Comparative Study of Services Provided by LIC ICICI Prudential Life Insurance

Submitted To: - Submitted By: -
RIMT-Maharaja Aggrasen Engineering College
Mandi Gobindgarh
ACKNOWLEDGEMENT
1
The success of this final report is the outcome of Guidance and valuable
suggestions provided by all the concerned without whom the report could not fide on
the right back.
I would like to express my sincere gratitude to Lect. Mrs. Paramjeet kaur, MBA
Dept.,RIMT-MAEC for giving me an opportunity to do this project work.
I also express my sense of deep gratitude towards PUNJAB TECHNICAL
UNIVERSITY JALANDHAR for introducing a programme which enables us to learn
more.
Finally, I will be failing in my duty, if I do not thank my parents, friends and well
wishers for their enthusiastic support and who have directly or indirectly helped in some
way or the other in making this final report a success.
Preface
2
Table of Content
1. Main Text
1.1 Executive Summary ……………………………………………5
1.2 Introduction
• Introduction ...…………………………………………….6
• Objectives.………………………………………………...8
3
• Limitations..………………………………………………10
2. Finding & Results
• Industry profile..…………………………………………….11
• Company profile.…………………………………………...14
• Company products………………………………………….18
• SWOT Analysis..….………………………………………..21
• Research methodology...……………………………………22
• Advantage of life insurance..……………………………….27
• Conclusion………………………………………………….30
3. Appendices …………………………………………….……..31
4. Bibliography..…………………………………………………34
Executive Summary
Management Thesis is a part of the MBA Program. The objective of a

Management Thesis is to train the student in designing and implementing a research
project in respect of a business problem. A Management Thesis is the culmination of
4
training provided to the student on practical applicability of the theoretical concepts
learned by them.
In this study we look at the options of experiential learning and embedding to the
skills and how the organization get the accreditation from its training course and
develop the employee exactly and smartly using applying different models like 360o
feedback, training by telephone, group training, mind mapping, perceptual awareness
etc.
Training is essential to order to understand how to implement the core principle
of coaching and learning. Most of the people attracted up to the profession or precisely
the once who are likely to make good trainers. People with integrity like helping other
and enjoy making different others. Experiential learning and embedding skills is an
action oriented behavioral situation. The purpose of the action situation is to have
participants generate their own data about each of the key concepts to be studied.
To get the best from experiential learning and embedding skills method, the
trainer must be a good observer of behavior. When the groups start to examine its
experiences and reflect upon them, he is in a position to assist with this process. His
responsibilities in focusing learning, and making it clearer for each participant, are
extremely important.
INTRODUCATION
Insurance is an upcoming sector, in India the year 2000 was a landmark year
for life insurance industry, in this year the life insurance industry was liberalized after
more than fifty years.
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Insurance sector was once a monopoly, with LIC as the only company, a public
sector enterprise. But nowadays the market opened up and there are many private
players competing in the market. There are fifteen private life insurance companies has
entered the industry.
After the entry of these private players, the market share of LIC has been
considerably reduced. In the last five years the private players is able to expand the
market (growing at 30% per annum) and also has improved their market share to 18%.
For the past five years private players have launched many innovations in the
industry in terms of products, market channels and advertisement of products, agent
training and customer services etc.
The various life insurers entered India:-
1. HDFC Standard Life Insurance Company Ltd.
2. Max New York Life Insurance Co. Ltd.
3. ICICI Prudential Life Insurance Company Ltd.
4. Kotak Mahindra Old Mutual Life Insurance Limited.
5. Birla Sun Life Insurance Company Ltd.
6. Tata AIG Life Insurance Company Ltd.
7. SBI Life Insurance Company Limited.
8. ING Vysya Life Insurance Company Private Limited.
9. Met life India Insurance Company Ltd.
10. Royal Sundaram Life Insurance Company Limited.
11. Aviva Life Insurance Co. India Pvt. Ltd.
12. Sahara India Insurance Company Ltd.
13. Shriram Life Insurance Company
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14. Life Insurance Corporation of India.
15. Reliance Life Insurance Company Limited.
16. Bharti AXA Life Insurance Company Limited.
Through this project I want to study about the life insurance industry and also doing the
comparative analysis between two insurance players in this industry. They are,
 ICICI Prudential Life Insurance

 Life insurance corporation of India
OBJECTIVES
The entry of foreign MNC’s and the conductive business environment fostered
by the government, it is no wonder that the re-entry of private insurance has marked a
second coming for the sector. In just five years, the sector has undergone a makeover,
offering more choice, better services, quicker settlement, tighter regulation and greater
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awareness ‘s the environment become more and more competitive and services and
products become alike, creating a differentiation is becoming extremely tough.
Thus, this project objectives is as follows

.
 To know where Reliance life insurance Company limited & life insurance
Corporation of India companies stands in the market.
 Find out the strength and the weakness of their plans.
 And making comparative analysis between the products of Reliance life
insurance Company limited with Life insurance Corporation of India.
Scope of the study:
 This study can be conducted by comparing the performances & products of three
private & government insurance players in insurance industry.

 The number of respondents to be surveyed can be improved.
 The study can be conducted in Bangalore city only.
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 This study can be conducted to analyze the market stand of Reliance life
insurance Company limited and Life insurance Corporation of India insurance

companies.
LIMITATIONS
Thought the present study aims to achieve the above mentioned objectives in full
earnest and accuracy, it may be hampered due to certain limitations, some of the
limitations of this study may be summarized as follows,
 This study is limited to two private insurance companies only. (Reliance life
insurance company limited & Life insurance corporation of India)

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 This study is limited to Bangalore city only.
 And getting accurate responses from the respondents due to their inherent
problems. They may be refusing to co-operate.
 Respondents may have to be contacted repeatedly or alternate respondent may
have to be identified.
 For want of time is restricted.
Finding & Results
INDUSTRY PROFILE
“Insurance is a contract between two parties whereby one party called

insurer undertakes in exchange for a fixed amount of money on the happening of a
certain event.” Insurance is a protection against financial loss arising on the happening
of an unexpected event. The primary purpose of Life Insurance is the protection of the
family. Insurance in it's various forms protects against such misfortunes by having the
losses of the unfortunate few paid by the contribution of the many who are exposed to
the same risk. This is the essence of insurance- the sharing of losses and substitution of
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certainty for uncertainty. Insurance companies collect premiums to provide for this
protection. A loss is paid out of the premiums collected from the insuring public and
the insurance companies act as trustees of the amount collected. In is a system by
which the losses suffered by a few are spread over many, exposed to similar risks.
In the western world, life insurance evolved mainly from the maritime industry.
Started by private financiers who used to gamble on the lives of seafarers by offering
five times the money deposited with them in case of certain contingencies?
In its present form, life insurance has its origin in England and made its debit in
India in the year 1818.Initially, Indians were not considered on par with Europeans as
far as their insurability was concerned. There were also many other failures. It was in
the early part of the 20th century that some kind of legislation was made to regulate the
industry. From then on life insurance made great strides in the country.
At the time of independence and thereafter, there were more than 200 companies
operating in India and not all of them on sound ethical principles. Many factors
combined together to prompt the then government to nationalize the life insurance
industry in 1956 to form the Life Insurance Corporation of India.
The years from 1956 to 1999 saw the life insurance corporation of India emerge
as a giant financial institution and the lone organization purveying life insurance, if we
ignore the minimal presence of postal life insurance. The institution succeeded in
penetrating in many areas and segments of the population and in garnering public
money for public welfare.
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It was in the 1990’s that the winds of change started sweeping over India and
brought in their wake many changes in the economy. Liberalization ensured
competition in many fields and there was a clamor that the insurance industry too is
opened up to Private Indian and foreign players to provide the customer with a choice.
The Malhotra committee, appointed in 1993 was given the mandate to study the
industry and to suggest the changes that were necessary to make it modern and in tune
with people’s aspirations. The report submitted by the committee was the precursor of
the IRDA Bill.
By the passing of the IRDA Bill, the Insurance sector has been opened up for the
private companies to carry on insurance business. Now the life insurance industry in
India is rapidly evolving and growing. It has witnessed a big growth as many Indian
and foreign were entered in to the Indian insurance sector. The life insurance industry in
India has become fiercely competitive with the entry of several new players including
major multinational insurers after the deregulation of the sector. It has opened up a
range of untapped opportunities for new entrants into the industry, as the potential
market for buyers is high since the emerging market in India has a low insurance
penetration and high growth rates.
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COMPANY PROFILE
ICICI Prudential Life Insurance
Overview
ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank - one
of India's foremost financial services companies-and Prudential plc - a leading
international financial services group headquartered in the United Kingdom. Total
capital infusion stands at Rs. 47.80 billion, with ICICI Bank holding a stake of 74%
and Prudential plc holding 26%.
We began our operations in December 2000 after receiving approval from Insurance
Regulatory Development Authority (IRDA). Today, our nation-wide team comprises
of over 2100 branches (inclusive of 1,116 micro-offices), over 290,000 advisors; and
18 bancassurance partners.
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ICICI Prudential is the first life insurer in India to receive a National Insurer Financial
Strength rating of AAA (Ind) from Fitch ratings. For three years in a row, ICICI
Prudential has been voted as India's Most Trusted Private Life Insurer, by The
Economic Times - AC Nielsen ORG Marg survey of 'Most Trusted Brands'. As we
grow our distribution, product range and customer base, we continue to tirelessly
uphold our commitment to deliver world-class financial solutions to customers all over
India.
Our vision:
To be the dominant Life, Health and Pensions player built on trust by world-class
people and service.
This we hope to achieve by:
• Understanding the needs of customers and offering them superior products and
service
• Leveraging technology to service customers quickly, efficiently and
conveniently
• Developing and implementing superior risk management and investment
strategies to offer sustainable and stable returns to our policyholders
• Providing an enabling environment to foster growth and learning for our
employees
• And above all, building transparency in all our dealings
The success of the company will be founded in its unflinching commitment to 5 core
values -- Integrity, Customer First, Boundaryless, Ownership and Passion. Each of the
values describe what the company stands for, the qualities of our people and the way
we work.
We do believe that we are on the threshold of an exciting new opportunity, where we

can play a significant role in redefining and reshaping the sector. Given the quality of
our parentage and the commitment of our team, there are no limits to our growth.
Our values :
Every member of the ICICI Prudential team is committed to 5 core values: Integrity,
Customer First, Boundaryless, Ownership, and Passion. These values shine forth in all
we do, and have become the keystones of our success.
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Mangement Profile:
Board of Director
The ICICI Prudential Life Insurance Company Limited Board comprises reputed people
from the finance industry both from India and abroad.
Mr. K.V. Kamath, Chairman

Ms. Chanda Kochhar, Director
Mr. Barry Stowe, Director
Mr. Adrian O’Connor, Director
Prof. Marti G. Subrahmanyam, Director
Mr. Mahesh Prasad Modi, Director
Ms. Rama Bijapurkar, Director
Mr. Keki Dadiseth, Director
Ms. Shikha Sharma, Managing Director
Mr. N.S. Kannan, Executive Director
Mr. Bhargav Dasgupta, Executive Director
Management Team
The ICICI Prudential Life Insurance Company Limited Management team comprises
reputed people from the finance industry both from India and abroad.
Ms. Shikha Sharma, Managing Director & CEO

Mr. N. S. Kannan, Executive Director
Mr. Bhargav Dasgupta, Executive Director
Ms. Anita Pai, Executive Vice President – Customer Service & Technology
Dr. Avijit Chatterjee, Appointed Actuary
Mr. Puneet Nanda, Executive Vice President & Chief Investment Officer
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Life insurance Corporation of India
LIC of India is one of India’s leading financial institutions, offering complete

financial solutions that encompass every sphere of life. From commercial banking to
stock broking to mutual funds to life insurance to investment banking, the group caters
to the financials needs of individuals and corporate.
The LIC has a net of over Rs. 1,800 crore and employs over 7,500 employees in
its various businesses. With a presence in 82cities in India and it services a customer
base of over 20,00,000.
Date of Establishment 1 Sep. 1956

Address
1st Floor,West Wing, Mumbai Do-Iv, Yogakshema, Jeevan Bima Marg, Mumbai - 400
021, India
Branches 8 Zonal Offices and 101 Divisional Offices
Management Team
T.S. Vijayan - Chairman

D.K. Mehrotra - MD, LIC
Thomas Mathew T - MD, LIC
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A K Dasgupta - MD, LIC
Arun Ramanathan - Secretary, Financial Services, Dept. of Financial Services, Ministry
of Finance, Govt of India
Sindhushree Khullar - Addl. Secretary, Dept of Economic Affairs, Ministry of Finance
Yogesh Lohiya - Chairman cum MD, GIC of India
T.C. Venkat Subramanian - Chairman & MD, Export Import Bank of India.
Overview
The largest life insurance company in India, Life Insurance Corporation is fully owned
by the government. It provides individual life insurance, group insurance and pension
plans. Its subsidiaries include Life Insurance Corporation of India International, LIC
Nepal, LIC Lanka, LIC Housing Finance and LICHFL Care Homes. It has over 12
million policy holders and over 9 lakh agents. It has underwritten more than 120 million
policies.
LIC saw computers in 1964. Today the company is on the Internet and is utilizing
Information Technology in servicing its clients. It has bagged various award including
Loyalty Awards 2008 in Insurance Sector, NDTV Profit Business Leadership Award –
2007, CNBC Awaaz Consumer Awards 2007 and Outlook Money NDTV Profit
Awards 2007.
LIC provides a rewarding career as sales agents. It offers world class training, freedom
to work and unmatched financial strength.
COMPANY PRODUCT
Product Details of ICICI Prudential Life Insurance Products:-
• Life Time Gold

• Premium Life Gold
• Life Stage Pension
• Life Time Super Pension
• Hospital Care
• Life Link Super
• Premier Life Pension
• ICICI Pru______ + MediAssure
• Invest Shield Life
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Product of Life Insurance Corporation of India
Children's Policy
Komal Jeevan - Plan No. 159

Children Deferred - Plan no.41
Jeevan Kishore - Plan no.102
Jeevan Chhaya - Plan no.103
Marriage Endowment/Educational Annuity - Plan No. 90
Jeevan Anurag - Plan no.168
Endowment Policy
Endowment with Profits - Plan no.14

Limited Payment Endowment with Profits - Plan no.48
Jeevan Mitra - Plan no.88
New JanaRaksha Policy - Plan no.91
Jeevan Anand Plan no. 149
Jeevan Mitra Triple Cover - Plan no.133
Group Insurance Policy
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Janashree Bima Yojana
Group Insurance Scheme in lieu of EDLI
Group (Term) Insurance Scheme
Group Savings Linked Insurance Scheme
Group Superannuation Scheme
Group Mortgage Redemption Assurance Scheme
Shiksha Sahayog Yojana
Joint Life Policy
Jeevan Saathi - Plan no.89
Money Back Policy
Money Back with Profit - Plan no.75

New Money Back - Plan no.93
Jeevan Surabhi 15 yrs - Plan no.106
Jeevan Bharati Plan No 160
Jeevan Samriddhi Plan No 154, 155, 156 157
Bima Bachat- Plan no.175
Pension Plans or Annuities
New Jeevan Dhara - Plan no.148

New Jeevan Suraksha Plan no. 147
Jeevan Akshay II Plan no. 163
Jeevan Nidhi Plan no. 169
Jeevan Akshay V Plan no. 183
Special Plans
Term Assurance - Plan no.43

Mortgage Redemption - Plan no.52
Jeevan Aadhar - Plan no.114
Market Plus - Plan No 181
Jeevan Vishwas Plan No. 136
Jeevan Saral Plan No. 165
Jeevan Pramukh Plan No. 167
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Bima Nivesh 2005 Plan No 171
Money Plus-Plan No 180
Term Policy
Convertible Term Assurance - Plan no.58

New Bima Kiran
Term Assurance
Anmol Jeevan I Plan No- 164
Amulya Jeevan-Plan No-177
Whole Life Policy
Whole Life with Profits - Plan no.2

Limited Payment Whole Life with Profits - Plan no.5
Single Premium Whole Life - Plan no.8
Jeevan Tarang- Plan no.178
PENSION PLAN PRODUCTS OF LIC INDIA & ITS FEATURES
• LIC of India retirement income plan

• LIC of India retirement income plan (unit linked)
What is the LIC of India retirement income plan?
The LIC of India retirement Income plan is a saving plan designed to meet your post –
retirement needs. It is a plan that gives you “jeene ki azaadi “. It gives you the choice to
remain independent even after retirement.
The LIC of India retirement income plan is a participating plan. The plan comes in two
forms:
One with cover and one without cover
Who can avail of the LIC of India retirement income plan?”
How old do you have to be to avail of this plan?”

Minimum age -18 years
Maximum age – 60 years
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For what term can choose to pay the premiums?
5 years – 30 years
At what intervals can you pay premiums?”

• Quarterly
• Half yearly
• Annually
What are the advantages of this plan?”

• You can choose to retire at any age between 45 years and 65 years.
• On retirement:
• Annuity option:
• Early retirement benefits:
Other products are:

• Money plus
• Auto plus
• Child plan
• Health plan
SWOT ANALYSIS
Strengths:
a. Dedicated Employees.
b. Well Efficient Management.
c. Technology.
d. Diversification of funds.
e. Strong and popular brand name.
f. Adaptability to changes.
Weakness:
a. Lack of good services.

b. Lack of awareness about insurance among people.
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c. Less coverage in Rural Areas.
Opportunities:
a. Fast growing economy.

b. Increasing per –capita income in India.
c. Saving behavior.
d. High growth of ULIP industry.
Threats:
a. Arrival of new entrants in the insurance industry.
b. Cut throat competition within the industry
Observations
RESEARCH METHODOLOGY
TYPE OF RESEARCH
The research includes different options. They are:
Exploratory research:
It is usually a small-scale study undertaken to define the exact nature of a

problem and to gain a better understanding of the environment within which the
22
problem has occurred. It is the initial research, before more conclusive research is under
taken.
Descriptive research:
It is to provide an accurate picture of some aspects of market environment.

Descriptive research is used when the objective is to provide a systematic description
that is as factual and accurate as possible. It provides the number of time something
occurs, or frequency, lends itself to satisfied calculations such as determining average
number of occurrences.
Casual research:
If the objective is too determined which variable might be causing a certain

behavior that is whether there is a cause and effect relationship between variable, casual
research must be undertaken. In order to determine causality, it is important to hold the
variable that is assumed to cause the change in the other variable constant and than
measure the changes in the variable. This type of research is very complex and the
researcher can never be completely certain that there are no other factors influencing the
casual relationship, especially when dealing with people’s attitudes and motivation.
This research is about understanding the market stand and also find the strength
& weakness of the products of three insurance companies by making comparing
analysis of the products of the companies, mainly descriptive research methodology are
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adopted. Descriptive research was adopted since it provides accurate picture about some
aspect of market environment such as which brand is performing well and what the
company can do to improve its market share.
SAMPLING PROCEDURE
How should the respondents be chosen? To obtain a representative sample and non-
probability sample can be drawn, they are
Judgment sample:
The researcher selects population numbers who are good prospects for accurate
information.
For collection of research data judgment-sampling technique is used where all of
them are employees of the three insurance companies as they are good prospect for
accurate information.
ACTUAL COLLECTION OF DATA
Data sources:
The sources of data include either secondary data or primary data and even some times
the combination of both. The present study is more concentration on both primary and
secondary data.
Primary data:
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Primary data is collected through face-to face interaction with employees of the
insurance companies, by meeting them in personal.
Secondary data:
The secondary data used for their study are inclusive of the data collected
from the internet, catalogues and brochures and magazines.
METHODOLOGY
The study will conduct on the bases of survey through questionnaires given to
respondents.
Sampling Design
Population: Ludhiana
Sample Size: Population of 100
Sample Technique: Convenience Sampling
Statistical Tools: Correlation.
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ADVANTAGES OF LIFE INSURANCE
Protection against risk of untimely death
Life insurance is a product, which offers protection against the risk of death the
full sum assured is made available under a life assurance policy, whereas under other
savings schemes, the total accumulated savings alone will be available.
Protection during old age
Life insurance can also be used as a means of saving for one’s future. There are
a number of life insurance policies, which in addition to life cover also provide the
means of investing one’s income. The sum as per the policy will be received only after
a period of time. This amount thus provides for the old age.
Forced savings
Payment of life insurance premiums is compulsory and becomes a habit.

Savings in other scheme can be easily withdrawn and may be used for less worthy
26
purpose. Termination of a life insurance policy by the policyholder usually results in
substantial loss in benefits under the policy to the policyholder. One is thus encouraged
to save and keep one’s policy alive.
Educational requirements and charity
The object of insurance may be to serve as a security to educational funds in

respect of loans advanced for educational purpose or to provide donations to charitable
institutions like hospital and school.
Nomination and assignment
The life insured can name the person or persons to whom the policy money
would be payable in the event of his death .the proceeds of a life insurance policy can
be protected against the claims of the creditors of the life insured by effecting a valid
assignment of the policy. The beneficiaries are fully protected from creditors expect to
the extent of any interest in the policy retained by the insured.
Marketability and suitability for borrowing
After 3 years, if the policyholder finds that he is unable to continue payment of

premiums he can surrender a policy for a cash sum. A life insurance policy is accepted
as a security for a commercial loan.
Loans from the insurance company
A policy holder can take a loan from his insurance company against the
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Security of his life insurance policy provided the terms of the terms of his policy allow
such a loan. This loan can be taken usually after a period of 3 years from
commencement of the policy and is a percentage of its surrender value.
Investment options
The unit link products gives comprehensive insurance solutions that cater to an
individual’s dual need of earning potentially high returns as well as stay for life. Thus
there is an option to invest money in the products that combine the best of insurance
and investment. In a volatile market conditions it is possible to secure both as one can
hedge the investment with saver investment vehicles that provide a diversified portfolio.
Tax benefits
The Indian income tax act provides tax concessions to the policyholder both
on payment of premium and on the maturity amount. Under sec 88 the tax benefits on
premium paid by an individual for life insurance policies on his own life\on the life of
spouse \children minor or major, including married daughters.
Protection to wife and children
Under sec 6 of the married women’s property act if a married man takes a
policy of life insurance on his own life and expenses on the face of it to be for the
benefit of his wife or of his wife and children or any of them, then it shall be deemed to
be a trust for the benefit of his wife and children or any of them,
According to the interest so expressed and shall not so long as any object of trust
remains be subject to the control of the husband or to his creditors or form part of his
estate. An insurance policy taken by a married man in the above manner is ideal way to
protect the interest of his wife and children, even after his untimely death.
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CONCLUSION
The financial markets have continued to witness unprecedented liberalization,

growth and reforms over the last decade prompted by regulatory compulsions and a
rapid integration between domestic and global markets. And as a result, one has seen
substantial growth in the number of financial firms (insurance companies, mutual funds,
brokerages, banks etc.) and in the number and variety of financial products and services
offered by them. As the need of the people is changing so is changing the investment
habits of the people and this has brought in a spate of new products and schemes where
people can invest. The concept of insurance as an investment option has arrived where
people first identify the varying needs of money then converts the needs into specific
amount of money and time required to achieve the objective of investments plans. The
objective of insurance as an investment is to ensure that investments are driven by pre
determined and well thought out investment plan and that the investments are suitable
and adequate to meet these plans. But for this the planner must understand the universe
of investments options. He/she must be well informed on the risk and return attributes
of these options.
In addition to the above, companies should also innovate to come up with better
products that would suit the Indian population and should also try to market and sell
their products through new channels of distribution that can be effective in selling their
products to the masses. People should identify their needs and then decide on the type
of policy they want to invest in. insurance is a good investment option for those people
who do not know where to invest and who do not want to the risk of capital erosion.
But, people who are financially savvy can opt for term insurance and invest the rest in
other options that may give them higher returns.
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APPENDICES
QUESTIONNAIRE
I,Kunj bihari paliwal, student of ICFAI National Collage, pursuing my MBA,

carrying out a project work in partial fulfillment of my live project. I am undertaking a
project
“A comparative study on the offerings of Insurance products between

Reliance Life Insurance Company Ltd
Vs
Life Insurance Corporation of India”
In view of this, I hereby request you to give your feed back on the questionnaire
given below. Please note that your response will be kept confidential. Please mark the
appropriate answer
NAME ---------------------------------------------------------------------------------
AGE ----------- Nationality ----------------------- Income ------------------------
Contact number --------------------------------, --------------------------------------------
Address------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------
1. Occupation
a) Businessman [ ] b) Professional [ ]
c) Students [ ] d) House wife [ ]
2. Do u have Insurance? If yes of which company?

a)Yes b) No ……………………………………………………
3. Have u heard about Reliance Life Insurance?

a)Yes b) No
4. Are you aware about the various plans offered by Insurance Company?
a)Yes b) No
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5. According to you, Insurance policies are for?
a) Child [ ] b) Adults [ ]
c) Couple [ ] d) Old people [ ]
6. Is there any age, gender, or other limitation in getting insurance?

a)Yes b) No
7. At what age should a person think about taking an insurance policy? …….
8. Have you or any of your family members got the benefit out of Insurance?
a)Yes b) No
9. Do you know about Unit Linked Insurance Plans (ULIP)?

a) Yes b) No
10. How did you come to know about ULIP?

□ Friends/Close circle □ Advertisements □ Agents
□ Periodicals/Books/Internet □ Investors
11. In which Reliance Life’s scheme did you invest?

□ life invest □ life maker investment
□ life maker premium □ life maker gold
If any other please specify…………………………….
12. Why did you prefer above-mentioned Reliance Life policy?

□ High returns □Security □wide acceptance
□ Less risk □ Flexible □ Tax benefit
13. How long have you been investing in the above Reliance Life policy?
□ Less than 1 year □ 1 year-2 years
□ 2 year-3years □ 3 years and more
14. How do you rate the quality of service provided by Reliance Life?
□ Good □ Very good □ Average
□ Bad □ can’t say
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15. Did you try out any other Company’s policy?
□ Yes □ No
16. How do you rate Reliance Life by our other company insurance Policy?
□ Good □ Very good □ Average
□ Bad □ can’t say
Thank you
Date: Signature
Bibliography
BOOKS:
 Life and Health Insurance –Kenneth Black and Harold D.
 Fundamental of Risk and Insurance- Emmet J Vaughan and John Willy
WEBSITES
 www.licindia .com
 www.irdaindia.org
 www.iciciprulife.com
Study of Promotional Strategy of ICICI Prudential Life Insurance Co. Ltd

32
Name Rajni Kant
Student ID No. PGPMI/N/01/039
Course Post Graduate Program in
Management and Insurance
Project Title Advertisement Effectiveness
(With Reference to Life Insurance)
Project Guide Prof. Gaurav Ashesh
Sub Topic Analysis and Evaluation of
ICICI Prudential Media Strategy
International School of Business and Media
Noida
Advertisement Effectiveness Study (With reference to Life Insurance)-IGNITE-V
March-2008
RAJNI KANT
Certificate of Participation
This is to certify that Mr. Rajni Kant (PGPMI/N/01/039), who is a part of
FIRST BATCH of PGPMI Program, conducted by ICICI PRUDENTIAL
Life Insurance Co. Ltd. in ISB&M Noida (A Division of ISB&M Training
Pvt. Ltd.), had successfully done the project on “Advertisement Effectiveness
Study (With reference to Life Insurance)” for IGNITE – 5 (ON-LINE
PROJECT) with the best of his effort.
(Guide Sign) (PGPMI Team Member Sign) (Director Sign)
March-2008
RAJNI KANT Page i
Study of Promotional Strategy of ICICI Prudential Life Insurance Co. Ltd.
ACKNOWLEDGEMENT
First of all I would like to thank the Management of ICICI Prudential Life Insurance
Co. Ltd.
for giving me the opportunity to do SURVEY PROJECT under IGNITE SERIES.
In my whole endeavor to complete this project, I own immense gratitude to my project
guide Prof. Gaurav Ashesh for extending his guidance and co-operation though this
project.
I express my sincere thanks to all the Faculty Members of ISB&M Noida for there
valuable
cooperation and giving me valuable information in preparing the project.
I am highly indebted to Prof. Hari Shrivastava for his continuous support and
encouragement.
I would also like to thank Prof. Vikas Sharma for extending his guidance and support
33
though this project.
Last but not least, I express my sincere gratitude to all the respondents who helped me
in
the project.
March-2008
RAJNI KANT Page ii
DECLARATION
The information provided in this report is accurate and true as per my knowledge &
understanding.
Prof. Gaurav Ashesh, Faculty, ISB&M Noida, was my Project Guide during ONLINE
PROJECT COMPETITION conducted by PGPMI TEAM of ICICI Prudential Life
Insurance Co.
Pvt. Ltd. under the title head of IGNITE SERIES.
This IGNITE-V Online Project report represents “Study of Promotional Strategy of
ICICI
Prudential Life Insurance Co. Ltd.” Under the title head of “Advertisement
Effectiveness
with reference to Life Insurance”
The pages count in this project does not include Front Page, Table of content, and
Annexure, The Preface, Declaration, Executive Summary, and References, do not
constitute part of the page limit.
The page count in the main text excluding the aforementioned points is 46 pages.
Report
style has been adopted for presentation as per guideline and attempt has been made to
maintain the different parts and tasks as distinctive as possible but yet linking key
elements
together to avoid repetition and to communicate the significance.
(Signature of the Projectee)
March-2008
RAJNI KANT Page iii
PREFACE
In this project we review the tools and techniques used to measure Advertising
Effectiveness. Effectiveness is the measure of the gap between results and objectives.
Lower the gap, higher the effectiveness. Thus it is an evaluation of the advertising
process. The advertising evaluation process is frequently called accountability.
Management wants the advertising managers to identify exactly what results were
34
obtained for the advertising investment and to provide evidence of the return on
investment. After all, advertising uses the scarce resources that could be invested in a
number of ways. Therefore, the question that management poses is, “Is advertising the
best way to use those funds?" And it is the job of the advertising campaign planner to
be
able to answer that question. To do so usually requires some form of advertising
evaluation.
Evaluation of advertising campaign effectiveness is a form of research though it is
somewhat different from other forms. Most advertising research is used to predict what
might occur in the market place. Effectiveness research, on the other hand is used to
determine exactly what did happen. Although this information might be used as a basis
for future actions, its basic purpose is to measure what occurred as a result of the
advertising campaign and, therefore, what return was received on the investment made.
In short, the reasons to evaluate the advertising campaign are as follows:
1. To determine if the objectives set for the advertising campaign were met. This off
course presupposes that measurable objectives were set in the first place. And that
these objectives are in line with the overall marketing objectives and strategies.
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The first success of any effectiveness research would be that it forces managers to
think clearly and put down on paper, for themselves and others, what they expect
the advertising to do.
2. To quantify the return on the campaign investment. By knowing what was achieved,
management can relate that information to opportunity cost of money and
determine cost effectiveness of the advertising campaign. Off course this is an ideal
situation. Measurements of advertising results are seldom precise enough to make
this quantification possible.
3. To use the results of effectiveness research to make changes, additions, or
completely alter course for future campaigns. No advertising campaign is ever
totally successful.
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A. EXECUTIVE SUMMERY
A successful product or service means nothing unless the benefit of such a service can
be
communicated clearly to the target market. An organization promotional strategy can
35
consist of:
� Advertising: Is any non-personal paid form of communication using any form of
mass media.
� Public relations: Involves developing positive relationships with the organization
media public. The art of good public relations is not only to obtain favorable
publicity within the media, but it is also involves being able to handle successfully
negative attention.
� Sales promotion: Commonly used to obtain an increase in sales short term. Could
involve using money off coupons or special offers.
� Personal selling: Selling a product service one to one. By personalizing advertising,
response rates increase thus increasing the chance of improving sales.
� Direct Mail: Is the sending of publicity material to a named person within an
organization
Message & Media Strategy
An effective communication campaign should comprise of a well thought out message
strategy. What message are you trying to put across to your target audience? How will
you
deliver that message? Will it be through the appropriate use of branding?
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Logos or slogan design? The message should reinforce the benefit of the product and
should also help the company in developing the positioning strategy of the product.
Companies with effective message strategies include:
ICICI PRUDENTIAL: Jeetye Raho
Om Kotak: ‘Jeene ki azaadi’
Nike: Just do it.
Media strategy refers to how the organization is going to deliver their message. What
aspects of the promotional mix will the company use to deliver their message strategy?
Where will they promote? Clearly the company must take into account the readership
and
general behavior of their target audience before they select their media strategy. What
newspapers does their target market read? What TV programmers do they watch?
Effective targeting of their media campaign could save the company on valuable
financial
resources.
A.1. Research Objectives
A) Primary Objective
� To understand & measure the impact of advertising in the market.
36
� To measure the effectiveness of advertisement / promotional activities for a
particular product class and corporate advertising.
� To understand and measure the affect of advertising in brand-building, brand
re-call and finally the choice of a plan while buying it.
B) Secondary objective
� To know the promotional strategies of ICICI prudential.
� To know how they face their competitor’s strategies.
� To know how they survive in the cutthroat competition.
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A.2. Structure of the Project
This report consists of parts covering relevant areas to the topic under discussion.
� The first part introduces the reader to the report and also outlines the structure and
topics of discussion.
� The second part describes in brief that what the concept behind giving
advertisement is., and what is the scope to this project.
� The third part identifies in which way we moved. Which methodology we adopt to
conduct this project.
� The fourth seeks new scope in untouched market and how advertisement affects in
brand building.
� The fifth part deals with facts and findings which give us knowledge about the
current market trend.
� The sixth part extends into the generic strategies adopted by ICICI Prudential to
touch not only consumer share of mind but also consumer share of heart.
� The fifth part introduces with greater analysis what is happening in current market
scenario and how ICICI Prudential survives in this cutthroat market competition.
� The sixth part talks about the Insurance Industry and discuss the growth story of
Leading Private Insurance Company which is ICICI Prudential Life Insurance
Company Limited.
� The final part sets the final context linking all the key frameworks and analysis with
the author’s own conclusions and future directions and expresses the author’s
limitation to this report.
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March-2008
37
1. Table of Contents
Particulars Pages
Acknowledgement ii
Declaration iii
Preface iv-v
A Executive Summary vi-viii
A.1 Research Objective vii
A.2 Project Structure viii
1 Introduction 1-3
1.1 Problem Area 2
1.2 Scope 3
2 Background 4-5
3 RESEARCH METHODOLOGY 6-8
4 Literature Review 9-12
Media Exposure in Rural Market 9
Corporate Advertising 10-11
Affect of advertising in Brand Building 12
5 Analysis 13-28
Data and Interpretation 13-15
FACTS AND FINDINGS 16-26
Limitation of the Project 27
Conclusion 27-28
6 RECOMMENDATIONS 29-30
7 Media Strategies of the Company 31-34
8 Current Market Scenario 35-39
9 Industry profile 40-43
10 ICICI Prudential Life Insurance Co. Ltd. 44-46
References 47
Bibliography
Annexure
Questionnaire
Respondent Database
Result Analysis Sheet
IMPACT: Marketing on Society Vs Society on Marketing
RAJNI KANT Page ix

1. INTRODUCTION
"Advertisements are sometimes spoken of as the nervous system of the business
world ...
38
As our nervous system is constructed to give us all the possible sensations from objects,
so the advertisement which is comparable to the nervous system must awaken in the
reader as many different kinds of images as the object itself can excite"
“Advertising effectiveness means different things to the groups responsible for its
different
effects. To the writer or artist, effective advertising is that which communicates the
desired
message. To the media buyer, effective advertising is that which reaches prospective
buyers a sufficient number of times. To the advertising or marketing manager, effective
advertising is that which, together with other marketing forces, sells his brand or
product.
To the general manager, effective advertising produces a return on his firm’s
expenditure.”
“In fact, effective advertising must achieve all four goals, delivering messages to the
right
audience, thereby creating sales at a profit. Most advertisers have begun only recently to
set goals in all four areas and measure progress toward them. Some advertisers have set
communications and audience goals, and measured copy and media effects, but few
advertisers have set dollar goals and measured sales and profit effects.
The result is that advertising has rarely been a part of corporate planning. Thirty years
ago,
management was asking the same questions they ask today: Is my advertising working
and what impact does it have on my sales? Can it be measured? Can our advertising and
promotion be made accountable in the same manner as which one evaluates all of the
other investments by our company?
The answer to all three questions is yes. In fact, the techniques to deliver this degree of
accountability and control have been around for more than 50 years and are industry
standards.
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There are methods to test every aspect of marketing promotion, sales support and media
mix, and analytical tools to establish a direct relationship to sales for complete
accountability. The key to this is applying a full advertising research curriculum. This
requires involvement of both sales and marketing management and the
advertising/promotions supplier coordinating their efforts with the researcher. It is a
partnership. This may explain why so many from both the client and agency sides
remain
39
of the opinion that it can’t be done. The fact is that a full curriculum can be
implemented, is
already integral to nearly every brand leader, and you can do it as well. It just takes a
little
planning and co-operation. Let’s start from where it all began.
1.1. Problem Areas
A majority of Indian customers being very conservative and averse to risk, trust was an
extremely important factor in the insurance business. Since LIC was a government
owned
body, there was an element of security embedded in its services and products. This
proved to be the biggest hurdle for the new insurance companies as Indian customers
were reportedly rather skeptical about them.
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1.2. Scope to
The Study
A big boom has been witnessed in Insurance Industry in recent times. A large number
of
new players have entered the market and are vying to gain market share in this rapidly
improving market. The study deals advertisement given by Insurance Companies. The
study then goes on to evaluate and analyze the findings of these advertisements so as to
present a clear picture of media strategy the Insurance players.
The Company
The result of the survey will help the company to know about the effectiveness of
various
life insurance advertisements and how much advertisement is helpful in buying
decision.
The results will also help the company to trace the loop holes and then take the
corrective
measures to rectify them.
The Industry
This is a limited study which takes into consideration the responses of 50 people. This
data
can be exported to take decision for promotional strategy across the industry. The
significance for the industry lies in studying these trends that emerge from the study. It
is a
rapidly changing and evolving sector. People are only beginning to wake up to its vast
possibilities. A study like this can attempt to guide the future of the industry based on
40
current trends.
The Researcher
To facilitate and provide all the useful information of the study, the company, the
insurance
industry and also provide marketing ways, methods of ICICI Prudential Life Insurance
Co.
March-2008
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2. BACKGROUND
According to industry observers, one of the main reasons for the low insurance
penetration in India was the ineffective distribution and marketing strategies adopted by
LIC. The company reportedly never had any strategic marketing game plan, and due to
its
monopolistic nature the need for serious marketing efforts was never felt. The
advertising
initiatives were limited to some print and electronic media advertisements that typically
talked about LIC’s products being great tax saving tool for salaried individuals who
came
under the income-tax bracket. Despite all this, LIC was synonymous with insurance in
India
and it had established an enviable brand image for itself, especially in the rural areas
and
small towns. However, with the entry of new players, the insurance market changed
almost
overnight. Analysts commented that the private insurers seemed all set to make the
industry marketing-driven, wherein technical and service excellence would be the key
factors of success. The private companies, in a bid to make their presence felt and their
brand noticed, initiated a series of aggressive marketing and promotion initiatives,
something that buyers of insurance were not accustomed to.
In July 2002, India’s state owned insurer, Life Insurance Corporation of India (LIC)
announced aggressive marketing plans with a budget of around Rs 1 billion. The aim of
this unusual decision was to woo customers across the country through a multimedia
campaign including advertisements on the radio and the press media, the outdoor media
and the television. However, this did not come as a major surprise to industry observers
who said that LIC
did not have too many options.
With the insurance bill being passed in 2000, the Indian insurance sector saw a host of
41
private players enter the market with multinationals as their partners. These new players
resorted to aggressive marketing and advertisement strategies – something the market
had
never seen earlier.
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This sudden spurt of advertisements and awareness programs was visible on all the
media
channels. Print, electronic and outdoor advertisements of the new private insurers
flooded
could be seen everywhere. This prompted many comparisons of such behavior of
insurance companies with the advertising frenzy of the dotcoms in India not too long
ago –
with similar full-page advertisements, huge hoardings and costly electronic media
advertisements.
According to reports, in the first quarter of the year 2002, insurance companies spent
70%
of what was spent in the whole of 2001, on advertising and publicity. Across the world,
insurance, as a category was one of the largest spenders on advertising. In India too
substantial expenditure was being incurred due to advertising.
COMPANY EXPENDITURE
LIC 1000
Allianz Bajaj 200
Om Kotak Mahindra 150
ICICI Prudential 146
Source: ICMR.
However, during the first year of the entry of new players, while LIC reported a growth
of
over 250%, private insurers managed to garner only about 0.5% market share, in spite
of
spending hefty amounts on advertising and promotion. According to reports, LIC’s
business increased mainly because of the increased public awareness about insurance,
which was brought about by the heavy advertisement campaigns of private players.
March-2008
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42
3. RESEARCH METHODOLOGY
Research methodology is a strategy that guides a research in providing answers to
research questions and for this, research survey is being done. “Accuracy of the study
depends on the systematic application of the method”. The researcher has to decide the
method to be used that helps him to get a desired direction in a systematic way. This
study
in the following manner.
A) Methodology Adopted
Questionnaire Design
The questions were designed in an easily understandable way with the help of Prof.
Gaurav Ashesh (Faculty Guide) and Prof. Hari Sadhu. That the respondents may not
have
any difficulty in answering them. The questionnaire also contained a comments section.
This section was included so as to get opinion of the people regarding the ICICI
Prudential
Life Insurance.
Random Sampling
Sampling can be defined as a part of population. Thus random sampling may be defined
as
the selection of a portion from the whole population in which each elements of the
population has an equal chance of being selected. A more please definition is that each
element in the population has a non-zero and known probability of selection a randomly
drawn sample is an unbiased sample. In this research survey 50 people were surveyed at
random to get the relevant information.
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Sample Size: The sampling techniques used in this project are probability sampling
techniques and the methods used in cluster sampling.
Sampling Unit: The respondents who were asked to fill out questionnaires are the
sampling units. These comprise of employees of MNCs, Govt. Employees, and Self
Employed etc.
Sample size: The sample size was restricted to only 50 between age group of 25-40,
which comprised of mainly peoples from different regions of India.
Sampling Area: The area of the research was Delhi Metro Railway Quarters, New
Delhi,
India.
B) Data Collection
Structured Questionnaire
43
In this collection data, structured questionnaire is used as a tool by asking a set of
standardized questions to know the effect of Life Insurance Advertisement and behavior
of
the people for the ICICI Prudential Life Insurance.
Interview
The next step involved in collecting information requires discussion with people. Thus
valuable information was gathered informal friendly talks with the people.
Secondary Data Collection
Various websites were consulted to collect literature relevant to the topic.
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Interpretation
Interpretation refers to the task of drawing inference from the colleted facts after an
analytical study, in fact it is a search for broader meaning of research findings it is
through
interpretation that the researcher can well understand the abstract principle that
respondents beneath his findings. The simple statistical tools will used to analyze the
data
collection, Bar Graphs and pie chart have been used to illustrate the findings
diagrammatically. The scores for advertisement were compiled on spontaneous recall,
aided recall and likeability. The top ads are selected on the basis of their score.
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4. Literature Review
4.1Media Exposure in Rural Market
The rural middle-class constitutes a
potential market lying to be tapped by any
industry. There are 16.4 million urban
middle-class households and 15.6 million
rural middle class households in the
country, but the latter had a better
purchasing power because they do not
incur any expenditure on rent, transport
and school fees, compared to their urban
counterparts, who spend a sizable portion of their income on these items.
44
The estimated annual business from rural markets was Rs 1,23,000 crore, comprising
Rs
65,000 crore of FMCG, Rs 5,000 crore of durables, Rs 45,000 crore of agricultural
inputs
including tractors and Rs 8,000 crore of two-wheelers and four-wheelers. 29% of the
rural
people own cars, 27%t own colour televisions, 24% own refrigerators and 10% own
washing machines, which points to the untapped potential in the rural areas.
Another revealing aspect of the
market is that 55% of the LIC
policies, 50% of the BSNL mobile
connections, 53% of the FMCG
products, 59% of durables, 60%of
Rediffmail sign-ups and 50% of
online shopping on Rediffmail are
accounted for by the rural sector.
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TV impact: The dressing style of the rural people has also changed due to the impact of
the
TV. Studies revealed that TV advertisements are not understood by the rural people
who
think "they are for the rich". "Being sensitive and relevant to the requirement of the
region
should be of utmost importance in the choice of products, packaging, pricing,
promotions,
markets and communication,"
Key Summary
The Indian rural market with its vast size and demand base offers a huge opportunity
any
industry cannot afford to ignore. With 128 million households, the rural population is
nearly
three times the urban. We therefore have to look at the rural market very seriously for
future expansion.
4.2. CORORATE ADVERTISING
How a company does announced a name change especially when the old name was well
known? How does the company explain itself to constituents who may have known the
45
company quite well in an earlier incarnation but may be struggling to figure out what
the
new organization stands for? How can the company create a new image while retaining
the
strengths of the old one? And what role might corporate advertising play in all this?
Corporate advertising can tell a story about a company as a whole, large organizations
may
need to use corporate ads to simplify their image in the minds of key constituents and to
show what unifies the company, despite the geographical spread and variety of its
businesses.
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We can very well understand the concept of corporate advertising by taking the
example of
ICICI Prudential communication. When Company first began operations, the task was
to
present the visiting card of the company to the public at large and build credibility and
stature and to give the consumer the confidence that ''here is a company that can be
trusted to invest funds with.''
This required a corporate campaign - to establish the brand, build awareness and give
the
brand a larger-than-life image.
The advertising idea, which was encapsulated in symbols of protection from the initial
print
campaign, culminated in the corporate film where sindhoor was used as an endearing
and
lasting symbol of protection.
Once the corporate image and brand identity were established, and as the company
expanded and its product range grew, the next phase of communication was to give the
consumer a rational and tangible reason to buy - first of all insurance and secondly from
ICICI Prudential Life. This was tackled through product-specific advertising, such as
for
ICICI Pru Smart Kid, retirement solutions or LifeTime.
Key Summery
� Create a good citizen image through consistent & dedicated effort.
� Convey the organizations commitment to the concerned publics as well as to the
masses & eliminate prejudices, if any held by opinion leaders in particular & by the
public in general.
46
� Boost both employee management relation & employee morale enabling all
members of the internal public to discover a new vitality.
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4.3. Affect of advertising in Brand Building
Brand building through corporate advertising, defined
generally as advertising that benefits a company’s image by
emphasizing its own resources, skills and/or character. Many
astute business people now recognize corporate brands as
fundamental business assets, and have begun reaching out to
customers, prospects, and the financial community by
advertising those brands.
Brand building advertising is synonymous with product advertising and is commonly
seen
in traditional mass media, including TV, radio, magazine, and newspaper. Brand
building
advertisements tend to be product/service- (or retailer-) oriented with the purpose to
establish a positive image and creating demand for a product or service that leads to
eventual purchase. The communication route is typically one-to-many and is designed
to
reach a mass audience by using a tactic of at capturing the attention of users.
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* Analysis of only selected question is discussed in this project which shows huge
information of the market.
5. Analysis
It includes the summary of advertisement scenario of insurance industry in the soaring
mass market available in India based on the survey conducted.
5.1 Data and Interpretation
In the market it can easily be realized that the Television audience had a huge impact of
these ads. Although the most popular medium of entertainment or information gathering
has emerged as the arena of media war. But yes the old players news paper and radio
are
still on their high trying to dominate in the market. Internet being in its youth phase is
rapidly reaching in the elite class.
47
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Apart from entertainment channels like Zee T.V , Sony etc where family soaps are
having
the highest TRPs contribute mainly for in FMCG sector. Though they show a bit of
Insurance Ads too. In the emerging economy of INDIA News and business channels
have
risen serprizingly and contributing in the promotion of insurance sector.
(Ranks are in ascending order)
LIC being the gaint of Life Insurance in INDIA has grabed the top slot in terms of
advertisement also. Other private players like ICICI Prudential, HDFC Std. Life, Brila
Sun life
and Reliance Life Insurance are trailing behind LIC.
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Life Insurance is considered to be sold by push strategy only, and we are witnessing
alternative financial Instruments available in the market giving tough competition. The
first
thing before buying an Insurance Product in the competetetive market comes in the
mind,
is the BRAND. It really plays a tremendous role for a product to be bought. It seems
clearly
in the servey.
The message which is conveyed through these advertisements are however acceptable
by
the mass market. People agree that the ads are understandable to them. But the
relevance
is still in the black hole as these advertisements are treated as like entertainment clips.
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5.2 Facts & Findings
TAM Media Research, a joint venture between Nielsen Media Research (NMR)/ AC
Nielsen
48
and Kantar Media Research (KMR)/IMRB gives fruitful knowledge to understand
media and
advertising trend.
In July 2002, TAM took operational control of ADEX service-the pioneer in Media
monitoring in India. TAM inherited a well-oiled monitoring system with a trend work
force.
ADEX India represents a cutting edges strategy tool which helps us to keep an eye on
advertising and media trend.
Facts and figures of advertising trend of year 2007-08 and role of Life Insurance
advertising
in advertising business as per the survey conducted by AdEx India (A division of TAM
Media Research) is mentioned below.
Snapshot on TV Advertising in 2007
1) Volumes growth in TV advertising.
TV ad volumes saw a tremendous growth of 126 per cent during 2007 compared to
2004.
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2) Sartorial division in TV advertising.
Top 10 sectors constituted 58 per cent
share of TV advertising during 2007.
With 14 per cent share F&B had the largest
share of TV advertising, followed by
Personal Care/Personal Hygiene and
Services with 9 per cent and 6 per cent
share, respectively.
3) Channel wise distribution of advertisement in TV.
General Entertainment Channel led with 1/3rd share, followed by News and Music
Channel
with 23 per cent and 15 per cent shares, respectively, during 2007.
Key Findings:
� 31 per cent growth in TV ad volumes during 2007 compared to 2006.
� Food & Beverages sector leads in TV advertising during 2007.
� HUL maintained its first rank in the top 10 advertisers list on TV across both the
years 2006 and 2007.
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49
Snapshot on Life Insurance advertising on TV in 2007
1) Share of Life Insurance (Life Insurance versus Other Insurance).
The overall TV advertising was shared by Life
Insurance and Other Insurance in the ratio of
80:20 during 2007.
2) Volume Growth in Life Insurance sector.
Television advertising of Life Insurance grew by 258 per cent in 2007 as compared to
2004.
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3) Private versus Public Insurers on TV during 2007.
Private Insurers lead with 78 per
cent share of overall advertising of
Life Insurance sector on TV during
2007.
4) Rank shift of top Life Insurers in 2007 during 2006.
LIC and HDFC Standard Life Insurance
Co. Ltd switched their ranks in 2007
compared to 2006.
Compared to 2006, Bharti AXA Life
Insurance Co and ING Vysya Life
Insurance moved up maximum places
to be in the top 10 list of 2007.
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5) Top 10 Life Insurance brands on TV.
HDFC Standard Life Children Plan
lead with 8 per cent share followed
ICICI Prudential Life Insurance and
Bharti AXA Life Insurance with 7 per
cent and 6 per cent share,
respectively, during 2007.
Top 10 brands were a mix of five
brands of Life Insurance, and three of
the brands belonged to the Pension
50
Plan.
6) New brands launched on TV in 2007.
Birla Sun Life Children's Dream was
number one Life Insurance brand to be
launched on TV in 2007.
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7) Genre usage for Life Insurance advertising.
Maximum Life Insurance
advertising was done on
Regional GEC followed by
Hindi News.
Among the News genres viz.
Hindi, English and Regional
News channels took second
third and fourth slots
respectively during 2007.
Highlights
� Life Insurance' players had an 80% share of overall TV advertising of 'Insurance'
sector in 2007.
� 'Life Insurance' advertising grew by 72% during 2007 compared to 2006.
� ‘Life Insurance’ advertising max. during Q1 across 2006 and 2007.
� 'LIC' took the top slot among the players of 'Life Insurance' on TV in 2007.
� ‘Birla SunlifeChildrensDream’was the top brand in the new brands list on TV.
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Snapshot on Life Insurance advertising in print in 2007
1) Share of Life Insurance (Life Insurance vs. Other Insurance)
'Life Insurance' and 'Other Insurance'
contributed to Insurance advertising in
the ratio of 76:24 in Print.
2) Volume Growth in Life Insurance sector
Life Insurance’ advertising in Print
witnessed a dip of 14% during 2007 over
2004.
3) Share of Private and Public Insurers in Print during 2007
51
Private Insurers took 55%
advertising share of ‘Life
Insurance’ advertising in
Print during 2007.
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4) Rank shift of top Life Insurers in 2007
Tata AIG Life Insurance and Max New
York Life Insurance moved up maximum
places to be in the top 10 list of 2007
compared to 2006.
5) Top 10 Life Insurance brands in Print
6 out of top 10 brands of Life
Insurance print advertising were of
LIC during 2007. 3 of the top 5
brands were of LIC during 2007.
6) New brands launched in Print in 2007
Interestingly, among the top 10 list of
new brands, 8 were related to ULIP
except for LIC’s Aam Admi Bima
Yojana and LIC’s Jeevan Amrut.
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7) Preference of Genre for advertising of Life Insurance
Maximum Life Insurance advertising was done on business/Finance/Economic
magazines,
followed by news/current affairs and general interest. But the condition is reversed in
case
of newspapers. Here 91 percent of the Life Insurance advertisement is found on General
Interest page.
Highlights:
� In the Insurance sector, ‘Life Insurance’ contributed 76% of advertising in Print
during 2007.
� ‘Life Insurance’ advertising dropped by 25% in Print during 2007 compared to 2006.
� High advertising in ‘Life Insurance’ sector during the first quarter of both the years
2006 and 2007.
52
� Private Insurers took 55% share of overall advertising of 'Life Insurance' in Print.
� LIC and Bajaj Allianz Life Insurance maintained their respective 1st and 2nd ranks
in
2006 and 2007.
� Baja Allianz Life Insurance and LIC were the top 2 brands of ‘Life Insurance’ in
Print
during 2007.
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Findings
As per the survey conducted it is
found that our result also supports
the facts mentioned above. Majority
of public use television for
entertainment or information
gathering, followed by newspaper
and internet. Radio is seems to be
out dated in urban areas. But after
revolution in mobile technology and satellite radio it again starts growing.
This survey question shows that how
much brand awareness is important.
Majority of the public goes behind
brand name. That’s why corporate
advertising plays a vital role in
growing stage.
It is also found that Insurance
companies like to give their
ads in News/Business channel.
It may be because of
Insurance is related to finance
and Insurance is mainly taken
as a tax saving instruments.
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Liking an advertisement
does not mean that public
53
would like to buy that
product. During survey a
collection of various
insurance companies ad
shown to the respondent.
They liked it very much.
Some of them are get
emotional because it
touches their heart. But when it is asked that how many of them now would like to
purchase insurance policies then instead of raising hands deep salience come as a
answer.
It shows that Liking an advertisement does not the guarantee of sell. Only few of them
actually buy after seeing ad especially in case of Insurance.
As we know LIC is a big player in
an Insurance Industry and it is
everyone’s first choice. But private
players also start chasing LIC. The
craze of LIC is mainly because of
Public sector. If we talk about
private players then ICICI
PRUDENTIAL is the first choice of
the public followed by HDFC Std.
Life and Reliance Life Insurance.
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5.3 Limitation of the Project
� The research is confined to a certain parts of Delhi due to time constraints and
does not necessarily shows a pattern applicable to all of Country.
� Some respondents were reluctant to divulge personal information which can
affect the validity of all responses.
� In a rapidly changing industry, analysis on one day or in one segment can
change very quickly. The environmental changes are vital to be considered in
order to assimilate the findings
5.4 CONCULSION
There has been a tectonic shift in advertising the insurance companies. Till 2 or 3 years
back a typical Ad will showcase a small happy family enjoying their life. Then one
unfortunate Day the head of the family dies in an accident and the rest of the family is
drawn to rags. The ad ends up saying Insurance can help them against such calamities.
54
People bought the idea and started buying insurance. But there was a basic flaw in the
ad.
It tells the consumers about the advantages of “having Insurance” but nothing about
“buying insurance from a perticular insurance firm”. So whoever casting such ad was
helping the industry as a whole but not their specific firm.
If we see the recent ads they are talking about how “SBI Life” can help smoothen your
oldage
life or how “ICICI Prudential” can help you in receiving pentions etc. This sounds more
logical. Each ad speaks about how their firms offers can help you instead of telling how
insurance as a whole can help you.
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In concluding part of this project it shows that
advertisement is very much important for any
business. A huge amount is paid by
companies against advertisement. There are
many ways available to give advertisement on
which this amount is paid this are TV,
Newspaper, Radio, Internet etc. The amount
spent on advertisement over four year across
the world is shown I table.
At the initial phase of a company it is important that they give emphasis on corporate
advertising because it helps in brand recall. At the later stage company can go for
product
class advertisements. Well it is also found that during session that endorsement of
celebrities is helpful in ad recall. But giving advertisement in any type of media is not
the
only medium; there are many other ways also like social service, by way of educating
people. Especially for Insurance companies if they want to capture rural market then
they
have to approach in different way. In my opinion rural market can only been captured if
we
reaches to there heart. And this can be happen only if we solve there basic problem.
March-2008
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55
6. Recommendation about promotional strategies
The suggestions have been classified into two categories.
� Action oriented suggestions
� People oriented suggestions
ACTION ORIENTED SUGGESTIONS
An intense AIDA model needs to be adopted the AIDA model (Awareness, Internet,
Desire,
and Action). Customers are aware of majority of products of ICICI PRUDENTIAL Life
Insurance Co. Ltd.
To create the awareness regarding Product
1. Print & Electronic Media Advertisement should be done (As we can see intense ad
campaign of HDFC Standard Life and Bajaj Allianz.)
2. After the initial promotional campaign the relative advantage of ICICI
PRUDENTIAL
Life Insurance Co. Ltd. Over its competitor should be highlighted.
3. Hoardings at prime areas should be used.
PEOPLE ORIENTED SUGGESTIONS
1. Creating offers like lucky draws for the users of Internet.
2. Giving free gifts for the customer.
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6.1 Special Recommendation
The insurance sector has largely stuck to images of happy families, carefree couples and
cute babies. We have to use a different route to break the clutter, and humor and
endorsement of celebrities is some of the routes available to us."
ICICI Prudential should come in front for development of rural sector, by way of
establishing a school, by digging a well in villages. May be it seems like a fool’s
suggestion
but it is one of the way to gain trust in rural sector. We can also use to advertise us by
using the way of “HALLA BOL”. If we adopt this technique then I am sure that this
will be
most creative and cheaper advertisement all over the world. And by this way ICICI
Prudential can again list their name in top advertiser.
March-2008
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56
7. Media strategy of ICICI Prudential Life Insurance Co. Ltd.
It was time when the marketing team was thinking about an advertising campaign,
almost
everyone, including the company's board, pooh-poohed the idea. At that time people
thought Company is wasting money. But ICICI discarded this “fear" typically used for
hawking insurance, choosing instead a "happy" platform to convey a more positive
message.
Even today after it has rolled out so many campaigns, ICICI remains among the top
advertisers: ad spends, as a percentage of new business premium, range between 0.5 per
cent and 0.75 per cent. Lowe (Lintas) has been the creative advertising agency for
ICICI
Prudential Life since the beginning.
The TA:
Representing an ideal mix of medium to high net worth individuals: The consumers
most
disposed towards buying life insurance. Middle-aged professionals, primarily male,
salaried and self employed, age group: 28 - 45 years, household income: Rs.20, 000 and
above.
Creative Strategy:
The essence of the creative strategy: To get the consumer to re look at Insurance as a
means to lead a worry free life and not as a necessary evil. When ICICI Prudential Life
Insurance first began operations, the task was to present the visiting card of the
company
to the public at large and build credibility and stature and to give the consumer the
confidence that 'here was a company that could be trusted to invest funds with'. This
required a corporate campaign, which started with advertising to establish the brand,
build
awareness and give the brand a larger than life image. To this effect the core brand
insight
highlighted was "As head of the family it's my responsibility to take care of my loved
ones
and protect them from the uncertainties of life", summed up in the advertising idea:
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‘We cover you at every step in life (Suraksha… Zindagi ke har kadam par). ICICI Pru
was
positioned as an enabler of protection relevant to the needs of the life stage that you are
in.
57
Over the last few months, ICICI Prudential has been advertising in outdoor, TV and
press.
The company launched a corporate television campaign – Saat Phere – which took the
emotions and thoughts of initial Sindoor corporate film a few steps further. The film
highlights the strength of promises that a husband makes to his wife, through the
depiction
of everyday situations, and then goes on to emphasize that ICICI Prudential will stand
by
the husband to help him fulfill all these promises. The TV campaign has also been
extended to outdoor. The company has also undertaken press and internet campaigns to
inform customers about benefits of some of its products, particularly retirement
solutions,
through the Chintamani campaign.
Once the corporate image and brand identity were established, and as the company
expanded and its product range grew, the next phase of communication was to give the
consumer a rational and tangible reason to buy - first of all insurance and secondly from
ICICI Prudential Life. This was tackled through product-specific advertising, such as
for
ICICI Pru Smart Kid, retirement solutions or Lifetime.
The Creative execution:
TVC: Building image and creating a differential in the most creative and compelling
manner. The creative execution heightened the emotional connect with the ICICI Pru
brand
- Indian; satisfaction of knowing that one’s loved ones are protected. Symbolic
representation of the protector of the family through situations showcasing various life
stages and creating endearing imagery of protection and familial bonding.
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Press: Gave the consumer a rational and tangible reason to buy insurance first and
secondly from ICICI Prudential. The product specific advertising focussed on changing
the
prevalent perception about insurance and breaking a few myths: non- affordability,
insurance not being good investment option and the myth that insurance was good only
for tax saving.
After the hugely successful Chintamani (retirement) and Saat Phere (corporate)
campaigns,
ICICI Prudential Life Insurance also introduced some innovations in the category, such
as:
58
having a tax planner by the name of Chintamani on radio, who would answer
consumer’s
queries about the role of insurance in financial planning.
Other Communications:
Other programs included direct mail, PR of communications campaign in press & TV,
website marketing; and database generation through Bancassurance channels.
Other initiatives included tie-up with the Dabbawalla Organisation in Mumbai for a
direct
marketing exercise, to talk to the customer through a non-cluttered route, and thereby
have a higher impact. The direct mailer was about ICICI Prudential’s retirement
solutions
and the tax benefits that one can avail of buy investing in any of these. About 100,000
direct mailers were attached to the ‘dabbas’, in areas such as Churchgate, Bandra and
Andheri where there are mostly office-goers. ICICI Prudential Life Insurance has also
announced a strategic distribution tie-up with Hariyali Kisaan Bazaar, the rural business
arm of DCM Shriram Consolidated Ltd (DSCL). As a partner, Hariyali Kisaan Bazaar
can
now distribute ICICI Prudential's protection, wealth creation, retirement solutions and
health insurance products to customers across the its growing number of rural business
hubs in the country.
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In addition to advertising, the company has also initiated several activities to raise
consumer awareness about life insurance and ICICI Prudential. “It includes seminars -
ICICI
Prudential regularly holds consumer awareness meets on ‘the need for retirement
planning’ in different cities such as Pune, Aurangabad, Coimbatore, Nagpur, Bangalore
and
Mangalore. These are very well attended and have contributed significantly towards
increasing awareness about the category and the company. Apart from this, company
also
entered into alliances with telecom companies, as well as companies like BPCL and
Dominos.
The results of communication efforts:
Being no: 1 in awareness and saliency.
Awareness: ICICI Pru showed a significant jump in
awareness between Feb and Sept 2001. Image:
Highest score among all Insurance players
59
including LIC, on image parameters like safety,
modernity, service, good returns etc. Intention to
invest: Next only to LIC as per research (All
Source: Research by ORG Marg). No. of calls and
emails: There were 70,000 calls at the call center
and 6582 emails in the year 2001. Today, ICICI
Prudential are fairly high on awareness, among
target segment. Company have a 86% brand
recall today.A research survey shows that among
the investing public. About 11% of the investing public knew Prudential ICICI top of
mind. It
is a fair indicator of the share that the brand enjoys in the market. On spontaneous level
ICICI prudential are at 30%. ICICI Prudential Life was awarded the INDY’s Award for
Excellence in Mass Communication in the category of Most Creative Advertisement-
Television.
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Insurance Advertisement Trend
LIC Vs Private Players
According to a survey conducted by a leading marketing research firm, ORG Marg,
brand
awareness of private insurers in India was increasing in the early 21st century.
The difference in the level of awareness of these new players as compared to the
hitherto
monopoly of LIC was decreasing fast because of the aggressive advertising measures
adopted by private insurers.
The new companies focused their campaigns primarily on building an image of
trustworthiness and reliability for themselves. Secondly, their advertisements focused
on
insurance as an investment option and not a mere tax saving tool – another first for the
Indian market. Most of these advertisements carried messages like the family’s
happiness,
human bonding, etc., with underlying emphasis on the security that insurance could
provide. Also, instead of projecting the idea, that an insurance policy actually starts
working only after the death of the insured, the new campaigns projected that insurance
protects people throughout their lives.
Various Insurance Ads
60
In one of its TV commercials, ICICI Prudential showed a series of scenes depicting the
childhood, marriage and old age of an individual. The purpose of using these visuals
was
to translate the company’s message ‘I will protect’ into real-life incidents. In order to
project its commitment towards consumers to ‘protect at every stage of life,’ the
company
brought in the concept of sindoor, which symbolizes protection. Sindoor was shown
throughout the commercial as a mark of auspiciousness and protection, and at the end, it
became the red line below the ICICI Prudential logo.
Max New York also resorted to depicting positive emotions such as trust and protection
in
its print advertisements. The company released two print advertisements.
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While one of them carried an image of the revered deity Goddess Durga, the other
projected three teenagers standing together, with their faces painted green, white and
saffron – like the Indian national flag. Reportedly, Max New York wanted to convey
the
message that ‘insurance is your partner for your life.’
In addition to such TV commercials, the private insurance companies were trying to
make
their presence felt by organizing blood donation camps, contests and sponsoring various
events social events through their agents.
ING Vysya tied up with leading US-based Columbia Picture’s Indian arm to carry out
promotional activities using the blockbuster English movie ‘Spiderman.’ In the metros,
ING
Vysya distributed free movie tickets to its customers. The latter also organized the
Green
Mumbai Drive and several blood donation camps in association with the Red Cross,
besides sponsoring the action replay of the India-West Indies cricket match series in
May
2002 and also in November 2002.
Om Kotak and Birla Sun Life took to sponsoring events in a major way, to attract
prospective customers. Om Kotak initially highlighted in its advertisements the
credibility
and trustworthiness of individual partners (Old Mutual & Kotak Mahindra) through its
generic campaigns. The TV commercials featured men and women ‘meeting’
themselves
61
in the future – happy, healthy and secure, thanks to insurance.
Allianz Bajaj went a step ahead. Apart from bringing out TV commercials and putting
up
hoarding and billboards, it entered into a two-month long contract with Shoppers Stop.
According to the contract, every Shoppers Stop outlet had an Allianz Bajaj kiosk that
provided information about policies in order to attract customers. Allianz Bajaj’s entire
communication package included print advertisements, outdoor media campaigns and
direct marketing methods. All its print advertisements carried a visual of human hands,
which symbolized partnership and care to stress on the concept of care.
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Similarly, Tata AIG entered into an agreement with Westside to set up information
kiosks in
all its outlets in order to attract people’s attention. Also, Tata AIG was one of the first
insurance companies to adopt the celebrity endorsement strategy. Tata AIG chose the
Hindi movie star, Naseeruddin Shah, as its brand ambassador for endorsing its personal
accidental death insurance policy.
In addition to all the above, private players in the insurance sector charted out various
innovative marketing plans to establish their products. For instance, ICICI Prudential
launched the ‘TruLife Club’ for its high-value policyholders as part of its marketing
strategy.
Through TruLife Club, the company offered a wide range of health-related products,
health
and fitness equipment and membership in gyms, health resorts and clinics in India.
Policyholders with a sum assured of Rs 0.5 million or more were included into this
club.
Punch Lines
Another interesting development was regarding the punch lines used by private
insurance
players that invariably tried to associate positive emotions with insurance products.
While
ING Vysya said ‘Adding life to insurance,’ ICICI Prudential said, ‘We cover you. At
every
step in life.’ Similarly, HDFC Standard advertisements projected a happy man
asserting;
‘Now I can continue enjoying a comfortable lifestyle even after I retire.’ Om Kotak
highlighted its campaigns with ‘Jeene ki azaadi’ (Freedom to live)’ and Allianz Bajaj
stated
62
‘Allianz Bajaj, Life insured by care.’ LIC came out with a corporate advertisement on
TV
with the punch line, ‘Zindagi Tumhari Roshan Rahe’ (May your life be glorious).
LIC Vs ICICI Prudential
With private players paying much attention to advertising and promotional activities,
LIC,
too, was forced to make efforts to increase its visibility and enhance its brand image.
The
company commenced intense, systematic and well-focused public relations and
publicity
activities both at the corporate and operational levels.
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LIC upped its ad spend to tackle competition and succeeded in forging way ahead. LIC
has
advertised in satellite channels as well as terrestrial channels. LIC has to reach out to
nonresident
India policy holders as well as its other corporate customers who are based
abroad.ICICI Prudential has advertised on several channels from the Star TV bouquet,
Zee
Network and Sony. The company have spent about Rs 50 million on TV advertising last
year.
With the geographical expansion, TV became a viable medium and the corporate
campaign for ICICI Pru Life was run on TV, because the medium lends itself well to an
emotional type of films that strike a chord with the audience. Product advertising, which
needs to impart information, was largely done through print and outdoor channels, as
these are appropriate for rational type of messages,
ICICI Prudential Life Insurance campaign was short-listed as one of the 12 most
effective
campaigns for the year 2001 in the EFFIE awards. According to an ORG MARG study,
the
ICICI Prudential brand name and advertising had the highest recall amongst all private
players, and was only marginally behind LIC.
ICICI Prudential Life was awarded the INDY’s Award for Excellence in Mass
Communication
in the category of Most Creative Advertisement-Television.
(The scores for advertisement were compiled on spontaneous recall, aided recall and
likeability. The top ads are selected on the basis of their score.)
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March-2008
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It’s all about Money, Honey
In recent times, the consumer has been bombarded with an unprecedented barrage of
brand advertisement campaigns from insurance companies. Turn on the radio, TV, or
open
a newspaper or internet portal – the glut of insurance advertisements is there to see.
The insurance industry is estimated to have spent over Rs 900 crore in 2007, up from
Rs
200 crore in 2002 on brand building. Of the media investments absorbed in 2007,
around
53 per cent went to TV, and the remaining to the print media. Life insurers alone
accounted
for over 70 per cent.
March-2008
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9. Industry profile
The business of life insurance in India in its existing from started in India in the year
1818
with the establishment of the Oriental Life Insurance company in Calcutta. Some of the
important milestones in the life insurance business in India are:
1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate
the
life insurance business.
1912: The Indian Life Assurance Companies Act enacted to enable the government to
collect statistical information about both life and non-life insurance business.
1938: Earlier legislation consolidated and amended to by the Insurance Act with the
objective of protecting the interests of the insuring public.
1956: 245 Indian and foreign insurers and provident societies taken over by the central
government and nationalized. LIC formed by an Act of parliament, viz. LIC Act, 1956,
with a capital contribution of Rs. 5 crore from the Government of India.
The general insurance business in India, on the other hand, can trace its roots to the
Triton
Insurance Company Ltd., the first general insurance company established in the year
1850
64
in Calcutta by the British. Some of the important milestones in the general insurance
business in India are:
1907: The Indian Mercantile Insurance Ltd. Set up, the first company to transact all
classes
of general insurance business.
1957: General Insurance Council, a wing of the Insurance Association of India, frames
a
code of conduct for ensuring fair conduct and sound business practices.
1968: The Insurance Act amended to regulate investments and set minimum solvency
margins and the tariff Advisory Committee set up.
1972: The General Insurance Business (Nationalization) Act, 1972 nationalized the
general
insurance business in India with effect from 1st January 1973.
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107 insurers amalgamated and grouped into four companies viz. the National Insurance
Company Ltd., the New India assurance Company Ltd., the Oriental Insurance
Company
Ltd. And the United India Insurance Company Ltd. GIC incorporated as a company.
Insurance sector reforms in 1993, Malhotra Committee, headed by former Finance
secretary and RBI Governor R.N. Malhotra, were formed to evaluate the Indian
insurance
industry and recommend its future direction. The Malhotra Committee was set up with
the
objective of completing the reforms initiated in the financial sector.
The reforms were aimed at “ creating a more efficient and competitive financial system
suitable for the requirements of the economy keeping in mind the structural changes
currently underway and recognizing that insurance is an important part of the overall
financial system where it was necessary to address the need for similar reforms…”
In 1994, the committee submitted the report and some of the key recommendations
included:
1. Structure
Government stake in insurance companies to be brought down to 50%. Government
should take over the holdings of GIC and its subsidiaries so that these subsidiaries can
act
as independent corporations. All the insurance companies should be given greater
freedom to operate.
2. Competition
65
Private Companies with a minimum paid up capital of Rs. 1bn should be allowed to
enter
the industry. No Company should deal in both Life and General Insurance through a
single
entity. Foreign companies may be allowed to enter the industry in collaboration with the
domestic companies. Postal Life Insurance should be allowed to operate in the rural
market.
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Only one state Level Life Insurance Company should be allowed to operate in each
state.
Regulatory Body The Insurance Act should be changed. An Insurance Regulatory body
should be set up. Controller of Insurance (Currently a part from the Finance Ministry)
should be made independent.
3. Investments
Mandatory Investments of LIC Life Fund in government securities to be reduced from
75%
to 50%. GIC and its subsidiaries are not to hold more than 5% in any company (There
current holdings to be brought down to this level over a period of time).
Customer Service LIC should pay interest on delays in payments beyond 30 days.
Insurance companies must be encouraged to set up unit linked pension plans.
Computerized of operations and updating of technology to be carried out in the
insurance
industry.
The Insurance Regulatory and Development Authority Reforms in the Insurance sector
were initiated with the passage of the IRDA Bill in Parliament in December 1999. The
IRDA
since its incorporation as a statutory body in April 2000 has fastidiously stuck to its
schedule of framing regulations and registering the private sector insurance companies.
Attracted by the huge untapped potential, many private players entered the market after
the Insurance bill was passed in late 2000. A majority of these were collaborations
between
an Indian company and a leading MNC insurance/financial services company.
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COMPANY INDIAN PARTNER FOREIGN INSURER AREA
66
Birla Sun Life Aditya Birla Group Sun Life, Canada Life
Om Kotak Kotak Mahindra Finance Old Mutual, South Africa Life
HDFC-Standard Life HDFC Standard Life, UK Life
Royal Sundaram Sundaram Finance Royal Sun, UK Life and
Non-Life
ICICI-Prudential ICICI Prudential, UK Life
Max New York Life Max India New York Life, USA Life
Tata-AIG Tata Group AIG, USA Life and
Non-Life
ING Vysya Vysya Bank ING Insurance,
Netherlands
Life
Aviva Dabur CGU Life, UK Life
MetLife India Jammu & Kashmir Bank MetLife, USA Life
Bajaj Allianz Bajaj Auto Allianz Life &
Non-Life
AMP Sanmar Sanmar Group AMP, Australia Life
SBI Life Insurance SBI Cardiff, France Life
Source: www.knowledgedigest.com
March-2008
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10. ICICI Prudential Growth Story
ICICI Prudential, a joint venture between ICICI Bank and Prudential UK, has been
around
ever since the private sector was allowed to sell life insurance policies. ICICI Prudential
began their operations in 12th December 2000 after receiving approval from Insurance
Regulatory Development Authority (IRDA).
Since then the tribe of life insurers has grown from 12 to 16, but ICICI still leads the
private
sector pack. With a portfolio of over 6.5 million policies, India's biggest private sector
life
insurer has not merely held on to its share but grown it; at the end of January 2008, the
firm commanded 29 per cent of the share owned by private sector players. Quite some
way below was Bajaj Allianz with 21 per cent, while State Bank of India came in third
with
10 per cent.
67
ICICI Prudential's premium income grew at about 100 per cent between March 2003
and
March 2007. Interestingly enough, the insurer started out with the traditional
endowment
products and was not the first to introduce the more popular Unit Linked Insurance
Policy
(Ulip): the credit for that goes to Birla Sunlife.
However, in the first full year of operations itself, it started offering Ulip policies and
was
selling more policies than anyone else. Today, Birla Sunlife doesn't find a place in the
top
five and players such as HDFC Standard Life, which were late to cotton on to Ulips,
may be
regretting it.
It wasn't just that ICICI Prudential rolled out Ulips quickly; the company also made
sure the
products were priced competitively. Compared with the competition, ICICI's upfront
charges have always been lower.
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With charges across the industry now converging at around 20 per cent of first year
premiums, ICICI has come up with a zero-load product. Another scheme that has been
introduced automatically balances the debt and equity components of the portfolio
every
quarter. Apart from this, ICICI Prudential has been quick off the block with retirement
solutions and the first to come up with health products.
If ICICI Prudential has managed to sign on 6.5 million policy holders, it is because the
company has built up a strong agent network, which brings in 60 per cent of the total
premium. Today the insurer has nearly 250,000 agents working for it, even though it
doesn't hand out the best commissions in the industry.
Bajaj Allianz's network is about 275,000- strong, while the public sector Life Insurance
Corporation boasts over a million agents. ICICI Prudential does not care about their
commission at the lower end compared with peers they compensate them by ensuring
that
customer do better volumes.
The insurer is also rolling out offices at a furious pace; by the end of March 2008, ICICI
Prudential will have around 1,500 offices from around 1,100 currently, of which nearly
900
68
will have come up in 2007-08. Bajaj Allianz, too, has around 1,000 offices as of now.
ICICI
Prudential targeting of 3,500 branches in five years.
The industry believes ICICI Prudential has a big advantage in that it can leverage the
customer base of its parent ICICI Bank. Bajaj Allianz, for instance, didn't have that
advantage. Banc assurance today fetches about 27 per cent of ICICI's premium; apart
from
ICICI Bank, the insurer sells through Bank of India, Federal Bank, South Indian Bank
and
some co-operative and rural banks.
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While ICICI Prudential has done well to stay at the top, the next seven years will
certainly
be more difficult than the last seven. Competition is getting keener - in the past couple
of
years, Bajaj Allianz is believed to have written more policies than Prudential. SBI Life
has a
stronger distribution now that it has signed on many more agents and newcomers like
Reliance (which took over AMP Sanmar) are growing at a fast pace. But the strong
growth
in the industry has surprised everyone.
March-2008
RAJNI KANT Page 46

ADDITIONAL READINGS & REFERENCES:
1. Ahluwalia Harjeet, IRDA to remind insurance companies over ad norms, Financial
Express, February 5, 2001.
2. Jagannathan Venkatachari, Private Players ‘Insure’ LIC’s Business, domain-b, July
10,
2001.
3. Jagannathan Venkatachari, Its war out there, or is it?, domain-b, October 18, 2001.
4. Srinivasan Lalitha, Putting a premium on marketing differentiation, Financial
Express,
November 21, 2001.
69
5. Shashidar Ajita, When ads get emotional, Catalyst – Business Line, January 17,
2002.
6. Vishwanath Rukmani, Menon. G. Shyam, Insure, be secure in the tinsel town motto,
Business Line, February 1, 2002.
7. Magazine Mukta, Max New York Life: Focusing on Internal Brand-Building,
Financial
Express, April 4, 2002.
8. Joseph Jaiboy, Life insurance with seasoning, Catalyst – Business Line, April 25,
2002.
9. Mohandas Poornima, Private Insurance Companies turn on the heat, Business Line,
June
9, 2002.
10. www.insuremagic.com
11. www.indiainfoline.com
12. www.bimaonline.com
13. www.expressindia.com
14. www.responsiveservice.com
15. www.agencyfaqs.com
16. www.knowledgedigest.com
17. Insurance Case Studies – ICMR
18. www. indiantelevision.com
19. The Hindu Business Line
20. Market Research in Insurance
March-2008
RAJNI KANT Page 47
(http://FreeOnlineSurveys.com/rendersurvey.asp?sid=nxwoh5j1nwm22gv411585)
Hello Sir/Madam,
I, RAJNI KANT, here to conduct a research on the T.V audience with respect to
advertisement put
up by LIFE INSURANCE COMPANIES. The purpose of this study is to understand,
capture,
assesses and evaluate the effectiveness of the advertisement.
We would appreciate if you could spend about 15 Min. and communicate your feelings,
expression,
comments and impact on you with respect to the content of the advertisement. Please
give your
honest opinion and be understood that this information collected will be purely
confidential and not
70
to be shared with any other entity in term of commercialization.
PERSONAL PROFILE
Name
Age
Occupation
email-id
Postal Address
Contact No.
Q1. Which media you use for information/entertainment?
TV
Radio
Newspaper
Internet
Q2. How often do you share interesting advertising with your family or friends?
Never
Rarely
Sometimes
Often
Very often
Q3. Have you seen any Life Insurance Product Ad?
Yes
No
Q4. On Which channel you watch mostly?
Zee T.V
Sony
Star
News Channel
Q5. If yes can you recall the content of the Ad?
Yes
No
Q6. Based on the features advertised, in that ad…... Rank the following
Strongly
Agree
Somewhat
Agree
Neither Somewhat
Disagree
Strongly
Disagree
The ad message is understandable.
71
The advertisement is believeable
The ad's message is relevant to me.
The benefits described in the ad are
believeable to me.
After viewing this ad, I would consider
purchasing the product.
This ad is much better than other ads for
products in this product category.
Q7. Which company ad you find mostly?
LIC India
HDFC Std. Life Insurance Co. Ltd.
Birla Sun Life Insurance Co. Ltd.
ICICI Prudential Life Insurance Co. Ltd.
Reliance Life Insurance Co. Ltd.
Q8. Do you think this ad has influence you to……………….
Buy the insurance policy
Recommend the Insurance Policy
Suggest the insurance Policy
would like to inform
Q9.Can you recall if your family members ever tried to influence you to buy/secure a
life insure
Policy from the insurance company of her interest?
Yes
No
Q10. Which of the Insurance Policy would you like to buy?
Life Plan
Health Plan
Child Plan
Retirement Plan
Q11. Other than T.V Where you saw Life insurance ad?
Internet
Newspaper
Holdings
Friends/Family
Radio
Q12. Please rank the following Life Insurance Company as per your liking
HDFC Standard Life Insurance
ICICI Prudential Life Insurance
Reliance Life Insurance
Tata AIG Insurance Solutions
72
Bajaj Allianz
The survey questionnaire was filled by the employee of Delhi Metro Railway, by on-
line procedure.
They are from various places of India working in DMRC,used to stay in officer’s flat.
The entire
respondents are from South region of Delhi only.
Sr.No. Name of the Customer Contact no. Postal Address
1 Mr. Daljeet Singh 9810598120
E-1, Metro Enclave, DMRC Officer's Colony,
41 Press Enclave Road, Sector 7, PushVihar ,
New Delhi-110017, India
2 Mr. C.P. Singh 9810848159
3 Mr. Vikash Rawat 9910484389
4 Mr. Sunil Kataria 9971598608
5 Mr. V. C. Gandhi 9971598574
6 Mr. A. S. Rao 9891173666
7 Mr. Gautam Kumar 9971598589
8 Mr. N. P. Singh 9810598148
9 Mr. Hari Ram 9891025582
73
10 Mr. R.C.Kulshrestha 9871130998
H-1, Metro Enclave, DMRC Officer's Colony,
11 Mr. Pramod Kumar 9810738914
12 Mr. Sanjeev Sharma 9212045886
13 Mr. Sudhir Mittal 9212038937
14 Mr. M.C. Gupta 9810160154
15 Mr. Alok Ranjan 9810998363
16 Mr. Santosh Kumar 9313083576 New Delhi-110017, India
17 Mr. Ramakant singh 9810520066
18 Mr. Arvind Kumar Tiwari 9810996743 New Delhi-110017, India
19 Mr. Chandan Bhatia 9212503676
74
20 Mr. Pankaj Saxena 9871374626
21 Mr. Saral Dwivedi 9910376097
22 Mr. Dharmendra Kumar 9910478524
23 Mr. Shiv Singh 9818250486
24 Mr. Kumar Keshav 9810854812
25 Mr. Pradeep Kharab 9910484377
26 Mr. Atul Gadgil 9818313973
27 Mr. Yashpal Mehta 9810848117
28 Mr. V.P. Srivastava 9971598614
29 Mr. Mukesh Thakur 9971598615
75
30 Mr. R.D. Gupta 9810079015
D-1, Metro Enclave, DMRC Officer's Colony,
31 Mr. Rajesh Kumar 9810803733 New Delhi-110017, India
32 Mr. S.K. Mittal 9871370955
33 Mrs. Kavita Verma 9971598602
34 Mr. V.C. Koshy 9212045898
35 Mr. Sulekh Jain 9891755653
36 Mr.Raj Kumar 9810045933
37 Mr. Ram Chandra 9868234788
38 Mr. T. N Mohan 9810598111
39 Mrs. Rita Kumar 9212503143
76
40 Mr. Arvind Bhatnagar 9971396200
41 Mrs. KumKum 9212701808
42 Mr. A. K. Gupta 9971396156
43 Mr. Puneet Garg 9891173666
44 mr. Om Tiwari 9911959557
45 Mr. O.h. Pandey 9818122922
46 Mr. S. K. Kappor 9810893392
47 Mr. Vineet Chaudhary 9871952378
48 Mr. Bhuneshwar Shah 9810998384
49 Mrs. Jyoti Ranjan 9818799684
77
50 Mrs. Laliy Malhotra 9810708120
Results for: Advertisment Effectiveness Servey
1) Q1. Which media you mostly use for information/entertainment?
Percentage Responses
TeleVision 42.0 21
Newspaper 36.0 18
Internet 14.0 7
Radio 8.0 4
Total responses: 50
2) Q2. How often do you share interesting advertising with your family or
friends?
Never 8.0 4
Rarely 28.0 14
Sometimes 52.0 26
Often 8.0 4
Very often 4.0 2
Total responses: 50
3) Q3. Have you saw any Life Insurance Product Ad?
Yes 96.0% 48
No 4.0% 2
Total responses: 50
4) Q4. On Which channel you saw Insurance ad mostly?
Zee T.V 14.0 7
Sony 26.0 13
Star 4.0 2
News Channel 56.0 28
Total responses: 50
5) Q5. Which company ad you find mostly? Rank Them....
View Results Page 1 of 4
http://freeonlinesurveys.com/viewresults.asp?surveyid=414824&print=1 3/29/2008
Average Score Responses
Life Insurance Corporation of India 1.22 / 5 50
HDFC Std. Life Insurance Co. Ltd. 2.84 / 5 50
Birla Sun Life Insurance Co. Ltd. 3.96 / 5 50
78
ICICI Pru. Life Insurance Co. Ltd. 2.16 / 5 50
Reliance Life Insurance Co. Ltd. 4.82 / 5 50
4.82 / 5
6) Q6. Can you recall the content of the Ad of any life insurance
company?
Yes 94.0% 47
No 6.0% 3
Total responses: 50
7) Q7.Based on the features advertised in that ad...
1
Strongly
Agree
2
Somewhat
Agree
3
Neither
4
Somewhat
Disagree
5
Strongly
Disagree
Responses Average
Score
The ad message is understandable. 15
(30.00%)
31
(62.00%)
1
(2.00%) 2 (4.00%) 1
(2.00%) 50
1.86 / 5
(37.20%)
The advertisement is believeable. 1
(2.00%)
21
(42.00%)
26
79
(52.00%) 1 (2.00%) 1
(2.00%) 50
2.60 / 5
(52.00%)
The ad's message is relevant to me. 3
(6.00%)
12
(24.00%)
26
(52.00%) 8 (16.00%) 1
(2.00%) 50
2.84 / 5
(56.80%)
The benefits described in the ad are believeable to
me.
2
(4.00%)
23
(46.00%)
12
(24.00%)
12
(24.00%)
1
(2.00%) 50
2.74 / 5
(54.80%)
After viewing this ad, I would consider purchasing
the product.
3
(6.00%)
14
(28.00%)
19
(38.00%) 9 (18.00%) 5
(10.00%) 50
2.98 / 5
(59.60%)
This ad is much better than other ads for products in
this product category.
80
1
(2.00%)
19
(38.00%)
13
(26.00%)
13
(26.00%)
4
(8.00%) 50
3.00 / 5
(60.00%)
2.67 / 5
(53.40%)
8) Q8. Do you think this ad has influence you to……………….
Buy the insurance policy 10.0 5
Recommend the Insurance Policy 40.0 20
Suggest the insurance Policy 42.0 21
would like to inform 8.0 4
Total responses: 50
9) Q9. Before buying a product do you pay attention to the Brand Name?
Yes 80.0% 40
No 20.0% 10
Total responses: 50
10) Q10. Which of the Insurance Policy would you like to buy?
Life Plan 1.66 / 4 50
Health Plan 2.36 / 4 50
Child Plan 2.28 / 4 50
Retirement Plan 3.70 / 4 50
3.70 / 4
11) Q11. Other than T.V Where you saw Life insurance ad?
Internet 2.14 / 5 50
Newspaper 1.36 / 5 50
Holdings 2.78 / 5 50
81
Friends/Family 4.10 / 5 50
Radio 4.62 / 5 50
4.62 / 5
12) Q12. Please rank the following Life Insurance Company as per your
liking.
HDFC Standard Life Insurance 1.96 / 5 50
ICICI Prudential Life Insurance 1.14 / 5 50
Reliance Life Insurance 3.30 / 5 50
Tata AIG Insurance 3.90 / 5 50
Bajaj Allianz 4.70 / 5 50
4.70 / 5
13) Please Mention Your Detail here...........
ADVERTISMENT CODE BY IRDA
Every Insurer or Intermediary or Insurance Agent Shall –
1. Have a compliance officer, whose name and official position in the organization shall
be communicated to the Authority, and he shall be responsible to oversee the
advertising program;
2. Establish and maintain a system of control over the content, form, and method of
dissemination of all advertisements concerning its policies.
3. Maintain an advertising register at its corporate office which must include:
� A specimen of every advertisement disseminated, or issued or a record of
any broadcast or telecast, etc.;
� A notation attached to each advertisement indicating the manner, extent of
distribution and form number of any policy advertised.
� Maintain a specimen of all advertisements for a minimum period of three
years.
� File a copy of each advertisement with the Authority as soon as it is first
issued, together with information: an identifying number for the
advertisement;
� The form number(s) of the policy(ies) advertised and when the product/s were
approved by the Authority;
� A description of the advertisement and how it is used.
� The method or media used for dissemination of the advertisement.
� File a certificate of compliance with their annual statement stating that, to the
best of its knowledge, advertisements disseminated by the insurer or by its
82
intermediaries during the preceding year have complied with the provisions
of these regulations and the advertisement code as stated in regulation 12.
� The advertisement register shall be subject to inspection and review by the
Authority for content, context, prominence and position of required
disclosures, omissions of required information, etc.
Changes In Advertisement -
Any change in an advertisement would be considered a new advertisement.
1. All the provisions of regulation 3 shall apply to an advertisement referred to in sub
regulation (i).
2. The Authority shall be informed at the time of filing the advertisement the extent of
change the original advertisement Insurance company advertisements.
3. Every insurance company shall be required to prominently disclose in the
advertisement and that part of the advertisement that is required to be returned to
the company or insurance intermediary or insurance agent by a prospect or an
insured the full particulars of the insurance company, and not merely any trade
name or monogram or logo.
4. Where benefits are more than briefly described, the form number of the policy and
the type of coverage shall be disclosed fully.
Source: www.bimaonline.com
*Executive, Corporate Strategy Group, Satyam Computer Services Ltd.
**Correspondence Address: G-6, Aditya Apartments, Durga Nagar Colony,
Punjugutta,Hyderabad-500082.
E-mail: wadekargaurav@gmail.com
IMPACT: Marketing on Society Vs Society on Marketing
Gaurav Wadekar*,**
Introduction
Marketing has long been used by firms to position their products or services in the
minds of the
customers. But marketing has remained one tool that not only uses the traits of the
society to
tailor their products but has also become a major contributor to society, in terms of
molding its
mind set and bringing a sense of sensibility. Of course, it cannot be ignored that
inappropriate
Marketing has also led to undesirable impact on society.
Also, there is increasing competition for the hearts and minds of the different markets
being
appealed to. When marketing tries to influence how and what people buy, Social
Marketing tries
to influence how they think, feel and act.
83
This paper, titled “Impact: Marketing on Society Vs Society on Marketing”, shall
attempt to shed
light on this correlation between Marketing and Society.
The correlation between marketing and society
Does this thesis hold true and if it does, is there any method by which it can be
proved?
To begin answering this question, let’s consider a few definitions.
Marketing is defined in various ways by different people. The most suitable to the
present context
is “all the activities involved in moving products and services from the source to
the end
user, including advertising, sales, packaging, promotion and printingi”. The most
critical
entity implied by this definition is ‘end user’.
The definition of society suitable to this context is “Society is made up of people,
groups,
networks, institutions, organizations and systems. These aspects of society may
include
local, national and international patterns of relationships. People belong to
informal and
formal groups, and within and between these groups there are patterns of
interactionsii.”
The most critical entity implied by this definition is ‘people’.
Correlation is a synonym for association or relationship between variables. In this case,
Marketing and Society are two variables, while ‘end user’ and ‘people’ are the
correlating factors.
In order to devise a method to prove this correlation, we shall consider a set of
parameters,
examples and case studies in the later sections of the paper.
Question 1: Why is it necessary to evaluate the impact of society on marketing?
For any firm to form its marketing strategy, it is
necessary to discover unfulfilled customer needs
and bring market products that satisfy those needs.
The process of doing so can be modeled in a
sequence of steps: situation analysis to identify
opportunities, strategy formulation for a value
proposition, tactical decision making, plan
implementation and result monitoring (refer Fig 1)
The first stage in this process is very critical as a
thorough analysis of situation in which the firm
84
finds itself, serves as the basis for identifying
opportunities to satisfy unfulfilled customer needs.
In addition to identifying the customer needs, the
firm must understand its capabilities and forces of
the environment in which it is operating.
Situation analysis
Marketing strategy
Marketing mix decision
Implementation and control
Fig 1: Forming a Marketing Strategy
Part VI – Consumer Markets & Marketing
International Marketing Conference on Marketing & Society, 8-10 April, 2007, IIMK
564
Thus, the situation analysis is an analysis of the external environment and the internal
forces of
the firm itself. The external environment can be described in terms of macro-
environmental
factors that broadly affect many firms and micro-environmental factors, closely related
to the
specific situation of the firm.
Figure 2 suggests some frameworks for Situation Analysis.
Question 2: Why is it necessary to evaluate the impact of marketing on society?
There are two reasons why it becomes necessary to evaluate the impact of marketing on
society:
One, to get feedback/results of the marketing strategy that was implemented and
second, to assess
the contribution to society.
The first reason is directly related to Return on Investment (RoI) as well as Assessment
and
Realignment towards target achievement. For example, by monitoring the results of
marketing
strategy the firm can adjust its marketing mix if it finds that the market has changed its
attributes.
Secondly, organizations make profit by using the human resources as the backbone.
Employees
spend a life time in companies to make them profitable. It becomes the company’s
liability to
give back to the society. This means that all the activities the organization takes,
including the
marketing strategy should consider the impact on society.
85
A closer look
As the co-relation between marketing and society is established, here is a set of
parameters,
examples and case studies that support the point that marketing and society has a
complimentary
nature.
The following table will showcase different parameters and examples to strengthen the
fact that
the marketing and society impact each other.
Fig 2: Frameworks that can be used for Situation Analysis
• 5C Analysis – company, customers, competitors, collaborators, climate
• PEST Analysis – for macro-environmental political, economic, societal, and
technological factors.
• SWOT analysis – strengths, weaknesses, opportunities, and threats – for the internal
and external situation.
PEST analysis can be viewed as equivalent to the “climate” factor of the 5C
framework.
The climate factor in the 5 C framework considers the following factors:
• Political and regulatory environment – governmental policies and regulations that
affect the market
• Economic environment – business cycle, inflation rate, interest rates, and other
macroeconomic issues
• Social/Cultural environment – society’s trends and fashions
• Technological environment – new knowledge that makes possible new ways of
satisfying needs; the impact of technology on the demand for existing products.
In PEST analysis, S factor includes:
• Demographics
• Class structure
• Education
• Culture (gender roles, etc.)
• Entrepreneurial spirit
• Attitudes (health, environmental consciousness, etc.)
• Leisure interests
Sr.
No.
Type of
segmentation
Parameter Sub
parameters
Impact of marketing on society Impact of society on marketing
86
1 Demographic
segmentation
Age Thumbs up advertisement which said “grow up to
Thumbs Up”, urged children to prefer it to get into
the grown up segment, when the Ad intended to urge
the grown ups to prefer Thumbs Up
ICICI Debit cards for children, especially
caters to the children age group, keeping
in view the growng number of parents
maintaing a fixed monthly account for
their kids
Family size
and life cycle
Children and
early
adulthood
TV, video games, etc are leading to reduced interest
of children in physical games, book reading etc,
hampering growth. Job site promotions increased
frequent job changes, leading to a change in concept
of staying with the same company for long
“Definitely male” slogan of Pulsar which
created an increase in buying among men
of this age group, who prefer a Macho
feeling
Pre-Family -
Adults
married
without
children
Easily available housing loans leading to buying of
houses in early stages of life
“Ready to Eat food” have targeted
majorly the working couples who do not
find the time to cook food
Family - One
or more
children
Easy availability of education loans have made it
common for families to send their kids abroad for
87
higher studies. Tourism industry promotions have led
to increase in domestic as well as international
customers, leading to improvement in work life
balance
Insurance companies have targeted
families that need to plan for their
children’s future
Late - Adults
whose
children have
left home
Chit funds which created a hype and attracted people
to invest their savings to make easy money, had a
drastic fall leading to many facing losses
HDFC Life insurance ad “na sar jhuka
hai kabhi aur na jukhega kabhi” targets
the aged segment that demands monetary
independence in their old age
Social
class/income
Premium
segment
Due to the emergence of a number of products
symbolizing status, a large number of people from
the premium segment prefer only branded
accessories, apparels etc., due to emerging branded
security service providers, this segment has become
more security conscious
The luxury cars like Rolls Royce and
Mercedes are targeted at the prestige and
status of the premium segment
Middle
segment
Air Deccan’s low cost airlines made traveling by air
more convenient and affordable, and hence more
common
Small Cars like Alto, Wagon-R, etc have
been targeted at the middle class people
who cannot afford a luxury car but would
need a small sized car for the entire
88
family
Lower
segment,
Reliance cell phone technology, which made mobile
phones available at very low prices, has made the
“Nirma” washing powder was targeted at
the lower segment. Over time they have
product accessible to the common man ; Wal-Mart’s
news of entry into India has created a furore among
shopkeepers as its wholesale prices shall eliminate
them from the market
come up with many such products in this
segment which generates more revenue
than any other segment
2 Geodemographic
segmentation
Rural areas eChapaul of ITC helped farmers in a big way who
were otherwise on verge of suicide
Cheaper PCs are being introduced, which
are aimed at people from rural areas who
would otherwise not be able to afford a
PC
Urban areas Easily available housing loans leading to scarcity of
space in big cities
Interior Designers utilize structures and
plans that require minimal space and
area, thereby targeting the urban areas
where there is dearth of living space
3 Benefit
segmentation
and behavioral
segmentation
Benefit
segmentation
Due to availability of standardized packaged drinking
water, the level of personal satisfaction of people
regarding hygiene has increased
Fair and Handsome, surrogate
advertisement (Wills, McDowell’s, etc.)
Behavioral
89
segmentation
Frequent users Extensive promotion of Colgate has made it a
synonym to toothpaste
Fairness soaps, have targeted the frequent
users of soap who would otherwise not
use a fairness cream
Occasional
Users
Brufen – advertised for frequent use, but had
negative impact on health
Points on credit cards urge occasional
users to increase usage ad hence increase
purchases
Non users Due to the entry of hair softeners in the retail market,
which are affordable and easily available, it has been
observed that women who were earlier not users of
any such products have become regular users. Only
because products like Fair and Handsome, Hair gel,
people who were not using, also started using them
The advertisements that spread awareness
on usage of condoms to prevent AIDS,
have been targeted on the Non-Users who
find it hesitating even to buy these
products
4 Psychographics
segmentation
'young
aspiring'
Rang de Basanti, adv. of WWE created lot of
negative impact on youth leading to deaths, fair and
lovely adv is indirectly promoting that fair women
are attractive
Institutes providing coaching to budding
student appearing for entrance exams,
have used career consulting as a means of
differentiating themselves
‘young fogey’ Extensive distribution of Hollywood movies have
changed the outlook/mindset of this segment with
respect to their thinking, living, etc.
Job sites have attempted to move this
90
segment, who needs a change of job and
hence lifestyle
567
The examples mentioned above describe two phenomena. One is when marketing and
society has
a visible and substantial impact on each other. The other is when marketing or society
unintentionally impacts each other.
Whether visible and substantial or unintentional, the truth is there is a cyclical impact
on the
product to market process. From the time the product is launched and introduced to the
market,
till the product remains there, the impact of the product on marketing and society can be
seen in a
cyclical fashion as shown in Fig 3.
Two case studies found below highlight the two phenomena as mentioned. The first
case study
“EMRI: Impact of marketing on society” discusses how EMRI as a method of social
marketing
visibly impact society. This case study proves that there is a direct relationship that
governs
marketing and society. Then the second case study, “Globalization: Impact of society
on
marketing” discusses how globalization has unintentionally affected marketing in a big
way.
EMRI: Impact of marketing on society
EMRI is a home grown success story offering a glimmer of hope in the emergency
management
scenario in India, currently in the state of Andhra Pradesh. Envisaging a comprehensive
coverage
of Medical, Police and Fire emergences through Public-Private Partnership, the
Government of
Andhra Pradesh recognized Emergency Management and Research Institute (EMRI), a
not-forprofit
institute as the nodal agency to provide comprehensive emergency management
services,
by an MOU signed on April 2, 2005.
Just as in other parts of the world, a centralized emergency management system is
helping save
91
lives on a day to day basis, in AP, the number 108 is used as the centralized helpline for
Medical,
Police and Fire emergencies. The Government of India allotted this three-digit number
– 108-
which is accessible from both fixed and mobile phones and is toll free across the state
for all
emergencies. B.Ramalinga Raju, Founder and Chairman of Satyam Computer Services
Ltd, and
his brothers have provided the initial funding for setting up EMRI. The Governing body
of EMRI
has provided thought leadership.
Here the intention of EMRI was not to market Satyam but indirectly, as EMRI is
associated
closely with Satyam, it is helping Satyam in gaining mind share of the society. Neither
did
Satyam intend to start EMRI as a tool for marketing, but it is unintentionally
symbolizing social
marketing here. This is increasing the brand recall of Satyam within the regions of
operations.
Moreover, EMRI has plans to increase its operations and to be recognized as the
pioneer in
emergency services in India. Also, considering the fact that in just 365 days of
operation, 108 has
helped save over 7,661 lives and responded to over 4.37 million calls, shows the
amount of
impact it has created in the society.
Marketing Society
Fig3: Impact of Product/Service
568
By setting up such an organization, Satyam has done lot of internal marketing as it
provides
opportunities to its associates to work for social cause and hence motivates them.
Satyam’s AICS
framework mentions society as one of the pillars in the organization’s success.
This shows that how marketing, internal as well as external has a visible and substantial
impact
on society. The point to be noted here, at the cost of repetition is that the intention was
not to
92
market the organization, but indirectly it has done that, and which has a created a huge
wave in
society.
Globalization: Impact of society on marketing
Globalization usually refers to the declining significance of national borders, brought
about by
increased trade, the spread of information technology, cross-border financial flows, and
cultural
transfers. Several forces have contributed to this phenomenon.
• Reduction in trade barriers
• Technology transfers, rapid spread of computers, internet
• Accelerated economic integration through private cross-border financial flows
• Cultural transfers that have given consumers "global tastes"
These forces have led to a tremendous increase in the demand for better goods and
services, and
hence the companies have an opportunity to expand in other countries. To ensure global
success,
a marketing strategy that could cater to different markets, culture, societies is
compulsory.
Though globalization is affecting society, diversity continues to exist.
Considering these diversities, it is necessary that organizations customize the marketing
strategy
according to each target country. There are many such examples where productization
or
customization was inevitable to cater to a particular country for certain companies.
• Diet Coke is named Light Coke in Japan--dieting was not well regarded
• Red circle trademark was unpopular in Asia due to its resemblance of Japanese flag
• Packaging of products is more important in some countries than in U.S.
• Advertisement featuring man and dog failed in Africa--dogs were not seem as man’s
best
friend
• Cologne ad featuring a man “attacked” by women failed in Africa
• Food demonstration did well in Chinese stores but not in Korean ones--older women
were
insulted by being “taught” by younger representatives
• MacDonald’s customized its products to cater to the Indian market
All the above examples show that there is an unintentional impact of society, culture on
marketing. As it can be seen from these examples that how organizations had to tweak
their
93
marketing mix to ensure successful launch and life cycle of their products or services to
cater to a
particular segment of society.
Conclusion
As shown in figure 4, we can consider a product or service being placed on the line and
its impact
on marketing or society can be defined by its closeness to either of the points.
Moreover, the marketing and society impact each other in a cyclical fashion. When a
product is
launched in the market, its effect on society is monitored and depending on the intensity
of this
effect the marketing mix is revisited.
Marketing Society
Fig 4
569
While it is always intended that the marketing strategy should cause an effect on the
society, it is
necessary to ensure that this effect is always on the positive side considering the larger
picture. It
is very important to consider that anything that forms a part of the marketing mix of a
particular
product or service is going to cause an upswing or downswing in the way society thinks
and acts.
Keeping this in mind and bearing the fact that after all the society has to be considered
before
devising the marketing strategy, an organization should appreciate the cyclical behavior
of
marketing and society.
With this, it can be concluded that as much as marketing impacts society, society also
has an
important role to play in marketing strategies and that both are complimentary in nature.
References
http://www.web-source.net/internet_marketing/22734.html
http://www.eventuring.org/
http://www.netmba.com/marketing/process/
http://en.wikipedia.org/wiki/Corporate_social_responsibility
i www.garyeverhart.com/glossary_of_advertising_terms.htm
ii members.ozemail.com.au/~mghslib/subjects/society%20culture/Glossary.htm
94

Comparative Study of Services Provided by LIC ICICI Prudential Life Insurance

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RIMT-Maharaja Aggrasen Engineering College

1.1 Executive Summary ……………………………………………5

2. Finding & Results

• Advantage of life insurance..……………………………….27

Management Thesis is a part of the MBA Program. The objective of a

The various life insurers entered India:-

1. HDFC Standard Life Insurance Company Ltd.

2. Max New York Life Insurance Co. Ltd.

3. ICICI Prudential Life Insurance Company Ltd.

4. Kotak Mahindra Old Mutual Life Insurance Limited.

5. Birla Sun Life Insurance Company Ltd.

6. Tata AIG Life Insurance Company Ltd.

7. SBI Life Insurance Company Limited.

8. ING Vysya Life Insurance Company Private Limited.

9. Met life India Insurance Company Ltd.

10. Royal Sundaram Life Insurance Company Limited.

11. Aviva Life Insurance Co. India Pvt. Ltd.

12. Sahara India Insurance Company Ltd.

13. Shriram Life Insurance Company

15. Reliance Life Insurance Company Limited.

16. Bharti AXA Life Insurance Company Limited.

 ICICI Prudential Life Insurance

Thus, this project objectives is as follows

insurance Company limited with Life insurance Corporation of India.

Scope of the study:

private & government insurance players in insurance industry.

insurance Company limited and Life insurance Corporation of India insurance

insurance company limited & Life insurance corporation of India)

Finding & Results

“Insurance is a contract between two parties whereby one party called

ICICI Prudential Life Insurance

This we hope to achieve by:

We do believe that we are on the threshold of an exciting new opportunity, where we

Mr. K.V. Kamath, Chairman

Ms. Shikha Sharma, Managing Director & CEO

LIC of India is one of India’s leading financial institutions, offering complete

Date of Establishment 1 Sep. 1956

T.S. Vijayan - Chairman

Product Details of ICICI Prudential Life Insurance Products:-

• Life Time Gold

Komal Jeevan - Plan No. 159

Endowment with Profits - Plan no.14

Group Insurance Policy

Joint Life Policy

Jeevan Saathi - Plan no.89

Money Back Policy

Money Back with Profit - Plan no.75

Pension Plans or Annuities

New Jeevan Dhara - Plan no.148

Term Assurance - Plan no.43

Convertible Term Assurance - Plan no.58

Whole Life Policy

Whole Life with Profits - Plan no.2

PENSION PLAN PRODUCTS OF LIC INDIA & ITS FEATURES

• LIC of India retirement income plan

What is the LIC of India retirement income plan?

How old do you have to be to avail of this plan?”

At what intervals can you pay premiums?”

What are the advantages of this plan?”

Other products are:

a. Lack of good services.