Study of promotional strategy of icici prudential life insurance co ltd

Study of Promotional Strategy of ICICI Prudential Life Insurance Co. Ltd

Name Rajni Kant

Student ID No. PGPMI/N/01/039

Course Post Graduate Program in
Management and Insurance

Project Title Advertisement Effectiveness
(With Reference to Life Insurance)

Project Guide Prof. Gaurav Ashesh

Sub Topic Analysis and Evaluation of
ICICI Prudential Media Strategy

International School of Business and Media

Noida

Advertisement Effectiveness Study (With reference to Life Insurance)-IGNITE-V March-2008
RAJNI KANT


Certificate of Participation

This is to certify that Mr. Rajni Kant (PGPMI/N/01/039), who is a part of

FIRST BATCH of PGPMI Program, conducted by ICICI PRUDENTIAL

Life Insurance Co. Ltd. in ISB&M Noida (A Division of ISB&M Training

Pvt. Ltd.), had successfully done the project on “Advertisement Effectiveness

Study (With reference to Life Insurance)” for IGNITE – 5 (ON-LINE

PROJECT) with the best of his effort.

(Guide Sign) (PGPMI Team Member Sign) (Director Sign)

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Study of Promotional Strategy of ICICI Prudential Life Insurance Co. Ltd.

ACKNOWLEDGEMENT
First of all I would like to thank the Management of ICICI Prudential Life Insurance Co. Ltd.
for giving me the opportunity to do SURVEY PROJECT under IGNITE SERIES.

In my whole endeavor to complete this project, I own immense gratitude to my project
guide Prof. Gaurav Ashesh for extending his guidance and co-operation though this
project.

I express my sincere thanks to all the Faculty Members of ISB&M Noida for there valuable
cooperation and giving me valuable information in preparing the project.

I am highly indebted to Prof. Hari Shrivastava for his continuous support and
encouragement.

I would also like to thank Prof. Vikas Sharma for extending his guidance and support
though this project.

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

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DECLARATION
The information provided in this report is accurate and true as per my knowledge &
understanding.

Prof. Gaurav Ashesh, Faculty, ISB&M Noida, was my Project Guide during ONLINE
PROJECT COMPETITION conducted by PGPMI TEAM of ICICI Prudential Life Insurance Co.
Pvt. Ltd. under the title head of IGNITE SERIES.

This IGNITE-V Online Project report represents “Study of Promotional Strategy of ICICI
Prudential Life Insurance Co. Ltd.” Under the title head of “Advertisement Effectiveness
with reference to Life Insurance”

The pages count in this project does not include Front Page, Table of content, and
Annexure, The Preface, Declaration, Executive Summary, and References, do not
constitute part of the page limit.

The page count in the main text excluding the aforementioned points is 46 pages. Report
style has been adopted for presentation as per guideline and attempt has been made to
maintain the different parts and tasks as distinctive as possible but yet linking key elements
together to avoid repetition and to communicate the significance.

(Signature of the Projectee)

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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.

In short, the reasons to evaluate the advertising campaign are as follows:

1. To determine if the objectives set for the advertising campaign were met. This off
course presupposes that measurable objectives were set in the first place. And that
these objectives are in line with the overall marketing objectives and strategies.

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The first success of any effectiveness research would be that it forces managers to
think clearly and put down on paper, for themselves and others, what they expect
the advertising to do.

2. To quantify the return on the campaign investment. By knowing what was achieved,
management can relate that information to opportunity cost of money and
determine cost effectiveness of the advertising campaign. Off course this is an ideal
situation. Measurements of advertising results are seldom precise enough to make
this quantification possible.

3. To use the results of effectiveness research to make changes, additions, or
completely alter course for future campaigns. No advertising campaign is ever
totally successful.

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A. EXECUTIVE SUMMERY
A successful product or service means nothing unless the benefit of such a service can be
communicated clearly to the target market. 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. The art of good public relations is not only to obtain favorable
publicity within the media, but it is also involves being able to handle successfully
negative attention.

Sales promotion: Commonly used to obtain an increase in sales short term. Could
involve using money off coupons or special offers.

Personal selling: Selling a product service one to one. By personalizing advertising,
response rates increase thus increasing the chance of improving sales.

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. 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?

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Logos or slogan design? The message should reinforce the benefit of the product and
should also help the company in developing the positioning strategy of the product.
Companies with effective message strategies include:

ICICI PRUDENTIAL: Jeetye Raho
Om Kotak: ‘Jeene ki azaadi’
Nike: Just do it.

Media strategy refers to how the organization is going to deliver their message. 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. 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.

A.1. Research Objectives
A) Primary Objective
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.

B) Secondary objective
To know the promotional strategies of ICICI prudential.
To know how they face their competitor’s strategies.
To know how they survive in the cutthroat competition.

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A.2. Structure of the Project
This report consists of parts covering relevant areas to the topic under discussion.

The first part introduces the reader to the report and also outlines the structure and
topics of discussion.

The second part describes in brief that what the concept behind giving
advertisement is., and what is the scope to this project.

The third part identifies in which way we moved. Which methodology we adopt to
conduct this project.

The fourth seeks new scope in untouched market and how advertisement affects in
brand building.

The fifth part deals with facts and findings which give us knowledge about the
current market trend.

The sixth part extends into the generic strategies adopted by ICICI Prudential to
touch not only consumer share of mind but also consumer share of heart.

The fifth part introduces with greater analysis what is happening in current market
scenario and how ICICI Prudential survives in this cutthroat market competition.

The sixth part talks about the Insurance Industry and discuss the growth story of
Leading Private Insurance Company which is ICICI Prudential Life Insurance
Company Limited.

The final part sets the final context linking all the key frameworks and analysis with
the author’s own conclusions and future directions and expresses the author’s
limitation to this report.

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1. Table of Contents
Particulars Pages

Acknowledgement ii
Declaration iii
Preface iv-v

A Executive Summary vi-viii
A.1 Research Objective vii
A.2 Project Structure viii

1 Introduction 1-3
1.1 Problem Area 2
1.2 Scope 3

2 Background 4-5

3 RESEARCH METHODOLOGY 6-8

4 Literature Review 9-12
Media Exposure in Rural Market 9
Corporate Advertising 10-11
Affect of advertising in Brand Building 12

5 Analysis 13-28
Data and Interpretation 13-15
FACTS AND FINDINGS 16-26
Limitation of the Project 27
Conclusion 27-28

6 RECOMMENDATIONS 29-30
7 Media Strategies of the Company 31-34
8 Current Market Scenario 35-39
9 Industry profile 40-43
10 ICICI Prudential Life Insurance Co. Ltd. 44-46

References 47
Bibliography
Annexure
Questionnaire
Respondent Database
Result Analysis Sheet
IMPACT: Marketing on Society Vs Society on Marketing
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1. INTRODUCTION
"Advertisements are sometimes spoken of as the nervous system of the business world ...
As our nervous system is constructed to give us all the possible sensations from objects,
so the advertisement which is comparable to the nervous system must awaken in the
reader as many different kinds of images as the object itself can excite"

“Advertising effectiveness means different things to the groups responsible for its different
effects. To the writer or artist, effective advertising is that which communicates the desired
message. To the media buyer, effective advertising is that which reaches prospective
buyers a sufficient number of times. To the advertising or marketing manager, effective
advertising is that which, together with other marketing forces, sells his brand or product.
To the general manager, effective advertising produces a return on his firm’s expenditure.”
“In fact, effective advertising must achieve all four goals, delivering messages to the right
audience, thereby creating sales at a profit. Most advertisers have begun only recently to
set goals in all four areas and measure progress toward them. Some advertisers have set
communications and audience goals, and measured copy and media effects, but few
advertisers have set dollar goals and measured sales and profit effects.

The result is that advertising has rarely been a part of corporate planning. Thirty years ago,
management was asking the same questions they ask today: Is my advertising working
and what impact does it have on my sales? Can it be measured? Can our advertising and
promotion be made accountable in the same manner as which one evaluates all of the
other investments by our company?

The answer to all three questions is yes. In fact, the techniques to deliver this degree of
accountability and control have been around for more than 50 years and are industry
standards.

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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.

1.1. Problem Areas
A majority of Indian customers being very conservative and averse to risk, trust was an
extremely important factor in the insurance business. Since LIC was a government owned
body, there was an element of security embedded in its services and products. This
proved to be the biggest hurdle for the new insurance companies as Indian customers
were reportedly rather skeptical about them.

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1.2. 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.

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.

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2. BACKGROUND
According to industry observers, one of the main reasons for the low insurance
penetration in India was the ineffective distribution and marketing strategies adopted by
LIC. The company reportedly never had any strategic marketing game plan, and due to its
monopolistic nature the need for serious marketing efforts was never felt. The advertising
initiatives were limited to some print and electronic media advertisements that typically
talked about LIC’s products being great tax saving tool for salaried individuals who came
under the income-tax bracket. Despite all this, LIC was synonymous with insurance in India
and it had established an enviable brand image for itself, especially in the rural areas and
small towns. However, with the entry of new players, the insurance market changed almost
overnight. Analysts commented that the private insurers seemed all set to make the
industry marketing-driven, wherein technical and service excellence would be the key
factors of success. The private companies, in a bid to make their presence felt and their
brand noticed, initiated a series of aggressive marketing and promotion initiatives,
something that buyers of insurance were not accustomed to.

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

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This sudden spurt of advertisements and awareness programs was visible on all the media
channels. Print, electronic and outdoor advertisements of the new private insurers flooded
could be seen everywhere. This prompted many comparisons of such behavior of
insurance companies with the advertising frenzy of the dotcoms in India not too long ago –
with similar full-page advertisements, huge hoardings and costly electronic media
advertisements.
According to reports, in the first quarter of the year 2002, insurance companies spent 70%
of what was spent in the whole of 2001, on advertising and publicity. Across the world,
insurance, as a category was one of the largest spenders on advertising. In India too
substantial expenditure was being incurred due to advertising.

COMPANY EXPENDITURE
LIC 1000
Allianz Bajaj 200
Om Kotak Mahindra 150
ICICI Prudential 146
Source: ICMR.

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.

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3. 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.

A) Methodology Adopted

Questionnaire Design
The questions were designed in an easily understandable way with the help of Prof.
Gaurav Ashesh (Faculty Guide) and Prof. Hari Sadhu. 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.

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.

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Sample Size: The sampling techniques used in this project are probability sampling
techniques and the methods used in cluster sampling.

Sampling 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.

Sampling Area: The area of the research was Delhi Metro Railway Quarters, New Delhi,

India.

B) Data Collection

Structured 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.

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Interpretation
Interpretation refers to the task of drawing inference from the colleted facts after an
analytical study, in fact it is a search for broader meaning of research findings it is through
interpretation that the researcher can well understand the abstract principle that
respondents beneath his findings. The simple statistical tools will used to analyze the data
collection, Bar Graphs 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.

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4. Literature Review
4.1Media 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 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.

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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,"

Key Summary

The Indian rural market with its vast size and demand base offers a huge opportunity any
industry cannot afford to ignore. With 128 million households, the rural population is nearly
three times the urban. We therefore have to look at the rural market very seriously for
future expansion.

4.2. 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, 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.

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We can very well understand the concept of corporate advertising by taking the example of
ICICI Prudential communication. When Company first began operations, the task was to
present the visiting card of the company to the public at large and build credibility and
stature and to give the consumer the confidence that ''here is a company that can be
trusted to invest funds with.''

This required a corporate campaign - to establish the brand, build awareness and give the
brand a larger-than-life image.

The advertising idea, which was encapsulated in symbols of protection from the initial print
campaign, culminated in the corporate film where sindhoor was used as an endearing and
lasting symbol of protection.

Once the corporate image and brand identity were established, and as the company
expanded and its product range grew, the next phase of communication was to give the
consumer a rational and tangible reason to buy - first of all insurance and secondly from
ICICI Prudential Life. This was tackled through product-specific advertising, such as for
ICICI Pru Smart Kid, retirement solutions or LifeTime.

Key Summery

Create a good citizen image through consistent & dedicated effort.
Convey the organizations commitment to the concerned publics as well as to the
masses & eliminate prejudices, if any held by opinion leaders in particular & by the
public in general.
Boost both employee management relation & employee morale enabling all
members of the internal public to discover a new vitality.

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4.3. 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, 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.

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* Analysis of only selected question is discussed in this project which shows huge information of the market.


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.

5.1 Data and Interpretation

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. But yes the old players news paper and radio are
still on their high trying to dominate in the market. Internet being in its youth phase is
rapidly reaching in the elite class.

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Apart from entertainment channels like Zee T.V , Sony etc where family soaps are having
the highest TRPs contribute mainly for in FMCG sector. Though they show a bit of
Insurance Ads too. In the emerging economy of INDIA News and business channels have
risen serprizingly and contributing in the promotion of insurance sector.

(Ranks are in ascending order)

LIC being the gaint of Life Insurance in INDIA has grabed the top slot in terms of
advertisement also. Other private players like ICICI Prudential, HDFC Std. Life, Brila Sun life
and Reliance Life Insurance are trailing behind LIC.

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Life Insurance is considered to be sold by push strategy only, and we are witnessing
alternative financial Instruments available in the market giving tough competition. The first
thing before buying an Insurance Product in the competetetive market comes in the mind,
is the BRAND. It really plays a tremendous role for a product to be bought. It seems clearly
in the servey.

The message which is conveyed through these advertisements are however acceptable by
the mass market. People agree that the ads are understandable to them. But the relevance
is still in the black hole as these advertisements are treated as like entertainment clips.

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5.2 Facts & Findings
TAM Media Research, a joint venture between Nielsen Media Research (NMR)/ AC Nielsen
and Kantar Media Research (KMR)/IMRB gives fruitful knowledge to understand media and
advertising trend.

In July 2002, TAM took operational control of ADEX service-the pioneer in Media
monitoring in India. TAM inherited a well-oiled monitoring system with a trend work force.
ADEX India represents a cutting edges strategy tool which helps us to keep an eye on
advertising and media trend.

Facts and figures of advertising trend of year 2007-08 and role of Life Insurance advertising
in advertising business as per the survey conducted by AdEx India (A division of TAM
Media Research) is mentioned below.

Snapshot on TV Advertising in 2007
1) Volumes growth in TV advertising.

TV ad volumes saw a tremendous growth of 126 per cent during 2007 compared to 2004.

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2) Sartorial division in TV advertising.

Top 10 sectors constituted 58 per cent
share of TV advertising during 2007.

With 14 per cent share F&B had the largest
share of TV advertising, followed by
Personal Care/Personal Hygiene and
Services with 9 per cent and 6 per cent
share, respectively.

3) Channel wise distribution of advertisement in TV.

General Entertainment Channel led with 1/3rd share, followed by News and Music Channel
with 23 per cent and 15 per cent shares, respectively, during 2007.

Key Findings:
31 per cent growth in TV ad volumes during 2007 compared to 2006.
Food & Beverages sector leads in TV advertising during 2007.
HUL maintained its first rank in the top 10 advertisers list on TV across both the
years 2006 and 2007.
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Snapshot on Life Insurance advertising on TV in 2007
1) Share of Life Insurance (Life Insurance versus Other Insurance).

The overall TV advertising was shared by Life
Insurance and Other Insurance in the ratio of
80:20 during 2007.

2) Volume Growth in Life Insurance sector.

Television advertising of Life Insurance grew by 258 per cent in 2007 as compared to 2004.

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3) Private versus Public Insurers on TV during 2007.

Private Insurers lead with 78 per
cent share of overall advertising of
Life Insurance sector on TV during
2007.

4) Rank shift of top Life Insurers in 2007 during 2006.

LIC and HDFC Standard Life Insurance
Co. Ltd switched their ranks in 2007
compared to 2006.

Compared to 2006, Bharti AXA Life
Insurance Co and ING Vysya Life
Insurance moved up maximum places
to be in the top 10 list of 2007.

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5) Top 10 Life Insurance brands on TV.

HDFC Standard Life Children Plan
lead with 8 per cent share followed
ICICI Prudential Life Insurance and
Bharti AXA Life Insurance with 7 per
cent and 6 per cent share,
respectively, during 2007.

Top 10 brands were a mix of five
brands of Life Insurance, and three of
the brands belonged to the Pension
Plan.

6) New brands launched on TV in 2007.

Birla Sun Life Children's Dream was
number one Life Insurance brand to be
launched on TV in 2007.

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7) Genre usage for Life Insurance advertising.

Maximum Life Insurance
advertising was done on
Regional GEC followed by
Hindi News.

Among the News genres viz.
Hindi, English and Regional
News channels took second
third and fourth slots
respectively during 2007.

Highlights

Life Insurance' players had an 80% share of overall TV advertising of 'Insurance'
sector in 2007.

'Life Insurance' advertising grew by 72% during 2007 compared to 2006.

‘Life Insurance’ advertising max. during Q1 across 2006 and 2007.

'LIC' took the top slot among the players of 'Life Insurance' on TV in 2007.

‘Birla SunlifeChildrensDream’was the top brand in the new brands list on TV.

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Snapshot on Life Insurance advertising in print in 2007
1) Share of Life Insurance (Life Insurance vs. Other Insurance)

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

2) Volume Growth in Life Insurance sector

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

3) Share of Private and Public Insurers in Print during 2007

Private Insurers took 55%
advertising share of ‘Life
Insurance’ advertising in
Print during 2007.

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4) Rank shift of top Life Insurers in 2007

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

5) Top 10 Life Insurance brands in Print

6 out of top 10 brands of Life
Insurance print advertising were of
LIC during 2007. 3 of the top 5
brands were of LIC during 2007.

6) New brands launched in Print in 2007

Interestingly, among the top 10 list of
new brands, 8 were related to ULIP
except for LIC’s Aam Admi Bima
Yojana and LIC’s Jeevan Amrut.

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7) Preference of Genre for advertising of Life Insurance

Maximum Life Insurance advertising was done on business/Finance/Economic magazines,
followed by news/current affairs and general interest. But the condition is reversed in case
of newspapers. Here 91 percent of the Life Insurance advertisement is found on General
Interest page.

Highlights:

In the Insurance sector, ‘Life Insurance’ contributed 76% of advertising in Print
during 2007.
‘Life Insurance’ advertising dropped by 25% in Print during 2007 compared to 2006.
High advertising in ‘Life Insurance’ sector during the first quarter of both the years
2006 and 2007.
Private Insurers took 55% share of overall advertising of 'Life Insurance' in Print.
LIC and Bajaj Allianz Life Insurance maintained their respective 1st and 2nd ranks in
2006 and 2007.
Baja Allianz Life Insurance and LIC were the top 2 brands of ‘Life Insurance’ in Print
during 2007.
RAJNI KANT Page 24


Findings

As per the survey conducted it is
found that our result also supports
the facts mentioned above. Majority
of public use television for
entertainment or information
gathering, followed by newspaper
and internet. Radio is seems to be
out dated in urban areas. But after
revolution in mobile technology and satellite radio it again starts growing.

This survey question shows that how
much brand awareness is important.
Majority of the public goes behind
brand name. That’s why corporate
advertising plays a vital role in
growing stage.

It is also found that Insurance
companies like to give their
ads in News/Business channel.
It may be because of
Insurance is related to finance
and Insurance is mainly taken
as a tax saving instruments.

RAJNI KANT Page 25


Liking an advertisement
does not mean that public
would like to buy that
product. During survey a
collection of various
insurance companies ad
shown to the respondent.
They liked it very much.
Some of them are get
emotional because it
touches their heart. But when it is asked that how many of them now would like to
purchase insurance policies then instead of raising hands deep salience come as a answer.
It shows that Liking an advertisement does not the guarantee of sell. Only few of them
actually buy after seeing ad especially in case of Insurance.

As we know LIC is a big player in
an Insurance Industry and it is
everyone’s first choice. But private
players also start chasing LIC. The
craze of LIC is mainly because of
Public sector. If we talk about
private players then ICICI
PRUDENTIAL is the first choice of
the public followed by HDFC Std.
Life and Reliance Life Insurance.

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5.3 Limitation of the Project

The research is confined to a certain parts of Delhi due to time constraints and
does not necessarily shows a pattern applicable to all of Country.
Some respondents were reluctant to divulge personal information which can
affect the validity of all responses.
In a rapidly changing industry, analysis on one day or in one segment can
change very quickly. The environmental changes are vital to be considered in
order to assimilate the findings

5.4 CONCULSION
There has been a tectonic shift in advertising the insurance companies. Till 2 or 3 years
back a typical Ad will showcase a small happy family enjoying their life. Then one
unfortunate Day the head of the family dies in an accident and the rest of the family is
drawn to rags. The ad ends up saying Insurance can help them against such calamities.
People bought the idea and started buying insurance. But there was a basic flaw in the ad.
It tells the consumers about the advantages of “having Insurance” but nothing about
“buying insurance from a perticular insurance firm”. So whoever casting such ad was
helping the industry as a whole but not their specific firm.

If we see the recent ads they are talking about how “SBI Life” can help smoothen your old-
age life or how “ICICI Prudential” can help you in receiving pentions etc. This sounds more
logical. Each ad speaks about how their firms offers can help you instead of telling how
insurance as a whole can help you.

RAJNI KANT Page 27


In concluding part of this project it shows that
advertisement is very much important for any
business. A huge amount is paid by
companies against advertisement. There are
many ways available to give advertisement on
which this amount is paid this are TV,
Newspaper, Radio, Internet etc. The amount
spent on advertisement over four year across
the world is shown I table.

At the initial phase of a company it is important that they give emphasis on corporate
advertising because it helps in brand recall. At the later stage company can go for product
class advertisements. Well it is also found that during session that endorsement of
celebrities is helpful in ad recall. But giving advertisement in any type of media is not the
only medium; there are many other ways also like social service, by way of educating
people. Especially for Insurance companies if they want to capture rural market then they
have to approach in different way. In my opinion rural market can only been captured if we
reaches to there heart. And this can be happen only if we solve there basic problem.

RAJNI KANT Page 28


6. Recommendation about promotional strategies
The suggestions have been classified into two categories.
Action oriented suggestions
People oriented suggestions

ACTION ORIENTED SUGGESTIONS
An intense AIDA model needs to be adopted the AIDA model (Awareness, Internet, Desire,
and Action). Customers are aware of majority of products of ICICI PRUDENTIAL Life
Insurance Co. Ltd.

To create the awareness regarding Product
1. Print & Electronic Media Advertisement should be done (As we can see intense ad
campaign of HDFC Standard Life and Bajaj Allianz.)
2. After the initial promotional campaign the relative advantage of ICICI PRUDENTIAL
Life Insurance Co. Ltd. Over its competitor should be highlighted.
3. Hoardings at prime areas should be used.

PEOPLE ORIENTED SUGGESTIONS
1. Creating offers like lucky draws for the users of Internet.
2. Giving free gifts for the customer.

RAJNI KANT Page 29


6.1 Special Recommendation
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, and humor and
endorsement of celebrities is some of the routes available to us."

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 “HALLA BOL”. 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.

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7. Media strategy of ICICI Prudential Life Insurance Co. Ltd.
It was time when the marketing team was thinking about an advertising campaign, almost
everyone, including the company's board, pooh-poohed the idea. At that time people
thought Company is wasting money. But ICICI discarded this “fear" typically used for
hawking insurance, choosing instead a "happy" platform to convey a more positive
message.

Even today after it has rolled out so many campaigns, ICICI remains among the top
advertisers: ad spends, as a percentage of new business premium, range between 0.5 per
cent and 0.75 per cent. Lowe (Lintas) has been the creative advertising agency for ICICI
Prudential Life since the beginning.

The TA:
Representing an ideal mix of medium to high net worth individuals: The consumers most
disposed towards buying life insurance. Middle-aged professionals, primarily male,
salaried and self employed, age group: 28 - 45 years, household income: Rs.20, 000 and
above.

Creative Strategy:
The essence of the creative strategy: To get the consumer to re look at Insurance as a
means to lead a worry free life and not as a necessary evil. When ICICI Prudential Life
Insurance 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 was a company that could be trusted to invest funds with'. This
required a corporate campaign, which started with advertising to establish the brand, build
awareness and give the brand a larger than life image. To this effect the core brand insight
highlighted was "As head of the family it's my responsibility to take care of my loved ones
and protect them from the uncertainties of life", summed up in the advertising idea:

RAJNI KANT Page 31


‘We cover you at every step in life (Suraksha… Zindagi ke har kadam par). ICICI Pru was
positioned as an enabler of protection relevant to the needs of the life stage that you are in.
Over the last few months, ICICI Prudential has been advertising in outdoor, TV and press.
The company launched a corporate television campaign – Saat Phere – which took the
emotions and thoughts of initial Sindoor corporate film a few steps further. The film
highlights the strength of promises that a husband makes to his wife, through the depiction
of everyday situations, and then goes on to emphasize that ICICI Prudential will stand by
the husband to help him fulfill all these promises. The TV campaign has also been
extended to outdoor. The company has also undertaken press and internet campaigns to
inform customers about benefits of some of its products, particularly retirement solutions,
through the Chintamani campaign.

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 Lifetime.

The Creative execution:
TVC: Building image and creating a differential in the most creative and compelling
manner. The creative execution heightened the emotional connect with the ICICI Pru brand
- Indian; satisfaction of knowing that one’s loved ones are protected. Symbolic
representation of the protector of the family through situations showcasing various life
stages and creating endearing imagery of protection and familial bonding.

RAJNI KANT Page 32


Press: Gave the consumer a rational and tangible reason to buy insurance first and
secondly from ICICI Prudential. The product specific advertising focussed on changing the
prevalent perception about insurance and breaking a few myths: non- affordability,
insurance not being good investment option and the myth that insurance was good only
for tax saving.

After the hugely successful Chintamani (retirement) and Saat Phere (corporate) campaigns,
ICICI Prudential Life Insurance also introduced some innovations in the category, such as:
having a tax planner by the name of Chintamani on radio, who would answer consumer’s
queries about the role of insurance in financial planning.

Other Communications:
Other programs included direct mail, PR of communications campaign in press & TV,
website marketing; and database generation through Bancassurance channels.

Other initiatives included tie-up with the Dabbawalla Organisation in Mumbai for a direct
marketing exercise, to talk to the customer through a non-cluttered route, and thereby
have a higher impact. The direct mailer was about ICICI Prudential’s retirement solutions
and the tax benefits that one can avail of buy investing in any of these. About 100,000
direct mailers were attached to the ‘dabbas’, in areas such as Churchgate, Bandra and
Andheri where there are mostly office-goers. ICICI Prudential Life Insurance has also
announced a strategic distribution tie-up with Hariyali Kisaan Bazaar, the rural business
arm of DCM Shriram Consolidated Ltd (DSCL). As a partner, Hariyali Kisaan Bazaar can
now distribute ICICI Prudential's protection, wealth creation, retirement solutions and
health insurance products to customers across the its growing number of rural business
hubs in the country.

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In addition to advertising, the company has also initiated several activities to raise
consumer awareness about life insurance and ICICI Prudential. “It includes seminars - ICICI
Prudential regularly holds consumer awareness meets on ‘the need for retirement
planning’ in different cities such as Pune, Aurangabad, Coimbatore, Nagpur, Bangalore and
Mangalore. These are very well attended and have contributed significantly towards
increasing awareness about the category and the company. Apart from this, company also
entered into alliances with telecom companies, as well as companies like BPCL and
Dominos.

The results of communication efforts:
Being no: 1 in awareness and saliency.
Awareness: ICICI Pru showed a significant jump in
awareness between Feb and Sept 2001. Image:
Highest score among all Insurance players
including LIC, on image parameters like safety,
modernity, service, good returns etc. Intention to
invest: Next only to LIC as per research (All
Source: Research by ORG Marg). No. of calls and
emails: There were 70,000 calls at the call center
and 6582 emails in the year 2001. Today, ICICI
Prudential are fairly high on awareness, among
target segment. Company have a 86% brand
recall today.A research survey shows that among
the investing public. About 11% of the investing public knew Prudential ICICI top of mind. It
is a fair indicator of the share that the brand enjoys in the market. On spontaneous level
ICICI prudential are at 30%. ICICI Prudential Life was awarded the INDY’s Award for
Excellence in Mass Communication in the category of Most Creative Advertisement-
Television.

RAJNI KANT Page 34


Insurance Advertisement Trend
LIC Vs Private Players
According to a survey conducted by a leading marketing research firm, ORG Marg, brand
awareness of private insurers in India was increasing in the early 21st century.

The difference in the level of awareness of these new players as compared to the hitherto
monopoly of LIC was decreasing fast because of the aggressive advertising measures
adopted by private insurers.

The new companies focused their campaigns primarily on building an image of
trustworthiness and reliability for themselves. Secondly, their advertisements focused on
insurance as an investment option and not a mere tax saving tool – another first for the
Indian market. Most of these advertisements carried messages like the family’s happiness,
human bonding, etc., with underlying emphasis on the security that insurance could
provide. Also, instead of projecting the idea, that an insurance policy actually starts
working only after the death of the insured, the new campaigns projected that insurance
protects people throughout their lives.

Various Insurance Ads
In one of its TV commercials, ICICI Prudential showed a series of scenes depicting the
childhood, marriage and old age of an individual. The purpose of using these visuals was
to translate the company’s message ‘I will protect’ into real-life incidents. In order to
project its commitment towards consumers to ‘protect at every stage of life,’ the company
brought in the concept of sindoor, which symbolizes protection. Sindoor was shown
throughout the commercial as a mark of auspiciousness and protection, and at the end, it
became the red line below the ICICI Prudential logo.

Max New York also resorted to depicting positive emotions such as trust and protection in
its print advertisements. The company released two print advertisements.

RAJNI KANT Page 35


While one of them carried an image of the revered deity Goddess Durga, the other
projected three teenagers standing together, with their faces painted green, white and
saffron – like the Indian national flag. Reportedly, Max New York wanted to convey the
message that ‘insurance is your partner for your life.’

In addition to such TV commercials, the private insurance companies were trying to make
their presence felt by organizing blood donation camps, contests and sponsoring various
events social events through their agents.

ING Vysya tied up with leading US-based Columbia Picture’s Indian arm to carry out
promotional activities using the blockbuster English movie ‘Spiderman.’ In the metros, ING
Vysya distributed free movie tickets to its customers. The latter also organized the Green
Mumbai Drive and several blood donation camps in association with the Red Cross,
besides sponsoring the action replay of the India-West Indies cricket match series in May
2002 and also in November 2002.

Om Kotak and Birla Sun Life took to sponsoring events in a major way, to attract
prospective customers. Om Kotak initially highlighted in its advertisements the credibility
and trustworthiness of individual partners (Old Mutual & Kotak Mahindra) through its
generic campaigns. The TV commercials featured men and women ‘meeting’ themselves
in the future – happy, healthy and secure, thanks to insurance.

Allianz Bajaj went a step ahead. Apart from bringing out TV commercials and putting up
hoarding and billboards, it entered into a two-month long contract with Shoppers Stop.
According to the contract, every Shoppers Stop outlet had an Allianz Bajaj kiosk that
provided information about policies in order to attract customers. Allianz Bajaj’s entire
communication package included print advertisements, outdoor media campaigns and
direct marketing methods. All its print advertisements carried a visual of human hands,
which symbolized partnership and care to stress on the concept of care.

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Similarly, Tata AIG entered into an agreement with Westside to set up information kiosks in
all its outlets in order to attract people’s attention. Also, Tata AIG was one of the first
insurance companies to adopt the celebrity endorsement strategy. Tata AIG chose the
Hindi movie star, Naseeruddin Shah, as its brand ambassador for endorsing its personal
accidental death insurance policy.

In addition to all the above, private players in the insurance sector charted out various
innovative marketing plans to establish their products. For instance, ICICI Prudential
launched the ‘TruLife Club’ for its high-value policyholders as part of its marketing strategy.
Through TruLife Club, the company offered a wide range of health-related products, health
and fitness equipment and membership in gyms, health resorts and clinics in India.
Policyholders with a sum assured of Rs 0.5 million or more were included into this club.

Punch Lines
Another interesting development was regarding the punch lines used by private insurance
players that invariably tried to associate positive emotions with insurance products. While
ING Vysya said ‘Adding life to insurance,’ ICICI Prudential said, ‘We cover you. At every
step in life.’ Similarly, HDFC Standard advertisements projected a happy man asserting;
‘Now I can continue enjoying a comfortable lifestyle even after I retire.’ Om Kotak
highlighted its campaigns with ‘Jeene ki azaadi’ (Freedom to live)’ and Allianz Bajaj stated
‘Allianz Bajaj, Life insured by care.’ LIC came out with a corporate advertisement on TV
with the punch line, ‘Zindagi Tumhari Roshan Rahe’ (May your life be glorious).

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

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LIC upped its ad spend to tackle competition and succeeded in forging way ahead. LIC has
advertised in satellite channels as well as terrestrial channels. LIC has to reach out to non-
resident India policy holders as well as its other corporate customers who are based
abroad.ICICI Prudential has advertised on several channels from the Star TV bouquet, Zee
Network and Sony. The company have spent about Rs 50 million on TV advertising last
year.

With the geographical expansion, TV became a viable medium and the corporate
campaign for ICICI Pru Life was run on TV, because the medium lends itself well to an
emotional type of films that strike a chord with the audience. Product advertising, which
needs to impart information, was largely done through print and outdoor channels, as
these are appropriate for rational type of messages,

ICICI Prudential Life Insurance campaign was short-listed as one of the 12 most effective
campaigns for the year 2001 in the EFFIE awards. According to an ORG MARG study, the
ICICI Prudential brand name and advertising had the highest recall amongst all private
players, and was only marginally behind LIC.

ICICI Prudential Life was awarded the INDY’s Award for Excellence in Mass Communication
in the category of Most Creative Advertisement-Television.

(The scores for advertisement were compiled on spontaneous recall, aided recall and
likeability. The top ads are selected on the basis of their score.)

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It’s all about Money, Honey
In recent times, the consumer has been bombarded with an unprecedented barrage of
brand advertisement campaigns from insurance companies. Turn on the radio, TV, or open
a newspaper or internet portal – the glut of insurance advertisements is there to see.

The insurance industry is estimated to have spent over Rs 900 crore in 2007, up from Rs
200 crore in 2002 on brand building. Of the media investments absorbed in 2007, around
53 per cent went to TV, and the remaining to the print media. Life insurers alone accounted
for over 70 per cent.

RAJNI KANT Page 39


9. Industry profile
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.

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:

1907: 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.

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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 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:

1. 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.

2. 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.

RAJNI KANT Page 41


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.

3. Investments

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.

RAJNI KANT Page 42


COMPANY INDIAN PARTNER FOREIGN INSURER AREA
Birla Sun Life Aditya Birla Group Sun Life, Canada Life
Om Kotak Kotak Mahindra Finance Old Mutual, South Africa Life
HDFC-Standard Life HDFC Standard Life, UK Life
Life and
Royal Sundaram Sundaram Finance Royal Sun, UK
Non-Life
ICICI-Prudential ICICI Prudential, UK Life
Max New York Life Max India New York Life, USA Life
Life and
Tata-AIG Tata Group AIG, USA
Non-Life
ING Insurance,
ING Vysya Vysya Bank Life
Netherlands
Aviva Dabur CGU Life, UK Life
MetLife India Jammu & Kashmir Bank MetLife, USA Life
Life &
Bajaj Allianz Bajaj Auto Allianz
Non-Life
AMP Sanmar Sanmar Group AMP, Australia Life
SBI Life Insurance SBI Cardiff, France Life
Source: www.knowledgedigest.com

RAJNI KANT Page 43


10. ICICI Prudential Growth Story
ICICI Prudential, a joint venture between ICICI Bank and Prudential UK, has been around
ever since the private sector was allowed to sell life insurance policies. ICICI Prudential
began their operations in 12th December 2000 after receiving approval from Insurance
Regulatory Development Authority (IRDA).

Since then the tribe of life insurers has grown from 12 to 16, but ICICI still leads the private
sector pack. With a portfolio of over 6.5 million policies, India's biggest private sector life
insurer has not merely held on to its share but grown it; at the end of January 2008, the
firm commanded 29 per cent of the share owned by private sector players. Quite some
way below was Bajaj Allianz with 21 per cent, while State Bank of India came in third with
10 per cent.

ICICI Prudential's premium income grew at about 100 per cent between March 2003 and
March 2007. Interestingly enough, the insurer started out with the traditional endowment
products and was not the first to introduce the more popular Unit Linked Insurance Policy
(Ulip): the credit for that goes to Birla Sunlife.

However, in the first full year of operations itself, it started offering Ulip policies and was
selling more policies than anyone else. Today, Birla Sunlife doesn't find a place in the top
five and players such as HDFC Standard Life, which were late to cotton on to Ulips, may be
regretting it.

It wasn't just that ICICI Prudential rolled out Ulips quickly; the company also made sure the
products were priced competitively. Compared with the competition, ICICI's upfront
charges have always been lower.

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With charges across the industry now converging at around 20 per cent of first year
premiums, ICICI has come up with a zero-load product. Another scheme that has been
introduced automatically balances the debt and equity components of the portfolio every
quarter. Apart from this, ICICI Prudential has been quick off the block with retirement
solutions and the first to come up with health products.

If ICICI Prudential has managed to sign on 6.5 million policy holders, it is because the
company has built up a strong agent network, which brings in 60 per cent of the total
premium. Today the insurer has nearly 250,000 agents working for it, even though it
doesn't hand out the best commissions in the industry.

Bajaj Allianz's network is about 275,000- strong, while the public sector Life Insurance
Corporation boasts over a million agents. ICICI Prudential does not care about their
commission at the lower end compared with peers they compensate them by ensuring that
customer do better volumes.

The insurer is also rolling out offices at a furious pace; by the end of March 2008, ICICI
Prudential will have around 1,500 offices from around 1,100 currently, of which nearly 900
will have come up in 2007-08. Bajaj Allianz, too, has around 1,000 offices as of now. ICICI
Prudential targeting of 3,500 branches in five years.

The industry believes ICICI Prudential has a big advantage in that it can leverage the
customer base of its parent ICICI Bank. Bajaj Allianz, for instance, didn't have that
advantage. Banc assurance today fetches about 27 per cent of ICICI's premium; apart from
ICICI Bank, the insurer sells through Bank of India, Federal Bank, South Indian Bank and
some co-operative and rural banks.

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While ICICI Prudential has done well to stay at the top, the next seven years will certainly
be more difficult than the last seven. Competition is getting keener - in the past couple of
years, Bajaj Allianz is believed to have written more policies than Prudential. SBI Life has a
stronger distribution now that it has signed on many more agents and newcomers like
Reliance (which took over AMP Sanmar) are growing at a fast pace. But the strong growth
in the industry has surprised everyone.

RAJNI KANT Page 46


ADDITIONAL READINGS & REFERENCES:
1. Ahluwalia Harjeet, IRDA to remind insurance companies over ad norms, Financial
Express, February 5, 2001.
2. Jagannathan Venkatachari, Private Players ‘Insure’ LIC’s Business, domain-b, July 10,
2001.
3. Jagannathan Venkatachari, Its war out there, or is it?, domain-b, October 18, 2001.
4. Srinivasan Lalitha, Putting a premium on marketing differentiation, Financial Express,
November 21, 2001.
5. Shashidar Ajita, When ads get emotional, Catalyst – Business Line, January 17, 2002.
6. Vishwanath Rukmani, Menon. G. Shyam, Insure, be secure in the tinsel town motto,
Business Line, February 1, 2002.
7. Magazine Mukta, Max New York Life: Focusing on Internal Brand-Building, Financial
Express, April 4, 2002.
8. Joseph Jaiboy, Life insurance with seasoning, Catalyst – Business Line, April 25, 2002.
9. Mohandas Poornima, Private Insurance Companies turn on the heat, Business Line, June
9, 2002.
10. www.insuremagic.com
11. www.indiainfoline.com
12. www.bimaonline.com
13. www.expressindia.com
14. www.responsiveservice.com
15. www.agencyfaqs.com
16. www.knowledgedigest.com
17. Insurance Case Studies – ICMR
18. www. indiantelevision.com
19. The Hindu Business Line
20. Market Research in Insurance

RAJNI KANT Page 47

(http://FreeOnlineSurveys.com/rendersurvey.asp?sid=nxwoh5j1nwm22gv411585)

Hello Sir/Madam,

I, RAJNI KANT, here to conduct a research on the T.V audience with respect to advertisement put
up by LIFE INSURANCE COMPANIES. The purpose of this study is to understand, capture,
assesses and evaluate the effectiveness of the advertisement.

We would appreciate if you could spend about 15 Min. and communicate your feelings, expression,
comments and impact on you with respect to the content of the advertisement. Please give your
honest opinion and be understood that this information collected will be purely confidential and not
to be shared with any other entity in term of commercialization.

PERSONAL PROFILE
Name
Age
Occupation
email-id
Postal Address

Contact No.

Q1. Which media you use for information/entertainment?
TV
Radio
Newspaper
Internet

Q2. How often do you share interesting advertising with your family or friends?
Never
Rarely
Sometimes
Often
Very often

Q3. Have you seen any Life Insurance Product Ad?
Yes
No

Q4. On Which channel you watch mostly?
Zee T.V
Sony
Star
News Channel

Q5. If yes can you recall the content of the Ad?
Yes
No

Q6. Based on the features advertised, in that ad…... Rank the following
Strongly Somewhat Neither Somewhat Strongly
Agree Agree Disagree Disagree
The ad message is understandable.
The advertisement is believeable
The ad's message is relevant to me.
The benefits described in the ad are
believeable to me.
After viewing this ad, I would consider
purchasing the product.
This ad is much better than other ads for
products in this product category.

Q7. Which company ad you find mostly?
LIC India
HDFC Std. Life Insurance Co. Ltd.
Birla Sun Life Insurance Co. Ltd.
ICICI Prudential Life Insurance Co. Ltd.
Reliance Life Insurance Co. Ltd.

Q8. Do you think this ad has influence you to……………….
Buy the insurance policy
Recommend the Insurance Policy
Suggest the insurance Policy
would like to inform

Q9.Can you recall if your family members ever tried to influence you to buy/secure a life insure
Policy from the insurance company of her interest?
Yes
No

Q10. Which of the Insurance Policy would you like to buy?
Life Plan
Health Plan
Child Plan
Retirement Plan

Q11. Other than T.V Where you saw Life insurance ad?
Internet
Newspaper
Holdings
Friends/Family
Radio

Q12. Please rank the following Life Insurance Company as per your liking
HDFC Standard Life Insurance
ICICI Prudential Life Insurance
Reliance Life Insurance
Tata AIG Insurance Solutions
Bajaj Allianz

The survey questionnaire was filled by the employee of Delhi Metro Railway, by on-line procedure.
They are from various places of India working in DMRC,used to stay in officer’s flat. The entire
respondents are from South region of Delhi only.

Sr.No. Name of the Customer Contact no. Postal Address

E-1, Metro Enclave, DMRC Officer's Colony,
41 Press Enclave Road, Sector 7, PushVihar ,
1 Mr. Daljeet Singh 9810598120 New Delhi-110017, India
2 Mr. C.P. Singh 9810848159 New Delhi-110017, India
3 Mr. Vikash Rawat 9910484389 New Delhi-110017, India
4 Mr. Sunil Kataria 9971598608 New Delhi-110017, India
5 Mr. V. C. Gandhi 9971598574 New Delhi-110017, India
6 Mr. A. S. Rao 9891173666 New Delhi-110017, India
7 Mr. Gautam Kumar 9971598589 New Delhi-110017, India
8 Mr. N. P. Singh 9810598148 New Delhi-110017, India
9 Mr. Hari Ram 9891025582 New Delhi-110017, India
H-1, Metro Enclave, DMRC Officer's Colony,
10 Mr. R.C.Kulshrestha 9871130998 New Delhi-110017, India
11 Mr. Pramod Kumar 9810738914 New Delhi-110017, India
12 Mr. Sanjeev Sharma 9212045886 New Delhi-110017, India
13 Mr. Sudhir Mittal 9212038937 New Delhi-110017, India
14 Mr. M.C. Gupta 9810160154 New Delhi-110017, India
15 Mr. Alok Ranjan 9810998363 New Delhi-110017, India

Study of promotional strategy of icici prudential life insurance co ltd

Study of promotional strategy of icici prudential life insurance co ltd

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