Prudential's New Service That Retirement Planning In China

Submitted By Richard-Sun
Words: 5574
Pages: 23

Word count: 3998


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In this report, it tries to introduce Prudential’s new service that retirement planning into China mainland. Firstly, author shows where the new product idea come from and how it be screened. After that, author introduces the new service concept development and what this service feature and benefits. There also uses some primary data to shows customer’s situation and uses secondary data to analysis Chinese market to find some customer’s needs.
Then, based on the analysis, this report makes product position to meet those needs. After that, in order to make sure this new service can satisfy those needs, report also makes concept testing.
In addition, article will shows competitive analysis to help company understand their competitive environment. Meanwhile, report will use QFD module to conclusion the test result and simple compare company advantage and weakness to two main competitors. Finally, it predicts sales by ATAR module and also shows some potential problem existed of this industry in China.

1. Introduction
Nowadays people's livelihood problem is becoming a hot issue. According to the survey, population ageing is more seriously in China which developed direction of empty nester phenomenon. How to fix this becomes an urgent problem in China. In contrast, like developed countries or cities, there are excellent retirement plans to help the elderly can ensure the quality of life and spend their twilight years. (Flaherty and Liu, 2007) However retirement planning does not exist in China, if the elderly only use pension, it will not maintain daily expenses and living needs. (Yu and Wan, 2008) Therefore it is necessary to create a retirement planning product, which is suitable for the situation of China.

2. Idea generation
2.1 How to get new idea
According the Maslow's hierarchy of needs, the most of global country has been achieved the first need, physiological needs. When meet a person of the physiological need, then the safety, love and belonging needs, esteem needs and self-actualization. Therefore service industry is the first area choice to authors. Service industry is not the only potential industry, but also it is a high -profile industry (Fuchs, 2008).
First, the elderly group as one of the vulnerable groups, because some countries have not complete protection policy of aged people. Second, authors consider China is emerging market. The market has more percentage reach to successful. Third, authors realized that the condition of the retirement question has become a hot topic in China; it is also the main topics for the third plenary session of this year. More important, this summer one of authors team members has worked as an intern in Hong Kong and research content is retirement planning, and then authors noticed this types services. At the same time, there is on any type of service constant like retirement planning products in China.

2.2 How to discover people’s needs
In addition, the situation of Chinese aging population is becoming serious. Firstly, the uppermost driving force of fast aggravating Chinese aging problem should be the "Birth Control" and the "Late Childbearing" policy. Refer to the research of the United Nation showed that the Chinese aging problem aggravating speed is faster than the other countries. It can be seen from the 2010 Chinese demographic pyramid that the foregrounded characteristics are population-aging problem and predict to peak in 2015(Leahy, 2007). Before this peak it will continue the developing aging trend

Figure1: The population structure in China

( Source:Mawillits,2012)
According to the BBC's news in 2010 has indicated that "being old cost more" and the reason that caused aging problem is the prediction of human's lifetime increase. Therefore, the aging problem not only brought social problem but also