The multi-brand strategy consciously followed by the Vienna Insurance Group forms an important foundation for the implementation of its business model. This strategy is used in combination with multi-channel distribution as an ideal tool for generating customer and employee loyalty. Newly acquired companies retain their brand names, which are already well established and enjoy good customer recognition, so that the Vienna Insurance Group in a single country may appear to the public through a variety of companies and company names. Maintaining existing brand names is important for the loyalty and motivation of management and employees, and also allows existing customer loyalty to a local insurance company to be preserved and further developed.
Regardless of the different brand names that are important for sales, when the Vienna Insurance Group is represented by more than one company in a country, it always endeavours to exploit back office synergies. Thus, areas without direct customer contact, such as accounting, purchasing, payroll, IT, investment, etc. are centralised within a country, with the Group benefiting from the cost savings this generates. Local management supports initiatives of this nature because back office cost reductions make it easier for Group companies to achieve their budget profit targets.
