The successful launch of Bupa and the creation of new market space in Australia
Agency: Clemenger BBDO
Advertiser: Bupa Australia
Author: Michael Hyde
Total Campaign Expenditure: $10 – 20 million
Strategic communications challenge
The Australian Private Health Insurance (PHI) category is large and fiercely competitive generating total premium revenue is AU$15.744 billion1. Medibank Private is the largest player with 30% market share while the Bupa group of companies, MBF, HBA and Mutual Community, hold 28% with HCF 11%, and HBF and NIB each at 7%. These brands account for 83% of the market2.
With year-on-year category growth being less than 3% for the past three years3 every market share point -in itself worth AU$157 million in premium revenue – is fought over through an endless assault of price and product based promotions designed to steal share and lead to customer-switching behaviour. Defending share, as opposed to purely growing share is crucial.