targets (Taneja, Sewell and Odom., 2015). They want to build on their strengths: brands, extensive worldwide client base, and strong knowledge in building solutions, overseeing assets, and establishing distribution networks. In this approach, the organization is optimistic will be able to more effectively support their clients and fulfill their objective.
Company Performance
The COVID
