New products and services in existing market would require thinking of new ways to serve current market segments. For example Aetna can develop a new product to serve the teenage drivers' market. Every parent wants its teenager to be compressively insured, and hence Aetna can develop new products and services to serve this market even better. It can develop new products that would meet the needs of young drivers and make them more pocket friendly so teenagers can also get involved with the payment plans instead of depending heavily on their parents. MARKET PENETRATION:

Aetna can expand also by expanding its reach. This means if its products and services are more widely available and more easily accessible, it will have deeper market penetration. Instead of offering insurance plans through employers along, it can also offer the same products to the self-employed, part-time workers, temporary workers and even housewives. This would allow for deeper penetration by creating wider presence.

DIVERSIFICATION

Another possible strategy could be diversification. This would mean Aetna offering more than just insurance plans. It can also offer related benefits like financial plans for future education of children etc.

VALUE DISCIPLINE

A company needs to focus on its core value discipline when expansion is being planned. This means that a company cannot only implement a growth strategy,...

Three main value disciplines are Operational Excellence, Customer intimacy and Product leadership. For a company like Aetna Inc. which has to attract new customers and retain the existing ones, more customer intimacy is the value discipline that we recommend. The firm that focus on customer intimacy "continually tailor and shape products and services to fit an increasingly fine definition of the customer." (Treacy p. 87)
Aetna needs to get closer to its customers by focusing on their needs and demands and listening to their grievances. People are generally unhappy with insurance companies and consider them a big rip-off. Aetna can change this by genuinely connecting with its customers and developing plans that would suit their pocket and budget.

Strategy recommendation:

We recommend that Aetna Inc. focuses on new product and market development as its key strategy. It doesn't need to immediately expand penetration but definitely can benefit by the creation of new products and reaching untapped market segments. It is already a leader in the insurance industry but it can maintain its leadership position only if it has a growth strategy that is implemented properly.

Reference

Treacy, M., & Wiersema, F. (1993, January-February). Customer Intimacy and Other Value Disciplines. Harvard Business