ICICI In spite of the vast potential, the retirement solutions category remained virtually untapped by the Indian Insurance

players - until ICICI Prudential decided to build and explore this hidden goldmine. The following case study discusses how ICICI Prudential used smart marketing strategy to exploit this opportunity to its advantage. Sussan Verghese ICICI Prudential. Market Scenario With increasing life expectancy on one hand and rising inflation and medical costs on the other, the need for planning one’s retirement was emerging as an important one. However, it was quite surprising to know only 11 per cent of India’s total working population was adequately covered for post-retirement life. This was mainly due to low awareness of and attitudinal barriers with respect to these issues among consumers. The Opportunity About 90 per cent of the working population in India was without retirement cover. Of this, a sizeable portion belonged to the age group of 30-40 yrs - a big market left unexploited so far.Even the market leader LIC, which has been in the country for decades, had failed to truly drive growth of the retirement products category. Proof being the mere 4.16 per cent contribution of pension products to its entire portfolio (as of end 2002). The Barriers The task of capturing the unexploited market however, turned out to be an uphill one. The first barrier was low awareness of the need for early retirement planning among consumers. Add to it the consumer’s notion that planning for retirement starts only in your 50s. The bigger issue however, was the consumer’s perceptions and fears as far as retirement was concerned. The word ‘retirement’ itself brought to mind all the negatives associated with old age – loss of independence (social, financial and physical), causing ‘avoidance’ or deferment of decisions regarding the same. The Challenge
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To re-position the traditional concept of retirement planning and thus create relevance for it among the 30-40 yrs age group. To change behaviour, inducing consumers to invest in retirement planning early in life.

CAMPAIGN OBJECTIVES

Bring the concept of planning for retirement into the consideration set of 30-40 year old working men/ women thereby creating a new market

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50 per cent of pensions contributions to come from persons below 40 years Sales and market share targets within six months post campaign (for the period Sep 2002 to Mar 2003): 1. Sales target: INR 400 million 2. Share of total pensions market: 10 per cent 3.Contribution of pensions to portfolio: 20 per cent

TARGET AUDIENCE
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SEC A, B, 30-40 year old, chief wage earner, who: is at the prime of his working life, with a higher disposable income and majority of work life still at hand. Currently thinks that retirement planning holds very low importance, as compared to other needs of asset acquisition, child’s education etc.

CREATIVE STRATEGY Consumer Insight “Retirement is a long way off – why plan for it now?”“Retirement means the end of all good things in life”Creative strategy To a younger target group, for whom retirement is synonymous with growing old, the strategy was to offer a fresh perspective by mirroring the never say die attitude of the 35 yr old. If age doesn’t stop him from sharing in the joys of life now, why should it stop him later? Proposition ICICI Prudential Retirement solutions help you plan early for retirement, ensuring that you will continue to live life the way you always wanted to.The advertising message “Retire from work – not life!” OTHER COMMUNICATION PROGRAMS The laddered task of share gain through changing consumer attitudes and behaviour, called for a multi-dimensional communication strategy that went beyond traditional mass media. 1. Retirement Solutions Seminars: Through a tie up with The Times of India, full-page educative advertorials were released in three metros inviting consumers for a free seminar on early retirement planning. Over 2000 consumers attended these seminars. 2. Direct Marketing Campaign: More than 15 databases were carefully chosen to accurately target the 30-40 yr old. Customers of/subscribers to ICICI Bank credit card holders, Safety Bond holders, Money control and Myiris are few of the databases that were used. 3. Retirement Planner: An educative booklet in the form of a planner was created explaining why it made better sense to start planning for retirement several years in advance. The mode of distribution was an innovation in Brand Equity (The Economic Times). 4. Retirement calculator: A user-friendly calculator was designed to help customers calculate the current savings required in order to meet post-retirement expenses. This was made available on the brand website and used extensively as a needs analysis tool at the time of sale.

MEDIA STRATEGY The overriding objective of the media strategy was customer interaction through various touch points using a 24-hour cycle. So a multi media strategy was developed to contact the target at every possible touch point. 1. TV: This was the main medium for reach, impact and demonstrate the emotional pay off. For the first month of launch a high reach, high frequency plan was implemented, followed up with three months of sustained activity. The activity started with 40-second commercials and then moved to 20 and 30 seconds edits aimed at increasing frequency. 2. Print: Press reinforced the rational benefit of saving early to cushion your retirement by highlighting the product’s comprehensive features. Vehicles were chosen based on the best cost per response i.e. the publication which would generate the maximum no of call ins. 3. Radio: The new FM channels launched in the previous year were explored to reach audiences out of home. The spots were aired so as to get the morning and evening officegoing traffic. 4. Outdoor: A high visibility-high impact outdoor strategy was implemented across 21 cities. Morning traffic sites were specifically selected to target the office going consumer. 5. Internet: Used innovatively to seek responses via click-throughs. Financial sites and general interest sites were chosen considering the net is used both in office and at home. 6. Direct Marketing: Mailers and brochures played the dual role of educating the consumer on the rationale behind planning early for retirement and the advantages of ICICI Pru Retirement Solutions. 7. Public Relations: Was effectively used to educate consumers on early retirement planning, making them more receptive towards the brand’s communication. Competitive Media Spends: The combined spend of just the top 2 competitors put to- gether amounted to Rs 16 crores approx. Comparatively the spends on the ICICI Pru campaign was Rs 4.8 crores. MEDIA
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Television Newspaper Consumer Magazine Radio Point-of-Purchase Out-of-Home Public Relations Sales Promotion Consumer Seminars

EVIDENCE OF RESULTS Overwhelming response

To begin with, the campaign triggered a large number of consumer response calls and e-mails (35000 calls and 3000 emails).

The response rate for mailers sent out (Direct Marketing) varied from five per cent to 7.5 per cent, far higher than both domestic and international norms across categories.

Changing Attitudes The average age of a person investing in ICICI Pru retirement solutions dropped to 38.5 years. Sales and Market Shares: The success of the campaign was not limited to phone calls alone. The campaign contributed greatly to the organisation’s topline and bottomline as is evident form the charts below: 1. Sales achieved for the period Sept ‘02 to Mar ’03, were INR 740 million as compared to a target of INR 400 million. 2. Market share Gain: The brand increased its share of pensions market to 23 per cent against target of 10 per cent for the period Sep 2002 to Mar 2003. The table below which compares ICICI Pru’s share in the pensions market with the overall life insurance category puts the campaign’s success in perspective.

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