study of promotional strategy of icici prudential life insurance co. ltd

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

Name Rajni Kant Student ID No. PGPMI/N/01/039 Course Post Graduate Program in Management and Insurance Project Title Advertisement Effectiveness (With Reference to Life Insurance) Project Guide Prof. Gaurav Ashesh Sub Topic Analysis and Evaluation of ICICI Prudential Media Strategy

International School of Business and Media

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


Certificate of Participation

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

FIRST BATCH of PGPMI Program, conducted by ICICI PRUDENTIAL

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

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

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

PROJECT) with the best of his effort.

(Guide Sign) (PGPMI Team Member Sign) (Director Sign) Advertisement Effectiveness Study (With reference to Life Insurance)-IGNITE-V March-2008 RAJNI KANT Page i

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

ACKNOWLEDGEMENT

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

In my whole endeavor to complete this project, I own immense gratitude to my project

guide Prof. Gaurav Ashesh for extending his guidance and co-operation though this

project.

I express my sincere thanks to all the Faculty Members of ISB&M Noida for there valuable

cooperation and giving me valuable information in preparing the project.

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

encouragement.

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

though this project.

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

the project.

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


DECLARATION

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

understanding.

Prof. Gaurav Ashesh, Faculty, ISB&M Noida, was my Project Guide during ONLINE

PROJECT COMPETITION conducted by PGPMI TEAM of ICICI Prudential Life Insurance Co.

Pvt. Ltd. under the title head of IGNITE SERIES.

This IGNITE-V Online Project report represents “Study of Promotional Strategy of ICICI

Prudential Life Insurance Co. Ltd.” Under the title head of “Advertisement Effectiveness

with reference to Life Insurance”

The pages count in this project does not include Front Page, Table of content, and

Annexure, The Preface, Declaration, Executive Summary, and References, do not

constitute part of the page limit.

The page count in the main text excluding the aforementioned points is 46 pages. Report

style has been adopted for presentation as per guideline and attempt has been made to

maintain the different parts and tasks as distinctive as possible but yet linking key elements

together to avoid repetition and to communicate the significance.

(Signature of the Projectee) Advertisement Effectiveness Study (With reference to Life Insurance)-IGNITE-V March-2008 RAJNI KANT Page iii


PREFACE

In this project we review the tools and techniques used to measure Advertising

Effectiveness. Effectiveness is the measure of the gap between results and objectives.

Lower the gap, higher the effectiveness. Thus it is an evaluation of the advertising

process. The advertising evaluation process is frequently called accountability.

Management wants the advertising managers to identify exactly what results were

obtained for the advertising investment and to provide evidence of the return on

investment. After all, advertising uses the scarce resources that could be invested in a

number of ways. Therefore, the question that management poses is, “Is advertising the

best way to use those funds?" And it is the job of the advertising campaign planner to be

able to answer that question. To do so usually requires some form of advertising

evaluation.

Evaluation of advertising campaign effectiveness is a form of research though it is

somewhat different from other forms. Most advertising research is used to predict what

might occur in the market place. Effectiveness research, on the other hand is used to

determine exactly what did happen. Although this information might be used as a basis

for future actions, its basic purpose is to measure what occurred as a result of the

advertising campaign and, therefore, what return was received on the investment made.

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

1. To determine if the objectives set for the advertising campaign were met. This off

course presupposes that measurable objectives were set in the first place. And that

these objectives are in line with the overall marketing objectives and strategies.

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


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

2. To quantify the return on the campaign investment. By knowing what was achieved,

management can relate that information to opportunity cost of money and

determine cost effectiveness of the advertising campaign. Off course this is an ideal

situation. Measurements of advertising results are seldom precise enough to make

this quantification possible.

3. To use the results of effectiveness research to make changes, additions, or

completely alter course for future campaigns. No advertising campaign is ever

totally successful.

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


A. EXECUTIVE SUMMERY A successful product or service means nothing unless the benefit of such a service can be

communicated clearly to the target market. An organization promotional strategy can

consist of:

Advertising: Is any non-personal paid form of communication using any form of

mass media.

Public relations: Involves developing positive relationships with the organization

media public. The art of good public relations is not only to obtain favorable

publicity within the media, but it is also involves being able to handle successfully

negative attention.

Sales promotion: Commonly used to obtain an increase in sales short term. Could

involve using money off coupons or special offers.

Personal selling: Selling a product service one to one. By personalizing advertising,

response rates increase thus increasing the chance of improving sales.

Direct Mail: Is the sending of publicity material to a named person within an

organization

Message & Media Strategy An effective communication campaign should comprise of a well thought out message

strategy. What message are you trying to put across to your target audience? How will you

deliver that message? Will it be through the appropriate use of branding?

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


Logos or slogan design? The message should reinforce the benefit of the product and

should also help the company in developing the positioning strategy of the product.

Companies with effective message strategies include:

ICICI PRUDENTIAL: Jeetye Raho

Om Kotak: ‘Jeene ki azaadi’

Nike: Just do it.

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

aspects of the promotional mix will the company use to deliver their message strategy?

Where will they promote? Clearly the company must take into account the readership and

general behavior of their target audience before they select their media strategy. What

newspapers does their target market read? What TV programmers do they watch?

Effective targeting of their media campaign could save the company on valuable financial

resources.

A.1. Research Objectives

A) Primary Objective

To understand & measure the impact of advertising in the market.

To measure the effectiveness of advertisement / promotional activities for a

particular product class and corporate advertising.

To understand and measure the affect of advertising in brand-building, brand

re-call and finally the choice of a plan while buying it.

B) Secondary objective

To know the promotional strategies of ICICI prudential.

To know how they face their competitor’s strategies.

To know how they survive in the cutthroat competition.

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


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

The first part introduces the reader to the report and also outlines the structure and

topics of discussion.

The second part describes in brief that what the concept behind giving

advertisement is., and what is the scope to this project.

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

conduct this project.

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

brand building.

The fifth part deals with facts and findings which give us knowledge about the

current market trend.

The sixth part extends into the generic strategies adopted by ICICI Prudential to

touch not only consumer share of mind but also consumer share of heart.

The fifth part introduces with greater analysis what is happening in current market

scenario and how ICICI Prudential survives in this cutthroat market competition.

The sixth part talks about the Insurance Industry and discuss the growth story of

Leading Private Insurance Company which is ICICI Prudential Life Insurance

Company Limited.

The final part sets the final context linking all the key frameworks and analysis with

the author’s own conclusions and future directions and expresses the author’s

limitation to this report.

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


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

1. Table of Contents Particulars Pages Acknowledgement ii Declaration iii Preface iv-v

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

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

2 Background 4-5

3 RESEARCH METHODOLOGY 6-8

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

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

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

References 47 Bibliography Annexure Questionnaire

Respondent Database Result Analysis Sheet

IMPACT: Marketing on Society Vs Society on Marketing

RAJNI KANT Page ix


1. INTRODUCTION "Advertisements are sometimes spoken of as the nervous system of the business world ...

As our nervous system is constructed to give us all the possible sensations from objects,

so the advertisement which is comparable to the nervous system must awaken in the

reader as many different kinds of images as the object itself can excite"

“Advertising effectiveness means different things to the groups responsible for its different

effects. To the writer or artist, effective advertising is that which communicates the desired

message. To the media buyer, effective advertising is that which reaches prospective

buyers a sufficient number of times. To the advertising or marketing manager, effective

advertising is that which, together with other marketing forces, sells his brand or product.

To the general manager, effective advertising produces a return on his firm’s expenditure.”

“In fact, effective advertising must achieve all four goals, delivering messages to the right

audience, thereby creating sales at a profit. Most advertisers have begun only recently to

set goals in all four areas and measure progress toward them. Some advertisers have set

communications and audience goals, and measured copy and media effects, but few

advertisers have set dollar goals and measured sales and profit effects.

The result is that advertising has rarely been a part of corporate planning. Thirty years ago,

management was asking the same questions they ask today: Is my advertising working

and what impact does it have on my sales? Can it be measured? Can our advertising and

promotion be made accountable in the same manner as which one evaluates all of the

other investments by our company?

The answer to all three questions is yes. In fact, the techniques to deliver this degree of

accountability and control have been around for more than 50 years and are industry

standards.

Advertisement Effectiveness Study (With reference to Life Insurance)-IGNITE-V March-2008 RAJNI KANT Page 1


There are methods to test every aspect of marketing promotion, sales support and media

mix, and analytical tools to establish a direct relationship to sales for complete

accountability. The key to this is applying a full advertising research curriculum. This

requires involvement of both sales and marketing management and the

advertising/promotions supplier coordinating their efforts with the researcher. It is a

partnership. This may explain why so many from both the client and agency sides remain

of the opinion that it can’t be done. The fact is that a full curriculum can be implemented, is

already integral to nearly every brand leader, and you can do it as well. It just takes a little

planning and co-operation. Let’s start from where it all began.

1.1. Problem Areas A majority of Indian customers being very conservative and averse to risk, trust was an

extremely important factor in the insurance business. Since LIC was a government owned

body, there was an element of security embedded in its services and products. This

proved to be the biggest hurdle for the new insurance companies as Indian customers

were reportedly rather skeptical about them.



1.2. Scope to

The Study

A big boom has been witnessed in Insurance Industry in recent times. A large number of

new players have entered the market and are vying to gain market share in this rapidly

improving market. The study deals advertisement given by Insurance Companies. The

study then goes on to evaluate and analyze the findings of these advertisements so as to

present a clear picture of media strategy the Insurance players.

The Company

The result of the survey will help the company to know about the effectiveness of various

life insurance advertisements and how much advertisement is helpful in buying decision.

The results will also help the company to trace the loop holes and then take the corrective

measures to rectify them.

The Industry

This is a limited study which takes into consideration the responses of 50 people. This data

can be exported to take decision for promotional strategy across the industry. The

significance for the industry lies in studying these trends that emerge from the study. It is a

rapidly changing and evolving sector. People are only beginning to wake up to its vast

possibilities. A study like this can attempt to guide the future of the industry based on

current trends.

The Researcher

To facilitate and provide all the useful information of the study, the company, the insurance

industry and also provide marketing ways, methods of ICICI Prudential Life Insurance Co.



2. BACKGROUND According to industry observers, one of the main reasons for the low insurance

penetration in India was the ineffective distribution and marketing strategies adopted by

LIC. The company reportedly never had any strategic marketing game plan, and due to its

monopolistic nature the need for serious marketing efforts was never felt. The advertising

initiatives were limited to some print and electronic media advertisements that typically

talked about LIC’s products being great tax saving tool for salaried individuals who came

under the income-tax bracket. Despite all this, LIC was synonymous with insurance in India

and it had established an enviable brand image for itself, especially in the rural areas and

small towns. However, with the entry of new players, the insurance market changed almost

overnight. Analysts commented that the private insurers seemed all set to make the

industry marketing-driven, wherein technical and service excellence would be the key

factors of success. The private companies, in a bid to make their presence felt and their

brand noticed, initiated a series of aggressive marketing and promotion initiatives,

something that buyers of insurance were not accustomed to.

In July 2002, India’s state owned insurer, Life Insurance Corporation of India (LIC)

announced aggressive marketing plans with a budget of around Rs 1 billion. The aim of

this unusual decision was to woo customers across the country through a multimedia

campaign including advertisements on the radio and the press media, the outdoor media

and the television. However, this did not come as a major surprise to industry observers

who said that LIC

did not have too many options.

With the insurance bill being passed in 2000, the Indian insurance sector saw a host of

private players enter the market with multinationals as their partners. These new players

resorted to aggressive marketing and advertisement strategies – something the market had

never seen earlier.



This sudden spurt of advertisements and awareness programs was visible on all the media

channels. Print, electronic and outdoor advertisements of the new private insurers flooded

could be seen everywhere. This prompted many comparisons of such behavior of

insurance companies with the advertising frenzy of the dotcoms in India not too long ago –

with similar full-page advertisements, huge hoardings and costly electronic media

advertisements.

According to reports, in the first quarter of the year 2002, insurance companies spent 70%

of what was spent in the whole of 2001, on advertising and publicity. Across the world,

insurance, as a category was one of the largest spenders on advertising. In India too

substantial expenditure was being incurred due to advertising.

COMPANY EXPENDITURE LIC 1000 Allianz Bajaj 200 Om Kotak Mahindra 150 ICICI Prudential 146

Source: ICMR.

However, during the first year of the entry of new players, while LIC reported a growth of

over 250%, private insurers managed to garner only about 0.5% market share, in spite of

spending hefty amounts on advertising and promotion. According to reports, LIC’s

business increased mainly because of the increased public awareness about insurance,

which was brought about by the heavy advertisement campaigns of private players.



3. RESEARCH METHODOLOGY Research methodology is a strategy that guides a research in providing answers to

research questions and for this, research survey is being done. “Accuracy of the study

depends on the systematic application of the method”. The researcher has to decide the

method to be used that helps him to get a desired direction in a systematic way. This study

in the following manner.

A) Methodology Adopted Questionnaire Design

The questions were designed in an easily understandable way with the help of Prof.

Gaurav Ashesh (Faculty Guide) and Prof. Hari Sadhu. That the respondents may not have

any difficulty in answering them. The questionnaire also contained a comments section.

This section was included so as to get opinion of the people regarding the ICICI Prudential

Life Insurance.

Random Sampling

Sampling can be defined as a part of population. Thus random sampling may be defined as

the selection of a portion from the whole population in which each elements of the

population has an equal chance of being selected. A more please definition is that each

element in the population has a non-zero and known probability of selection a randomly

drawn sample is an unbiased sample. In this research survey 50 people were surveyed at

random to get the relevant information.



Sample Size: The sampling techniques used in this project are probability sampling

techniques and the methods used in cluster sampling.

Sampling Unit: The respondents who were asked to fill out questionnaires are the

sampling units. These comprise of employees of MNCs, Govt. Employees, and Self

Employed etc.

Sample size: The sample size was restricted to only 50 between age group of 25-40,

which comprised of mainly peoples from different regions of India.

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

India.

B) Data Collection

Structured Questionnaire

In this collection data, structured questionnaire is used as a tool by asking a set of

standardized questions to know the effect of Life Insurance Advertisement and behavior of

the people for the ICICI Prudential Life Insurance.

Interview

The next step involved in collecting information requires discussion with people. Thus

valuable information was gathered informal friendly talks with the people.

Secondary Data Collection

Various websites were consulted to collect literature relevant to the topic.



Interpretation

Interpretation refers to the task of drawing inference from the colleted facts after an

analytical study, in fact it is a search for broader meaning of research findings it is through

interpretation that the researcher can well understand the abstract principle that

respondents beneath his findings. The simple statistical tools will used to analyze the data

collection, Bar Graphs and pie chart have been used to illustrate the findings

diagrammatically. The scores for advertisement were compiled on spontaneous recall,

aided recall and likeability. The top ads are selected on the basis of their score.



4. Literature Review 4.1Media Exposure in Rural Market

The rural middle-class constitutes a

potential market lying to be tapped by any

industry. There are 16.4 million urban

middle-class households and 15.6 million

rural middle class households in the

country, but the latter had a better

purchasing power because they do not

incur any expenditure on rent, transport

and school fees, compared to their urban

counterparts, who spend a sizable portion of their income on these items.

The estimated annual business from rural markets was Rs 1,23,000 crore, comprising Rs

65,000 crore of FMCG, Rs 5,000 crore of durables, Rs 45,000 crore of agricultural inputs

including tractors and Rs 8,000 crore of two-wheelers and four-wheelers. 29% of the rural

people own cars, 27%t own colour televisions, 24% own refrigerators and 10% own

washing machines, which points to the untapped potential in the rural areas.

Another revealing aspect of the

market is that 55% of the LIC

policies, 50% of the BSNL mobile

connections, 53% of the FMCG

products, 59% of durables, 60%of

Rediffmail sign-ups and 50% of

online shopping on Rediffmail are

accounted for by the rural sector.



TV impact: The dressing style of the rural people has also changed due to the impact of the

TV. Studies revealed that TV advertisements are not understood by the rural people who

think "they are for the rich". "Being sensitive and relevant to the requirement of the region

should be of utmost importance in the choice of products, packaging, pricing, promotions,

markets and communication,"

Key Summary

The Indian rural market with its vast size and demand base offers a huge opportunity any

industry cannot afford to ignore. With 128 million households, the rural population is nearly

three times the urban. We therefore have to look at the rural market very seriously for

future expansion.

4.2. CORORATE ADVERTISING

How a company does announced a name change especially when the old name was well

known? How does the company explain itself to constituents who may have known the

company quite well in an earlier incarnation but may be struggling to figure out what the

new organization stands for? How can the company create a new image while retaining the

strengths of the old one? And what role might corporate advertising play in all this?

Corporate advertising can tell a story about a company as a whole, large organizations may

need to use corporate ads to simplify their image in the minds of key constituents and to

show what unifies the company, despite the geographical spread and variety of its

businesses.



We can very well understand the concept of corporate advertising by taking the example of

ICICI Prudential communication. When Company first began operations, the task was to

present the visiting card of the company to the public at large and build credibility and

stature and to give the consumer the confidence that ''here is a company that can be

trusted to invest funds with.''

This required a corporate campaign - to establish the brand, build awareness and give the

brand a larger-than-life image.

The advertising idea, which was encapsulated in symbols of protection from the initial print

campaign, culminated in the corporate film where sindhoor was used as an endearing and

lasting symbol of protection.

Once the corporate image and brand identity were established, and as the company

expanded and its product range grew, the next phase of communication was to give the

consumer a rational and tangible reason to buy - first of all insurance and secondly from

ICICI Prudential Life. This was tackled through product-specific advertising, such as for

ICICI Pru Smart Kid, retirement solutions or LifeTime.

Key Summery

Create a good citizen image through consistent & dedicated effort.

Convey the organizations commitment to the concerned publics as well as to the

masses & eliminate prejudices, if any held by opinion leaders in particular & by the

public in general.

Boost both employee management relation & employee morale enabling all

members of the internal public to discover a new vitality.



4.3. Affect of advertising in Brand Building

Brand building through corporate advertising, defined

generally as advertising that benefits a company’s image by

emphasizing its own resources, skills and/or character. Many

astute business people now recognize corporate brands as

fundamental business assets, and have begun reaching out to

customers, prospects, and the financial community by

advertising those brands.

Brand building advertising is synonymous with product advertising and is commonly seen

in traditional mass media, including TV, radio, magazine, and newspaper. Brand building

advertisements tend to be product/service- (or retailer-) oriented with the purpose to

establish a positive image and creating demand for a product or service that leads to

eventual purchase. The communication route is typically one-to-many and is designed to

reach a mass audience by using a tactic of at capturing the attention of users.


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


5. Analysis It includes the summary of advertisement scenario of insurance industry in the soaring

mass market available in India based on the survey conducted.

5.1 Data and Interpretation

In the market it can easily be realized that the Television audience had a huge impact of

these ads. Although the most popular medium of entertainment or information gathering

has emerged as the arena of media war. But yes the old players news paper and radio are

still on their high trying to dominate in the market. Internet being in its youth phase is

rapidly reaching in the elite class.



Apart from entertainment channels like Zee T.V , Sony etc where family soaps are having

the highest TRPs contribute mainly for in FMCG sector. Though they show a bit of

Insurance Ads too. In the emerging economy of INDIA News and business channels have

risen serprizingly and contributing in the promotion of insurance sector.

(Ranks are in ascending order) LIC being the gaint of Life Insurance in INDIA has grabed the top slot in terms of

advertisement also. Other private players like ICICI Prudential, HDFC Std. Life, Brila Sun life

and Reliance Life Insurance are trailing behind LIC.



Life Insurance is considered to be sold by push strategy only, and we are witnessing

alternative financial Instruments available in the market giving tough competition. The first

thing before buying an Insurance Product in the competetetive market comes in the mind,

is the BRAND. It really plays a tremendous role for a product to be bought. It seems clearly

in the servey.

The message which is conveyed through these advertisements are however acceptable by

the mass market. People agree that the ads are understandable to them. But the relevance

is still in the black hole as these advertisements are treated as like entertainment clips.



5.2 Facts & Findings TAM Media Research, a joint venture between Nielsen Media Research (NMR)/ AC Nielsen

and Kantar Media Research (KMR)/IMRB gives fruitful knowledge to understand media and

advertising trend.

In July 2002, TAM took operational control of ADEX service-the pioneer in Media

monitoring in India. TAM inherited a well-oiled monitoring system with a trend work force.

ADEX India represents a cutting edges strategy tool which helps us to keep an eye on

advertising and media trend.

Facts and figures of advertising trend of year 2007-08 and role of Life Insurance advertising

in advertising business as per the survey conducted by AdEx India (A division of TAM

Media Research) is mentioned below.

Snapshot on TV Advertising in 2007

1) Volumes growth in TV advertising.

TV ad volumes saw a tremendous growth of 126 per cent during 2007 compared to 2004. Advertisement Effectiveness Study (With reference to Life Insurance)-IGNITE-V March-2008 RAJNI KANT Page 16


2) Sartorial division in TV advertising. Top 10 sectors constituted 58 per cent

share of TV advertising during 2007.

With 14 per cent share F&B had the largest

share of TV advertising, followed by

Personal Care/Personal Hygiene and

Services with 9 per cent and 6 per cent

share, respectively.

3) Channel wise distribution of advertisement in TV.

General Entertainment Channel led with 1/3rd share, followed by News and Music Channel

with 23 per cent and 15 per cent shares, respectively, during 2007.

Key Findings:

31 per cent growth in TV ad volumes during 2007 compared to 2006.

Food & Beverages sector leads in TV advertising during 2007.

HUL maintained its first rank in the top 10 advertisers list on TV across both the

years 2006 and 2007.



Snapshot on Life Insurance advertising on TV in 2007

1) Share of Life Insurance (Life Insurance versus Other Insurance).

The overall TV advertising was shared by Life

Insurance and Other Insurance in the ratio of

80:20 during 2007.

2) Volume Growth in Life Insurance sector.

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



3) Private versus Public Insurers on TV during 2007.

Private Insurers lead with 78 per

cent share of overall advertising of

Life Insurance sector on TV during

2007.

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

LIC and HDFC Standard Life Insurance

Co. Ltd switched their ranks in 2007

compared to 2006.

Compared to 2006, Bharti AXA Life

Insurance Co and ING Vysya Life

Insurance moved up maximum places

to be in the top 10 list of 2007.



5) Top 10 Life Insurance brands on TV.

HDFC Standard Life Children Plan

lead with 8 per cent share followed

ICICI Prudential Life Insurance and

Bharti AXA Life Insurance with 7 per

cent and 6 per cent share,

respectively, during 2007.

Top 10 brands were a mix of five

brands of Life Insurance, and three of

the brands belonged to the Pension

Plan.

6) New brands launched on TV in 2007.

Birla Sun Life Children's Dream was

number one Life Insurance brand to be

launched on TV in 2007.



7) Genre usage for Life Insurance advertising.

Maximum Life Insurance

advertising was done on

Regional GEC followed by

Hindi News.

Among the News genres viz.

Hindi, English and Regional

News channels took second

third and fourth slots

respectively during 2007.

Highlights

Life Insurance' players had an 80% share of overall TV advertising of 'Insurance'

sector in 2007.

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

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

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

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



Snapshot on Life Insurance advertising in print in 2007

1) Share of Life Insurance (Life Insurance vs. Other Insurance)

'Life Insurance' and 'Other Insurance'

contributed to Insurance advertising in

the ratio of 76:24 in Print.

2) Volume Growth in Life Insurance sector

Life Insurance’ advertising in Print

witnessed a dip of 14% during 2007 over

2004.

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

Private Insurers took 55%

advertising share of ‘Life

Insurance’ advertising in

Print during 2007.



4) Rank shift of top Life Insurers in 2007

Tata AIG Life Insurance and Max New

York Life Insurance moved up maximum

places to be in the top 10 list of 2007

compared to 2006.

5) Top 10 Life Insurance brands in Print

6 out of top 10 brands of Life

Insurance print advertising were of

LIC during 2007. 3 of the top 5

brands were of LIC during 2007.

6) New brands launched in Print in 2007

Interestingly, among the top 10 list of

new brands, 8 were related to ULIP

except for LIC’s Aam Admi Bima

Yojana and LIC’s Jeevan Amrut.



7) Preference of Genre for advertising of Life Insurance

Maximum Life Insurance advertising was done on business/Finance/Economic magazines,

followed by news/current affairs and general interest. But the condition is reversed in case

of newspapers. Here 91 percent of the Life Insurance advertisement is found on General

Interest page.

Highlights:

In the Insurance sector, ‘Life Insurance’ contributed 76% of advertising in Print

during 2007.

‘Life Insurance’ advertising dropped by 25% in Print during 2007 compared to 2006.

High advertising in ‘Life Insurance’ sector during the first quarter of both the years

2006 and 2007.

Private Insurers took 55% share of overall advertising of 'Life Insurance' in Print.

LIC and Bajaj Allianz Life Insurance maintained their respective 1st and 2nd ranks in

2006 and 2007.

Baja Allianz Life Insurance and LIC were the top 2 brands of ‘Life Insurance’ in Print

during 2007.



Findings As per the survey conducted it is

found that our result also supports

the facts mentioned above. Majority

of public use television for

entertainment or information

gathering, followed by newspaper

and internet. Radio is seems to be

out dated in urban areas. But after

revolution in mobile technology and satellite radio it again starts growing.

This survey question shows that how

much brand awareness is important.

Majority of the public goes behind

brand name. That’s why corporate

advertising plays a vital role in

growing stage.

It is also found that Insurance

companies like to give their

ads in News/Business channel.

It may be because of

Insurance is related to finance

and Insurance is mainly taken

as a tax saving instruments.



Liking an advertisement

does not mean that public

would like to buy that

product. During survey a

collection of various

insurance companies ad

shown to the respondent.

They liked it very much.

Some of them are get

emotional because it

touches their heart. But when it is asked that how many of them now would like to

purchase insurance policies then instead of raising hands deep salience come as a answer.

It shows that Liking an advertisement does not the guarantee of sell. Only few of them

actually buy after seeing ad especially in case of Insurance.

As we know LIC is a big player in

an Insurance Industry and it is

everyone’s first choice. But private

players also start chasing LIC. The

craze of LIC is mainly because of

Public sector. If we talk about

private players then ICICI

PRUDENTIAL is the first choice of

the public followed by HDFC Std.

Life and Reliance Life Insurance.



5.3 Limitation of the Project

The research is confined to a certain parts of Delhi due to time constraints and

does not necessarily shows a pattern applicable to all of Country.

Some respondents were reluctant to divulge personal information which can

affect the validity of all responses.

In a rapidly changing industry, analysis on one day or in one segment can

change very quickly. The environmental changes are vital to be considered in

order to assimilate the findings

5.4 CONCULSION There has been a tectonic shift in advertising the insurance companies. Till 2 or 3 years

back a typical Ad will showcase a small happy family enjoying their life. Then one

unfortunate Day the head of the family dies in an accident and the rest of the family is

drawn to rags. The ad ends up saying Insurance can help them against such calamities.

People bought the idea and started buying insurance. But there was a basic flaw in the ad.

It tells the consumers about the advantages of “having Insurance” but nothing about

“buying insurance from a perticular insurance firm”. So whoever casting such ad was

helping the industry as a whole but not their specific firm.

If we see the recent ads they are talking about how “SBI Life” can help smoothen your old-

age life or how “ICICI Prudential” can help you in receiving pentions etc. This sounds more

logical. Each ad speaks about how their firms offers can help you instead of telling how

insurance as a whole can help you.



In concluding part of this project it shows that

advertisement is very much important for any

business. A huge amount is paid by

companies against advertisement. There are

many ways available to give advertisement on

which this amount is paid this are TV,

Newspaper, Radio, Internet etc. The amount

spent on advertisement over four year across

the world is shown I table.

At the initial phase of a company it is important that they give emphasis on corporate

advertising because it helps in brand recall. At the later stage company can go for product

class advertisements. Well it is also found that during session that endorsement of

celebrities is helpful in ad recall. But giving advertisement in any type of media is not the

only medium; there are many other ways also like social service, by way of educating

people. Especially for Insurance companies if they want to capture rural market then they

have to approach in different way. In my opinion rural market can only been captured if we

reaches to there heart. And this can be happen only if we solve there basic problem.



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

Action oriented suggestions

People oriented suggestions

ACTION ORIENTED SUGGESTIONS

An intense AIDA model needs to be adopted the AIDA model (Awareness, Internet, Desire,

and Action). Customers are aware of majority of products of ICICI PRUDENTIAL Life

Insurance Co. Ltd.

To create the awareness regarding Product

1. Print & Electronic Media Advertisement should be done (As we can see intense ad

campaign of HDFC Standard Life and Bajaj Allianz.)

2. After the initial promotional campaign the relative advantage of ICICI PRUDENTIAL

Life Insurance Co. Ltd. Over its competitor should be highlighted.

3. Hoardings at prime areas should be used.

PEOPLE ORIENTED SUGGESTIONS

1. Creating offers like lucky draws for the users of Internet.

2. Giving free gifts for the customer.



6.1 Special Recommendation The insurance sector has largely stuck to images of happy families, carefree couples and

cute babies. We have to use a different route to break the clutter, and humor and

endorsement of celebrities is some of the routes available to us."

ICICI Prudential should come in front for development of rural sector, by way of

establishing a school, by digging a well in villages. May be it seems like a fool’s suggestion

but it is one of the way to gain trust in rural sector. We can also use to advertise us by

using the way of “HALLA BOL”. If we adopt this technique then I am sure that this will be

most creative and cheaper advertisement all over the world. And by this way ICICI

Prudential can again list their name in top advertiser.



7. Media strategy of ICICI Prudential Life Insurance Co. Ltd. It was time when the marketing team was thinking about an advertising campaign, almost

everyone, including the company's board, pooh-poohed the idea. At that time people

thought Company is wasting money. But ICICI discarded this “fear" typically used for

hawking insurance, choosing instead a "happy" platform to convey a more positive

message.

Even today after it has rolled out so many campaigns, ICICI remains among the top

advertisers: ad spends, as a percentage of new business premium, range between 0.5 per

cent and 0.75 per cent. Lowe (Lintas) has been the creative advertising agency for ICICI

Prudential Life since the beginning.

The TA:

Representing an ideal mix of medium to high net worth individuals: The consumers most

disposed towards buying life insurance. Middle-aged professionals, primarily male,

salaried and self employed, age group: 28 - 45 years, household income: Rs.20, 000 and

above.

Creative Strategy:

The essence of the creative strategy: To get the consumer to re look at Insurance as a

means to lead a worry free life and not as a necessary evil. When ICICI Prudential Life

Insurance first began operations, the task was to present the visiting card of the company

to the public at large and build credibility and stature and to give the consumer the

confidence that 'here was a company that could be trusted to invest funds with'. This

required a corporate campaign, which started with advertising to establish the brand, build

awareness and give the brand a larger than life image. To this effect the core brand insight

highlighted was "As head of the family it's my responsibility to take care of my loved ones

and protect them from the uncertainties of life", summed up in the advertising idea:



‘We cover you at every step in life (Suraksha… Zindagi ke har kadam par). ICICI Pru was

positioned as an enabler of protection relevant to the needs of the life stage that you are in.

Over the last few months, ICICI Prudential has been advertising in outdoor, TV and press.

The company launched a corporate television campaign – Saat Phere – which took the

emotions and thoughts of initial Sindoor corporate film a few steps further. The film

highlights the strength of promises that a husband makes to his wife, through the depiction

of everyday situations, and then goes on to emphasize that ICICI Prudential will stand by

the husband to help him fulfill all these promises. The TV campaign has also been

extended to outdoor. The company has also undertaken press and internet campaigns to

inform customers about benefits of some of its products, particularly retirement solutions,

through the Chintamani campaign.

Once the corporate image and brand identity were established, and as the company

expanded and its product range grew, the next phase of communication was to give the

consumer a rational and tangible reason to buy - first of all insurance and secondly from

ICICI Prudential Life. This was tackled through product-specific advertising, such as for

ICICI Pru Smart Kid, retirement solutions or Lifetime.

The Creative execution:

TVC: Building image and creating a differential in the most creative and compelling

manner. The creative execution heightened the emotional connect with the ICICI Pru brand

- Indian; satisfaction of knowing that one’s loved ones are protected. Symbolic

representation of the protector of the family through situations showcasing various life

stages and creating endearing imagery of protection and familial bonding.



Press: Gave the consumer a rational and tangible reason to buy insurance first and

secondly from ICICI Prudential. The product specific advertising focussed on changing the

prevalent perception about insurance and breaking a few myths: non- affordability,

insurance not being good investment option and the myth that insurance was good only

for tax saving.

After the hugely successful Chintamani (retirement) and Saat Phere (corporate) campaigns,

ICICI Prudential Life Insurance also introduced some innovations in the category, such as:

having a tax planner by the name of Chintamani on radio, who would answer consumer’s

queries about the role of insurance in financial planning.

Other Communications:

Other programs included direct mail, PR of communications campaign in press & TV,

website marketing; and database generation through Bancassurance channels.

Other initiatives included tie-up with the Dabbawalla Organisation in Mumbai for a direct

marketing exercise, to talk to the customer through a non-cluttered route, and thereby

have a higher impact. The direct mailer was about ICICI Prudential’s retirement solutions

and the tax benefits that one can avail of buy investing in any of these. About 100,000

direct mailers were attached to the ‘dabbas’, in areas such as Churchgate, Bandra and

Andheri where there are mostly office-goers. ICICI Prudential Life Insurance has also

announced a strategic distribution tie-up with Hariyali Kisaan Bazaar, the rural business

arm of DCM Shriram Consolidated Ltd (DSCL). As a partner, Hariyali Kisaan Bazaar can

now distribute ICICI Prudential's protection, wealth creation, retirement solutions and

health insurance products to customers across the its growing number of rural business

hubs in the country.



In addition to advertising, the company has also initiated several activities to raise

consumer awareness about life insurance and ICICI Prudential. “It includes seminars - ICICI

Prudential regularly holds consumer awareness meets on ‘the need for retirement

planning’ in different cities such as Pune, Aurangabad, Coimbatore, Nagpur, Bangalore and

Mangalore. These are very well attended and have contributed significantly towards

increasing awareness about the category and the company. Apart from this, company also

entered into alliances with telecom companies, as well as companies like BPCL and

Dominos.

The results of communication efforts:

Being no: 1 in awareness and saliency.

Awareness: ICICI Pru showed a significant jump in

awareness between Feb and Sept 2001. Image:

Highest score among all Insurance players

including LIC, on image parameters like safety,

modernity, service, good returns etc. Intention to

invest: Next only to LIC as per research (All

Source: Research by ORG Marg). No. of calls and

emails: There were 70,000 calls at the call center

and 6582 emails in the year 2001. Today, ICICI

Prudential are fairly high on awareness, among

target segment. Company have a 86% brand

recall today.A research survey shows that among

the investing public. About 11% of the investing public knew Prudential ICICI top of mind. It

is a fair indicator of the share that the brand enjoys in the market. On spontaneous level

ICICI prudential are at 30%. ICICI Prudential Life was awarded the INDY’s Award for

Excellence in Mass Communication in the category of Most Creative Advertisement-

Television.



Insurance Advertisement Trend LIC Vs Private Players According to a survey conducted by a leading marketing research firm, ORG Marg, brand

awareness of private insurers in India was increasing in the early 21st century.

The difference in the level of awareness of these new players as compared to the hitherto

monopoly of LIC was decreasing fast because of the aggressive advertising measures

adopted by private insurers.

The new companies focused their campaigns primarily on building an image of

trustworthiness and reliability for themselves. Secondly, their advertisements focused on

insurance as an investment option and not a mere tax saving tool – another first for the

Indian market. Most of these advertisements carried messages like the family’s happiness,

human bonding, etc., with underlying emphasis on the security that insurance could

provide. Also, instead of projecting the idea, that an insurance policy actually starts

working only after the death of the insured, the new campaigns projected that insurance

protects people throughout their lives.

Various Insurance Ads

In one of its TV commercials, ICICI Prudential showed a series of scenes depicting the

childhood, marriage and old age of an individual. The purpose of using these visuals was

to translate the company’s message ‘I will protect’ into real-life incidents. In order to

project its commitment towards consumers to ‘protect at every stage of life,’ the company

brought in the concept of sindoor, which symbolizes protection. Sindoor was shown

throughout the commercial as a mark of auspiciousness and protection, and at the end, it

became the red line below the ICICI Prudential logo.

Max New York also resorted to depicting positive emotions such as trust and protection in

its print advertisements. The company released two print advertisements.



While one of them carried an image of the revered deity Goddess Durga, the other

projected three teenagers standing together, with their faces painted green, white and

saffron – like the Indian national flag. Reportedly, Max New York wanted to convey the

message that ‘insurance is your partner for your life.’

In addition to such TV commercials, the private insurance companies were trying to make

their presence felt by organizing blood donation camps, contests and sponsoring various

events social events through their agents.

ING Vysya tied up with leading US-based Columbia Picture’s Indian arm to carry out

promotional activities using the blockbuster English movie ‘Spiderman.’ In the metros, ING

Vysya distributed free movie tickets to its customers. The latter also organized the Green

Mumbai Drive and several blood donation camps in association with the Red Cross,

besides sponsoring the action replay of the India-West Indies cricket match series in May

2002 and also in November 2002.

Om Kotak and Birla Sun Life took to sponsoring events in a major way, to attract

prospective customers. Om Kotak initially highlighted in its advertisements the credibility

and trustworthiness of individual partners (Old Mutual & Kotak Mahindra) through its

generic campaigns. The TV commercials featured men and women ‘meeting’ themselves

in the future – happy, healthy and secure, thanks to insurance.

Allianz Bajaj went a step ahead. Apart from bringing out TV commercials and putting up

hoarding and billboards, it entered into a two-month long contract with Shoppers Stop.

According to the contract, every Shoppers Stop outlet had an Allianz Bajaj kiosk that

provided information about policies in order to attract customers. Allianz Bajaj’s entire

communication package included print advertisements, outdoor media campaigns and

direct marketing methods. All its print advertisements carried a visual of human hands,

which symbolized partnership and care to stress on the concept of care.



Similarly, Tata AIG entered into an agreement with Westside to set up information kiosks in

all its outlets in order to attract people’s attention. Also, Tata AIG was one of the first

insurance companies to adopt the celebrity endorsement strategy. Tata AIG chose the

Hindi movie star, Naseeruddin Shah, as its brand ambassador for endorsing its personal

accidental death insurance policy.

In addition to all the above, private players in the insurance sector charted out various

innovative marketing plans to establish their products. For instance, ICICI Prudential

launched the ‘TruLife Club’ for its high-value policyholders as part of its marketing strategy.

Through TruLife Club, the company offered a wide range of health-related products, health

and fitness equipment and membership in gyms, health resorts and clinics in India.

Policyholders with a sum assured of Rs 0.5 million or more were included into this club.

Punch Lines

Another interesting development was regarding the punch lines used by private insurance

players that invariably tried to associate positive emotions with insurance products. While

ING Vysya said ‘Adding life to insurance,’ ICICI Prudential said, ‘We cover you. At every

step in life.’ Similarly, HDFC Standard advertisements projected a happy man asserting;

‘Now I can continue enjoying a comfortable lifestyle even after I retire.’ Om Kotak

highlighted its campaigns with ‘Jeene ki azaadi’ (Freedom to live)’ and Allianz Bajaj stated

‘Allianz Bajaj, Life insured by care.’ LIC came out with a corporate advertisement on TV

with the punch line, ‘Zindagi Tumhari Roshan Rahe’ (May your life be glorious).

LIC Vs ICICI Prudential

With private players paying much attention to advertising and promotional activities, LIC,

too, was forced to make efforts to increase its visibility and enhance its brand image. The

company commenced intense, systematic and well-focused public relations and publicity

activities both at the corporate and operational levels.



LIC upped its ad spend to tackle competition and succeeded in forging way ahead. LIC has

advertised in satellite channels as well as terrestrial channels. LIC has to reach out to non-

resident India policy holders as well as its other corporate customers who are based

abroad.ICICI Prudential has advertised on several channels from the Star TV bouquet, Zee

Network and Sony. The company have spent about Rs 50 million on TV advertising last

year.

With the geographical expansion, TV became a viable medium and the corporate

campaign for ICICI Pru Life was run on TV, because the medium lends itself well to an

emotional type of films that strike a chord with the audience. Product advertising, which

needs to impart information, was largely done through print and outdoor channels, as

these are appropriate for rational type of messages,

ICICI Prudential Life Insurance campaign was short-listed as one of the 12 most effective

campaigns for the year 2001 in the EFFIE awards. According to an ORG MARG study, the

ICICI Prudential brand name and advertising had the highest recall amongst all private

players, and was only marginally behind LIC.

ICICI Prudential Life was awarded the INDY’s Award for Excellence in Mass Communication

in the category of Most Creative Advertisement-Television.

(The scores for advertisement were compiled on spontaneous recall, aided recall and likeability. The top ads are selected on the basis of their score.) Advertisement Effectiveness Study (With reference to Life Insurance)-IGNITE-V March-2008 RAJNI KANT Page 38


It’s all about Money, Honey In recent times, the consumer has been bombarded with an unprecedented barrage of

brand advertisement campaigns from insurance companies. Turn on the radio, TV, or open

a newspaper or internet portal – the glut of insurance advertisements is there to see.

The insurance industry is estimated to have spent over Rs 900 crore in 2007, up from Rs

200 crore in 2002 on brand building. Of the media investments absorbed in 2007, around

53 per cent went to TV, and the remaining to the print media. Life insurers alone accounted

for over 70 per cent.



9. Industry profile The business of life insurance in India in its existing from started in India in the year 1818

with the establishment of the Oriental Life Insurance company in Calcutta. Some of the

important milestones in the life insurance business in India are:

1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1912: The Indian Life Assurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance business. 1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. 1956: 245 Indian and foreign insurers and provident societies taken over by the central government and nationalized. LIC formed by an Act of parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India. The general insurance business in India, on the other hand, can trace its roots to the Triton

Insurance Company Ltd., the first general insurance company established in the year 1850

in Calcutta by the British. Some of the important milestones in the general insurance

business in India are:

1907: The Indian Mercantile Insurance Ltd. Set up, the first company to transact all classes of general insurance business. 1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices. 1968: The Insurance Act amended to regulate investments and set minimum solvency margins and the tariff Advisory Committee set up. 1972: The General Insurance Business (Nationalization) Act, 1972 nationalized the general

insurance business in India with effect from 1st January 1973.



107 insurers amalgamated and grouped into four companies viz. the National Insurance

Company Ltd., the New India assurance Company Ltd., the Oriental Insurance Company

Ltd. And the United India Insurance Company Ltd. GIC incorporated as a company.

Insurance sector reforms in 1993, Malhotra Committee, headed by former Finance

secretary and RBI Governor R.N. Malhotra, were formed to evaluate the Indian insurance

industry and recommend its future direction. The Malhotra Committee was set up with the

objective of completing the reforms initiated in the financial sector.

The reforms were aimed at “ creating a more efficient and competitive financial system

suitable for the requirements of the economy keeping in mind the structural changes

currently underway and recognizing that insurance is an important part of the overall

financial system where it was necessary to address the need for similar reforms…”

In 1994, the committee submitted the report and some of the key recommendations

included:

1. Structure Government stake in insurance companies to be brought down to 50%. Government

should take over the holdings of GIC and its subsidiaries so that these subsidiaries can act

as independent corporations. All the insurance companies should be given greater

freedom to operate. 2. Competition Private Companies with a minimum paid up capital of Rs. 1bn should be allowed to enter

the industry. No Company should deal in both Life and General Insurance through a single

entity. Foreign companies may be allowed to enter the industry in collaboration with the

domestic companies. Postal Life Insurance should be allowed to operate in the rural

market.



Only one state Level Life Insurance Company should be allowed to operate in each state.

Regulatory Body The Insurance Act should be changed. An Insurance Regulatory body

should be set up. Controller of Insurance (Currently a part from the Finance Ministry)

should be made independent. 3. Investments Mandatory Investments of LIC Life Fund in government securities to be reduced from 75%

to 50%. GIC and its subsidiaries are not to hold more than 5% in any company (There

current holdings to be brought down to this level over a period of time).

Customer Service LIC should pay interest on delays in payments beyond 30 days.

Insurance companies must be encouraged to set up unit linked pension plans.

Computerized of operations and updating of technology to be carried out in the insurance

industry.

The Insurance Regulatory and Development Authority Reforms in the Insurance sector

were initiated with the passage of the IRDA Bill in Parliament in December 1999. The IRDA

since its incorporation as a statutory body in April 2000 has fastidiously stuck to its

schedule of framing regulations and registering the private sector insurance companies.

Attracted by the huge untapped potential, many private players entered the market after

the Insurance bill was passed in late 2000. A majority of these were collaborations between

an Indian company and a leading MNC insurance/financial services company.



COMPANY INDIAN PARTNER FOREIGN INSURER AREA Birla Sun Life Aditya Birla Group Sun Life, Canada Life Om Kotak Kotak Mahindra Finance Old Mutual, South Africa Life HDFC-Standard Life HDFC Standard Life, UK Life

Royal Sundaram Sundaram Finance Royal Sun, UK Life and Non-Life

ICICI-Prudential ICICI Prudential, UK Life Max New York Life Max India New York Life, USA Life

Tata-AIG Tata Group AIG, USA Life and Non-Life

ING Vysya Vysya Bank ING Insurance, Netherlands

Life

Aviva Dabur CGU Life, UK Life MetLife India Jammu & Kashmir Bank MetLife, USA Life

Bajaj Allianz Bajaj Auto Allianz Life & Non-Life

AMP Sanmar Sanmar Group AMP, Australia Life SBI Life Insurance SBI Cardiff, France Life

Source: www.knowledgedigest.com



10. ICICI Prudential Growth Story ICICI Prudential, a joint venture between ICICI Bank and Prudential UK, has been around

ever since the private sector was allowed to sell life insurance policies. ICICI Prudential

began their operations in 12th December 2000 after receiving approval from Insurance

Regulatory Development Authority (IRDA).

Since then the tribe of life insurers has grown from 12 to 16, but ICICI still leads the private

sector pack. With a portfolio of over 6.5 million policies, India's biggest private sector life

insurer has not merely held on to its share but grown it; at the end of January 2008, the

firm commanded 29 per cent of the share owned by private sector players. Quite some

way below was Bajaj Allianz with 21 per cent, while State Bank of India came in third with

10 per cent.

ICICI Prudential's premium income grew at about 100 per cent between March 2003 and

March 2007. Interestingly enough, the insurer started out with the traditional endowment

products and was not the first to introduce the more popular Unit Linked Insurance Policy

(Ulip): the credit for that goes to Birla Sunlife.

However, in the first full year of operations itself, it started offering Ulip policies and was

selling more policies than anyone else. Today, Birla Sunlife doesn't find a place in the top

five and players such as HDFC Standard Life, which were late to cotton on to Ulips, may be

regretting it.

It wasn't just that ICICI Prudential rolled out Ulips quickly; the company also made sure the

products were priced competitively. Compared with the competition, ICICI's upfront

charges have always been lower.



With charges across the industry now converging at around 20 per cent of first year

premiums, ICICI has come up with a zero-load product. Another scheme that has been

introduced automatically balances the debt and equity components of the portfolio every

quarter. Apart from this, ICICI Prudential has been quick off the block with retirement

solutions and the first to come up with health products.

If ICICI Prudential has managed to sign on 6.5 million policy holders, it is because the

company has built up a strong agent network, which brings in 60 per cent of the total

premium. Today the insurer has nearly 250,000 agents working for it, even though it

doesn't hand out the best commissions in the industry.

Bajaj Allianz's network is about 275,000- strong, while the public sector Life Insurance

Corporation boasts over a million agents. ICICI Prudential does not care about their

commission at the lower end compared with peers they compensate them by ensuring that

customer do better volumes.

The insurer is also rolling out offices at a furious pace; by the end of March 2008, ICICI

Prudential will have around 1,500 offices from around 1,100 currently, of which nearly 900

will have come up in 2007-08. Bajaj Allianz, too, has around 1,000 offices as of now. ICICI

Prudential targeting of 3,500 branches in five years.

The industry believes ICICI Prudential has a big advantage in that it can leverage the

customer base of its parent ICICI Bank. Bajaj Allianz, for instance, didn't have that

advantage. Banc assurance today fetches about 27 per cent of ICICI's premium; apart from

ICICI Bank, the insurer sells through Bank of India, Federal Bank, South Indian Bank and

some co-operative and rural banks.



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.



ADDITIONAL READINGS & REFERENCES:

1. Ahluwalia Harjeet, IRDA to remind insurance companies over ad norms, Financial

Express, February 5, 2001.

2. Jagannathan Venkatachari, Private Players ‘Insure’ LIC’s Business, domain-b, July 10,

2001.

3. Jagannathan Venkatachari, Its war out there, or is it?, domain-b, October 18, 2001.

4. Srinivasan Lalitha, Putting a premium on marketing differentiation, Financial Express,

November 21, 2001.

5. Shashidar Ajita, When ads get emotional, Catalyst – Business Line, January 17, 2002.

6. Vishwanath Rukmani, Menon. G. Shyam, Insure, be secure in the tinsel town motto,

Business Line, February 1, 2002.

7. Magazine Mukta, Max New York Life: Focusing on Internal Brand-Building, Financial

Express, April 4, 2002.

8. Joseph Jaiboy, Life insurance with seasoning, Catalyst – Business Line, April 25, 2002.

9. Mohandas Poornima, Private Insurance Companies turn on the heat, Business Line, June

9, 2002.

10. www.insuremagic.com

11. www.indiainfoline.com

12. www.bimaonline.com

13. www.expressindia.com

14. www.responsiveservice.com

15. www.agencyfaqs.com

16. www.knowledgedigest.com

17. Insurance Case Studies – ICMR

18. www. indiantelevision.com

19. The Hindu Business Line 20. Market Research in Insurance Advertisement Effectiveness Study (With reference to Life Insurance)-IGNITE-V March-2008 RAJNI KANT Page 47

(http://FreeOnlineSurveys.com/rendersurvey.asp?sid=nxwoh5j1nwm22gv411585) Hello Sir/Madam, I, RAJNI KANT, here to conduct a research on the T.V audience with respect to advertisement put up by LIFE INSURANCE COMPANIES. The purpose of this study is to understand, capture, assesses and evaluate the effectiveness of the advertisement. We would appreciate if you could spend about 15 Min. and communicate your feelings, expression, comments and impact on you with respect to the content of the advertisement. Please give your honest opinion and be understood that this information collected will be purely confidential and not to be shared with any other entity in term of commercialization.

PERSONAL PROFILE Name Age Occupation email-id

Postal Address

Contact No. Q1. Which media you use for information/entertainment?

TV Radio Newspaper Internet

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

Q3. Have you seen any Life Insurance Product Ad?

Yes No

Q4. On Which channel you watch mostly?

Zee T.V Sony Star News Channel

Q5. If yes can you recall the content of the Ad?

Yes No

Q6. Based on the features advertised, in that ad…... Rank the following

Strongly Agree

Somewhat Agree

Neither Somewhat Disagree

Strongly Disagree

The ad message is understandable. The advertisement is believeable The ad's message is relevant to me. The benefits described in the ad are believeable to me.

After viewing this ad, I would consider purchasing the product.

This ad is much better than other ads for products in this product category.

Q7. Which company ad you find mostly?

LIC IndiaHDFC Std. Life Insurance Co. Ltd. Birla Sun Life Insurance Co. Ltd. ICICI Prudential Life Insurance Co. Ltd. Reliance Life Insurance Co. Ltd.

Q8. Do you think this ad has influence you to……………….

Buy the insurance policy Recommend the Insurance Policy Suggest the insurance Policy would like to inform

Q9.Can you recall if your family members ever tried to influence you to buy/secure a life insure Policy from the insurance company of her interest?

Yes No Q10. Which of the Insurance Policy would you like to buy? Life Plan

Health Plan Child Plan Retirement Plan

Q11. Other than T.V Where you saw Life insurance ad? Internet

Newspaper Holdings Friends/Family Radio

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

http://hdfcinsurance.com/

http://iciciprulife.com/public/default.htm

http://www.reliancelife.co.in/website/corporate_profile.asp

http://www.allianzbajaj.co.in/lifeinsurance/index.asp

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

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

1 Mr. Daljeet Singh 9810598120

E-1, Metro Enclave, DMRC Officer's Colony, 41 Press Enclave Road, Sector 7, PushVihar , New Delhi-110017, India

2 Mr. C.P. Singh 9810848159


3 Mr. Vikash Rawat 9910484389


4 Mr. Sunil Kataria 9971598608


5 Mr. V. C. Gandhi 9971598574


6 Mr. A. S. Rao 9891173666


7 Mr. Gautam Kumar 9971598589


8 Mr. N. P. Singh 9810598148


9 Mr. Hari Ram 9891025582


10 Mr. R.C.Kulshrestha 9871130998

H-1, Metro Enclave, DMRC Officer's Colony, 41 Press Enclave Road, Sector 7, PushVihar , New Delhi-110017, India

11 Mr. Pramod Kumar 9810738914


12 Mr. Sanjeev Sharma 9212045886


13 Mr. Sudhir Mittal 9212038937


14 Mr. M.C. Gupta 9810160154


15 Mr. Alok Ranjan 9810998363


H-7, Metro Enclave, DMRC Officer's Colony, 41 Press Enclave Road, Sector 7, PushVihar ,

16 Mr. Santosh Kumar 9313083576 New Delhi-110017, India

17 Mr. Ramakant singh 9810520066


H-9, Metro Enclave, DMRC Officer's Colony, 41 Press Enclave Road, Sector 7, PushVihar ,

18 Mr. Arvind Kumar Tiwari 9810996743 New Delhi-110017, India

19 Mr. Chandan Bhatia 9212503676


20 Mr. Pankaj Saxena 9871374626


21 Mr. Saral Dwivedi 9910376097


22 Mr. Dharmendra Kumar 9910478524


23 Mr. Shiv Singh 9818250486


24 Mr. Kumar Keshav 9810854812


25 Mr. Pradeep Kharab 9910484377


26 Mr. Atul Gadgil 9818313973


27 Mr. Yashpal Mehta 9810848117


28 Mr. V.P. Srivastava 9971598614


29 Mr. Mukesh Thakur 9971598615


30 Mr. R.D. Gupta 9810079015

D-1, Metro Enclave, DMRC Officer's Colony, 41 Press Enclave Road, Sector 7, PushVihar , New Delhi-110017, India

D-2, Metro Enclave, DMRC Officer's Colony, 41 Press Enclave Road, Sector 7, PushVihar ,

31 Mr. Rajesh Kumar 9810803733 New Delhi-110017, India

32 Mr. S.K. Mittal 9871370955


33 Mrs. Kavita Verma 9971598602


34 Mr. V.C. Koshy 9212045898


35 Mr. Sulekh Jain 9891755653


36 Mr.Raj Kumar 9810045933


37 Mr. Ram Chandra 9868234788


38 Mr. T. N Mohan 9810598111


39 Mrs. Rita Kumar 9212503143


40 Mr. Arvind Bhatnagar 9971396200


41 Mrs. KumKum 9212701808


42 Mr. A. K. Gupta 9971396156


43 Mr. Puneet Garg 9891173666


44 mr. Om Tiwari 9911959557


45 Mr. O.h. Pandey 9818122922


46 Mr. S. K. Kappor 9810893392


47 Mr. Vineet Chaudhary 9871952378


48 Mr. Bhuneshwar Shah 9810998384


49 Mrs. Jyoti Ranjan 9818799684


50 Mrs. Laliy Malhotra 9810708120


Results for: Advertisment Effectiveness Servey

1) Q1. Which media you mostly use for information/entertainment?

Percentage Responses

TeleVision 42.0 21

Newspaper 36.0 18

Internet 14.0 7

Radio 8.0 4

Total responses: 50

2) Q2. How often do you share interesting advertising with your family or friends?


Never 8.0 4

Rarely 28.0 14

Sometimes 52.0 26

Often 8.0 4

Very often 4.0 2

Total responses: 50

3) Q3. Have you saw any Life Insurance Product Ad?


Yes 96.0% 48

No 4.0% 2

Total responses: 50

4) Q4. On Which channel you saw Insurance ad mostly?


Zee T.V 14.0 7

Sony 26.0 13

Star 4.0 2

News Channel 56.0 28

Total responses: 50

5) Q5. Which company ad you find mostly? Rank Them....

Page 1 of 4View Results

3/29/2008http://freeonlinesurveys.com/viewresults.asp?surveyid=414824&print=1

Average Score Responses

Life Insurance Corporation of India 1.22 / 5 50

HDFC Std. Life Insurance Co. Ltd. 2.84 / 5 50

Birla Sun Life Insurance Co. Ltd. 3.96 / 5 50

ICICI Pru. Life Insurance Co. Ltd. 2.16 / 5 50

Reliance Life Insurance Co. Ltd. 4.82 / 5 50

4.82 / 5

6) Q6. Can you recall the content of the Ad of any life insurance company?


Yes 94.0% 47

No 6.0% 3

Total responses: 50

7) Q7.Based on the features advertised in that ad...

1 Strongly

Agree

2 Somewhat

Agree 3

Neither 4

Somewhat Disagree

5 Strongly Disagree

Responses Average Score

The ad message is understandable. 15 (30.00%)

31 (62.00%)

1 (2.00%) 2 (4.00%) 1

(2.00%) 50 1.86 / 5

(37.20%)

The advertisement is believeable. 1 (2.00%)

21 (42.00%)

26 (52.00%) 1 (2.00%) 1

(2.00%) 50 2.60 / 5

(52.00%)

The ad's message is relevant to me. 3 (6.00%)

12 (24.00%)

26 (52.00%) 8 (16.00%) 1

(2.00%) 50 2.84 / 5

(56.80%)

The benefits described in the ad are believeable to me.

2 (4.00%)

23 (46.00%)

12 (24.00%)

12 (24.00%)

1 (2.00%) 50

2.74 / 5 (54.80%)

After viewing this ad, I would consider purchasing the product.

3 (6.00%)

14 (28.00%)

19 (38.00%) 9 (18.00%) 5

(10.00%) 50 2.98 / 5

(59.60%)

This ad is much better than other ads for products in this product category.

1 (2.00%)

19 (38.00%)

13 (26.00%)

13 (26.00%)

4 (8.00%) 50

3.00 / 5 (60.00%)

2.67 / 5 (53.40%)

8) Q8. Do you think this ad has influence you to……………….


Buy the insurance policy 10.0 5



Recommend the Insurance Policy 40.0 20

Suggest the insurance Policy 42.0 21

would like to inform 8.0 4

Total responses: 50

9) Q9. Before buying a product do you pay attention to the Brand Name?


Yes 80.0% 40

No 20.0% 10

Total responses: 50

10) Q10. Which of the Insurance Policy would you like to buy?


Life Plan 1.66 / 4 50

Health Plan 2.36 / 4 50

Child Plan 2.28 / 4 50

Retirement Plan 3.70 / 4 50

3.70 / 4

11) Q11. Other than T.V Where you saw Life insurance ad?


Internet 2.14 / 5 50

Newspaper 1.36 / 5 50

Holdings 2.78 / 5 50

Friends/Family 4.10 / 5 50

Radio 4.62 / 5 50

4.62 / 5

12) Q12. Please rank the following Life Insurance Company as per your liking.


HDFC Standard Life Insurance 1.96 / 5 50

ICICI Prudential Life Insurance 1.14 / 5 50

Reliance Life Insurance 3.30 / 5 50



Tata AIG Insurance 3.90 / 5 50

Bajaj Allianz 4.70 / 5 50

4.70 / 5

13) Please Mention Your Detail here...........



ADVERTISMENT CODE BY IRDA Every Insurer or Intermediary or Insurance Agent Shall –

1. Have a compliance officer, whose name and official position in the organization shall be communicated to the Authority, and he shall be responsible to oversee the advertising program;

2. Establish and maintain a system of control over the content, form, and method of dissemination of all advertisements concerning its policies. 3. Maintain an advertising register at its corporate office which must include:

A specimen of every advertisement disseminated, or issued or a record of

any broadcast or telecast, etc.;

A notation attached to each advertisement indicating the manner, extent of distribution and form number of any policy advertised.

Maintain a specimen of all advertisements for a minimum period of three years.

File a copy of each advertisement with the Authority as soon as it is first issued, together with information: an identifying number for the advertisement;

The form number(s) of the policy(ies) advertised and when the product/s were

approved by the Authority;

A description of the advertisement and how it is used.

The method or media used for dissemination of the advertisement.

File a certificate of compliance with their annual statement stating that, to the

best of its knowledge, advertisements disseminated by the insurer or by its

intermediaries during the preceding year have complied with the provisions

of these regulations and the advertisement code as stated in regulation 12.

The advertisement register shall be subject to inspection and review by the

Authority for content, context, prominence and position of required

disclosures, omissions of required information, etc.

Changes In Advertisement - Any change in an advertisement would be considered a new advertisement. 1. All the provisions of regulation 3 shall apply to an advertisement referred to in sub

regulation (i).

2. The Authority shall be informed at the time of filing the advertisement the extent of change the original advertisement Insurance company advertisements. 3. Every insurance company shall be required to prominently disclose in the

advertisement and that part of the advertisement that is required to be returned to the company or insurance intermediary or insurance agent by a prospect or an insured the full particulars of the insurance company, and not merely any trade

name or monogram or logo. 4. Where benefits are more than briefly described, the form number of the policy and

the type of coverage shall be disclosed fully. Source: www.bimaonline.com

*Executive, Corporate Strategy Group, Satyam Computer Services Ltd. **Correspondence Address: G-6, Adi tya Apartments , Durga Nagar Colony, Punjugut ta ,Hyderabad-500082. E-mail: [email protected]

IMPACT: Marketing on Society Vs Society on Marketing Gaurav Wadekar*,**

Introduction

Marketing has long been used by firms to position their products or services in the minds of the customers. But marketing has remained one tool that not only uses the traits of the society to tailor their products but has also become a major contributor to society, in terms of molding its mind set and bringing a sense of sensibility. Of course, it cannot be ignored that inappropriate Marketing has also led to undesirable impact on society. Also, there is increasing competition for the hearts and minds of the different markets being appealed to. When marketing tries to influence how and what people buy, Social Marketing tries to influence how they think, feel and act. This paper, titled “Impact: Marketing on Society Vs Society on Marketing”, shall attempt to shed light on this correlation between Marketing and Society.

The correlation between marketing and society

Does this thesis hold true and if it does, is there any method by which it can be proved? To begin answering this question, let’s consider a few definitions. Marketing is defined in various ways by different people. The most suitable to the present context is “all the activities involved in moving products and services from the source to the end user, including advertising, sales, packaging, promotion and printingi”. The most critical entity implied by this definition is ‘end user’. The definition of society suitable to this context is “Society is made up of people, groups, networks, institutions, organizations and systems. These aspects of society may include local, national and international patterns of relationships. People belong to informal and formal groups, and within and between these groups there are patterns of interactionsii.” The most critical entity implied by this definition is ‘people’. Correlation is a synonym for association or relationship between variables. In this case, Marketing and Society are two variables, while ‘end user’ and ‘people’ are the correlating factors. In order to devise a method to prove this correlation, we shall consider a set of parameters, examples and case studies in the later sections of the paper.

Question 1: Why is it necessary to evaluate the impact of society on marketing?

For any firm to form its marketing strategy, it is necessary to discover unfulfilled customer needs and bring market products that satisfy those needs. The process of doing so can be modeled in a sequence of steps: situation analysis to identify opportunities, strategy formulation for a value proposition, tactical decision making, plan implementation and result monitoring (refer Fig 1) The first stage in this process is very critical as a thorough analysis of situation in which the firm finds itself, serves as the basis for identifying opportunities to satisfy unfulfilled customer needs. In addition to identifying the customer needs, the firm must understand its capabilities and forces of the environment in which it is operating.

Situation analysis

Marketing strategy

Marketing mix decision

Implementation and control

Fig 1: Forming a Marketing Strategy

Part VI – Consumer Markets & Marketing

International Marketing Conference on Marketing & Society, 8-10 April, 2007, IIMK 564

Thus, the situation analysis is an analysis of the external environment and the internal forces of the firm itself. The external environment can be described in terms of macro-environmental factors that broadly affect many firms and micro-environmental factors, closely related to the specific situation of the firm. Figure 2 suggests some frameworks for Situation Analysis.

Question 2: Why is it necessary to evaluate the impact of marketing on society?

There are two reasons why it becomes necessary to evaluate the impact of marketing on society: One, to get feedback/results of the marketing strategy that was implemented and second, to assess the contribution to society. The first reason is directly related to Return on Investment (RoI) as well as Assessment and Realignment towards target achievement. For example, by monitoring the results of marketing strategy the firm can adjust its marketing mix if it finds that the market has changed its attributes. Secondly, organizations make profit by using the human resources as the backbone. Employees spend a life time in companies to make them profitable. It becomes the company’s liability to give back to the society. This means that all the activities the organization takes, including the marketing strategy should consider the impact on society.

A closer look

As the co-relation between marketing and society is established, here is a set of parameters, examples and case studies that support the point that marketing and society has a complimentary nature. The following table will showcase different parameters and examples to strengthen the fact that the marketing and society impact each other.

Fig 2: Frameworks that can be used for Situation Analysis • 5C Analysis – company, customers, competitors, collaborators, climate • PEST Analysis – for macro-environmental political, economic, societal, and

technological factors. • SWOT analysis – strengths, weaknesses, opportunities, and threats – for the internal

and external situation. PEST analysis can be viewed as equivalent to the “climate” factor of the 5C framework. The climate factor in the 5 C framework considers the following factors:

• Political and regulatory environment – governmental policies and regulations that affect the market

• Economic environment – business cycle, inflation rate, interest rates, and other macroeconomic issues

• Social/Cultural environment – society’s trends and fashions • Technological environment – new knowledge that makes possible new ways of

satisfying needs; the impact of technology on the demand for existing products. In PEST analysis, S factor includes:

• Demographics • Class structure • Education • Culture (gender roles, etc.) • Entrepreneurial spirit • Attitudes (health, environmental consciousness, etc.) • Leisure interests

Sr. No.

Type of segmentation

Parameter Sub parameters

Impact of marketing on society Impact of society on marketing

1 Demographic segmentation

Age Thumbs up advertisement which said “grow up to Thumbs Up”, urged children to prefer it to get into the grown up segment, when the Ad intended to urge the grown ups to prefer Thumbs Up

ICICI Debit cards for children, especially caters to the children age group, keeping in view the growng number of parents maintaing a fixed monthly account for their kids

Family size and life cycle

Children and early adulthood

TV, video games, etc are leading to reduced interest of children in physical games, book reading etc, hampering growth. Job site promotions increased frequent job changes, leading to a change in concept of staying with the same company for long

“Definitely male” slogan of Pulsar which created an increase in buying among men of this age group, who prefer a Macho feeling

Pre-Family - Adults married without children

Easily available housing loans leading to buying of houses in early stages of life

“Ready to Eat food” have targeted majorly the working couples who do not find the time to cook food

Family - One or more children

Easy availability of education loans have made it common for families to send their kids abroad for higher studies. Tourism industry promotions have led to increase in domestic as well as international customers, leading to improvement in work life balance

Insurance companies have targeted families that need to plan for their children’s future

Late - Adults whose children have left home

Chit funds which created a hype and attracted people to invest their savings to make easy money, had a drastic fall leading to many facing losses

HDFC Life insurance ad “na sar jhuka hai kabhi aur na jukhega kabhi” targets the aged segment that demands monetary independence in their old age

Social class/income

Premium segment

Due to the emergence of a number of products symbolizing status, a large number of people from the premium segment prefer only branded accessories, apparels etc., due to emerging branded security service providers, this segment has become more security conscious

The luxury cars like Rolls Royce and Mercedes are targeted at the prestige and status of the premium segment

Middle segment

Air Deccan’s low cost airlines made traveling by air more convenient and affordable, and hence more common

Small Cars like Alto, Wagon-R, etc have been targeted at the middle class people who cannot afford a luxury car but would need a small sized car for the entire family

Lower segment,

Reliance cell phone technology, which made mobile phones available at very low prices, has made the

“Nirma” washing powder was targeted at the lower segment. Over time they have

product accessible to the common man ; Wal-Mart’s news of entry into India has created a furore among shopkeepers as its wholesale prices shall eliminate them from the market

come up with many such products in this segment which generates more revenue than any other segment

2 Geo-demographic segmentation

Rural areas eChapaul of ITC helped farmers in a big way who were otherwise on verge of suicide

Cheaper PCs are being introduced, which are aimed at people from rural areas who would otherwise not be able to afford a PC

Urban areas Easily available housing loans leading to scarcity of space in big cities

Interior Designers utilize structures and plans that require minimal space and area, thereby targeting the urban areas where there is dearth of living space

3 Benefit segmentation and behavioral segmentation

Benefit segmentation

Due to availability of standardized packaged drinking water, the level of personal satisfaction of people regarding hygiene has increased

Fair and Handsome, surrogate advertisement (Wills, McDowell’s, etc.)

Behavioral segmentation

Frequent users Extensive promotion of Colgate has made it a synonym to toothpaste

Fairness soaps, have targeted the frequent users of soap who would otherwise not use a fairness cream

Occasional Users

Brufen – advertised for frequent use, but had negative impact on health

Points on credit cards urge occasional users to increase usage ad hence increase purchases

Non users Due to the entry of hair softeners in the retail market, which are affordable and easily available, it has been observed that women who were earlier not users of any such products have become regular users. Only because products like Fair and Handsome, Hair gel, people who were not using, also started using them

The advertisements that spread awareness on usage of condoms to prevent AIDS, have been targeted on the Non-Users who find it hesitating even to buy these products

4 Psychographics segmentation

'young aspiring'

Rang de Basanti, adv. of WWE created lot of negative impact on youth leading to deaths, fair and lovely adv is indirectly promoting that fair women are attractive

Institutes providing coaching to budding student appearing for entrance exams, have used career consulting as a means of differentiating themselves

‘young fogey’ Extensive distribution of Hollywood movies have changed the outlook/mindset of this segment with respect to their thinking, living, etc.

Job sites have attempted to move this segment, who needs a change of job and hence lifestyle



The examples mentioned above describe two phenomena. One is when marketing and society has a visible and substantial impact on each other. The other is when marketing or society unintentionally impacts each other. Whether visible and substantial or unintentional, the truth is there is a cyclical impact on the product to market process. From the time the product is launched and introduced to the market, till the product remains there, the impact of the product on marketing and society can be seen in a cyclical fashion as shown in Fig 3.

Two case studies found below highlight the two phenomena as mentioned. The first case study “EMRI: Impact of marketing on society” discusses how EMRI as a method of social marketing visibly impact society. This case study proves that there is a direct relationship that governs marketing and society. Then the second case study, “Globalization: Impact of society on marketing” discusses how globalization has unintentionally affected marketing in a big way.

EMRI: Impact of marketing on society

EMRI is a home grown success story offering a glimmer of hope in the emergency management scenario in India, currently in the state of Andhra Pradesh. Envisaging a comprehensive coverage of Medical, Police and Fire emergences through Public-Private Partnership, the Government of Andhra Pradesh recognized Emergency Management and Research Institute (EMRI), a not-for-profit institute as the nodal agency to provide comprehensive emergency management services, by an MOU signed on April 2, 2005. Just as in other parts of the world, a centralized emergency management system is helping save lives on a day to day basis, in AP, the number 108 is used as the centralized helpline for Medical, Police and Fire emergencies. The Government of India allotted this three-digit number – 108- which is accessible from both fixed and mobile phones and is toll free across the state for all emergencies. B.Ramalinga Raju, Founder and Chairman of Satyam Computer Services Ltd, and his brothers have provided the initial funding for setting up EMRI. The Governing body of EMRI has provided thought leadership. Here the intention of EMRI was not to market Satyam but indirectly, as EMRI is associated closely with Satyam, it is helping Satyam in gaining mind share of the society. Neither did Satyam intend to start EMRI as a tool for marketing, but it is unintentionally symbolizing social marketing here. This is increasing the brand recall of Satyam within the regions of operations. Moreover, EMRI has plans to increase its operations and to be recognized as the pioneer in emergency services in India. Also, considering the fact that in just 365 days of operation, 108 has helped save over 7,661 lives and responded to over 4.37 million calls, shows the amount of impact it has created in the society.

Marketing Society

Fig3: Impact of Product/Service



By setting up such an organization, Satyam has done lot of internal marketing as it provides opportunities to its associates to work for social cause and hence motivates them. Satyam’s AICS framework mentions society as one of the pillars in the organization’s success. This shows that how marketing, internal as well as external has a visible and substantial impact on society. The point to be noted here, at the cost of repetition is that the intention was not to market the organization, but indirectly it has done that, and which has a created a huge wave in society.

Globalization: Impact of society on marketing

Globalization usually refers to the declining significance of national borders, brought about by increased trade, the spread of information technology, cross-border financial flows, and cultural transfers. Several forces have contributed to this phenomenon. • Reduction in trade barriers • Technology transfers, rapid spread of computers, internet • Accelerated economic integration through private cross-border financial flows • Cultural transfers that have given consumers "global tastes" These forces have led to a tremendous increase in the demand for better goods and services, and hence the companies have an opportunity to expand in other countries. To ensure global success, a marketing strategy that could cater to different markets, culture, societies is compulsory. Though globalization is affecting society, diversity continues to exist. Considering these diversities, it is necessary that organizations customize the marketing strategy according to each target country. There are many such examples where productization or customization was inevitable to cater to a particular country for certain companies. • Diet Coke is named Light Coke in Japan--dieting was not well regarded • Red circle trademark was unpopular in Asia due to its resemblance of Japanese flag • Packaging of products is more important in some countries than in U.S. • Advertisement featuring man and dog failed in Africa--dogs were not seem as man’s best

friend • Cologne ad featuring a man “attacked” by women failed in Africa • Food demonstration did well in Chinese stores but not in Korean ones--older women were

insulted by being “taught” by younger representatives • MacDonald’s customized its products to cater to the Indian market All the above examples show that there is an unintentional impact of society, culture on marketing. As it can be seen from these examples that how organizations had to tweak their marketing mix to ensure successful launch and life cycle of their products or services to cater to a particular segment of society.

Conclusion

As shown in figure 4, we can consider a product or service being placed on the line and its impact on marketing or society can be defined by its closeness to either of the points. Moreover, the marketing and society impact each other in a cyclical fashion. When a product is launched in the market, its effect on society is monitored and depending on the intensity of this effect the marketing mix is revisited.

Marketing Society Fig 4



While it is always intended that the marketing strategy should cause an effect on the society, it is necessary to ensure that this effect is always on the positive side considering the larger picture. It is very important to consider that anything that forms a part of the marketing mix of a particular product or service is going to cause an upswing or downswing in the way society thinks and acts. Keeping this in mind and bearing the fact that after all the society has to be considered before devising the marketing strategy, an organization should appreciate the cyclical behavior of marketing and society. With this, it can be concluded that as much as marketing impacts society, society also has an important role to play in marketing strategies and that both are complimentary in nature.

References

http://www.web-source.net/internet_marketing/22734.html http://www.eventuring.org/ http://www.netmba.com/marketing/process/ http://en.wikipedia.org/wiki/Corporate_social_responsibility i www.garyeverhart.com/glossary_of_advertising_terms.htm ii members.ozemail.com.au/~mghslib/subjects/society%20culture/Glossary.htm

study of promotional strategy of icici prudential life insurance co. ltd

Documents