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Brand Awareness of IDBI

Federal Life Insurance

Prepared for

Prepared By:

UTKARSH VERMA PGDM-Marketing

ITM- Business School, Kharghar,Navi Mumbai.

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LETTER OF TRANSMITTAL

M/s Shanthi Yagyanath IDBI Federal Life Insurance Dear Ma’am, As discussed on during the internship, I’m submitting the report titled “Brand Awareness on IDBI Federal Life Insurance Pvt Ltd”. This Report is to bring light on the operation of insurance companies and the awareness of the Brand “IDBI federal Life Insurance Pvt Ltd” and com-paring it with other Insurance Companies. I hope you find this Report satisfactory. Sincerely Yours, UTKARSH VERMA Institute For Technology & Management, Kharghar Navi Mumbai

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ACKNOWLEDGEMENT

I would like to take this opportunity to express a deep sense of grati-tude to my industry mentor M/s Shanthi Yagyanath, IDBI Federal Life Insur-ance for their constant guidance and support. I would also like to thank my coordinator Mr. Gireesh Udaiyar , IDBI Federal Life Insurance for his con-stant support and guidance during the course of the project. I would also like to express our profound gratitude faculty Guide and Mentor Prof. Vasantha Laxami, ITM Business School for her guidance and encouragement during the different phases of the project. .

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Executive Summary

To do the Brand Awareness analysis of IDBI Federal Life In-surance Pvt ltd and comparing it with other life insurance

companies.

Utkarsh Verma

ITM-Institute for Technology & Management,Navi Mumbai

August 25, 2015

In order to develop our management skills & as a part of academic studies

in M.B.A., we have to go through the Industrial Training to develop our

management skills & to increase our knowledge.

Industrial Training plays a very vital role to develop the practical view of

students & also aware them about each & every problems & solutions

which are taken by the company. During the training period, market re-

search is made for to know the most preferred products of IDBI Federal Life

Insurance and reason for that. Also to understand and analyze the Organi-

zation Overview & Brand Awraness in cpmpetitive market, the research is

undertake. We also try to determine the performance of IDBI Federal Life

Insurance Co. Ltd. And try to find out improvement areas by comparison

with other companies.

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Table of Contents:

Sr.No. Contents 1 Letter OF Transmittal

2 Acknowledgement

3 Executive Summary

4 General Overview

5 Industry Background

6 History Of Insurance In INDIA

7 New Developments

8 Government Initiatives

9 Future Journey

10 Need & Purpose of Insurance

11 Fundamental Principals of Life Isurance

12 Company Overview

13 Company Background

14 Product Offering

15 Vision & Values

16 Major Insurance Companies

17 Competitve Strength

18 Marketing Department

19 SWOT Analysis

20 Research & Analysis

21 Data Research

22 Analysis and Interpretation

23 Hypothesis

24 Suggestions

26 Future Plan

27 Conclusion

28 Bibliography

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Industry Overview

Introduction to Insurance Sector

Insurance is as old as civilization. It has been developing from the family from of insurance

to mutual associations, stock exchange securities and again to the state owned organiza-

tion.

“Yogakshema” has been the oldest term of insurance used in the Rigveda‘ for some kind

of insurance. The concept of formal insurance originated in the 12th century in the form of

protection against financial loss to the seafarers involved the foreign trade. Growing eco-

nomic uncertainties caused not only by multiplicity of social, cultural, ethnic, and political

factors but also natural calamities necessitated invention than development of avenues ca-

pable of providing economic security to the bereaved family in the event of loss of bread-

winner. And thus, began life insurance. With the development of social security and welfare

status of the societies, the business of life insurance assumed multidimensional.

Insurance may described as a social device to reduce or eliminate risk of loss to life. Under

the plan of insurance, a large number of people associate themselves by sharing risks at-

tached to individuals. The risks, which can be insure against death, accident and also with

health. Any risk contingent upon these may be insured against at a premium commensu-

rate with the risk involved. Thus, collective bearing of life risk is insurance.In today‘s uncer-

tain and hectic life, every individual is seeking some protection against risk. The solution is

prevailing in the market from last 55 years, but it never been so crucial before a paradigm

shift has been made by private players and this is supported by the figure of only 23% pen-

etration in last 55 years. Now this penetration is going upward as new competitive private

players are coming. There is immense potential in the Indian market for all players as 77%

market is to be tapped.

In the word of John Magee, ―Insurance is a plan by which large number of people associ-

ates themselves and transfer to the shoulders of all, risks attach to individuals.

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Industry Background

The Indian insurance sector is having very bright future. The sector which was of the size US$ 72 billion in 2012 has the potential to grow to US$ 280 billion by 2020. This potential is because of India’s favourable regulatory environment which guarantees stability and fair play. This environment has given rise to an insurance market which encourages foreign in-vestors to tap into the sector’s massive potential. Ever since the Indian government liberalised the insurance sector in 2000 and opened the doors for private participation, the sector has gone from strength to strength.The health of the insurance sector reflects a country’s economy. This sector not only generates long-term funds for infrastructure development, but also increases a country’s risk-taking capacity. India’s economic growth since the turn of the century is viewed as a significant development in the global economy. This view is helped in no small part by a booming insurance industry. Consistent growth in the insurance sector depends on a few factors. Some of them are:

Effective distribution channels – The efficiency and cost of the various distribution strategies used by companies are significant to their success in the insurance busi-ness. This particularly holds true for the retail business.

Focus on overall financial inclusion – As time evolves, so must the approach of the insurance sector in India. The objective of the insurance sector should ideally be to offer a broader range of activities to a wider populace.

Consumer needs and preferences – The growth of India’s insurance industry can be attributed product innovation, dynamic distribution channels, and vibrant publicity and promotional campaigns run by insurance companies. Benefits attached to the products and the manner in which they are delivered (through various marketing tie-ups) have helped bring customers and insurance companies closer to each other and made the latter more relevant.

Health insurance is an up-and-coming segment in this sector. Currently, it caters for 10 per cent of the overall US$ 30 billion healthcare expenditure in India. Consequently, there is plenty of scope for players in this area. The life insurance segment contributes about 4 per cent to India’s gross domestic product (GDP) in terms of total premiums underwritten annu-ally. There are 24 private companies in the segment. The state-owned Life Insurance Cor-poration (LIC) dominates the field, with about 71 per cent of the market share, according to Insurance Regulatory and Development Authority (IRDA).Many of them having joint ventures with foreign companies like IDBI Federal are growing at rapid rate. Out of 27 non-life insurance companies, 4 private sector insurers are registered to underwrite policies exclusively in Health, Personal Accident and Travel insurance segments. They are Star Health and Allied Insurance Company Ltd, Apollo Munich Health Insurance Company Ltd, Max Bupa Health Insurance Company Ltd and Religare Health Insurance Company Ltd. There are two more specialized insurers belonging to public sector, namely, Export Credit Guarantee Corporation of India for Credit Insurance and Agriculture Insurance Company Ltd for Crop Insurance.

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HISTORY OF INSURANCE IN INDIA

The early history of insurance in India can be traced back to the Vedas. The Sanskrit term

'Yogakshem’ (meaning well being), the name of Life Insurance Corporation of India's corpo-

rate headquarters, found in the RigVeda. Some form of 'community insurance' was prac-

ticed by the Aryans around BC. The joint family system prevalent in India was an important

form of social cooperation.

Life insurance in its modern form came to India from England in 1818. The Oriental Life In-

surance Company was the first insurance company to be set up in India to help the widows

of the European community. The insurance companies, which came into existence be-

tween 1818 and 1869, treated Indian lives as subnormal and charged an extra premium of

15 to 20 per cent. The first Indian insurance company, the Bombay Mutual Life Assurance

Society, came into existence in 1870 to cover Indian lives at normal rates. Moreover, in

1870, the British Government enacted for the first time the Insurance Act, 1870. Other com-

panies, such as the Oriental Government Security Life Assurance Company, the Bharat In-

surance Company, and the Empire of India Life Insurance Company Limited, were set up

between 1870 and 1900.

The Swadeshi movement of 1905-07, the non-cooperation movement of 1919, and Civil

Disobedience Movement of 1929 led to an increase in number of insurance companies. In

1912, the first legislation regulating insurance, the Life Insurance Companies Act, 1912,

was promulgated. The growth of life insurance was witnessed during the first two decades

of the twentieth century not only in terms of number of companies but also in terms of num-

ber of policies and sum assured. The Indian Insurance Year Book was published for the

first time in 1914.

The Insurance Act, 1938, the first comprehensive legislation governing both life and non-life

branches of insurance was enacted to provide strict state control over the insurance busi-

ness. This amended insurance act looked into investments, expenditure, and management

of these companies. An office of the Controller of Insurance came into existence. The Con-

troller of Insurance had wide ranging powers, which included directing, cautioning, advising,

prohibiting, inspecting, investigating, searching, seizing, prosecuting, penalizing, authoriz-

ing, registering, amalgamating, and liquidating insurance companies.By the mid-1950s,

there were 154 Indian insurers, 16 foreign insurers, and 75 provident societies carrying on

life insurance business in India. Insurance business flourished and so did scams, irregulari-

ties, and dubious investment practices by scores of companies. As a result, the govern-

ment decided to nationalize the life assurance business in India. The Life Insurance Corpo-

ration of India (LIC) was set up in 1956 to take over 245 life companies. The nationalization

of life insurance was followed by general insurance in 1972. The General Insurance Corpo-

ration of India and its subsidiaries were set up in 1973. Most of the powers of the Controller

of Insurance were taken away and vested in state-owned LIC and GIC for operational con-

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venience. These nationalized companies enjoyed monopoly for decades. They did a com-

mendable job in extending the distribution network and successfully handled a large vol-

ume of business. But with only 20 per cent of the population insured there was a vast po-

tential untapped. Besides, as a sequel to the reform process and to tap the insurance sec-

tor as a source of long-term funds, the government decided to introduce reforms in the in-

surance sector.

The government set up, in,1993, a committee under the chairmanship of R. N. Malhotra,

the former insurance secretary and the RBI governor to evaluate the Indian insurance in-

dustry and recommend its future direction. This committee submitted its report in 1994 and

suggested the re-opening up of the insurance sector to private players. This sector was fi-

nally thrown open to the private sector in 2000. The Insurance Regulatory and Develop-

ment Authority (IRDA) was set up in 2000 as an autonomous insurance regulator. The gov-

ernment has entrusted the IRDA with the responsibility for carrying out the reforms in this

sector.

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New Developments/ Product Launches:

Insurance companies will now have more freedom to invest in sectors such as IT and pharmaceuticals. IRDA has increased the sector specific exposure limit for invest-ments to 20 per cent of the insurer’s total investment, from the previous 15 per cent.

The electronic know-your-customer (e-KYC) services used by the Unique Identifica-tion Authority of India (UIDAI) will be accepted as a valid verification process for insur-ance, according to IRDA. Through e-KYC, insurance companies can conduct elec-tronic identity verification. The agencies can obtain an electronic identity document of the customer which is digitally signed by the UIDAI. This service enables a quicker and more efficient process for the customer as well as the insurance company.

Private player Cognizant Technology Solutions has successfully acquired Val-ueSource, which is a subsidiary of KBC Group, a Belgium-based multi-channel bank insurance organisation. Under the initial five-year agreement, the Indian company will provide a number of services to KBC, including application development and mainte-nance, and software testing.

United India Insurance Co Ltd (UIICL), the second largest general insurance com-pany in India, intends to open 530 new offices domestically in 2013. As of now, UIICL has 1,340 offices in the country, as per their website. In FY 2012–13, the company collected total premiums worth Rs 9,266 crore (US 1.45 billion) and has set a target of Rs 11,000 crore (US$ 1.73 billion) for FY 2013–14.

Government Initiatives

The Government of India has passed the Pension Fund Regulatory and Development Authority (PFRDA) bill that allows foreign investors to hold 26 per cent stake in the insurance sector. The primary objective of the bill is to provide pension cover to a greater percentage of the country’s population. The PFRDA bill would also provide subscribers a wider range of investment choices. The bill will provide better regulation of the sector and provide more confidence to investors, according to Mr Yogesh Agarwal, Chairman, PFRDA.

Aviation insurance is likely to emerge as an important segment in the near future with new players in the market operations and existing players seeking to increase fleet size, according to industry officials. At present, the current market size of aviation in-surance hovers around Rs 500 crore (US$ 78.76 million), a figure that is almost certain to grow as the industry develops further.

In order to enhance financial inclusion in the country and develop bank assurance as a business, IRDA has facilitated banks to sell insurance policies. Application for the licence required to act an insurance broker can only be obtained after prior approval from the Reserve Bank of India (RBI). Banks would be required to apply under the direct broker category. The licence will be valid for three years.

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Future Journey: The insurance business in India is projected to reach Rs 4 trillion (US$ 63.01 billion) in FY 2013–14, according to Mr TS Vijayana, Chairman, IRDA. Total premiums collected by the general and the life insurance industry in FY 2012–2013 amounted to Rs3.75 trillion (US$ 59.07 billion). The chairman believes that insurance penetration in India has the potential to rise to 5–6 per cent from the current 3.86 percent. Life Insurance Council, the industry body of life insurers in the country, has projected a compounded annual growth rate (CAGR) of 12–15 per cent over the next five years for the segment. India’s insurable population is expected to grow to 750 million by 2020, with life expectancy projected to reach 74 years around the same period. The council believes that this favourable Indian demography would result in more people seeking out life insurance. Also, the council predicts life insurance penetration – percentage of insurance premium to GDP – to reach 5 per cent by 2020 from its current 3.2 per cent. Confederation of Indian Industry (CII) projects the growth rate for India’s insurance industry in FY 2013–14 to be around 5 per cent. It also anticipates 60 per cent of non-life insurance companies to record an average growth of more than 10 per cent. The raising of the foreign direct investment (FDI) limit from 26 per cent to 49 per cent in the sector is viewed as a key element to promote the insurance industry in India. India was ranked 10th among 147 countries in the life insurance business, with a share of 2.03 per cent, in FY 13. The country was ranked 19th among 147 countries in the non-life premium income, with a share of 0.66 per cent, in FY 13. The life insurance premium market expanded at a compound annual growth rate (CAGR) of 16.6 per cent, from US$ 11.5 billion in FY 03 to US$ 53.3 billion in FY 13. The non-life insur-ance premium market rose at a CAGR of 15.4 per cent, from US$ 3.1 billion in FY 03 to US$ 13.1 billion in FY 13. The share of the private sector has been growing over the years, from around 2 per cent in FY 03 to 27 per cent in FY 13. India’s robust economy is expected to sustain the growth insurance premiums written. Higher personal disposable incomes would result in higher household savings that can be channeled into different financial savings instruments like insurance and pension policies. Household savings are expected to grow to US$ 540 billion by 2015 from US$ 89 billion in 2000. The Insurance Regulatory and Development Authority (IRDA) has recently allowed life insurance companies that have completed 10 years of operations to raise capital through initial public offerings (IPOs). Insurance products are also covered under the exempt, ex-empt, exempt (EEE) method of taxation, which translates to an effective tax benefit of ap-proximately 30 per cent on select investments. The Government of India has extended Rashtriya Swasthya Bima Yojana (RSBY) to cover unorganised sector workers in hazardous mining and associated industries.

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PURPOSE & NEED OF INSURANCE

Assets are unsecured, because they are likely to be destroyed or made nonfunc-tional before the expected life time, through accidental occurrences that are called perils.

Fire, floods, breakdowns, lightning, earthquakes, etc, are perils. If such perils can cause damage to the asset, we say that the asset is exposed to

that risk. Perils are the events. Risks are the consequential losses or damages. The risk only means that there is a possibility of loss or damage. The damage may

or may not happen. There has to be an uncertainty about the risk. The word 'possibility' implies uncer-

tainty. Insurance is relevant only if there are uncertainties. In the case of a human being, death is certain, but the time of death is uncertain.

The person is insured, because of the uncertainty about the time of his death. In the case of a person who is terminally ill. The time of death is not uncertain,

though not exactly known. It would be 'soon'. He cannot be insured.

The risk can sometimes be avoided, through better safety and damage control measures.

Insurance only tries to reduce the impact of the risk on the owner of the asset.

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FUNDAMENTAL PRINCIPLES OF LIFE-INSURANCE

Basic principles of insurance:

Principle of 'uberrima fides' or principle of utmost good faith.

Principle of indemnity.

Doctrine of subrogation.

Principle of causaproximo.

Principle of insurable interest.

Principle of utmost good faith It means 'maximum truth'. All material information re-

garding the subject matter of insurance should be disclosed by both the parties—the in-

surer and the insured. This duty of full disclosure rests more heavily on the insured than

the insurer. The insurer has a right to avoid the contract if the insured fails to make the

full disclosure. In case of misrepresentation—innocent or fraudulent, the contract be-

comes voidable if the representation is substantially false and it is concerned with facts

which are material to the risk. The contract becomes voidable on the grounds of non-

disclosure when a fact is known to one party and it is not known to the other and moreo-

ver, is such that may influence the underwriter's decision if disclosed.

Principle of indemnity This means that if the insured suffers a loss against which the

policy has been made, he shall be fully indemnified only to the extent of loss. In other

words, the insured is not entitled to make a profit on his loss.

Doctrine of subrogation This means the insurer has the right to stand in the place of

the insuredafter settlement of claims in so far as the insured's right of recovery from an

alternative source is involved. The right may be exercised by the insurer before the set-

tlement of the claim. In other words, the insurer is entitled to recover from a negligent

third party any loss payments made to the insured. The purposes of subrogation are to

hold the negligent person responsible for the loss and prevent the insured from collect-

ing twice for the same loss.

Principle of causaproximo The cause of loss must be direct and an insured one in or-

der toclaim for compensation.

Principle of insurable interest The assured must have insurable interest in the life or

property insured. Insurable interest is that interest which considerably alters the position

of the assured in the event of loss taking place and if the event does not take place, he

remains in the same old position. One who has to lose as a result of loss may be said to

have insurable interest in the life or property insured. If this principle is absent, the insur-

ance contract degenerates into a wagering contract. It is taken as given that an individ-

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ual has insurable interest in his/her own life or property. Cases where no proof of insur-

able interest is required are that of a husband's interest in his wife's life and wife's inter-

est in her husband's life. In cases of business and family relationships, proof of insura-

ble interest is required

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Company Overview

Introduction to IDBI Federal Life Insurance

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In the latest campaign for ‘Lifesurance Whole Life’ plan by IDBI Federal Life Insurance, the

brand has taken a humorous approach to explain the different roles the whole life plan may

play as part of the consumers’ overall financial plan. Taking inspiration from the brand’s prom-

ise ‘Befikar, Umar Bhar’, the campaign is powered by an amusing TVC.

Created by Ogilvy & Mather and produced by Corcoise films, the minute-long ad film stars a

35-year-old Mukesh seeking financial advice from his future self.

It starts with Mukesh talking to a IDBI Federal representative, while seated beside two other

old versions of Mukesh. Each Mukesh is at a different life stage with a different dilemma about

his future and a distinct need, and each has a question. The representative tries to answer all

their queries while explaining how the policy will take care of Mukesh and his family throughout

his entire life. Laden with humour, the dialogues make for an interesting watch.

A Youtube Still from the New ad Campaign done by IDBI Federal Pvt Ltd. Has over 350k+ views.

But the challenge was to build awareness on digital. IDBI Life lacked a presence on social me-

dia, this however did not stop the insurance brand from leveraging the medium to build aware-

ness for its whole life plan. On the digital front, the campaign explored several ways to reach

out to the new age audience, in association with digital agency Social Kinnect.

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The campaign took a storytelling and digital content marketing approach using the following

ways:

Listicle based Landing Page

The new age consumer wants quick information, not loads of text and huge amount of tech-

nical information. So the agency decided to revamp their landing page to appeal to the latest

form of content consumption, to be contextual and relevant to the new age audience.

The landing page was revamped from a product based informational content to aspirational,

listicle based, mobile responsive content that consumers will relate to and hopefully result in

better conversion, considering landing pages increase conversions and have a better conver-

sion rate as opposed to a static web page.

Blogger Outreach

Additionally, the brand launched a blogger contest that invited bloggers to share ‘5 Things on

their Bucket List’ which they’d achieve if they would have no constraints on the money front.

Participants need to provide a link back to the landing page and embed the YouTube video on

to their blogs, thus helping drive traffic to the landing page and building conversations around

the idea of living carefree for whole life – #BefikarUmarBhar.

Scoopwhoop

As listicles are one of the key aspects of user content consumption today, a storytelling list

was created in partnership with ScoopWhoop, one of India’s leading listicle site.

The story titled “10 things you should do now so you won’t regret later” was based on the

cue from the YouTube video where the older self advises his confused 35 year old younger

self to help him make a sound financial decision.

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Emailers

The campaign has also included emailers specific to the story the video speaks of. One such

emailer is based on the similar concept with a letter from the future older self to the younger

self giving advice on what he should do in order to live life the way he wants.

Review

The Campaign was highly appreciated by the people falling in the age group 35-40, the com-

mercial ad as well as hoardings on Public Streets grabbed people attention in thinking of in-

vesting into brighter future through various insurance plans. The objective of the campaign was

to effectively reach out to the brand's core target audience - males, 25-44 years, SEC A and B

- across 100 locations across India. This included 350+ media units with over 200+ unique art-

work adaptations across markets.

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About IDBI Federal Life Insurance

IDBI Federal Life Insurance is one of India’s growing life insurance companies and offers a di-

verse range of wealth management, protection and retirement solutions to Individuals and Cor-

porate Customers.

IDBI Federal Life Insurance Co Ltd is a joint-venture of IDBI Bank, India’s premier develop-

ment and commercial bank, Federal Bank, one of India’s leading private sector banks and

Ageas, a multinational insurance giant based out of Europe.

Having commenced operations in 2008, IDBI Federal was able to achieve breakeven within

just 5 years; the Company’s passion for innovation and growth helped it achieve this feat.

Through a nationwide network of 2, 964 branches of IDBI Bank and Federal Bank, and a size-

able network of advisors and partners, IDBI Federal Life Insurance has achieved presence

across the length and breadth of the country. As on March 31, 2015, the company has issued

nearly 7.88 lakh policies with a sum assured of over Rs. 41,856 crore. IDBI Federal Life Insur-

ance has total assets under management of 4,087 crore and a robust capital base of over 800

crores, as on March 31, 2015.

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Company Background:

IDBI Federal Life Insurance is a joint venture between three major financial organizations- I. IDBI bank or the Industrial Development Bank of India, which is the tenth largest development bank in the world in terms of reach. IDBI Bank has been instrumental not only in the industrial development of the country but also has been instrumental in sponsoring the development of the key financial institutes of India- National Stock Exchange of India Limited (NSE) and National Securities Depository Limited, Stock Holding Corporation of India Limited (SHCIL) and Credit Analysis and Research Ltd. (CARE). Website- www.idbibank.com II. Federal Bank, which is a major Indian Commercial Bank in the private sector. Website- www.federalbank.co.in III. Ageas, which was formerly known as Fortis. It is an international insurance group with heritage spanning over 180 years and is ranked among the top 20 insurance companies in Europe. These three financial giants came together in the form of a joint venture in March 2008 to form the IDBI Federal Life Insurance Corporation Ltd. In this venture IDBI Bank owns 48% equity while Federal Bank and Ageas own 26% equity each Headquartered in Mum-bai, the organisation is currently headed by Mr. RM Malla, Chairman and Mr. G.V. Nageswara Rao, MD and CEO. Through continuous process of innovation in product and service delivery IDBI Federal aims to deliver world class wealth management, protection and retirement solutions that provide value and convenience to the Indian consumers. The company offers its service through its vast net-works of branches of its partner banks, IDBI Bank and Federal Bank as well its own network of vast and ever growing financial advisors and insurance agents. Website- www.ageas.com

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Product Offering:

IDBI Federal Life Insurance offers many investment avenues. But as far as this project is con-cerned I am considering three products

I. Lifesurance:

IDBI Federal Lifesurance® Savings Insurance Plan (UIN:135N029V01) is a fixed term non-linked participating plan that provides you the twin benefits of long-term savings and life cover. With Lifesurance Savings, your small savings will help you realise the big dreams that you have for yourself and your family. This plan also offers you the benefit of life cover that will provide financial security to your family in your absence.

It is a fixed term participating endowment plan

It gives the insurer the option of choosing premium payment term and policy

term. The minimum premium to be paid in the monthly mode is 2500 INR and in the yearly mode is 12,000 INR and n limit on the maximum premium.

The insurer will receive the guaranteed maturity sum assured on maturity.

Surrender value is available at the end of 2 years provided the premiums for the 2 years

have been paid.

The insurer will receive guaranteed additions in the first five years of the policy and revi-

sionary bonuses from the sixth year onwards. The amounts of bonus added will depend on the performance of the participating policy holder’s life fund and will vary from year to year.

The cover remains in full force during the grace period.

The insurer will receive tax benefits under Sections 80C and 10 (10 D).

Age at entry (last birthday)

Min 18 years

Max 55 years

Age at maturity (last birthday) 75 years

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Policy terms and premium payment terms available

Policy term(s) Premium payment term(s) available

10 years Only 5 years premium payment term is allowed

15 , 20, 25 years Min: 5 years Max: Equal to policy term

emium payment frequency Yearly, half yearly, quarterly and monthly

Premium Min Yearly Rs. 10,000, Half Yearly Rs. 5,000, Quarterly Rs. 2,500 and Monthly - Rs. 1,000

Max No limit (subject to underwriting

Maturity sum In-sured

Min Depends on age, premium payment and policy term

Max No limit (subject to underwriting)

II. Childsurance:

IDBI Federal Childsurance ® Savings Protection Plan (UIN: 135N032V01) is a non-linked participating endowment plan that ensures your child’s future financial needs are fulfilled. Childsurance® Savings, is designed to give you guaranteed annual payouts and aid the important milestones in your child’s life. What’s more, in the unfortunate event of you not being around, the policy will continue exactly as you had planned it, without any further premiums being paid. .In other words, this plan ensures that your child gets to live his/her dream exactly as you have planned, whether or not you are around.

In this case the insured person is the parent or the guardian and the child is covered as a nominee. The age limit of the child ranges from 1 month to 17 years.

Childsurance provides equal payouts either at the last 3 years or last 5 years of the policy, depending on the plan chosen.

Right from the 1st year the insurer is entitled to receive revisionary bonus. Along with that terminal and interim bonus will also be paid at the time of maturity.

In case of the parent’s unfortunate death, the policy will still exist; the future premiums will be waived off and the child will continue to be covered.

Age at entry - Insured Person (Parent) Mini-mum

18 years

Max-i-mum

Regular payment option: 40 years Limited payment option: 50 years

Age at entry - Nominee (Child) Greater than one month and less than 18 years of age

Maturity age (Insured Person) Mini-mum

28 years

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Max-imum

Regular payment option: 65 Years Limited payment option: 75 years

Policy term Mini-mum

10 years

Max-i-mum

25 years

Premium payment term Regular payment option: Equal to policy term Limited payment option: 5 years less than the policy term

Premium payment frequency Yearly, and monthly by ECS, standing instructions or direct debit only

remium

(exclusive of service tax and education cess)

Mini-mum

Yearly: Rs.10,000, Monthly: Rs.1,000 Loading factor of 0.09 is applicable for monthly premium payment frequency

Max-i-mum

No limit (subject to underwriting)

Maturity Sum Assured Mini-mum

Subject to above minimum premium

Max-i-mum

No limit, subject to underwriting

III. Incomesurance

IDBI Federal Incomesurance™ Guaranteed Money Back Insurance Plan (UIN No. 135N031V01) is a non-linked non-participating money back plan which gives you guar-anteed* returns on your investment, so that you stop worrying about the future. With In-comesurance, you can guarantee a secure future for your family even when you are not around.

Pay premium only for the first five years

Protect your family with life cover

Get 2 tax benefits under 80C and 10(10D)

Age at entry of life insured (last birthday) Min 18 years

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Max 55

Age at maturity of the life insured (last birth-day)

Max 65 years

Death sum assured Fixed 10 times of Annual premium

Premium Min Rs.20,000

Max Not applicable

Premium payment period Fixed 5 years

Policy term Fixed 10 years

Survival benefit Guaranteed annual payouts are paid at the end of every year from the 6th to the 10th policy year

IV. Loansurance:

IDBI Federal Loansurance® Group Insurance Plan, is a group credit potec-

tion plan that helps protect your borrower’s assets and savings and en-

sures that their debt does not become a burden on their family in their ab-

srence.

V. Microsurance: The IDBI Federal Group Microsurance Plan provides affordable life insurance cover to

groups. The plan is extremely useful to Micro Finance Institutions, self Help Groups and

NGO

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1 VISION AND VALUES

Maintaining integrity through our values

Our Vision

To be the leading provider of wealth management, protection and retirement solutions.

Increase customer value-

IDBI Federal Life Insurance has gone to the heart of its customer‘s requirement and develop-

ment products which are unique and serve the customer need perfectly. We built relationship

of mutual trust and benefit to serve the Indian customer. At IDBI Federal Life Insurance the

customer always come first.

Cohesive work environment-

We form long term partnership with our employee by offering them invigorating work experi-

ence. We do not only demand loyalty, sincerity and value but also give it back in equal

measures. IDBI Federal Life Insurance will like to offer its employees space to grow, innovate

and build a long-term career.

Work with honor-

IDBI Federal Life Insurance delivers everyday services in the marketplace with the high sense

of duty and commitment. Our employees strive to build the long-term value for all those come

in contact with Kodak Life Insurance. Our consumers, distributors, employee, shareholders

and the nation have our commitment that we will uphold the values of trust, integrity and a

sense of Honor in every thought, act and deed in order to positively contribute to individual, so-

ciety and nation growth.

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Our Mission

To continually strive to enhance customer experience through innovative product offer-ings, dedicated relationship management and superior service delivery while striving to interact with our customers in the most convenient and cost effective manner.

To be transparent in the way we deal with our customers and to act with integrity.

To invest in and build quality human capital in order to achieve our mission.

Our Values

Transparency: Crystal Clear communication to our partners and stakeholders

Value to Customers: A product and service offering in which customers perceive value

Rock Solid and Delivery on Promise: This translates into being financially strong, opera-

tionally robust and having clarity in claims

Customer-friendly: Advice and support in working with customers and partners

Profit to Stakeholders: Balance the interests of customers, partners, employees, share-

holders and the community at large.

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Major Insurance Players

Licenses have been issued for the following companies-

ICICI Prudential Life Insurance Limited

ICICI Prudential Life Insurance Company Limited

HDFC Standard Life Insurance Company Limited

Birla Sun Life Insurance Company Limited

TATA AIG Life Insurance Company Limited

Max New York Life Insurance Company Limited

SBI – Cardiff Life Insurance Company Limited

EXIDE Life Insurance Company Limited

Bajaj Allianz Life Insurance Company Limited

MetLife Life Insurance Company Limited

Aviva Life Insurance Company Limited

AMP Sanmar Life Insurance Company Limited

Sahara India Life Insurance Limited

Sri Ram Life Insurance Limited

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IDBI Federal Life Insurance

Competitive Strengths:

IDBI Federal life insurance is a joint venture between IDBI Federal bank Ltd. along

with its affiliates and old mutual plc. IDBI Federal mutual life insurance is one of

the fastest growing insurance companies in India and has shown remarkable

growth since its inception in 2001. IDBI Federal believe in offering its customers a

lifetime of value.

A commitment that has made it a leading financial services group with employing

around 10,800 people in its various businesses and has a distribution network of

branches, franchises, representative offices across 300 cities and town in India

and offices in New- York, London, Dubai, Mauritius and Singapore. The group ser-

vices around 2.6 million customer accounts.

Financial Acumen:

Holds a stable and diversified portfolio and has received some of the highest rat-

ings in financial strength from industry‘s independent rating agencies.

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Disciplined Fund Management:

Years of experience in asset management, and a strong track record in managing

funds-backed by the claimed expertise of old plc.

Innovativeness:

Known for being an innovator in providing world class pragmatic financial solu-

tions, with a constant focus on customization and flexibility.

Unrelenting Customer Focus:

A highly committed sales force with customer satisfaction as the key driving force-

a major differentiator.

Transparency in services:

Daily declaration of fund performance, regular performance benchmarking, well

regulated asset management and monthly newsletters on market update.

Marketing Department

First I would like to discuss what is marketing?

Marketing―Marketing is an organizational function and a set of processes for

creating, communicating, and delivering value to customers and for managing

customer relationships in ways that benefit the organization and its stakeholders.

Introduction:

Marketing department is the heart of any organization. Every business to run smoothly there is marketing department. In this competitive market there is one department that derived money from the market and make long term relation-ship with customer.

Communication

Goods and services

Market (a collection of

Industry

Money buyer)

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Information

As we see in above chart that in any industry the how marketing activity is run,

First industry communicating with the market about product and services.

Second, they sales goods and services in the market.

In third, they get return on goods and services in the form of money.

Forth, they collect information means feedback try to improve services.

It is continuous process. It never ends, it start with new product in the market.

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Marketing Mix

Product Mix:

It mainly includes: Product variety, Quality, Design, Brand Name, Services, and Re-

turns.

In IDBI Federal Life Insurance in these strategy they decides different plan of insurance.

They design the plan of insurance by which they get more customer. They choose

proper brand name to attract more customer. IDBI Federal Life Insurance Company

Plan every new Insurance Plan with production strategy.

Pricing Mix:

It mainly Includes: List Price, Discount, Allowance, Payment Period, and Credit Re-

turns.

In this stage the company decide list premium price of insurance. It is planning of all

pricing Strategy. In which they decides premium for insurance, their premium period,

credit returns on insurance etc.

Promotion Mix:

It mainly includes: Sales Promotions, Advertising, Public Relations, Direct Marketing.

This strategy is very useful in market service industry very sales promotion is under

taken place for maximum market share. They give advertising in different media to

make it effective. They use media like newspaper, television, outdoor banners and etc.

In this strategy to acquire sales force they have do many other activity for the purpose

of higher sales of insurance in the market. They maintain public relation with this differ-

ent activity so that it increase awareness of people towards brand

Place Mix:

It mainly includes: Channel, Locations, and Coverage.

As we know that if the thing is done on right time and right place it is benefited to the

company. So choosing right place is very beneficial for company. For the purpose of

brand awareness and brand Recognition Company choose it with very carefully. For ad-

vertising purpose they decide right location where the big public mass.

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From this perspective, the scope of marketing management is quite broad. The implica-

tion of any activity and resource the firm acquire customer and manage the company’s

relationship with them is within the purview of marketing management.

Human Resource Department

INTRODUCTION

The internal department structure of personnel department varies widely from one com-

pany to another; the personnel department has to function as a medium to establish

healthy relationship between the management and the employee. Organization is

formed by the factor of production namely land, labours, money etc. Middle level man-

agement and labourers is the living factor with the sense of feeling.

“Personnel management is the planning, organizing, direction, controlling of the pro-

curement, development, compensation, integration and malignance of people of the

purpose of contribution to organization, individual and social goal.”

- EDWARD FLIPPO

Now a day, proper direction to achieve the goal is carried out by a separate department

that is personnel,” Personnel management is the planning, organizing, directing and

controlling of procurement development, compensation, integration and maintenance of

people for the purpose to contribution, to organization, individual and social goals.” Per-

sonnel department is concerned with training and development of employees and

providing them proper wage and salary.

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SELECTION & RECRUITMENT-

SELECTION :: -

Selection means the procedure of selection in terms of best person and all with required

qualification. This process is negative by nature because it selects only suitable persons

and rejects the other applied.

According to Yoder, “the hiring process is of one or many ‘go, no-go’ gauges. Candi-

dates are screened by the application of these tools. Qualified applications go on to the

net hurdle, while the unqualified are eliminated.”

“IDBI Federal Life Insurance Co.LTD.” gives advertisement in the magazines and re-

ceives applications. From that application interview is taken, and then the person is se-

lected in interview. Finally salary is decided as per the qualification and ability for job.

SELECTION PROCESS-

Selection is a process by which the qualified personnel can be chosen from the applica-

tion selection is process in the hand of management to get qualify and disqualify appli-

cant by various methods. This process is as follow :: -

Interviews

Primary selection

Final selection

Placement

RECRUITMENT-

“Recruitment is the process of identifying various sources of recruitment persons in the

organization. It is the process of searching and encouraging them to apply for jobs in or-

ganization”. Recruitment has been regarded as the important function of this depart-

ment.

Recruitment has been regarded as the most important function of personnel administra-

tion, because unless right the type of people are hired, even the best plans, organiza-

tion charts and control system would not do much good. According to Flippo,” it is a pro-

cess of searching for prospective employees and stimulating and encouraging them to

apply for jobs in an organization. It is often termed positive in that it stimulates people to

apply for jobs to increase the ‘hiring ratio’ i.e., the number of applicants for a job. Selec-

tion, on the other hand tends to be negative because it rejects a good member of those

who apply, leaving only the best to be hired.”

“IDBI Federal Life Insurance Co.LTD.” uses both internal and external sources of re-

cruitment. When any employee having qualification, ability and experience works in the

unit at lower level and if the place is vacant, the place is filled by promotion.

35 | P a g e

PERFORMANCE APPRAISAL-

For personnel management a performance appraisal is an important tool. Performance

appraisal means person’s performance in the company.

Once the employee has been selected trained and motivated, he is then appraised for

his performance. Performance appraisal is the step where the management finds out

how effective it has been at hiring and placing employee. A performance appraisal con-

sists of evaluating an employee’s performance of a job in terms of a job in terms of its

recruitment.

“IDBI Federal Life Insurance Co.Ltd.” consider its employees as it’s most valuable and

therefore it believes in perfect and accurate performance appraisal system. They be-

lieve that employees’ efficiency, productivity and great performance is a ladder to suc-

cess.IDBI Federal Life Insurance LTD” has an efficient performance appraisal system

for evaluating their employees’ performance.

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SWOT Analysis

Swot analysis of Idbi federal Strengths

Wide range of products to suit the need of each type of customer

Sufficient cash base and stable foreign shareholders.

Can learn from the mistakes of the first 17 life insurance companies of India.

Uses a unique method of expansion, in which its next branch in a region is

opened only when, the earlier one reaches its break-even point.

Weakness

Late entrant in the market.

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Lack of knowledge about the company and the products of the company. Need

brand awareness and promotional activities

Opportunities

Abilities to tap the growing internet space for marketing and selling the products.

Prospective easing up of the FDI in insurance industry to 49% from the current

26%.

Threats

Presence of highly competitive market. Presence of established players such as

LIC, SBI life, ICICI prudential etc.

Increasing expenses and lowering margins due to cut throat competition are hit-

ting hart companies with low market share.

The insurance companies are being over regulated by IRDA. It is hampering the

companies.

Government regulations on issues like health care, mold and terrorism can

quickly change the direction of insurance.

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Reserch Topic

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Overview and Brand Awareness in competitive Market

About Brand?

A Brand is distinguishing name or symbol, sign, term, design, intended to identify a

product or services of one seller or group of seller and to differentiate them from those

of competitors. A protected Brand Name is called proprietary name.

―At heart of a successful brand is a great product or service, backed by careful plan-

ning, a great deal of long-term commitment, and creatively designed and executed mar-

keting. A strong brand commands intense consumer loyalty.

Concept:

Brand is the image of the product in the market. Some people distinguish the psycho-

logical aspect of a brand from the experiential aspect. The experiential aspect consist of

the sum of all point of contact with the brand and is known as the Brand Experience.

The psychological aspect, sometime referred to as Brand Image, is a symbolic construct

created within the mind of people and consist of all the information and expectation as-

sociated with a product or service.

People engaged in branding seek to develop or align the expectation behind the brand

experience, creating the impression that a brand associated with service has certain

qualities or characteristics that makes it special or unique. So the brand is the valuable

element for any company or organization, and brand owner is able to offer in the mar-

ketplace. The art of creating and maintaining a brand is called brand management.

Consumer may evaluate the identical product differently depending on how it is

branded. Brands signals a certain level of quality so that satisfied buyers can easily

choose the product again. Brand loyalty provides predictability and security of demand

for the firm, and it creates barriers to entry that make it difficult for other firms to enter

the market. Brand Awareness includes perception, opinion, image, recognition of brand.

A brand which is widely known in the marketplace acquires brand recognition. When

brand recognition build up to a point where a brand enjoys a critical mass of positive

sentiment in the marketplace, it is said to have achieved brand franchise. One goal in

brand recognition is the identification of a brand without the name of the company pre-

sent. For example, Disney has been successful at branding with their particulars script

40 | P a g e

font (originally created for Walt Disney‘s ―signature‖ logo), which it used in the logo for

go.com.

Brand Element Choice Criteria:

There are six main criteria for choosing brand element.

(1) Memorable

(2) Meaningful

(3) Likable

(4) Transferable

(5) Adaptable

(6) Protectable

Among above six-element first three element are ―Brand building‖, and latter

three are ―protectable‖, that deal with how to leverage and preserve equity in a

brand element in face of opportunity and constraints.

Measuring Brand Equity:

The power of a brand resides in the mind of consumers and the way it changes their response to marketing, there are two basic approaches to measuring brand equity.

(1)Brand Audit (2)Brand-tracking

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Brand Audit :As our topic is brand awareness, it is necessaries to measure brand

equity. It is basically a consumer-focused series of procedure to assess the health of

brand, uncover its sources of brand equity and suggest ways to improve and lever-

ages its equity.

Brand-Tracking studies:

Brand-tracking studies collect quantitative data from consumer on a routine basis

over time to provide marketer with consistent, baseline information about hold their

and marketing programs are performing on key dimensions.

Brand equity should be a top priority for any organization, but it is also important to

know customer equity. One definition of Consumer equity is “the sum oflifetime

values of all customer”.

Customer Value = Total Benefit

Total Cost

When any brand is launched, the firm has to think about consumer value, means

think like customer that how the benefit they perceive and how they spend means

total cost to get total benefit.

Brand has long term relationship with the customer, so it is necessary to provide product and services that creates impression in the mind of customer.

42 | P a g e

About Brand Awareness

Brand awareness is the potential capacity that a consumer has of rec-

ognizing or recalling the name of the brand as an offer of a certain cate-

gory of product.

Thus, brand awareness is an exercise of identification of the brand name

under

different conditions and, therefore, the probability of a brand name coming to

the mind of the consumer and the facility with which this happens .

Brand being present in the memory of the consumer and is mentioned by the

latter without the need of any external stimulus; and (2) the recall attended

that the brand name is knowledge as an offer of a category of products

amongst a set of suggested brands.

Brand awareness is an instrument of predominant selection amongst con-

sumers without experience of use of the product and stops experimentation

with new products and brand.

Finally, brand awareness favors the creation of associations brought about by the

product, which are in the origin of the creation of brand image (Keller, 1993). This

equally facilitates the forming of the arrival of new information that serves to guaran-

tee the knowledge and to support and assure the image perceived by the consumer

.

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Reserch Methodology

Literature Review of Brand Awareness

Asker, “--------------------“,Journal name, Issue, vol,1996 has stated that,

Brand awareness is an important and undervalued part of brand equity.

Awareness can influence perceptions and attitudes and it drives brand choice

and loyalty. It reflects the salience of the brand in the customer‘s mind. (re-

ferred to in Reza Motormen and LauncherShahrokhi, 1998). It is a part for the

communications process. It has a key role in the consumer decision making

process and in determining the consideration. Consumers are aware of a

large number of brands when making buying decisions, and brands with

higher awareness levels are more likely to be part of the final buying decision.

Brand awareness is also said to influence the brand‘s perceived quality, as

found in a consumer choice.

The researcher finds that the level of awareness in form of brand recognition

is with quite high for potential customers, while a higher percentage recalls

BMW from their memory as a luxury brand rather than a performance brand.

These results indicate an overall high level of awareness for the brand. Fur-

thermore, results showed a desire for owning a BMW. However, distinguished

by gender, female potential customers show a higher desire for competitive

brands for both, as a luxury as well as a performance brand, while male po-

tential customers show surprisingly a higher desire for competitive brands

when it comes to performance of the cars.

Frequency of advertisement exposure is an important determinant of advertis-

ing effectiveness in traditional mass communication such as broadcast and

print because most media decisions are based on advertising frequency One

way of measuring advertising effectiveness is through brand awareness,

which is an essential initial step for a communication process to begin; with-

out brand awareness, no other communication effects can occur.That is, at

the brand level, brand attitude cannot be formed and purchase intention can-

not be made unless consumers are aware of the brand. Therefore, brand

awareness is deemed an essential communication objective for every adver-

tising campaign. One way to measure brand awareness is brand recall.

In addition to advertising frequency, banner advertisement (BA) appeal and

BA type are important moderators in advertising communication. Advertising

appeal is important because emotional and rational appeals elicit different

44 | P a g e

consumer responses. Also, different types of BAs (static or pop-up) also gen-

erate different consumer responses Therefore, the problem driving this re-

search is to investigate the impact of advertising frequency on consumers‘

brand recall moderated by BA type and BA .

Logos, due to their picture-like form, are often easily recognized, and as a re-

sult, can be a valuable way to identify a product (Keller, 2003). It is believed

that logo awareness occurs on two levels. First, a consumer must remember

seeing the logo (recognition) and secondly, the logo must remind consumers

of the brand or company name (recall) (Henderson and Cote, 1998). The first

level of awareness, recognition, depends primarily on design, ―given equal

exposures, a more memorable design will be recognized moreeasily than a

less recognizable one” (Henderson and Cote, 1998 p. 15). Facilitatingrecall,

therefore, begins with the selection of a design that is easily recognized.

Kevin Lane Keller (1998, p.45) approaches brand equity from a customer

based perspective defining it as “the differential effect of bran knowledge on

consumer response to the marketing of the brand”

Other authors (Laurent, Kapferer and Roussel, 1995) suggest three classical

measures of brand awareness in a given product category: spontaneous (un-

aided) awareness consumers are asked, without any prompting, to name the

brands they know in the product category – in this case the unaided aware-

ness of a brandis the percentage of interviewees indicating they know that

brand), top of mind awareness (using the same question, the percentage of

interviewees who name the brand first is considered) and, respectively, aided

awareness (brand names are presented to interviewees – in this case the

aided awareness of a brand is the percentage of interviewees who indicate

they know that brand).

Brand awareness refers to the strength of a brand’s presence in a consumer’s

mind (Aaker, 1991). Brand awareness is a necessary condition for brand eq-

uity, without which consumers cannot have brand associations, perceptions of

quality and brand loyalty (Pappu and Quester, 2006). Brand awareness com-

prises brand recall and brand recognition whereas brand associations refer to

the various meanings surrounding a brand (Keller, 1993).

Brand recall is considered the next level of brand awareness. It relies on un-

aidedrecall (Holden, 1993; Laurent et al., 1995; Mariotti, 1999) and relates to

the consumer’s ability to retrieve the brand from memory when provided with

a relevant cue (Ross and Harradine, 2004). As the consumer is not aided by

45 | P a g e

having the name provided, brand recall implies that the brand holds a

stronger brand position in his or her mind. The first-named brand in an un-

aided recall thus represents the highest level of brand awareness (Laurent et

al., 1995; Mariotti, 1999).

FEW HIGHLY RECOGNISED INSURANCE COMPANY

LOGOS

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The Problem

INTRODUCTION

Marketing research is the tool in the hands of the marketer either to find out the solution

of any managerial or market related problem or to find the new opportunity and threats

that are prevailing in the market. Marketing research is the systematic gathering, model

building and fact finding process to solve the problem related to the marketing of goods

and services.

Marketing Research can be of three types:

Descriptive Research

Exploratory Research

Causal Research

The present market conditions shown that ther are various player in this Insurance sec-

tor. So, I decided to do a Survey and base on that make some strategy to enhance the

awareness of IDBI FEDERAL LIFE INSURANCE and to penetrate the IDBI FEDERAL

LIFE INSURANCE relative to competitor. So I took sample of 100 respondents as a

base and did the survey with the help of a questionnaire, which is displayed in the an-

nexure. The result of the survey are discussed later in this section

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OBJECTIVE

The main objective of this primary research:

Proper understanding and analysis of insurance industry.

To know brand awareness IDBI Federal Life Insurance.

To find brand perception.

To find media effectiveness to make people aware.

To find the value addition with the help of communication.

By conducting market survey on selected sample from population and derived opinion

on that research.

According market survey, come to know about how much potential of insurance market

in Indian Market and by analyzing result, made a report on that research.

By competitive analysis, we come to know people’s interest in IDBI Federal Life Insur-

ance.

Research Methodology:

Research methodology states how the research study is under taken. It includes specifi-

cation of research design, source of data, methods of primary data collection, sampling

design and analysis procedure adopted. Research methodology states, which proce-

dures were employed to carry out research study.

The primary Survey Method is conducted through survey of Brand Awareness of IDBI

FEDERAL LIFE INSURANCE.

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Research Design:

A research design is the arrangement of conditions for collection and analysis of data in

a manner that aims to combine relevance to the research purpose with economy in pro-

cedure.The sample decided in this research is studied in a way that they express their

conscious knowledge about the brand and the contribution toward company‘s brand eq-

uity.

The qualitative data are quantified with the help of statistical tools and the exact brand

equity is found from the sample. The same will be compared and tested with hypothesis

so that to reach to universal brand equity value. The data are compared with previous

year‘s parameters to understand the analytical value of the brand.

Research Instrument:

Form of Questionnaire

The questionnaire for the purpose of this study was carefully drafted and very well de-

veloped. Proper care has been taken in asking the questions, in wording them and in

maintaining the sequence of the question.

The questions asked were in open-ended and close-ended form, open-ended question

were to get customer‘s own views and in close-ended questions, multiple-choice ques-

tions were included.

Testing of the questionnaire was done on a sample of 100 respondents and based on

the difficulties encountered by them in answering the question. The initial format was

modified suitably

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Sampling Method and Design

Research methodology states how the research study is under taken. It includes specifi-

cation of research design source of data, method of primary data collection, sampling

design and analysis procedure adopted.

Research methodology states what procedure were employed to carry out the research

study.

All the items under consideration in any field of inquiry constitute a ―universe‖ or

―population.

Hence, quite often we select only a few items from the universe for study purposes. The

item so selected constitute what is technically called a sample.

(A) Sample unit :

As the simple random sampling was applied, the units of respondents are selected ran-

domly of the age above than 20 years.

(B) Scope of Survey: Delhi and Mumbai

(C)Sample Size: 100 Respondent.

(D)Survey questionnaire link: http://goo.gl/forms/dH1EXFtx5f

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The main Limitation of the Research:

Time was a major constraint for carrying out research project at this level.

Our research was restricted to the People filling the Sheets online

Many respondents were reluctant in providing their opinion.

There would be cases on biased opinion as well.

Most of people are not aware about the importance and necessity of insurance in

their life and their family, if something will be happen to them.

Perception of people toward insurance sector, they still think it is just tax saving de-

vice.

Increase competition in the market due to many players in market, a few of compet-

itors in indian market.

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Data Analysis

1. What is your age?

Question simply asked to check the Age of People.

The Result:

INTERPRETATION:

100% respondents fall in the age group of 20-28.

2. What is your present Annual Income?

The Result:

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3. For good returns from an investment, how much of the following attributes

are you ready to endure?

The Result:

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Interpretation:

There are respondent that think it secure life from risks that is real fact of insurance

while other three also a right answer. Among all first 4 option is right and there are

large amount of were aware about insurance.

Results show that respondents consider a brand that is honest and involves less risk

and also shows liquidity having no uncertainity in returns. So IDBI Federal Life Insur-

ance as honest brand which provides quality service to its customer would surely

flourish if we show advancement and perfection in these fields. As well as Leader-

ship in market is also one of the factors considered by Investor to invest in IDBI.

4. First Brand That comes in mind, when you hear about Insurance?

The Result:

Interpretation:

Around 40% TOMA (Top of the Mind Awareness) was recorded in the

sample of 100 respondents. This implies that IDBI Federal Life Insurance has reasonable

brand awareness.

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5. How much do you prefer insurance over other instruments like shares, gold, FD etc?

The Result:

Interpretation:

This shows that respondents prefer investing less in insurance and investing more in

instruments like shares gold and FD etc.

6. What is your preferred channel of communication regarding Insurance and

allied products?

The Result:

Interpretation:

There are five media through which advertising of IDBI Federal Life Insurance ap-

pears. Among 100 respondent 0% prefer Cold Calls , 19% prefer Magazines, 57%

prefer TV commercials, 14.3% prefer peer Referrals while 9.5% prefer Hoardings as

the preferred channel for communication.

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7. Can you recall any Commercial Ad Campaign by IDBI Federal Life Insurance?

The Result:

INTERPRETATION

Around 74% respondents are aware about the Brand IDBI Federal Life Insurance

which is below average. About 26% are totally unaware about the Brand. There are four

media through which advertising of IDBI Federal Life Insurance appears. Among 100

respondent 15 give all correct option while other not aware of all advertising media.

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8. View our website through the link below and rate the following attributes on

Scale of 1 to 5 (1 being least and 5 Highest)

http://www.idbifederal.com

Interpretation: In this the respondents were asked to visit the idbi federal website and rate it ac-cording to the various attributes. 14.3% respondents gave 5/5 rating while 42.9% gave it 3/5. Therefore , some improvements on the Official website of IDBI federal Life insur-ance could also be beneficial in the long run and even in reaching the public or solving the customer queries online 24x7 support.

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9. Are you willing to Invest in any Insurance plan?

The Result:

INTERPRETATION:

There were 52.4% respondent that think about investment while 42.9% were not think to in-

vest in insurance. That show a low opportunity for insurance industry in the age group of 20-

28 who are willing to invest in insurance.

May be in future when they get aware about the needs and importance of insurance , they

might show an interest in investing in insurance.

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HYPOTHESIS

We have done this test on following question.

1.1.1 Q. What is your preferred channel of communication regarding Insurance and allied

products?

Step – 1:- Hypothesis

H0:- = Factor that Attracts Customer For brand and Awareness of IDBI Federal life insurance in com-

parative market are Normally Distributed.

H1:- = Factor that Attracts Customer For brand and Awareness of IDBI Federal life insurance in com-

parative market are not Normally Distributed.

Step-2:- The statistical test being used is

𝑥2Cal = (Oi-Ei) 2 /Ei

Step-3:- ∞ = 0.05

Step-4:- Chi-square goodness of fit test is one-tailed because a chi-square of

zero indicates perfect agreement between distributions any deviation

from zero different occurs in the positive direction only because chi-

square is determined by a sum of squared values and can never be

negative with two categories in this question brand Perception. (r-1)(c-1)

=(5-1)(3-1)=(1)(2)=2

The critical chi-square value is 2= 0.05, 2= 5.991

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Step-5:- Chi-square calculated value

Step-6:-

Observed Fre-

quency

Expected Fre-

quency

(Oi-Ei) (Oi-Ei)2 (Oi-Ei)2

Ei

0 20 -20 400 20

4 20 -16 256 15.5

12 20 -8 64 12.8

3 20 -17 289 14.45

2 20 -18 296 14.8

48.3

𝑥2Cal = (Oi-Ei) 2 /Ei

= 48.3

𝑥2Cricital Value = 3.8415

Step-7:- Conclusion

Hear, 𝑥2 Calculation value is 17.1 while 2 Critical Value is 3.8415. It shows that calcu-lated value is greater then critical value. Thus we reject null hypothesis. that means that the channels that customers prefer for communication are not normally distributed through which the awareness needs to be done.

Particular Total

Cold Calls 0

Magazines 4

Tv Commercials 12

Peer Referrals 3

Hoarding 2

Total 26

60 | P a g e

FINDINGS & CONCLUSIONS

Brand awareness is comparatively very lesser then expected so the brand is not bombarded it is proved.

The company should increase the frequency of the ad rolling also needs to create some catchy creative to attract general public.

Communication effectiveness is comparatively good.

No exact brand personality is found from survey, the company need to maintain story line in creative so that to create a brand personality. It is seen that brand identity is not clear to audience mind, very differentiate identity is found in survey.

The company should establish a clear picture in mind of audience as far as identity is concern and the creative should revolve around the same to strengthen the same.

It is found that media effectiveness is higher than the other parameters but this may be due to the higher frequency of last campaign.

Above findings derived from the study we can say that the branding and advertising area should

be concentrated relatively more that the right time. So that the company can enjoy better mind-

share also with high market share.

It is important to remember where you stand and what your purpose is when contacting your

new perspective clients. In most cases it is expected that an insurance agent will guide custom-

ers though the maze of insurance policies, leading them to the right choice for them. It is of the

most importance that insurance customers trust the fact that there agent are doing what is in

there best interest. Often times the moment this is questioned is the moment the sale is lost.

Instead of jumping into a sales pitch about the great discounts your agency offers on insurance

plans, explain to the prospect how what you are offering can help solve a problemthey currently

have, or potential problem down the road. People are much more likely to purchase products

that resolve problems and provide them with peace of mind. This can b aschieved successfully

if we understand the families’ needs and have followed rule number one: Listen More, Talk Less.

61 | P a g e

BIBLIOGRAPHY

Hard-back Knowledge Editor

1. “Building strong Brand” („Marketing Management‟ 13th Edition, by Kotler, Keller, Koshy, jhaof Pear-

son Education,2009)

“Research method and Techniques” (‗Research Methodology‟ Revised Second Edition

By C.R.KOTHARI, New Age International Publishers,2006)

“Need to Analyze Customer Base Brand Equity” (ICFI journal of „Brand Management‟,

AbhilashPonnam and PradipKrishnatray, June 2008)

References

»"IDBI-Fortis Insurance is born". DNA (newspaper). 2006-07-26.

»"IDBI Fortis to double headcount". The Economic Times. 2009-11-26.

»"IDBI Fortis Life launches new incomesurance product". DNA (newspaper). 2009-11-18.

»"IDBI Fortis to double headcount, increase branches". The Economic Times. 2009-11-20.»

"IDBI Fortis Life renamed as IDBI Federal Life". Business-standard.com. 2010-08-24. Re-

trieved 2010-09-17.

»"IDBI Fortis Outsources Network Management". CXOToday. 2009-11-09.

»"IDBI Fortis Life launches incomesurance product". Business Standard. 2009-11-18.

»"IDBI Fortis to sponsor cricket series". Business Line. 2009-01-24.

»"Nimbus ropes in IDBI Fortis as title sponsor of India–Sri Lanka series". indiantelevision.com.

2009-01-23.

»"IDBI Fortis bags bronze Dragons at 'PMAA 2009'". afaqs. 2009-08-28.

»"Jagran Solutions wins big at the 2009 PMAA Awards". Campaign (magazine)Indian Edition.

2009-08-07.

62 | P a g e

Soft-back knowledge Editor

1. About journey to…..success of IDBI Federal life insurance I visited www.idbifederal.com

2. I visited wwidbifederal.comforgeneral information about IDBI Federal lifein-

surance.

3. To knows different key group of companies of IDBI Federal I visited www.idbi.com visited this site to introduction of marketing www.al-laboutmarketing.com .

4. I visited this site to find IDBI Federal life insurance’s logo www.brand-logo.com

5. For the purpose of literature review on brand awareness (MacDonald &

Sharp, 1996 referred to in Antonia Malt, 2002). I visitedhttp://int.ask.com

6. I also Visited http://conference.anzmck.org.upetd.up.ac.za/the-sis/available/etd- 11072001 for ―A Case Analysis Exploring Customer Attitudes on BMW by Master of Business Administration”, Marion Weiler, 2004, Hawaii Pacific University).

7. 9.“Effectiveness of advertising on brand awareness”(Campbell & Keller,

2003; Fang,Singh, & Ahluwalia, 2007; Hitchon& Thorson, 1995).visited http://98.griffth.edu.au/dspace/bitstream/1

8. Impact of logo on brand awareness visited (Henderson and Cote,1998) .http://www.brandchannel.com

9. Literature Review of “ value of brand awareness” (Aaker, 1991).

ttp://jiad.org/favicon

63

Appendix

QUESTIONNAIRE

2 IDBI FEDERAL LIFE INSURANCE: A BRIEF CUSTOMER SUR-

VEY

This form provides a Breif Customer survey which will comfort in dealing with our policies regarding

you. Your response will help us serve you better and improve our services and visibility for giving

you a better choice and also let us know the Brand awareness of IDBI federal Life Insurance.

* Required

What is your age? *

o 20-28

o 29-35

o 36-50

o 51-60

What is your present Annual Income *

o below 50,000

o 50,000- 1 lac

o 1lac - 4 lac

o 5 lac - 10 lac

o above 10 lacs

For good returns from an investment, how much of the following attributes are you

ready to endure? *

One is low tolerance & 5 is High Tolerance

Risk Uncertainity

of the amout

of return

Liquidity (ease

of conversion

to cash)

Payment Op-

tions

Assistance by

an Unknown

Insurance

Agent

1

2

3

64

Risk Uncertainity

of the amout

of return

Liquidity (ease

of conversion

to cash)

Payment Op-

tions

Assistance by

an Unknown

Insurance

Agent

4

5

First Brand That comes in mind, when you hear about Insurance? *

o IDBI federal Life Insurance

o Aviva

o Tata Aig

o Other:

How much do you prefer insurance over other instruments like shares, gold, FD etc? *

1 2 3 4 5

Least Preferable Highly Preferable

What is your preferred channel of communication regarding Insurance and allied prod-

ucts? *

o Cold calls

o Magazines

o Tv Commercials

o Peer Referals

o Hoardings

Can you recall any Commercial Ad Campaign by IDBI Federal Life Insurance? *

View our website through the link below and rate the following attributes on Scale of 1

to 5 (1 being least and 5 Highest) *

http://www.idbifederal.com

1 2 3 4 5

Atten-

tion

Seeking

65

1 2 3 4 5

User

Friendly

Attrac-

tive In-

terface

Mode

of Com-

munica-

tion

Clarity

Are you willing to Invest in any Insurance plan? *

Submit

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