Executive Summary
MKT FPX 5416 Assessment 3 Cigna HealthCare is a leading international service corporation, now headed by CEO David Cordani. Its core mission is to dominate the healthcare insurance industry by promoting the evolution of a sustainable healthcare system that focuses on quality care. This effort is driven by a commitment to delivering high-quality services and rewarding excellence in healthcare provision. With 37,000 staff, Cigna serves over 86 million customers across 30 countries, underpinning the belief that enhancing customer health is at the heart of promoting overall well-being and security. Established in 1792 as variously named companies, Cigna has deep historical foundations in the insurance industry, having evolved through innovation and a high focus on customer-centric strategies across all market segments (Cigna, 2019).
The company seeks to be the premier health optimization leader among employers and organizations, assisting employees in achieving and maintaining their health. Cigna’s internal and external sales partners genuinely work to improve health, well-being, and security through a range of innovative products and services. These activities reduce medical expenses while enhancing overall health outcomes. Cigna provides a global network of physicians and hospitals, offering consistent customer service. Its current marketing slogan, “Together, All the Way,” captures its extensive range of services and customer care commitment (Cigna, 2019).
Market Segmentation
Cigna’s market reach across the United States varies significantly among the 50 states. The New England states, particularly Connecticut where its company headquarters are, are highly saturated, together with states like Colorado, Arizona, and segments of the Southeast. Opportunities for growth, however, remain in other places. Internationally, Cigna has expanded its reach through strategic acquisitions, mergers, and collaborations with local insurance companies in countries like Turkey, Belgium, the United Kingdom, Brazil, Japan, Taiwan, Thailand, India, and Nigeria and thereby created a powerful presence in the marketplace (Patrick, 2015).
The mission of Cigna emphasizes health, well-being, and security (Cigna, 2019). In order to achieve these goals, the company attempts to create a seamless world that is personal, trustworthy, easy to navigate, and caring. By fostering a sense of community through support, promoting diversity, and innovation, Cigna works to build a better future. By partnering with others, Cigna can offer sustainable solutions that add value to customers, stakeholders, and the company in turn, thus maintaining its ongoing global growth and expansion.
Background of the Problem
Cigna Healthcare identifies a number of minority market segments, including African Americans, Hispanics, Asian Americans, veterans, and LGBTQ communities. The company adheres to a philosophy of non-discrimination around the world. Similar to other healthcare organizations, Cigna is targeting these minority segments that are bound to increase substantially, and such companies are in a position to realize the potential of this burgeoning market segment. With 20.4 million U.S. war veterans making up approximately 7.3% of the population, this population also requires large amounts of healthcare services, most of whom have disability-related health problems.
Demographic trends indicate rising percentages of ethnic populations, namely Hispanics and African Americans. These groups account for 12% of the 85 years and older group and 39% of the five and under group. These trends mean that future generations of Americans will be predominantly ethnic minorities, potentially comprising over 50% of the population. The LGBTQ population while reporting very good health may not be as large an opportunity for expansion as other minority groups.
Literature Review
MKT FPX 5416 Assessment 3 Cigna highlights the importance of individualizing the customer through customized branding, supply chain choices, advertising tactics, and price choices in the home market. The increasing cost of care has highlighted the importance of educating customers about their own unique healthcare needs. The Affordable Care Act (ACA) has expanded the market to individual consumers and made health care more affordable. Cigna’s marketing initiative focuses on providing the right care at the correct time for the correct diagnoses. Previous marketing programs have been developed to achieve this purpose.
Recommendations
To strengthen its organizational systems, Cigna HealthCare needs to make diversity not only a policy but a core value that is ingrained in its leadership and operations. Adopting a holistic approach to diversity will enable the brand to become more inclusive and effectively market to minority segments. Diversity and minority markets need to be accepted as a strength, establishing Cigna’s brand identity and enhancing its marketing efforts.
Targeting the African American market segment, Cigna must address specific healthcare needs, such as increased susceptibility to conditions like prostate cancer. Marketing efforts must be aimed at genetic testing, counseling, health equity, and outreach programs that speak to the health conditions prevalent in this population. Cigna’s participation in initiatives like the CEO Action for Diversity and Inclusion demonstrates its commitment to diversity, with the aim of attaining workforce composition and cultural competence in care. Some examples of such initiatives include Hispanic/Latino market-specific health resources and Asian/South Asian diabetes population-specific initiatives.
Cigna’s Colleague Resource Groups (CRGs) play a critical role in facilitating the application of cultural intelligence to enhance 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 demonstrate Cigna’s dedication to diversity. Moreover, the PRIDE CRG also has LGBTQ-related activities, such as partnerships with organizations like the Gay and Lesbian Medical Association (Cigna, 2019).
Conclusions
For an organization to be successful and profitable, it needs to differentiate itself from others using varied strategies. These strategies include targeting exclusive customer segments, improving product development, or using innovative marketing strategies, as seen in the case of Cigna. The company’s focus on minority market segments such as African Americans, Hispanics, Asian Americans, and U.S. war veterans indicates a non-discriminatory policy. Interestingly, the Hispanic market is growing dramatically in the United States. Women and African Americans are more likely to present greater health issues than other groups, and so Cigna has targeted them. Targeted strategy has allowed Cigna to target niche segments with a great deal of success and expansion. In general terms, targeting chosen market segments using specialized strategies enables organizations such as Cigna to gain enormous profits and growth. To survive in the current competitive business world, organizations must identify specific segments and develop specific strategies to overcome others.
Cigna’s minority focus has reaffirmed leadership in insurance and set it for long-term viability. Cigna has introduced Customer Resource Groups (CRGs) for nontraditional market segments other than traditional minority segments, including the Multigenerational CRG, People with Differential Abilities (PWDA) CRG, Virtual CRG, and Cigna Women’s CRG. Such innovative marketing initiatives have set Cigna to retain insurance leadership in the future.
References
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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:
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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
