You are on page 1of 66

ADVERTISING IN INSURANCE

A PROJECT REPORT ON
“ADVERTISING IN INSURANCE”

SUBMITTED TO
UNIVERSITY OF MUMBAI
IN THE PARTIAL FULLFILMENT OF B.B.I. DEGREE

BY
RUBINA JOSEPH ANTAO
T.Y.BCOM (B&I)
ROLL NO: A-20
SEAT NO: 1410

STUDYING AT
RIZVI EDUCATION SOCIETY’S
RIZVI COLLEGE OF ARTS, SCIENCE & COMMERCE
BANDRA (W), MUMBAI-50
(2009-2010)

1|Page
ADVERTISING IN INSURANCE

DECLARATION

I, Miss Rubina Joseph Antao, a student of T.Y.B.com (Banking & Insurance) 6th SEM of

Rizvi College of Arts, Science and Commerce hereby declare that I have completed this project

titled “ADVERTISING IN INSURANCE” for the academic year 2009-2010. It is an original

and true work to the best of my knowledge.

_________
___________
Signat
ure of the Student

[Rubi
na Joseph Antao]

2|Page
ADVERTISING IN INSURANCE

CERTIFICATE

I, Prof Pushaanjali Sahu hereby verify that Miss Rubina Joseph Antao have completed this

project titled “ADVERTISING IN INSURANCE” for the academic year 2009-2010. It is an

original and true work to the best of my knowledge.

____________________ _______________________
Signature of the Principal Signature of the BBI Co-ordinater

[Dr.S.G.A.Zaidi] [Mr Furquan Shaikh]

__________________________ _____________________________
Signature of the Project Guide Signature of the External Examiner

[Mrs Pushaanjali Sahu]

3|Page
ADVERTISING IN INSURANCE

ACKNOWLEDGEMENT

I would like to thank the University of Mumbai and Rizvi College Of Arts, Science & Commerce
for giving me the opportunity to work on this project Namely “Advertising In Insurance” which
has proved to be a great learning experience for me.

I also extend my sincere thanks to our Principal Dr.S.G.A.Zaidi and the vice Principal Beena pant
for their moral support and encouragement. In my whole endeavor to complete this project, I own
immense gratitude to my project guide Prof. Mrs Pushaanjali Sahu who has been a constant
support and guiding light throughout the project.

I am also thankful to our Course co-ordinators, Prof. Mrs Furquan Shaikh and for extending
their guidance and co-operation throughout this project.

I would also like to thank all my friends and family member whose constant support and
continuous assistance was required for the completion of this project.

And lastly, I express my sincere gratitude to all the respondents of the survey undertaken in this
project which enabled me to make the project a more meaningful one.

4|Page
ADVERTISING IN INSURANCE

EXECUTIVE SUMMARY

Insurance Marketing is definitely considered as one of the most strenuous jobs for those
involved in the marketing sector. Advertising being a part of the vast Insurance Marketing
process plays a very important role as well as in modern business.

Due to excessive specialization, mass production and competition, advertising has become an
indispensable activity in business. It is growing as a backbone of modern national and
international marketing. Life insurance being one of the hottest topics in the insurance
industry, insurance companies try to pull crowd towards life insurance, and go for different
advertisement innovations and techniques to attract people.
Insurance advertising companies are employing every new mean to advertise themselves.

The most obvious but expensive form of advertising being employed by them is the
television. A huge number of people are glued to the television, so insurance companies
target this medium on a prime basis. They build distinct advertisements that arrest the
attraction of the viewers, thus putting a mark on them about the importance of life insurance
and what they have to offer. TV advertisements are very effective since target audience both
see and listen to what is being told at the same time.

Advertising about insurance in local newspapers is also a very effective way to advertise and
market the agency, since the companies try to build brand name recognition for themselves.
The online version of the Wall Street Journal has over 4.5 million visitors, having a catchy
insurance advertisement there will definitely pull a big crowd. Life insurance companies also
understand that local audience and a family type atmosphere is a great way for
advertising insurance business. So, these firms play their advertisements in movie halls when

5|Page
ADVERTISING IN INSURANCE

people are out with their family to watch a film, typically coming up when viewers are sitting
in their seats waiting for the movie to start.

Insurance companies have adopted different innovative ways of advertising their brand. Some
of them are as follows:
 Celebrity Endorsements has been a key favorite in the endorsements for the financial
sector. From Amitabh Bachchan to Sachin Tendulkar and Vijendar Singh, celebrities have
been seen endorsing these financial products time and again.

 A certain section of the Indian market, saturated with celebrity endorsements, has also
brought about an emergence of mascots that create a new personality of the product with their
looks, mnemonics and sounds. Be it ICICI Prudential’s Chintamani or Tata AIG’s Sukhi-
Dukhi, they all have created immense brand recall for their respective companies.

 Life Insurance companies are also having tie-ups with bollywood films such as 3 Idiots,
Paa, Love Aaj Kal, Cheeni Kum, etc in order to create a wider reach for their advertising
campaigns. In fact, Reliance Life Insurance has its tagline as ‘All is Well’ which is inspired
from the film 3 Idiots.

 Brand Repositioning strategies are also adopted in order to adopt an eye-catching punch
lines and campaigns which will lead to a great brand recall value

 Advertising via the medium of Sports also has been one of the favorites for advertisers.
Be it in-game advertising strategies done by Bajaj Allianz or HDFC Standard Life’s
association with the Rajasthan Royals Team

 Advergaming and Spoofs through the viral advertising medium has caught great attention
of advertisers and consumers. IDBI Fortis and ICICI Prudential are great examples of the
same.

 Online advertisements on popular web portals are also being employed by these firms.
Along with publicizing their brand names, the life insurance companies also keep reminding
people about the importance of getting life insurance
6|Page
ADVERTISING IN INSURANCE

 And other advertising strategies such as brand display on shoe-shining machines, local
trains, launching music albums have also been undergone by various life insurance
companies

All these Advertising Innovations which lead to great Advertising Effectiveness have been
dealt with later in the project by discussing the strategies adopted by 12 top Life Insurance
companies. The project also discusses about the origination of advertising in Life Insurance,
its current scenario and its effect on the consumers’ minds.

7|Page
ADVERTISING IN INSURANCE

INTRODUCTION

The developments in the society encouraged the product development in the insurance
industry also. Insurance offer people the assurance of compensation in the event of a specific
contingency. It helps people fight against the evils of poverty, unemployment, disease, old
age, fateful accidents to person and property and other calamities. Moreover it plays an
important role in the mobilization of savings of people especially from the lower and middle
income group. Insurance accumulates huge funds from small deposits of large number of
investors which it uses in the development of the society. Huge funds are made available as
capital for this purpose. The contributions in the form of premium are insignificant
independently but amount to millions in totality.

The Government took various steps to regulate the business of insurance. For
years, Life Insurance Corporation of India was the sole market player in India in the field. As
the Government permitted the private sector to enter the scenario, a number of private sector
companies have entered into life and other insurance business in India. As per the guidelines
of Insurance Regulatory and Development Authority (IRDA) the Indian companies entered
into joint ventures with the foreign insurance companies to do business jointly. For eg. HDFC
Standard Life Insurance Company Ltd., Max New York Life Insurance Company Limited,
ICICI Prudential Life Insurance Company Limited, Om Kotak Mahindra Life Insurance
Company Limited, TATA AIG General Life Insurance Co. Ltd. Star Health and Allied
Insurance co. Ltd., and many others.

8|Page
ADVERTISING IN INSURANCE

There was a time when insurance was looked with lots of apprehension but now the
industry is booming rapidly thanks to the entry of several private players and their large
scale advertising. No other sector has witnessed such intense competition as displayed by the
insurance sector in the past couple of years. This all encouraged the entry of domestic giants
like Tata, Birla, and reliance into the industry. These giants have adopted every possible
positive step towards the promotion of the insurance sector. These insurance companies
provide huge chances to invest more in this area with their attractive schemes and products.

GROWING IMPORTANCE OF ADVERTISING IN INSURANCE.


9|Page
ADVERTISING IN INSURANCE

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 from objects, so
the advertisement which is comparable to the nervous system must awaken in the reader as
many different kinds of images as the object itself can excite" “Advertising effectiveness
means different things to the groups responsible for its different effects. To the writer or
artist, effective advertising is that which communicates the desired message. To the media
buyer, effective advertising is that which reaches prospective buyers a sufficient number of
times. To the advertising or marketing manager, effective advertising is that which, together
with other marketing forces, sells his brand or product. To the general manager, effective
advertising produces a return on his firm’s expenditure.” “In fact, effective advertising must
achieve all four goals, delivering messages to the right audience, thereby creating sales at a
profit. Most advertisers have begun only recently to set goals in all four areas and measure
progress toward them. Some advertisers have set communications and audience goals, and
measured copy and media effects, but few advertisers have set dollar goals and measured
sales and profit effects. The result is that advertising has rarely been a part of corporate
planning. Thirty years ago, management was asking the same questions they ask today: Is my
advertising working and what impact does it have on my sales? Can it be measured? Can our
advertising and promotion be made accountable in the same manner as which one evaluates
all of the other investments by our company? The answer to all three questions is yes.

In fact, the techniques to deliver this degree of accountability and control have been
around for more than 50 years and are industry standards. 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.

Big boom has been witnessed in Insurance Industry in recent times. A large number of
new players have entered the market and are vying to gain market share in this rapidly
improving market. The study deals advertisement given by Insurance Companies. The study
10 | P a g e
ADVERTISING IN INSURANCE

then goes on to evaluate and analyze the findings of these advertisements so as to present a
clear picture of media strategy the Insurance players.

Since 2001, when the insurance industry was privatized, various new services have filled
the market gaps. Before privatization in the insurance industry, there was only a single player
i.e. the Life Insurance Corporation Of India in the market. Therefore the volume and
frequency of advertisements were low.

But the scenario has changed radically and the customers have become more demanding
as far as financial services are concerned. The scenario has led to a rise in the volume and
frequency of advertising for insurance products.

According to industry observers, one of the main reasons for the low insurance
penetration in India was the ineffective distribution and marketing strategies adopted by LIC.
The company reportedly never had any strategic marketing game plan, and due to its
monopolistic nature the need for serious marketing efforts was never felt. The advertising
initiatives were limited to some print and electronic media advertisements that typically talked
about LIC’s products being great tax saving tool for salaried individuals who came under the
income-tax bracket. Despite all this, LIC was synonymous with insurance in India and it had
established an enviable brand image for itself, especially in the rural areas and small towns.

However, with the entry of new players, the insurance market changed almost overnight.
Analysts commented that the private insurers seemed all set to make the industry marketing-
driven, wherein technical and service excellence would be the key factors of success. The
private companies, in a bid to make their presence felt and their brand noticed, initiated a
series of aggressive marketing and promotion initiatives, something that buyers of insurance
were not accustomed to.

In July 2002, India’s state owned insurer, Life Insurance Corporation of India (LIC)
announced aggressive marketing plans with a budget of around Rs 1 billion. The aim of this
unusual decision was to woo customers across the country through a multimedia campaign
including advertisements on the radio and the press media, the outdoor media and the
television. However, this did not come as a major surprise to industry observers who said that
11 | P a g e
ADVERTISING IN INSURANCE

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 the
media channels. Print, electronic and outdoor advertisements of the new private insurers
flooded could be seen everywhere. This prompted many comparisons of such behavior of
insurance companies with the advertising frenzy of the dotcoms in India not too long ago –
with similar full-page advertisements, huge hoardings and costly electronic media
advertisements. According to reports, in the first quarter of the year 2002, insurance
companies spent 70% of what was spent in the whole of 2001, on advertising and publicity.

Across the world, insurance, as a category was one of the largest spenders on
advertising. In India too substantial expenditure was being incurred due to advertising.

COMPANY EXPENDITURE:

LIC 1000

Allianz Bajaj 200

Om Kotak Mahindra 150

ICICI Prudential 146

BRAND BUILDING.

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
12 | P a g e
ADVERTISING IN INSURANCE

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 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 Prudential
Smart Kid, retirement solutions or Life Time.

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

13 | P a g e
ADVERTISING IN INSURANCE

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.

14 | P a g e
ADVERTISING IN INSURANCE

APPEALS ON THE EMOTIONS

In a world where we are all called upon to make choice, to pick one product from 12
similar items, one service from 16 others, and one lifestyle or another the advertising of these
products and service can make a huge difference to our decision. Yes the product or service
that is being offered must have a certain quality and of course, the price or investment matters
too. But most purchase decisions assuming that price is not a major factor are not made in

15 | P a g e
ADVERTISING IN INSURANCE

cold blood. Rather we tend to buy or invest in the things that make us feel good about
ourselves or that touch us.

That is why the kind of advertising that works best is advertising that plays on an
emotion. Fear, affection, anger, security, humors, basic values…. If a commercial manages to
arouse any of these emotions in us chances are we will remember that adverting and buy that
product.

Advertising agencies are well aware of this phenomenon. “India is a country is very
high on emotions”. Most people here act and react more on instinct & emotions than
anything else. The ‘feel factors’ is very strong. People not only relate very well to emotions,
but are also immensely entertained by them. But is there any particular emotion that works
better that other? Humor is easy to relate to. We are more inclined to recall a joke than a
moment of sadness. On the other hand, we do have the reputation of being a rather
sentimental nation, so does poignant advertisement work best?”

Here are some of the snapshots of the advertisements from the insurance sector that
appeals on the emotions of the target audience or viewer……..

1. LIFE IS LIKE CRICKET

16 | P a g e
ADVERTISING IN INSURANCE

As one proceeds with his investment pattern, there are certain issues of dilemma such
as risk return, cumulative return versus intermittent returns, etc. Aviva life insurance has
directly hit the issues through an advertisement featuring cricketer Sachin Tendulkar. One
has to find the gaps to make the most from investment made in an avenue. The life is
beautifully compared with the cricket where the expectations rest on the players. Similarly,
the earning members have also to look after the expectations of their family members. They
have to balance between the high return expectations and the risk attached to them. This
advertisement also reveals the stress one has to go through while taking investment decision.
It gives a good insight into the investor mind. Moreover, Sachin Tendulkar, being a role
model for the present generation, makes it all more effective.

2. HEALTHY PLANS FOR HEALTHY LIFE

17 | P a g e
ADVERTISING IN INSURANCE

Humor in advertising, if appropriately used can make wonders with the target
audience. The Reliance General Insurance has come up with a hilarious advertisement
where a couple orders a pizza. While ordering they tell the waiter to eliminate the high calorie
ingredients, as the order is served what remains on the plate are some cut vegetables. The
advertisement ends with the narration. If you can do so much for the health of yours then
why not take out a health insurance?

This is a very preliminary introduction to the health insurance products. The health
insurance market is not ripe in India. This advertisement brings out this issue very lucid

3. SHELTER-HITTING ON THE BASIC NEED.

18 | P a g e
ADVERTISING IN INSURANCE

Indian Housing Finance Industry is driven by the ever growing housing needs of the
people. Building a house is a life time aim for everybody. With the ever skyrocketing rates of
real estates. It’s far-fetched to think of buying a property without housing finance.

In this context, the commercial of LIC HOUSING FINANCE is very appealing. A son
who is settling down in Bangalore is travelling with his parents. He remembers how difficult
it was for his father to educate him and bring him to this level. With this retrospective
thinking, he puts the nameplate with his father’s name to his house. This reflects the cultural
bond between the two generations, which is a peculiarity of Indian society. It also fosters the
image of LIC Housing as a facilitator for an important milestone in one’s life.

4. MAX NEW YORK LIFE IS FOR LIFE.

19 | P a g e
ADVERTISING IN INSURANCE

Indians avoid fear as much as possible and love to have a happy ending. They will
never understand the danger of unprecedented tragedies, believing strongly that they will
happen only to others. MNYL has addressed the same.

An ad of MNYL shows a woman reaching home and enquiring the watchman if her
husband had already arrived as she climbs the stairs in her flat. She rushes inside and call ‘hi
Sanju’ and doesn’t receive any response, she starts worrying and tries to reach him on mobile
only to see that it is ringing below the couch pillow. Panic stricken she finds her husband in a
chair in the terrace with coffee cup overturned and spilling, she goes behind and nudges him.
Her husband, who has been listening to music since long gets startled. They hug each other
with a sigh of relief. It ends with a thought that Museebatien bataake nahin aati, and hence
MNYL is here to people’s rescue when such unforeseen events happen.

Though in a bit scary manner, this ad tries to make the viewer understand the ill-
effects of not having insurance. However, it was given a happy ending so as to give the
viewer a sigh of relief at the end.

5. FUTURE GENERALI INSURANCE-


EK SHAGUN ZINDAGI KE NAAM

20 | P a g e
ADVERTISING IN INSURANCE

This television commercial of FUTURE GENERALI INSURANCE has come up with


a new idea i.e. EK SHAGUN ZINDAGI KE NAAM where a woman is preparing for the
pooja and her husband asks her for a name for their new house. The lady says let us complete
the pooja then we will decide upon it. She reaches at the door for pooja and sees her name on
the entrance and is overwhelmed with the love of her family. This advertisement ends with a
message that you do so much for your beloved ones so why not present an insurance
policy to them on special occasions.

HDFC-THE KHUDDARI CAMPAIGN

21 | P a g e
ADVERTISING IN INSURANCE

In the face of tough competition, all insurance companies are adopting different
strategies and ideas to differentiate their products.

HDFC LIFE came up with the theme of self-respect. KHUDDARI is something that
has been taken as the genesis of their campaign. They have even taken it to higher levels by
talking about financial independence. The idea behind the campaign was that an individual
should be able to live with dignity at various stages of his life.

Creativity in Insurance Advertising:

22 | P a g e
ADVERTISING IN INSURANCE

The Insurance market is typically overcrowded and ambiguous to an extent. There is a


major overlap of various products and hence, it is difficult to identify the boundaries of
products of various product offerings. Here is the analysis of the advertisements of various
Insurance Companies.

Different insurance companies have adopted different promotion policies to market


the variety of products they offer. The first step to touch the hearts of people is to adopt a
creative strategy in advertising. The success or failure of a message depends on the
marketers’ creativity and on the psychological make-up of the prospects and their
requirements. The insurance companies have adopted creative strategies to educate and train
people to help them understand the concepts behind their products better.

Insurance Industry is booming. When the customer seeks protection of insurance, he


does not bargain. Companies need to build trust and complete confidence in the minds of
potential customers in order to expand their business. Insurance Companies have realized that
in order to beat the competition advertising can become a crucial weapon and can help
them achieve their objective.

Here are some of the examples which clearly focus on the creativity in the
advertisements of different insurance companies…..

23 | P a g e
ADVERTISING IN INSURANCE

Aviva Life Insurance co- “KAL PAR CONTROL.”

Aviva Life Insurance co. has a customer base of 35 million and operates in more than
25 countries. Its campaign is “KAL PAR CONTROL.” The company care focus areas is on
TAX BENEFITS GUARANTEE ON MATURITY AND SECURITY AFTER DEATH.

In life insurance the insured is required to pay premium which is considered as an


Investment. AVIVA shows this investment plan in its print advertisement

AVIVA INDIA that has signed up the cricketing legend SACHIN TENDULKAR as its
brand ambassador believes that it shares values like commitment, honesty, forward thinking,
security and trust typically associated with the cricketer. Sachin is all time favorite across all
age groups, as he can easily capture the attention of the target audience in India. Moreover,
the company has launched their new plan “LITTLE MASTER ‘which is also endorsed by
sachin.

IIFCO-TOKIO- ‘THE LIFE YOU DESERVE’ .”

24 | P a g e
ADVERTISING IN INSURANCE

IIFCO-TOKIO does its advertising through pamphlets that educate people about
various plans the company offers like safeguards against house breaking and robbery,
protection foe office and automobiles, etc.

It contacts people personally and emphasizes upon the complete peace of mind that their
insurance plans offers: “We have made every effort to make our policies and procedure
simple, transparent and customer friendly to give you ‘THE LIFE YOU DESERVE’.”

LIC also emphasizes on the emotions through all its campaigns. Its messages in the
commercials like “ZINDAGI KE SAATH BHI, ZINDAGI KE BAD BHI.”, “TO SERVE
WITH LOVE” , “WE KNOW INDIA BETTER” attract Indian customers by influencing
their sentiments.

ICICI PRUDENTIAL- Mr. Chintaman

25 | P a g e
ADVERTISING IN INSURANCE

ICICI PRUDENTIAL has come with an another creative idea of promoting


through animated advertisements and trying to influence the viewer through their new brand
ambassador Mr. Chintamani.

BIRLA SUN LIFE INSURANCE- EASY INSURANCE

BIRLA SUN LIFE has come up with a noble concept which stresses on
the fact that it is much more easier to get life insurance than arranging your daughter’s
wedding. It requires no medical test and other time consuming formalities and the
advertisement ends with a message LIFE INSURANCE FATAFAT.

26 | P a g e
ADVERTISING IN INSURANCE

The emotional trend is also witnessed in MAX NEW YORK LIFES print commercial
like “YOUR PARTNER FOR LIFE”, “SECURE YOUR CHILDS FUTURE”,
“BENEFITS OF A BETTER LIFE AT LOW COST”

SAHARA INDIA LIFE INSURANCE

This television commercial has come up with a new and humors concept
that after getting his life insured from SAHARS LIFE, a person is so self confident that
he does not even fear GABBAR SINGH and calls him confidently in a very casual manner.
This ad ends with a tag line ‘ATMA VISHWAS KI NAYI TAKAT’

27 | P a g e
ADVERTISING IN INSURANCE

Advertising of Life Insurance sector


Source: AdEx India (A Division of Media Research)

28 | P a g e
ADVERTISING IN INSURANCE

Medium: Print
Period: 2009

Highlights:
<<

• In the Insurance sector, ‘Life Insurance’ contributed 76% of advertising in Print during
2009.
• ‘Life Insurance’ advertising dropped by 25% in Print during 2009 compared to 2008.
• High advertising in ‘Life Insurance’ sector during the first quarter of both the years 2008
and 2009.
• 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
2008 and 2009.
• Baja Allianz Life Insurance and LIC were the top 2 brands of ‘Life Insurance’ in Print
during 2009.

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

29 | P a g e
ADVERTISING IN INSURANCE

• 'Life Insurance' and 'Other Insurance' contributed to Insurance advertising in the ratio of 76:24 in Print.

Volume Growth in Life Insurance sector.

30 | P a g e
ADVERTISING IN INSURANCE

• ‘Life Insurance’ advertising in Print witnessed a dip of 14% during 2007 over 2004.

Rank shift of top Life Insurers in 2007

31 | P a g e
ADVERTISING IN INSURANCE

Tata AIG Life Insurance and Max Newyork Life Insurance moved up maximum places to be in the top
10 list of 2007 compared to 2006.

Advertising of Life Insurance sector


Source: AdEx India (A Division of Media Research)

32 | P a g e
ADVERTISING IN INSURANCE

Medium: TV
Period: 2009

Key Findings:

• Life Insurance players acquired 80 per cent share of overall TV advertising of the
Insurance sector in 2009.

• Life Insurance advertising grew by 72 per cent during 2009 compared to 2008.

• Life Insurance advertised maximum during Q1 across 2008 and 2009.

• LIC took the top slot among the players of Life Insurance on TV in 2009.

Birla Sunlife Children's Dream was the top brand in the new brands list on TV.

Top 10 Life Insurance brands on TV.

33 | P a g e
ADVERTISING IN INSURANCE

HDFC Standard Life Children Plan lead with 8 per cent share followed ICICI Prudential Life
Insurance and Bharti AXA Life Insurance with 7 per cent and 6 per cent share, respectively,
during 2009.
Top 10 brands were a mix of five brands of Life Insurance, and three of the brands belonged
to the Pension Plan.

34 | P a g e
ADVERTISING IN INSURANCE

LIC V/S PRIVATE PLAYERS

35 | P a g e
ADVERTISING IN INSURANCE

According to a survey conducted by a leading marketing research firm, ORG


Marg, brand awareness of private insurers in India was increasing in the early 21st century.
The difference in the level of awareness of these new players as compared to the hitherto
monopoly of LIC was decreasing fast because of the aggressive advertising measures adopted
by private insurers. The new companies focused their campaigns primarily on building an
image of trustworthiness and reliability for themselves. Secondly, their advertisements
focused on insurance as an investment option and not a mere tax saving tool – another first
for the Indian market. Most of these advertisements carried messages like the family’s
happiness, human bonding, etc., with underlying emphasis on the security that insurance
could provide. Also, instead of projecting the idea, that an insurance policy actually starts
working only after the death of the insured, the new campaigns projected that insurance
protects people throughout their lives.

Various insurance ads:


In one of its TV commercials, ICICI Prudential showed a series of scenes depicting
the childhood, marriage and old age of an individual. The purpose of using these visuals was
to translate the company’s message ‘I will protect’ into real-life incidents. In order to project
its commitment towards consumers to ‘protect at every stage of life,’ the company brought
in the concept of sindoor, which symbolizes protection.

Sindoor was shown throughout the commercial as a mark of auspiciousness and


protection, and at the end, it became the red line below the ICICI Prudential logo.

Max New York also resorted to depicting positive emotions such as trust and
protection in its print advertisements. The company released two print advertisements.
While one of them carried an image of the revered deity Goddess Durga, the other
projected three teenagers standing together, with their faces painted green, white and saffron
– like the Indian national flag. Reportedly, Max New York wanted to convey the message

36 | P a g e
ADVERTISING IN INSURANCE

that ‘insurance is your partner for your life.’ In addition to such TV commercials, the private
insurance companies were trying to make their presence felt by organizing blood donation
camps, contests and sponsoring various events social events through their agents.
ING Vysya tied up with leading US-based Columbia Picture’s Indian arm to carry out
promotional activities using the blockbuster English movie ‘Spiderman.’ In the metros, ING
Vysya distributed free movie tickets to its customers. The latter also organized the Green
Mumbai Drive and several blood donation camps in association with the Red Cross, besides
sponsoring the action replay of the India-West Indies cricket match series in May 2002 and
also in November 2002.
Om Kotak and Birla Sun Life took to sponsoring events in a major way, to attract
prospective customers. Om Kotak initially highlighted in its advertisements the credibility
and trustworthiness of individual partners (Old Mutual & Kotak Mahindra) through its
generic campaigns.
The TV commercials featured men and women ‘meeting’ themselves in the future –
happy, healthy and secure, thanks to insurance. Allianz Bajaj went a step ahead. Apart from
bringing out TV commercials and putting up hoarding and billboards, it entered into a two-
month long contract with Shoppers Stop. According to the contract, every Shoppers Stop
outlet had an Allianz Bajaj kiosk that provided information about policies in order to attract
customers.
Allianz Bajaj’s entire communication package included print advertisements, outdoor
media campaigns and direct marketing methods. All its print advertisements carried a visual
of human hands, which symbolized partnership and care to stress on the concept of care.

Similarly, Tata AIG entered into an agreement with Westside to set up information kiosks
in all its outlets in order to attract people’s attention. Also, Tata AIG was one of the first
insurance companies to adopt the celebrity endorsement strategy. Tata AIG chose the
Hindi movie star, Naseeruddin Shah, as its brand ambassador for endorsing its personal
accidental death insurance policy. In addition to all the above, private players in the
insurance sector charted out various innovative marketing plans to establish their products.

37 | P a g e
ADVERTISING IN INSURANCE

For instance, ICICI Prudential launched the ‘TruLife Club’ for its high-value policyholders as
part of its marketing strategy. Through TruLife Club, the company offered a wide range of
health-related products, health and fitness equipment and membership in gyms, health resorts
and clinics in India. Policyholders with a sum assured of Rs 0.5 million or more were
included into this club.
Another interesting development was regarding the punch lines used by private
insurance players that invariably tried to associate positive emotions with insurance products.
While ING Vysya said ‘Adding life to insurance,’ ICICI Prudential said, ‘We cover you at
every step in life.’ Similarly, HDFC Standard advertisements projected a happy man
asserting; ‘Now I can continue enjoying a comfortable lifestyle even after I retire.’ Om
Kotak highlighted its campaigns with ‘Jeene ki azaadi’ (Freedom to live)’ and Allianz Bajaj
stated ‘Allianz Bajaj, Life insured by care.’ LIC came out with a corporate advertisement
on TV with the punch line, ‘Zindagi Tumhari Roshan Rahe’ (May your life be glorious).

38 | P a g e
ADVERTISING IN INSURANCE

39 | P a g e
ADVERTISING IN INSURANCE

LIC V/S ICICI PRUDENTIAL

With private players paying much attention to advertising and promotional activities, LIC,
too, was forced to make efforts to increase its visibility and enhance its brand image. The
company commenced intense, systematic and well-focused public relations and publicity
activities both at the corporate and operational levels.

LIC upped its advertisement spend to tackle competition and succeeded in forging
way ahead. LIC has advertised in satellite channels as well as terrestrial channels. LIC has to
reach out to non-resident India policy holders as well as its other corporate customers who are
based abroad. ICICI Prudential has advertised on several channels from the Star TV
bouquet, Zee Network and Sony. The company has spent about Rs 50 million on TV
advertising last year. With the geographical expansion, TV became a viable medium and the
corporate campaign for ICICI Prudential Life was run on TV, because the medium lends
itself well to an emotional type of films that strike a chord with the audience. Product
advertising, which needs to impart information, was largely done through print and outdoor
channels, as these are appropriate for rational type of messages, ICICI Prudential Life
Insurance campaign was short-listed as one of the 12 most effective campaigns for the
year 2001 in the EFFIE awards.

According to an ORG MARG study, the ICICI Prudential brand name and advertising
had the highest recall amongst all private players, and was only marginally behind LIC.
ICICI Prudential Life was awarded the INDY’s Award for Excellence in Mass
Communication in the category of Most Creative Advertisement-Television.

ICICI Prudential Life Insurance reviews its media biz

40 | P a g e
ADVERTISING IN INSURANCE

ICICI Prudential Life Insurance is reviewing its media planning and buying account. Two
media agencies – Lodestar and Carat India – have already met the client, according to
industry sources.
The media planning and buying for TV and print is currently handled by Initiative
Media. The outdoor media buying is handled by Ogilvy Landscapes. The creative account is
handled by Lowe.

Confirming the development, ICICI Prudential Life Insurance marketing manager Abhishek
Bhatia, said, “
We are still in the process of reviewing the agencies and should make a decision within a
few weeks.” He clarified that the review is part of the routine exercise. Going by the latest
developments, the incumbent is also expected to be in the fray.
“When short listing agencies to invite for the pitch, we are looking for those (agencies)
which can go beyond tools and techniques in terms of rigorously using them, and
implementing a robust monitoring system (for efficiency in terms of planning and execution
of the plan devised). Also, they should have some expertise in handling the banking, financial
services and insurance category. We would also be looking at the capability to go beyond TV,
outdoor and print,” said Bhatia.
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,” said Bhatia.

41 | P a g e
ADVERTISING IN INSURANCE

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 initiatives included tie-up with the Dabbawalla Organization in Mumbai for a
direct marketing exercise, to talk to the customer through a non-cluttered route, and thereby
have a higher impact. The direct mailer was about ICICI Prudential’s retirement solutions and
the tax benefits that one can avail of buy investing in any of these. About 100,000 direct
mailers were attached to the ‘dabbas’, in areas such as Churchgate, Bandra and Andheri
where there are mostly office-goers,” said Bhatia.
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, we have also entered into alliances with
telecom companies, as well as companies like BPCL and Dominos,” concluded Bhatia.

42 | P a g e
ADVERTISING IN INSURANCE

SLOGANS OF INSURANCE COMPANIES


43 | P a g e
ADVERTISING IN INSURANCE

 LIC
Zindagi ke saath bhi, Zindagi ke baad bhi

 Max New York


Your partner for life

 ICICI Lombard
Business Uninterrupted

 Birla Sunlife
Your dreams, our commitment

 ING Vyasya
Adding life to insurance

 ICICI Prudential
We cover you at every step in life.
44 | P a g e
ADVERTISING IN INSURANCE

 Aviva
Kal par control

 MetLife - Metropolitan Life Insurance Company


Have you met life today?
Get Met. It Pays.

 AXA Insurance
AXA. Be life confident.
Go Ahead. You Can Rely on Us.

45 | P a g e
ADVERTISING IN INSURANCE

RESEARCH METHODOLOGY.

46 | P a g e
ADVERTISING IN INSURANCE

A survey for the better understanding of the awareness or popularity of the brands
and their plans was carried out.

This is a limited study which takes into consideration the responses of 50 people. This
data can be exported to take decision for promotional strategy across the industry. The
significance for the industry lies in studying these trends that emerge from the study. It is a
rapidly changing and evolving sector. People are only beginning to wake up to its vast
possibilities. A study like this can attempt to guide the future of the industry based on current
trends.

The questions were designed in an easily understandable way. That the respondents may
not have any difficulty in answering them. The questionnaire also contained a comments
section. This section was included so as to get opinion of the people regarding the Insurance
Advertisements.

The respondents who were asked to fill out questionnaires are the sampling units.
These comprise of employees of MNCs, Govt. Employees, and Self Employed, students,
etc.

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.

The next step involved in collecting information requires discussion with people. Thus
valuable information was gathered informal friendly talks with the people.

47 | P a g e
ADVERTISING IN INSURANCE

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 have been used to illustrate the findings diagrammatically.

The result of the survey will help the company to know about the effectiveness of
various life insurance advertisements and how much advertisement is helpful in buying
decision. The results will also help the company to trace the loop holes and then take the
corrective measures to rectify them.

48 | P a g e
ADVERTISING IN INSURANCE

QUESTIONNARIE FOR THE PURPOSE OF THE PROJECT ON ‘ADVERTISING IN


INSURANCE.’
AGE: ______________

SEX: ______________

QUALIFICATION: ______________

49 | P a g e
ADVERTISING IN INSURANCE

Q1. Which media you use for information regarding insurance products?

 TV
 Radio
 Newspaper
 Internet
Q2. Have you seen any Insurance Product Ad?

 Yes
 No
Q3. If yes can you recall the content of the Ad?

 Yes
 No
Q4. On Which channel you watch the insurance products advertisements mostly?

 Zee T.V
 Sony
 Star
 News Channel

Q5. Based on the features advertised in the ads to which point you agree the most?

 Somewhat Agree

50 | P a g e
ADVERTISING IN INSURANCE

 Somewhat Disagree
 Strongly Disagree
 The advertisement is believeable
Q6. Do you think this ad has influence you to buy the insurance policy?

 Yes
 No
Q7. Which company ad you find mostly?

 LIC India
 HDFC Std. Life Insurance Co. Ltd.
 ICICI Prudential Life Insurance Co. Ltd.
 TATA AIG Life Insurance.
Q8. Other than T.V Where you saw Life insurance ad?

 Internet
 Newspaper
 Holdings
 Radio

51 | P a g e
ADVERTISING IN INSURANCE

FINDINGS OF THE SURVEY.

Q1. Which media you use for information regarding insurance products?

52 | P a g e
ADVERTISING IN INSURANCE

TABLE NO. 01

OPTIONS %. OF PEOPLE

T.V. 42

RADIO 36

NEWSPAPER 14

INTERNET 8

45
40
35
30
25
20
15
10
5
0
T.V. RADIO NEWSPAPER INTERNET

Q2. Have you seen any Insurance Product Ad?

TABLE 02

OPTIONS %. OF PEOPLE
53 | P a g e
YES 100

NO 00
ADVERTISING IN INSURANCE

100
90
80
70
60
50
40
30
20
10
0
YES NO

Q3. If yes can you recall the content of the Ad?

TABLE NO. 03

54 | P a g e
ADVERTISING IN INSURANCE

OPINION % of people

YES 96

NO 04

100

80

60

40

20

0
YES NO

Q4. On Which channel you watch the insurance products advertisements mostly?

TABLE NO. 04

OPINION %. OF PEOPLE

Zee T.V 14

Sony 26
55 | P a g e
Star 04

News Channel 56
ADVERTISING IN INSURANCE

60
50
40

30

20
10

0
ZEET.V. SONY STAR NEWS
CHANNEL

Q5. Based on the features advertised in the ads to which point you agree the most?

TABLE NO. 05

OPINION %. OF
PEOPLE

56 | P a g e
ADVERTISING IN INSURANCE

Somewhat Agree 11

Somewhat Disagree 25

Strongly Disagree 06

The advertisement is believable 58

60
50
40
30

20
10
0
somewhat somewhat strongly its
agree disagree disagree believable

Q6. Do you think this ad has influence you to buy the insurance policy?

TABLE NO. 06

OPINION NO. OF PEOPLE

YES 86

NO 14

57 | P a g e
ADVERTISING IN INSURANCE

90
80
70
60
50
40
30
20
10
0
YES NO

Q7. Which company ad you find mostly?

TABLE NO. 07

OPINION %. OF PEOPLE

LIC 46

HDFC STD. LIFE 03

58 | P a g e
ADVERTISING IN INSURANCE

ICICI PRUDENTIAL LIFE 51

TATA AIG 00

60

50

40

30

20

10

0
LIC HDFCSTD. ICICI PRU TATA AIG
LIFE

Q8. Other than T.V Where you saw Life insurance ad?

TABLE NO. 08

OPINION NO.OF PEOPLE

Internet 32

Newspaper 57

Hoardings 09

59 | P a g e
ADVERTISING IN INSURANCE

Radio 02

60

50

40

30

20

10

0
INTERNET NEWSPAPER HOARDINGS RADIO

60 | P a g e
ADVERTISING IN INSURANCE

SUGGESTIONS

 An intense AIDA model needs to be adopted the AIDA model (Awareness,


Interest, Desire, and Action).

 Customers are aware of majority of products of ICICI PRUDENTIAL Life


Insurance Co. Ltd.

 Print & Electronic Media Advertisement should be done (As we can see intense ad
campaign of HDFC Standard Life and Bajaj Allianz.)

61 | P a g e
ADVERTISING IN INSURANCE

 Hoardings at prime areas should be used.

 Creating offers like lucky draws for the users of Internet.

 Giving free gifts for the customer.

62 | P a g e
ADVERTISING IN INSURANCE

63 | P a g e
ADVERTISING IN INSURANCE

CONCLUSION.

Clearly emotions plays significant role in advertising of services. If advertisers elicit the
correct emotions in consumers, link between the brand and the character, the character and
the viewer and the viewer and the brand can all be made. These links all serve to increase
brand preference, create a favorable image toward the brand & to encourage the consumer to
purchase the product. Humor & fear appeals are two emotions appeals that are commonly
used in adverting today. Advertising plays an important role in current marketplace. It creates
identification, personality & promotional continuity to a brand.

In spite of all the challenges, promotion in insurance sector is unavoidable. Although


the acceptance level of these advertisements is not as high as in western countries, they have
certainly created awareness among the target audience. Undoubtedly, creativity in advertising
in advertising will promote the insurance sector and will help them to go a long way in
offering security to the people.

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 ads. 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

64 | P a g e
ADVERTISING IN INSURANCE

“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.

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.

65 | P a g e
ADVERTISING IN INSURANCE

BIBLIOGRAPHY

 MAGAZINES:
-Insurance Chronicle

(April 2007, January 2008)

-Advertising Express

(November 2007, February 2008, June 2008)

 WEBSITES:
-www.agencyfaqs.com

-www.indiatelevision.com

-www.advertisingexpress.com

 SURVEY THROUGH QUESTIONARIE METHOD.

66 | P a g e