TERM PAPER OF MARKETING MANAGEMENT ON ICICI PRUDENTIAL LIFE INSURANCE

SUBMITTED TO; PROF. MK SHARMA LSB

SUBMITTED BY; INDERJIT SINGH ROLL NO: 54 SECTION: 323 MBA 1st SEM

LOVELY PROFESSIONAL UNIVERSITY

INTRODUCTION
ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank - one of India's foremost financial services companies-and Prudential plc - a leading international financial services group headquartered in the United Kingdom. Total capital infusion stands at Rs. 47.80 billion, with ICICI Bank holding a stake of 74% and Prudential plc holding 26%. ICICI Prudential Life Insurance Company Limited was incorporated on July 20, 2000. The authorized capital of the company is Rs.2300 Million and the paid up capital is Rs. 1500 Million. The Company is a joint venture of ICICI (74%) and prudential plc UK (26%). The company began our operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). Today, nation-wide team comprises of over 2000 branches (inclusive of1, 102micro-offices), over 290,000 advisors; and 24 banc assurance partners. ICICI Prudential is the first life insurer in India to receive a National Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. For three years in a row, ICICI Prudential has been voted as India's Most Trusted Private Life Insurer, by The Economic Times - AC Nielsen ORG Marg survey of 'Most Trusted Brands'. As we grow our distribution, product range and customer base, we continue to tirelessly uphold our commitment to deliver worldclass financial solutions to customers all over India. The Company was granted Certificate of Registration for carrying out Life Insurance business, by the Insurance Regulatory and Development Authority on November 24, 2000. It commenced commercial operations on December 19, 2000, becoming one of the first few private sector players to enter the liberalized arena. The Company is now operational in Mumbai, New Delhi, Pune, Chennai, Kolkata, Bangalore, Chandigarh, Ahmedabad, Hyderabad, Lucknow, Nasik, Jaipur, Cochin, Meerut, Mangalore and Ludhiana. Till March 31,2002 the Company has issued 100,000 polices translating into a Premium Income of around Rs. 1,200 Million and a sum assured of over

Rs.15,000 Million. The Company recognizes that the driving force for gaining sustainable competitive advantage in this business is superior customer experience and investment behind the brand. The Company aims to achieve this by striving to provide world class service levels through constant innovation in products, distribution channels and technology based delivery. The Company has already taken significant steps to achieve this goal.

BOARD OF DIRECTORS
The ICICI Prudential Life Insurance Company Limited Board comprises reputed people from the finance industry both from India and abroad. Mr.K.V.Kamath, Chairman Ms.ChandaKochhar, Director Mr.BarryStowe, Director Mr.AdrianOConnor, Director Prof.MartiG.Subrahmanyam, Director Mr.MaheshPrasadModi, Director Ms.RamaBijapurkar, Director Mr.KekiDadiseth, Director Ms.ShikhaSharma, Managing Director Mr.N.S.Kannan, ExecutiveDirector Mr. Bhargav Dasgupta, Executive Director

Vision and Mission

Their vision is to make ICICI Prudential Life Insurance Company the dominant new insurer in the life insurance industry. This they hope to achieve through their commitment to excellence, focus on service, speed and innovation, and leveraging our technological expertise. Behind the corporate objectives, which in themselves offer the main context for the marketing plan, will lay the 'corporate mission'; which in turn provides the context for these corporate objectivesThe success of the organization will be founded on its strong focus on values and clarity of purpose. These include:

 Understanding the needs of customers and offering them superior products and service Building long lasting relationships with their partners Providing an enabling environment to foster growth and learning for their employees. They believe that they can play a significant role in redefining and reshaping the sector. Given the quality of their parentage and the commitment of their team, they feel that tere will be no limits to their growth

Detail of marketing plan

LIFE INSURANCE
Life insurance products assure your family will receive financial support, even in your absence. Put simply, when you buy insurance you provide your family with a sum of money, should something happen to you. It thus permanently protects your family from financial crises. In addition to serving as a protective cover, when you buy insurance you create a flexible money-saving scheme, which empowers you to accumulate wealth to buy a new car, get your children educational solutions, and even retire comfortably. Today, there is no shortage of investment options for a person to choose from. Given the plethora of choices, it becomes imperative to make the right choice when investing your hard-earned money and online insurance is an ideal choice in todays technology driven world. Buying Life insurance online is a way to make a unique investment that helps you to meet your dual needs - saving for life's important goals, and protecting your assets. When you buy life insurance online the core benefit is that the financial interests of ones family remain protected from circumstances such as loss of income due to critical illness or death of the policyholder. Simultaneously, buying life insurance online gives a strong inbuilt wealth creation proposition. The customer therefore benefits on two counts and online insurance products occupy a unique space in the landscape of investment options available to a customer.

As your life stage and therefore your financial goals change, the instrument in which you invest should offer corresponding benefits pertinent to the new life stage. Online insurance products are the only investment option that offer specific products tailor-made for different life stages. You are thus ensured that the benefits offered to the customer reflect the needs of the customer at that particular life stage, and hence ensures that the financial goals of that life stage are met. On the basis of which life stage you are in and the corresponding insurance needs, ICICI Prudential plans can be categorized into the following three types:

Education Insurance Plans Wealth Creation Plans Premium Guarantee plans Protection Plans

Education Insurance Plans

One of your most important responsibilities as a parent is to ensure that your child gets the best possible education that can be provided. ICICI Prudential offers a wide portfolio of education insurance plans that are designed to provide peace of mind to you, as a parent, that your child's education will be secure. These plans ensure that money is made available at the crucial junctures in a child's education - Class X, Class XII, graduation and post-graduation - to fund crucial commitments for the child's future. Importantly, education insurance plans ensure that in the unfortunate event of the death of a parent, the child's education continues unhampered. Under the education insurance plans platform, ICICI Prudential brings the following products to you.

Wealth Creation Plans

Wealth Creation Plans give the customer the dual benefit of protection along with the potentially higher returns of market-linked instruments. The most important benefit of ULIPs is the flexibility they give the customer in

choosing the premium amount and also choosing the underlying fund in which this money is to be invested. Wealth creation plans also offer the customer more liquidity options as compared to traditional plans. As such, ULIPs are ideal for customers who want the protection of a life cover to be allied to the returns of market linked instrument giving them an unmatched combination of benefits

Premium Guarantee Plans

The latest addition to the life insurance product portfolio of ICICI Prudential is the Premium Guarantee plan Invest Shield Life New. Premium Guarantee plans are the ideal insurance-cum-investment option for customers who want to enjoy the potentially higher returns over the long term of a market linked instrument, but without taking any marketing risk.

Protection plan
The sole objective of these plans, as their name indicates, is to serve the protection needs of the customer and by doing so, safeguard ones family from the financial implications of unfortunate circumstances than one cannot foresee.

Marketing budget
The classic quantification of a marketing plan appears in the form of budgets. Because these are so rigorously quantified, they are particularly important. They should, thus, represent an unequivocal projection of actions and expected results. What is more, they should be capable of being monitored accurately; and, indeed, performance against budget is the main (regular) management review process. The purpose of a marketing budget is, thus, to pull together all the revenues and costs involved in marketing into one comprehensive document. It is a managerial tool that balances what is needed to be spent against what can be afforded, and helps make choices about priorities. It is then used in monitoring performance in practice.

The marketing budget is usually the most powerful tool by which you think through the relationship between desired results and available means. Its starting point should be the marketing strategies and plans, which have already been formulated in the marketing plan itself; although, in practice, the two will run in parallel and will interact. At the very least, the rigorous, highly quantified, budgets may cause a rethink of some of the more optimistic elements of the plans.

Advantages of plan
Typically in life insurance plans, the amount of money is paid to the nominee of the person who pays the specific amount on the specific period of time. Whole the amount of money is benefit to the family for there home planning. A study of human history reveals a universal desire for security.1This quest for security has been potent motivating force in material and cultural growth. Early societies relied exclusively on family and tribe cohesiveness for their security. With industrial development, this security source weakened, being augmented by privately purchased and governmentprovided security programs. Among the private programs, life insurance has been a universal response Life insurance guarantees to pay a stated sum to a family on the death of its income earner(. In so doing, it affords families a measure of protection against the adverse financial consequences of premature death, gives individuals a greater sense of economic security, and can help reduce worry and distress and thereby increase initiative.

Advertising and promotional plan

Life insurance ensures that your family will receive financial support in your absence. Put simply, life insurance provides your family with a sum of money should something happen to you. It protects your family from financialcrises. In addition to serving as a protective cover, life insurance acts as a flexible money-saving scheme, which empowers you to accumulate wealth-to buy a new car, get your children married and even retire comfortably.

Life insurance also triples up as an ideal tax-saving scheme. To know more, read the Key Benefits of Life Insurance. Experts agree that while some aspects of advertising are the same for all the policies and rate of policies, the special characteristics of services require additional strategies to make advertising of services most effective. These include the following: 1) Present vivid information. Advertisers should use information that creates a strong or clear impression on the senses and produces a distinct mental picture. Using vivid information cues is particularly desirable when services are highly intangible and complex. The company will spent a lot of money to aware the customer to know the various type of policies.

COMPETITORS ING Life Insurance

ING Vyasa is one of the largest insurance and financial services companies in the world. The Fortune 13 company, employs more than 1,00,000 people and has accumulated net profits to the tune of $9 billion. ING Life Insurance is known to offer several innovative and useful insurance products in India. It was in September, 2001 that ING Life Insurance started operations in India. Now, ING Life Insurance has more than 300 branches spread across 240 cities in the country. . ING Life Insurance aims to cover the following important requirements of an Indian: Protection Savings Investment Retirement

LIC (Life Insurance Corporation)

India went through tumultuous economic conditions during the British rule. The Battle of 1857, the 2 World Wars had an adverse impact on the nation's economy. The wars not only led to economic crisis but also contributed to liquidation of many Indian life insurance companies. As a result, the Indians lost faith in insurance. In 1912, the Life Insurance Companies Act, along

with Provident Fund Act, was passed and the passing of this act was followed by the establishment of LIC in India. LIC (Life Insurance Corporation) started its journey with 33 divisional offices and 5 zonal offices. At that time, LIC had 212 branches all over India.

Life Insurances:
Life Insurances are such kind of insurances that are paid to named beneficiaries when the insured person dies. Life insurance provides a monetary benefit to the family member or a relative to a decedent. It also includes several policies that includeEndowment Policy Whole Life Insurance Policy Money Back Policy Joint Life Insurance Policy Group Insurance Term Life Insurance Policy Pension Plan

Marketing Communications Plan for New Product

The starting point for the advertising plan is the setting of objectives. The statement of objectives would follow the same format as the overall marketing objective. It would include what to communicate to whom and with what results. Should the advertising generate sales, produce leads, or enhance an image. To whom must the message be communicated to make that happen? What will be the result of this communication?

MARKETING MIX
In principle, these strategies describe how the objectives will be achieved. 4Ps are a useful framework for deciding how the company's resources will be manipulated (strategically) to achieve the objectives. It should be noted, however, that they are not the only framework, and may divert attention

from the real issues. The focus of the strategies must be the objectives to be achieved - not the process of planning itself. Only if it fits the needs of these objectives should you choose, as we have done, to use the framework of the 4Ps.

Product strategy
The company will provide different type of strategy for the different type of age . The premium is paid by the old person is high as compare to low age group. Because the risk of old age is more as compare to young people.

Place strategy
This stategies is placed all over the india. the company will open the office in different city.

Pricing Strategy
The company will decide a suitable price to the person who purchases the policy. And the rate of return in this policy is better as compare to the other company. A marketer should understand the relationship between price and consumer purchases and perceptions. This relationship is explained by two economic principles: the law of demand and price elasticity of demand and market segmentation.

Positioning Strategy
All marketing strategy is built on STP: Segmentation, Targeting, and Positioning. A company discovers different needs and groups in the marketplace, targets those needs and groups that it can satisfy in a superior way, and then positions its offering so that the target market recognizes the company's distinctive offering and image.

SALES ANALYSIS
Most organizations track their sales results; or, in non-profit organizations for example, the number of clients. The more sophisticated track them in

terms of 'sales variance' - the deviation from the target figures - which allows a more immediate picture of deviations to become evident.. `Microanalysis', which is a nicely pseudo-scientific term for the normal management process of investigating detailed problems, then investigates the individual elements (individual products, sales territories, customers and so on) which are failing to meet targets.

MARKET SHARE ANALYSIS

Few organizations track market share though it is often an important metric. Though absolute sales might grow in an expanding market, a firm's share of the market can decrease which bodes ill for future sales when the market starts to drop. Where such market share is tracked, there may be a number of aspects which will be followed:

overall market share segment share - that in the specific, targeted segment relative share -in relation to the market leaders annual fluctuation rate of market share

Marketing strategies
The latest entrant in the fast crowding Insurance business is Future Generali, a joint venture between the Future group and Generali of Italy. Future Generali has quietly launched its products and websites for both general and life insurance. In a bid to gain a competitive edge in the life insurance sector, major players like ICICI Prudential Life and Birla Sun Life Insurance are drawing up aggressive marketing plans to woo consumers across the nation. Even as Birla Sun Life Insurance is strengthening its presence in cyber space, ICICI Prudential Life is now experimenting with direct marketing plans to attract the attention of customers.

BIBLOGRAPHY
www.iciciprulife.com www.iciciprulife.com/public/life-plans.htm www.iciciprudential.com www.lifeinsinfo.com www.insurance.heanlinesindia.com

ICICI Prudential Life Insurance unveils pioneering product on the 'Trigger Portfolio' strategy - Launches ICICI Pru LifeTime Maxima, a unique wealth solution Mumbai, December 17, 2009: ICICI Prudential Life Insurance Company Ltd (ICICI Prudential Life), today announced the launch of ICICI Pru LifeTime Maxima a wealth solution based on the 'Trigger Portfolio' strategy. This is the first-ofits-kind product in the insurance industry in India. The 'Trigger Portfolio' strategy allows a customer to book profits made in the equity market and protects them from any future market volatility. The gains are transferred to a liquid fund (Money Market Fund) thereby ensuring that any future volatility does not erode the value of the accumulated profits. This strategy enables the customer to take advantage of substantial equity market swings and invest on the principle of "buy low, sell high" in a systematic manner while maintaining a pre-defined asset allocation.

Under this strategy, the investments will initially be distributed between two funds, Multi Cap Growth Fund (equity oriented fund) and Income Fund (debt oriented fund) in a 75%: 25% proportion. The funds will be re-balanced or reallocated in the portfolio based on a pre-defined 'trigger event'. The 'trigger event' is defined as a 15% upward or downward movement in NAV of Multi Cap Growth Fund. On the occurrence of the trigger event, any fund value in Multi Cap. Growth Fund which is in excess of three times the Income Fund value is considered as gains and is transferred to the liquid fund (Money Market Fund) by cancellation of appropriate units from the Multi Cap Growth Fund. This ensures that gains are capitalized and protected from future equity market fluctuations, while maintaining the asset allocation between Multi Cap Growth Fund and Income Fund at 75%:25% ICICI Pru LifeTime Maxima also provides the customer an option to choose a Fixed Portfolio strategy under which he can choose his own asset allocation from any of the seven available fund options: The additional benefits of this product are: - Additional allocation of units: more than 100% allocation to funds on the premium payment from the 6th policy year onwards - Top up: flexibility to invest surplus money - Automatic Transfer Strategy: helps you eliminate the need to time your investment - In the unfortunate event of death during the term of the

policy, the policy holder's nominee will receive higher of the Sum Assured and Fund Value - Tax benefits on premiums paid - Change in Portfolio Strategy (CIPS) Speaking at the launch, Mr. Pranav Mishra, SVP & Head Products & Sales, ICICI Prudential Life said, "We have witnessed significant volatility in the capital markets in the recent past and this has made investors wary of investing in the equity markets. Our latest offering, ICICI Pru LifeTime Maxima is a wealth creating product that allows the customers to protect their gains made in the equity markets from any future equity market volatility. This innovative product, based on the 'Trigger Portfolio' strategy allows customers to maintain a pre-defined asset allocation structure and take advantage of substantial swings in the equity market. This is the first amongst many innovative solutions that we plan to launch on this strategy and we are confident that customers will find it useful to create long term capital appreciation through systematic asset allocation between equity and debt portfolios. The launch of ICICI Pru LifeTime Maxima reaffirms our standing as the insurer of choice, setting benchmarks and maintaining our leadership position in the life insurance industry."