How to theory apply in to practical of marketing management to icici bank

HOW TO THEORY APPLY IN

TO PRACTICAL OF

MARKETING MANAGEMENT

TO ICICI BANK

10/19/2013 Babasabpatilfreepptmba.com 1

List of Topics

• Introduction

• Mission

• Vision

• Core and auxiliary needs

• Orientation and philosophy

• SWOT analysis

• Schemes And Punchline


INTRODUCTION

ICICI Prudential Life Insurance Company is a joint

venture between ICICI Bank, which is one of India's foremost

financial services companies, which is a leading international

financial services group headquartered in the United Kingdom.

ICICI Prudential began the operations in December 2000. Today,

this company has over 2100 branches, which include 1,116 micro-

offices, over 290,000 advisors and 18 branch assurance partners.


Mission

We will leverage our people, technology, speed and

financial capital to:

• delivering high quality, world-class services.

• expand the frontiers of our business globally.

• play a proactive role in the full realisation of India’s potential.

• maintain high standards of governance and ethics.

• contribute positively to the various countries and markets in

which we operate.

• create value for our stakeholders.


Vision :

To be the dominant Life, Health and Pensions player

built on trust by world-class people and service.


Orientation and Philosophy SL. No/ Orientation Extent Justification

1). Product / service Concept

Partially

There is no superior Service. Service are given

importance.

2). Selling concept Fully Aggressive selling activities were given

importance. Central theme is to Fit the Right

customers to your Service.

3). Marketing concept

Fully

The key to achieving organizational goals consists

in determine the needs and wants of target market

and delivering the desired satisfaction more

effectively and efficiently than competitors

4). Societal marketing concept

Fully

There is return to environment. And concerned

with safety, health.

5). Production Concept

Partially

There is no mass production but mass

distribution is their. 10/19/2013 Babasabpatilfreepptmba.com 7

SWOT Analysis

STRENGTHS :

– ICICI Prudential is No. 1 private life player in India.

– Innovative insurance policies with rider benefits.

– One of the largest financial Institution of India’s.

– Second largest bank with network of 469 branches and 1740 ATM’s across India.

– A huge database of corporate clients, retail customer, and bank customers of ICICI.

– Training provided to all people associating with ICICI prudential.

– Highest paid up capital deposited in IRDA, in comparison to all players.

– Assets base of ICICI is more then Rs 1, 08,000 Crores.


WEAKNESS

– Very huge premiums of policies Compare to other

insurance sector.

– Minimum premium is 19000.(Expect tax saving policy

only 10,000)

– Target upper class people only.

– Policy charges are very high And problematic to advisors

also.

– Poor distribution is in English language only.


OPPORTUNITIES :

– Tie up with more corporate agents all over India.

– Tie up with broker also

– No. of adopting new technology.

– Strong Brand of Company Helps to boost sales in

market


THREATS :

– Threat from existing life insurance players

– Threat from new entrance.

– Threat to substitute products

– Change in the policy of IRDA

– Competition from more & more new players.


Core And Auxiliary needs

Education Insurance Plans - Protection – Good Education

Wealth Creation Plans - Protection - Safety

Premium Guarantee Plans - Protection - Earn money

Protection Plans - Protection - Security

Retirement Solutions - Protection - Safety purpose.

Health Coverage Plans - Protection - Long life

Rural Plans - Protection - Development

Micro Insurance Plans - Protection - Economy


Services of ICICI

Education Insurance Plans

• One of your most important responsibilities as a parent is to ensure that your child gets

the best possible education that can be provided.

• ICICI Prudential offers a wide portfolio of education insurance plans that are designed

to provide peace of mind to you, as a parent, that your child's education will be secure.

These plans ensure that money is made available at the crucial junctures in a child's

education - Class X, Class XII, graduation and post-graduation - to fund crucial

commitments for the child's future.

• Importantly, education insurance plans ensure that in the unfortunate event of the death

of a parent, the child's education continues unhampered.


• Smart Kid New Unit-linked

• Regular Premium

• Smart Kid New Unit-linked

• Single Premium

• Smart Kid Regular Premium


Wealth Creation Plans

• Wealth Creation Plans give the customer the dual benefit of

protection along with the returns on their savings.

• For customers who would prefer low risk options and at the same

time would want to get returns on their investment, we offer non-

linked insurance plans. These plans offer returns on the amount

invested while ensuring the plan is not affected by the fluctuations in

the equity markets.


Wealth Creation Plans

• Wealth Advantage

• Life Stage Assure

• Life Time Gold

• Life Link Super

• Life Stage RP


Premium Guarantee Plans

• Invest Shield Life New

• Invest Shield Cash Bank


Protection plans

The sole objective of these plans, as their name indicates, is to

serve the protection needs of the customer and by doing so,

safeguard one’s family from the financial implications of

unfortunate circumstances than one cannot foresee.

Protection Plans

• Pure Protect

• Life Guard

• Save 'n' Protect

• CashBak

• Home Assure


Retirement Solutions

ICICI prudential retirement solutions also known as ICICI Pru pension plans have

been designed to cater to the diverse requirements that characterize each individual.

A retirement plan is an assurance of regular income source to continue with your

present lifestyle. ICICI Prudential understands the importance of a pension plan for

you and brings innovative and customized products and plans to suit each customer

• Life Stage Pension

• Lifetime Super Pension

• Life Link Super Pension

• Forever Life Plan

• Immediate Annuity


Health coverage plans

Hospitalisation coverage:

• MediAssure

A reimbursement hospitalization plan covering hospitalization stay and treatment. The claim payout is based on actual expense incurred.

• Hospital Care II

A fixed benefit cashless hospitalization & surgical plan covering various stages of treatment and over 1000 surgeries.

Critical illness coverage:

• Crisis Cover

A comprehensive health insurance policy that covers 35 critical illnesses, death and disability


Health Coverage Plans

• Health Saver

• Medi Assure

• Hospital Care

• Crisis Cover

• Cancer Care

• Diabetes Care Active

• Diabetes Assure


Rural Plans

ICICI Prudential covers more than 6,50,000 lives across as many as 17 states

in India. Both our rural plans, Suraksha and Suraksha Kavach, are tailored

to meet the unique requirements of rural investors. The plans offer: Life

Cover ,Low and Affordable Premiums And Hassle Free Procedure

PLANS ARE

• ICICI Pru Suraksha

• ICICI Pru Suraksha Kavach


ICICI Pru Group Solutions Advantage

• 1. Group Super Annuation: This flexible plan for both, defined benefit and defined contribution, provides retirement & tax benefits applicable to an approved superannuation trust. Read more

• 2. Group Gratuity Plan: This hassle-free plan enables you to effortlessly fund your statutory gratuity obligation. Read more

• 3. Annuity Solutions: This suite of retirement plans enables you to provide your employees with a steady income all through their retired lives. Read more

• 4. Group Term Insurance Plan: This insurance plan provides affordable cover to all your employees. Read more

• 5. Group Term Insurance in lieu of EDLI: This plan is certified by Employee Provident Fund Organization (EPFO) as a superior alternative to Employee's Deposit Linked Insurance Scheme.


Punchline

“ May your life be glorious”.

In hindi

“ Zindagi Tumhari Roshan Rahe”.


Major competitors of icici prudential.

•

ICICI PRUDENTIAL

BAJAJ ALLIANZ

MAX NEW YORK LIFE

INSURANCE

LIC

HDFC LIFE INSURANCE


Bajaj allianz

A joint venture between Bajaj Finserv and Allianz SE,

Bajaj Allianz Life Insurance Co. Ltd. is one of the major

insurance players in national and international market with

assets more than a trillion to its credit. It has its units in 70

nations all across the world and has deployed more than

50,000 Insurance Advisers in its different units.


Some of its popular plans are:

• Health Plans,

• Women Insurance Plans,

• Term Plans,

• Pension Plans

• Micro Insurance

• Children plans


Tata AIG Life Insurance

The Limited firm is a joint venture between

American International Group, Inc. (AIG) and Tata Group. It

is one of the biggest commercial groups in India and provides

variety of standard and customized life insurance schemes.



• Life Assure Educare

• Life Invest Assure Plus

• Life Easy Retire

• Life Health Protector

• Life Assure Lifeline Plans

• Life Invest Assure Swarna Jeevan

• Life Invest Assure Future

• Retirement Planning.


Max New York Life Insurance

A joint venture between New York Life

International and Max India Limited, the firm began its financial

functions in India in 2001. It takes pride of being one of the the

first life insurance firm to be felicitated by the IS0 9001:2000

status. With over 133 divisions all over India, Max New York

provides an assortment of flexible scheme enveloping both health

and life insurances. The company offers different plans based on

individual needs and to meet its long term fiscal objectives.



• Strategic Products Plans

• Retirement Plans

• Savings Plans

• Health Plans

• Children Plans

• Protection Plans

• Investment plans etc.


Life insurance corporation

LIC offers life insurance protection under group

insurance policies to various groups such as employer-employees,

professionals, co-operatives, weaker sections of society, etc. LIC

provides insurance coverage to people at subsidized rates under

Social Security Group Schemes. Besides Providing insurance

coverage, life insurance corporation of India also offers group

schemes to employees, which provide funding of gratuity, pension

liabilities and leave encashment liabilities of the employers.



– LIC Health Insurance Plans

– LIC Pension Plans

– LIC children plans

– LIC Term Assurance Plans

– LIC basic life insurance plans

– LIC Group Life insurance plans


HDFC

HDFC and Standard Life first came together for a possible

joint venture, to enter the life Insurance market, in January

1995. It was clear from the outset that both companies shared

similar values and beliefs and a strong relationship quickly

formed. In October 1995, the companies signed a 3-year joint

venture agreement.



• Health plans

• Retirement plans

• Children plans

• Saving and investment plans

• Protection plans.


Brand competitors

PRODUC

TS

ICICI HDFC LIC BAJAJ

Child plans Smart kid plan HDFC SL

Youngster Super

II

Komal Jeevan Children gain

Retirement

solution

Lifetime super

pension

HDFC Personal

Pension Plan

Jeevan Suraksha. Swarna

Vishranth

Health Health saver HDFC Surgicare

Plan

Health Plus Health Ensure


Strengths of Hdfc.

• Domestic image of HDFC supported by Prudential’s international image is

strength of the company.

• Strong and well spread network of qualified intermediaries and sales person.

• Strong capital and reserve base.

• Huge basket of product range which are suitable to all age and income groups.

• Large pool of technically skilled manpower with in depth knowledge and

understanding of the market. •


Weaknesses of hdfc

• Heavy management expenses and administrative costs.

• Low customer confidence on the private players.

• Vertical hierarchical reporting structure with many designations and cadres

leading to power politics at all levels without any exception.

• Poor retention percentage of tied up agents.


Swot analysis on LIC OF INDIA

• Strengths :

1) Brand Image

2) Govt Guarantee

3) Claims settlement

4) Pan India presence

5) Large product portfolio


weakness

1) Lethargic Staff

2) Mediocre Top Bosses

3) Large scale Corruption in Main Office


Strengths of Bajaj allianz

• Risk Management.

• Service Sector Management (S S E).

• The company also provides innovative products to cater to

different needs of different customers.

• The company provides customer service of the highest order.


Weaknesses of bajaj allianz

• Low customer confidence on the private players

• Ultra-Slow decision making process

• Internal problems between Top Management and lower cadre

Employees


OBJECTIVES OF LIC

• To propagate the idea and practice of life insurance in rural

areas among financially backward people so that their risks

were covered in the event of death.

• The LIC of India intends to increase the mobility of individual

savings to the maximum extent possible.

• The LIC of India seeks to employ the investments of its

customers in the best possible manner while at the same time

prioritizing matters of national importance.


Objectives of HDFC

• The company aims at meeting the dynamic expectations of its

investors by adding innovative schemes and products to its

portfolio.

• Efficiency of operations

• Meet social and rural sector obligations


Objectives of bajaj allianz

• Focus on the productivity of each consultant,coroporate or

individual ,while stressing on the quality of proposals

• Quick roll out of products


Whom to attack and whom to avoid

Competitors Strong Weak Close Distant Good Bad Attack Avoid

HDFC

LIC

BAJAJ


• ICICI have to attack HDFC.

• ICICI have to attack LIC.

• ICICI have to avoid Bajaj Allianz.


MARKETING MIX

MARKETING-MIX MODELS analyze the data from a variety

of sources, such as retailers scanner data, company shipment

data, pricing, media and promotion spending data, to understand

more precisely the effects of specific marketing activities.

They are :-

PRODUCT

PRICE

PLACE

PROMOTION


PRODUCT:- stands for the goods and services offered by a

company to the target market, to satisfy needs and wants of the

customer.

PRICE:- refers to the money value that the consumers have to

pay to buy the product or service.

PLACE:- stands for physical distribution activities through

which the product moves from the factory to the customer .

PROMOTION:- refers to the activities of personal selling,

advertising, and communicating product benefits and attributes

to target consumers to persuade them to purchase


IDENTIFICATION OF ICICI IN MIX

PRODUCT PRICE PLACE PROMOTIO

N

SMART KID

NEW UNIT –

LINKED

Rs.12000 and above

COMPANY They are providing

offers and discounts

during festival

seasons.

LIFE TIME

GOLD

Rs. 50000 and above AGENTS

LIKE:- TV

advertisement, news

papers, banners,

internet adds, and

offers like

INVEST SHIELD

LIFE NEW

Rs. 5000 and above

PERSONAL

SELLING

Personal selling,

sales promotion,

public relations

LIFE GURD

PLAN

Rs. 20000 and above

CUSTOMERS


PRODUCT PRICE PLACE PROMOTION

LIFE STAGE

PENSION

Rs. 20000 and above COMPANY They are providing

offers and discounts

during festival

seasons.

HEALTH SAVER Rs. 5000 and above

AGENTS

LIKE:- TV

advertisement, news

papers, banners,

internet adds, and

offers like

PERSONAL

SELLING

Personal selling, sales

promotion, public

relations

CUSTOMERS


Premium for 1 Year plans in Rupees (Inclusive of Service Tax, Education Cess & Higher Education Cess

@ 10.3%)

Plan Details

Plan A

Individua

l

Plan B

2 Adults

Plan C

2 Adults & 1

Kids

Plan D

2 Adults & 2

Kids

Plan E

1 Adult & 1

Kid

Plan F

1 Adult & 2

Kids

Age of senior most

family member 2 Lac 3 Lac 2 Lac 3 Lac 4 Lac 2 Lac 3 Lac 4 Lac 2 Lac 3Lac 4 Lac 2 Lac 3 Lac 4 Lac 2 Lac 3 Lac 4 Lac

5 - 18 yrs. 1,956 2,250 - - - - - - - - - - - - - - -

19 - 35 yrs. 2,644 3,046 3,965 4,570 6,854 5,139 5,920 8,899 6,312 7,270 10,94

3 3,472 3,999 6,019 4,329 4,985 7,516

36 - 45 yrs. 3,312 3,679 4,968 5,519 7,702 6,141 6,869 9,746 7,314 8,219 11,79

1 4,023 4,521 6,485 4,831 5,460 7,940

46 - 55 yrs. 5,896 6,552 9,434 10,48

3

14,67

5

10,60

7

11,83

3

16,71

9 11,781

13,18

3

18,76

3 6,479 7,251

10,32

0 7,064 7,942

11,42

6

56 - 60 yrs. 8,026 11,55

7

12,84

1

17,97

7

12,73

1

14,19

2

20,02

1 13,904

15,54

2

22,06

5 7,647 8,548

12,13

6 8,125 9,121

13,07

7 10/19/2013 Babasabpatilfreepptmba.com 52

Factors affecting consumer buying behavior

FACTORS HIGH/MEDIUM/LOW IMPACT

JUSTIFICATION

Cultural factors Medium Impact The ICICI prudential insurance

slightly based on the buyers

culture, subculture, social class of

the buyer.

Social factors

Low Impact Consumers reference groups,

family, role and status has low

impact

Personal factors High Impact The company plans are categorized

such as children plans, retirement

plans, wealth creation plans etc..

Psychological factors Medium Impact This company plans depend on

only beliefs and attitudes. Not on

motivation and perception 10/19/2013 Babasabpatilfreepptmba.com 53

BUYING DECISION PROCESS

This is important for anyone making marketing decisions. It

forces the marketer to consider the whole buying process.


BUYING DECISION PROCESS

INFORMATION SEARCH

NEED RECOGNITION

EVALUATION OF ALTERNATIVES

PURCHASE

POST PURCHASE EVALATIION


Need Recognition

First basic need of purchasing is to be

identified.

Example : Safety & Income


Information Search

Through information sources like

agents, friends, internet, & advertise etc.


Evaluation of Alternatives

Evaluation of substitutes for purchasing

product.

Example : We have to evaluate health plan of

ICICI with health plan of HDFC.


Purchase

After evaluating all alterative plans or

schemes customer choose best alternative

which fulfils his/her need.


Post-purchase evaluation

Experience of customer after using

plans or schemes. Depending his/her

experience, customer may or may not

satisfied.


CONCLUSION

ICICI prudential Life Insurance Company is the well established

company. It will be responsive to customer requirements. It will provide

societal, environmental, & economic benefits to the customers & geographic

where they operate.

After doing this presentation we have come to know that core and

auxiliary needs, Orientation and Philosophy, SWOT analysis, schemes,

competitor’s analysis, brand competitors, buying decision process, factors

influencing buying behavior and marketing mix of ICICI prudential.

Finally we have learnt presentation skills, group dynamics and co

ordination.


How to theory apply in to practical of marketing management to icici bank

Business

Transcript of How to theory apply in to practical of marketing management to icici bank