RESEARCH PROJECT

On

Advertisement effectiveness study of ICICI

Prudential life insurance Ltd.

For the partial fulfilment of the requirement of

MASTER OF BUSINESS ADMINISTRATION

Affiliated to Mahamaya Technical University, Noida (U.P.)

(2010-2012)

Under The Guidance of: Submitted By:

Ms.PRATIMA SHARMA SUDHIR SINGH
Roll No.1068470104

GNIT Management School

6-C, Knowledge Park-II, Greater Noida ( G. B. Nagar)

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 DECLARATION

This is to certify that the report submitted by me in Masters of Business

Administration program from GNIT Management School, Greater Noida (Mahamaya
technical university) embodies the original work done by me under the able guidance
and supervision of Ms. pratima sharma (Faculty member of GNIT Management
School). The findings and interpretations in the report are based on both primary and
secondary data collection. This project is not copied from any source or other project
submitted for similar purpose.

SUDHIR SINGH

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 Acknowledgement

In my whole endeavour to complete this project, I own immense gratitude to my

Director mam Ms. savita mohan for extending his co-operation though this
project.

I express my sincere thanks to my guidance Ms. Pratima Sharma and all the faculty
member of GNIT MANAGEMENT SCHOOL. for there valuable cooperation and
giving me valuable information in preparing the project.

Last but not least, I express my sincere gratitude to all the respondent who helped
me in the project.

SUDHIR SINGH

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 preface

In this project we review the tools and techniques used to measure

Advertising Effectiveness. Effectiveness is the measure of the gap between
results and objectives. Lower the gap, higher the effectiveness. Thus it is an
evaluation of the advertising process. The advertising evaluation process is
frequently called accountability.

Management wants the advertising managers to identify exactly what results

were 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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 Content

Page no.

1) INTRODUCTION 6 _ 37

2) OBJECTIVE OF THE STUDY 38 _ 39

3) PROBLUM SCOPE OF THE STUDY 40 _ 46

4) REVIEW OF LITERATURE 47 _ 52

5) RESEARCH METHODOLOGY 53 _ 55

6) DATA ANALYSIS 56 _ 68

7) USE AND IMPORTANCE OF THE STUDY 69 _ 70

8) SUGGESTION 71 _ 73

9) CONCLUSION 74 _ 75

10) SECOUNDARY DATA 76

11) BIBLIOGRAPHY 77 _ 78

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INTRODUCTION

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 Introduction

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.

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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:

1957: The Indian Mercantile Insurance Ltd. Set up, the first company to transact all
classes of general insurance business.

1957: General Insurance Council, a wing of the Insurance Association of India,

frames a code of conduct for ensuring fair conduct and sound business practices.

1968: The Insurance Act amended to regulate investments and set minimum
solvency margins and the tariff Advisory Committee set up.

1972: The General Insurance Business (Nationalization) Act, 1972 nationalized the
general insurance business in India with effect from 1st January 1973. 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

8
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:

Parties to contract

There is a difference between the insured and the policy owner, although the owner
and the insured are often the same person. For example, if Joe buys a policy on his
own life, he is both the owner and the insured. But if Jane, his wife, buys a policy on
Joe's life, she is the owner and he is the insured. The policy owner is the guarantor
and he will be the person to pay for the policy. The insured is a participant in the
contract, but not necessarily a party to it. Also, most companies allow the payer and
owner to be different, e. g. a grandparent paying premiums for a policy on a child,
owned by a grandchild.

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The beneficiary receives policy proceeds upon the insured person's death. The
owner designates the beneficiary, but the beneficiary is not a party to the policy. The
owner can change the beneficiary unless the policy has an irrevocable beneficiary
designation. If a policy has an irrevocable beneficiary, any beneficiary changes,
policy assignments, or cash value borrowing would require the agreement of the
original beneficiary.

In cases where the policy owner is not the insured (also referred to as the celui qui
vit or CQV), insurance companies have sought to limit policy purchases to those with
an insurable interest in the CQV. For life insurance policies, close family members
and business partners will usually be found to have an insurable interest. The
insurable interest requirement usually demonstrates that the purchaser will actually
suffer some kind of loss if the CQV dies. Such a requirement prevents people from
benefiting from the purchase of purely speculative policies on people they expect to
die. With no insurable interest requirement, the risk that a purchaser would murder
the CQV for insurance proceeds would be great. In at least one case, an insurance
company which sold a policy to a purchaser with no insurable interest (who later
murdered the CQV for the proceeds), was found liable in court for contributing to
the wrongful death of the victim (Liberty National Life v. Weldon, 267 Ala.171
(1957)).

Contract terms

Special exclusions may apply, such as suicide clauses, whereby the policy becomes
null and void if the insured commits suicide within a specified time (usually two years
after the purchase date; some states provide a statutory one-year suicide clause).
Any misrepresentations by the insured on the application may also be grounds for
nullification. Most US states specify a maximum contestability period, often no more
than two years. Only if the insured dies within this period will the insurer have a legal
right to contest the claim on the basis of misrepresentation and request additional
information before deciding whether to pay or deny the claim.

The face amount of the policy is the initial amount that the policy will pay at the death
of the insured or when the policy matures, although the actual death benefit can
provide for greater or lesser than the face amount. The policy matures when the
insured dies or reaches a specified age (such as 100 years old).

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Costs, insurability and underwriting

The insurer (the life insurance company) calculates the policy prices with intent to
fund claims to be paid and administrative costs, and to make a profit. The cost of
insurance is determined using mortality tables calculated by actuaries. Actuaries are
professionals who employ actuarial science, which is based on mathematics
(primarily probability and statistics). Mortality tables are statistically based tables
showing expected annual mortality rates. It is possible to derive life expectancy
estimates from these mortality assumptions. Such estimates can be important in
taxation regulation.

The three main variables in a mortality table are commonly age, gender, and use
of tobacco, but more recently in the US, preferred class-specific tables have been
introduced. The mortality tables provide a baseline for the cost of insurance, but in
practice these mortality tables are used in conjunction with the health and family
history of the individual applying for a policy to determine premiums and insurability.
Mortality tables currently in use by life insurance companies in the United States are
individually modified by each company using pooled industry experience studies as a
starting point. In the 1980s and 90s, the SOA 1975–80 Basic Select & Ultimate
tables were the typical reference points, while the 2001 VBT and 2001 CSO tables
were published more recently. The newer tables include separate mortality tables
for smokers and non-smokers, and the CSO tables include separate tables for
preferred classes.

Recent US mortality tables predict that roughly 0.35 in 1,000 non-smoking males
aged 25 will die during the first year of coverage after underwriting. Mortality
approximately doubles for every extra ten years of age, so the mortality rate in the
first year for underwritten non-smoking men is about 2.5 in 1,000 people at age
65.Compare this with the US population male mortality rates of 1.3 per 1,000 at age
25 and 19.3 at age 65 (without regard to health or smoking status).

The mortality of underwritten persons rises much more quickly than the general
population. At the end of 10 years the mortality of that 25 year-old, non-smoking
male is 0.66/1000/year. Consequently, in a group of one thousand 25-year-old males
with a $100,000 policy, all of average health, a life insurance company would have to
collect approximately $50 a year from each participant to cover the relatively few

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expected claims. (0.35 to 0.66 expected deaths in each year x $100,000 payout per
death = $35 per policy). Other costs, such as administrative and sales expenses,
also need to be considered when setting the premiums. A 10 year policy for a 25-
year-old non-smoking male with preferred medical history may get offers as low as
$90 per year for a $100,000 policy in the competitive US life insurance market.

Most of the revenue received by insurance companies consists of premiums paid by

policy holders, with some additional money being made through the investment of
some of the cash raised from premiums. Rates charged for life insurance increase
with the insurer's age because, statistically, people are more likely to die as they get
older. The insurance company will investigate the health of and applicant for a policy
to assess the likelihood of incurring a claim, in the same way that a bank would
investigate an applicant for a loan to assess the likelihood of a default. Group
Insurancepolicies are an exception to this. This investigation and resulting evaluation
of the risk is termed underwriting. Health and lifestyle questions are asked, with
certain responses or revelations possibly meriting further investigation. Life
insurance companies in the United States support the Medical Information Bureau
(MIB), which is a clearing house of information on persons who have applied for life
insurance with participating companies in the last seven years. As part of the
application, the insurer often requires the applicant's permission to obtain information
from their physicians.

Underwriters will determine the purpose of insurance; the most common being to
protect the owner's family or financial interests in the event of the insured's death.
Other purposes include estate planning or, in the case of cash-value contracts,
investment for retirement planning. Bank loans or buy-sell provisions of business
agreements are another acceptable purpose.

Life insurance companies are never legally required underwrite or to provide

coverage to anyone, with the exception of Civil Rights Act compliance requirements.
Insurance companies alone determine insurability, and some people, for their own
health or lifestyle reasons, are deemed uninsurable. The policy can be declined or
rated (increasing the premium amount to compensate for a greater probability of a
claim).

Many companies separate applicants into four general categories. These categories
are preferred best, preferred, standard, and tobacco.] Preferred best is reserved only

12
for the healthiest individuals in the general population. This may mean, that the
proposed insured has no adverse medical history, is not under medication for any
condition, and his family (immediate and extended) have no history of early-
onset cancer, diabetes, or other conditions .Preferred means that the proposed
insured is currently under medication for a medical condition and has a family history
of particular illnesses. Most people are in the standard category. Profession, travel
history, and lifestyle factor into whether the proposed insured will be granted a
policy, and which category the insured falls. For example, a person who would
otherwise be classified as preferred best may be denied a policy if he or she travels
to a high risk country. Underwriting practices can vary from insurer to insurer,
encouraging competition.

Death proceeds

Upon the insured's death, the insurer requires acceptable proof of death before it
pays the claim. The normal minimum proof required is a death certificate, and the
insurer's claim form completed, signed (and typically notarized).If the insured's death
is suspicious and the policy amount is large, the insurer may investigate the
circumstances surrounding the death before deciding whether it has an obligation to
pay the claim.

Payment from the policy may be as a lump sum or as an annuity, which is paid in
regular installments for either a specified period or for the beneficiary's lifetime.

Insurance vs assurance

The specific uses of the terms "insurance" and "assurance" are sometimes confused.
In general, in jurisdictions where both terms are used, "insurance" refers to providing
coverage for an event that might happen (fire, theft, flood, etc.), while "assurance" is
the provision of coverage for an event that is certain to happen. In the United States
both forms of coverage are called "insurance", for reasons of simplicity in companies
selling both products.

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Types

Life insurance may be divided into two basic classes: temporary and permanent; or
the following subclasses: term, universal, whole life and endowment life insurance.

Term insurance

Term assurance provides life insurance coverage for a specified term. The policy
does not accumulate cash value. Term is generally considered "pure" insurance,
where the premium buys protection in the event of death and nothing else.

There are three key factors to be considered in term insurance:

1. Face amount (protection or death benefit),

2. Premium to be paid (cost to the insured), and
3. Length of coverage (term).

Various insurance companies sell term insurance with many different combinations
of these three parameters. The face amount can remain constant or decline. The
term can be for one or more years. The premium can remain level or increase.
Common types of term insurance include level, annual
renewable and mortgage insurance.

Level term policy features a premium fixed for a period longer than a year. These
terms are commonly 5, 10, 15, 20, 25, 30 and even 35 years. Level term is often
used for long-term planning and asset management as premiums remain constant
year to year, allowing for long-term budgeting. At the end of the term, some policies
contain a renewal or conversion option. With guaranteed renewal, the insurance
company guarantees it will issue a policy of an equal or lesser amount without
regard to the insurability of the insured and with a premium set for the insured's age
at that time. Some companies however do not guarantee renewal, and require proof
of insurability at the time of renewal. Renewal that requires proof of insurability often
includes a conversion option that allows the insured to convert the term policy to a
permanent one, possibly compelling the applicant to agree to higher premiums.
Renewal and conversion options can be very important when selecting a policy.

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Annual renewable term is a one-year policy, but the insurance company guarantees
it will issue a policy of an equal or lesser amount regardless of the insurability of the
applicant, and with a premium set for the applicant's age at that time.

Another common type of term insurance is mortgage life insurance, which usually
involves a level-premium, declining face value policy. The face amount is intended to
equal the amount of the mortgage on the policy owner's property, such that any
outstanding amount on the applicant's mortgage will be paid should the applicant die.

A policy holder insures his life for a specified term. If he dies before that specified
term is up (with the exception of suicide), his estate or named beneficiary receives a
payout. If he does not die before the term is up, he receives nothing. However, in
some European countries (notably Serbia), insurance policy is such that the policy
holder receives the amount he has insured himself to, or the amount he has paid to
the insurance company in total. Suicide used to be excluded from all insurance
policies However, after a number of court judgements, many insurers began
awarding payouts in the event of suicide (except for cases where it can be
demonstrated that the insured committed suicide solely to access the policy payout).
Generally, if an insured person commits suicide within the first two policy years, the
insurer will simply return the premiums paid as a compromise. After this period, the
full death benefit may be paid in the event of suicide.

Permanent life insurance

Permanent life insurance is life insurance that remains active until the policy
matures, unless the owner fails to pay the premium when due. The policy cannot be
cancelled by the insurer for any reason except fraudulent application, and any such
cancellation must occur within a period of time defined by law (usually two years). A
permanent insurance policy accumulates a cash value, reducing the risk to which the
insurance company is exposed, and thus the insurance expense over time. This
means that a policy with a million dollar face value can be relatively expensive to a
70-year-old. The owner can access the money in the cash value by withdrawing
money, borrowing the cash value, or surrendering the policy and receiving the
surrender value.

The four basic types of permanent insurance are whole life, universal life, limited
pay and endowment.

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Whole life coverage

Whole life insurance provides lifetime death benefit coverage for a level premium in
most cases. Premiums are much higher than term insurance at younger ages, but as
term insurance premiums rise with age at each renewal, the cumulative value of all
premiums paid across a life time are roughly equal if policies are maintained until
average life expectancy. Part of the insurance contract stipulates that the
policyholder is entitled to a cash value reserve, which is part of the policy and
guaranteed by the company. This cash value can be accessed at any time
through policy loans and are received income tax free. Policy loans are available
until the insured's death. If there are any unpaid loans upon death, the insurer
subtracts the loan amount from the death benefit and pays the remainder to the
beneficiary named in the policy.

While the marketing divisions of some life insurance companies often explain whole
life as a "death benefit with a savings component", this distinction is artificial
according to life insurance actuaries Albert E. Easton and Timothy F. Harris The
cash value reserve builds up against the death benefit of the policy and reduces the
net amount at risk. The net amount at risk is the amount the insurer must pay to the
beneficiary should the insured die before the policy has accumulated an amount
equal to the death benefit. It is the difference between the current cash value amount
and the total death benefit amount. Because of this relationship between the cash
value and death benefit, it may be more accurate to describe the policy as a single,
indivisible product, as no actual separation of the cash value and death benefit is
possible. The insurer is actually setting aside money as a cash reserve to pay the
future death benefit claim. This suggests that the cash value is technically part of the
death benefit, which is "earned" as cash over time. The lack of separation between
the cash value and death benefit also explains why insurers do not pay both the
death benefit and the cash value to the beneficiary.

The advantages of whole life insurance are guaranteed death benefits, guaranteed
cash values, fixed, predictable annual premiums and mortality and expense charges
that will not reduce the cash value of the policy. The disadvantages of whole life are
inflexibility of premiums and the fact that the internal rate of return in the policy may

16
not be competitive with other savings alternatives. Riders are available that can allow
one to increase the death benefit by paying additional premium. One such rider is
a paid-up additions rider.

The death benefit can also be increased through the use of policy dividends, though
these dividends cannot be guaranteed and may be higher or lower than historical
rates over time. According to internal documents from some life insurance
companies, like Massachusetts Mutual, the internal rate of return and dividend
payment realized by the policyholder is often a function of when the policyholder
buys the policy and how long that policy remains in force. Dividends paid on a whole
life policy can be utilized in many ways. First, if "paid-up additions" is elected,
dividends will purchase additional death benefit which will increase the death benefit
of the policy to the named beneficiary. Since this additional death benefit generates
cash value, it also increases the cash value of the policy. Another alternative is to opt
in for 'reduced premiums' on some policies. This reduces the owed premiums by the
non-guaranteed dividends amount. A third option allows the owner to take the
dividends as they are paid out (although some policies provide other/different/less
options than these - it depends on the company for some cases). A final option is to
invest the dividends in the insurance company's general or separate account.

Universal life coverage

Universal life insurance (UL) is a relatively new insurance product, intended to

combine permanent insurance coverage with greater flexibility in premium payment,
along with the potential for greater growth of cash values. There are several types of
universal life insurance policies which include interest sensitive (also known as
"traditional fixed universal life insurance"), variable universal life (VUL),guaranteed
death benefit, and equity indexed universal life insurance.

A universal life insurance policy includes a cash value. Premiums increase the cash
values, but the cost of insurance (along with any other charges assessed by the
insurance company) reduces cash values. However, with the exception of VUL,
interest is paid at a rate specified by the company, further increasing cash values.
With VUL, cash values will ebb and flow relative to the performance of the
investment sub-accounts the policy owner has chosen. The surrender value of the

17
policy is the amount payable to the policy owner after applicable surrender charges,
if any.

Universal life insurance addresses the perceived disadvantages of whole life –

namely that premiums and death benefit are fixed. With universal life, both the
premiums and death benefit are flexible. Except with regards to guaranteed death
benefit universal life, this flexibility comes the disadvantage of reduced guarantees.

Depending on how interest is credited, the internal rate of return can be higher as it
moves with prevailing interest rates (interest-sensitive) or the financial markets
(equity indexed universal life andvariable universal life). Mortality costs and
administrative charges are known, and cash value may be considered more easily
attainable because the owner can discontinue premiums if the cash value allows
this.

Flexible death benefit means the policy owner can choose to decrease the death
benefit. The death benefit could also be increased by the policy owner, but that
would typically require the insured to go through a new underwriting. Another feature
of flexible death benefit is the ability to choose from option A or option B death
benefits, and to change those options during the life of the insured. Option A is often
referred to as a level death benefit. Generally speaking, the death benefit will remain
level for the life of the insured and premiums are expected to be lower than policies
with an Option B death benefit. Option B pays the face amount plus the cash value.
If cash values grow over time, so would the death benefit which is payable to the
insured's beneficiaries. If cash values decline, the death benefit would also decline.
Presumably, option B death benefit policies would require higher premiums than
option A policies.

Limited-pay

Another type of permanent insurance is Limited-pay life insurance, in which all the
premiums are paid over a specified period after which no additional premiums are
due to keep the policy in force. Common limited pay periods include 10-year, 20-
year, and are paid out at the age of 65.

Endowments

: Endowment policy

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Endowments are policies in which the cumulative cash value of the policy equals the
death benefit at a certain age. The age at which this condition is reached is known
as the endowment age. Endowments are considerably more expensive (in terms of
annual premiums) than either whole life or universal life because the premium paying
period is shortened and the endowment date is earlier.

In the United States, the Technical Corrections Act of 1988 tightened the rules on tax
shelters (creating modified endowments). These follow tax rules in the same manner
as annuities and IRAs.

Endowment insurance is paid out whether the insured lives or dies, after a specific
period (e.g. 15 years) or a specific age (e.g. 65).

Accidental death

Accidental death is a limited life insurance designed to cover the insured should they
pass away due to an accident. Accidents include anything from an injury and
upwards, but do not typically cover deaths resulting from health problems or suicide.
Because they only cover accidents, these policies are much less expensive than
other life insurance policies.

It is also very commonly offered as accidental death and dismemberment

insurance (AD&D) policy. In an AD&D policy, benefits are available not only for
accidental death, but also for the loss of limbs or bodily functions, such as sight and
hearing.

Accidental death and AD&D policies very rarely pay a benefit, either because the
cause of death is not covered by the policy, or the coverage is not maintained after
the accident until death occurs. To be aware of what coverage they have, an insured
should always review their policy for what it covers and what it excludes. Often, it
does not cover an insured who puts themselves at risk in activities such as
parachuting, flying, professional sports or involvement in a war (military or not). Also,
some insurers will exclude death and injury due to (but not limited to) motor racing
and mountaineering.

Accidental death benefits can also be added to a standard life insurance policy as a
rider. If this rider is purchased, the policy will gener

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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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Investment:

Mandatory Investments of LIC Life Fund in government securities to be reduced

from 75% to 50%. GIC and its subsidiaries are not to hold more than 5% in any
company (There current holdings to be brought down to this level over a
period of time). Customer Service LIC should pay interest on delays in
payments beyond 30 days. Insurance companies must be encouraged to set
up unit linked pension plans. Computerized of operations and updating of
technology to be carried out in the insurance industry.

The Insurance Regulatory and Development Authority Reforms in the Insurance

sector were initiated with the passage of the IRDA Bill in Parliament in December
1999. The IRDA since its incorporation as a statutory body in April 2000 has
fastidiously stuck to its schedule of framing regulations and registering the private
sector insurance companies.

Attracted by the huge untapped potential, many private players entered the market
after the Insurance bill was passed in late 2000. A majority of these were
collaborations between an Indian company and a leading MNC insurance/financial
services company.

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank,
India's foremost financial services companies, and Prudential plc, a leading
international financial services group headquartered in the United Kingdom. While
ICICI retains 74% stake in the joint venture, Prudential plc has the remaining 26%
stake. ICICI Prudential began its operations in December 2000. Today, this company
has over 1,900 branches (inclusive of 1,074 micro-offices), over 210,000 advisors
and 6 branch assurance partners. ICICI Prudential Life Insurance Company is the
first life insurer in India that received a National Insurer Financial Strength rating of
AAA (Ind) from Fitch ratings. ICICI Prudential has been voted as India's Most
Trusted Private Life Insurer for three consecutive years. This company provides
various insurance plans that have been designed for different individuals, as every
individual has different insurance needs. It celebrated its 10th anniversary on 12th
December 2010. Given below is a list of plans provided by ICICI Prudential Life
Insurance
Company:

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All ULIPs
Unit linked insurance plans (ULIPs) are a category of goal-based financial solutions
that combine the safety of life insurance protection and long term wealth creation
opportunities. In ULIPs, a part of the premium goes towards providing you with life
cover while the remaining portion is invested in fund(s) which, in turn, are invested in
stocks or bonds.

 Retirement
 Wealth
 Child
 Health

Life Insurance Plans

Term Plans
Term insurance is the simplest and most fundamental insurance product available at
extremely affordable prices. In this type of a policy, an individual pays a fixed amount
of money periodically and in the unfortunate event of death of the policyholder, the
entire amount paid, along with some other benefits and interest, is paid back to the
deceased's family.

 ICICI Pru iProtect

 ICICI Pru Pure Protect

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  ICICI Pru LifeGuard
 ICICI Pru Home Assure

Wealth Plans
Wealth insurance plans are essentially long term savings plans which are designed
to help you save enough for your long term goals, like owning a house or a car etc,
along with providing you the benefit of life cover and protection for your family.

ULIP Wealth Plans

 ICICI Pru LifeStage Wealth II

 ICICI Pru Pinnacle II
 ICICI Pru LifeTime Premier
 ICICI Pru Life Link Wealth SP
 ICICI Pru Pinnacle Super

Traditional Wealth plans

 ICICI Pru Future Secure

 ICICI Pru Guarenteed Savings Insurance Plan
 ICICI Pru Whole Life
 ICICI Pru Save’n’Protect
 ICICI Pru CashBak

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Child Plans

Regardless of the rising cost of education in modern times, a parent never

compromises on the expenditure that goes into his/her child's bright career. A
saving's plan that is designed to provide money at key educational milestones and
take care of your loved ones future even if you are not around, is a wise decision to
make. In this plan, you pay premium periodically, or in lump sum, and during the key
educational milestones of your child, you can withdraw the money partially.

Traditional Child Plans

 ICICI Pru Smart Kid Regular Premium

Unit Linked Child Plans

 ICICI Pru Smart Kid Premier

Health Plans

Predicting unfortunate medical emergencies is difficult. Bearing the expenses of the

24
costly treatment is not at all easy and therefore, ICICI Prudential has come up with
health insurance plans that insure you and your family against expenses arising due
to medical emergencies and uncertainties such as hospitalisations or onset of critical
illnesses.

Hospitalisation Plans

 ICICI Pru Health Saver

 ICICI Pru Hospital Care II

Critical Illness Plans

 ICICI Pru Crisis Cover

Riders
ICICI Prudential gives you the freedom to form your very own comprehensive
insurance policy by adding the rider benefits to the basic life insurance policy. This
increases the scope of your policy, at a nominal cost.

 Critical Illness Benefit Rider

 Accident & Disability Benefit Rider
 Income Benefit Rider
 Waiver of Premium Rider (WOP)
 Waiver Of Premium On Critical Illness Rider

Retirement Plans

25
Financial independence at all times is important but its importance is the most in the
post-retirement phase of life. After being self-dependant for a lifetime, the idea of
depending upon your children can be quite putting off. Retirement plans from ICICI
Prudential Life Insurance, ensure that you have enough flexibility to choose your
retirement date and the manner in which you receive the pension.

ULIP Retirement Plans

 ICICI Pru Life Link Pension Sp

Traditional Retirement Plans

 ICICI Pru ForeverLife

 ICICI Pru Immediate Annuity

Group Plans
Group Insurance Plans from ICICI Prudential enable the employer to effortlessly
provide his/her employees with both, savings and security, so they can pass on the
benefits to their loved ones.

Retirement Solution

 Group Gratuity Plan

 Group Leave Encashment Plan

Protection Solution

 Annuity Solutions

26
  Group Term Insurance Plans
 Group Term in lieu of EDLI Scheme
 Credit Assure Utility

Rural Plans

ICICI Prudential's rural business initiative has covered more than 2.5 million lives
across as many as 16 states in India. The plans offer Life cover, low and affordable
premiums and hassle free procedure.

 ICICI Pru Sarv Jana Suraksha

 ICICI Pru Anmol Nivesh

"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,

27
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.

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. Let’s start from
where it all began.

28
 We are all
surrounded by a vast amount of advertising. Nearly everybody, therefore, has some
thoughts on the subject. The tendency is to judge advertising as good or bad, to
single out advertisements that one likes or dislikes, to wonder if advertising is worth
the large sums of money spent on it, to question the contribution advertising makes
to social welfare, and so on. Advertising research also aims to answer these
questions in academic ways mainly within the fields of social science. The social
simulation research community has developed rapidly in recent years. Computer
simulation has proved useful for modelling phenomena of traditionally social
scientific interest. This work is to use agent-based social modelling and simulation
approach to evaluate the effectiveness of advertising

“Advertising effectiveness means different thing to the group responsible for its
different effect . to the writer or to the artist , effective advertising is that which
communicate the desired message . To the media buyer , effective advertising is that

29
which reach the prospective buyer a sufficient number of the times. To the
advertising or marketing manager , effective advertising is that which together with
other marketing force ,sells his brand or product. To the general manager , effective
advertising produces a return on his firm expenditure” “ in fact , effective advertising
must achieve all four goals and delivering message to the right audience, there by
creating sales at a profit. Most advertiser begun only recently to set goal in all four
area and measure progress toward them. Some advertiser set communication and
audience goals, and measure copy and media effects, but few set a dollar goals and
measure sales and profit effects.

The result is that advertising has rarely been a part of corporate planning. Thirty
year ago management ask the same question they ask today : is my advertising
working and what impact dose it has on my sale? can it be measured? Can our
advertising and promotion made accountable in same manner as on which
evaluates all of the other investment by our company?

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

30
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

Advertisements convey brand differentiation and this may be important in several

categories, which consist of several brands. In FMCG products like tea, coffee and
detergents, “differentiation awareness” can be created by television advertising, but
in certain categories there may be a need to demonstrate the effectiveness of
brands. Differentiation with which consumers cannot “connect” may have a negative
implication and if a brand “connects” consumers with its differentiation, it is likely to
also differentiate itself in terms of getting identified with the consumer. A detergent or
a washing machine, which claims “low water consumption” has to demonstrate this
claim at a retail outlet especially given the fact that the quality of water varies across
areas even in a specific geographical region. It is also essential that a good
“differentiation proposition” result in a positive word-of-mouth.
In a certain situation, the company may have two offerings in a product-line and
there is a need to differentiate them clearly depending on the target segments
involved. This is a complex situation where differentiation decides the growth of the
brand and the perceived difference between the offerings. An added layer to the
complexity is the same brand name being used for the offerings. Fairness cream is a
category in which the benefit is the fairness of the complexion. A brand like Fair and
Lovely built over the years still has a strong association with the category but under
tremendous pressure from competitive brands and the most important criteria which
these brands is the herbal touch associated with them. Herbal ingredients are
becoming popular with consumers in several categories and personal care in India
has a strong tradition of herbal care. Fair and Lovely had to launch its herbal variant
(it used the same brand probably because of the brand equity built up over the
years). The interesting fact is the differentiation being conveyed by advertising. The
original version uses an aspiration route in which the brand’s ultimate benefit is
success through confidence.

31
Estimates based on China's current per capita Consumption, the Indian FMCG
market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. The
dominance of Indian markets by unbranded products, change in eating habits and
the increased affordability of the growing Indian population presents an opportunity
to makers of branded products, who can convert

consumers to branded products.

Penetration level in most product categories like jams, toothpaste, skin care, hair
wash etc in India is low. The contrast is particularly striking between the rural and
urban segments - the average consumption by rural households is much lower than
their urban counterparts. Low penetration indicates the existence of unsaturated
markets, which are likely to expand as the income levels rise. This provides an
excellent opportunity for the industry players in the form of a vastly untapped market.
Moreover, per capita consumption in most of the FMCG categories

(including the high penetration categories) in India is low as compared to both the
developed markets and other emerging economies. A rise in per capita consumption,
with improvement in incomes and affordability and change in tastes and preferences,
is further expected to boost FMCG demand. Growth is also likely to come from
consumer "upgrading", especially in the matured product

categories

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.

32
 However, during the first year of the entry of new players, while LIC reported a
growth of over 250%, private insurers managed to garner only about 0.5% market
share, in spite of spending hefty amounts on advertising and promotion.
According to reports, LIC’s business increased mainly because of the increased
public awareness about insurance, which was brought about by the heavy
advertisement campaigns of private players.

Advertising effectiveness can be defined as the extent to which advertising

generates a certain desired effect. Measuring the effects of advertising is very
important, given the amount of investments needed for advertising. While it is not
possible to obtain a global measure of the advertising effectiveness, we should seek
to develop and apply methods and measures for a partial verification of results.
Regarding the difficulty of measuring the overall effectiveness, we believe that it is
due essentially to the following considerations:

 advertising interacts with other business variables (behavior, marketing

policies, financial decisions etc.) and environmental variables (competition,
economic conjuncture etc.), hardly isolable;

33
  the effects of advertising are varied and not always translatable into
quantitative terms;
 advertising causes long-term effects, not always, therefore, the results occur
in the same period in which are the costs.

In literature and practice the evaluation of advertising effectiveness has used two
basic models:

 the dichotomous model;

 the three-dimensional model.

The dichotomous model is applied mainly in product and brand advertising, tending
to isolate and evaluate separately the following:

 sales effect;
 communication effect.

The sales effect refers to the assessment of the capability of advertising to affect the
sales volume and/or the market share, regardless of the possible influence of other
variables. For Batra et al. (1995), the effectiveness of advertising should be
considered for its effect on sales in the short term. This advertising performance
measurement is based on the marginal theory (Chamberlin, 1948). The advertising is
therefore regarded as an independent variable that can be combined with other
marketing variables to have a certain effect on the dependent variable, i.e. sales.
The aim is to seek the best combination of the determinants of the sales increase.

The effect of communication refers to the ability to reach, with appropriate

messages, a more significant share of public. Such effect is examined in literature
with different approaches:

 sociological;
 semiotic;
 psychological;
 socio-psychological.

34
Sociological analysis focuses on the community, considered as a system governed
by rules and social norms, and on the social behavior (Moingeon, 1993). The role of
advertising and consumption in the society change is a very fertile topic. Sociology
has examined how advertising influences opinions, attitudes and behaviors of
individuals and social groups.
There are two opposite sociological perspectives to the advertising function in
contemporary society. The first maintains a positive approach to advertising. It is
believed that the role advertising is to better organize economic and social relations,
to harmonize social behaviors, to make people adhere to common values and to
help them to better live together without problems. The second approach is, by
contrast, rather critic, because advertising tends to generate a mass consumption. In
order to adapt messages to a wider audience, introduces new, poorly differentiated,
symbolic values (Friedman, 1979).

The semiotic analysis focuses in the first instance, on symbols. These are identified
as anything that conveys meaning, e.g., words, gestures, images, and dance.
Semiotics studies the problem of encoding, and more generally of the code used.
The object of investigation is the message itself containing different signs that can be
interpreted according to a preestablished intention, without reference to the
consumer and the influence on the consumer behavior. This approach is useful
especially in the context of advertising creation. Authors assess the effectiveness of
advertising in reference either to the language of the message (Barthes, 1964;
Durand, 1964) or the graphic image of the message (Eco, 1979; Mick, 1986; Scott,
1994). However, they analyze the quality of message from the viewpoint of its
construction, its presentation and the place of the communication process. The
impact of the message on the recipient is a minor problem in the process of the
message evaluation. This is an important limitation to the semiotic approach in terms
of marketing.

Communication in general and advertising in particular, were treated by

psychologists starting from the motivations of recipients, which occupy a central
position in the analysis. This is because of their influence on the perception of the
recipient (Mittelstaedt, 1990). They believe that the motivations drive consumer

35
behavior. So the purpose for the advertising creator, is to identify the reasons of
consumer behavior, in order to identify the most effective advertisement message or
to remove the communication barriers. With the psychological approach, other types
of research and investigation have emerged, thanks to the contribution of
neuroscience. The evidence (obtained through scientific experimentation) has
become a necessary support to verify the assumptions. The psychological approach
has the advantage to measure the effectiveness of advertising with reference to the
recipient of the message, particularly to the consumers’ characteristics. On the other
hand, the approach does not provide exhaustive answers, not delving into the exact
causes that lead the recipient of the message publicity to expose themselves
voluntarily to the message, decode it, to store and, eventually, to make the purchase.
So it is not taken into account the entire communication process, and, in particular,
the external factors, especially those related to the environment, that may play a
crucial role in determining the behavior of the recipient.

The socio-psychological approach takes simultaneously into account the message

and the recipient of the message. This approach aims to study the effectiveness of
advertising in terms of persuasiveness (Ray, 1982), observing the effects on the
formation process of attention, memory, attitude and behavior (Kapferer, 1990). This
research methodology considers the environment of the communication process and
its actual interactions. The experimentation is widely used. It also allows to consider
all hypotheses tested together, and all the links that may exist between variables,
through a pre-test, getting an advantage in terms of validity of the research. Rather
than focusing solely and exclusively on direct effects of certain variables taken
individually, that is difficult to control in reality, this approach studies the actual
contribution of these variables in explaining the evolution of the dependent variable,
sales.

The major criticisms to the dichotomous model concern the partial evaluation and the
inability to provide reliable breakdowns of the effects achieved by advertising and by
other company politics (marketing and communication). For these reasons,
sometimes, the three-dimensional models (i.e. AIDA model and model Dagmar) are
preferred. These models are used both in planning advertising campaigns and

36
evaluating their effectiveness. They propose a hierarchy of communication effects,
cognitive affective and behavioral (Brasini et al. 1993; Marbach and Fabi 2000).
Namely the analysis of cognitive dimension concerns the messages understanding
and storing and must take account of different types of memory: spontaneous recall,
without any added indication; stimulated recall, facilitated by the presentation of
certain evidence; related memory, when respondents are able to describe at least
one specific element of the communication; recognition, or identification of the
advertising; brand allocation, the memory not only of the advertising but also of the
advertised brand).
The affective dimension is linked to the attitude toward and perceptions of
communication. Affective reactions and emotional acceptance of that type of
campaign are investigated. The affective attitude towards the images proposed and
the spread opinion of consumers is detected.
The behavioral dimension describes changes in buying behavior, detectable by
intentions and actions measured by sales and market share.

All the models mentioned so far are mainly focused on three elements of the
communication process: the recipients (in terms of audience, memory, storage), the
media used (in terms of impact, coverage, frequency, etc..) and the feedback (in
terms of attitudes, behaviors, opinions, etc...). They totally omit other elements
(source, code, context) assuming essentially that the communication process was
conducted in optimal conditions or at least without distortion. Moreover a
fundamental element for an effective communication process is the use of the same
code by the source and recipient. Otherwise, the recipient will not understand the
message or give a different meaning and this will lead to the phenomenon Eco called
"aberrant decoding". However, since as stated by Watzlawich the message is what
we understand, not what it was intended to understand, it becomes important to
examine not so much and not only what the firms wanted to communicate, but what
was actually communicated.

37
OBJECTIVE OF THE STUDY

38
 OBJECTIVE OF THE STUDY

 To know the most effective media of advertisement

 To find out the reason of liking the advertisement of ICICI
 To know how they survive in the cutthroat competition.
 To know the promotional strategies of ICICI prudential
 To know how they face their competitor’s strategies.
 To know number of new player has entered the market and are viewing to
gain the market share in this rapidly improving market.
 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 brand-building, brand
re-call and finally the choice of a plan while buying it.

39
PROBLEM AND SCOPE

40
 Problem & scope of the study

Problem area:

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 sceptical about
them.

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

41
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.

It is a known fact that an average consumer is bombarded with so many brands that
he/she cannot remember. In order that product should get through the clutter it is
believed that a single selling message has to be repeated for a large number of
times. Thus the most significant problem with the USP approach to advertising is that
it requires a large media budget to repetitively air the advertisements and such ads
often annoy consumers. And hence instead of creating a consumer base it may drive
away the potential customers as against this, UCP by itself provides solutions to all
the marketing problems poised by the widely accepted USP approach. Basically it
aims at the core of the problem. It eliminates the problem from the roots rather than
periodic trimming of the tree.

Bridge positioning can play a role in bridging the gap between customer perception
and product USP by relying more on UCP than USP based positioning statement.
Objectives: Objective of the study was to find out finer points of developing bridge
positioning statement and how it can bridge the gap between the UCP and USP. The
study further focused on how bridge positioning can be validated in terms of sales.

42
A USP is that distinct and appealing idea that sets your business favorably apart
from every other generic competitor. While A UCP is that distinct and appealing idea
that is built on customers’ perceptions that sets business favorably apart from every
other generic competitor. Brands which had high success has USP=UCP. This
means positioning statement helps to have better brand recall. Thus, Bridge
positioning statement helped to bring brand come nearer to the customers.
Application of bridge positioning helped to generate better sales and achieve status
of leader brands. UCP and USP matching makes the brand recall better and the
positioning statement in these cases can be called Bridge Positioning.

It is quite obvious that only the clear and well-defined USP is not the panacea for all
marketing ills. Today’s trying economic conditions have forced difficult decisions on
companies. Most are making conservative decisions that reflect a survival mode in
business operations. During these difficult times, understanding what customers
think on continuous basis is critical for survival. Most marketers assume the product
USP to stay constant overtime that is contrary to reality. Companies may have to
change the USP to stay contemporary and relevant. It is obvious that there has to be
another parameter that makes a success of the product. What companies need to
understand is product’s UCP. UCP by itself provides solutions to all the marketing
problems poised by the widely accepted USP approach. Basically it aims at the core
of the problem. It eliminates the problem from the roots rather than periodic trimming
of the tree.

If an Organization fails to recognize the customers’ perception then the initial surge
of customers would quickly come to a screeching halt and the brand would fade into
obscurity along with the organization. On the other hand, following customer’s
perception not only offers an emotionally positive solution to their needs but also
serves to enhance the current customers’ perception of the brand. Following this with
an excellent product/service and customer support will leave an indelible mark on the
existing customer’s memory, which will create brand loyalty. Bridge positioning was
validated in studies by Srivastava(2005) and Srivastava (2006) by trying Natrilix-SR
and Mountain Dew as a test case.

43
Selection of the brand: Mountain Dew, a lemon drink, with the USP “The Spirit of
Adventure - Do the Dew” is marketed in India. However, this USP failed to position
Mountain Dew in the minds of the consumers as an adventure drink. This was
reflected by stagnant sales of Mountain Dew in the market.

Similarly, Natrilix-SR a diuretic widely used in India was stagnating and not showing
enough growth.

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.

However, during the first year of the entry of new players, while LIC reported a
growth of over 250%, private insurers managed to garner only about 0.5% market
share, in spite of spending hefty amounts on advertising and promotion.
According to reports, LIC’s business increased mainly because of the increased
public awareness about insurance, which was brought about by the heavy
advertisement campaigns of private players.

44
Scope to:

The study:

A big boom has been witnessed in Insurance Industry in recent times. A large
number of new players have entered the market and are vying to gain market share
in this rapidly improving market. The study deals advertisement given by
Insurance Companies. The study then goes on to evaluate and analyze the findings
of these advertisements so as to present a clear picture of media strategy the
Insurance players.

The company:

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

The industry

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

45
The researcher

To facilitate and provide all the useful information of the study, the company, the
insurance industry and also provide marketing ways, methods of ICICI Prudential
Life Insurance Co

46
REVIEW of LITERATURE

47
 Review of literature

1.Media exposure in rural market

The rural middle-class constitutes a potential market lying to be tapped by any

industry. There are 16.4 million urban middle-class households and 15.6 million
rural middle class households in the country, but the latter had a better
purchasing power because they do not incur any expenditure on rent,
transport and school fees, compared to their urban counterparts, who spend a
sizable portion of their income on these items.

The estimated annual business from rural markets was Rs 1,23,000 crore,
comprising Rs 65,000 crore of FMCG, Rs 5,000 crore of durables, Rs 45,000 crore
of agricultural inputs including tractors and Rs 8,000 crore of two-wheelers and four-
wheelers. 29% of the rural people own cars, 27%t own colour televisions, 24%
own refrigerators and 10% own washing machines, which points to the untapped
potential in the rural areas. Another revealing aspect of the market is that 55%
of the LIC policies, 50% of the

48
BSNL mobile connections, 53% of the FMCG products, 59% of durables,
60%of Rediffmail sign-ups and 50% of online shopping on Rediffmail are
accounted for by the rural sector.

TV impact: The dressing style of the rural people has also changed due to the impact
of the TV. Studies revealed that TV advertisements are not understood by the rural
people who think "they are for the rich". "Being sensitive and relevant to the
requirement of the region should be of utmost importance in the choice of products,
packaging, pricing, promotions, markets and communication,"

 Johnston, Jarrod and Madura J. “Valuing the potential transformation of banks

into insurance service conglomerates: Evidence from the Citigroup merger” The
Financial review 35 (2000): 17-36.
The authors first summarize previous literature that examined motives for
combining bank and other insurance services. Diversification benefits and
product complementarities (i.e. mortgage and mortgage insurance, auto
financing and auto insurance) seem to be the prime motives. However, some
earlier research also suggests that there are few linkages between bank
services ands underwriting services in terms of customers, outlets, or other
characteristics that generate efficiencies. Given the sources of potential gains,
it appears that life insurance companies with their limited underwriting risk and
wide variety of other products offered to individual customers would be more
attractive targets for banks than other types of insurance companies.
Based on these observations, the authors propose to test whether commercial
banks, insurance companies, and advertisement firms were favorably affected
by the Citigroup/Travelers merger for impending consolidation of financial
services firms. They measure the valuation effects resulting from the merger
announcement among those commercial banks and financial services firms
most likely to be affected and conclude that commercial banks, insurance
companies, and advertisement firms have all experienced positive and
significant valuation effects upon the announcement of the Citigroup merger.
However, the authors find that the valuation effects are more favorable for
brokerage firms than for commercial banks and for insurance companies.
Finally, the authors perform a cross-sectional analysis which concludes that the
largest banks and the largest brokerage firms experience more favorable
valuation than the smaller banks or smaller brokerage firms. Size does not
seem to be significant for insurance companies
 Walker, Marcus (2002). “Germany’s Commerzbank Is Still in No Man’s Land.” The
Wall Street Journal, 7/12/02.
This article on the state of the Commerzbank mentions that tightly focused
insurance with strong market shares, such as U.K. insurasnce banks, have
made money. Diversified universal banks with no dominant market share such
as Commerz bank or Frankfurt rival Dresdner Bank AG have slipped to losses
in some quarters, raising doubts about their long term viability.

49
Elisabetta Corvi

Associate Professor of Economics and Business Management

University of Brescia

corvi@eco.unibs.it

Michelle Bonera (corresponding author)

Assistant Professor of Economics and Business Management

University of Brescia

mbonera@eco.unibs.it

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 confidence that
''here is a company that can be trusted to invest funds with.''

50
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 Life Time.

Affect of advertising in brand building:

Brand building through corporate advertising, defined generally as advertising

that benefits a company’s image by emphasizing its own resources, skills
and/or character. Many astute business people now recognize corporate brands
as fundamental business assets, and have begun reaching out to customers,

51
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.

52
RESEARCH METHODLOGY

53
 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.

Methodology adopted

Questionnaire design:

The questions were designed in an easily understandable way with the help of
(Faculty Guide) .That the respondents may not have any difficulty in answering
them. The questionnaire also contained a comments section. This section was
included so as to get opinion of the people regarding the ICICI Prudential Life
Insurance. For eg.

(Q1.) Which media you mostly use for information?

(Q2.) On which channel you saw insurance ad mostly?

Random sampling

Sampling can be defined as a part of population. Thus random sampling may be

defined as the selection of a portion from the whole population in which each
elements of the population has an equal chance of being selected. A more please
definition is that each element in the population has a non-zero and known
probability of selection a randomly drawn sample is an unbiased sample. In this
research survey 50 people were surveyed at random to get the relevant
information..

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

Sample size: The sample size was restricted to only 50 between age group
of 25-40, which comprised of mainly peoples from different regions of India.

54
Sample area: The area of the research was Delhi Metro Railway Quarters, New
Delhi, India.

Data collection

Structure 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.

Interview:

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

Secondary data collection:

Various websites were consulted to collect literature relevant to the topic.

Interpretation:

Interpretation refers to the task of drawing inference from the collected facts
after an analytical study, in fact it is a search for broader meaning of research
findings it is through interpretation that the researcher can well understand the
abstract principle that respondents beneath his findings. The simple statistical tools
will used to analyze the data collection, Bar Graphs and pie chart have been
used to illustrate the findings diagrammatically. The scores for advertisement
were compiled on spontaneous recall, aided recall and likeability. The top ads
are selected on the basis of their score.

55
DATA ANALYSIS

56
Data Analysis

It includes advertisement scenario of insurance industry in the soaring mass

market available in India based on the survey conducted

1) Q1. Which media you mostly use for information/entertainment?

Percentage Responses

Tele Vision 42.0 21

Newspaper 36.0 18

Internet 14.0 7

Radio 8.0 4

Total responses: 50

media

radio
internet 8% tv
14% 42%

news paper
36%

36% people recommend newspaper for info. 42% tv, 14% internet and and 8% radio.

57
Q2. How often do you share interesting advertising with your family or friends?

Percentage Responses

Never 8.0 4

Rarely 28.0 14

Sometimes 52.0 26

Often 8.0 4

Very often 4.0 2

Total responses: 50

Advertising
very often
4%

often never
8% 8%
rarely
28%

sometimes
52%

According to the above fig. 52% sometime like to share with friend and family, 28 % rarely share 8%
often and 8% never.

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Q3. Have you saw any Life Insurance Product Ad?

Percentage Responses

Yes 96.0% 48

No 4.0% 2

Total responses: 50

LIC ad

no
4%

yes
96%

96% people like seeing lic ad and there are very few who didn’t see.

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Q4. On Which channel you saw Insurance ad mostly?

Percentage Responses

Zee T.V 14.0 7

Sony 26.0 13

Star 4.0 2

News Channel 56.0 28

Total responses: 50

channel

zee tv
14%

sony
news channel 26%
56%

star
4%

56% likely to see insurance ad on news channel. 26% on sony tv 14% on zee tv.
And 4% on star...tv.

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Q5. Which company ad you find mostly? Rank Them..

Average Score Responses

Life Insurance Corporation of India 1.22 / 5 50

HDFC Std. Life Insurance Co. Ltd. 2.84 / 5 50

Birla Sun Life Insurance Co. Ltd. 3.96 / 5 50

ICICI Pru. Life Insurance Co. Ltd. 2.16 / 5 50

Reliance Life Insurance Co. Ltd. 4.82 / 5 50

4.82 / 5

LIC of india
8%
RELIANCE LIFE HDFC
32% 19%

ICICI PRU. BIRLA SUN LIFE

14% 27%

Above fig. Say that27% people mostly find birla life insurance 14% icici 32% reliance life
insurance 8% lic of india and 19% hdfc....

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Q6. Can you recall the content of the Ad of any life insurance company?

Percentage Responses

Yes 94.0% 47

No 6.0% 3

Total responses: 50

ADVETISEMENT

NO
6%

YES
94%

Above fig. Say that The punch line of ad were so exiting that 94% people can easily recall
the ad. And 6% not.

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Q7. Before buying a product do you pay attention to the Brand Name?

Percentage Responses

Yes 80.0% 40

No 20.0% 10

Tot al responses: 50

ATTENTION

NO
20%

YES
80%

Above fig. Say that 80% say yes paying attention on brand and 20% say no.

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Q8. Which of the Insurance Policy would you like to buy?

Average Score Responses

Life Plan 1.66 / 4 50

Health Plan 2.36 / 4 50

Child Plan 2.28 / 4 50

Retirement Plan 3.70 / 4 50

1.70 / 4

insurance policy

Life plan
16%
retirement plan
37%
health plan
24%

child plan
23%

In today scenario we find the people were more secure about there child future plan that why 23%
of people focus on child plan and 37% on retirement plan. 17% on life plan 23% on health plan.

64
Q9. Other than T.V Where you saw Life insurance ad?

Average Score Responses

Internet 2.14 / 5 50

Newspaper 1.36 / 5 50

Holdings 2.78 / 5 50

Friends/Family 4.10 / 5 50

Radio 4.62 / 5 50

4.62 / 5

lic ad.

internet
radio
14% newspaper
31%
9%

holding
19%
friends/family
27%

Above fig. Say 31% see the ad on radio 14% on internet 9% on newspaper and 27% through friends
and family .

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Q10. Do you think this ad has influence you to.....

Percentage response

Buy the insurance policy 60% 45

Recommend the insurance policy 20% 10

Suggest the insurance policy 15% 5

Would you like to inform 5% 2

Would you like to

inform
5%
Suggest the
insurance policy
15%

Recommend the
insurance policy Buy the insurance
20% policy
60%

Above fig. Say that 60% were influence to buy the insurance 20% recommend policy 15%
suggest and 5%like to inform.

66
Q11. Can you recall if your family members ever tried to influence you to
buy/secure a life insurance Policy from the insurance company of her interest?

Percentage response

Yes 80% 66

No 20% 10

n0
20%

yes
80%

Above fig. say that 80% of family member influence us to buy a insurance of own interest
and 20% not....

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Q12. Based on the feature ad in that ad rank them....

percentage response

The ad msg is understandable 66% 42

The ad msg is relevant to me 11% 24

The ad is reliable 18% 18

The benefit describe in the ad are believable to me... 5% 3

The benefit
describe in the ad
are believable to
me...
5% The ad is reliable
18%

The ad msg is
relevant to me
11% The ad msg is
understandable
66%

Above fig. Say that 66% people can easily understand the message and for 18% ad is
reliable 11% say it relevant to me and 5% say benefit describe in is believable to me....

68
USE AND IMPORTANCE OF STUDY

69
Use and importance of study

 To know the benchmark between insurance company

 Increase the effectiveness of the company

 Can help in increasing the efficiency of the advertisement of the ICICI

prudential life insurance.

 Help in better knowing the customer demand and also increasing the

customer relation.

 The Authority shall be informed at the time of filing the advertisement the

extent of change the original advertisement Insurance company

advertisements.

 Every insurance company shall be required to prominently disclose

in the advertisement and that part of the advertisement that is required to

be returned to the company or insurance intermediary or insurance

agent by a prospect or an insured the full particulars of the insurance

company, and not merely any trade name or monogram or logo.

 Where benefits are more than briefly described, the form number of the

policy and the type of coverage shall be disclosed fully.

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SUGGESTION

71
 Suggestion
:
In the preceding part of the report we have seen that people already have

awareness about the company but they are not aware about products of the ICICI

Prudential Co. Ltd; therefore the main objective of the company should be to:

 Create awareness among people about its products and tell the

benefit of having product of ICICI Prudential.

 Build a strong repo and credential in the market so asto counter

main rival LIC.

 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.Humor and endorsement of celebrities is some of the routes available

to this.

 Rural India is very big and untapped market full of opportunities. Therefore in

order to do so 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 “

Puppetry, Nautanki ,Tamasha etc.” 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.

72
 We should use correct media mix and appropriate channels in order to reach

maximum people and convey message to them

73
CONCLUSION

74
conclusion

In concluding part of this project it shows that advertisement is very much important
for any business but advertisement alone do not account for company’s success.

•From the above findings, we come to know that life insurance companies have very
good visibility. Most of the time people are able to recall the advertisements. People
notices majority of advertisement on Television followed by Newspapers. The role
of other media such as Internet, Radio, etc. needs be enhanced and groomed along
with T.V and Newspaper. Media such as internet, telephone and family/friends can
be used with great deal in the advertisement because it has greater impact on the
user due to its interactive nature.

•In television channels, entertainment channels lead in the frequency of life

insurance ads. They have also greater relative visibility in comparison of other
channels therefore advertise r needs to identify the proper slot and timing for their
advertisements according to their budget.

•In the content part of ads, people agrees that they understandthe advertisement
shown but they don’t find relevancy and somewhat have not bee n prompted by
those ad to buy thepolicy. Therefore, efforts should be made to make advertisements
more trustworthy and innovative so that peoplecan be persuaded to buy the policies.
Each ad should speakabout how their firm’s offers can help customers instead
of telling how insurance as a whole can help you.

•On the frequency part, HDFC standard life insurance company leads in the
advertisements. ICICI Prudential closely follows with slightly lesser points. But when
talking about company ranking according to the perception of the peoples,
ICICI Prudential leads in the table. Here HDFC is at third position next to the Tata
AIG. So, we can judge that number or frequency of the advertisement is not enough
to make favorableimage for the companies; there are some other factors alsowhich
are responsible for company’s credentials. So, companyshould have better public
relation, public awareness programand strong corporate philanthropy to have
positive image inpublic and sell their products

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 Secondary data

Websites :
http://www.iciciprulife.com

http://www.managementparadise.com

http://en.wikipedia.org/wiki/icici_prudential

magazine :
1. forbes,
2. india today,
3. outlook
4. business week
5. business today
6. business india

journal:
1. international management
2. Indian journal
3. Sage india

76
BIBLIOGRAPHY

77
 BIBLIOGRAPHY

BOOKS

i Kothari C.R. (2004), “Research Methodology Methods and Techniques”,

N. Delhi, New Age International Publication

ii. Green, Paul, Tull (2002) “Research for MarketingDecisions”, N. Delhi, Prentice-Hall of
India

iii. Sharma D.D. (2008), “Marketing Research: PrincipleApplication & Cases” N. Delhi,
Sultan Chand & Sons

iv . Belch, Mandelchge (6thEdition, Tata McGraw Hill),Advertising and Promotion.

v. Batra (5thedition, Pearson Prentice Hall) Advertising Management.

vi. Kotler P. (1999), “Marketing Management”, N. Delhi,Prentice-Hall of India.

vii. Jha S.M. (2003), “Services Marketing”,N. Delhi, Himalaya Publishing House
.
viii. Bitner M.J. (2008), “Services Marketing” N. Delhi, TataMcGraw-Hill
.

WEBSITES
:

http://www.iciciprulife.com ii.

http://www.managementparadise.com iii.

http://www.businessworld.in iv.

http://www.outlookindia.com v.

http://en.wikipedia.org/wiki/icici_prudential vi.

http://www.irdaindia.org vii.

http://www.business-standard.com

Magazine

(forbes, india today, outlook)

78