1. Market Sizing Analysis
Nicole Gyan
Rocio Haskell
Fernanda Leao
Amit Rana
Janani Sundararajan
Karen Williams
Hispanic Market for Dental
Insurance in Florida

2. 2
Agenda
• Overview
• Problem Statement
• NAICS and Other Government Sources
• Top-Down Approach
• Bottom-Up Approach
• Targeted Market
• Triangulation
• PESTLE Analysis
• Porter Five Forces Analysis
• Conclusion

3. 3
Overview
• 1954 – dentists formed dental service organizations in California, Oregon
and Washington
• 1966 – creation of Delta Dental Plans Association to coordinate dental
benefits programs for customers with employees in multiple states
• Today Delta Dental is the largest and most experienced dental benefits
carrier in the US – covers more than 59.5 million people
• Coverage plans for individuals, families and seniors
• Plans additionally available through DeltaCare USA, AARP, Costco,
TRICARE and others

4. 4
Problem Statement
Determine the marketing budget Delta Dental
would require to capture 15% of the Hispanic
dental insurance market in Florida

5. 5
NAICS and Other Government Sources
Health insurance
coverage
(Florida)
Percentage
of Hispanics
Hispanic
contribution to
health
Average health
insurance premium
Objective
market
Average dental
insurance cost Market size
$21,900,000,000 23.20% $5,080,800,000.00 $2,000 2,540,400 $554 $1,407,381,600
• NAICS Codes - 524114
Sources:
• http://www.flains.org/fact-book-othermenu-38/916-health-insurance/733-blue-cross-floridas-largest-health-insurer-
humana-aetna-among-other-top-carriers.html
• http://quickfacts.census.gov/qfd/states/12000.html
• http://finance.yahoo.com/news/How-Much-Does-Health-iw-1773357078.html

6. 6
Top-Down Approach
Input Process Output
Hispanic population
in Florida
(General market)
Factor 1
(Population
in Florida
with health
insurance
Factor 2
(People with
health
insurance
who have
dental
insurance)
People who
have dental
insurance
People who
do not have
dental
insurance
Objective
market
Average
dental
insurance
cost Market size
4,253,000 0.65 0.724 2001462 762988 2764450 $554 $1,531,505,300
• Delta Dental has 33% of the market captured
Sources:
• Pew Research Hispanic Center: Demographic Profile of Hispanics in Florida, 2010
• Pew Research Hispanic Center: Demographic Profile of Hispanics in Florida, 2010
• Center for Disease Control and Prevention. NCHS Data Brief: Dental Insurance for persons under 65 years with
private health insurance 2008
• Dental in Depth, Delta Dental Publications, April 2009

7. Total Targeted Market for
Dental Insurance from Total
Hispanic community (76%of
Total Hispanic Population)
Number of employees with
Dental Insurance
72%
Number of employees who
accept the Insurance
66%
Number of employees
Insurance offered
56%
Number of Hispanic people
under the Age of 18 and
above 65
Number of Hispanic people
employed in Florida Above
the age of 18
Number of
Unemployed Hispanic
people
35% 41% 24%
Total Hispanic Population in
Florida
7
Bottom-Up Approach
Assumption:
• Uninsured Hispanics in
Florida are not included in
our analysis
Market surveyed:
• Business to consumer
• Business to business

8. 8
Bottom-Up Approach: Target Market
Final target market determinations are made up of the following four segments:
43.60%
34%
28%
35%
Hispanic employees not
offered insurance
Hispanic employees who
do not accept health
insurance
Hispanic employees who
do accept dental
insurance
Hispanic market under
the age of 18 and above
65 who are unemployed

9. Bottom-Up Approach: Model
Sources:
• http://www.bls.gov/lau/table14full10.pdf
• http://factfinder2.census.gov/
9
Total Hispanic
population in Florida 4253000
Under 17 (26.3%
of total Hispanic
population)
Above 65
with no
income
(8.7% of
total
Hispanic
market)
Unemployed
uninsured
market (not
considered)
Number
employed
(18 and
above)
Insurance
% offered
Offered
(Nos.)
Insurance
%
accepted
Accepted/h
ealth
insurance
(Nos.)
Hispanic population
in Florida 1118539 372806 1035655 1726000 56.40% 973464 66% 642486
Dental
insurance
%
accepted
Dental
insuranc
e
accepted
(Nos.)
Insurance
not offered
by
employer
(43%)
Number of
employees
who do
not accept
insurance
(34%)
Number of
employees
who do not
accept
dental
insurance
(28%)
Target market
(total
employed
market and
under 17 and
above 65
category)
Total target
market in
dollar value
Cost of one
dental
policy per
year
Hispanic population in
Florida
72% 462590 752536 330978 179896 3217345 $1,782,409,130 $554

10. % of Hispanic
employed
Insurance %
offered
Insurance %
accepted
Dental
Insurance %
accepted
Total
Targeted
Market for
Dental
Insurance
from Total
Hispanic
Management and professional 19% 89% 77% 72% 10%
Service 27% 61% 55% 72% 14%
sales and office jobs 21% 78% 65% 72% 11%
Natural resources, construction,
and maintenance jobs 16% 67% 75% 72% 9%
Production, transportation, and
material-moving occupations 17% 77% 72% 72% 9%
Population under the age of 17
and unemployed above the age
of 65 35% 0% 0% 0% 46%
Bottom-Up Approach: Occupational Breakdown
10

11. Bottom-Up Approach: Model
Sources:
• http://www.bls.gov/lau/table14full10.pdf
• http://www.census.gov/prod/2013pubs/p70-134.pdf
• http://www.nclr.org/images/uploads/pages/Florida%20State%20Profile.pdf
Target market value - $1,782,409,130
11
Total Hispanic market 4,253,000
No. of Hispanic employed
workers (Above the age of 18) 1,726,000
Cost of one dental
policy per year
Occupation Category
% of
Hispanic
employed
Number of
employees
Insurance %
offered
Offered
(Nos.)
Insurance
not offered
(%)
Insurance
not offered
number
Insurance %
accepted
Accepted/h
ealth
insurance
(Nos.)
Insurance
not accepted
(%)
Insurance
accepted
(Nos.)
Dental
Insurance %
accepted
Dental
insurance
accepted
(Nos.)
Dental
insurance
not
accepted
Dental
insurance
accepted
Total
targeted
Hispanic
market $554
Management and
professional 19% 327940 89% 293178 11% 34762 77% 225161 23% 68017 72% 162116 28% 63045 327940 $181,678,760
Service 27% 466020 61% 284738 39% 181282 55% 156606 45% 128132 72% 112756 28% 43850 466020 $258,175,080
Sales and office jobs 21% 362460 78% 281269 22% 81191 65% 181981 35% 99288 72% 131026 28% 50955 362460 $200,802,840
Natural resources,
construction, and
maintenance jobs 16% 276160 67% 185303 33% 90857 75% 138978 25% 46326 72% 100064 28% 38914 276160 $152,992,640
Production, transportation,
and material-moving
occupations 17% 293420 77% 224466 24% 68954 72% 161616 28% 62851 72% 116363 28% 45252 293420 $162,554,680
Population under the age of
17 and unemployed above
the age of 65 35% 1491345 - - - - - - - - - - - - 1491345 $826,205,130
3217345 $1,782,409,130

12. 12
Triangulation
Market Size (Top-down) Market Size (Bottom-up)
Market Size
(Government sources)
Triangulation (Estimated
market size)
$ 1,531,505,300 $ 1,782,409,130 $ 1,407,381,600 $ 1,573,765,343
Size of 15% of market to be captured Marketing budget (5% of target)
$ 236,064,802 $ 11,803,240
• Hence the budget justified to capture 15% of the market is $11,803,240

13. 13
PESTLE Analysis
POLITICAL
Lobbying for who gets to provide dental care, and at what price
• American Dental Association PAC spends millions on bipartisan lobbying
• Continued ability of industry to set own prices depends on lobbyists
• Limits number of providers by lobbying against “dental therapists”
• Likely to continue in future – savvy, well-funded, organized

14. 14
PESTLE Analysis
ECONOMIC
Industry hurt by recession, but growth anticipated
• U.S. employment to grow 1.8% over next 5 years
• Disposable incomes to rise at rate of 2% over next 5 years
• Rapid price increases in healthcare prompting purchase of private
coverage

15. 15
PESTLE Analysis
SOCIAL
• Persistence of language and cultural barriers
• Increasing openness to community outreach efforts seeking to improve
dental care knowledge
• More online business activity, but preference for face-to-face interaction
• Tendency to be brand loyal and share positive experiences with family
and friends

16. 16
PESTLE Analysis
TECHNOLOGICAL
• Lower cost insurance options as a result of widespread internet usage
• Mobility
• Telematics
• Social media
• Distribution channel management

17. 17
PESTLE Analysis
LEGAL
Increasing levels of industry regulation
Federal level:
• Affordable Care Act
• HIPAA (Health Insurance Portability & Accountability Act)
State level:
• Licensing of insurers
• Privacy legislation

18. 18
PESTLE Analysis
ENVIRONMENTAL
Slightly higher cost of doing business
• Increased concern regarding management of toxic dental waste
• Increased importance of Corporate Sustainability programs

19. 19
Porter Five Forces Analysis
THREAT OF NEW ENTRANTS
Mature market, low threat level for larger companies due to these factors:
• More resources to provide competitive pricing and more services
• Bargaining power with healthcare providers and service networks
• Established brand image
Potential threat:
• Companies offering cheaper alternatives to dental care insurance
coverage to customers whose employers do not grant such benefits

20. 20
Porter Five Forces Analysis
INTENSITY OF RIVALRY FROM EXISTING COMPETITORS
• Internal competition is medium and increasing
• Players compete on basis of policy pricing, level and quality of service and
reputation
13.90%
7.70%
3.80%
Delta Dental
Aetna Inc.
United
Concordia
Companies Inc.
Market share of major dental insurance companies in the US, 2012

21. 21
Porter Five Forces Analysis
PRESSURE FROM SUBSTITUTE PRODUCTS
• Discount Dental Plans via networks of dentists and dental specialists – no
deductibles, no annual limits, no high premiums
• Direct Reimbursement (DR) Plans - no attachment to set network of
dentists or dental specialists

22. 22
Porter Five Forces Analysis
BARGAINING POWER OF BUYERS
Low because of these factors:
• Limited number of networks within which most dental insurance
companies exist
• Ongoing need for dental services
• General lack of understanding of intricacies of insurance terms
• Growing number of baby boomers with need for dental care

23. 23
Porter Five Forces Analysis
BARGAINING POWER OF SUPPLIERS
• Larger established companies have more power than dental care
providers because of the following:
 expansive network of dentists
 more widely recognized brand
 overhead efficiencies

24. 24
Conclusion
• Florida’s Hispanic community is a worthwhile target market segment for
dental insurance providers
• Delta Dental remains a solid industry player in the US
• Delta Dental is well-positioned to continue its business and marketing
efforts within Florida’s Hispanic community
• Delta Dental should pursue the Hispanic market in Florida with a budget of
$11,803,240