MKT FPX 5416 Assessment 3 Market Segmentation

Student Name

Capella University

MKT-FPX5416 Consumer Insights

Prof. Name:

Date

Executive Summary

Cigna HealthCare is a global service company led by CEO David Cordani, aiming to lead the healthcare insurance market by fostering the construction of a sustainable healthcare system. This goal is driven by a commitment to quality care, incentivizing excellence in healthcare execution. Cigna serves over 86 million customers across 30 countries through its 37,000 employees, providing healthcare services and products. The company’s leadership believes that improving customer health is the cornerstone of ensuring well-being and security. Since its inception in 1792, under various names, Cigna has been entrenched in the insurance industry. Through innovation and expansion, both domestically and globally, Cigna has grown, focusing particularly on customer centricity [Cig19].

Cigna aims to be the global leader in optimizing health for employers and organizations, helping employees achieve and sustain health. Sales partners inside and outside the organization work to ensure health, well-being, and security through a broad range of innovative products and services. Through these efforts, Cigna seeks to reduce medical costs while improving overall health. Cigna offers a network of physicians and hospitals worldwide and provides consistent customer service. The company’s current marketing slogan, “Together, All the Way,” reflects its extensive portfolio of services [Cig19].

MKT FPX 5416 Assessment 3 Market Segmentation

Domestically, Cigna’s presence is uneven across the 50 states. The New England states, where its main hub is located in Connecticut, are well-saturated, along with states like Colorado, Arizona, and parts of the Southeast. However, there remain areas for improvement. Internationally, Cigna has expanded through mergers, acquisitions, and joint ventures with local insurance firms in Turkey, Belgium, the United Kingdom, Brazil, Japan, Taiwan, Thailand, India, and Nigeria, securing a strong market position [Pat].

Cigna’s mission to its customers emphasizes health, well-being, and a sense of security [Cig19]. To achieve this, the company strives to create an easy, reliable, personal, and empathetic environment. By promoting community support, diversity, and innovation, Cigna works toward building a better future. Collaboration with partners provides sustainable solutions that add value to customers, stakeholders, and the company, contributing to its continued global growth and expansion.

Background of the Problem

Cigna Healthcare’s minority market segments include African Americans, Hispanics, Asian Americans, veterans, and LGBTQ communities. The company practices diversity and inclusion globally by maintaining a non-discriminatory approach. Like other healthcare organizations, Cigna is focusing on these minority segments, which are expected to grow significantly in the future, offering potential growth for organizations that recognize and seize this opportunity. U.S. war veterans, numbering 20.4 million and making up 7.3% of the total population, are another major focus group requiring extensive healthcare services, with many veterans suffering from disability-related health issues.

The rising percentages of ethnic groups, particularly Hispanics and African Americans, are highlighted in demographic profiles, showing these groups comprising 12% of the population aged 85+ and 39% of the population under age five. This trend indicates that future American generations will consist predominantly of ethnic minorities, making up more than 50% of the population. The LGBTQ community reports good health overall and may not present as significant a growth opportunity as other minority groups.

Literature Review

Cigna focuses on customer individualization by implementing specialized branding, supply chain, promotional, and pricing strategies in the domestic market. Rising healthcare costs have emphasized the need for educating consumers about their specific healthcare needs. The Affordable Care Act (ACA) introduced individual consumers to the market, making modern medicine more accessible. Cigna’s marketing focuses on providing the right care at the right time for the appropriate diagnosis. Previous marketing campaigns, such as

Executive Summary

Cigna Health Care, a global service company led by CEO David Cordani, aims to lead the healthcare insurance industry by promoting the construction of a sustainable healthcare system focused on quality of care driven by incentives, with the goal of achieving excellence in healthcare delivery. Serving over 86 million customers across 30 countries, with the support of its 37,000 employees, Cigna provides healthcare services and products. The company’s leadership emphasizes that improving customer health is the key to ensuring well-being and security. Founded in 1792, Cigna and its predecessor entities have operated in the insurance sector and have grown through innovation. The company is particularly customer-centric across all market segments [Cig19].

Cigna aspires to be the global leader in health optimization for employers and organizations, aiming to support employee health sustainability. Internal and external sales partners work towards promoting health, well-being, and security through an innovative product and service portfolio. These strategies are designed to reduce medical costs while enhancing overall health. With a global network of physicians and hospitals, Cigna offers constant customer support. The current marketing slogan, “Together all the way,” reflects the company’s commitment to supporting customers through its broad and diverse services portfolio [Cig19].

MKT FPX 5416 Assessment 3 Market Segmentation

Domestically, Cigna’s market presence varies, with strong saturation in the New England states, Colorado, Arizona, and parts of the southeastern U.S. Internationally, Cigna has expanded through mergers, acquisitions, and joint ventures with insurance firms in Turkey, Belgium, the United Kingdom, Brazil, Japan, Taiwan, Thailand, India, and Nigeria, securing a strong market position [Pat].

Cigna’s mission to its customers is “health, well-being, and sense of security” [Cig19]. The company strives to create an environment that is easy, reliable, personal, and empathetic, while promoting community support and diversity. Cigna focuses on innovation to create a better future and collaborates with partners to provide sustainable solutions that benefit customers, stakeholders, and the company. As a result, Cigna has experienced consistent global growth.

Recommendations

Cigna Health Care should ensure that its organizational systems and structure reflect diversity as a tangible value, integrated into both policy and leadership. Cigna must take a holistic approach to diversity, embedding it into everyday operations. This will help the brand become more inclusive, allowing systematic marketing to minority market segments.Diversity and minority markets should not be viewed as challenges but as strengths. This perspective will shape Cigna’s overall brand identity, facilitating effective marketing to minority segments. The company must become an advocate for diversity, fostering relationships with minority communities and understanding their cultural nuances to tailor marketing efforts accordingly.

If the chosen market segment is African Americans, Cigna should focus on specific healthcare needs, such as higher susceptibility to health-related issues like prostate cancer. Marketing efforts should emphasize genetic testing, counseling, health equity, and outreach programs that align with African American health concerns.Cigna’s existing initiatives, such as its participation in the CEO Action for Diversity and Inclusion, reflect the company’s commitment to diversity. The strategy focuses on optimizing workforce composition and development while promoting culturally competent care. Examples include Hispanic/Latino health papers, Asian/South Asian diabetes resources, and LGBT health access information.

Cigna’s Colleague Resource Groups (CRGs) leverage cultural insights to improve engagement, performance, and career mobility. CRGs like the African American/Black CRG, the Asian/South Asian CRG’s Diabetes Prevention Initiative, and the Veterans CRG, which launched a mindfulness program for veterans, highlight Cigna’s diversity efforts. Additionally, the PRIDE CRG supports LGBTQ-focused initiatives such as partnerships with the Gay and Lesbian Medical Association and the Philadelphia Transgender Health Conference [Cig191].

Conclusions

To remain stable, grow, and become a profitable brand in the market, an organization must differentiate itself from competitors by employing multiple strategies. These strategies may include targeting specific customer segments, refining product manufacturing processes, or developing unique marketing approaches, as seen with Cigna. Cigna focuses on minority market segments, including African Americans, Hispanics, Asian Americans, LGBTQ communities, and millions of U.S. War veterans, all while maintaining a non-discriminatory approach. The Hispanic population, including those of Cuban, Mexican, Puerto Rican, South or Central American, and Spanish descent, is growing rapidly in the United States. Women and African Americans tend to face more health-related challenges compared to other groups, which has prompted Cigna to focus on these minority populations. This targeted strategy has allowed Cigna to concentrate on smaller segments, leading to exponential growth. In summary, by targeting specific market segments with a unique approach, organizations like Cigna can achieve significant profits and growth. To succeed in today’s highly competitive market, a company must focus on a specific segment and implement a distinct strategy to surpass competitors and expand significantly.

Cigna’s focus on minority segments has positioned the company as a leader in the insurance industry and secured its future. Beyond the traditional minority segments mentioned earlier, Cigna has also created Customer Resource Groups (CRGs) aimed at nontraditional market segments they believe should be included in their minority focus. These include the Multigenerational CRG, the People with Differential Abilities (PWDA) CRG, the Virtual CRG, and the Cigna Women’s CRG. These innovative marketing strategies have positioned Cigna to lead the insurance industry well into the future.

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