MKT FPX 5416 Assessment 3 Market Segmentation 

Executive Summary

Cigna HealthCare is a well-known global service company with David Cordani as its CEO.  Its main goal is to take over the healthcare insurance market by supporting the growth of a long-lasting healthcare system that puts quality care first.  The goal of this project is to provide high-quality services and encourage excellence in healthcare delivery.  Cigna has 37,000 employees and serves more than 86 million customers in 30 countries. This supports the idea that improving customer health is key to improving overall well-being and safety.  Cigna has been in the insurance business since 1792, when it was known by different names. The company has grown through innovation and a strong focus on customer service in all market segments (Cigna, 2019).

 The company wants to be the best at helping both employers and organizations improve their employees’ health and keep it that way.  Cigna’s internal and external sales partners work hard to promote health, safety, and well-being through a wide range of new products and services.  The goal of these programs is to lower medical costs while improving overall health outcomes.  Cigna has a network of doctors and hospitals all over the world, which makes sure that customers always get the same level of service.  The company’s current marketing slogan, “Together, All the Way,” sums up its wide range of services and dedication to customer service (Cigna, 2019).

Market Segmentation

Cigna’s presence in the US market is very different in each of the 50 states.  The company is well-established in the New England states, especially Connecticut, where its headquarters are located. Other states that are well-established include Colorado, Arizona, and some areas in the Southeast.  But there are still chances to grow in other areas.  Cigna has strengthened its position in the international market by merging, buying, and partnering with local insurance companies in Turkey, Belgium, the United Kingdom, Brazil, Japan, Taiwan, Thailand, India, and Nigeria (Patrick, 2015).

 Cigna’s mission statement stresses health, happiness, and a sense of safety (Cigna, 2019).  The company wants to make the world a better place by making it easy to get around, dependable, personal, and understanding.  Cigna wants to make the world a better place by encouraging community support, promoting diversity, and pushing for new ideas.  Cigna can provide long-term solutions that benefit its customers, stakeholders, and the company by working with partners. This helps the company grow and expand around the world.

Background of the Problem

Cigna Healthcare serves a number of minority groups, such as African Americans, Hispanics, Asian Americans, veterans, and LGBTQ people.  The company is committed to diversity and inclusion around the world by not discriminating against anyone.  Like other healthcare companies, Cigna is focusing on these minority groups, which are expected to grow quickly. This means that companies that can meet their needs will have a lot of chances.  About 7.3% of the U.S. population, or 20.4 million veterans, are veterans of wars. Many of them have health problems related to their disabilities and need a lot of medical care.

 Demographic trends show that the number of ethnic groups is growing, especially among Hispanics and African Americans.  These groups make up 12% of people who are 85 or older and 39% of people who are under five years old.  These trends indicate that future American generations will primarily comprise ethnic minorities, potentially surpassing 50% of the total population.  The LGBTQ community typically indicates favorable health outcomes; however, it may not present as substantial a growth opportunity as other minority groups.

Literature Review

 Cigna focuses on making each customer feel special by using personalized branding, supply chain strategies, promotional tactics, and pricing strategies in the US market.  The rising costs of healthcare have made it even more important to teach people about their own healthcare needs.  The Affordable Care Act (ACA) has made it easier for individual consumers to enter the market, which has made healthcare more available.  Cigna’s marketing strategies focus on making sure that people get the right care at the right time for the right diagnoses.  These goals have been the focus of past marketing campaigns.

Recommendations

Cigna HealthCare should make sure that diversity is not just a policy but a core value that is built into its leadership and operations in order to improve its organizational systems.  If the brand takes a more holistic approach to diversity, it will be able to reach out to more people and market to minority groups more effectively.  Accepting diversity and minority markets should be seen as a strength that helps Cigna build its brand and improve its marketing.

 Cigna should focus on the African American market and meet their specific healthcare needs, like the fact that they are more likely to get prostate cancer.  Marketing efforts should encourage genetic testing, counseling, health equity, and outreach programs that are in line with the health issues that are common in this group of people.  Cigna’s involvement in programs like the CEO Action for Diversity and Inclusion shows how serious it is about diversity. The company wants to improve the mix of employees and the ability of its caregivers to understand different cultures.  Some examples of initiatives are health resources aimed at Hispanic/Latino people and programs made just for people with diabetes from Asia and South Asia.

 Cigna’s Colleague Resource Groups (CRGs) are very important for using cultural knowledge to improve engagement, performance, and career mobility.  The African American/Black CRG, the Asian/South Asian CRG’s Diabetes Prevention Initiative, and the Veterans CRG’s mindfulness program are all examples of Cigna’s commitment to diversity.  The PRIDE CRG also backs LGBTQ-focused projects, like working with groups like the Gay and Lesbian Medical Association (Cigna, 2019).

Conclusions

To be successful and make money, a business needs to stand out from its competitors by using a variety of strategies.  Cigna is an example of a company that uses these strategies, which could include focusing on certain customer groups, improving product development, or using new marketing methods.  The company’s dedication to minority markets, such as African Americans, Hispanics, Asian Americans, and U.S. war veterans, shows that it doesn’t discriminate.  The Hispanic population in the United States is growing very quickly, which is important. 

Cigna focuses on women and African Americans because they often have more health problems than other groups.  Cigna has been able to focus on niche markets because of this targeted strategy, which has led to big growth.  In short, companies like Cigna can make a lot of money and grow by focusing on certain market segments and using strategies that are specific to those segments.  To do well in today’s competitive market, businesses need to focus on specific groups and come up with unique plans to beat their competitors.

 Cigna’s focus on minority groups has helped it stay at the top of the insurance industry and will help it stay there in the future.  Cigna has set up Customer Resource Groups (CRGs) that focus on nontraditional market segments in addition to traditional minority groups. These groups include the Multigenerational CRG, People with Differential Abilities (PWDA) CRG, Virtual CRG, and Cigna Women’s CRG.  These new marketing ideas have put Cigna in a good position to stay ahead of the competition in the insurance industry.

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: 

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