Research Report

Submitted in partial fulfillment of the requirement
For the degree
Master of Business Administration
Session : 2012-2014
Under the Supervisor:- Submitted by
(Faculty Member) MBA IV Semester
F.M.T., Varanasi Roll No.-
ARIS!AN"RA #.$. !%&&'$'
BA(AN-B''$A, VARANASI-221002
I DEEPAK KUMAR hereby declare that the research report entitled “ROLE
INSURANCE PRODUCT” Submitted in partial fulfillment of the requirement
for the Award of the degree of “MBA ” It is the original wor! of mine and not
submitted for the award of any degree or similar title or pri"e
Any accomplishment requires the effort of many people# and this
wor! is no different
I hereby e$press my heartiest gratitude to my pro%ect guide# Mr.
Abhishek Sir# &Faculty member), for gi'ing me an opportunity to
complete my pro%ect report under his supporti'e guidance I am 'ery
grateful to him for his 'aluable suggestion and for sharing with me
his past e$perience related to the pro%ect
I am also 'ery than!ful to our (irector of “Institute Of
Manaement sciences! "aranasi, Dr.. #.$.sharma for his
generous cooperation and guidance without which it would not ha'e
been possible for me to complete my wor!
I also than!full to all my faculty members# all my friends and the
people who are directly or indirectly related to pro%ect and helped me
out for completing my wor! successfully
* Introduction
** Industry +rofile
*, -ompany +rofile
*) +roduct +rofile
, Research Methodology
,* Research Ob%ecti'es
,, Research (esign
,) Sample (esign
,. Methods of (ata -ollection
,/ (ata Analysis
) Analysis and 0inding
. 1imitations
/ -onclusions and Recommendations
$ha%ter &
&.& Ob)ecti*es 'f the Stu(y
&.+ Primary #esearch
&., Sec'n(ary #esearch
&.- .imitati'ns 'f the Stu(y
&./ Me(ia In(ustry 0 O*er*ie1
1.1 Objectives of the study
 Mar!eting Strategies adopted by insurance companies in India
 2o !now about the companies strategies for choosing outdoor media
for insurance product
 2o !now about the consumer awareness about the outdoor media
 2o !now the consumer3s satisfaction about the outdoor media for
insurance product
Research Methodology
2he methodology adopted for this pro%ect in'ol'es +rimary data and Secondary data
1.2 Primary Data
• A one4to4one communication was carried out with the concerned officials of
the organi"ation through a drafted and finali"ed questionnaire
• Information regarding the 'arious media 'ehicles is obtained from the ad
agency and the ma!ers of Outdoors
1.3 Secondary Data
Secondary data is collected from 'arious Maga"ines on Outdoor Ad'ertising#
2e$tboo!s and Internet
1.4 Limitations of the study
• 2he pro%ect had to be completed within a 'ery short span of time
• 2hus# mar!et study could not be carried out
• 5ot much of first hand information could be gathered from agency as most
of them outsource Outdoors
Concept of Marketing
2here are many definitions of mar!eting 2he better definitions are focused upon
customer orientation and satisfaction of customer needs74
According to Philip Kotler - Mar!eting is the social process by which
indi'iduals and groups obtain what they need and want through creating and
e$changing products and 'alue with others*
According to P.F Drucker - Mar!eting is not only much broader than selling# it
is not a speciali"ed acti'ity at all It encompasses the entire business It is the
whole business seen from the point of 'iew of the final result# that is# from the
customer8s point of 'iew -oncern and responsibility for mar!eting must
therefore permeate all areas of the enterprise,
The Production Concept of Marketing
2he production concept pre'ailed from the time of the industrial re'olution until
the early *9,:8s 2he production concept was the idea that a firm should focus on
those products that it could produce most efficiently and that the creation of a
supply of low4cost products would in and of itself creates the demand for the
products 2he !ey questions that a firm would as! before producing a product
At the time# the production concept wor!ed fairly well because the goods that
were produced were largely those of basic necessity and there was a relati'ely
high le'el of unfulfilled demand =irtually e'erything that could be produced was
sold easily by a sales team whose %ob it was simply to e$ecute transactions at a
price determined by the cost of production 2he production concept pre'ailed into
the late *9,:8s
The Sales Concept of Marketing
By the early *9):8s howe'er# mass production had become commonplace#
competition had increased# and there was little unfulfilled demand Around this
time# firms began to practice the sales concept &or selling concept># under which
companies not only would produce the products# but also would try to con'ince
customers to buy them through ad'ertising and personal selling Before
producing a product# the !ey questions were)
2he sales concept paid little attention to whether the product actually was needed?
the goal simply was to beat the competition to the sale with little regard to
customer satisfaction Mar!eting was a function that was performed after the
product was de'eloped and produced# and many people came to associate
mar!eting with hard selling @'en today# many people use the word Amar!etingA
when they really mean sales
Modern Concept of Marketing
Old concept
#ro)it ma*imi+ation t,ro-., sale.
#ro/-0t1 ser2i0e
New concept
#ro/-0t1 Ser2i0e
I/enti)3 0-stomer4s Nee/
!-stomer 5el)are
#ro)it t,ro-., 0-stomer satis)a0tion
Fig . I -1 epre!ent! " #$!
4 P`S :
B +roduct planning
B +ricing polices
B +hysical distribution
B +romotion policies
2he mar!eting mi$ is the combination of mar!eting acti'ities that an organi"ation
engages in so as to best meet the needs of its targeted mar!et 2he Insurance
business deals in selling ser'ices and therefore due weight age in the formation of
mar!eting mi$ for the Insurance business is needed 2he mar!eting mi$ includes
sub4mi$es of the ; +Cs of mar!eting ie the product# its price# place# promotion#
people# process D physical attraction 2he abo'e mentioned ; +Cs can be used for
mar!eting of Insurance products# in the following manner7
PRODUCT A product means what we produce If we produce goods# it means
tangible product and when we produce or generate ser'ices# it means intangible
ser'ice product A product is both what a seller has to sell and a buyer has to buy
2hus# an Insurance company sells ser'ices and therefore ser'ices are their
product In India# the 1ife Insurance -orporation of India &1I-> and the Eeneral
Insurance -orporation &EI-> are the two leading companies offering insurance
ser'ices to the users Apart from offering life insurance policies# they also offer
underwriting and consulting ser'ices Fhen a person or an organi"ation buys an
Insurance policy from the insurance company# he not only buys a policy# but
along with it the assistance and ad'ice of the agent# the prestige of the insurance
company and the facilities of claims and compensation It is natural that the
users e$pect a reasonable return for their in'estment and the insurance companies
want to ma$imi"e their profitability Gence# while deciding the product portfolio
or the product4mi$# the ser'ices or the schemes should be moti'ational 2he
Eroup Insurance scheme is required to be promoted# the -rop Insurance is
required to be e$panded and the new schemes and policies for the 'illagers or the
rural population are to be included 2he 1ife Insurance -orporation has
intensified efforts to promote urban sa'ings# but as far as rural sa'ings are
concerned# it is not that impressi'e 2he introduction of Rural -areer Agents
Scheme has been found instrumental in inducing the rural prospects but the
process is at infant stage and requires more professional e$cellence 2he policy
ma!ers are required to acti'ate the efforts It would be prudent that the 1I- is
allowed to pursue a policy of direct in'estment for rural de'elopment In'estment
in Eo'ernment securities should be stopped and the in'estment should be
channeli"ed in pri'ate sector for ma$imi"ing profits In short# the formulation of
product4mi$ should be in the face of inno'ati'e product strategy Fhile initiating
the inno'ati'e process it is necessary to ta!e into consideration the strategies
adopted by pri'ate and foreign insurance companies
PRICING In the insurance business the pricing decisions are concerned with7
B 2he premium charged against the policies#
B Interest charged for defaulting the payment of premium and credit facility# and
B -ommission charged for underwriting and consultancy acti'ities
Fith a 'iew of influencing the target mar!et or prospects the formulation of
pricing strategy becomes significant In a de'eloping country li!e India where the
disposable income in the hands of prospects is low# the pricing decision also
go'erns the transformation of potential policyholders into actual policyholders
2he strategies may be high or low pricing !eeping in 'iew the le'el or standard of
customers or the policyholders 2he pricing in insurance is in the form of
premium rates 2he three main factors used for determining the premium rates
under a life insurance plan are mortality# e$pense and interest 2he premium rates
are re'ised if there are any significant
changes in any of these factors
H Mortality&deaths in a particular area>7
Fhen deciding upon the pricing strategy the a'erage rate of mortality is one of
the main considerations In a country li!e South Africa the threat to life is 'ery
important as it is played by host of diseases
H Expenses:
2he cost of processing# commission to agents# reinsurance companies as well as
registration are all incorporated into the cost of installments and premium sum
and forms the integral part of the pricing strategy
H Interest:
2he rate of interest is one of the ma%or factors which determines peopleCs
willingness to in'est in insurance +eople would not be willing to put their funds
to in'est in insurance business if the interest rates pro'ided by the ban!s or other
financial instruments are much greater than the percei'ed returns from the
insurance premiums
PROMOTION 2he insurance ser'ices depend on effecti'e promotional
measures In a country li!e India# the rate of illiteracy is 'ery high and the rural
economy has dominance in the national economy It is essential to ha'e both
personal and impersonal promotion strategies In promoting insurance business#
the agents and the rural career agents play an important role (ue attention should
be gi'en in selecting the promotional tools for agents and rural career agents and
e'en for the branch managers and front line staff 2hey also ha'e to be gi'en
proper training in order to create impulse buying
Ad'ertising and +ublicity# organi"ation of conferences and seminars# incenti'e to
policyholders are impersonal communication Arranging Iittens# e$hibitions#
participation in fairs and festi'als# rural wall paintings and publicity dri'e through
the mobile publicity 'an units would be effecti'e in creating the impulse buying
and the rural prospects would be easily transformed into actual policyholders
(istribution is a !ey determinant of success for all insurance companies 2oday#
the nationali"ed insurers ha'e a large reach and presence in India Building a
distribution networ! is 'ery e$pensi'e and time consuming If the insurers are
willing to ta!e ad'antage of IndiaCs large population and reach a profitable mass
of customers# then new distribution a'enues and alliances will be necessary
Initially insurance was loo!ed upon as a comple$ product with a high ad'ice and
ser'ice component Buyers prefer a face4to4face interaction and they place a high
premium on brand names and reliability As the awareness increases# the product
becomes simpler and they become off4the4shelf commodity products 2oday#
'arious intermediaries# not necessarily insurance companies# are selling
insurance 0or e$ample# in JI# retailer li!e Mar!s D Spencer sells insurance
products 2he financial ser'ices industries ha'e successfully used remote
distribution channels such as telephone or internet so as to reach more customers#
a'oid intermediaries# bring down o'erheads and increase profitability A good
e$ample is JI insurer (irect 1ine It relied on telephone sales and low pricing
2oday# it is one of the largest motor insurance operators 2echnology will not
replace a distribution networ! though it will offer ad'antages li!e better customer
ser'ice 0inance companies and ban!s can emerge as an attracti'e distribution
channel for insurance in India In 5etherlands# financial ser'ices firms pro'ide an
entire range of products including ban! accounts# motor# home and life insurance
and pensions In 0rance# half of the life insurance sales are made through ban!s
In India also# ban!s hope to ma$imi"e e$pensi'e e$isting networ!s by selling a
range of products It is anticipated that rather than formal ownership
arrangements# a loose networ! of alliance between insurers and ban!s will
emerge# popularly !nown as banc assurance Another inno'ati'e distribution
channel that could be used are the non4financial organi"ations 0or an e$ample#
insurance for consumer items li!e fridge and 2= can be offered at the point of
sale 2his increases the li!elihood of insurance sales Alliances with
manufacturers or retailers of consumer goods will be possible and insurance can
be one of the 'arious incenti'es offered
Concept of IRDA:
IR(A is Insurance Regulatory (e'elopment Authority# that has been set up to
protect the interests of the policy holders# to regulate# promote and ensure orderly
growth of the insurance industry and for matters connected therewith or
incidental there to
KL2his definition has been ta!en from the IRDA websiteM.
Insurance Regulatory and (e'elopment Authority 2o protect the interests of the
policyholders Insurance Regulatory D (e'elopment Authority is regulatory and
de'elopment authority under Eo'ernment of India in order to protect the interests
of the policyholders and to regulate# promote and ensure orderly growth of the
insurance industry It is basically a ten members8 team comprising of a -hairman#
fi'e full time members and four part4time members# all appointed by Eo'ernment
of India 2his organi"ation came into being in *999 after the bill of IR(A was
passed in the Indian parliament
Role of IRDA in insurance sector
Regulari"ing the acti'ities of the insurance companies# which were permitted to
establish their business in India? besides more number of our citi"ens be brought
into the net of life insurance co'er 2hen to create healthy competition among
insurance companies of both general and life# besides regulating them
B specifying the percentage of premium income of the insurer to finance schemes
for promoting and regulating professional organi"ations referred to in clause &f>?
B specifying the percentage of life insurance business and general insurance
business to be underta!en by the insurer in the rural or social sector? and
B e$ercising such other powers as may be prescribed
Impact of IRDA On Indian Insurance Sector
2he creation of IR(A has brought re'olutionary changes in the Insurance sector
In last *: years of its establishment the insurance sector has seen tremendous
growth Fhen IR(A came into being? only players in the insurance industry were
1ife Insurance -orporation of India &1I-> and Eeneral Insurance -orporation of
India &EI-># howe'er in last decade ,) new players ha'e emerged in the filed of
insurance 2he IR(A also successfully deals with any discrepancy in the
insurance sector
Regulators Insurance is a federal sub%ect in India 2he primary legislation that
deals with insurance business in India is7 Insurance Act# *9)<# and Insurance
Regulatory D (e'elopment Authority Act# *999Insurance Industry has
ombudsmen in *, cities @ach ombudsman is empowered to redress customer
grie'ances in respect of insurance contracts on personal lines where the insured
amount is less than Rs ,: la!es# in accordance with the Ombudsmen Scheme
Insurance Regulatory & Development Authority (IRDA)
IR(A was constituted by an act of parliament 2he Authority is a ten member
team consisting of7
&a> a -hairman &b> fi'e whole4time members &c> four part4time members
&*> Sub%ect to the pro'isions of Section *. of IR(A Act# *999 and any other law
for the time being in force# the Authority shall ha'e the duty to regulate# promote
and ensure orderly growth of the insurance business and re4insurance business
&,> Fithout pre%udice to the generality of the pro'isions contained in sub4section
&*># the powers and functions of the Authority shall include# 4
&a> Issue to the applicant a certificate of registration# renew# modify# withdraw#
suspend or cancel such registration?
&b> protection of the interests of the policy holders in matters concerning
assigning of policy# nomination by policy holders# insurable interest# settlement
of insurance claim# surrender 'alue of policy and other terms and conditions of
contracts of insurance?
&c> Specifying requisite qualifications# code of conduct and practical training for
intermediary or insurance intermediaries and agents?
&d> Specifying the code of conduct for sur'eyors and loss assessors?
&e> +romoting efficiency in the conduct of insurance business?
&f> +romoting and regulating professional organi"ations connected with the
insurance and re4insurance business?
&g> 1e'ying fees and other charges for carrying out the purposes of this Act?
&h> calling for information from# underta!ing inspection of# conducting enquiries
and in'estigations including audit of the insurers# intermediaries# insurance
intermediaries and other organi"ations connected with the insurance business?
&i> control and regulation of the rates# ad'antages# terms and conditions that may
be offered by insurers in respect of general insurance business not so controlled
and regulated by the 2ariff Ad'isory -ommittee under section 6.J of the
Insurance Act# *9)< &. of *9)<>?
2he insurance contract is a legal document that spells out the co'erage# features#
conditions and limitations of an insurance policy It is critical that you read the
contract and as! questions if you don8t understand the co'erage Nou don8t want
to pay for the insurance and then find out that what you thought was co'ered isn8t
included Insurance terminology you should !now7
Once the insurance has been accepted and is in place# it is called AboundA 2he
process of being bound is called the binding process
A person or company that accepts the ris! of loss and compensates the insured in
the e'ent of loss in e$change for a premium or payment 2his is usually an
insurance company
2he person or company transferring the ris! of loss to a third party through a
contractual agreement &insurance policy> 2his is the person or entity who will be
compensated for loss by an insurer under the terms of the insurance contract
Insurance Rider/ Endorsement
An attachment to an insurance policy that alters the policy8s co'erage or terms
Insurance Umbrella Policy
Fhen insurance co'erage is insufficient# an umbrella policy may be purchased to
co'er losses abo'e the limit of an underlying policy or policies# such as
homeowners and auto insurance Fhile it applies to losses o'er the dollar amount
in the underlying policies# terms of co'erage are sometimes broader than those of
underlying policies
Insurable Interest
In order to insure something or someone# the insured must pro'ide proof that the
loss will ha'e a genuine economic impact in the e'ent the loss occurs Fithout an
insurable interest# insurers will not co'er the loss It is worth noting that for
property insurance policies# an insurable interest must e$ist during the
underwriting process and at the time of loss Gowe'er# unli!e with property
insurance# with life insurance# an insurable interest must e$ist at the time of
purchase only
Nature of life insurance contract
B Jnilateral
B An O Aleotory
B -onditional
B -ontract of adhesion
B -ontract of certain amount
B @ssential general contractA /
General Nature of a contract
B Offer D Acceptance
B -onsideration
B -ompetence of parties
B 1egality of ob%ect
B 0ree consent of the partiesA 6
2G@ I5SJRA5-@ A-2# *9)< A-2 5O . O0 *9)<
L,6th 0ebruary# *9)<M
An Act to consolidate and amend the law relating to the business of insurance
FG@R@AS it is e$pedient to consolidate and amend the law relating to the
business of insurance? it is hereby enacted as follows744
+AR2 I
*KL&,> It e$tends to the whole of India ,KKKM &)> It shall come into force on such
date )K as the -entral Eo'ernment may# by notification in the Official Ea"ette#
appoint in this behalf
, (efinitions In this Act# unless there is anything repugnant in the sub%ect or
&*> AactuaryA means an actuary possessing such qualifications as may be
prescribed ?
.KL&,> Apolicy4holderA includes a person to whom the whole of the interest of the
policy4holder in the policy is assigned once and for all# but does not include an
assignee thereof whose interest in the policy is defensible or is for the time being
sub%ect to any condition ?M
/KL&)> Aappro'ed securitiesA means44
&i> Eo'ernment securities and other securities charged on the re'enues of the
-entral Eo'ernment or of the Eo'ernment of a 6KKK State or guaranteed fully as
regards principal and interest by the -entral Eo'ernment# or the Eo'ernment of
any 6K State?
@$tended to Eoa# (aman and (iu with modifications# by Reg *, of *96,# s ) D
2he Act comes into force in +ondicherry on **:*96) 'ide Reg ; of *96)# s )
and Sch I
@$tended to and brought into force in (adra and 5agar Ga'eli &wef
*;6/> by Reg 6 of *96)# s , D Sch I
@$tended to 1accadi'e# Minicoy and Amindi'i Islands &wef
**:*96;>7 'ide Reg < of *96/# s ) D Sch
@$tended to and brought into force in the State of Si!!im &wef
*;*9;/> 'ide 5otifn 5o SO ,;.&@># dated ,.6*9;/ LSee footnote * for this
&ii> debentures or other securities for money issued under the authority of any
-entral Act or Act of a State 1egislature by or on behalf of a port trust or
municipal corporation or city impro'ement trust in any presidency4town ?
&iii> shares of a corporation established by law and guaranteed fully by the
-entral Eo'ernment or the Eo'ernment of a *K State as to the repayment of the
principal and the payment of di'idend ?
&i'> securities issued or guaranteed fully as regards principal and interest by the
Eo'ernment of any +art B State and specified as appro'ed securities for the
purposes of this Act by the -entral Eo'ernment by notification in the Official
Ea"ette ? and &'> sub%ect to the limitations contained in the pro'iso hereto#
securities guaranteed fully as regards principal and interest by a +ro'incial
Eo'ernment in +a!istan or charged on the re'enues of any part of that (ominion#
and debentures or other securities for money issued by or on behalf of the trustees
of the port of Iarachi 7
+ro'ided that securities or debentures specified in item &'> shall be recogni"ed as
appro'ed securities only for such purposes and for such period and sub%ect to
such conditions as may be prescribed?M
,KL@$planation44 In sub4clauses &i> and &iii># AEo'ernment of a StateA in relation
to any period before the *st 5o'ember# *9/6# means the Eo'ernment of a +art A
)KL&.> AauditorA means a person qualified under the -hartered Accountants Act#
*9.9 &)< of *9.9># to act as an auditor of companies?M .KL&.A> Aban!ing
companyA and AcompanyA shall ha'e the meanings respecti'ely assigned to them
in clauses &c> and &d> of sub4section &*> of section / of the Ban!ing -ompanies
Act# *9.9 &*: of *9.9>/K?M
&/> A-ertifiedA in relation to any copy or translation of a document required to be
furnished by or on behalf of
LSee footnote , for this sectionM
*KLan insurer or a pro'ident society as defined in +art IIIM means certified by a
principal officer of ,KLsuch insurer or pro'ident societyM to be a true copy or a
correct translation# as the case may be?
)KL&/A> Achief agentA means a person who# not being a salaried employee of an
insurer# in consideration of any commission44
&i> +erforms any administrati'e and organi"ing functions for the insurer# and &ii>
procures life insurance business for the insurer by employing or causing to be
employed insurance agents on behalf of the insurer?
&/B> A-ontroller of InsuranceA or A-ontrollerA means the officer appointed by the
-entral Eo'ernment to perform the duties of the -ontroller of Insurance under
this Act?M
&6> A-ourtA means the principal -i'il -ourt of original %urisdiction in a district#
and includes the Gigh -ourt in e$ercise of its ordinary original ci'il %urisdiction?
)KL&6A> Afire insurance businessA means the business of effecting# otherwise than
incidentally to some other class of insurance business# contracts of insurance
against loss by or incidental to fire or other occurrence customarily included
2G@ 1I0@ I5SJRA5-@ -OR+ORA2IO5 A-2# *9/6 A-2 5O )* O0
*9/6L*<th Pune# *9/6M
An Act to pro'ide for the nationali"ation of life insurance business in India by
transferring all such business to a -orporation established for the purpose and to
pro'ide for the regulation and control of the business of the -orporation and for
matters connected therewith or incidental thereto
B@ it enacted by +arliament in the Se'enth Near of the Republic of India as
-GA+2@R I
* Short title and commencement &*> 2his Act may be called the 1ife Insurance
-orporation Act# *9/6
&,> It shall come into force on such date *K as the -entral Eo'ernment may# by
notification in the Official Ea"ette# appoint
, (efinitions In this Act# unless the conte$t otherwise requires#44
&*> AAppointed dayA means the date on which the -orporation is established
under section )?
&,> A-omposite insurerA means an insurer carrying on in addition to controlled
business any other !ind of insurance business?
&)> A-ontrolled businessA means44
&i> in the case of any insurer specified in sub4clause &a> &ii> or sub4clause &b> of
clause &9> of section , of the Insurance Act and carrying on life insurance
&a> All his business# if he carries on no other class of insurance business? &b> All
the business appertaining to his life insurance business# if he carries on any other
class of insurance business also?
@$tended to and brought into force in (adra and 5agar Ga'eli &wef *;6/> by
Reg 6 of *96)# s , D Sch I
@$tended to Eoa# (aman and (ui by Reg ** of *96)# s ) D sch
&with modifications>
@$tended to the Jnion territory of +ondicherry by Act ,6 of *96<# s ) and
* *st Puly# *9/6# see Ea"ette of India# *9/6# @$traordinary# +t
II# Sec ) p */)*
,.6 &c> all his business# if his certificate of registration under the Insurance Act in
respect of general insurance business stands wholly cancelled for a period of
more than si$ months on the *9th day of Panuary# *9/6?
&ii> In the case of any other insurer specified in clause &9> of section , of the
Insurance Act and carrying on life insurance business44
&a> All his business in India# if he carries on no other class of insurance business
in India?
&b> All the business appertaining to his life insurance business in India# if he
carries on any other class of insurance business also in India?
&c> all his business in India# if his certificate of registration under the Insurance
Act in respect of general insurance business in India stands wholly cancelled for a
period of more than si$ months on the *9th day of Panuary# *9/6?
@$planation4An insurer is said to carry on no class of insurance business other
than life insurance business# if# in addition to life insurance business# he carries
on only capital redemption business or annuity certain business or both? and the
e$pression Abusiness appertaining to his life insurance businessA in sub4
-lauses &i> and &ii> shall be construed accordingly?
&iii> in the case of a pro'ident society# as defined in section 6/ of the Insurance
Act# all its business?
&i'> in the case of the -entral Eo'ernment or a State Eo'ernment# all life
insurance business carried on by it# sub%ect to the e$ceptions specified in section
&.> A-orporationA means the 1ife Insurance -orporation of India established
under section )?
&/> AInsurance ActA means the Insurance Act# *9)< &. of *9)<>?
&6> AInsurerA means an insurer as defined in the Insurance Act who carries on life
insurance business in India and includes the Eo'ernment and a pro'ident society
as defined in section 6/ of the Insurance Act?
&;> AMemberA means a member of the -orporation?
&<> A+rescribedA means prescribed by rules made under this Act?
,.; &9> A2ribunalA means a 2ribunal constituted under section *; and ha'ing
%urisdiction in respect of any matter under the rules made under this Act?
&*:> All other words and e$pressions used herein bu
An introduction to insurance
Fith the insurance sector in full bloom# today# it would not be wrong to say that
in the present mar!et scenario# there is an insurance a'ailable for %ust about
anything and e'erything Fith e'en a bourgeois family man opting for 'arious
insurance schemes# the question today is not whether you ha'e insurance or not
Instead it is# whether you need a particular insurance or notQ Insurance is no
doubt an area of immense importance in regards to the financial and monetary
sectors of e'ery indi'idual 2he whole idea behind Insurance as a financial
security tool was to design something which could secure the financial well4being
of an indi'idual as well as hisRher dependents# in case heRshe undergoes an
unforeseen loss 2hese losses could be related to health# property# assets or life in
general Insurance helps people manage monetary ris!s and losses related to
in'estments# liabilities for wrong financial actions# and ris!s for inability to earn
income at any stage of life Insurance generally co'ers all these ris!s
Media Industry Overvie!
Advertising is one of the integral elements of the marketing process, just as
sales, product design, promotion and customer service are. Fe might loo! at
ad'ertising as the mass selling of a product Fhere is ad'ertising seen or heardQ In
the media Fhat business is an ad'ertising agency inQ In the ad'ertising creation and
placement business Fhat business is the media inQ 2he ad'ertising deli'ery
+rofessionals throughout the entertainment D media industries can help de'elop
stories to capture and mo'e audiences in ways many did not !now were possible O
while drastically enhancing the collaborati'e process from concept to successful
release Studios# networ!s# and production companies can capture# de'elop# and
successfully mar!et the best material possible while drastically cutting in'estments
on ineffecti'e to outright misguided story and pro%ect de'elopment O with more
consistent results @'eryone will ha'e a common creati'e language
In the past decade information technology has undergone substantial changes 2he
Internet# digital tele'ision# 'irtual reality are only a few e$amples The convergence
of different types of media forms (e.g. computers, satellites, networks, etc...)
have and are currently changing society into what many people refer to as the,
"Digital Age." 2hese de'elopments are not solely dependent on technological
factors as much of the popular AhypeA asserts Accordingly we will e$amine new
media from cultural# historical# legal# and psychological perspecti'es
A-yberspace and -ommunicationA encompasses a wide array of issues and topics
Accordingly# we will co'er numerous areas with a focus on the Internet# and the
Forld Fide Feb Gowe'er# it is difficult to distinguish between con'ergent media
systems and forms often labeled Anew mediaA 4 in contrast to the AlegacyA media
routinely studied in telecommunications programs 2hus# on occasion we will
discuss other new media technologies including# streamed digital broadcasting#
networ!ing# film inno'ations# and other emerging media forms
The media industry has unique qualities that distinguish it from other
industries. One is its pri'ileged legal position under the 0irst Amendment guarantee
of freedom of the press# ma!ing the media e$empt from go'ernment restraints and
o'ersight as compared with other businesses
Many critics ha'e e$pressed dissatisfaction with how the mass media industry has
li'ed up to such responsibility Media co'erage of political elections has been
critici"ed for focusing on campaign tactics and personal foibles of political
candidates rather than substanti'e issues 5ewspapers and tele'ision news media
programs ha'e been critici"ed for simply co'ering the latest murder or sensational
crime story rather than substanti'ely in'estigating the causes of and solutions to
The media and Information Technology (IT) scenario has undergone a radical
change in the recent past in India as it has happened elsewhere in the world.
2he change is both quantitati'e as well as qualitati'e It is also obser'ed that the gap
between in'ention of new technology in the Festern world and its use in India is
also reducing day by day @arlier technologies too! comparati'ely longer time to
de'elop roots in the country But now days# soon after a new technology is
de'eloped anywhere in the world# it starts getting used in India too
2a!e any technology# whether it is electronic# print or information technologies# the
growth has been 'ery rapid in the last decade and a half It will be seen in later part
of the article how the indi'idual technologies ha'e grown during this period 2he
growth also contributes to e$pansion of the reach as well as access It is also found
that the growth is not necessarily restricted only to urban areas as it used to happen
in the past It spreads to smaller towns and rural areas also in reasonable time Apart
from the rapid growth# the change is also facilitated largely due to the increased user
friendliness of the technology
2he go'ernment has been creating a more facilitati'e regulatory regime 2he
emphasis is now on encouraging e$pansion and reducing the obstacles that come in
the way Some of the rules and regulations ha'e been changing fast In the earlier
days# the change in the rules used to be 'ery slow and tedious# but o'er the years the
situation is impro'ing 2he socio4political atmosphere is more open and this greatly
supports both the changes in rules and regulations as well as efficient
implementation of the policies 2he whole growth process has ob'iously become
possible because the technologies ha'e become more affordable and also because the
society has started understanding the importance of new communication
2he speed and type of changes ha'e 'aried from technology to technology
a 2he Broadcast Media7 2his will include radio# tele'ision and related media?
b 2he +rint Media? and
c 2elecommunications7 2his will include telephones# pagers# cellars# computers
and the Internet
It is seen that some of the characteristics traditionally associated with a particular
medium are undergoing changes 2he distinctions between different media are
getting slowly blurred It is no longer possible to say that a medium is strictly a print
medium Ob'iously these newspapers and maga"ines are no longer Cprint media3 It
also used to be belie'ed that there is a certain amount of permanency or lac! of
permanency of the output of a medium Because once they are transmitted# it is not
possible to ha'e a re4loo! at them Gowe'er# the in'ention and ease of recording has
changed the scenario It is possible to record any tele'ision programme at any time
and watch it one8s con'enience Similarly# the print medium considered being
more permanent than the ethereal` TV or radio services. Gowe'er# if the
newspaper is only on the Internet# it can no longer ha'e that characteristic Of course#
it is always possible to download and ta!e a hard copy and this again ma!e it into a
print or permanent medium 2he biggest change# howe'er# has come through the
marriage of different technologies 2he greatest contribution has come from the
personal computer
India is the leader in the number of film productions It produces the highest number
of films in the world e'ery year India produces on an a'erage about <:: feature
films per year In *996 there were *,#<6; -inema halls with a seating capacity of ;)
per *::: population 2he films are produced in many languages by a large number of
indi'idual producers and production houses Indian cinema has yielded about ,<#:::
feature films and thousands of documentary short films so far 2he first e$posure to
motion pictures# which India recei'ed# was in *<96# when the 1umiere Brothers8
8-inematographe8 un'eiled si$ soundless short films in Mumbai &called Bombay> On
May )# *9*) at the -oronation -inema# Bombay# (hundira% Eo'ind +hal!e# was
responsible for the production of India8s first fully indigenous silent feature film
8Ra%a Garishchandra8 that heralded the birth of the Indian film industry 2he first
Indian tal!ie 8Alam Ara8 produced by the Imperial 0ilm -ompany and directed by
Ardeshir Irani was released in *9)* 2he thirties are recognised as the decade of
social protest in the history of Indian cinema 2he film industry is the ma%or
entertainment industry It also pro'ides a 'ery substantial support to the tele'ision
channels A large number of programmes are feature films based 4 songs# dances#
and a good deal of prime time is ta!en up by full4length feature films
2he newspaper industry has traditionally functioned as a free press in India 2he
freedom of e$pression and independence for print media has been ensured in the
Indian constitution and the newspapers "ealously guard this independence It is of
significance to note that there is no pre4censorship for newspapers Gowe'er# there
are certain laws of the land# which apply to the newspaper industry 2here is +ress
-ouncil with quasi4%udiciary powers
2he Eu%arati (aily Bombay Samachar# started in *<,, A(# is the oldest e$isting
newspaper in Asia Apart from @nglish and *< principal languages enumerated in the
@ighth Schedule of the -onstitution# newspapers are published in <* other languages#
mostly Indian languages and a few foreign languages 2he total number of
newspapers and periodicals as of (ecember *99/ was );#,/. 2he total number of
(aily 5ewspapers in India is .#,)6
Media Process
Once the advertising is created, the focus shifts to how best we can take it the
people. Fho are the people we need to reach# how can we reach them#
where and when can we deli'er our ads to them# how often do we need
to reach them# and what will it cost us to do soQ
⇒ The Media Strategy
Media Strategy refers to a specific course of action with the media It describes how
the media planner will achie'e the stated media ob%ecti'es 2here are . strategic
decisions to be ta!en by the media planner7
• Fhich media will be usedQ
• Gow often each will be usedQ
• Gow much of each will be usedQ
• Fhen will they be usedQ
2he media planner has to ta!e the following factors when de'eloping a media
• Scope of the target audience
• -onsumer purchase patterns
• Mechanical considerations
⇒ The Media Planning
2he Media +lanning process starts with loo!ing at what ob%ecti'es the media plans
need to achie'e# and what !ind of media budgets are a'ailable to do so 2he first step
in media planning ie to match the media with the target group 2he better the match
of the target with the media# the less will be the money wasted on deli'ering the
messages to the consumers for whom the product was intended to 2his is !nown as
2he second step in media planning process will be the selection of the “Media Mi$”
or the most optimal combination of media It is important for the media planner to
distinguish between media types# 'ehicles and media units
⇒ Media Buying
Media planning also in'ol'es allocating media budgets to media types Budgets may
be allocated based on the importance of media types and/or geographic regions.
Eeographic allocation usually mar!eting ob%ecti'es
R@EIO5 SA1@S +O2@52IA1 BJ(E@2 EOA1
&based on sales potential
SOJ2G ,/S Rs /: la!hs
@AS2 */S Rs ): la!hs
F@S2 ):S Rs 6: la!hs
5OR2G *:S Rs ,: la!hs
Media buying may be defined as the process of e$ecuting a schedule of desired
media weights for brands at a lowest possible cost 2he media buying process can be
di'ided into , broad stages7
4 (eciding what to buy
4 Setting out to buy at the most competiti'e rates
2he life insurance industry in India has a great potential to de'elop It can de'elop
only if it accepts the problems and challenges and ma!es use of the significant
opportunities a'ailable in the country +articularly# the mar!eting strategy of
insurance companies ultimately leads to a change aimed at merger and consolidation#
the efficiency of the insurance system and also wider and efficient co'erage
Mar!eting of life insurance ser'ice is considered a difficult area to be seen It is also
a more challenging phenomenon in India 2he insurance selling process is required
to be transparent and create educati'e 'alue to the prospects Only a professional
approach to the mar!eting programs will ser'e the purpose of dealing positi'ely with
the consumers
Insurance is a business of sacrifice 2his is mainly due to the fact that the sacrifice of
the customer by way of paying premium is real and present 2he benefits of
insurance are reco'ered after a long period and hence it is not attracti'e to people
Insurance is li!e sand when it is bought and gold when it is reali"ed Ei'en a choice#
people would postpone the decision to buy insurance as they do not reali"e its benefit
at the time it is offered 2hey ha'e to be con'inced*
Insurance mar!eting must be considered as a positi'e trend by the consumers since it
de'elops the habit of buying insurance products to protect the health of their families
and also their assets at a future date 2he strategies of insurance mar!eting are to be
designed in such a way that they attract the different sections of the society by
identifying the need of the
*5eelam -Eulati# C+rinciples of Insurance Management3# @$cel Boo!s# 5ew (elhi#
,::;# p,/;,/.
prospects and also the designing of the suitability of the product 2he mar!eting
strategies should be designed for ma$imi"ation of insurance gains to the customers
rather than minimi"ation of insurance ris! It needs larger in'estment of both time
and effort besides talented mar!eting personnel as it is a difficult %ob to underta!e
2he mar!eting of life insurance is uni'ersally considered a matter of highest priority
at all le'els in different institutions 5ew mar!eting methods occupy a significant
place among top management intelligentia 2hese include an aggregation of the
salesmanship of the mar!eting personnel and the professional approach to the
mar!eting problems by the top management It should contemplate the concept of
insurance positi'ely by con'incing the customers to ma!e their life happier Buying
insurance by a customer needs to be a matter of their longe'ity 2he insured will be
understood through mar!eting that life is not about how many years he li'es but
about how he li'es is of paramount importance
2here is no product differentiation in insurance business One company offers today
may be offered by some other company tomorrow 2o reduce the le'el of
competition among insurance companies# the insurers ha'e to stand efficiently in the
area of communicating their products early to the customers through insurance
2he liberali"ation of Indian life insurance sector has created many changes in the
mar!et place 2his results in massi'e inflow of foreign brands and also a
re'olutionary change in the consumer beha'ior 2hese changes require a mo'ement
of the insurance sector from production4dri'en mar!eting to the professional
mar!eting 2he mar!et de'elopment ta!en place by liberali"ation results in many
changes in the intermediary role of the distribution channels 2he insurance arena has
been shifted to a mar!et4 oriented en'ironment and hence the insurance system has
been ad%usted to ,//
the new changes and also ma%or challenges of insurance distribution 0ocus on the
distribution channel is an important pre4requisite to an efficient sale of insurance
2he Indian insurance industry has been strongly growing for the last few years 2o
ensure impro'ed penetration of insurance# the distribution system of insurance has to
be more focused And also the well established training and educational
organi"ations should play a significant role in educating and moti'ating people 2his
pro'ides good opportunities to impro'e the deli'ery mechanism and also tap the 'ast
mar!et Mar!eting requires intriguing creati'e implying updating !nowledge on the
mar!ets with global perspecti'e which calls for a'ailability of enough right data or
information at the hands of the operating offices It needs appropriate comprehension
of mar!ets,
Insurance selling should not be regarded as a mere act of selling insurance policies
But# it must be regarded by the policyholders as a habit of buying insurance policies
to protect the health and assets of their families at a later date Gence# the goal of
distribution management is to ma$imi"e sales# attract ma$imum mar!et share# tap
new mar!ets# find out the customer needs and preferences and abo'e all promote
customer satisfaction
(istribution of insurance products and efficient ser'ice deli'ery has been an
important element of insurance business 2he de'elopment ta!en place in the
insurance sector is made possible only with the efficient role played by the
distributors in deli'ering insurance products A significant feature of the complete
process of distribution and ser'ice deli'ery of insurance product is that the multiple
distribution channels ha'e yielded many ser'ice benefits not only to the company but
also to customers 2he process
,Satish S= C1ife Insurance Mar!eting O A +henomenon3# Southern @conomist#
0ebruary */# ,::9# p);,/6 of channel di'ersification and e$pansion has accelerated
in India since insurance liberali"ation Many insurers ha'e intensified their efforts
for establishing and de'eloping cost4efficient and result4oriented distribution
(ue to the emerging con'ergence and globali"ation# the entire insurance industry is
undergoing rapid changes 2he lower middle class customers are more concerned
with sa'ings and consequent ta$ planning and hence rely on insurance Bro!ers#
agents# direct agents and bancassurance offer good ser'ices to these customers 2he
rural and semi4urban customers are generally the a'erage wor!ing class population
2hey can afford to sa'e a little amount 2hey ha'e little !nowledge of insurance
Only agents can reach these customers
2he corporate customers and institutional in'estors are interested in liability
insurance# group insurance and healthcare insurance 2hey are largely situated in
metropolitan centers and cities 2hey required altogether a different distribution
strategy Most of these customers are cost4conscious and well4 informed -orporate
agents# bro!ers and direct mar!eting are ideally suitable to attract these customers
-onsequently from a single channel industry ie# the indi'idual agent# the industry#
at present# has embraced a few well established channels and continues to
e$periment with a few more In the light of se'ere competition amongst insurers# the
new distribution strategies require complete professionalism and fle$ibility towards
facing mar!eting challenges A well4 trained and plain4spea!ing distributor has the
ability to be the best brand ambassador for any insurance player Mar!et e$pansion#
consumer loyalty# consumer preferences and competition amongst life insurers will
initiate inno'ations in the distribution segment 2his ensures good capacities and
capabilities on the part of distributors so that there are no practices of mis4,/;
selling and misrepresentation of the facts Although there is discernible difference in
the mar!eting styles of the present day insurers# a great qualitati'e impro'ement is
yet to be percei'ed 2he mar!eting initiati'es of the new companies ha'e certainly
helped to enhance insurance awareness in the country)
Insurance is a business of !eeping people3s hopes# aspirations and e$pectations
through a life insurance contract It is more important for insurance companies to be
transparent at the time of selling 2he policy documents should be as simplified as
possible with minimal fine print.
2he distributor is the first line representati'e of the life insurance company and
assumes greater responsibility in initial underwriting of the policies 2he distributor
should understand the needs of the prospecti'e customer and recommend suitable
policy that satisfies his needs As a result# the business retention ratios will impro'e
and the persistency ratio will increase 2he distributor is well trained and equipped in
identifying properly the needs of the customers Ge requires to be well4'ersed in all
matters relating to his %ob for fa'our of a proper matching between the needs of the
customer and also the ser'ice deli'ery
A distributor is the 'ital lin! in the policy life cycle Gis role begins the time he starts
prospecting till settlement of claims A life insurance agent is the !ey distributor
Gowe'er# insurance bro!ers and other intermediaries also play a !ey role in this
process/ 2he insurers# at present# require immense distribution strength and
tremendous manpower to reach out to the present huge customer base a'ailable for
insurance ser'ice in our country 2he future of distribution for insurance products is
a Cbra'e new world3 and it will require
)(a'id -handrase!haran# “Mar!eting of 1ife Insurance O Ga'e 2hings Really
-hangedQ”# IR(A Pournal# May# ,::9# p*<
.An%ana Agarwal# C@mphasis on 2rust O Erie'ance Management in Insurance3#
IR(A Pournal# October# ,:**# p,<
/Baradhwa%# -1# CArresting the 2rends O 0rauds in Insurance Industry3# IR(A
Pournal# Pune# ,:**# p,9,/<
both courage and %udgment to lead an organi"ation into the rapidly unfolding realm
of possibilities6
2he insurance companies ha'e to concentrate mostly on non4 traditional and more
inno'ati'e channels and also multi4le'el deli'ery systems Jnder these systems# li!e
in the Fest# the customers can buy an insurance product from any ban!# mall# post
office# internet cafes# etc 2he distribution systems ha'e been influenced significantly
by cost pressures Besides# competition for sa'ing amounts of the consumers is also
intensifying An efficient and effecti'e distribution strategy for life insurance
products should also be mostly customer4centric It should represent both the
customer and the company goals
-ustomer retention mar!eting is a process whereby mar!eters loo! at building a long
term association with their customers 2his in'ol'es a continuous process of
interaction with the customer at any point of time It needs to understand the needs of
the customers and pro'ide products and ser'ices accordingly;
One of the ma%or challenges of insurance mar!eting is to identify which distribution
method fits best and suitable to the business 2he decisions relating to distribution
strategies must be made dependent upon what the other insurers are doing It is 'ery
common that e'ery business insurance prospect e$pects to recei'e customi"ed
ser'ice from his insurer But# busy agents can hardly afford any time or e$pense to
present an indi'iduali"ed proposal each time A little e$tra care and attention to some
often o'erloo!ed talents can fill this gap and guide the insurer close to the sale<
6-hari# =E “Insurance O A Re4loo! at the (istribution Strategy3# Insurance
-hronicle# March# ,::/# p)*
;2eena Ma!hi%a# CRetention Mar!eting O 2he Iey to Business +erformance3# 2he
Pournal of Insurance Institute of India# Mumbai# Panuary4Pune# ,::<# p//
<Shulman# Allen 1# C5ine ways to get personal when selling Business Insurance3#
Insurance -hronicle# March# ,::/# p.:,/9
Most of the pri'ate insurers are 'ery much trying for a right channel mi$ for reaching
the potential customers It is the distributor who ma!es the difference in terms of the
quality of ad'ice for choice of product# after4sale ser'ice and settlement of claims
2he distributors should become trusted financial ad'isors for the customers and
trusted associates for the insurers
2he new companies are loo!ing for well educated# !nowledgeable indi'iduals with
an interest in insurance mar!eting At present# insurance companies are mo'ing from
merely selling insurance to mar!eting an essential financial product 5ew players are
finding e$pensi'e and time4 consuming to bring up a distribution networ! of good
and cost effecti'e standards Jsage of alternate channels will help# to some e$tent#
bring down the costs of distribution and thus# benefit the customers and insurers
-hannel conflicts may arise in some cases But# those must be regulated to the best
ad'antage of the customer and the insurer 2he distribution strategy can3t be ta!en up
in isolation Ma%or elements li!e# the organi"ation structure# systems# processes#
employees# organi"ational cultures are to be ta!en care of by the insurer for
designing the distribution strategy 2he insurance companies consider this
distribution channel profitable due to low customer acquisition cost# quic!er reach to
untapped mar!ets# introduction of inno'ati'e products and administrati'e
con'enience and suitability 2he quality of ser'ice rendered by the distributor should
be made the !ey parameter for efficient distribution management and also
At present# insurance ad'ertisements ta!e up a lot of space in tele'ision or print
media 2he emphasis on insurance ad'ertising is on creati'e and accent on
awareness 2he communication in ad'ertising is modern# young# approachable and
con'eying the difficult product offering 2he ,6:
insurance selling acti'ity usually reaches a pea! around March and it needs to be
ta!en into account by the insurers in spending mar!eting budget on insurance
ad'ertising 2he 'isual is always more effecti'e and uni'ersal
2he I-I-I +rudential is the first pri'ate insurance company to recogni"e and use the
power of 2= ad'ertising with its CSindoor3 campaign in ,::* 2he retirement
solution campaign of the company with the tagline CRetire from wor! not life3 also
has attracted a good number of customers
SBI life has 6) per cent business coming from bancassurance Its ad'ertisements are
mostly confined towards saying people that they can buy insurance from the ban!
2heir ad'ertisements consist of branch merchandising It is more about point4of4
purchase type of ad'ertising 1I- has contemplated celebrity mar!eting O a segment
noted for the presence of high net worth indi'iduals 1ife insurance products ha'e
accounted for about << per cent of o'erall insurance ad'ertising e$penditure with
1ife Insurance -orporation topping the list of ad'ertisers

Media types for Advertising
2he opportunities for offering space and time to ad'ertisers ha'e mushroomed since
the early days of +ompeii when messages were car'ed out with a stylus on the sides
of buildings 2oday# a number of channels ha'e been accepted as ma%or ad'ertising
media The major ones available for advertising purpose are: newspaper,
magazines, radio, television, direct mail, outdoor displays and online
 2e1s%a%er :
5ewspapers come under the print media 2he characteristics of newspaper
ad'ertising are4 high co'erage# low cost# short lead time for placing ads# Ads can be
placed in interest sections# 1ow cost 2imely &current ads># -an be used for coupons#
Short life# -lutter 1ow attention4getting capabilities# +oor reproduction quality#
Selecti'e reader e$posure
 Maa3ines :
Maga"ines are also included under the print media 2he characteristics of
maga"ines are4segmentation potential# Tuality reproduction# Gigh information#
content 1onge'ity# Multiple readers# 1ong lead4time for ad placement# =isual only#
1ac! of fle$ibility
 #a(i':
It is a broadcasting media 2he characteristics of radio as an ad'ertising media are4
1ocal co'erage# 1ow cost# Gigh frequency# 0le$ible# 1ow production costs# Fell4
segmented audiences# Audio only# 1ow attention getting# 0leeting message
 4ele*isi'n:
It is also a broadcasting media 2he characteristics of this media are4 Mass co'erage#
Gigh reach# Gigh prestige# fa'orable image# 1ow cost per e$posure# Attention
getting# 1ow selecti'ity# Short message life Gigh absolute cost Gigh production
 Direct mail :
2he characteristics of this media are4 Gigh selecti'ity# Reader controls e$posure#
Gigh information content# Opportunities for repeat e$posures# Gigh costRcontact#
+oor image &%un! mail>
 Out(''r (is%lays:
2his media includes posters# neon signs# banners# hoardings# transit# s!y ad'ertising#
!ios!s# etc 2he characteristics of this media are4 Gigh co'erage# 1ocation specific#
Gigh repetition# @asily noticed# Short e$posure time requires short ad# +oor image#
1ocal restrictions
Online a(*ertisin:
2his includes Internet ad'ertising# ad'ertising on mobile phones &SMS ad'ertising>
etc 2he characteristics of this media are4 0le$ible 2imely &current ads># Reader
controls e$posure# Impact of media &sound# 'ideo# animation and so on># 1ow
attention getting# Selecti'e reader e$posure# +oor image
"uture of Outdoor #dvertisin$
2he si"e of the outdoor media industry in India is estimated to be about **S of the
total 3:/ media spends of Rs **#::: crores (ue to the fragmented nature of the
industry# there is no single audited figure of spends on outdoors
In terms of potential# the Indian outdoor industry is bigger than that in JI#
Eermany and the JS where the mar!et share is /,# ), and less than , percent
respecti'ely Additionally# with printing D site le'el impact enhancing inno'ations
gaining importance# the outdoor industry offers tremendous potential for growth
Retail D Multiple$ Space are the newer applications for this media
Outdoor ad'ertising has traditionally lagged behind other media 2his has made
outdoor planning and buying 'ery sub%ecti'e But there are some profound changes
on the an'ilUcrystal ga"ing into the future of outdoors and attempting to answer the
direction the medium is predicted to go# the medium is bound to recast itself in the
years to come D become an increasingly potent media 'ehicle
2he cornerstone of this hypothesis is that outdoor will become an increasingly
important element of the media mi$ O most certainly for some new age categories
li!e telecom# automobiles O both , wheelers and . wheelers# Insurance# durables and
this will dri'e media spends to increase to ,:S le'els from the current **S 2hese
high outdoor consuming categories will demand greater width D depth of outdoor
As affluence spreads into India3s hinterland# mar!eters will train their sights to find
focused and locali"ed media to supplement 'isibility As the mar!et demand led
change surges ahead across mar!ets large and small# the large towns will be the first
to fell the heat of mar!et and media saturation D media inflation 2his will throw up
interesting Clocalised3 opportunities for outdoor media practitioners in small and
mid4si"e towns Outdoors can lead this Clocalised3 media surge D attempt to match
the Cdemand3 led footprint
2oday “outdoor” includes an enormous selection of media display products
&billboards# transit# street furniture# and alternati'e outdoor media> 2he status of
outdoor has impro'ed as it is being repositioned from a limited# fragmented# price4
dri'en local medium to a powerful# cost4effecti'e# high reach# synergy medium
2oday the Indian ad'ertising scenario is as unpredictable as the British Feather# Nou
ne'er !now what3s ne$t but with little imagination# outdoor ad'ertising is an ideal
medium for achie'ing local reach# frequency and continuity on a 'ery limited
budget As a national and global medium# outdoor ad'ertising has achie'ed great
success In today3s growing ad'ertising industry each medium has created a place for
itself As each medium offers something better or different than other medium may R
may not offer# outdoor carries the message ,. hours with good geographical and
demographical fle$ibility which helps brea! linguistic barriers and helps to create an
impact on the precise target group
2oday outdoor is so popular that demand now e$ceeds supply# but such hurdles
would definitely be o'ercomed by a whole new generation of bu""ing ad'ertisers#
who will find out new outdoor tools with guaranteed inno'ation Fith the family
members wor!ing income le'els increasing their purchasing power also increases
Increase in education standards in the country means more people are responsi'e to
the ad'ertising stimulus and hence there are greater needs of ad'ertising As regards
product lifecycle# it is ob'ious that in future also# firms will need to concentrate in
growth areas to achie'e or maintain leadership position Outdoor ad'ertising is
bound to grow with the e$tension in the national highways (ue to increase in the
number of automobiles in use# the dispersion of population to the suburbs will lead to
greater mobility of the people 2he more people tra'el# the more people are e$posed
to this medium
0uture of Indian ad'ertising# if spo!en about is definitely growing as technology and
right infrastructure of a country is directly related to each other
Fe also ha'e to accept the fact that Indoor ad'ertising especially 2ele'ision is
growing at a 'ery rapid rate# but outdoor is going to definitely catch up# as today
Indian brands are going more and more local? India is a country with great di'ersity
in -ulture from 'illage to 'illage so ad'ertisers ha'e to face a lot of linguistic
barriers 2his need compared to all other mediums is best catered by outdoors
2echnologically too outdoors ad'ertising has started to mo'e from painted hoardings
to digitally =inyl +rinted Goardings in the urban areas
*> E@5(@R
a> MA1@ b> 0@MA1@
MA1@ ;:
0@MA1@ ):
1.70% of the respondents were male.
a> MARRI@( b> J5MARRI@(
MARRI@( 6/
J5MARRI@( )/
2.657 o) t,e res8on/ents 5ere MARRI'".
(@ER@@ &MBAR-A>
ERA(JA2@ ./
+OS2 ERA(JA2@ */
J5(@R ERA(JA2@R*,

OR @TJI=A1@52
9.457 o) t,e res8on/ents 5ere $ra/-ate.
a> EO=2 S@R=I-@S b> +=2 POB
Eo't S@R=I-@S ):
+=2 POB
4.427 o) t,e res8on/ents ('R' "%IN$ #VT. :%B.
5) Do You have any insurance policy ?
Nes //
5o ./
5.557 o) t,e res8on/ents ,a/ Ins-ran0e #oli03.
6) If Yes Which companies ?
+ublic Sector 6/
+ri'ate Sector )/
6.657 o) t,e res8on/ents ,a/ ins-ran0e 8oli03 o) #-;li0 Se0tor.
7) From where you get the information about the insurance plan?
+rint ,:
@lectronic ,/
Outdoor )/
Any other ,:
7.957 o) t,e res8on/ents .et in)ormation )rom %-t/oor Me/ia.
8)According to you which the most attractive media for the insurance
product/plan ?
+rint )/
@lectronic */
Outdoor ,/
Any other ,/
<.957 o) t,e res8on/ents sa3 t,at 8rint me/ia is most attra0ti2e me/ia )or ins-ran0e
9) Do you find the advertisement of your insurance company outside your
Nes 6/
5o )/
9.657 o) t,e res8on/ents )in/ t,e a/2ertisement o) ins-ran0e 8ro/-0t o-tsi/e t,eir
,o-se or o))i0e.
*:> If yes# where Q
0le$ )/
Banner )/
Fall +ainting ,:
Any other *:
10.957 o) t,e res8on/ents see t,e o-t/oor a/. t,ro-., Fle* = Banner.
**> Is the information on the outdoor media is enough to ta!e decision about the
insurance plan Q
Nes 6/
5o )/
2.657 o) t,e res8on/ents sa3 t,at o-t/oor a/. is eno-., to ta>e t,e /e0ision a;o-t
ins-ran0e 8lan.
 Insurance companies are adopting all the elements of promotion to
promote their producys
 -ompanies choose media in accordance with the different segments
of customers
 Most of the customers are aware of the about the outdoor media
 Most of the customers are satisfied with the outdoor media for
insurance product
%ear Sir&Madam'
I DEEPAK KUMAR' Student' M() I*th Seme!ter of +ari!h
Chandra #. ,. College' )-amgarh oad' *arana!i ?in/l3 )ill t,e @-estionnaire.
T,is is meant )or t,e st-/3 o) AO./ OF O01%OO )%*/1ISIN, IN
(IN,IN, )2)N/SS )(O01 INS0)NC/ #O%0C1B -n/er
t,e resear0, re8ort. It is ass-re/. T,at t,e t,at in)ormation s,are/ 5ill ;e >e8t
0on)i/ential an/ -se/ )or a0a/emi0.
#-r8ose onl3. ?in/l3 .i2e 3o-r res8onses to t,e ;est o) 3o-r >no5le/.e, e*8erien0e an/
*> E@5(@R
a> MA1@ b> 0@MA1@
a> MARRI@( b> J5MARRI@(
)> @(J-A2IO5A1 TJA1I0I-A2IO5
a> A5N +RO0@SSIO5A1 (@ER@@ &MBAR-A> b> ERA(JA2@
c> +OS2 ERA(JA2@ d> J5(@R

OR @TJI=A1@52
.> O--J+A2IO5A1 BA-IEROJ5(
a> EO=2RS2A2@ b> +=2 POB
/> (o Nou ha'e any insurance policy Q
a> Nes 5o
6> If Nes Fhich companies Q
a> +ublic Sector b> +ri'ate Sector
;> 0rom where you get the information about the insurance planQ
a> +rint> b> @lectronic
c> Outdoor d> Any other
<>According to you which the most attracti'e media for the insurance productRplan Q
a> +rint> b> @lectronic
c> Outdoor d> Any other
9> (o you find the ad'ertisement of your insurance company outside your
a> Nes b> 5o
*:> If yes# where Q
a> 0le$ b> Banner
c> Fall +ainting d> Any other
**> Is the information on the outdoor media is enough to ta!e decision about the
insurance plan Q
a> Nes b> 5o
*,> If no what are the other Medias you go through Q
*)> Are you satisfied with the promotional strategy of your insurance company Q
a> Nes b> 5o
*.> Any Suggestion Q
Marketing Research O E- Beri
Marketing Management O Michel Iel'in and +hilip Iotler

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