Submitted To: .

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RIMT-Maharaja Aggrasen Engineering College Mandi Gobindgarh ACKNOWLEDGEMENT

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The success of this final report is the outcome of Guidance and valuable suggestions provided by all the concerned without whom the report could not fide on the right back. I would like to express my sincere gratitude to Lect. Mrs. Paramjeet kaur, MBA Dept.,RIMT-MAEC for giving me an opportunity to do this project work. I also express my sense of deep gratitude towards PUNJAB TECHNICAL UNIVERSITY JALANDHAR for introducing a programme which enables us to learn more. Finally, I will be failing in my duty, if I do not thank my parents, friends and well wishers for their enthusiastic support and who have directly or indirectly helped in some way or the other in making this final report a success.

Preface

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Table of Content 1. Main Text 1.1 Executive Summary 5 1.2 Introduction Introduction ....6 Objectives....83

Limitations..10 2. Finding & Results

Industry profile...11 Company profile....14 Company products.18 SWOT Analysis.....21 Research methodology...22 Advantage of life insurance...27 Conclusion.30 3. Appendices ...31 4. Bibliography..34

Executive Summary Management Thesis is a part of the MBA Program. The objective of a Management Thesis is to train the student in designing and implementing a research project in respect of a business problem. A Management Thesis is the culmination of4

training provided to the student on practical applicability of the theoretical concepts learned by them. In this study we look at the options of experiential learning and embedding to the skills and how the organization get the accreditation from its training course and develop the employee exactly and smartly using applying different models like 360 o feedback, training by telephone, group training, mind mapping, perceptual awareness etc. Training is essential to order to understand how to implement the core principle of coaching and learning. Most of the people attracted up to the profession or precisely the once who are likely to make good trainers. People with integrity like helping other and enjoy making different others. Experiential learning and embedding skills is an action oriented behavioral situation. The purpose of the action situation is to have participants generate their own data about each of the key concepts to be studied. To get the best from experiential learning and embedding skills method, the trainer must be a good observer of behavior. When the groups start to examine its experiences and reflect upon them, he is in a position to assist with this process. His responsibilities in focusing learning, and making it clearer for each participant, are extremely important.

INTRODUCATION Insurance is an upcoming sector, in India the year 2000 was a landmark year for life insurance industry, in this year the life insurance industry was liberalized after more than fifty years.

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Insurance sector was once a monopoly, with LIC as the only company, a public sector enterprise. But nowadays the market opened up and there are many private players competing in the market. There are fifteen private life insurance companies has entered the industry. After the entry of these private players, the market share of LIC has been considerably reduced. In the last five years the private players is able to expand the market (growing at 30% per annum) and also has improved their market share to 18%. For the past five years private players have launched many innovations in the industry in terms of products, market channels and advertisement of products, agent training and customer services etc.

The various life insurers entered India:1. HDFC Standard Life Insurance Company Ltd. 2. Max New York Life Insurance Co. Ltd. 3. ICICI Prudential Life Insurance Company Ltd. 4. Kotak Mahindra Old Mutual Life Insurance Limited. 5. Birla Sun Life Insurance Company Ltd. 6. Tata AIG Life Insurance Company Ltd. 7. SBI Life Insurance Company Limited. 8. ING Vysya Life Insurance Company Private Limited. 9. Met life India Insurance Company Ltd. 10. Royal Sundaram Life Insurance Company Limited. 11. Aviva Life Insurance Co. India Pvt. Ltd. 12. Sahara India Insurance Company Ltd. 13. Shriram Life Insurance Company6

14. Life Insurance Corporation of India. 15. Reliance Life Insurance Company Limited. 16. Bharti AXA Life Insurance Company Limited. Through this project I want to study about the life insurance industry and also doing the comparative analysis between two insurance players in this industry. They are, ICICI Prudential Life Insurance Life insurance corporation of India

OBJECTIVES The entry of foreign MNCs and the conductive business environment fostered by the government, it is no wonder that the re-entry of private insurance has marked a second coming for the sector. In just five years, the sector has undergone a makeover, offering more choice, better services, quicker settlement, tighter regulation and greater

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awareness s the environment become more and more competitive and services and products become alike, creating a differentiation is becoming extremely tough. Thus, this project objectives is as follows . To know where Reliance life insurance Company limited & life insurance Corporation of India companies stands in the market. Find out the strength and the weakness of their plans. And making comparative analysis between the products of Reliance life insurance Company limited with Life insurance Corporation of India.

Scope of the study: This study can be conducted by comparing the performances & products of three private & government insurance players in insurance industry. The number of respondents to be surveyed can be improved. The study can be conducted in Bangalore city only.

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This study can be conducted to analyze the market stand of Reliance life insurance Company limited and Life insurance Corporation of India insurance companies.

LIMITATIONS

Thought the present study aims to achieve the above mentioned objectives in full earnest and accuracy, it may be hampered due to certain limitations, some of the limitations of this study may be summarized as follows, This study is limited to two private insurance companies only. (Reliance life insurance company limited & Life insurance corporation of India)9

This study is limited to Bangalore city only. And getting accurate responses from the respondents due to their inherent problems. They may be refusing to co-operate. Respondents may have to be contacted repeatedly or alternate respondent may have to be identified. For want of time is restricted.

Finding & Results INDUSTRY PROFILE Insurance is a contract between two parties whereby one party called insurer undertakes in exchange for a fixed amount of money on the happening of a certain event. Insurance is a protection against financial loss arising on the happening of an unexpected event. The primary purpose of Life Insurance is the protection of the family. Insurance in it's various forms protects against such misfortunes by having the losses of the unfortunate few paid by the contribution of the many who are exposed to the same risk. This is the essence of insurance- the sharing of losses and substitution of10

certainty for uncertainty. Insurance companies collect premiums to provide for this protection. A loss is paid out of the premiums collected from the insuring public and the insurance companies act as trustees of the amount collected. In is a system by which the losses suffered by a few are spread over many, exposed to similar risks. In the western world, life insurance evolved mainly from the maritime industry. Started by private financiers who used to gamble on the lives of seafarers by offering five times the money deposited with them in case of certain contingencies? In its present form, life insurance has its origin in England and made its debit in India in the year 1818.Initially, Indians were not considered on par with Europeans as far as their insurability was concerned. There were also many other failures. It was in the early part of the 20th century that some kind of legislation was made to regulate the industry. From then on life insurance made great strides in the country. At the time of independence and thereafter, there were more than 200 companies operating in India and not all of them on sound ethical principles. Many factors combined together to prompt the then government to nationalize the life insurance industry in 1956 to form the Life Insurance Corporation of India. The years from 1956 to 1999 saw the life insurance corporation of India emerge as a giant financial institution and the lone organization purveying life insurance, if we ignore the minimal presence of postal life insurance. The institution succeeded in penetrating in many areas and segments of the population and in garnering public money for public welfare.

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It was in the 1990s that the winds of change started sweeping over India and brought in their wake many changes in the economy. Liberalization ensured competition in many fields and there was a clamor that the insurance industry too is opened up to Private Indian and foreign players to provide the customer with a choice. The Malhotra committee, appointed in 1993 was given the mandate to study the industry and to suggest the changes that were necessary to make it modern and in tune with peoples aspirations. The report submitted by the committee was the precursor of the IRDA Bill. By the passing of the IRDA Bill, the Insurance sector has been opened up for the private companies to carry on insurance business. Now the life insurance industry in India is rapidly evolving and growing. It has witnessed a big growth as many Indian and foreign were entered in to the Indian insurance sector. The life insurance industry in India has become fiercely competitive with the entry of several new players including major multinational insurers after the deregulation of the sector. It has opened up a range of untapped opportunities for new entrants into the industry, as the potential market for buyers is high since the emerging market in India has a low insurance penetration and high growth rates.

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COMPANY PROFILE

ICICI Prudential Life Insurance Overview 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%. We began our operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). Today, our nation-wide team comprises of over 2100 branches (inclusive of 1,116 micro-offices), over 290,000 advisors; and 18 bancassurance partners.13

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 world-class financial solutions to customers all over India. Our vision: To be the dominant Life, Health and Pensions player built on trust by world-class people and service. This we hope to achieve by: Understanding the needs of customers and offering them superior products and service Leveraging technology to service customers quickly, efficiently and conveniently Developing and implementing superior risk management and investment strategies to offer sustainable and stable returns to our policyholders Providing an enabling environment to foster growth and learning for our employees And above all, building transparency in all our dealings The success of the company will be founded in its unflinching commitment to 5 core values -- Integrity, Customer First, Boundaryless, Ownership and Passion. Each of the values describe what the company stands for, the qualities of our people and the way we work. We do believe that we are on the threshold of an exciting new opportunity, where we can play a significant role in redefining and reshaping the sector. Given the quality of our parentage and the commitment of our team, there are no limits to our growth. Our values : Every member of the ICICI Prudential team is committed to 5 core values: Integrity, Customer First, Boundaryless, Ownership, and Passion. These values shine forth in all we do, and have become the keystones of our success.

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Mangement Profile: Board of Director 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. Chanda Kochhar, Director Mr. Barry Stowe, Director Mr. Adrian OConnor, Director Prof. Marti G. Subrahmanyam, Director Mr. Mahesh Prasad Modi, Director Ms. Rama Bijapurkar, Director Mr. Keki Dadiseth, Director Ms. Shikha Sharma, Managing Director Mr. N.S. Kannan, Executive Director Mr. Bhargav Dasgupta, Executive Director

Management Team

The ICICI Prudential Life Insurance Company Limited Management team comprises reputed people from the finance industry both from India and abroad.

Ms. Shikha Sharma, Managing Director & CEO Mr. N. S. Kannan, Executive Director Mr. Bhargav Dasgupta, Executive Director Ms. Anita Pai, Executive Vice President Customer Service & Technology Dr. Avijit Chatterjee, Appointed Actuary Mr. Puneet Nanda, Executive Vice President & Chief Investment Officer15

Life insurance Corporation of India LIC of India is one of Indias leading financial institutions, offering complete financial solutions that encompass every sphere of life. From commercial banking to stock broking to mutual funds to life insurance to investment banking, the group caters to the financials needs of individuals and corporate. The LIC has a net of over Rs. 1,800 crore and employs over 7,500 employees in its various businesses. With a presence in 82cities in India and it services a customer base of over 20,00,000. Date of Establishment 1 Sep. 1956 Address 1st Floor,West Wing, Mumbai Do-Iv, Yogakshema, Jeevan Bima Marg, Mumbai - 400 021, India Branches 8 Zonal Offices and 101 Divisional Offices Management Team T.S. Vijayan - Chairman D.K. Mehrotra - MD, LIC Thomas Mathew T - MD, LIC16

A K Dasgupta - MD, LIC Arun Ramanathan - Secretary, Financial Services, Dept. of Financial Services, Ministry of Finance, Govt of India Sindhushree Khullar - Addl. Secretary, Dept of Economic Affairs, Ministry of Finance Yogesh Lohiya - Chairman cum MD, GIC of India T.C. Venkat Subramanian - Chairman & MD, Export Import Bank of India. Overview The largest life insurance company in India, Life Insurance Corporation is fully owned by the government. It provides individual life insurance, group insurance and pension plans. Its subsidiaries include Life Insurance Corporation of India International, LIC Nepal, LIC Lanka, LIC Housing Finance and LICHFL Care Homes. It has over 12 million policy holders and over 9 lakh agents. It has underwritten more than 120 million policies. LIC saw computers in 1964. Today the company is on the Internet and is utilizing Information Technology in servicing its clients. It has bagged various award including Loyalty Awards 2008 in Insurance Sector, NDTV Profit Business Leadership Award 2007, CNBC Awaaz Consumer Awards 2007 and Outlook Money NDTV Profit Awards 2007. LIC provides a rewarding career as sales agents. It offers world class training, freedom to work and unmatched financial strength. COMPANY PRODUCT Product Details of ICICI Prudential Life Insurance Products: 17

Life Time Gold Premium Life Gold Life Stage Pension Life Time Super Pension Hospital Care Life Link Super Premier Life Pension ICICI Pru______ + MediAssure Invest Shield Life

Product of Life Insurance Corporation of India Children's Policy Komal Jeevan - Plan No. 159 Children Deferred - Plan no.41 Jeevan Kishore - Plan no.102 Jeevan Chhaya - Plan no.103 Marriage Endowment/Educational Annuity - Plan No. 90 Jeevan Anurag - Plan no.168 Endowment Policy Endowment with Profits - Plan no.14 Limited Payment Endowment with Profits - Plan no.48 Jeevan Mitra - Plan no.88 New JanaRaksha Policy - Plan no.91 Jeevan Anand Plan no. 149 Jeevan Mitra Triple Cover - Plan no.133 Group Insurance Policy

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Janashree Bima Yojana Group Insurance Scheme in lieu of EDLI Group (Term) Insurance Scheme Group Savings Linked Insurance Scheme Group Superannuation Scheme Group Mortgage Redemption Assurance Scheme Shiksha Sahayog Yojana Joint Life Policy Jeevan Saathi - Plan no.89 Money Back Policy Money Back with Profit - Plan no.75 New Money Back - Plan no.93 Jeevan Surabhi 15 yrs - Plan no.106 Jeevan Surabhi 20 yrs - Plan no.107 Jeevan Surabhi 25 yrs - Plan no.108 Jeevan Bharati Plan No 160 Jeevan Samriddhi Plan No 154, 155, 156 157 Bima Bachat- Plan no.175 Pension Plans or Annuities New Jeevan Dhara - Plan no.148 New Jeevan Suraksha Plan no. 147 Jeevan Akshay II Plan no. 163 Jeevan Nidhi Plan no. 169 Jeevan Akshay V Plan no. 183 Special Plans Term Assurance - Plan no.43 Mortgage Redemption - Plan no.52 Jeevan Aadhar - Plan no.114 Market Plus - Plan No 181 Jeevan Vishwas Plan No. 136 Jeevan Saral Plan No. 165 Jeevan Pramukh Plan No. 16719

Bima Nivesh 2005 Plan No 171 Money Plus-Plan No 180 Term Policy Convertible Term Assurance - Plan no.58 New Bima Kiran Term Assurance Anmol Jeevan I Plan No- 164 Amulya Jeevan-Plan No-177

Whole Life Policy Whole Life with Profits - Plan no.2 Limited Payment Whole Life with Profits - Plan no.5 Single Premium Whole Life - Plan no.8 Jeevan Tarang- Plan no.178 PENSION PLAN PRODUCTS OF LIC INDIA & ITS FEATURES LIC of India retirement income plan LIC of India retirement income plan (unit linked) What is the LIC of India retirement income plan? The LIC of India retirement Income plan is a saving plan designed to meet your post retirement needs. It is a plan that gives you jeene ki azaadi . It gives you the choice to remain independent even after retirement. The LIC of India retirement income plan is a participating plan. The plan comes in two forms: One with cover and one without cover Who can avail of the LIC of India retirement income plan? How old do you have to be to avail of this plan? Minimum age -18 years Maximum age 60 years

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For what term can choose to pay the premiums? 5 years 30 years At what intervals can you pay premiums? Quarterly Half yearly Annually What are the advantages of this plan? You can choose to retire at any age between 45 years and 65 years. On retirement: Annuity option: Early retirement benefits: Other products are: Money plus Auto plus Child plan Health plan SWOT ANALYSIS Strengths: a. b. c. d. e. f. Dedicated Employees. Well Efficient Management. Technology. Diversification of funds. Strong and popular brand name. Adaptability to changes.

Weakness: a. Lack of good services. b. Lack of awareness about insurance among people.21

c. Less coverage in Rural Areas. Opportunities: a. Fast growing economy. b. Increasing per capita income in India. c. Saving behavior. d. High growth of ULIP industry. Threats: a. Arrival of new entrants in the insurance industry. b. Cut throat competition within the industry

Observations RESEARCH METHODOLOGY TYPE OF RESEARCH The research includes different options. They are: Exploratory research: It is usually a small-scale study undertaken to define the exact nature of a problem and to gain a better understanding of the environment within which the22

problem has occurred. It is the initial research, before more conclusive research is under taken. Descriptive research: It is to provide an accurate picture of some aspects of market environment. Descriptive research is used when the objective is to provide a systematic description that is as factual and accurate as possible. It provides the number of time something occurs, or frequency, lends itself to satisfied calculations such as determining average number of occurrences.

Casual research: If the objective is too determined which variable might be causing a certain behavior that is whether there is a cause and effect relationship between variable, casual research must be undertaken. In order to determine causality, it is important to hold the variable that is assumed to cause the change in the other variable constant and than measure the changes in the variable. This type of research is very complex and the researcher can never be completely certain that there are no other factors influencing the casual relationship, especially when dealing with peoples attitudes and motivation. This research is about understanding the market stand and also find the strength & weakness of the products of three insurance companies by making comparing analysis of the products of the companies, mainly descriptive research methodology are23

adopted. Descriptive research was adopted since it provides accurate picture about some aspect of market environment such as which brand is performing well and what the company can do to improve its market share.

SAMPLING PROCEDURE How should the respondents be chosen? To obtain a representative sample and nonprobability sample can be drawn, they are

Judgment sample: The researcher selects population numbers who are good prospects for accurate information. For collection of research data judgment-sampling technique is used where all of them are employees of the three insurance companies as they are good prospect for accurate information. ACTUAL COLLECTION OF DATA Data sources: The sources of data include either secondary data or primary data and even some times the combination of both. The present study is more concentration on both primary and secondary data. Primary data:24

Primary data is collected through face-to face interaction with employees of the insurance companies, by meeting them in personal. Secondary data: The secondary data used for their study are inclusive of the data collected from the internet, catalogues and brochures and magazines.

METHODOLOGY The study will conduct on the bases of survey through questionnaires given to respondents. Sampling Design Population: Ludhiana Sample Size: Population of 100 Sample Technique: Convenience Sampling Statistical Tools: Correlation.

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ADVANTAGES OF LIFE INSURANCE Protection against risk of untimely death Life insurance is a product, which offers protection against the risk of death the full sum assured is made available under a life assurance policy, whereas under other savings schemes, the total accumulated savings alone will be available. Protection during old age Life insurance can also be used as a means of saving for ones future. There are a number of life insurance policies, which in addition to life cover also provide the means of investing ones income. The sum as per the policy will be received only after a period of time. This amount thus provides for the old age. Forced savings Payment of life insurance premiums is compulsory and becomes a habit. Savings in other scheme can be easily withdrawn and may be used for less worthy26

purpose. Termination of a life insurance policy by the policyholder usually results in substantial loss in benefits under the policy to the policyholder. One is thus encouraged to save and keep ones policy alive.

Educational requirements and charity The object of insurance may be to serve as a security to educational funds in respect of loans advanced for educational purpose or to provide donations to charitable institutions like hospital and school. Nomination and assignment The life insured can name the person or persons to whom the policy money would be payable in the event of his death .the proceeds of a life insurance policy can be protected against the claims of the creditors of the life insured by effecting a valid assignment of the policy. The beneficiaries are fully protected from creditors expect to the extent of any interest in the policy retained by the insured. Marketability and suitability for borrowing After 3 years, if the policyholder finds that he is unable to continue payment of premiums he can surrender a policy for a cash sum. A life insurance policy is accepted as a security for a commercial loan. Loans from the insurance company A policy holder can take a loan from his insurance company against the

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Security of his life insurance policy provided the terms of the terms of his policy allow such a loan. This loan can be taken usually after a period of 3 years from commencement of the policy and is a percentage of its surrender value.

Investment options The unit link products gives comprehensive insurance solutions that cater to an individuals dual need of earning potentially high returns as well as stay for life. Thus there is an option to invest money in the products that combine the best of insurance and investment. In a volatile market conditions it is possible to secure both as one can hedge the investment with saver investment vehicles that provide a diversified portfolio. Tax benefits The Indian income tax act provides tax concessions to the policyholder both on payment of premium and on the maturity amount. Under sec 88 the tax benefits on premium paid by an individual for life insurance policies on his own life\on the life of spouse \children minor or major, including married daughters. Protection to wife and children Under sec 6 of the married womens property act if a married man takes a policy of life insurance on his own life and expenses on the face of it to be for the benefit of his wife or of his wife and children or any of them, then it shall be deemed to be a trust for the benefit of his wife and children or any of them, According to the interest so expressed and shall not so long as any object of trust remains be subject to the control of the husband or to his creditors or form part of his estate. An insurance policy taken by a married man in the above manner is ideal way to protect the interest of his wife and children, even after his untimely death.

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CONCLUSION The financial markets have continued to witness unprecedented liberalization, growth and reforms over the last decade prompted by regulatory compulsions and a rapid integration between domestic and global markets. And as a result, one has seen substantial growth in the number of financial firms (insurance companies, mutual funds, brokerages, banks etc.) and in the number and variety of financial products and services offered by them. As the need of the people is changing so is changing the investment habits of the people and this has brought in a spate of new products and schemes where people can invest. The concept of insurance as an investment option has arrived where people first identify the varying needs of money then converts the needs into specific amount of money and time required to achieve the objective of investments plans. The objective of insurance as an investment is to ensure that investments are driven by pre determined and well thought out investment plan and that the investments are suitable and adequate to meet these plans. But for this the planner must understand the universe of investments options. He/she must be well informed on the risk and return attributes of these options. In addition to the above, companies should also innovate to come up with better products that would suit the Indian population and should also try to market and sell their products through new channels of distribution that can be effective in selling their products to the masses. People should identify their needs and then decide on the type of policy they want to invest in. insurance is a good investment option for those people who do not know where to invest and who do not want to the risk of capital erosion. But, people who are financially savvy can opt for term insurance and invest the rest in other options that may give them higher returns.

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APPENDICES QUESTIONNAIRE I,Kunj bihari paliwal, student of ICFAI National Collage, pursuing my MBA, carrying out a project work in partial fulfillment of my live project. I am undertaking a project A comparative study on the offerings of Insurance products between Reliance Life Insurance Company Ltd Vs Life Insurance Corporation of India In view of this, I hereby request you to give your feed back on the questionnaire given below. Please note that your response will be kept confidential. Please mark the appropriate answer NAME --------------------------------------------------------------------------------AGE ----------- Nationality ----------------------- Income -----------------------Contact number --------------------------------, -------------------------------------------Address--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------1. Occupation a) Businessman [ ] c) Students [ ] b) Professional d) House wife [ ] [ ]

2. Do u have Insurance? If yes of which company? a)Yes b) No 3. Have u heard about Reliance Life Insurance? a)Yes b) No 4. Are you aware about the various plans offered by Insurance Company? a)Yes b) No30

5. According to you, Insurance policies are for? a) Child [ ] b) Adults [ ] c) Couple [ ] d) Old people

[ ]

6. Is there any age, gender, or other limitation in getting insurance? a)Yes b) No 7. At what age should a person think about taking an insurance policy? . 8. Have you or any of your family members got the benefit out of Insurance? a)Yes b) No 9. Do you know about Unit Linked Insurance Plans (ULIP)? a) Yes b) No 10. How did you come to know about ULIP? Friends/Close circle Advertisements Periodicals/Books/Internet Investors

Agents

11. In which Reliance Lifes scheme did you invest? life invest life maker investment life maker premium life maker gold If any other please specify. 12. Why did you prefer above-mentioned Reliance Life policy? High returns Security wide acceptance Less risk Flexible Tax benefit If any other please specify. 13. How long have you been investing in the above Reliance Life policy? Less than 1 year 1 year-2 years 2 year-3years 3 years and more 14. How do you rate the quality of service provided by Reliance Life? Good Very good Average Bad cant say31

15. Did you try out any other Companys policy? Yes No If any other please specify. 16. How do you rate Reliance Life by our other company insurance Policy? Good Very good Average Bad cant say Thank you Date:

Signature

Bibliography BOOKS: Life and Health Insurance Kenneth Black and Harold D. Fundamental of Risk and Insurance- Emmet J Vaughan and John Willy WEBSITES www.licindia .com www.irdaindia.org www.iciciprulife.com

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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 Study of Promotional Strategy of ICICI Prudential Life Insurance Co. Ltd 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) Advertisement Effectiveness Study (With reference to Life Insurance)-IGNITE-V March-2008 RAJNI KANT Page i 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.33

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. Advertisement Effectiveness Study (With reference to Life Insurance)-IGNITE-V March-2008 RAJNI KANT Page ii Study of Promotional Strategy of ICICI Prudential Life Insurance Co. Ltd. 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) Advertisement Effectiveness Study (With reference to Life Insurance)-IGNITE-V March-2008 RAJNI KANT Page iii Study of Promotional Strategy of ICICI Prudential Life Insurance Co. Ltd. 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.34

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. Advertisement Effectiveness Study (With reference to Life Insurance)-IGNITE-V March-2008 RAJNI KANT Page iv Study of Promotional Strategy of ICICI Prudential Life Insurance Co. Ltd. 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. Advertisement Effectiveness Study (With reference to Life Insurance)-IGNITE-V March-2008 RAJNI KANT Page v Study of Promotional Strategy of ICICI Prudential Life Insurance Co. Ltd. A. EXECUTIVE SUMMERY A successful product or service means nothing unless the benefit of such a service can be35

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? Advertisement Effectiveness Study (With reference to Life Insurance)-IGNITE-V March-2008 RAJNI KANT Page vi Study of Promotional Strategy of ICICI Prudential Life Insurance Co. Ltd. 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 Objective36

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 competitors strategies. To know how they survive in the cutthroat competition. Advertisement Effectiveness Study (With reference to Life Insurance)-IGNITE-V March-2008 RAJNI KANT Page vii Study of Promotional Strategy of ICICI Prudential Life Insurance Co. Ltd. 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 authors own conclusions and future directions and expresses the authors limitation to this report. Advertisement Effectiveness Study (With reference to Life Insurance)-IGNITE-V March-2008 RAJNI KANT Page viii Study of Promotional Strategy of ICICI Prudential Life Insurance Co. Ltd.37

Advertisement Effectiveness Study (With reference to Life Insurance)-IGNITE-V March-2008 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 RAJNI KANT Page ix Study of Promotional Strategy of ICICI Prudential Life Insurance Co. Ltd. 1. INTRODUCTION38

"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 firms 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. Advertisement Effectiveness Study (With reference to Life Insurance)-IGNITE-V March-2008 RAJNI KANT Page 1 Study of Promotional Strategy of ICICI Prudential Life Insurance Co. Ltd. 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 a39

partnership. This may explain why so many from both the client and agency sides remain of the opinion that it cant 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. Lets 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. Advertisement Effectiveness Study (With reference to Life Insurance)-IGNITE-V March-2008 RAJNI KANT Page 2 Study of Promotional Strategy of ICICI Prudential Life Insurance Co. Ltd. 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 a40

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. Advertisement Effectiveness Study (With reference to Life Insurance)-IGNITE-V March-2008 RAJNI KANT Page 3 Study of Promotional Strategy of ICICI Prudential Life Insurance Co. Ltd. 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 LICs 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, Indias 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 LIC41

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. Advertisement Effectiveness Study (With reference to Life Insurance)-IGNITE-V March-2008 RAJNI KANT Page 4 Study of Promotional Strategy of ICICI Prudential Life Insurance Co. Ltd. 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, LICs business increased mainly because of the increased public awareness about insurance, which was brought about by the heavy advertisement campaigns of private players. Advertisement Effectiveness Study (With reference to Life Insurance)-IGNITE-V March-2008 RAJNI KANT Page 542

Study of Promotional Strategy of ICICI Prudential Life Insurance Co. Ltd. 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. Advertisement Effectiveness Study (With reference to Life Insurance)-IGNITE-V March-2008 RAJNI KANT Page 6 Study of Promotional Strategy of ICICI Prudential Life Insurance Co. Ltd. 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.43

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. Advertisement Effectiveness Study (With reference to Life Insurance)-IGNITE-V March-2008 RAJNI KANT Page 7 Study of Promotional Strategy of ICICI Prudential Life Insurance Co. Ltd. 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. Advertisement Effectiveness Study (With reference to Life Insurance)-IGNITE-V March-2008 RAJNI KANT Page 8 Study of Promotional Strategy of ICICI Prudential Life Insurance Co. Ltd. 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, transport44

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. Advertisement Effectiveness Study (With reference to Life Insurance)-IGNITE-V March-2008 RAJNI KANT Page 9 Study of Promotional Strategy of ICICI Prudential Life Insurance Co. Ltd. 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 well45

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. Advertisement Effectiveness Study (With reference to Life Insurance)-IGNITE-V March-2008 RAJNI KANT Page 10 Study of Promotional Strategy of ICICI Prudential Life Insurance Co. Ltd. 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 the46

public in general. Boost both employee management relation & employee morale enabling all members of the internal public to discover a new vitality. Advertisement Effectiveness Study (With reference to Life Insurance)-IGNITE-V March-2008 RAJNI KANT Page 11 Study of Promotional Strategy of ICICI Prudential Life Insurance Co. Ltd. 4.3. Affect of advertising in Brand Building Brand building through corporate advertising, defined generally as advertising that benefits a companys 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. Advertisement Effectiveness Study (With reference to Life Insurance)-IGNITE-V March-2008 RAJNI KANT Page 12 * Analysis of only selected question is discussed in this project which shows huge information of the market. Study of Promotional Strategy of ICICI Prudential Life Insurance Co. Ltd. 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.47

Advertisement Effectiveness Study (With reference to Life Insurance)-IGNITE-V March-2008 RAJNI KANT Page 13 Study of Promotional Strategy of ICICI Prudential Life Insurance Co. Ltd. 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. Advertisement Effectiveness Study (With reference to Life Insurance)-IGNITE-V March-2008 RAJNI KANT Page 14 Study of Promotional Strategy of ICICI Prudential Life Insurance Co. Ltd. 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. Advertisement Effectiveness Study (With reference to Life Insurance)-IGNITE-V March-2008 RAJNI KANT Page 15 Study of Promotional Strategy of ICICI Prudential Life Insurance Co. Ltd. 5.2 Facts & Findings TAM Media Research, a joint venture between Nielsen Media Research (NMR)/ AC Nielsen48

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. Advertisement Effectiveness Study (With reference to Life Insurance)-IGNITE-V March-2008 RAJNI KANT Page 16 Study of Promotional Strategy of ICICI Prudential Life Insurance Co. Ltd. 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. Advertisement Effectiveness Study (With reference to Life Insurance)-IGNITE-V March-2008 RAJNI KANT Page 1749

Study of Promotional Strategy of ICICI Prudential Life Insurance Co. Ltd. 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. Advertisement Effectiveness Study (With reference to Life Insurance)-IGNITE-V March-2008 RAJNI KANT Page 18 Study of Promotional Strategy of ICICI Prudential Life Insurance Co. Ltd. 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. Advertisement Effectiveness Study (With reference to Life Insurance)-IGNITE-V March-2008 RAJNI KANT Page 19 Study of Promotional Strategy of ICICI Prudential Life Insurance Co. Ltd. 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 Pension50

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. Advertisement Effectiveness Study (With reference to Life Insurance)-IGNITE-V March-2008 RAJNI KANT Page 20 Study of Promotional Strategy of ICICI Prudential Life Insurance Co. Ltd. 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 SunlifeChildrensDreamwas the top brand in the new brands list on TV. Advertisement Effectiveness Study (With reference to Life Insurance)-IGNITE-V March-2008 RAJNI KANT Page 21 Study of Promotional Strategy of ICICI Prudential Life Insurance Co. Ltd. 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 200751

Private Insurers took 55% advertising share of Life Insurance advertising in Print during 2007. Advertisement Effectiveness Study (With reference to Life Insurance)-IGNITE-V March-2008 RAJNI KANT Page 22 Study of Promotional Strategy of ICICI Prudential Life Insurance Co. Ltd. 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 LICs Aam Admi Bima Yojana and LICs Jeevan Amrut. Advertisement Effectiveness Study (With reference to Life Insurance)-IGNITE-V March-2008 RAJNI KANT Page 23 Study of Promotional Strategy of ICICI Prudential Life Insurance Co. Ltd. 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 2007.52

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. Advertisement Effectiveness Study (With reference to Life Insurance)-IGNITE-V March-2008 RAJNI KANT Page 24 Study of Promotional Strategy of ICICI Prudential Life Insurance Co. Ltd. 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. Thats 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. Advertisement Effectiveness Study (With reference to Life Insurance)-IGNITE-V March-2008 RAJNI KANT Page 25 Study of Promotional Strategy of ICICI Prudential Life Insurance Co. Ltd. Liking an advertisement does not mean that public would like to buy that product. During survey a53

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 everyones 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. Advertisement Effectiveness Study (With reference to Life Insurance)-IGNITE-V March-2008 RAJNI KANT Page 26 Study of Promotional Strategy of ICICI Prudential Life Insurance Co. Ltd. 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.54

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 oldage 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. Advertisement Effectiveness Study (With reference to Life Insurance)-IGNITE-V March-2008 RAJNI KANT Page 27 Study of Promotional Strategy of ICICI Prudential Life Insurance Co. Ltd. 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. Advertisement Effectiveness Study (With reference to Life Insurance)-IGNITE-V March-2008 RAJNI KANT Page 28 Study of Promotional Strategy of ICICI Prudential Life Insurance Co. Ltd. 6. Recommendation about promotional strategies The suggestions have been classified into two categories.55

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. Advertisement Effectiveness Study (With reference to Life Insurance)-IGNITE-V March-2008 RAJNI KANT Page 29 Study of Promotional Strategy of ICICI Prudential Life Insurance Co. Ltd. 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 fools 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. Advertisement Effectiveness Study (With reference to Life Insurance)-IGNITE-V March-2008 RAJNI KANT Page 30 Study of Promotional Strategy of ICICI Prudential Life Insurance Co. Ltd. 7. Media strategy of ICICI Prudential Life Insurance Co. Ltd.56

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: Advertisement Effectiveness Study (With reference to Life Insurance)-IGNITE-V March-2008 RAJNI KANT Page 31 Study of Promotional Strategy of ICICI Prudential Life Insurance Co. Ltd. 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.57

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 ones 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. Advertisement Effectiveness Study (With reference to Life Insurance)-IGNITE-V March-2008 RAJNI KANT Page 32 Study of Promotional Strategy of ICICI Prudential Life Insurance Co. Ltd. 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:58

having a tax planner by the name of Chintamani on radio, who would answer consumers 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 Prudentials 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. Advertisement Effectiveness Study (With reference to Life Insurance)-IGNITE-V March-2008 RAJNI KANT Page 33 Study of Promotional Strategy of ICICI Prudential Life Insurance Co. Ltd. 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 players59

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 INDYs Award for Excellence in Mass Communication in the category of Most Creative AdvertisementTelevision. Advertisement Effectiveness Study (With reference to Life Insurance)-IGNITE-V March-2008 RAJNI KANT Page 34 Study of Promotional Strategy of ICICI Prudential Life Insurance Co. Ltd. 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 familys 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 Ads60

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 companys 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. Advertisement Effectiveness Study (With reference to Life Insurance)-IGNITE-V March-2008 RAJNI KANT Page 35 Study of Promotional Strategy of ICICI Prudential Life Insurance Co. Ltd. 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 Pictures 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 themselves61

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 Bajajs 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. Advertisement Effectiveness Study (With reference to Life Insurance)-IGNITE-V March-2008 RAJNI KANT Page 36 Study of Promotional Strategy of ICICI Prudential Life Insurance Co. Ltd. Similarly, Tata AIG entered into an agreement with Westside to set u