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Promotional Strategies adopted by Insurance Industry

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 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 personwithin an organization

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Promotional Strategies adopted by Insurance Industry

Preface
In this project I 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 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.

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Promotional Strategies adopted by Insurance Industry

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. 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.

Introduction of insurance
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Promotional Strategies adopted by Insurance Industry

Humans have always sought security. This quest for security was an important motivating force in the earliest formations of families, tribes, and other groups. The groups have been the primary source of both emotional and physical security since the beginning of humankind. Humans today continue their quest o achieve security and reduce uncertainty. We still rely on groups for financial stability. With industrialization our physical and economic security has diminished. Mankind is exposed to many serious hazards, which cause stoppage of income. The biggest worry any human being has is the economic worry. He is always thinking of tomorrow and the days to come and he will be planning to meet the demands of his family, his business and that of his own needs. The economic worries may arise due to stoppage of income. Our income dependent, wealth acquiring lifestyle renders us and our families more vulnerable to environmental and social changes over which we have no control. There may be accidents, sickness disability, or due to premature death of the breadwinner. It is impossible to prevent such calamities. But it is always possible to provide against the loss of income that may result out of such these perils.

Definition of insurance
General definition: In the words of John Magee, Insurance is a plan by themselves which large number of people associate and transfer to the shoulders of all, risks that attach to individuals.

Contractual definition:
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Promotional Strategies adopted by Insurance Industry

In the words of justice Tindall, Insurance is a contract in which a sum of money is paid to the assured as consideration of insurers incurring the risk of paying a large sum upon a given contingency In simple terms it is a contract between the person who buys Insurance and an Insurance company who sold the Policy. By entering into contract the Insurance Company agrees to pay the Policy holder or his family members a predetermined sum of money in case of any unfortunate event for a predetermined fixed sum payable which is in normal term called Insurance Premiums. Insurance is basically a protection against a financial loss which can arise on the happening of an unexpected event. Insurance companies collect premiums to provide for this protection. By paying a very small sum of money a person can safeguard himself and his family financially from an unfortunate event.

Types of Insurance
TYPES OFINSURAN CE

Life Insurance

Health Care Insurance

Home Insurance

Travel Insurance

Auto Insurance

Introduction
"Advertisements are sometimes spoken of as the nervous system of the business world. As our nervous system is constructed to give us all the possible sensations
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Promotional Strategies adopted by Insurance Industry

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 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 & measure progress toward them. Some advertisers have set communications & audience goals, & measured copy & media effects, but few advertisers have set dollar goals & measured sales & 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 & 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 & control have been around for more than 50 years & the industry standards.
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Promotional Strategies adopted by Insurance Industry

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 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.

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.

Background
According to industry observers, one of the main reasons for the low insurance penetration in India was the ineffective distribution and marketing strategies
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Promotional Strategies adopted by Insurance Industry

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 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. This sudden spurt of advertisements and awareness programs was visible on all
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Promotional Strategies adopted by Insurance Industry

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
LIC Aliaz Bajaj Om Kotak Mahindra ICICI Prudential Source: ICMR

Expenditure

1000 200 150 146

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 &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.

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Promotional Strategies adopted by Insurance Industry

Research Objectives
Primary Objective To understand & measure the impact of advertising in the market. 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 brandbuilding, brand re-call & finally the choice of a plan while buying it.

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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Promotional Strategies adopted by Insurance Industry

Industry Objective
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 in Calcutta by the British. Some of the important milestones in the general insurance business in India are:
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Promotional Strategies adopted by Insurance Industry

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 code of conduct for ensuring fair conduct & 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. 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:

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Promotional Strategies adopted by Insurance Industry

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. Competition

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. 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.

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Promotional Strategies adopted by Insurance Industry

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 & 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 & leading MNC insurance/financial services co.

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Promotional Strategies adopted by Insurance Industry

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. Data collection

Structured Questionnaire

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.

Secondary Data collection

Various websites were consulted to collect literature relevant to the topic. 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 & likeability. The top ads are selected on the basis of their score.

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Promotional Strategies adopted by Insurance Industry

Literature Review

Media Exposures in Rural Market

Corporate Advertising

Learning of ICICI prudential Affect of advertising in brand building

Power of emotional branding by ICICI prudential Promotional strategy Message & media strategy Strategy Internet promotion through website Mobile promotional Television advertising Wall hoardings Promotions strategy Radio advertising strategy Print media advertising strategy Media Exposures 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.

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Promotional Strategies adopted by Insurance Industry

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. 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 & communication,"

Key Summary
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Promotional Strategies adopted by Insurance Industry

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. The estimated annual business from rural markets in 2008 was Rs. 1,23,000 crore, comprising Rs. 65,000 crore of FMCG, Rs. 5000 crore of durables, Rs. 45,000 crore of agricultural inputs & Rs. 8,000 crore of two wheelers and 4 wheelers. 29% of the rural people own cars, 27% own colour televisions, 24% own refrigerators & 10% own washing machines.

Corporate 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 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. 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
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Promotional Strategies adopted by Insurance Industry

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.

The advertising idea, which was encapsulated in symbols of protection from the initial print campaign, culminated in the corporate film where SINDOOR was used as an endearing and lasting symbol of protection. 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

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Promotional Strategies adopted by Insurance Industry

in general. Boost both employee management relation & employee morale enabling all members of the internal public to discover a new vitality. Advertisers aimed at appealing to the main stream, middle class family. ICICI prudent strategy was to highlight the importance of the nuclear family, the neighborhood and the country as a whole. Each group is attracted to a specific type of content, which makes it easier for advertisers to target a specific audience a certain way

Mechanism points out that our media is becoming global, where people all over the world are being influenced by segment making media. Wednesday, April 25, 2007(times of India)

Learning of ICICI prudential

ICICI prudential has been advertising its retirement solutions through the chintamani campaign the focus of this ad campaign has been on educating consumers about its solutions, which provide tax savings & investment options. ICICI targeted the office-going segment & sent direct mailer to them through the dabbawallas.

ICICI sole mention has been to education the customers about the services it provides and the related attributes and benefits. Marketers have begun to realize the importance of teaching the consumer about their product & services and how these products and services would benefits him. (III sem consumer behavior book (page no. 101)) Affect of advertising in Brand Building
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Promotional Strategies adopted by Insurance Industry

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. http://www.asiainsurancereview.com/pages/awards/awardswinners2008.asp

Power of emotional branding by ICICI prudential

More & more companies are now days trying to market and promote their products

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Promotional Strategies adopted by Insurance Industry

using emotional advertising. Today we see lot of advertisement in different segments using different Relationship or bonding of individuals with others Take an example of ICICI Prudential, they successfully used following emotional branding techniques to create there brand and marketed there products

http://www.managementparadise.com/forums/archive/index.php/t18260.html Promotional strategy


A

Promotional Strategy

A---> Advertising: Is any non-personal paid form of communication using any form of mass media.

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Promotional Strategies adopted by Insurance Industry

P----> 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. S---->Sales promotion: Commonly used to obtain an increase in sales short term. Could involve using money off coupons or special offers. P---->Personal selling: Selling a product service one to one. By personalizing advertising, response rates increase thus increasing the chance of improving sales. D---->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? 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 & Retire from work, not life
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Promotional Strategies adopted by Insurance Industry

Om Kotak: 'Jeene ki azaadi' Nike: Just do it.

Toyota: The car in front is a Toyota ICICI bank: Hum Hai Na 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.

Strategy

Pull & push strategy

Communication by the manufacturer is not only directed towards consumers to create demand. A push strategy is where the manufacturer concentrates some of their marketing effort on promoting their product to retailers to convince them to stock the product.

Product life cycle 1) Growth 2) Maturity 3) Decline

Internet promotion through website

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Promotional Strategies adopted by Insurance Industry

Www.yahoomail.com

Www.way2sms.com

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Promotional Strategies adopted by Insurance Industry

INC student portal

Www.monster.com

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Promotional Strategies adopted by Insurance Industry

Mobile promotional

Mobile Promotions is a very individual business. From road shows & sampling campaigns to hospitality & shopping center promotions, we have a team of people who will help you stand out from the crowd.

Television advertising
The typical approach followed by national brands to attack the lower end of the market is to introduce an offering, which is priced just above tunorganized market's offering. The idea is to upgrade the consumer from that to the branded one.

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Promotional Strategies adopted by Insurance Industry

Wall hoardings Promotions strategy


Wall hording promotional strategy used by ICICI prudential company. In many places in Surat puts the hoardings of ICICI prudential & also puts the hoarding in a malls so more awareness of the ICICI prudential life insurance company. Some wall hoardings in a mall shown as below in the picture

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Promotional Strategies adopted by Insurance Industry

Radio advertising strategy

A radio commercial (in the USA also called a spot by people in the business) is a form of advertising via the medium of radio. Airtime is purchased from a station or network in exchange for airing the commercials.

The first radio commercial is credited to WEAF, New York on August 28, 1922 for the Queensbury real estate corporation. The ten-minute live commercial was voiced by H.M. Blackwell, a representative of Queensbury.

Print media advertising strategy


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Promotional Strategies adopted by Insurance Industry

Advertising in India can easily handle your advertising needs. You may need to design an ad for your business, looking for placing a matrimonial advertisement or perhaps you want to publish an advertisement in newspaper for job recruitment

Analysis
It includes the summary of advertisement scenario of insurance industry in the
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Promotional Strategies adopted by Insurance Industry

soaring mass market available in India based on the survey conducted. 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.

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 surprisingly and contributing in the promotion of insurance sector.

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Promotional Strategies adopted by Insurance Industry

(Ranks are in ascending order) LIC being the giant of Life Insurance in INDIA has grabbed the top slot in terms of advertisement also. Other private players like ICICI Prudential, HDFC Std. Life, Birla Sun life and Reliance Life Insurance are trailing behind LIC.

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Promotional Strategies adopted by Insurance Industry

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.

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 competitive 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 survey.

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Promotional Strategies adopted by Insurance Industry

Facts & Findings


TAM Media Research, a joint venture between Nielsen Media Research (NMR)/ AC Nielsen 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

2) Sartorial division in TV advertising


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Promotional Strategies adopted by Insurance Industry

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. 4) Channel wise distribution of advertisement in TV.

General Entertainment Channel led with 1/3rd share, followed by News & Music

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Promotional Strategies adopted by Insurance Industry

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.

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.

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Promotional Strategies adopted by Insurance Industry

2) Volume Growth in Life Insurance sector.

Television advertising of Life Insurance grew by 258 per cent in 2007 as compared to 2004. 3) Private versus Public Insurers on TV during 2007.

Private Insurers lead with 78 percent share of overall advertising of Life

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Promotional Strategies adopted by Insurance Industry

Insurance sector on TV during 2007.


4) Rank shift of top Life Insurers in 2007 during 2006.

LIC & HDFC Standard Life Insurance Co. Ltd switched their ranks in 2007 compared to 2006. Compared to 2006, Bharti AXA Life Insurance Co & ING Vysya Life Insurance moved up maximum places to be in the top 10 list of 2007. 5) Top 10 Life Insurance brands on TV. HDFC Standard Life Children Plan lead with 8 per cent share followed ICICI Prudential Life Insurance & Bharti AXA Life Insurance with 7 per cent & 6per cent share, respectively, during 2007.

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Promotional Strategies adopted by Insurance Industry

Top 10 brands were a mix of five brands of Life Insurance, and three of the brands belonged to the Pension 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

7) Genre usage for Life Insurance advertising.


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Promotional Strategies adopted by Insurance Industry

Maximum Life by Hindi News.

Insurance advertising was done on Regional GEC

followed

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 Sun life Childrens Dream' was the top brand in new brands list on TV.

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Promotional Strategies adopted by Insurance Industry

Snapshot on Life Insurance advertising in print in 2007


1) Share of Life Insurance (Life Insurance vs. Other Insurance)

'Life Insurance' & '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.

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Promotional Strategies adopted by Insurance Industry

3) Share of Private and Public Insurers in Print during 2007


Private Insurers took 55% advertising share of 'Life Insurance' advertising in Print during2007.

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

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Promotional Strategies adopted by Insurance Industry

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.

7) Preference of Genre for advertising of Life Insurance


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Promotional Strategies adopted by Insurance Industry

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. 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.

Findings
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Promotional Strategies adopted by Insurance Industry

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. Thats why corporate advertising plays a vital role in growing stage.

Have you Awareness of ICICI Prudential life insurance?

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Promotional Strategies adopted by Insurance Industry

8 Yes 92

Have you seen advertisements of ICICI Prudential Life Insurance?

8 92

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Promotional Strategies adopted by Insurance Industry

In which of the following media have you seen these advertisements the most?

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Promotional Strategies adopted by Insurance Industry

Can you recall the content/message of the ICICI Prudential advertisements now?

YesI a una to reca m ble ll YesI a una to reca m ble ll YesI a una to reca m ble l

30 60 10

0% 20% 40% 60% 80%100%

How often do you share interesting advertising with your family or friends?
5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 Nvr ee Rr ly e a Smim oe e t s Oe fn t V y fe eo n r t 5 5 5 5 5 5 5 5

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Promotional Strategies adopted by Insurance Industry

Understand the message of the advertisement of ICICI Prudential life insurance?

ICICI Prudential Life insurance advertisement was believable?

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Promotional Strategies adopted by Insurance Industry

Do you think this ad has influence you to?


5 5 5 5 1 1

Buytheinsura policy nce

Recom e theInsura Policy m nd nce S g theinsura Policy ug est nce

None 5 % 5% 5 5% 5

5 5 5% 5 5% 5 55 5%

If you hear the word Life Insurance what company comes to your mind immediately?

Rank the following life insurance companies as per your brand recall capacity?
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Promotional Strategies adopted by Insurance Industry

Share of Life Insurance v/s other insurance

Growth of Life Insurance Advertising

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Promotional Strategies adopted by Insurance Industry

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

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Promotional Strategies adopted by Insurance Industry

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: '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. 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.

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Promotional Strategies adopted by Insurance Industry

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 of protection and familial and creating endearing imagery bonding.

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: 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
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Promotional Strategies adopted by Insurance Industry

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. 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 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

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Promotional Strategies adopted by Insurance Industry

emails in the year 2001. Today, ICICI Prudential are fairly high on awareness, among target segment.

Company has 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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Promotional Strategies adopted by Insurance Industry

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. 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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Promotional Strategies adopted by Insurance Industry

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 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.

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Promotional Strategies adopted by Insurance Industry

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. 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.

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

Conclusion

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Promotional Strategies adopted by Insurance Industry

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. 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 particular 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 old- age life or how "ICICI Prudential" can help you in receiving pensions 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. 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.

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Promotional Strategies adopted by Insurance Industry

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.

Recommendation about promotional strategies


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Promotional Strategies adopted by Insurance Industry

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.

Special recommendation
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Promotional Strategies adopted by Insurance Industry

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.

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