promotional strategies adopted by insurance industry
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Promotional Strategies adopted by Insurance Industry
Executive summery
A successful product or service means nothing unless the benefit of such a
service can be communicated clearly to the target market. An organization
promotional strategy can consist of:
Advertising: Is any non-personal paid form of communication using any
form of mass media.
Public relations: Involves developing positive relationships with the
organization media public. The art of good public relations is not only to
obtain favorable publicity within the media, but it is also involves being able to
handle successfully negative attention.
Sales promotion: Commonly used to obtain an increase in sales short term.
Could involve using money off coupons or special offers.
Personal selling: Selling a product service one to one. By personalizing
advertising, response rates increase thus increasing the chance of improving
sales.
Direct Mail: Is the sending of publicity material to a named personwithin an
organization
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Preface
In this project I review the tools and techniques used to measure Advertising
Effectiveness. Effectiveness is the measure of the gap between results and
objectives. Lower the gap, higher the effectiveness. Thus it is an evaluation of
the advertising process. The advertising evaluation process is frequently called
accountability.
Management wants the advertising managers to identify exactly what results
were obtained for the advertising investment and to provide evidence of the
return on investment. After all, advertising uses the scarce resources that could
be invested in a number of ways. Therefore, the question that management poses
is, "Is advertising the best way to use those funds?" And it is the job of the
advertising campaign planner to be able to answer that question. To do so
usually requires some form of advertising evaluation.
Evaluation of advertising campaign effectiveness is a form of research though itis 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.
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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.
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.
Introduction of insurance
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Humans have always sought security. This quest for security was an
important motivating force in the earliest formations of families, tribes, and other
groups. The groups have been the primary source of both emotional and physical
security since the beginning of humankind. Humans today continue their quest o
achieve security and reduce uncertainty. We still rely on groups for financial
stability. With industrialization our physical and economic security has diminished.
Mankind is exposed to many serious hazards, which cause stoppage of income.
The biggest worry any human being has is the economic worry. He is always
thinking of tomorrow and the days to come and he will be planning to meet the
demands of his family, his business and that of his own needs. The economic
worries may arise due to stoppage of income. Our income dependent, wealth
acquiring lifestyle renders us and our families more vulnerable to environmental
and social changes over which we have no control.
There may be accidents, sickness disability, or due to premature death of the
breadwinner. It is impossible to prevent such calamities. But it is always possible
to provide against the loss of income that may result out of such these perils.
Definition of insurance
General definition:
In the words of John Magee, Insurance is a plan by themselves which
large number of people associate and transfer to the shoulders of all, risks thatattach to individuals.
Contractual definition:
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In the words of justice Tindall, Insurance is a contract in which a sum of
money is paid to the assured as consideration of insurers incurring the risk of
paying a large sum upon a given contingency
In simple terms it is a contract between the person who buys Insurance and an
Insurance company who sold the Policy. By entering into contract the Insurance
Company agrees to pay the Policy holder or his family members a predetermined
sum of money in case of any unfortunate event for a predetermined fixed sum
payable which is in normal term called Insurance Premiums.
Insurance is basically a protection against a financial loss which can arise on the
happening of an unexpected event. Insurance companies collect premiums to
provide for this protection. By paying a very small sum of money a person can
safeguard himself and his family financially from an unfortunate event.
Types of Insurance
Introduction
"Advertisements are sometimes spoken of as the nervous system of the business
world. As our nervous system is constructed to give us all the possible sensations
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TYPESOFINSURAN
CE
Life
Insurance
Life
InsuranceHealth Care
Insurance
Health Care
InsuranceHome
Insurance
Home
InsuranceTravel
Insurance
Travel
InsuranceAuto
Insurance
Auto
Insurance
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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 general manager, effective advertising produces a return on his firm's
expenditure." "In fact, effective advertising must achieve all four goals,
delivering messages to the right audience, thereby creating sales at a profit. Most
advertisers have begun only recently to set goals in all four areas & measure
progress toward them. Some advertisers have set communications & audience
goals, & measured copy & media effects, but few advertisers have set dollar
goals & measured sales & 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 & 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 & control have been around for more than 50 years &
the industry standards.
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There are methods to test every aspect of marketing promotion, sales support
and media mix, and analytical tools to establish a direct relationship to sales
for complete accountability. The key to this is applying a full advertising
research curriculum. This requires involvement of both sales and
marketing management and the advertising/promotions supplier coordinating
their efforts with the researcher. It is a partnership.
This may explain why so many from both the client and agency sides remain of
the opinion that it can't be done. The fact is that a full curriculum can be
implemented, is already integral to nearly every brand leader, and you can do it
as well. It just takes a little planning and co-operation.
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.
Background
According to industry observers, one of the main reasons for the low insurance
penetration in India was the ineffective distribution and marketing strategies
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adopted by LIC. The company reportedly never had any strategic marketing
game plan, and due to its monopolistic nature the need for serious marketing
efforts was never felt. The advertising initiatives were limited to some print and
electronic media advertisements that typically talked about LIC's products being
great tax saving tool for salaried individuals who came under the income-tax
bracket. Despite all this, LIC was synonymous with insurance in India and it had
established an enviable brand image for itself, especially in the rural areas and
small towns.
However, with the entry of new players, the insurance market changed almost
overnight. Analysts commented that the private insurers seemed all set to make
the industry marketing-driven, wherein technical and service excellence would
be the key factors of success. The private companies, in a bid to make their
presence felt and their brand noticed, initiated a series of aggressive marketing
and promotion initiatives, something that buyers of insurance were not
accustomed to.
In July 2002, India's state owned insurer, Life Insurance Corporation of India
(LIC) announced aggressive marketing plans with a budget of around Rs 1
billion. The aim of this unusual decision was to woo customers across the
country through a multimedia campaign including advertisements on the radio
and the press media, the outdoor media and the television. However, this did not
come as a major surprise to industry observers who said that LIC did not have
too many options.
With the insurance bill being passed in 2000, the Indian insurance sector saw a
host of private players enter the market with multinationals as their partners.
These new players resorted to aggressive marketing and advertisement strategies
- something the market had never seen earlier.
This sudden spurt of advertisements and awareness programs was visible on all
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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
Aliaz Bajaj 200
Om Kotak Mahindra 150
ICICI Prudential 146Source: 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 &promotion.
According to reports, LIC's business increased mainly because of the increased
public awareness about insurance, which was brought about by the heavy
advertisement campaigns of private players.
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Research Objectives
Primary Objective
To understand & measure the impact of advertising in themarket.
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 & finally the choice of a plan while
buying it.
Secondary Objective
To know the promotional strategies of ICICI prudential.
To know how they face their competitor's strategies.
To know how they survive in the cutthroat competition.
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Industry Objective
The business of life insurance in India in its existing from started in India in the
year 1818 with the establishment of the Oriental Life Insurance company in
Calcutta. Some of the important milestones in the life insurance business in India
are:
1912: The Indian Life Assurance Companies Act enacted as the first statute to
regulate the life insurance business.
1912: The Indian Life Assurance Companies Act enacted to enable the
government to collect statistical information about both life and non-life
insurance business.
1938: Earlier legislation consolidated and amended to by the Insurance Act with
the objective of protecting the interests of the insuring public.
1956: 245 Indian and foreign insurers and provident societies taken over by the
central government and nationalized. LIC formed by an Act of parliament, viz.
LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of
India.
The general insurance business in India, on the other hand, can trace its roots
to the Triton Insurance Company Ltd., the first general insurance company
established in the year 1850 in Calcutta by the British. Some of the important
milestones in the general insurance business in India are:
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1907: The Indian Mercantile Insurance Ltd. Set up, the first company to transact
all classes of general insurance business.
1957: General Insurance Council, a wing of the Insurance Association of India,
frames code of conduct for ensuring fair conduct & sound business practices.
1968: The Insurance Act amended to regulate investments and set minimum
solvency margins and the tariff Advisory Committee set up.
1972: The General Insurance Business (Nationalization) Act, 1972 nationalized
the general insurance business in India with effect from 1st January 1973.
107 insurers amalgamated and grouped into four companies viz. the National
Insurance Company Ltd., the New India assurance Company Ltd., the Oriental
Insurance Company Ltd. And the United India Insurance Company Ltd. GIC
incorporated as a company.
Insurance sector reforms in 1993, Malhotra Committee, headed byformer Finance secretary and RBI Governor R.N. Malhotra, were formed to
evaluate the Indian insurance industry and recommend its future direction. The
Malhotra Committee was set up with the objective of completing the reforms
initiated in the financial sector. The reforms were aimed at" creating a more
efficient and competitive financial system suitable for the requirements of the
economy keeping in mind the structural changes currently underway and
recognizing that insurance is an important part of the overall financial system
where it was necessary to address the need for similar reforms" In 1994, the
committee submitted the report and some of the key recommendations included:
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Structure
Government stake in insurance companies to be brought down to 50%.
Government should take over the holdings of GIC and its subsidiaries so
that these subsidiaries can act as independent corporations. All the
insurance companies should be given greater freedom to operate.
Competition
Private Companies with a minimum paid up capital of Rs. 1bn should
be allowed to enter the industry. No Company should deal in both Life
and General Insurance through a single entity. Foreign companies may
be allowed to enter the industry in collaboration with the domestic
companies.
Postal Life Insurance should be allowed to operate in the rural market.Only one state Level Life Insurance Company should be allowed to
operate in each state. Regulatory Body the Insurance Act should be
changed. An Insurance Regulatory body should be set up. Controller of
Insurance (Currently a part from the Finance Ministry) should be made
independent.
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Investments
Mandatory Investments of LIC Life Fund in government securities to
be reduced from 75% to 50%. GIC and its subsidiaries are not to hold
more than 5% in any company (There current holdings to be brought
down to this level over a period of time). Customer Service LIC
should pay interest on delays in payments beyond 30 days.
Insurance companies must be encouraged to set up unit linked
pension plans. Computerized of operations and updating of technology
to be carried out in the insurance industry.
The Insurance Regulatory and Development Authority Reforms in theInsurance sector were initiated with the passage of the IRDA Bill in
Parliament in December 1999. The IRDA since its incorporation as a
statutory body in April 2000 has fastidiously stuck to its schedule of
framing regulations & registering the private sector insurance
companies.
Attracted by the huge untapped potential, many private players entered
the market after the Insurance bill was passed in late 2000. A majority
of these were collaborations between an Indian company & leading
MNC insurance/financial services co.
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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.
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.
Secondary Data collection
Various websites were consulted to collect literature relevant to the topic.
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 & likeability.
The top ads are selected on the basis of their score.
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Literature Review
Media Exposures in Rural Market
Corporate Advertising
Learning of ICICI prudential
Affect of advertising in brand building
Power of emotional branding by ICICI prudential
Promotional strategy
Message & media strategy
Strategy
Internet promotion through website
Mobile promotional
Television advertising
Wall hoardings Promotions strategy
Radio advertising strategy
Print media advertising strategy
Media Exposures in Rural Market
The rural middle-class constitutes a potential market lying to be tapped by
any industry. There are 16.4 million urban middle-class households and 15.6
million rural middle class households in the country, but the latter had a better
purchasing power because they do not incur any expenditure on rent, transport
and school fees, compared to their urban counterparts, who spend a sizable
portion of their income on these items.
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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.
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 & communication,"
Key Summary
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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.
The estimated annual business from rural markets in 2008 was Rs. 1,23,000 crore,
comprising Rs. 65,000 crore of FMCG, Rs. 5000 crore of durables, Rs. 45,000
crore of agricultural inputs & Rs. 8,000 crore of two wheelers and 4 wheelers. 29%
of the rural people own cars, 27% own colour televisions, 24% own refrigerators &
10% own washing machines.
Corporate advertising
How a company does announced a name change especially when the old name
was well known? How does the company explain itself to constituents who may
have known the company quite well in an earlier incarnation but may be
struggling to figure out what the new organization stands for? How can the
company create a new image while retaining the strengths of the old one? Andwhat 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.
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
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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.
The advertising idea, which was encapsulated in symbols of protection from the
initial print campaign, culminated in the corporate film whereSINDOOR was used
as an endearing and lasting symbol of protection.
Key Summery
Create a good citizen image through consistent & dedicated effort. Convey the
organizations commitment to the concerned publics as well as to the masses &
eliminate prejudices, if any held by opinion leaders in particular & by the public
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in general. Boost both employee management relation & employee morale
enabling all members of the internal public to discover a new vitality.
Advertisers aimed at appealing to the main stream, middle class family.
ICICI prudent strategy was to highlight the importance of the nuclear
family, the neighborhood and the country as a whole.
Each group is attracted to a specific type of content, which makes it
easier for advertisers to target a specific audience a certain way
Mechanism points out that our media is becoming global, where people
all over the world are being influenced by segment making media.
Wednesday, April 25, 2007(times of India)
Learning of ICICI prudential
ICICI prudential has been advertising its retirement solutions
through the chintamani campaign the focus of this ad campaign
has been on educating consumers about its solutions, which
provide tax savings & investment options. ICICI targeted the
office-going segment & sent direct mailer to them through the
dabbawallas.
ICICI sole mention has been to education the customers about the
services it provides and the related attributes and benefits.
Marketers have begun to realize the importance of teaching the
consumer about their product & services and how these products
and services would benefits him.
(III sem consumer behavior book (page no. 101))
Affect of advertising in Brand Building
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Brand building through corporate advertising, defined generally as
advertising that benefits a company's image by emphasizing its own resources,
skills and/or character. Many astute business people now recognize corporate
brands as fundamental business assets, and have begun reaching out to
customers, prospects, and the financial community by advertising those brands.
Brand building advertising is synonymous with product advertising and is
commonly seen in traditional mass media, including TV, radio, magazine, and
newspaper. Brand building advertisements tend to be product/service- (or
retailer-) oriented with the purpose to establish a positive image and creating
demand for a product or service that leads to eventual purchase. The
communication route is typically one-to-many and is designed to reach a mass
audience by using a tactic of at capturing the attention of users.
http://www.asiainsurancereview.com/pages/awards/awardswinners2008.asp
Power of emotional branding by ICICI prudential
More & more companies are now days trying to market and promote their products
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using emotional advertising. Today we see lot of advertisement in different
segments using different Relationship or bonding of individuals with others
Take an example of ICICI Prudential, they successfully used following emotional
branding techniques to create there brand and marketed there products
http://www.managementparadise.com/forums/archive/index.php/t-
18260.html
Promotional strategy
A
D P
PromotionalStrategy
P S
A---> Advertising: Is any non-personal paid form of communication using any
form of mass media.
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P----> 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.
S---->Sales promotion: Commonly used to obtain an increase in sales short
term. Could involve using money off coupons or special offers.
P---->Personal selling: Selling a product service one to one. By personalizing
advertising, response rates increase thus increasing the chance of improving
sales.
D---->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 outmessage 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?
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 & Retire from work, not
life
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Www.yahoomail.com
Www.way2sms.com
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INC student portal
Www.monster.com
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Mobile promotional
Mobile Promotions is a very individual business. From road shows &
sampling campaigns to hospitality & shopping center promotions, we have a
team of people who will help you stand out from the crowd.
Television advertising
The typical approach followed by national brands to attack the lower end of the
market is to introduce an offering, which is priced just above tunorganized market's
offering. The idea is to upgrade the consumer from that to the branded one.
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Wall hoardings Promotions strategy
Wall hording promotional strategy used by ICICI prudential company. In many
places in Surat puts the hoardings of ICICI prudential & also puts the hoarding in a
malls so more awareness of the ICICI prudential life insurance company. Some
wall hoardings in a mall shown as below in the picture
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Radio advertising strategy
A radio commercial (in the USA also called a spot by people in the business)
is a form of advertising via the medium of radio. Airtime is purchased from
a station or network in exchange for airing the commercials.
The first radio commercial is credited to WEAF, New York on August 28,
1922 for the Queensbury real estate corporation. The ten-minute live
commercial was voiced by H.M. Blackwell, a representative of Queensbury.
Print media advertising strategy
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Advertising in India can easily handle your advertising needs. You may need to
design an ad for your business, looking for placing a matrimonial advertisement or
perhaps you want to publish an advertisement in newspaper for job recruitment
Analysis
It includes the summary of advertisement scenario of insurance industry in the
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soaring mass market available in India based on the survey conducted.
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.
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 surprisingly and contributing in the promotion
of insurance sector.
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(Ranks are in ascending order)
LIC being the giant of Life Insurance in INDIA has grabbed the top slot in
terms of advertisement also. Other private players like ICICI Prudential, HDFC
Std. Life, Birla Sun life and Reliance Life Insurance are trailing behind LIC.
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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.
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
competitive 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 survey.
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Facts & Findings
TAM Media Research, a joint venture between Nielsen Media Research (NMR)/
AC Nielsen and Kantar Media Research (KMR)/IMRB gives fruitful knowledge
to understand media and advertising trend.
In July 2002, TAM took operational control of ADEX service-the pioneer in
Media monitoring in India. TAM inherited a well-oiled monitoring system with a
trend work force. ADEX India represents a cutting edges strategy tool which
helps us to keep an eye on advertising and media trend.
Facts and figures of advertising trend of year 2007-08 and role of Life Insuranceadvertising 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
2) Sartorial division in TV advertising
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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.
4) Channel wise distribution of advertisement in TV.
General Entertainment Channel led with 1/3rd share, followed by News & Music
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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.
Snapshot on Life Insurance advertising on TV in2007
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.
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2) Volume Growth in Life Insurance sector.
Television advertising of Life Insurance grew by 258 per cent in 2007 as
compared to 2004.
3) Private versus Public Insurers on TV during 2007.
Private Insurers lead with 78 percent share of overall advertising of Life
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Insurance sector on TV during 2007.
4) Rank shift of top Life Insurers in 2007 during 2006.
LIC & HDFC Standard Life Insurance Co. Ltd switched their ranks in 2007
compared to 2006. Compared to 2006, Bharti AXA Life Insurance Co & ING
Vysya Life Insurance moved up maximum places to be in the top 10 list of 2007.
5) Top 10 Life Insurance brands on TV.
HDFC Standard Life Children Plan lead with 8 per cent share followed ICICI
Prudential Life Insurance & Bharti AXA Life Insurance with 7 per cent & 6per
cent share, respectively, during 2007.
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Top 10 brands were a mix of five brands of Life Insurance, and three of the
brands belonged to the Pension Plan
6) New brands launched on TV in 2007.
Birla Sun Life Children's Dream was number one Life Insurance brand to be
launched on TV in 2007
7) Genre usage for Life Insurance advertising.
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Snapshot on Life Insurance advertising in print in2007
1) Share of Life Insurance (Life Insurance vs. Other Insurance)
'Life Insurance' & '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.
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3) Share of Private and Public Insurers in Print during 2007
Private Insurers took 55% advertising share of 'Life Insurance' advertising inPrint during2007.
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
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6) New brands launched in Print in 2007
Interestingly, among the top 10 list of new brands, 8 were related to ULIP
except for LIC's Aam Admi Bima Yojana and LIC's Jeevan Amrut.
7) Preference of Genre for advertising of Life Insurance
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Maximum Life Insurance advertising was done on business/Finance/Economic
magazines, followed by news/current affairs and general interest. But the
condition is reversed in case of newspapers. Here 91 percent of the Life
Insurance advertisement is found on General Interest page.
Highlights:
In the Insurance sector, 'Life Insurance' contributed 76% of advertising in
Print during 2007.
'Life Insurance' advertising dropped by 25% in Print during 2007 compared
to 2006.
High advertising in 'Life Insurance' sector during the first quarter of both
the years 2006 and 2007.
Private Insurers took 55% share of overall advertising of 'Life Insurance' in
Print.
LIC and Bajaj Allianz Life Insurance maintained their respective 1st and2nd ranks in 2006 and 2007.
Baja Allianz Life Insurance and LIC were the top 2 brands of 'Life
Insurance' in Print during 2007.
Findings
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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.
Have you Awareness of ICICI Prudential life insurance?
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92
8
Yes
Have you seen advertisements of ICICI Prudential Life Insurance?
92
8
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In which of the following media have you seen these advertisements
the most?
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Can you recall the content/message of the ICICI Prudential advertisements
now?
0% 20% 40% 60% 80%100%
Yes I am unable to recal
Yes I am unable to recall
Yes I am unable to recall
10
60
30
How often do you share interesting advertising with your family or friends?
5
55
55
55
5
5
5
55
55
55
55
55
55
55
Never Reraly Sometimes Often Veryoften
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Understand the message of the advertisement of ICICI Prudential
life insurance?
ICICI Prudential Life insurance advertisement was believable?
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Do you think this ad has influence you to?
If you hear the word Life Insurance what company comes to your mind immediately?
Rank the following life insurance companies as per your brand recall capacity?
%5 %55 %55 %55 %55 %555
None
Suggest the insurance Policy
Recommend the Insurance Policy
Buy the insurance policy
55
11
55
55
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Share of Life Insurance v/s other insurance
Growth of Life Insurance Advertising
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Media strategy of ICICI Prudential Life Insurance Co.
Ltd.
It was time when the marketing team was thinking about an advertising
campaign, almost everyone, including the company's board, pooh-poohed the
idea. At that time people thought Company is wasting money. But ICICI
discarded this "fear" typically used for hawking insurance, choosing instead a
"happy" platform to convey a more positive message.
Even today after it has rolled out so many campaigns, ICICI remains among the
top advertisers: ad spends, as a percentage of new business premium, range
between 0.5 per cent and 0.75 per cent. Lowe (Lintas) has been the creative
advertising agency for ICICI Prudential Life since the beginning.
The TA:
Representing an ideal mix of medium to high net worth individuals: Theconsumers 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
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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:
'We cover you at every step in life (Suraksha Zindagi ke har kadam par). ICICI Pru
was positioned as an enabler of protection relevant to the needs of the life stage
that you are in. Over the last few months, ICICI Prudential has been advertising
in outdoor, TV and press. The company launched a corporate television
campaign - Saat Phere - which took the emotions and thoughts of initial Sindoor
corporate film a few steps further. The film highlights the strength of promises
that a husband makes to his wife, through the depiction of everyday situations,
and then goes on to emphasize that ICICI Prudential will stand by the husband to
help him fulfill all these promises. The TV campaign has also been extended to
outdoor. The company has also undertaken press and internet campaigns to
inform customers about benefits of some of its products, particularly retirement
solutions, through the Chintamani campaign.
Once the corporate image and brand identity were established, and as the
company expanded and its product range grew, the next phase of
communication was to give the consumer a rational and tangible reason to buy -first of all insurance and secondly from ICICI Prudential Life. This was tackled
through product-specific advertising, such as for ICICI Pru Smart Kid, retirement
solutions or Lifetime.
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The Creative execution:
TVC: Building image and creating a differential in the most creative and
compelling manner. The creative execution heightened the emotional connect
with the ICICI Pru brand - Indian; satisfaction of knowing that one's loved ones
are protected. Symbolic representation of the protector of the family through
situations showcasing various life stages and creating endearing imagery
of protection and familial bonding.
Press: Gave the consumer a rational and tangible reason to buy insurance first
and secondly from ICICI Prudential. The product specific advertising focussed
on changing the prevalent perception about insurance and breaking a few
myths: non- affordability, insurance not being good investment option and the
myth that insurance was good only for tax saving.
After the hugely successful Chintamani (retirement) and Saat Phere (corporate)
campaigns, ICICI Prudential Life Insurance also introduced some innovations in
the category, such as: having a tax planner by the name of Chintamani on radio,
who would answer consumer's queries about the role of insurance in financial
planning.
Other Communications:
Other programs included direct mail, PR of communications campaign in press
& TV, website marketing; and database generation through Bancassurance
channels.
Other initiatives included tie-up with the Dabbawalla Organisation in Mumbai
for a direct marketing exercise, to talk to the customer through a non-cluttered
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route, and thereby have a higher impact. The direct mailer was about ICICI
Prudential's retirement solutions and the tax benefits that one can avail of buy
investing in any of these. About 100,000 direct mailers were attached to the
'dabbas', in areas such as Churchgate, Bandra and Andheri where there are
mostly office-goers. ICICI Prudential Life Insurance has also announced a
strategic distribution tie-up with Hariyali Kisaan Bazaar, the rural business arm
of DCM Shriram Consolidated Ltd (DSCL). As a partner, Hariyali Kisaan
Bazaar can now distribute ICICI Prudential's protection, wealth creation,
retirement solutions and health insurance products to customers across the its
growing number of rural business hubs in the country.
In addition to advertising, the company has also initiated several activities to
raise consumer awareness about life insurance and ICICI Prudential. "It includes
seminars - ICICI Prudential regularly holds consumer awareness meets on 'the
need for retirement planning' in different cities such as Pune, Aurangabad,
Coimbatore, Nagpur, Bangalore and Mangalore. These are very well attended
and have contributed significantly towards increasing awareness about the
category and the company. Apart from this, company also entered into alliances
with telecom companies, as well as companies like BPCL and Dominos.
The results of communication efforts:
Being no: 1 in awareness and saliency.
Awareness: ICICI Pru showed a significant jump in awareness between Feb and
Sept 2001. Image: Highest score among all Insurance players including LIC, on
image parameters like safety, modernity, service, good returns etc. Intention to
invest: Next only to LIC as per research (All Source: Research by ORG Marg).
No. of calls and emails: There were 70,000 calls at the call center and 6582
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emails in the year 2001. Today, ICICI Prudential are fairly high on awareness,
among target segment.
Company has a 86% brand recall today. A research survey shows that among
the investing public. About 11% of the investing public knew Prudential ICICI
top of mind. It is a fair indicator of the share that the brand enjoys in the market.
On spontaneous level ICICI prudential are at 30%. ICICI Prudential Life was
awarded the INDY's Award for Excellence in Mass Communication in the
category of Most Creative Advertisement- Television.
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ICICI Prudential Growth Story
ICICI Prudential, a joint venture between ICICI Bank and Prudential UK, has
been around ever since the private sector was allowed to sell life insurance
policies. ICICI Prudential began their operations in 12th December 2000 after
receiving approval from Insurance Regulatory Development Authority (IRDA).
Since then the tribe of life insurers has grown from 12 to 16, but ICICI still leads
the private sector pack. With a portfolio of over 6.5 million policies, India's
biggest private sector life insurer has not merely held on to its share but grown
it; at the end of January 2008, the firm commanded 29 per cent of the share
owned by private sector players. Quite some way below was Bajaj Allianz with
21 per cent, while State Bank of India came in third with 10 per cent.
ICICI Prudential's premium income grew at about 100 per cent between March
2003 and March 2007. Interestingly enough, the insurer started out with the
traditional endowment products and was not the first to introduce the more
popular Unit Linked Insurance Policy (Ulip): the credit for that goes to Birla
Sunlife.
However, in the first full year of operations itself, it started offering Ulip policies
and was selling more policies than anyone else. Today, Birla Sunlife doesn't find
a place in the top five and players such as HDFC Standard Life, which were late
to cotton on to Ulips, may be regretting it.
It wasn't just that ICICI Prudential rolled out Ulips quickly; the company also
made sure the products were priced competitively. Compared with the
competition, ICICI's upfront charges have always been lower.
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With charges across the industry now converging at around 20 per cent of first
year premiums, ICICI has come up with a zero-load product. Another scheme
that has been introduced automatically balances the debt and equity components
of the portfolio every quarter. Apart from this, ICICI Prudential has been quick
off the block with retirement solutions and the first to come up with health
products.
If ICICI Prudential has managed to sign on 6.5 million policy holders, it is
because the company has built up a strong agent network, which brings in 60
per cent of the total premium. Today the insurer has nearly 250,000 agents
working for it, even though it doesn't hand out the best commissions in the
industry.
Bajaj Allianz's network is about 275,000- strong, while the public sector Life
Insurance Corporation boasts over a million agents. ICICI Prudential does not
care about their commission at the lower end compared with peers they
compensate them by ensuring that customer do better volumes.
The insurer is also rolling out offices at a furious pace; by the end of March
2008, ICICI Prudential will have around 1,500 offices from around 1,100
currently, of which nearly 900 will have come up in 2007-08. Bajaj Allianz, too,
has around 1,000 offices as of now. ICICI Prudential targeting of 3,500 branches
in five years.
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The industry believes ICICI Prudential has a big advantage in that it can
leverage the customer base of its parent ICICI Bank. Bajaj Allianz, for instance,
didn't have that advantage. Banc assurance today fetches about 27 per cent of
ICICI's premium; apart from ICICI Bank, the insurer sells through Bank of India,
Federal Bank, South Indian Bank and some co-operative and rural banks.
While ICICI Prudential has done well to stay at the top, the next seven years will
certainly be more difficult than the last seven. Competition is getting keener - in
the past couple of years, Bajaj Allianz is believed to have written more policies
than Prudential. SBI Life has a stronger distribution now that it has signed on
many more agents and newcomers like Reliance (which took over AMP Sanmar)are growing at a fast pace. But the strong growth in the industry has surprised
everyone.
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
Conclusion
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There has been a tectonic shift in advertising the insurance companies. Till 2 or
3 years back a typical Ad will showcase a small happy family enjoying their
life. Then one unfortunate Day the head of the family dies in an accident and the
rest of the family is drawn to rags. The ad ends up saying Insurance can help
them against such calamities. People bought the idea and started buying
insurance. But there was a basic flaw in the ad. It tells the consumers about the
advantages of "having Insurance" but nothing about "buying insurance from a
particular insurance firm". So whoever casting such ad was helping the industry
as a whole but not their specific firm.
If we see the recent ads they are talking about how "SBI Life" can help smoothen
your old- age life or how "ICICI Prudential" can help you in receiving pensions
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.
In concluding part of this project it shows that advertisement is very much
important for any business. A huge amount is paidby 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.
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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.
Recommendation about promotional strategies
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The suggestions have been classified into two categories. Action oriented
suggestions People oriented suggestions
Action oriented suggestions
An intense AIDA model needs to be adopted the AIDA model (Awareness,
Internet, Desire, and Action). Customers are aware of majority of products of
ICICI PRUDENTIAL Life Insurance Co. Ltd.
To create the awareness regarding Product
1. Print & Electronic Media Advertisement should be done (As we can see
intense ad campaign of HDFC Standard Life and Bajaj Allianz.)
2. After the initial promotional campaign the relative advantage of ICICI
PRUDENTIAL Life Insurance Co. Ltd. Over its competitor should be
highlighted.
3. Hoardings at prime areas should be used.
People oriented suggestions
1. Creating offers like lucky draws for the users of Internet.
2. Giving free gifts for the customer.
Special recommendation
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The insurance sector has largely stuck to images of happy families, carefree
couples and cute babies. We have to use a different route to break the clutter,
and humor and endorsement of celebrities is some of the routes available to us."
ICICI Prudential should come in front for development of rural sector, by way
of establishing a school, by digging a well in villages. May be it seems like a
fool's suggestion but it is one of the way to gain trust in rural sector. We can also
use to advertise us by using the way of "HALLA BOL". If we adopt this
technique then I am sure that this will be most creative and cheaper
advertisement all over the world. And by this way ICICI Prudential can againlist their name in top advertiser.