Avi Report Final (2) (2)

7/31/2019 Avi Report Final (2) (2)

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CHAPTER 1

INTRODUCTION

It has been wrongly assumed that the advertising function is of recent origin. Evidence suggests

that the Romans practiced advertising; but the earliest indication of its use in this country dates

back to the middle Ages, when the use of the surname indicated a mans occupation. The next

stage in the evolution of advertising was the use of signs as a visual expression of the tradesmans

function and a means of locating the source of goods. This method is still in common use. The

seller in primitive times relied upon his loud voice to attract attention and inform consumers of the

availability of his services. If there were many competitors, he relied upon his own personal

magnetism to attract attention to his merchandise. Often it became necessary for him to resort to

persuasion to pinpoint the advantages of his products. Thus, the seller was doing the complete

promotion job himself.

Development of retail stores, made the traders to be more concerned about attracting business.

Informing customers of the availability of supplies was highly important. Some types of outside

promotion were necessary. Signs on stores and in prominent places around the city and notices in

printed matters were sometimes used. When customers were finally attracted to the store and

satisfied with the service at least once, they were still subjected to competitive influences;

therefore, the merchants signs and advertisements reminded customers of the continuing

availability of his services. Sometimes traders would talk to present and former customers in the

streets, or join social organizations in order to have continuing contacts with present and potential

customers.

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As the markets grew larger and the number of customers increased, the importance of attracting

them also grew. Increasing reliance was placed on advertising methods of informing about the

availability of the products. These advertising methods were more economical in reaching large

numbers of consumers.

While these advertising methods were useful for informing and reminding and reminding, they

could not do the whole promotional job. They were used only to reach each consumer personally.

The merchant still used personal persuasion once the customers were attracted to his store. The

invention of hand press increased the potentialities of advertising.

1.1 HISTORY OF ADVERTISEMENT

Archaeologists have found evidence of advertising dating back to the 3000s BC, among the

Babylonians. One of the first known methods of advertising was the outdoor display. In medieval

times word-of-mouth praise of products gave rise to a simple but effective form of advertising, the

use of so-called town criers. The criers were citizens who read public notices aloud and were also

employed by merchants to shout the praises of their wares. Later they became familiar figures on

the streets of colonial American settlements. The town criers were forerunners of the modern

announcer who delivers radio and television commercials.

Advertising agencies initially focused on print. But the introduction of radio created a newopportunity and by the end of the 1920s, advertising had established itself in radio to such an

extent that advertisers were producing many of their own programs. The early 1930s ushered in

dozens of radio dramatic series that were known as soap operas because they were sponsored by

soap companies.

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Soon TV far surpassed radio as an advertising medium. The tone of the advertising was also

changing. No longer did advertising simply present the product benefit. Instead it began to create a

product image. Bill Bernbach, founder of DoyleDane Bernbach in New York City; Leo Burnett,

founder of the Leo Burnett agency in Chicago, Illinois; and David Ogilvy, founder of Ogilvy &

Mather in New York City, all came to prominence in the late 1950s and 1960s and led what has

been called the 'creative revolution.'Bernbach's agency captured the spirit of the new age. Bernbach

believed that advertising had to be creative and artistic or it would bore people. He also believed

that good advertising began with respect for the public's intelligence. The ads his agency created

were understated, sophisticated, and witty.

1.2 DEFINITION OF ADVERTISING

The word advertising originates from a Latin word advertise, which means to turn to. The

dictionary meaning of the term is to give public notice or to announce publicly. Advertising may

be defined as the process of buying sponsor-identified media space or time in order to promote a

product or an idea. The American Marketing Association, Chicago, has defined advertising as any

form of non- personal presentation or promotion of ideas, goods or services, by an identified

sponsor.

Advertisement Is - A mass communicating of information intended to persuade buyers to

by products with a view to maximizing a companys profits.

1.2.(a) THE ELEMENTS OF ADVERTISING ARE

2. It is a mass communication reaching a large group of consumers.

3. It makes mass production possible. It is non-personal communication, for it is not delivered by

an actual person, nor is it addressed to a specific person.

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4. It is a commercial communication because it is used to help assure the advertiser of a long business

life with profitable sales.

5. Advertising can be economical, for it reaches large groups of people. This keeps the cost

per message low.

6. The communication is speedy, permitting an advertiser to speak to millions of buyers in a matter of

a few hours.

7. Advertising is identified communication.

1.3 IMPORTANCE OF ADVERTISING

Generally, advertising is a relatively low-cost method of conveying selling messages to numerous

prospective customers. It can secure leads for salesmen and middlemen by convincing readers to

request more information and by identifying outlets handling the product.

It can force middlemen to stock the product by building consumer interest. It can help train dealers

salesmen in product uses and applications. It can build dealer and consumer confidence in the

company and its products by building familiarity.

Advertising is to stimulate market demand - While sometimes advertising alone may succeed in

achieving buyer acceptance, preference, or even demand for the product, it is seldom solely relied

upon. Advertising is efficiently used with at least one other sales method, such as personal selling

or point-of-purchase display, to directly move customers to buying action. Advertising has become

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increasingly important to business enterprises both large and small. Outlay on advertising certainly

is the voucher. Non-business enterprises have also recognized the importance of advertising.

In short, advertising pays for many of the enjoyable entertainment and educational aspects of

contemporary life. Advertising has become an important factor in the campaigns to achieve such

societal-oriented objectives such as the discontinuance of smoking, family planning, physical

fitness, and the elimination of drug abuse. Though in India, advertising was accepted as a potent

and recognized means of promotion only 25 years ago, its growing productive capacity and output

necessitates the finding of consumers and advertising plays an important role in this process.

Advertising helps to increase mass marketing while helping the consumer to choose from amongst

the variety of products offered for his selection. In India, advertising as a profession is in its

infancy. Because of this fact, there is a tremendous scope for development so that it may be

productively used for the benefit of producers, traders, consumers, and the countrys economy.

1.4 OUTDOOR ADVERTISING

Any advertising done outdoors that publicizes your business's products and

services. Outdoor advertising includes various types of promotional displays, from highway

billboards to transit posters and arena placement, all geared towards communicating a message to

the public. The message might be to buy a product, take a trip, vote for a politician, or give to a

charity. It might even be a public service announcement. According to the Outdoor Advertising

Association of America, Inc. (OAAA), businesses spent $5.8 billion dollars on outdoor advertising

in 2004, a figure expected to rise again in 2005.

1.4.(a) KINDS OF OUTDOOR ADVTERTISING

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1. Bill Boards

2. Mobile Vans

3. Walls

4. Hoardings

5. Auto Panel

6. Trains

7. Bus Stops

8. Metro Stations

9. Taxis

10. Outdoor Activities

11. Buses

1.4.(b) FACTORS AFFECTING OUTDOOR ADVERTISING

1. Modern urban lifestyles

2. Technological advancements

3. Boom in the real estate and infrastructure

a) Malls

b) Buildings

c) Flyovers

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d) Toll roads

e) Metro trains

4. Rise in consumerism

a) Consumer awareness

b) Purchase options

c) Buying power

5. Growth in rural markets

6. Saturation of other media

1.4.(c) IMPORTANCE OF MEASURING THE EFFECTIVENESS OF OUTDOOR

ADVERTISING

(1)It acts as a Safety measure

Testing effectiveness of advertising helps in finding out ineffective advertisement and advertising

campaigns. It facilitates timely adjustments in advertising to make advertising consumer oriented

and result oriented. Thus waste of money in faulty advertising can be avoided.

(2) Provides feedback for remedial measures

Testing effectiveness of advertising provides useful information to the advertisers to take remedialsteps against ineffective advertisements.

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(3)Avoids possible failure

Advertisers are not sure of results of advertising from a particular advertising campaign.

Evaluating advertising effectives helps in estimating the results in order to avoid complete loss.

(4) To justify the Investment in Advertising

The expenditure on advertisement is considered to be an investment. The investment in advertising

is a marketing investment and its objectives should be spelt out clearly indicating the results

expected from the campaign. The rate and size of return should be determined in advance. If the

expected rate of return is achieved in terms of additional profits, the advertisement can be

considered as effective one.

(5)To know the communication effect

The effectiveness of the advertisement can be measured in terms of their communication effects on

the target consumers or audience. The main purpose of advertising is communicated the general

public, and existing and prospective consumers, various information about the product and the

company. It is therefore desirable to seek post measurements of advertising in order to determine

whether advertisement have been seen or heard or in other words whether they have communicated

the theme, message or appeal of the advertising.

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(6) Compare two markets

Under this procedure, advertising is published in test markets and results are contrasted with other.

Markets so called control markets which have had the regular advertising program. The

measurements made to determine results may be measurements of change in sales, change in

consumer attitudes, changes in dealer display and so on depending upon the objectives sought by

the advertiser.

1.4.(d) IMPACT OF OUTDOOR ADVERTISEMENT

Outdoor Advertising has an important effect on a countrys economy, society, culture, and political

system.

1. Economic Impact

Most economists believe that Outdoor advertising has a positive impact on the economy because it

stimulates demand for products and services, strengthening the economy by promoting the sale of

goods and services. Manufacturers know that advertising can help sell a new product quickly,

enabling them to recoup the costs of developing new products. By stimulating the development of

new products, advertising helps increase competition.

Many economists believe that increased competition leads to lower prices, thereby benefiting

consumers and the economy as a whole. These economists also argue that by interesting

consumers in purchasing goods, advertising enables manufacturers and others to sell their products

in larger quantities. The increased volume of sales enables companies to produce individual units

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at lower costs and therefore, sell them at a lower price. Advertising thus benefits consumers by

helping lower prices.

2. Social Impact

Outdoor Advertising can have wide-ranging repercussions on a society. Some critics suggest that

advertising promotes a materialistic way of life by leading people to believe that happiness is

achieved by purchasing products. They argue that advertising creates a consumer culture in which

buying exciting new products becomes the foundation of the societys values, pleasures, and goals.

Other critics express concern over the way advertising has affected women and racial minority

groups.

3. Political Impact

Outdoor Advertising is now a major component of political campaigns and therefore has a big

influence on the democratic process itself. That amount of spending placed political advertising in

the ranks of the countrys 30 leading advertisers. Political advertising is a relatively new

development in Indian history. Advertising professionals did not become involved in electoral

campaigns until the 1970s.

But since then, political advertising has grown in sophistication and complexity. Political

advertising enables candidates to convey their positions on important issues and to acquaint voters

with their accomplishments and personalities.

Television advertising is especially effective for candidates running for national or state-wide

office because it can reach so many people at once. Candidates can also use advertising to respond

effectively to the charges of their opponents. Various campaign finance reform proposals,

however, have tried to address the impact of television advertising on political campaigning.

Because of the high cost of television ads, the costs of political campaigns have skyrocketed,

making it necessary for candidates to raise money continually, even after they have been elected to

office.

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4. Cultural Impact

Outdoor Advertising can affect cultural values. Some advertising messages, for example,

encourage aggressive individualism, which may clash with the traditional cultural values of a

country where the collective or group is emphasized over the individual or humility or modesty is

preferred to aggressiveness. With the globalization of the world economy, multinational

corporations often use the same advertising to sell to consumers around the world. Some critics

argue that advertising messages are thus helping to break down distinct cultural differences and

traditional values, causing the world to become increasingly homogeneous. Many advertising

campaigns, however, have universal appeal, overriding cultural differences, or they contribute to

culture in a positive way.

1.5 OBJECTIVES OF THE STUDY

1. To understand the significance of outdoor advertising of HDFC Life as an insurance

company.

2. To analyze the impact or influence of outdoor advertising on a consumers buying

decision process.

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3. To study the level of dependency of HDFC Life on outdoor advertising for its business

growth.

1.6 RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problem. It may be

understood as a science of studying how research is done scientifically. The scope of research

methodology is wider than that of research methods. When we talk of research methodology we

not only talk of research methods but also consider the logic behind the methods we use in the

context of our research study and explain why we are using a particular method or technique.

1.7 RESEARCH DESIGN

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

that aims to combine relevance to the research purpose with economy in procedure.

Research design is the conceptual structure within which research is conducted; it constitutes the

blueprint for the collection, measurement and analysis of data.

The type of research design used in the project was Descriptive research, because it helps to

describe a particular situation prevailing within a company. Careful design of the descriptive

studies was necessary to ensure the complete interpretation of the situation and to ensure minimum

bias in the collection of data.

1.8 SAMPLING TECHNIQUE

Sampling is the selection of some part of an aggregate or totality on the basis of which a judgment

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about the aggregate or totality is made. Simple random sampling method was used in this

project. Since population was not of a homogenous group, Stratified technique was applied so as to

obtain a representative sample. The employees were stratified into a number of subpopulation or

strata and sample items (employees) were selected from each stratum on the basis of simple

random sampling

1.9 SIZE OF THE SAMPLE

For a research study to be perfect the sample size selected should be optimal i.e. it should neither

be excessively large nor too small. Here the sample size was bounded to 30.

1.10 DATA COLLECTION METHOD

Both the Primary and Secondary data collection method were used in the project. First hand

collected data are referred to as primary data. In this research the primary data was collected by

means of a Structured Questionnaire. The questionnaire consisted of a number of questions in

printed form. It had both open-end & closed end questions in it. Data which has already gone

through the process of analysis or were used by someone else earlier is referred to secondary data.

This type of data was collected from the books, journals, company records etc.

1.11 TOOLS USED FOR ANALYSIS

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Percentage analysis.

1.11.(a)PERCENTAGE ANALYSIS

One of the simplest methods of analysis is the percentage method. It is one of the traditional

statistical tools. Through the use of percentage, the data are reduced in the standard form with the

base equal to 100, which facilitates comparison.

The formula used to compute Percentage analysis is,

Percentage of the Respondents = (No.of Respondents \ Total No.of Respondents) * 100

1.12 LIMITATIONS

1. Due to constraint of time and resources, the study was conducted on HDFC Life Insurance

Co. Ltd and the results of the study cannot be generalized.

2. The accuracy of the analysis and conclusion drawn entirely depends upon the reliability of

the information provided by the selected sample population.

3. Sincere efforts were made to cover maximum category of people, but the study may not

fully reflect the entire opinion of the people.

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CHAPTER 2

INDUSTRY ANALYSIS

2.1 INTODUCTION

Insurance sector in India is one of the booming sectors of the economy and is growing at the rate

of 15-20 per cent annum. Together with banking services, it contributes to about 7 per cent to the

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country's GDP. Insurance is a federal subject in India and Insurance industry in India is governed

by Insurance Act, 1938, the Life Insurance Corporation Act, 1956 and General Insurance Business

(Nationalisation) Act, 1972, Insurance Regulatory and Development Authority (IRDA) Act, 1999

and other related Acts 1818 saw the advent of life insurance business in India with the

establishment of the Oriental Life Insurance Company in Calcutta.

This Company however failed in 1834. In 1829, the Madras Equitable had begun transacting life

insurance business in the Madras Presidency. 1870 saw the enactment of the British Insurance Act

and in the last three decades of the nineteenth century, the Bombay Mutual (1871), Oriental (1874)

and Empire of India (1897) were started in the Bombay Residency. This era, however, was

dominated by foreign insurance offices which did good business in India, namely Albert Life

Assurance, Royal Insurance, Liverpool and London Globe Insurance and the Indian offices were

up for hard competition from the foreign companies.

In 1914, the Government of India started publishing returns of Insurance Companies in India. The

Indian Life Assurance Companies Act, 1912 was the first statutory measure to regulate life

business. In 1928, the Indian Insurance Companies Act was enacted to enable the Government to

collect statistical information about both life and non-life business transacted in India by Indian

and foreign insurers including provident insurance societies. In 1938, with a view to protecting the

interest of the Insurance public, the earlier legislation was consolidated and amended by the

Insurance Act, 1938 with comprehensive provisions for effective control over the activities of

insurers.

The Insurance Amendment Act of 1950 abolished Principal Agencies. However, there were a large

number of insurance companies and the level of competition was high. There were also allegations

of unfair trade practices. The Government of India, therefore, decided to nationalize insurance

business.

An Ordinance was issued on 19th January, 1956 nationalising the Life Insurance sector and Life

Insurance Corporation came into existence in the same year. The LIC absorbed 154 Indian, 16 non-

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Indian insurers as also 75 provident societies245 Indian and foreign insurers in all. The LIC had

monopoly till the late 90s when the Insurance sector was reopened to the private sector.

The history of general insurance dates back to the Industrial Revolution in the west and the

consequent growth of sea-faring trade and commerce in the 17th century. It came to India as a

legacy of British occupation. General Insurance in India has its roots in the establishment of Triton

Insurance Company Ltd., in the year 1850 in Calcutta by the British. In 1907, the Indian

Mercantile Insurance Ltd, was set up. This was the first company to transact all classes of general

insurance business.1957 saw the formation of the General Insurance Council, a wing of the

Insurance Association of India. The General Insurance Council framed a code of conduct for

ensuring fair conduct and sound business practices.

In 1968, the Insurance Act was amended to regulate investments and set minimum solvency

margins. The Tariff Advisory Committee was also set up then. In 1972 with the passing of the

General Insurance Business (Nationalisation) Act, general insurance business was nationalized

with effect from 1st January, 1973. 107 insurers were amalgamated and grouped into four

companies, namely National Insurance Company Ltd., the New India Assurance Company Ltd.,

the Oriental Insurance Company Ltd and the Unit.

India Insurance Company Ltd. The General Insurance Corporation of India was incorporated as a

company in 1971 and it commence business on January 1sst 1973.This millennium has seen

insurance come a full circle in a journey extending to nearly 200 years. The process of re-opening

of the sector had begun in the early 1990s and the last decade and more has seen it been opened up

substantially.

In 1993, the Government set up a committee under the chairmanship of RN Malhotra, former

Governor of RBI, to propose recommendations for reforms in the insurance sector.

The objective was to complement the reforms initiated in the financial sector. The committee

submitted its report in 1994 wherein, among other things, it recommended that the private sector

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be permitted to enter the insurance industry. They stated that foreign companies be allowed to

enter by floating Indian companies, preferably a joint venture with Indian partners.

Following the recommendations of the Malhotra Committee report, in 1999, the Insurance

Regulatory and Development Authority (IRDA) was constituted as an autonomous body to

regulate and develop the insurance industry. The IRDA was incorporated as a statutory body in

April, 2000. The key objectives of the IRDA include promotion of competition so as to enhance

customer satisfaction through increased consumer choice and lower premiums, while ensuring the

financial security of the insurance market.

The IRDA opened up the market in August 2000 with the invitation for application for

registrations. Foreign companies were allowed ownership of up to 26%. The Authority has the

power to frame regulations under Section 114A of the Insurance Act, 1938 and has from 2000

onwards framed various regulations ranging from registration of companies for carrying on

insurance business to protection of policyholders interests.

In December, 2000, the subsidiaries of the General Insurance Corporation of India were

restructured as independent companies and at the same time GIC was converted into a national re-insurer. Parliament passed a bill de-linking the four subsidiaries from GIC in July, 2002.

Today there are 24 general insurance companies including the ECGC and Agriculture Insurance

Corporation of India and 23 life insurance companies operating in the country. Insurance sector in

India was liberalized in March 2000 with the passage of the Insurance Regulatory and

Development Authority (IRDA) Bill, lifting all entry restrictions for private players and allowing

foreign players to enter the market with some limits on direct foreign ownership. There is a 26

percent equity cap for foreign partners in an insurance company.

There is a proposal to increase this limit to 49 percent. The opening up of the insurance sector has

led to rapid growth of the sector. Presently, there are 16 life insurance companies and 15 non-life

insurance companies in the market. The potential for growth of insurance industry in India is

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immense as nearly 80 per cent of Indian population is without life insurance cover while health

insurance and non-life insurance continues to be well below international standards.

2.2 INSURANCE MARKET

2.2.1PRESENT

For years now, the private players are active in the liberalized environment. The insurance market

have witnessed dynamic changes which includes presence of a fairly large number of insurers both

life and non-life segment. Most of the private insurance companies have formed joint venture

partnering well recognized foreign players across the globe.

There are now 29 insurance companies operating in the Indian market 14 private life insurers,

nine private non-life insurers and six public sector companies. With many more joint ventures in

the offing, the insurance industry in India today stands at a crossroads as competition intensifies

and companies prepare survival strategies in a detariffed scenario.

There is pressure from both within the country and outside on the Government to increase the

foreign direct investment (FDI) limit from the current 26% to 49%, which would help JV partners

to bring in funds for expansion.

There are opportunities in the pensions sector where regulations are being framed. Less than 10 %

of Indians above the age of 60 receive pensions. The IRDA has issued the first licence for a

standalone health company in the country as many more players wait to enter. The health insurance

sector has tremendous growth potential, and as it matures and new players enter, product

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innovation and enhancement will increase. The deepening of the health database over time will

also allow players to develop and price products for larger segments of society.

State Insurers Continue to Dominate There may be room for many more players in a large

underinsured market like India with a population of over one billion. But the reality is that the

intense competition in the last five years has made it difficult for new entrants to keep pace with

the leaders and thereby failing to make any impact in the market.

Also as the private sector controls over 26.18% of the life insurance market and over 26.53% of

the non-life market, the public sector companies still call the shots. The countrys largest life

insurer, Life Insurance Corporation of India (LIC), had a share of 74.82% in new business

premium income in November 2005.

Similarly, the four public-sector non-life insurers New India Assurance, National Insurance,

Oriental Insurance and United India Insurance had a combined market share of 73.47% as of

October 2005. ICICI Prudential Life Insurance Company continues to lead the private sector with a

7.26% market share in terms of fresh premium, whereas ICICI Lombard General Insurance

Company is the leader among the private non-life players with a 8.11% market share. ICICI

Lombard has focused on growing the market for general insurance products and increasingpenetration within existing customers through product innovation and distribution.

Reaching out to Customers No doubt, the customer profile in the insurance industry is changing

with the introduction of large number of divergent intermediaries such as brokers, corporate

agents, and banc assurance.

The industry now deals with customers who know what they want and when, and are more

demanding in terms of better service and speedier responses. With the industry all set to move to a

detariffed regime by 2007, there will be considerable improvement in customer service levels,

product innovation and newer standards of underwriting.

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Intense Competition In a detariffed environment, competition will manifest itself in prices,

products, underwriting criteria, innovative sales methods and creditworthiness.

Insurance companies will vie with each other to capture market share through better pricing and

client segmentation. The battle has so far been fought in the big urban cities, but in the next few

years, increased competition will drive insurers to rural and semi-urban markets.

Global Standards While the world is eyeing India for growth and expansion; Indian companies are

becoming increasingly world class. Take the case of LIC, which has set its sight on becoming a

major global player following a Rs280-crore investment from the Indian government. The

company now operates in Mauritius, Fiji, the UK, Sri Lanka, Nepal and will soon start operations

in Saudi Arabia. The year 2005 was a testing phase for the general insurance industry with a series

of catastrophes hitting the Indian sub-continent. However, with robust reinsurance programmes in

place, insurers have successfully managed to tide over the crisis without any adverse impact on

their balance sheets. With life insurance premiums being just 2.5% of GDP and general insurance

premiums being 0.65% of GDP, the opportunities in the Indian market place is immense. The next

five years will be challenging but those that can build scale and market share will survive and

prosper.

2.3 SOME AREAS OF FUTURE GROWTH

2.3.(a) LIFE INSURANCE

The traditional life insurance business for the LIC has been a little more than a savings policy.

Term life (where the insurance company pays a predetermined amount if the policyholder dieswithin a given time but it pays nothing if the policyholder does not die) has accounted for less than

2% of the insurance premium of the LIC. For the new life insurance companies, term life policies

would be the main line of business.

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2.3.(b) HEALTH INSURANCE

Health insurance expenditure in India is roughly 6% of GDP, much higher than most other

countries with the same level of economic development. Of that, 4.7% is private and the rest is

public. What is even more striking is that 4.5% are out of pocket expenditure (Berman, 1996).

There has been an almost total failure of the public health care system in India. This creates an

opportunity for the new insurance companies. Thus, private insurance companies will be able to

sell health insurance to a vast number of families who would like to have health care cover but do

not have it.

2.3.(c) PENSION

The pension system in India is in its infancy. There are generally three forms of plans: provident

funds, gratuities and pension funds. Most of the pension schemes are confined to government

employees (and some large companies). The vast majority of workers are in the informal sector. As

a result, most workers do not have any retirement benefits to fall back on after retirement.

2.4 MARKET SHARE OF INDIAN INSURANCE INDUSTRY

The introduction of private players in the industry has added value to the industry. The initiatives

taken by the private players are very competitive and have given immense competition to the on

time monopoly of the market LIC. Since the advent of the private players in the market the

industry has seen new and innovative steps taken by the players in this sector. The new players

have improved the service quality of the insurance. As a result LIC down the years have seen the

declining phase in its career. The market share was distributed among the private players. Though

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LIC still holds the 55% of the insurance sector but the upcoming natures of these private players

are enough to give more competition to LIC in the near future.

2.4.(a) Market Share of Companies in FY - 2011

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Fig.2.4.1 Market share of insurance companies

2.4.(b) Market Share (%) Players Table

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PLAYER MARKET SHARE[%]

LIFE INSURANCE CORPORATION OF INDIA 50

ICICI PRUDENTIAL 10

BIRLA SUNLIFE 4

BAJAJ ALLIANZ 4

SBI LIFE INSURANCE 5

HDFC STANTARD 6

TATA AIG 2

MAX NEWYORK 3

KOTAK MAHINDHRA 2

MET LIFE 1

Table 2.4.2 Market share (%) player table

India with about 200 million middle class household shows a huge untapped potential for players

in the insurance industry. Saturation of markets in many developed economies has made the Indian

market even more attractive for global insurance majors. The insurance sector in India has come to

a position of very high potential and competitiveness in the market. Indians, have always seen life

insurance as a tax saving device, are now suddenly turning to the private sector that are providingthem new products and variety for their choice.

Consumers remain the most important centre of the insurance sector. After the entry of the foreign

players the industry is seeing a lot of competition and thus improvement of the customer service in

the industry. Computerisation of operations and updating of technology has become imperative in

the current scenario. Foreign players are bringing in international best practices in service through

use of latest technologies

The insurance agents still remain the main source through which insurance products are sold. The

concept is very well established in the country like India but still the increasing use of other

sources is imperative. At present the distribution channels that are available in the market are listed

below.

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Direct selling

Corporate agents

Group selling

Brokers and cooperative societies

Customers have tremendous choice from a large variety of products from pure term (risk)

insurance to unit-linked investment products. Customers are offered unbundled products with a

variety of benefits as riders from which they can choose. More customers are buying products and

services based on their true needs and not just traditional moneyback policies, which is not

considered very appropriate for long-term protection and savings. There is lots of saving and

investment plans in the market. However, there are still some key new products yet to be

introduced - e.g. health products.

The rural consumer is now exhibiting an increasing propensity for insurance products. A research

conducted exhibited that the rural consumers are willing to dole out anything between Rs 3,500

and Rs 2,900 as premium each year. In the insurance the awareness level for life insurance is the

highest in rural India, but the consumers are also aware about motor, accidents and cattle

insurance. In a study conducted by MART the results showed that nearly one third said that they

had purchased some kind of insurance with the maximum penetration skewed in favour of life

insurance. The study also pointed out the private companies have huge task to play in creating

awareness and credibility among the rural populace. The perceived benefits of buying a life policy

range from security of income bulk return in future, daughter's marriage, children's education and

good return on savings.

There is an evolutionary change in the technology that has revolutionized the entire insurance

sector. Insurance industry is a data-rich industry, and thus, there is a need to use the data for trend

analysis and personalization.

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With increased competition among insurers, service has become a key issue. Moreover, customers

are getting increasingly sophisticated and tech-savvy. People today dont want to accept the current

value propositions, they want personalized interactions and they look for more and more features

and add ones and better service

The insurance companies today must meet the need of the hour for more and more personalized

approach for handling the customer. Today managing the customer intelligently is very critical for

the insurer especially in the very competitive environment. Companies need to apply different set

of rules and treatment strategies to different customer segments. However, to personalize

interactions, insurers are required to capture customer information in an integrated system.

With the explosion of Website and greater access to direct product or policy information, there is a

need to developing better techniques to give customers a truly personalized experience.

Personalization helps organizations to reach their customers with more impact and to generate new

revenue through cross selling and up selling activities.

To ensure that the customers are receiving personalized information, many organizations are

incorporating knowledge database-repositories of content that typically include a search engine andlet the customers locate the all document and information related to their queries of request for

services. Customers can hereby use the knowledge database to manage their products or the

company information and invoices, claim records, and histories of the service inquiry. These

products also may be able to learn from the customers previous knowledge database and to use

their information when determining the relevance to the customers search request.

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CHAPTER 3

ORGANISATIONAL PROFILE

3.1 INTRODUCTION

HDFC Life, one of India's leading private life insurance companies, offers a range of individual

and group insurance solutions. It is a joint venture between Housing Development Finance

Corporation Limited (HDFC), India's leading housing finance institution and Standard Life plc, the

leading provider of financial services in the United Kingdom.

HDFC Ltd holds 72.37% and Standard Life(Mauritius Holding) Ltd. holds 26.00% of equity in the

joint venture, while the rest is held by others.

HDFC Life's product portfolio comprises solutions, which meet various customer needs such as

Protection, Pension, Savings, Investment and Health. Customers have the added advantage of

customizing the plans, by adding optional benefits called riders, at a nominal price. The company

currently has 25 retail and 9 group products in its portfolio, along with 10 optional rider benefits

catering to the savings, investment, protection and retirement needs of customers.

HDFC Life continues to have one of the widest reaches among new insurance companies with

about 500 branches in India touching customers in over 900 cities and towns. The company has

also established a liaison office in Dubai. HDFC Life has a strong presence in its existing markets

with a strong base of Financial Consultants.

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HDFC Life is a strong, financially secure business supported by two strong and secure promoters -

HDFC Ltd and Standard Life. HDFC Ltd's excellent brand strength emerges from its unrelenting

focus on corporate governance, high standards of ethics and clarity of vision. Standard Life is a

strong, financially secure business and a market leader in the UK Life & Pensions sector.

3.2 ABOUT THE COMPANY

3.2.(a) HDFC Limited

HDFC Limited, India's premier housing finance institution has assisted more than 3.8 million

families own a home, since its inception in 1977 across 2400 cities and towns through its network

of over 298 offices.

It has international offices in Dubai, London and Singapore with service associates in Saudi

Arabia, Qatar, Kuwait and Oman to assist NRI's and PIO's to own a home back in India. As of

March 2011, the total asset size has crossed more than Rs. 1, 32,727crores including the mortgage

loan assets of more than Rs.1, 17,126 crores. The corporation has a deposit base of over Rs. 24,625

crores, earning the trust of nearly one million depositors. Customer Service and satisfaction has

been the mainstay of the organization. HDFC has set benchmarks for the Indian housing finance

industry. Recognition for the service to the sector has come from several national and international

entities including the World Bank that has lauded HDFC as a model housing finance company for

the developing countries. HDFC has undertaken a lot of consultancies abroad assisting different

countries including Egypt, Maldives, Mauritius, and Bangladesh in the setting up of housing

finance companies.

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A pioneer and leader in housing finance in India, since inception, HDFC has assisted more than 39

Lakh customers to own a home of their own, through cumulative housing loan approvals of over

Rs. 3.73 trillion and disbursements of over Rs. 3.02 trillion as at March 31, 2011.

HDFC's unrelenting focus on Corporate Governance, high standards of ethics and clarity of vision,

percolate through the organization. Trust, Integrity, Transparency and Professional Service are the

important pillars of the brand HDFC and most importantly, people - both employees and customers

- are its brand ambassadors.

HDFC's specialist team of over 1,600 trained and experienced professionals follows a 'single-

window concept' for providing smooth and value added services at all stages. The team guides the

customers right through the entire process of property purchase - be it property search assistance,

technical support prior to finalizing the property, legal advice on property related documentation,

personalized home loan counselling or providing tailor-made repayment options to suit the

customer's specific requirements.

HDFC also has a robust deposits mobilization programme. HDFC has been able to mobilize

deposits from over 10 lakh depositors. Outstanding deposits grew from Rs. 1,458 crores in March

1994 to Rs 24,625 crores in March 2011. In addition, HDFC has received 'AAA' rating for its

Deposit products for highest safety from both CRISIL and ICRA for seventeen consecutive years.

Our brand has managed to set a new standard in the Indian life insurance communication space.

We were the first private life insurer to break the ice using the idea of self-respect instead of 'death'

to convey our brand proposition (Sar Utha Ke Jiyo). Today, we are one of the few brands that

customers recognize, like and prefer to do business. Moreover, our brand thought, Sar Utha Ke

Jiyo, is the most recalled campaign in its category. At HDFC, 'Corporate Social Responsibility' has

always been an evolving concept, akin to its 'learning by doing' philosophy.

As part of its social objectives, HDFC has always endeavoured to contribute to economic

development and social upliftment of the weaker sections of society and has professionally

nurtured each of its social initiative as an investment.

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3.2.2 STANTARD LIFE PLC

Established in 1825, Standard Life Plc. is a leading provider of long term

3.2.3 The HDFC Advantage

Pioneers of Housing Finance in India with over 34 years lending experience.

Vast network of over 304 interconnected offices which includes 3 international offices.

Most experienced and empowered personnel to ensure smooth & easy processing.

Counselling and advisory services for acquiring a property.

Flexible loan repayment options.

Free & safe document storage.

Savings and investments to around 6 million customers worldwide. Headquartered in Edinburgh,

Standard Life has around 9,000 employees across the UK, Canada, Ireland, Germany, Austria,

India, USA, Hong Kong and mainland China. The Standard Life group includes savings and

investments businesses, which operate across its UK, Canadian and European markets; corporate

pensions and benefits businesses in the UK and Canada; Standard Life Investments, a globalinvestment manager, which manages assets of over 157bn globally; and its Chinese and Indian

Joint Venture businesses. At the end of April 2011 the Group had total assets under administration

of 198.4bn. Standard Life plc is listed on the London Stock Exchange and has approximately 1.5

million individual shareholders in over 50 countries around the world.

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In March 2007 the company announced it would cut 1,000 jobs in an attempt to save an additional

100 million per year in costs.

One month later it was highlighted in the company's annual report that three of Standard Life's top

executives (Sandy Crombie, Keith Skeoch and Trevor Matthews) were awarded more than 5

million in pay. A Standard Life spokesman defended the awards, citing the leadership's efforts in

turning round the company's fortunes.

3.3 VISION

To be most successful and admired life insurance company, which means that we are the most

trusted company, the easiest to deal with, offer the best value for money, and set the standards in

the industry.

3.4 VALUES

Values that we observe while we work:

Integrity

Innovation

Customer centric

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People Care "One for all and all for one"

Team work

Joy and Simplicity

3.5 BUSINESS OBJECTIVES

Our primary objective is to enhance insurance in the country through the provision of insurance in

a systematic and professional manner, and to promote insurance ownership. We aim to increase the

flow of resources to the insurance sector by integrating the insurance finance sector with the

overall domestic financial markets.

3.6 HDFCS GOALS

Develop close relationships with individual households.

Maintain our position as the premier insurance and finance institution in the country.

Transform ideas into viable and creative solutions.

To grow through diversification by gaining leverage from our existing client base.

To nurture the values and ethos of brand HDFC through all its subsidiaries and associate

companies.

3.7 GROWTH STRATEGIES

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Increase the return on equity each year by 1 percentage point in order to maximize

shareholder value.

Maintain gross Non-Performing Assets (NPAs) below 1%.

Improve operational efficiency by consistently bringing down the cost to income ratio.

3.8 MANAGEMENT STRUCTURE

34

CEO

Chief financialofficer

Alternate channeland group life

Chief Medicalofficer

VPAdministration,

Implementationand control

Chief Manager

Finance andcontrol

Sr.ManagerUnderwriting

Individual andgroupVPActuarial

Companyaccountary

Sr.ManagerComplianceSr.ManagerInvestment

VPGroup Life

Chief ManagerAlternate channel

Assistant VPHuman Resource

Head clientServiceHead TrainingVPInformation

VP Advertising

andCommunication

Chief Manager

ProductDevelopment


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3.9 ORGANIZATION STRUCTURE IN A BRANCH

36

BRANCH MANAGER

Business DevelopmentManager

Operational Officer


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Fig.3.9 Organisation Structure

Branch manager is the head of the branch under which the whole branch office is dealt with. Next

to the branch manager is the business development managers of 1 or 2 of them. The sales

development manager falls under business development manager is accountable to branch manager

only below the business development manager and sales. Development manager are the financial

consultants who are not the employees of the company but the agents who give the business.

Operational officer and the agency support officers are the staff members employed to maintain the

inner transactions and to keep account of all the receipts and payments. Even they are accountable

to the branch manager.

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Sales Development Manager Agency Support Officers

Financial Consultants


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3.10 ASSOCIATE COMPANIES

HDFC Limited

HDFC Bank

HDFC Mutual Fund

HDFC Sales

HDFC ERGO General Insurance

HDB Financial Services

HDFC Securities

HDFC RED

HDFC Trustee Company Ltd.

GRUH Finance Ltd.

HDFC Developers Ltd.

HDFC Property Ventures Ltd.

HDFC Ventures Trustee Company Ltd.

HDFC Investments Ltd.

HDFC Holdings Ltd.

Credit Information Bureau (India) Ltd

3.11 BANCK ASSURANCE PARTNERS

HDFC BANK

SARASWAT BANK

INDIAN BANK

3.12 CORPORATE GOVERNANCE

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The Corporate Governance Policy provides the framework under which the Board of Directors

operates. It includes its corporate structure, culture, policies and the manner in which it deals with

various stakeholders. The governance policies address the responsibilities, authority and

administration of the Board of Directors. The policies also include the responsibilities of the

Principal Officer and define the reporting relationships. Timely and accurate disclosure of

information regarding the financial situation, performance, board constitution, ownership of the

company etc. is an important part of corporate governance. Corporate governance arrangements

are those through which an organisation directs and controls itself and the people associated with

it.

3.13 CORPORATE SOCIAL RESPONSIBILITY

HDFC Life has always believed that establishing a strong and ethical foundation is an essential

prerequisite for long-term sustainable growth. We focus on maintaining the quality of our business

and creation of long-term value for policy holders and stakeholders. For us, Corporate

Responsibility comes first.

Swabhimaan, HDFC Life Corporate Social Responsibility (CSR) initiative- aims to play a positive

role by contributing towards the advancement of society and conservation of environment while

engaging with our stakeholders. The objective of Swabhimaan is to contribute to improve and

enhance the quality of life of communities in which the company operates thereby helping to create

an equitable society. HDFC Life is committed to being a socially responsible corporate and its

CSR is not only governed by a formal policy and framework but also, all causes/projects are

supported by active involvement from employees.

3.14 MILESTONES

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Received the PCQuest Best IT Implementation Award 2008 for Consultant Corner, the

applications for its financial consultants, providing centralized control over a vast

geographical spread for key business units such as inventory, training, licensing, etc.

Sar Utha Ke Jiyo was honoured as 'Among India's 60 Glorious Advertising Moments. The

advertisements of the company were ranked 6th amongst 'The 10 most effective

Advertisements' in September 2007.

HDFC Standard Life's advertising created high awareness for the brand and bagged 2

silver and 1 bronze awards at the ADFEST 2007 National Awards organised by theAdvertising Agencies Association of India (AAAI). The 3 awards are the highest won by

any single brand in the financial services business (including banking, mutual fund,

insurance and other financial services).

Ranked 29th most trusted Indian Brands amongst the Top 50 Service Brands of 2006

according to a study conducted by the Brand Equity Economic Times, the leading business

publication of India.

3.15 ACHEIVEMENTS

1. HDFC Life was awarded with 'Yuva Unstoppable Corporate Icon Award' from Dr. APJ

Kalam in Sept'2010.

2. HDFC Life was awarded the 'Yuva Hero Award' in July 2011 for contribution towards the

upliftment of lesser privileged children.

3. Won the 'Most innovative fundraising campaign' award during the India Giving Challenge

2010.

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4. Won the 2nd 'Best Marketing Campaign' and 2nd 'Most Innovative Fundraising Campaign'

awards during the India Giving Challenge 2011.

3.16 AWARDS AND ACCOLADES

Financial Leadership Awards 2012

Bloomberg UTV Financial Leadership Awards have been instituted to acknowledge extraordinary

contribution of Indias financial leaders and visionaries. The best in league winners have beenselected by an eminent Jury on the basis of a detailed methodology, process validation and

research conducted by ICRA. The award was presented to HDFC Life by Union Finance Minister

Pranab Mukherjee

Celent Model Insurer Global Award

HDFC Life has been selected, among the 23 Insurance Companies Worldwide, as a Model Insurer

2012, for the use of Enterprise Wide Learning via the Internet by Celent USA. HDFC Life has also

won the Celent Model Insurer Asia 2012 award.

5th Loyalty Awards 2012 - Insurance Sector (Life)

These awards recognize Customer loyalty efforts of Companies across various sectors. The Theme

of this year's Summit is "Driving Loyalty through Customer Experience Management".

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Century International Quality ERA Award

Criteria on which the Century International Quality ERA is based:

1. Excellence in Leadership and Business Management,

2. Quality and Excellence.

3. Business and Brand name Prestige.

4. Technology, Innovation and Expansion.

My FM Star of the Industry Awards Excellence in Life Insurance

HDFC Life won the Silver award for Excellence in Life Insurance. The Stars of the Industry

Awards recognises individual and corporate excellence across the banking and financial services

sector. These Awards were decided by eminent Jury comprising senior professionals. The Awards

were given away in 17 categories.

3.17CHALLENGES FACED

The key challenge is to reduce the turnaround time and improve their speed to market their

products.

Distribution Channel pressures and emerging consumer demands for mass customization

and hybrid products are moving rapid.

Understanding the science of multi-distribution channel management and developing a

robust field footprint will remain the most distinctive competitive challenge.

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CHAPTER 4

DATA ANALYSIS & INTERPRETATION

1. Source of media of information about the new insurance products

The below table exhibits the different sources of information about the new insurance

products in India.

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SI. No Type of media No. of

Respondents

Percentage

1 Television 7 23

2 Other electronic media 2 7

3 Newspapers 5 17

4 Magazines 4 13

5 Outdoor advertising 12 40

Total 30 100

Table 1: Source of media of information about the new insurance products

Fig. 1 Source of medium of information.

INFERENCE

Among all sources of media outdoor advertising is growing significantly and has become the

fastest communication media to the public, so 40% of the population opted for outdoor media. In

order to create more awareness among the public about outdoor advertising it can be done in a

more effective manner using certain creative techniques.

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2. Form of advertising

The below table gives us a clear picture about what form of advertising is preferred by the

consumers is it still image or moving image.

SI. No Form of

advertising

No. of

Respondents

Percentage

1 Still image 17 57

2 Moving

image

13 43

Total 30 100

Table 2. Form of advertising

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Fig. 2 Forms of advertising

INFERNCE

The above table suggests that the consumers prefer a still image advertisement over a moving

advertisement as it catches more attention for them. 57% of the population prefer still image rather

than moving image which is preferred 43% as they consider still image to be an attention seeker.

3. Advertising is a source of

The table below explains us about what the consumers look out in an advertisement is it

only viewed for entertainment purpose or is it viewed to get sum information.

SI. No Advertising is a source

of

No. Of

Respondents

Percentage

1 Information 14 47

2 Entertainment 16 53

Total 30 100

Table 3. Advertising is a source

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Fig. 3 Advertising is a source of

INFERENCE

57% of the consumers from the survey conducted suggest that advertisement is just for

entertainment and 47% of the consumers say that they rarely look out for information in

advertisement.

4. Outdoor advertising provides information about insurance products

The table explains us about how many consumers think that outdoor advertisement

provides the consumers information about the insurance product.

SI. No Information No. Of

Respondents

Percentage

1 Yes 25 83

2 No 5 17

Total 30 100Table 4. Information through outdoor advertising

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Fig. 4 Information through outdoor advertising

INFERENCE

The above table as well as the graph explains us that the majority of the consumers i.e. 83% of

them agree to the fact that outdoor advertisement provides information regarding the insurance

products to them. The remaining 17% disagree with the fact that outdoor advertisement provides

information.

5. Presence of any celebrity affects your opinion about the product.

On the basis of the above statement and the table below it explains us about influence on

the buying decision of a consumer based on the presence of the celebrity.

SI. No Information No. of

Respondents

Percentage

1 Yes 23 77

2 No 7 23

Total 30 100

Table 5. Presence of celebrity & buying decision

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Fig. 5 Presence of celebrity

INFERENCE

On the basis of the survey conducted it show that the presence of a celebrity does have an impact

on the consumers buying process of a product. 77% of the consumers do go for buying the

product based on the presence of the celebrity. The rest i.e.23% of the consumers does not get

influenced by the presence of any celebrity.

6. Presence of social issues affects your opinion about the product.

The table below explains us whether the presence of any social issue would affect the

consumers opinion about the product.


Respondents

Percentage

1 Yes 15 50

2 No 15 50

Total 30 100

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Table 6. Presence of social issue & buying decision

Fig. 6 Presence of social issues

INFERENCE

According to the above table and graph we can analyze that there is an equilibrium level of

response from the consumers for the above posted question. 50% of the consumers agree to the

fact that presence of social issue does affect them in their buying decision & 50% disagree with the

statement made above.

7. Advertising helps in increasing sales of any product

The below table makes us understand about the role of advertisement for increase in sales

of insurance products.


Respondents

Percentage

1 Yes 21 70

2 No 9 30

Total 30 100

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Table 7. Increase in sale through advertising

Fig. 7 Increase in sale due to ads

INFRERNCE

70% of the consumers do believe that advertising is a major contributor for having a good amount

of sales for a particular product and in this particular case insurance policies are the products

whose sales according to the survey increases based on affective advertisement. The rest 30%

dont agree that advertising is the key for increase in sales.

8. Advertising through outdoor media is reaching people.

Table below explains us whether the advertising through outdoor media is reaching people

or no.


Respondents

Percentage

1 Yes 17 57

2 No 13 43

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Total 30 100

Table 8. Outdoor advertising reaching people

Fig.8 Outdoor ads reaching people

INFRERNCE

The above table indicates that 57% of the consumers think advertising made through outdoor

media is effective in reaching people and helps them to know about the new insurance product

launched in the market.

9. Future hold for outdoor advertising

The below table explains about the future of outdoor advertising India.

SI. No Level of

satisfaction

No. of

Respondents

Percentage

1 Very good 7 23

2 Good 13 43

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3 Ok 5 17

4 Bad 3 10

5 Very bad 2 07

Total 30 100

Table 9. Future of outdoor advertising

Fig. 9 Future of outdoor advertising

INFRERNCE

From the above table 43% of the consumers suggest that the future for the outdoor advertising is

very good and they think that the scope for it can be improved and be much better. 23% of them

say the future for it is good and the remaining suggest that it is ok, bad & very bad.

10. Insurance companies are successful in delivering their products to customersthrough

outdoor advertising.

The below table explains us whether the insurance companies are successful in delivering

products to the customers through outdoor advertising.


Respondents

Percentage

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1 Yes 12 40

2 No 18 60

Total 30 100

Table 10. Product delivering through outdoor media.

Fig.10 Product delivering through outdoor media

INFRERNCE

We can analyze from the above table that the consumers do not think that the insurance companies

are able to deliver their product by outdoor advertising to the needy. 60% 0f the consumers say that

the insurance companies need to improve in its advertisement strategy in so that the product gets

delivered to the consumers.

11. Scope for outdoor advertising for insurance companies

The below table and graph explains us about the scope of outdoor advertising for the

insurance companies .

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Respondents

Percentage

1 Yes 22 73

2 No 8 27

Total 30 100

Table 11. Scope of outdoor advertising

Fig. 11 Scope of outdoor advertising

INFRERNCE

The scope for the insurance companies with regard to the outdoor advertising aspect of their

product is tremendous (73%), the companies can do a lot more of outdoor advertising in order to

promote their product and make them reach to the consumer.

12. Have you taken any insurance policy/product, influenced by outdoor advertising.

The table below explains us about the influence of outdoor advertising on the buying

decision of the consumer of an insurance policy or product.

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Respondents

Percentage

1 Yes 17 57

2 No 13 43

Total 30 100

Table 12. Influence of outdoor advertising

Fig. 12 Influence of outdoor advertising

INFRERNCE

Outdoor advertising has influenced major percentage of the population (57%) in purchasing the

insurance products and they agree that there has been a certain level of influence on them. The

remaining 43% of the consumers disagree that the outdoor advertising influences them on their

decision making process.

13. Insurance companies increase their sale through outdoor advertising.

The table below explains in terms of percentage and respondents regarding the increase of

sales for the insurance companies through outdoor advertising.

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Respondents

Percentage

1 Yes 24 80

2 No 6 20

Total 30 100

Table 13. Increase in sale through outdoor advertising

Fig.13 Increase in sale through outdoor advertising

INFRERNCE

Majority of the consumers (80%) agree to the fact that the insurance companies can increase their

sales through outdoor advertising as they tend to have a thought process that due to effective

outdoor advertising the sales can be high for the insurance companies. 20% dont agree with the

fact & they say outdoor advertising is not the key for the increase of sales for the insurance

companies.

14. Outdoor advertising plays an important role in insurance sector.

The table below explains about the role played by outdoor advertising in the insurance

sector.

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Respondents

Percentage

1 Yes 23 77

2 No 7 23

Total 30 100

Table 14. Role of outdoor advertising in insurance sector

Fig.14 Role of outdoor advertisement in insurance sector

INFRERNCE

73% of the consumers do think that an effective outdoor advertising by the insurance companies

plays a major role in the insurance sector as they help them in increasing their sales & also creates

awareness about their newly launched products.

15. Your perception on outdoor advertising.

The below table describes about the individuals perception on outdoor advertising.

SI. No Level of

satisfaction

No. of

Respondents

Percentage

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1 Very good 7 23.3

2 Good 13 43.4

3 Ok 7 23.3

4 Bad 3 10

5 Very bad 0 0

Total 30 100

Table 15. Perception of outdoor advertising

Fig. 15 perception of outdoor ads

INFRERNCE

The perception of the consumers toward outdoor advertising is good (43.4%) but they also do

indicate that it can get better for the betterment of the sales and awareness of the products related

to insurance. The rest indicate that it is good, ok & bad which tells us that the scope for

improvement is more for the insurance companies in outdoor advertising.

16. You generally buy products that are advertised.

The table below gives us an idea about how many consumers buy the products that are

advertised.

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Respondents

Percentage

1 Yes 16 53

2 No 14 47

Total 30 100

Table 16. Purchase of advertised products

Fig. 16 Purchase of advertised products

INFRERNCE

Consumers tend to buy the products which are been advertised by the companies and from the

above table it is shown that 53% of the consumers do purchase the products that are advertised.

The rest 47% of the population prefer not to buy products that are advertised as they do not rely on

it.

17. The impact of Outdoor advertising on Customers purchases or purchasing of an

insuranceproduct.

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The table below explains about the impact of outdoor advertising on the purchase of an

insurance product.


Respondents

Percentage

1 Yes 18 60

2 No 12 40

Total 30 100

Table 17. Impact of outdoor ads on purchase

Fig.17 Impact of outdoor ads on purchase

INFRERNCE

60% of the consumers indicate that there is an impact of outdoor advertising over them while they

go for purchasing of a particular insurance product but also does it indicate that there is a huge

scope for the outdoor advertising to improve.

18. Difference by advertising through outdoor and local media/newspapers.

The table explains about the difference by advertising through outdoor & local media

/newspaper and what the consumers prefer.

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Respondents

Percentage

1 Yes 20 67

2 No 10 33

Total 30 100

Table 18. Preference of outdoor advertising v/s local media

Fig.18 Difference between outdoor & local media

INFRERNCE

67% of the consumers do believe that there is a difference between advertising done through the

local media or newspaper and advertising done outdoor. They prefer more of outdoor advertising

in comparison to the other medium of advertising. 33% of the consumers prefer local media over

outdoor advertising.

19. Most effective advertising medium for insurance companies

The table explains us about the most effective medium of advertising for the insurance

companies to communicate their product to the consumers.

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Respondents

Percentage

1 Direct advertising 4 13

2 Outdoor advertising 12 40

3 TV Commercials 7 23

4 Print Media 5 17

5 Others 2 7

Total 30 100

Table 19 Effective medium of advertising

Fig.19 Effective advertising medium

INFRERNCE

Consumers attention is gathered through outdoor advertising in comparison to the other means of

advertising and it does let us known by the percentage calculated i.e. 40% of the consumers

suggest that outdoor advertising is more effective.

20. Decision making depends on outdoor advertisements.

The below table explains about the percentage of decision making which is dependent on

the outdoor advertising for the insurance products.

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Respondents

Percentage

1 Completely 7 23

2 To an extent 21 70

3 Not at all 2 7

Total 30 100

Table 20. Dependency of decision making on outdoor advertising

Fig. 20 Decision making based on outdoor ads

INFRERNCE

Consumer indicate that to an extent (70%) outdoor advertising plays a role in the decision making

process as they mention that its due to the outdoor advertising that they get to know about the

product and then enquire about it in depth if interested.

CHAPTER 5

FINDINGS, CONCLUSION & SUGGESTIONS

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5.1 FINDINGS

40% of the consumers think that the information about an insurance product is provided by

the outdoor advertising medium.

57% of the consumers prefer still image rather than moving image.

53% of consumers agree to the fact that advertising is only looked at as an entertainment &

not to gain information from it.

83% i.e. the majority of the population size agree that outdoor advertising gives

information about the insurance product.

77% of the consumers agree that presence of a celebrity does have an effect on their

opinion towards the product. 70% of the consumers agree that advertising helps in increasing the sales of the insurance

product.

57% consumers think that advertising through outdoor media is reaching people.

43% consumers suggest that the future for outdoor advertising is good.

60% of the consumers say that the insurance companies or not at delivering products

through outdoor advertising.

73% of the consumers say that there is a tremendous scope of outdoor advertising for the

insurance companies.

57% consumers got influenced by outdoor advertising and hence forth opted in purchasing

the insurance products.

Majority of the population i.e.80% of consumers think that the insurance companies can

increase their sales through outdoor advertising.

77% of customers say that outdoor advertising plays a major role in the insurance sector.

43.4% of the sample size has got a good perception towards outdoor advertising.

53% of the consumers say yes that they do buy products which are advertised.

60% of the consumers agree to the fact that outdoor advertising as an impact on their

buying decision.

67% of the consumers find difference between outdoor advertising and local media or news

paper.

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40% of the consumers feel that the most effective medium of advertising for an insurance

company is outdoor advertising.

70% of the consumers say that to an extent their decision making is dependent on outdoor

advertising.

5.2 CONCLUSION

In this report percentage analysis is one particular tool which was implemented to get to know

about the significance of outdoor advertising of HDFC Life. Significance of outdoor advertising

includes the following parameters such as source of information medium, role of outdoor

advertising in the insurance sector, increase of sales for the insurance sector due to outdoor

advertising, effective medium of advertising for the insurance sector etc. All the parameters are

considered by taking the opinion of the consumers through questionnaire method.

By considering all the parameters the significance of outdoor advertising is good for HDFC Life

but there is a huge scope for them to improve and have more of outdoor advertising to be done in

the country in order to create awareness about the product they offer and would also help them in

increasing their level of sales. As the sales for HDFC Life is already good it is required for them to

have a more emphasis on their outdoor advertising strategy to have a better growth in the field of

insurance as by the survey conducted above clearly explains us that there should be more emphasis

on outdoor advertising as it gathers more attention and in turn helps HDFC Life in their growth.

Also providing as much as possible information through outdoor advertising would also be

beneficial for the company as the consumers approaching them would have a clear idea about what

kind of product they want.

It in turn helps the company in its growth as it creates more awareness about what kind of product

its offering to the consumers which would make the consumers job easier. As already mentioned

in the suggestions that the dependency level of HDFC Life is more in outdoor advertising it would

help them to grow if the try implementing these above mentioned measures.

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5.3 SUGGESTIONS

More emphasis is to be given on advertising of the insurance products and the company

should give importance about advertising the product through outdoor advertising which would

gather attention of the consumers.

Based on the survey conducted the consumers suggest that the insurance company should

think about advertising through outdoor medium as they find scarcity of outdoor advertisement of

the insurance products and hence forth the company has too look forward on having more outdoor

advertisements.

As the dependency of HDFC Life on outdoor advertisement is more they should think of a

strategy where they can go ahead in promoting their product through outdoor medium as it is one

of the best means to reach their target audience which would help them to have a growth.

REFERENCES AND BIBILOGRAPHY

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TEXTBOOKS

Philip Kotler, (13th Edition), Marketing Management, A South Asian Perspective.

Outdoor Advertising Magazine.

WEBSITES:

www.google.com

www.wikipedia.com

www.hdfclife.com

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ANEXURE

QUESTIONNAIRE

Name Gender Occupation Contact No. Location

1. From where do you get information about the new insurance products?

a) Television & other electronic media

b) News papers & Magazines

c) Outdoor advertising

2. Which form of advertising do you like more?

a) Still image

b) Moving image

3. For you advertising is a source of?

a) Information

b) Entertainment

4. Do you think outdoor advertising provides any information about the insurance products?

a) Yes

b) No

5. Does presence of any celebrity affect your opinion about the product?

a) Yes

b) No

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6. Does presence of social issues affect your opinion about the product?

a) Yes

b) No

7. Do you think advertising helps in increasing sales of any product?

a) Yes

b) No

8. Do you think advertising through outdoor media is reaching people?

a) Yes

b) No

9. What do you think the future hold for outdoor advertising?

a) Very Good

b) Good

c) Bad

d) Very Bad

10. Do you think insurance companies are successful in delivering their products to

customersthrough outdoor advertising?

a) Yes

b) No

11. Do you think there is a scope for outdoor advertising for insurance companies?

a) Yes

b) No

12. Have you taken any insurance policy/product, influenced by outdoor advertising?

a) Yes

b) No

13. Do you think insurance companies can increase their sale through outdoor advertising?

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a) Yes

b) No

14. Do you think outdoor advertising plays an important role in insurance sector?

a) Yesb) No

15. What is your perception on outdoor advertising?

a) Good

b) Neutral

c) Bad

16. Do you generally buy products that are advertised?

a) Yes

b) No

17. Does outdoor advertising has any impact on your purchases or purchasing of an

insuranceproduct?

a) Yes

b) No

18. Do you find any difference by advertising through outdoor and local media/newspapers?

a) Yes

b) No

19. What do you think is the most effective advertising medium for insurance companies?

a) Outdoor Advertising

b) T.V Commercials

c) Print Media

d) Direct Advertising

20.What is the percentage of your decision making depends on outdoor advertisements?

a) Completely

b) To an extent

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c) Not at all

Documents

Avi Report Final (2) (2)