PHILIPPINE CHRISTIAN UNIVERSITY
Dasmarinas City Campus
Graduate School of Business and Management
S.Y. 2018 - 2019
In partial fulfillment of
the requirements for the Degree of
Master in Business Administration
Case Study on
FUNERAL PLANS
Submitted to:
Dr. Emmanuel Santiaguel
Submitted by:
Analyn B. Pintac
Date
February 9, 2019
FUNERAL PLANS
According to the UK price comparison site Compare the Market, the cost of funerals is rising on
average at a rate of 7 percent per year. The Funeral Planning Authority (FPA) estimates that the
average cost of a UK funeral is over $5,000. With costs rising, the market for funeral plans has
increased, with over 1,200,000 sold on a yearly basis. This is a considerable rise compared to 10
years ago when less than 40,000 were sold each year. The FPA states that there are 909,091
active plans (worth an estimated $5 billion) in the UK and that this total will break the 1 million
mark in 2015. It has been estimated that pre-paid funeral plans cover 1 in 10 funerals in the UK.
In 2014, Golden Charter, one of the biggest providers of funeral plans, had a 21 percent growth
in sales and its market share increased from 36.9 percent to 41.7 percent. The other two
dominant market leaders are the Co-operative Group and Dignity. The three companies control
the bulk of the market. The funeral business as a whole is estimated to be worth around $3
billion per year in funeral costs, despite falling death rates. Pre-paid funeral plans used to be an
unsought product or service, but they are certainly becoming more and more popular.
I. TIME CONTEXT
Present time
II. VIEWPOINT
Head of the Marketing Department of Golden Charter
III. CENTRAL PROBLEM
There is a need for a marketing strategy that will influence people to buy the pre-paid
funeral plans in response to the rising funeral costs.
IV. STATEMENT OF OBJECTIVES
a. Must Objectives: To formulate a marketing strategy that will convince
customers to buy pre-paid funeral plans
b. Want Objectives: To be the leading pre-paid funeral plan provider and to hold
a market share of 45 percent at the end of 2019.
V. AREAS OF CONSIDERATION
a. Strengths
1. A Funeral Planning Authority (FPA) registered provider.
2. Had a 21 percent growth in sales.
3. Holds 41.7 percent of the market share.
4. One of the biggest providers of funeral plans.
5. One of the company that controls the bulk of the market.
b. Weaknesses
1. Competitors can offer similar service/products quickly.
2. Falling death rates.
3. Limited flexibility in pricing.
4. Pre-paid funeral plan is an unsought products or service.
c. Opportunities
1. Continued expansion for online sales.
2. Development of products or service.
3. There is a wider range of target market.
4. Continuous rising of funeral costs.
d. Threats
1. Changes in regulations can impact the business.
2. Insurance costs are continually increasing due to inflation rate.
3. Increases in price of supplier can cause upward pricing.
4. Products/Services are offered by major competitors
VI. ALTERNATIVE COURSES OF ACTION
ACA #1: Enhance the existing pre-paid funeral plan with additional amenities that
will entice the generation of baby boomers and generation X.
Advantages:
1. This strategy will help increase the sales as well as the competitiveness of
the company in the market.
2. This strategy will help capture the baby boomers and generation X, the
best target market of pre-paid funeral plan because the youngest baby
boomers are in their late fifties while the youngest generation X are in
their early forties.
3. Baby boomers and Generation X are 49.2% of the UK population.
4. It is appealing to the customers.
Disadvantages:
1. The cost of additional amenities form part of the expense.
2. It will increase the costs of the product.
ACA#2: Create a longer payment mode of pre-paid funeral plan with a good
product/service mix to entice the low income earner.
Advantages:
1. Longer payment mode can easily attract customers.
2. Low income earners can afford this plan.
Disadvantages:
1. Long-term return of investment
2. Limitations of generating a profit.
ACA#3: Reduce the price by giving discounts.
Advantages:
1. It will help increase the volume of sales
2. Can control market by guaranteeing sales.
Disadvantages:
1. Higher volume of sales is needed to compensate the loss of income due to
discounts.
2. Limitations in generating profit.
VII. Recommendation:
The best marketing strategy that can be used to convince people to buy pre-paid funeral
plan is ACA#1. Since the baby boomers and the generation X comprises the 49.2 percent of the
population of the UK, they are the best target market.
VIII. PLAN OF ACTION
ACTION DESCRIPTION TIME FRAME RESPONSIBLE
Conduct a managers Propose/Formulate 1 day Head of the
meeting product/service Marketing
enhancement Department
Conduct a meeting Dissemination of new 1 week Head of the
with all the marketing product/service Marketing
staff enhancement Department
Implement the defined To increase the sales 6 months Sales Department
plan
Monitoring Monitor and review Monthly Marketing
the changes made Department
