Topic- advertisement effectiveness study with reference to life insurance Company- Life Insurance Corporation of India

Direct Mail: Is the sending of publicity material to a named person within an Organization Message & Media Strategy An effective communication campaign should comprise of a well thought out message Strategy. Companies with effective message strategies include: The slogan of LIC is "Zindagi ke saath bhi. The art of good public relations is not only to obtain favorable publicity within the media. By personalizing advertising. What message are you trying to put across to your target audience? How will you Deliver that message? Will it be through the appropriate use of branding? Logos or slogan design. Media strategy refers to how the organization is going to deliver their message. response rates increase thus increasing the chance of improving sales. Could Involve using money off coupons or special offers. What newspapers does their target market read? What TV programmers do they watch? Effective targeting of their media campaign could save the company on valuable financial resources. The message should reinforce the benefit of the product and should also help the company in developing the positioning strategy of the product. but it is also involves being able to handle successfully negative attention. An organization promotional strategy can Consist of: Advertising: Is any non-personal paid form of communication using any form of Mass media? Public relations: Involves developing positive relationships with the organization media public. What Aspects of the promotional mix will the company use to deliver their message strategy? Where will they promote? Clearly the company must take into account the readership and general behavior of their target audience before they select their media strategy. . Sales promotion: Commonly used to obtain an increase in sales short term.Zindagi ke baad bhi" ICICI PRUDENTIAL: Jeetye Raho Om Kotak: µJeene ki azaadi¶ Nike: Just do it. Personal selling: Selling a product service one to one.EXECUTIVE SUMMERY Successful product or service means nothing unless the benefit of such a service can be communicated clearly to the target market.

magazines. the desired result is to drive consumer behavior with respect to a commercial offering. To the advertising or marketing manager.Research Objectives A) Primary Objective a) To understand & measure the impact of advertising in the market. effective advertising must achieve all four goals. The result is that advertising has rarely been a part of corporate planning. To the general manager. To the media buyer. Some advertisers have set Communications and audience goals. b) To measure the effectiveness of advertisement / promotional activities for a particular product class and corporate advertising. To the writer or artist. ideas. Advertising effectiveness means different things to the groups responsible for its different effects. radio. thereby creating sales at a profit. and measured copy and media effects. religious organizations and governmental agencies. although political and ideological advertising is also common. c) To know how they survive in the cutthroat competition Introduction Advertisement is a form of communication used to persuade an audience (viewers. effective advertising produces a return on his firm¶s expenditure. readers or listeners) to take some action with respect to products. Commercial advertisers often seek to generate increased consumption of their products or services through "branding. brand Re-call and finally the choice of a plan while buying Secondary objective a)To know the promotional strategies of Life insurance corporation of india. Non-commercial advertisers who spend money to advertise items other than a consumer product or service include political parties. effective advertising is that which reaches prospective buyers a sufficient number of times. Advertising messages are usually paid for by sponsors and viewed via various media. or new media such as websites and text messages. interest groups. Most advertisers have begun only recently to Set goals in all four areas and measure progress toward them. together with other marketing forces. Most commonly. b) To know how they face their competitor¶s strategies. C) To understand and measure the affect of advertising in brand-building. delivering messages to the right audience. effective advertising is that which. outdoor or direct mail. such as a public service announcement. effective advertising is that which communicates the desired message. including traditional media such as newspapers." which involves the repetition of an image or product name in an effort to associate certain qualities with the brand in the minds of consumers. but few advertisers have set dollar goals and measured sales and profit effects. television.´³In fact. Thirty . or services. Nonprofit organizations may rely on free modes of persuasion. sells his brand or product.

This may explain why so many from both the client and agency sides remain of the opinion that it can¶t be done. People are only beginning to wake up to its vast possibilities. This data can be exported to take decision for promotional strategy across the industry. This requires involvement of both sales and marketing management advertising/promotions supplier coordinating their efforts with the researcher. is already integral to nearly every brand leader.years ago. . and you can do it as well. There are methods to test every aspect of marketing promotion. 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 Industry This is a limited study which takes into consideration the responses of 120 people. The study deals advertisement given by Insurance Companies. Let¶s start from where it all began. In fact. Scope to The Study A big boom has been witnessed in Insurance Industry in recent times. The results will also help the company to trace the loop holes and then take the corrective measures to rectify them. and analytical tools to establish a direct relationship to sales for complete Accountability. The key to this is applying a full advertising research curriculum. 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. A large number of new players have entered the market and are vying to gain market share in this rapidly improving market. The Significance for the industry lies in studying these trends that emerge from the study. The fact is that a full curriculum can be implemented. It is a rapidly changing and evolving sector. It just takes a little planning and co-operation. A study like this can attempt to guide the future of the industry based on current trends. the techniques to deliver this degree of accountability and control have been around for more than 50 years and are industry standards. sales support and media mix. It is a partnership. 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.

CHAPTER 2 Industry profile .

It also funds close to 24. The aggregate effect of these events led to a high rate of bankruptcies and liquidation of life insurance companies in India. Headquartered in Mumbai. A bill was also introduced in the Legislative Assembly in 1944 to nationalize the insurance industry. providing the first regulatory mechanisms in the Life Insurance industry. financial and commercial capital of India. The Bombay Mutual Life Assurance Society. the Life Insurance Corporation of India currently has 8 zonal Offices and 101 divisional offices located in different parts of India. at least 2048 branches located in different cities and towns of India along with satellite Offices attached to about some 50 Branches. formed in 1870.2 million agents for soliciting life insurance business from the public. and contributed around 7 % of India's GDP in 2006. and has a network of around 1. The Life Insurance Act and the Provident Fund Act were passed in 1912. was established in Calcutta in 1818 by Bipin Bernard Dasgupta and others. . It witnessed. Life Insurance Corporation of India. the first corporate entity in India offering life insurance coverage.Life Insurance Corporation of India (LIC) (ê÷íâùì Úùðæ éùë÷ æÕë) is the largest state-owned life insurance company in India. Other insurance companies established in the pre-independence era included y y y y y y y y y Bharat Insurance Company (1896) United India (1906) National Indian (1906) National Insurance (1906) Co-operative Assurance (1906) Hindustan Co-operatives (1907) Indian Mercantile General Assurance Swadeshi Life (later Bombay Life) The first 150 years were marked mostly by turbulent economic conditions. The first half of the 20th century also saw a heightened struggle for India's independence. and in between them the period of worldwide economic crises triggered by the Great depression. It was founded in 1956 with the merger of more than 200 insurance companies and provident societies. was the first native insurance provider. The Indian Insurance Companies Act of 1928 authorized the government to obtain statistical information from companies operating in both life and non-life insurance areas. which commanded a monopoly of soliciting and selling life insurance in India. and it charged Indians heftier premiums. It has assets estimated of 9.6% of the Indian Government's expenses. adverse effects of the World War I and World War II on the economy of India. It is fully owned by the Government of India. This had adversely affected the faith of the general public in the utility of obtaining life cover.31 trillion (US$206.68 billion). Europeans in India were its primary target market. The subsequent Insurance Act of 1938 brought stricter state control over an industry that had seen several financially unsound ventures fail. India's First War of Independence. The Oriental Life Insurance Company. created huge surpluses. and also the country's largest investor.

5 for a US $ . In addition there has been a vast increase in the coverage of insurance.Zindagi ke baad bhi"in hindi. 5. LIC has already invested R5000 crore since April.with India being among the top three life insurance markets in the world and among the top 15 non±life insurance markets. EXPENDITURE 1000 200 150 146 . insurance companies spent 70%of what was spent in the whole of 2009.3% in 2001 to 5. Last year the corporation had sold 3. which started its business with around 300 offices. with the progress aided by the dramatic shift in the availability of products. insurance. LIC plans to adopt a changed marketing strategy and is targeting 4. Across the world.000 crore of its total investment kitty of R2. 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.000 crore worth of premium and R42. In english it means "with life also. the insurance industry is expected to reach $350-400 billion by 2020. has grown to 25000 servicing around 180 million policies and a corpus of over 8 trillion (US$177. According to a BCG report. Print. huge hoardings and costly electronic media advertisements. electronic and outdoor advertisements of the new private insurers flooded could be seen everywhere.6 billion). The report estimates the total insurance premium at approximately R17 lakh crores to R22 lakh crore in 2020 with life insurance premium being between R15 lakh crore and R20 lakh crore. LIC currently has just under a 70% share of the life insurance premium market with private sector players together accounting for the rest. COMPANY Lic Allianz Bajaj Om Kotak Mahindra ICICI Prudential Source: ICMR. 1 Service Brand of the Country.15 lakh crore in the stock markets this year. The recent Economic Times Brand Equity Survey rated LIC as the No.after life also.6 million policies and a corpus of INR 459 million (US$ 92 million as per the 1959 exchange rate of roughly Rs.2%in 2011. nearly 25±fold.26 crore policies to garner R54. as a category was one of the largest spenders on advertising. The number of life policies in force has increased nearly 12±fold over the past decade and health insurance. In India too substantial expenditure was being incurred due to advertising. on advertising and publicity. The report states that the total penetration of insurance (premium as percentage of GDP) has increased from 2.70 crore policies and had mobilised R44. The slogan of LIC is "Zindagi ke saath bhi.The Corporation. Life Insurance Corporation(LIC) plans to invest R45. According to reports. During 2011-12. 000 crore through renewal premiums. This sudden spurt of advertisements and awareness programs was visible on all the media channels. in the first quarter of the year 2010.000 crore worth of fresh premium.

private insurers managed to garner only about 0. . child carrier plan. LIC¶s Business increased mainly because of the increased public awareness about insurance. LIC's Insurance Plans are policies that talk to you individually and give you the most suitable options that can fit your requirement Bima account Plus Plan Bima account 1 Bima Account 2 Children Plan Jeevan Anurag Plan. Plan for handicapped Jeevan adhar Jeevan viswas Special money back plan for women Jeevan Bharti Plan for individual Jeevan shree Jeevan paramukh Whole life plan Whole life policy. which was brought about by the heavy advertisement campaigns of private players.Jeevan Chaya.However.5% market share. According to reports. during the first year of the entry of new players. in spite of spending hefty amounts on advertising and promotion. jeevan anand . jeevan tarang. Lic Product profile Insurance plans of LIC As individuals it is inherent to differ. Jeevan kishore . whole life policy single premium. Komal jeevan. Child future plan. while LIC reported a growth of over 250%. Each individual's insurance needs and requirements are different from that of the others. whole life policy limited payment.

amulya jeevan 1 Joint life plan Jeevan sathi . the convertible assurance policy.Term assurance policy Two year temporary assurance policy. anmol jeevan 1.

Chapter 3 Research methodology .

Random Sampling Sampling can be defined as a part of population. and 40-50 which comprised of mainly peoples from Begusarai District of Bihar. 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 In this research survey 120 people were surveyed at random to get the relevant information. These comprise of employees of Govt.Research methodology is a strategy that guides a research in providing answers to research questions and for this. ³Accuracy of the study depends on the systematic application of the method´. This section was included so as to get opinion of the people regarding the Life Insurance Corporation of India¶s life insurance policy. Manoj kumar Srivastava (Marketing Manager Lic) That the respondents may not have any difficulty in answering them. Sample sizeThe sample size was restricted to only 120 people between age group of 25-40. Sample SizeThe sampling techniques used in this project are probability sampling techniques and the methods used in cluster sampling. Bihar . The questionnaire also contained a comments section. Sampling UnitThe respondents who were asked to fill out questionnaires are the sampling units. The researcher has to decide the method to be used that helps him to get a desired A) Methodology Adopted Questionnaire Design The questions were designed in an easily understandable way with the help of Mr. research survey is being done. Employees and Self Employed. Sampling AreaThe area of the research was Barauni oil refinery Quarters and Civil lines of Begusari district.

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 Life Insurance corporation of India¶s life insurance Interview The next step involved in collecting information requires discussion with people.Data Collection Structured Questionnaire In this collection data. The top ads are selected on the basis of their score. The simple statistical tools will used to analyze the data collection. 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. Secondary Data Collection Various websites were consulted to collect literature relevant to the topic. Bar Graphs and pie chart have been used to illustrate the findings Diagrammatically. . The scores for advertisement were compiled on spontaneous recall. Interpretation Interpretation refers to the task of drawing inference from the collected facts after an analytical study. Thus valuable information was gathered informal friendly talks with the people. Aided recall and likeability.

Chapter 4 Literature review .

Due to the social and backward condition the personal selling efforts have a challenging role to play in this regard. There are 16.6 million rural middle class households in the country. comprising Rs65.000 crore of durables.23. The rural middle-class constitutes a potential market lying to be tapped by any industry.000 crore of FMCG. 29% of the rural people own cars. 59% of durables.000 crore of agricultural inputs including tractors and Rs 8. 53% of the FMCG products.4 million urban middle-class households and 15. Rs 45. 50% of the BSNL mobile connections. 60%ofRediffmail sign-ups and 50% of online shopping on Rediffmail are accounted for by the rural sector . The experience of agricultural input industry can act as a guideline for the marketing efforts of consumer durable and non-durable companies. but the latter had a better purchasing power because they do not incur any expenditure on rent.000 crore. The word of mouth is an important message carrier in rural areas. Relevance of Mass Media is also a very important factor. Rs 5. 27%t own colour televisions. compared to their urban counterparts. Infect the opinion leaders are the most influencing part of promotion strategy of rural promotion efforts.000 crore of two-wheelers and four-wheelers. 24% own refrigerators and 10% own washing machines. who spend a sizable portion of their income on these items The estimated annual business from rural markets was Rs 1.Literature review According to AC NIELSON Promotion of brands in rural markets requires the special measures. which points to the untapped potential in the rural areas. transport and school fees. Another revealing aspect of the market is that 55% of the LIC policies.

including TV. . despite the geographical spread and variety of its businesses. With 128 million households. and have begun reaching out to customers. µThis required a corporate campaign . pricing. 4. We therefore have to look at the rural market very seriously for future expansion. CORORATE 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. When Company first began operations.(or retailer-) oriented with the purpose to establish a positive image and creating demand for a product or service that leads to eventual purchase. Brand building advertising is synonymous with product advertising and is commonly seen in traditional mass media." Key Summary The Indian rural market with its vast size and demand base offers a huge opportunity any industry cannot afford to ignore. Many astute business people now recognize corporate brands as fundamental business assets. radio.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".to establish the brand. markets and communication. Affect of advertising in Brand Building Brand building through corporate advertising. 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 betrusted to invest funds with. "Being sensitive and relevant to the requirement of the region should be of utmost importance in the choice of products. the rural population is nearly three times the urban. build awareness and give the brand a larger-than-life image. magazine. communication.2. and newspaper.3. prospects. defined generally as advertising that benefits a company¶s image by emphasizing its own resources. Brand building advertisements tend to be product/service. 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. and the financial community by advertising those brands. skills and/or character. 4. packaging. promotions. We can very well understand the concept of corporate advertising by taking the example of Life insurance corp. 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.

Chapter 5 Data Analysis .

1 Data and Interpretation Q-1 which media you mostly use for information/ entertainment 15 20 TELEVISION NEWSPAPER INTERNET 60 25 RADIO Media Television Newspaper Internet Radio Percentage 50 20. 5.5 Analysis It includes the summary of advertisement scenario of insurance industry in the soaring mass market available in India based on the survey conducted. But yes the old players news paper and radio are Still on their high trying to dominate in the market.83 16. .5 Response 60 25 20 15 120 TOTAL In the market it can easily be realized that the Television audience had a huge impact of these ads. Although the most popular medium of entertainment or information gathering has emerged as the arena of media war. Internet being in its youth phase is rapidly reaching in the elite class.66 12.

On which channel you saw insurance ad mostly. .833 16. In the emerging economy of INDIA News and business channels have risen surprisingly and contributing in the promotion of insurance sector. Sony etc where family soaps are having the highest TRPs contribute mainly for in FMCG sector.V .Q. Though they show a bit of Insurance Ads too.5 20.6 Responses 30 45 25 20 120 Total Apart from entertainment channels like star T. 20 25 30 sony Star Zee TV News channel 45 Channels Sony Star Zee News channel Percentage 25 37.