Role of Advertising in Growth of Insurance

8/13/2019 Role of Advertising in Growth of Insurance

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ROLE OF ADVERTISING IN GROWTH OF BANKCOMPARATIVESTUDY ICICI PRUDENDIAL &HDFC STANDARD LIFE INSURANCE

BACHELOR OF COMMERCE

BANKING & INSURANCE

SEMISTER VI

ACADEMIC YEAR 2008-09

Su!"##$% '

SWAPNA VISHWANATH SHETTY

R()) N(* +,

S*K*SOMAIYA COLLEGE OF ARTS' SCIENCE & COMMERCE

VIDYA NAGARI' VIDYAVIHAR

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ROLE OF ADVERTISING IN GROWTH OF BANKS COMPARATIVE

STUDY ICICI PRUDEND STANDARD LIFE INSURANCE

BANKING & INSURANCE

SEMISTER VI

I P./#".) Fu)"))!$# ( #1$ /$u"/$!$# (/ #1$ A3./% ( D$4/$$ (

B.51$)(/ ( C(!!$/5$ B.6"4 & I7u/.5$

Su!"##$% '

SWAPNA VISHWANATH SHETTY

R()) N(* +,

S*K*SOMAIYA COLLEGE OF ARTS' SCIENCE & COMMERCE

VIDYA NAGARI' VIDYAVIHAR*

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TABLE OF CONTENTS

PART:1 INSURANCE SECTOR

1.1 Brief History 16 1.2 Insurance Sector 17 1.3 IRDA 19

1.4 Players &ar!et S"ares 2#

PART:2 Advertising Boosting Insurance Sector

2.1 Intro$uction 232.2 Insurance A$s %"anin nor's 262.3 %"anin A$(ertisin & Pro'otional )or's 29

2.4 A$(ertise'ent %o$e *y IRDA 4#PART 3: ICICI PRUDENTIA AND !D"C STANDARD

I"E INSURANCE

3.1 History 423.2 +"ins ,ou Di$n-t no/ A*out I%I%I Pru$ential 493.3 +"e a!in 0f In$ia )o1 13.4 A*out HD% 3. A$ By HD% 6

PART:# SUR$E% TO &NO' T!AT E(CESSI$EAD$ERTISE)ENT DIUTED T!E BRAND CAED

!D"C STANDARD I"E INSURANCE

RECO))ENDATION 6

CONCUSION 66

BIBO*RAP!% 67

Ac+no,-edge.ent

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Durin +"e Perse(erance 0f +"is Proect5 I as Suorte$ By Different Peole5 "ose

)a'es If )ot entione$ oul$ Be Inconsi$erate 0n y Part. I oul$ 8i!e +o :ten$

y Sincere ;ratitu$e An$ Areciation +o Prof.Aarna ain "o Initiate$ e Into +"e

Stu$y 0f


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More than 1,500 messages a day!

Tat4s one esti.ate o o, .an0 advertise.ents are ai.ed at te average

consu.er5 It 6ogg-es te .ind7

Suose it /ere only a tent" of t"at. +"e i$ea of e(en 1# 'essaes ?e(ery $ay@ is "ar$ to

co're"en$. It is clear t"at "o/ an$ /"enan$ "o/ oftenyou lace your 'essae is

oin to 'a!e a $ifference.

I'aine a $ay in t"e life of an a(erae ur*an In$ian 'ale li(in in an aart'ent *y "i'self.

et us see o, advertise.ent in-uence eo-e

!e ,a+es u ear-0 in te .orning to te sound o a i 8 tec a-ar. ,ic e as

recent-0 6ougt9 tan+s to te ad o an a-ar. c-oc+ e seen on T$5

!e u.s out o 6ed and s,itces on te radio to ear so.e good .usic on ")

unctuated ,it so.e ne,s ead-ine5

Te T$ is ten s,itced on to te canne- on Aero6ics ,i-e e ,o+s out ,it tose

s-i. ,o.en ,o ro.ise a se;0 0si


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!e dases o to ,or+ (whi..ing ast osters, #ill#oards, hoardings all #om#arding

him with different messages, schemes, offers etc)&)

!is 6us and train ourne0 are never 6oring as e a-,a0s carries te -atest >India

Toda0 4 to +ee i. a6reast o te -atest aenings5

!e is on te ie-d ,or+ing ,en e ee-s thirsty #ut he cannot ma%e u his mind

whether to hae a $hums u" as he is grown u, or to hae a /esi" #ecause he

wants to lie young foreer any way he decides to lay safe and hae a isleri"

!is .o6i-e sudden-0 6ues5 It4s a rogra..ed ca--9 re.inding o is date5 !e

rea-ises e is -ate5

At te soing center c-ose 60 e 6u0s is date a card (an 2rchies 3"m sorry

Card" of course, #ecause no one can say it #etter than 2rchies&)

O6vious-0 is date reacts as se is e;ected to 60 giving i. a ug =ust -i+e te ad@5

Ater te great date te0 return o.e5

Ater so.e T$ snac+ing9 e sets te .ood ,it so.e sot .usic9 sruces i.se-

(any guesses with what4 yes with the seiest, irresisti#le, 267" deo sray&)

And te -igts go out5 !e09 ,ait a second I orgot to .ention te e;tra sot5

>&ur-on4 .attress e ad recent-0 urcased tan+s to te secia- Di,a-i oer5

Design o stud0

In to$ay-s 'o$ern an$ fast /orl$ Insurance is ainin a lot of i'ortance. +"is o*(iously

'eans t"at t"e Insurance oraniations are also roserinC t"us t"ere is a lot of scoe

e'erin in t"is sector.

Data "as *een researc"e$ fro' t"e follo/in /ays.

15 Pri.ar0 Researc ? Surve0

25 Secondar0 researc 8 Boo+s9 .againes9 IRDA ourna-s9 Ne,saers9

Internet5

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O6ectives 6eind te roect: ?

1@ +o et an insi"t of "o/ a$(ertisin *oost insurance sector.

2@ +o 'a!e an co'arati(e analysis of I%I%I ru$ential & HD% Stan$ar$ life

insurance3@ A sur(ey "as *een $one to i$entify t"at "as o(er a$(ertise'ent ero$e$ *ran$

calle$5


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Introduction

S.i-e -ease9 tis is an insurance ad

DSPI+ ro/in a$ sen$s5 t"e insurance sector "as larely stuc! to i'aes of "ay

fa'ilies5 carefree coules an$ cute *a*ies. But at least t/o layers in life insurance

+ataAI; an$ AllianBaa "a(e *uc!e$ t"e tren$ an$ are ta!in a /itty5 al'ost

co'ical5 route to tout t"eir ro$ucts.

+ataAI;Fs rint ca'ain for )ir(ana5 its ensions olicy5 "as *ri"tly coloure$

illustrations an$ con(eys t"e t"ou"t t"at /"ile ot"er t"ins in life cannot *e uarantee$ li!e *eco'in %0 t"e olicy uarantees a 1# er cent a$$ition on t"e su' assure$.

+"e olicy /as launc"e$ in Ganuary across 12 cities5 an$ t"e first "ase of t"e a$

ca'ain5 /it" 7 cc rint a$s an$ out$oor in !ey cities5 /ill run till Gune. Since t"is

co''unication /as ai'e$ at /or!in eole in t"e ae rou of 3#4# years5 it /as

necessary to sea! in a tone an$ lanuae t"ey /oul$ e'at"ise /it" t"e co''unication

"a$ to *e 'o$ern5 youn5 aroac"a*le5 an$ yet con(ey t"e serious ro$uct offerin.

+ataAI; /as a'on t"e first to launc" a ro$uct /it" a $istinct >SP a uarantee$ 1#

er cent *onus5 1# years fro' t"e co''ence'ent of t"e olicy. +"e *ran$ na'e

e'anate$ fro' t"is >SP5 "e a$$e$. It is a ro$uct t"at allo/s t"e consu'er to *e in

co'lete eace of 'in$ a*out "is retire'ent "ence5 t"e na'e )ir(ana. +"e c"allene

for us /as to e:lo$e t"is >SP5 an$ create a $istinct ersonality for t"e ro$uct.

8ast year5 t"e insurance sector sent a little un$er Rs 2## crore on a$(ertisin5 accountin

for a*out a fourt" of financial ser(ices a$(ertisin5 accor$in to +A e$ia Researc".

8ife insurance ro$ucts accounte$ for a*out EE er cent of o(erall insurance a$ sen$5

/it" 8ife Insurance %ororation toin t"e list of a$(ertisers.

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Part IInsurance sector

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Insurance sector

By any yar$stic!5 In$ia5 /it" a*out 2## 'illion 'i$$le class "ouse"ol$s5 resents a "ue

untae$ otential for layers in t"e insurance in$ustry. Saturation of 'ar!ets in 'any

$e(eloe$ econo'ies "as 'a$e t"e In$ian 'ar!et e(en 'ore attracti(e for lo*al

insurance 'aors.

it" t"e er caita inco'e in In$ia e:ecte$ to ro/ at o(er 6J for t"e ne:t 1# years

an$ /it" i'ro(e'ent in a/areness le(els5 t"e $e'an$ for insurance is e:ecte$ to ro/

at an attracti(e rate in In$ia. An in$een$ent consultin co'any5 +"e onitor ;rou

"as esti'ate$ t"at t"e life insurance 'ar!et /ill ro/ fro' Rs.21E *illion in 199E to

Rs.1##3 *illion *y 2##E ?a co'oun$e$ annual ro/t" of 16.J@3.

Insurance *usiness "as a ositi(e correlation /it" econo'ic $e(elo'ent in an econo'y.

As an econo'y $e(elos o(er t"e years5 insurance sector starts 'a!in inroa$s into t"e

interiors of t"e syste'. ost of t"e ti'es5 insurance *eins /it" t"e life insurance an$

ra$ually srea$s to t"e fiel$ of eneral insurance. (ery for/ar$loo!in erson /oul$

in(aria*ly "a(e "isK"er life insurance $one. (en in a country li!e In$ia5 it is "ar$ to

*elie(e t"at any a$ult erson li(in in to/ns /oul$ not "a(e life insurance $one an$ t"econcet is ic!in u e(en in t"e rural areas. In ot"er /or$s5 t"e life insurance 'ar!et in

In$ia is as lare as its oulation.

+"ere is no $ou*t t"at t"e li*eralie$ life insurance in$ustry is *oo'inC an$

li*eraliation of t"e life insurance 'ar!et "as so far ro(e$ to *e a reat success. )e/

8ife *usiness is ro/in at 3 er cent5 an$ in(este$ fun$s "a(e ro/n $ra'atically *y

a*out Rs. 9#5### crore in 2##3#4 to touc" a*out Rs. 35#5### crore.

In$ia /it" a*out 2## 'illion 'i$$le class "ouse"ol$ s"o/s a "ue untae$ otential for

layers in t"e insurance in$ustry. it" suc" a lare In$ian oulation an$ t"e untae$

'ar!et area of t"is oulation Insurance "aens to *e a (ery *i oortunity in In$ia.

+o$ay it stan$s as a *usiness ro/in at t"e rate of 12# er cent annually. +oet"er

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/it" *an!in ser(ices5 it a$$s a*out 7 er cent to t"e countries ;DP .In site of all t"is

ro/t" t"e statistics of t"e enetration of t"e insurance in t"e country is (ery oor. )early

E#J of In$ian oulations are /it"out 8ife insurance co(er an$ t"e Healt" insurance.

+"is is an in$icator t"at ro/t" otential for t"e insurance sector is i''ense in In$ia.

I"E INSURERS

Pu6-ic Sector

8ife Insurance %ororation of In$ia

Private Sector

Allian Baa 8ife Insurance %o'any 8i'ite$

Birla Sun8ife Insurance %o'any 8i'ite$

HD% Stan$ar$ 8ife Insurance %o. 8i'ite$

I%I%I Pru$ential 8ife Insurance %o. 8i'ite$

I); Lysya 8ife Insurance %o'any 8i'ite$

a: )e/ ,or! 8ife Insurance %o. 8i'ite$

et8ife Insurance %o'any 8i'ite$

0' ota! a"in$ra 8ife Insurance %o. 8t$.

SBI 8ife Insurance %o'any 8i'ite$

+A+A AI; 8ife Insurance %o'any 8i'ite$

AP San'ar Assurance %o'any 8i'ite$

Da*ur %;> 8ife Insurance %o. P(t. 8i'ite$

*ENERA INSURERS

Pu6-ic Sector

)ational Insurance %o'any 8i'ite$

)e/ In$ia Assurance %o'any 8i'ite$

0riental Insurance %o'any 8i'ite$

>nite$ In$ia Insurance %o'any 8i'ite$

Private SectorBaa Allian ;eneral Insurance %o. 8i'ite$

I%I%I 8o'*ar$ ;eneral Insurance %o. 8t$.

I%0+o!io ;eneral Insurance %o. 8t$.

Reliance ;eneral Insurance %o. 8i'ite$

Royal Sun$ara' Alliance Insurance %o. 8t$.

+A+A AI; ;eneral Insurance %o. 8i'ite$

%"ola'an$ala' ;eneral Insurance %o. 8t$.

:ort %re$it ;uarantee %ororation

HD% %"u** ;eneral Insurance %o. 8t$.

+"e insurance in$ustry is Muite $i(erse in ter's of ortfolio of ro$ucts ro(i$e$ *y$ifferent co'anies. +"e ro$ucts can *e *roa$ly classifie$ into t/o ro$uct lines

1. Proerty an$ casualty ?P&%@

2. 8ife insurance.

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8ife insurance ro$uct line can *e furt"er su*$i(i$e$ into life insurance5 "ealt"

insurance an$ annuity ro$ucts.

;ro/in consoli$ation an$ c"ane in t"e reulatory fra'e/or! "as le$ 'any insurers to

A$$ ne/ ro$ucts to t"eir ortfolio. +"is resents its o/n uniMue c"allene to t"e insurer

In le(erain its reatest asset $ata.

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Brie !istor0+"e oriin of insurance is (ery ol$ .+"e ti'e /"en /e /ere not e(en *ornC 'an "as

sou"t so'e sort of rotection fro' t"e unre$icta*le cala'ities of t"e nature. +"e *asic

ure in 'an to secure "i'self aainst any for' of ris! an$ uncertainty le$ to t"e oriin of

Insurance.

+"e insurance ca'e to In$ia fro' >C /it" t"e esta*lis"'ent of t"e 0riental 8ife

insurance %ororation in 1E1E.+"e In$ian life insurance co'any act 1912 /as t"e firststatutory *o$y t"at starte$ to reulate t"e life insurance *usiness in In$ia. By 196 a*out

14 In$ian5 16 forein an$ 7 ro(i$ent fir's /ere *een esta*lis"e$ in In$ia. +"en t"e

central o(ern'ent too! o(er t"ese co'anies an$ as a result t"e 8I% /as for'e$. Since

t"en 8I% "as /or!e$ to/ar$s srea$in life insurance an$ *uil$in a /i$e net/or!

across t"e lent" an$ t"e *reat" of t"e country. After t"e li*eraliation t"e entrance of

forein layers "as a$$e$ to t"e co'etition in t"e 'ar!et.

+"e ;eneral insurance *usiness in In$ia5 on t"e ot"er "an$5 can trace its roots to t"e

+riton Insurance %o'any 8t$.5 t"e first eneral insurance co'any esta*lis"e$ in t"e

year 1E# in %alcutta *y t"e Britis". In 197 ;eneral Insurance %ouncil5 a /in of t"e

Insurance Association of In$ia5 fra'es a co$e of con$uct for ensurin fair con$uct an$

soun$ *usiness ractices. In 1972 +"e ;eneral Insurance Business ?)ationaliation@ Act5

1972 nationalie$ t"e eneral insurance *usiness in In$ia /it" effect fro' 1st Ganuary

1973. It /as after t"is t"at 1#7 insurers a'ala'ate$ an$ roue$ into four co'anies

(i. t"e )ational Insurance %o'any 8t$.5 t"e )e/ In$ia Assurance %o'any 8t$.5 t"e

0riental Insurance %o'any 8t$. an$ t"e >nite$ In$ia Insurance %o'any 8t$. ;I%

incororate$ as a co'any.

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Insurance Sector Reor.sIn 19935 al"otra %o''ittee5 "ea$e$ *y for'er inance Secretary an$ RBI ;o(ernor R.

). al"otra5 /as for'e$ to e(aluate t"e In$ian insurance in$ustry an$ reco''en$ its

future $irection.

+"e al"otra co''ittee /as set u /it" t"e o*ecti(e of co'le'entin t"e refor's

initiate$ in t"e financial sector. +"e refor's /ere ai'e$ at creating a .ore eicient

and co.etitive inancia- s0ste. suita6-e or te re


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35 Regu-ator0 Bod0

+"e Insurance Act s"oul$ *e c"ane$

An Insurance Reulatory *o$y s"oul$ *e set u

%ontroller of Insurance ?%urrently a art fro' t"e inance inistry@ s"oul$ *e

'a$e in$een$ent

#5 Invest.ents

an$atory In(est'ents of 8I% 8ife un$ in o(ern'ent securities to *e re$uce$

fro' 7J to #J

;I% an$ its su*si$iaries are not to "ol$ 'ore t"an J in any co'any ?+"ere current

"ol$ins to *e *rou"t $o/n to t"is le(el o(er a erio$ of ti'e@

5 Custo.er Service

8I% s"oul$ ay interest on $elays in ay'ents *eyon$ 3# $ays

Insurance co'anies 'ust *e encourae$ to set u unit lin!e$ ension lans

%o'uterisation of oerations an$ u$atin of tec"noloy to *e carrie$ out in t"e

insurance in$ustry

+"e co''ittee e'"asise$ t"at in or$er to i'ro(e t"e custo'er ser(ices an$ increase

t"e co(erae of t"e insurance in$ustry s"oul$ *e oene$ u to co'etition. But at t"e

sa'e ti'e5 t"e co''ittee felt t"e nee$ to e:ercise caution as any failure on t"e art of

ne/ layers coul$ ruin t"e u*lic confi$ence in t"e in$ustry.

Hence5 it /as $eci$e$ to allo/ co'etition in a li'ite$ /ay *y stiulatin t"e 'ini'u'

caital reMuire'ent of Rs.1## crores. +"e co''ittee felt t"e nee$ to ro(i$e reater

autono'y to insurance co'anies in or$er to i'ro(e t"eir erfor'ance an$ ena*le t"e'

to act as in$een$ent co'anies /it" econo'ic 'oti(es. or t"is urose5 it "a$

roose$ settin u an in$een$ent reulatory *o$y.

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Te Insurance Regu-ator0 and Deve-o.ent

Autorit0

Refor's in t"e Insurance sector /ere initiate$ /it" t"e assae of t"e IRDA Bill in

Parlia'ent in Dece'*er 1999. +"e IRDA since its incororation as a statutory *o$y in

Aril 2### "as fasti$iously stuc! to its sc"e$ule of fra'in reulations an$ reisterin

t"e ri(ate sector insurance co'anies.

+"e ot"er $ecisions ta!en si'ultaneously to ro(i$e t"e suortin syste's to t"e

insurance sector an$ in articular t"e life insurance co'anies /as t"e launc" of t"e

IRDA-s online ser(ice for issue an$ rene/al of licenses to aents. +"e aro(al of

institutions for i'artin trainin to aents "as also ensure$ t"at t"e insurance co'anies

/oul$ "a(e a traine$ /or!force of insurance aents in lace to sell t"eir ro$ucts5 /"ic"

are e:ecte$ to *e intro$uce$ *y early ne:t year.

Since *ein set u as an in$een$ent statutory *o$y t"e IRDA "as ut in a fra'e/or! of

lo*ally co'ati*le reulations. In t"e ri(ate sector 12 life insurance an$ 6 eneral

insurance co'anies "a(e *een reistere$.

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P-a0ers F )ar+et sares

Refor's /ere initiate$ /it" t"e assae of Insurance Reulatory an$ De(elo'ent

Aut"ority ?IRDA@ Bill in 1999. IRDA /as set u as an in$een$ent reulatory aut"ority5

/"ic" "as ut in lace reulations in line /it" lo*al nor's. So far in t"e ri(ate sector5

12 life insurance co'anies an$ 9 eneral insurance co'anies "a(e *een reistere$.

+"e intro$uction of ri(ate layers in t"e in$ustry "as a$$e$ to t"e colors in t"e $ull

in$ustry. +"e initiati(es ta!en *y t"e ri(ate layers are (ery co'etiti(e an$ "a(e i(en

i''ense co'etition to t"e on ti'e 'onooly of t"e 'ar!et 8I%. Since t"e a$(ent of t"e

ri(ate layers in t"e 'ar!et t"e in$ustry "as seen ne/ an$ inno(ati(e stes ta!en *y t"e

layers in t"is sector. +"e ne/ layers "a(e i'ro(e$ t"e ser(ice Muality of t"e

insurance. As a result 8I% $o/n t"e years "a(e seen t"e $eclinin "ase in its carrer. +"e

'ar!et s"are /as $istri*ute$ a'on t"e ri(ate layers. +"ou" 8I% still "ol$s t"e 7J

of t"e insurance sector *ut t"e uco'in natures of t"ese ri(ate layers are enou" to

i(e 'ore co'etition to 8I% in t"e near future. 8I% 'ar!et s"are "as $ecrease$ fro'

9J ?2##2#3@ to E1 J? 2###6@. +"e follo/in co'any "as t"e rest of t"e 'ar!et

s"are of t"e insurance in$ustry.

19

Insurance Penetration in dierent countries


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2#

Insurance industr0 in "0 2GGH?G


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Part 2

Advertising 6oosting insurance sector

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Introduction

Advertising in insurance

+"e insurance sector sent aroun$ Rs 1.E *illion on a$(ertisin . +"e In$ian a$ fraternity

is sli"tly $isaointe$ as e(eryone "a$ consi$ere$ t"e sector to *e t"e ne:t sunrise

in$ustry /"ic" /oul$ e:an$ t"e $eclinin a$ ie. 0ti'ists 'a$e rossly inflate$

clai's a*out t"e a$ sen$ of ri(ate insurance co'anies. But5 conser(atis' "as *een t"e

na'e of t"e a'e for all t"e e:istin an$ ne/ layers /"o launc"e$ t"eir ser(ices 8I%5

I%I%I Pru$ential 8ife5 Birla Sun 8ife5 Baa Allian5 I); Lysya5 SBI 8ife5 HD%

Stan$ar$ 8ife5 +ata AI; a'onst ot"ers.

Insurance5 /"ic" /as "eral$e$ as t"e Fsun riseF sector $i$nFt really li(e uto e:ectations.Peole /ere tal!in of sen$s in t"e reion of Rs *illion. A$ sen$s of insurance

co'anies "a(e *een curtaile$ $ue to t"e fact t"at all t"e ri(ate insurers "a(e *een (ery

rii$ in ter's of a$"erin to t"e Ir$a ?Insurance Reulatory an$ De(elo'ent Aut"ority@

ui$elines in ter's of creati(es an$ forein e:c"ane nor's. In t"e case of se(eral

satellite c"annels5 anot"er issue is relate$ to t"e fact t"at ay'ents "a(e to *e 'a$e in

$ollars.

Ho/e(er5 t"e fact of t"e 'atter is t"at t"e *iest $o'estic layer 8I% ?8ife Insurance

%ororation of In$ia@ ue$ its a$ sen$ to tac!le co'etition an$ succee$e$ in forin

/ay a"ea$. 8I% "as a$(ertise$ in satellite c"annels as /ell as terrestrial c"annels. 8I%

"as to reac" out to nonresi$ent In$ia olicy "ol$ers as /ell as its ot"er cororate

custo'ers /"o are *ase$ a*roa$. Ho/e(er5 t"e !ey is to /or! /it"in t"e ara'eters

clearly $efine$ *y t"e Ir$a

I%I%I Pru$ential 8ife Insurance /"ic" "as sol$ 3##5### olicies an$ crosse$ t"e Rs

*illion re'iu' 'ar! "as a$(ertise$ on se(eral c"annels fro' t"e Star +L *ouMuet5 Nee

)et/or! an$ Sony. +"ey "a(e sent a*out Rs # 'illion on +L a$(ertisin last year.

+"ere are no Ir$a restrictions on insurance co'anies a$(ertisin on satellite c"annels.

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"at is interestin is t"e fact t"at insurance co'anies "a(e realise$ t"at +L can i(e

t"e' tre'en$ous 'ileae. it" t"e eora"ical e:ansion5 +L *eca'e a (ia*le

'e$iu' an$ t"e cororate ca'ain for I%I%I Pru 8ife /as run on +L5 *ecause t"e

'e$iu' len$s itself /ell to an e'otional tye of fil's t"at stri!e a c"or$ /it" t"e

au$ience. Pro$uct a$(ertisin5 /"ic" nee$s to i'art infor'ation5 /as larely $one

t"rou" rint an$ out$oor c"annels5 as t"ese are aroriate for rational tye of

'essaes.

+"e a$(ertisin i$ea /"ic" /as encasulate$ in sy'*ols of rotection fro' t"e initial

rint ca'ain5 cul'inate$ in t"e cororate fil' /"ere sindhoor /as use$ as an

en$earin an$ lastin sy'*ol of rotection.

I%I%I Pru$ential 8ife Insurance states t"at t"e ca'ain contri*ute$ e:tensi(ely to

raisin *ran$ a/areness of t"e co'any an$ /as s"ortliste$ as one of t"e 12 'ost

effecti(e ca'ains for t"e year 2##1 in t"e I a/ar$s. Accor$in to an 0R;

AR; stu$y5 t"e I%I%I Pru$ential *ran$ na'e an$ a$(ertisin "a$ t"e "i"est recall

a'onst all ri(ate layers5 an$ /as only 'arinally *e"in$ 8I%.

I%I%I Pru$ential 8ife Insurance first *ean oerations5 t"e tas! /as to resent t"e (isitin

car$ of t"e co'any to t"e u*lic at lare an$ *uil$ cre$i*ility an$ stature an$ to i(e t"e

consu'er t"e confi$ence t"at F"ere /as a co'any t"at coul$ *e truste$ to in(est fun$s

/it".

+"is reMuire$ a cororate ca'ain5 /"ic" starte$ /it" a$(ertisin to esta*lis" t"e *ran$5

*uil$ a/areness an$ i(e t"e *ran$ a larer t"an life i'ae. 8o/e ?8intas@ "as *een t"e

creati(e a$(ertisin aency for I%I%I Pru$ential 8ife since t"e *einnin an$ "a(e stuc!

to t"e stratey.

It loo!s as if t"e a$ sen$ /ill $efinitely rise *ut not "eno'enally. ost of t"e ne/

layers "a(e finis"e$ t"e intro$uction "aseC an$ are no/ 'a!in a *i$ to eat into t"e

s"are of 8I% as /ell as e:an$ t"e 'ar!et /it" ne/ ro$ucts. :erts say t"at t"e sen$

23


24/65

/ill increase /"en ension ro$ucts5 rou insurance ro$ucts an$ "ealt" insurance

ro$ucts are launc"e$. Also5 t"e nonlife layers "a(enFt really 'a$e a *i "ue an$ cry as

yet.

8I% reacte$ *rilliantly an$ ut its act toet"er Muic!ly. +"e 'ar!et actually e:an$e$ an$

t"e increase$ noise create$ *y t"e ri(ate layers *enefite$ 8I%. 0ne 'ust re'e'*er

t"at a$ sen$s $ecrease in t"e case of a 'ar!et e:ansion scenario an$ increase /"en one

"as to ra* t"e s"are of ot"er co'etitors.

Interestin *attle see's to *e on t"e car$s *ut it is $ifficult to say /"et"er t"e a$ in$ustry

*enefit in ter's of increase$ sen$s.

24


25/65

Insurance ads changing norms

Once upon a time, Indians were put off by insurance advertising,

as gloomy visuals reminded them of the impending demise or

accident of their loved ones. Those who did, insured themselves

as a savings mechanism, which would either help them in their

old age or provide for the family in case of their untimely demise.

The insurance agents were the perceived Yamdoots and life insurance policies, gloomy

prophecies.

Cut to !!" and the insurance scenario in the country is anything

but gloomy. #ar$ed by the entry of private players post%!!!,

Indias insurance industry has moved into e&citing and thrilling

times. 'rom being a state%owned white elephant, the insurance

sector in the country now accounts for (!%()* of Indias total

financial sector, where over a do+en ife Insurance and -on%ife Insurance Companies

are fighting it out to woo the consumer. The opening up of the sector has lured many a

foreign players into the mar$et li$e un ife /Canada0, Old #utual /. 1frica0, 2rudential

/340, -ew Yor$ ife /310 and others. The carrot of course, is the huge potential that the

sector holds5 6efore (77(, life insurance penetration in India was less than (*8 during

the 7!s it was between (%*, while in !!9%!: /the last available figures0, insurance

penetration had crossed .:*. 1pply that to a country of over a billion people and you

realise why global players are eyeing India.

This untapped potential is pushing insurance ma;ors thin$ of innovative ways to rope in

more customers. This wooing is eminently visible in the evolving advertising and branding

strategies of insurance ma;ors.


26/65

The Advertising Buzz

>alleluiah? so, the savings compulsion of yesteryears has made a dramatic

metamorphosis into a sound investment decision today@ 1nd what better way to cash in

on the newfound identity than via advertisements and image building e&ercises.

4A ridhar, -ational Creative Birector of eo 6urnett, and creator of the latest >B'C

tandard ife Insurance ad ar utha $e ;iyo says, Earlier insurance, advertising

was curbed because we could not communicate any negative aspects like death

and accidents. But o late, there has been a change in perception. !hile a "#

year old guy may still get sentimental beore taking a policy, the $%&something

younger generation is absolutely comortable with insurance.'

2rivate players li$e ICICI 2rudential ife, >B'C tandard ife, 1llian+ 6a;a; and #a& -ew

Yor$ ife have radically changed the business euation in the life Insurance segment,

whereas I''CO%TO4IO, Tata%1I< and ICICI ombard have set a new trend for general

insurance in the country. These private players no longer euate insurance with wealth

that you get when you die. If >B'C tandard ifes advertising message teaches the

consumer to live a life with pride and dignity, ICICI 2rudential ife opens doors to a slew

of need%based Insurance options. pea$ing about the basic though process behind their

service, an;ay Tripathy, >ead #ar$eting, >B'C tandard ife says, !e have

successully dierentiated our brand on the beneit o inancial independenceand sel&respect.' (urther, insurance companies brand their service, not only

through putting their )best service* oot orward, but also by educating the

customers* about the )investment* beneits o their policies.

-ot to be left behind and realising the need to be different in offering more need%based

services, even


27/65

a$(ertisin. At last count5 8I% toe$ 8ife Insurance a$(ertisin on tele(ision a'on all

ot"er layers in t"e country /it" a /"ooin 27J a$ s"are in 2##4.

(en 8I%-s co''unication "as 'ature$ /it" ti'e. Recall 8I%-s Nina$i !e saat" *"i

Nin$ai !e *aa$ *"i ?/it" you in life an$ e(en after@ ca'ainO 0r t"e one /"ere a

$otin fat"er says of "is little irl5


28/65

Canging Advertising F Pro.otion Nor.s

Instead of pushing policies down the throat we educate the customer and offer guidance

on how much insurance the individual needs, an approach that is slowly paying off.

+ 2 riate insurance adisor, in 8001))

"ORCED TO SE 'EJ

In Guly 2##25 In$ia-s state o/ne$ insurer5 8ife Insurance %ororation of In$ia ?8I%@

announce$ aressi(e 'ar!etin lans /it" a *u$et of aroun$ Rs 1 *illion. +"e ai' of

t"is unusual $ecision /as to /oo custo'ers across t"e country t"rou" a 'ulti'e$iaca'ain inclu$in a$(ertise'ents on t"e ra$io an$ t"e ress 'e$ia5 t"e out$oor 'e$ia

an$ t"e tele(ision. Ho/e(er5 t"is $i$ not co'e as a 'aor surrise to in$ustry o*ser(ers

/"o sai$ t"at 8I% $i$ not "a(e too 'any otions.

it" t"e insurance *ill *ein asse$ in 2###5 t"e In$ian insurance sector sa/ a "ost of

ri(ate layers enter t"e 'ar!et /it" 'ultinationals as t"eir artners. +"ese ne/ layers

resorte$ to aressi(e 'ar!etin an$ a$(ertise'ent strateies Q so'et"in t"e 'ar!et "a$

ne(er seen earlier.

+"is su$$en surt of a$(ertise'ents an$ a/areness rora's /as (isi*le on all t"e 'e$ia

c"annels. Print5 electronic an$ out$oor a$(ertise'ents of t"e ne/ ri(ate insurers floo$e$

coul$ *e seen e(ery/"ere. +"is ro'te$ 'any co'arisons of suc" *e"a(ior of

insurance co'anies /it" t"e a$(ertisin freny of t"e $otco's in In$ia not too lon ao

Q /it" si'ilar fullae a$(ertise'ents5 "ue "oar$ins an$ costly electronic 'e$ia

a$(ertise'ents.

Accor$in to a sur(ey con$ucte$ *y a lea$in 'ar!etin researc" fir'5 0R; ar5

*ran$ a/areness of ri(ate insurers in In$ia /as increasin in t"e early 21st century. +"e

$ifference in t"e le(el of a/areness of t"ese ne/ layers as co'are$ to t"e "it"erto

2E


29/65

'onooly of 8I% /as $ecreasin fast *ecause of t"e aressi(e a$(ertisin 'easures

a$ote$ *y ri(ate insurers.

BAC&*ROUND NOTE

+"e life insurance in$ustry in In$ia $ates *ac! to 1E1E5 /"en a Britis" fir' 0riental 8ife

Insurance %o'any oene$ its office in ol!ata5 follo/e$ *y Bo'*ay 8ife Assurance

%o'any in 1E23. Durin t"e Britis" rule in In$ia5 +"e In$ian 8ife Assurance

%o'anies Act- /as enacte$ in 19125 /"ic" /as follo/e$ *y t"e In$ian Insurance

%o'anies Act5 192E ena*lin o(ern'ent to collect t"e $ata rear$in life an$ nonlife

*usiness con$ucte$ *y *ot" In$ian an$ forein insurance co'anies. +"e 192E act /as

a'en$e$ an$ a ne/ act5 Insurance Act- /as for'e$ in 193E.

By t"e 'i$19#s5 14 In$ian insurers5 16 forein insurers an$ 7 ro(i$ent societies

/ere oeratin in t"e country. +"e life insurance *usiness /as concentrate$ in ur*an

areas an$ /as confine$ to t"e "i"er strata of t"e society. In 1965 'anae'ent of t"ese

co'anies /as ta!en o(er *y t"e ;o(ern'ent of In$ia. 8I% /as for'e$ in Sete'*er

196 t"rou" t"e 8I% Act 196- /it" a caital of Rs # 'illion. 0ne of t"e 'ain

o*ecti(es of for'in 8I% /as to srea$ t"e

insurance co(er an$ 'a!e it a(aila*le to t"e lo/er se'ents of t"e society. In 19725

o(ern'ent for'e$ ;eneral Insurance %ororation ?;I%@ /"en it too! o(er 'anae'ent

control of 1#6 ri(ate eneral insurance co'anies. 0(er t"e years5 8I% e:an$e$ its

net/or! all o(er t"e country e'erin as one of t"e larest cororations in In$ia.

Insurance in$ustry-s ro/t" in t"e In$ia /as 'ini'al in 196#s an$ 197#s $ue to factors

li!e lo/ sa(ins5 lo/ in(est'ent5 ina$eMuate infrastructure5 an$ illiteracy. Ho/e(er5

c"anes in t"e econo'y in 19E#s5 suc" as ro/t" in t"e rate of in$ustrialiation5

infrastructure5 t"e caital 'ar!ets5 sa(ins rate an$ caital for'ation resulte$ in a

tre'en$ous ro/t" in t"e life insurance in$ustry5 /"ic" in ot"er /or$s 'eant ro/t" of

8I%. 0(er t"e years5 8I% launc"e$ se(eral sc"e'es ai'e$ at e:an$in its reac" in t"e

rural areas. any rou insurance an$ social security sc"e'es /ere starte$ *y t"e

co'any to en"ance its reac" o(er t"e rural. 8I% "a$ se(en onal offices5 1## $i(isional

29


30/65

offices5 25#4E *ranc" offices an$ ar'y of aents totalin 652E5#31.

)ee$ for refor'in t"e in$ustry /as felt in t"e early199#s for ro(i$in *etter co(erae

to t"e In$ians an$ to increase flo/ of lonter' financial resources to finance t"e ro/t"

of infrastructure. In 19935 t"e In$ian o(ern'ent constitute$ t"e al"otra %o''ittee-

to suest refor's in t"e in$ustry. +"e co''ittee su*'itte$ its reort in 19945 /it"

reco''en$ations for oenin t"e insurance sector to ri(ate layers5 i'ro(in ser(ice

stan$ar$s an$ e:ten$in insurance co(erae to larer sections of t"e oulation.

+"e co''ittee-s suestions face$ stiff oosition fro' (arious la*or unions an$

olitical arties in t"e country. +"ey oine$ t"at entry of ri(ate layers /oul$ lea$ to

o* cuts *y t"e nationalie$ layers in or$er to co'ete /it" t"e'. +"ere /ere a "ost of

ot"er aru'ents aainst t"ese refor's. +"e o(ern'ent sou"t to a$$ress t"e' *y

restrictin forein sta!e in insurance co'anies to only 26J5 /"ic" /as /ell *elo/ 1J

nee$e$ for t"e 'anain t"e co'any in t"e Insurance Bill.

+"ou" one of 8I%-s *asic o*ecti(es /as to ro(i$e insurance co(er to all In$ians5-

insurance enetration in In$ia /as consi$ere$ to *e (ery lo/. Accor$in to reorts5 only

6 'illion eole /ere co(ere$ *y insurance. R ) G"a5 8I%-s for'er :ecuti(e Director

co''ente$ in "is *oo!5 Insurance in In$ia5- nion 2J5

Sout" Africa 2.3J an$ %ana$a Q 1.7J. urt"er5 in 2##15 /"ile t"e ratio of insurance

3#


31/65

re'iu' to t"e ;ross Do'estic Pro$uct ?;DP@ /as 9J for > an$ Gaan5 an$ J for

>S5 it /as only 1.9J in In$ia.

Attracte$ *y t"e "ue untae$ otential5 'any ri(ate layers entere$ t"e 'ar!et after

t"e Insurance *ill /as asse$ in late 2###. A 'aority of t"ese /ere colla*orations

*et/een an In$ian co'any an$ a lea$in )% insuranceKfinancial ser(ices co'any

Private -a0ers in te Indian insurance .ar+et

CO)PAN%INDIAN

PARTNER

"OREI*N

INSURERAREA

Birla Sun 8ifeA$itya Birla

;rouSun 8ife5 %ana$a 8ife

0' ota!ota! a"in$ra

inance

0l$ utual5 Sout"

Africa8ife

HD%Stan$ar$ 8ife HD% Stan$ar$ 8ife5 > 8ife

Royal Sun$ara' Sun$ara' inance Royal Sun5 >8ife an$ )on

8ife

I%I%IPru$ential I%I%I Pru$ential5 > 8ife

a: )e/ ,or! 8ife a: In$ia)e/ ,or! 8ife5

>SA8ife

+ataAI; +ata ;rou AI;5 >SA 8ife an$ )on8ife

I); Lysya Lysya Ban!I); Insurance5

)et"erlan$s8ife

A(i(a Da*ur %;> 8ife5 > 8ife

et8ife In$iaGa''u &

as"'ir Ban!et8ife5 >SA 8ife

Baa Allian Baa Auto Allian 8ife & )on8ife

AP San'ar San'ar ;rou AP5 Australia 8ife

SBI 8ife Insurance SBI %ar$iff5 rance 8ife

Accor$in to in$ustry o*ser(ers5 one of t"e 'ain reasons for t"e lo/ insurance

enetration in In$ia /as t"e ineffecti(e $istri*ution an$ 'ar!etin strateies a$ote$ *y

8I%. +"e co'any reorte$ly ne(er "a$ any strateic 'ar!etin a'elan5 an$ $ue to its

31


32/65

'onoolistic nature t"e nee$ for serious 'ar!etin efforts /as ne(er felt. +"e a$(ertisin

initiati(es /ere li'ite$ to so'e rint an$ electronic 'e$ia a$(ertise'ents5 t"at tyically

tal!e$ a*out 8I%-s ro$ucts *ein reat ta: sa(in tool for salarie$ in$i(i$uals /"o ca'e

un$er t"e inco'eta: *rac!et. Desite all t"is5 8I% /as synony'ous /it" insurance in

In$ia an$ it "a$ esta*lis"e$ an en(ia*le *ran$ i'ae for itself5 esecially in t"e rural

areas an$ s'all to/ns. Ho/e(er5 /it" t"e entry of ne/ layers5 t"e insurance 'ar!et

c"ane$ al'ost o(erni"t. Analysts co''ente$ t"at t"e ri(ate insurers see'e$ all set to

'a!e t"e in$ustry 'ar!etin$ri(en5 /"erein tec"nical an$ ser(ice e:cellence /oul$ *e

t"e !ey factors of success. +"e ri(ate co'anies5 in a *i$ to 'a!e t"eir resence felt an$

t"eir *ran$ notice$5 initiate$ a series of aressi(e 'ar!etin an$ ro'otion initiati(es5

so'et"in t"at *uyers of insurance /ere not accusto'e$ to. Suc" freny ro'te$ IRDA

to fra'e an a$(ertise'ent co$e for co'anies.

AD$ERTISIN* INITIATI$ES O" T!E NE' PA%ERS

+"e ne/ insurance co'anies use$ all c"annels of a$(ertisin fro' ne/saers an$ t"e

tele(ision to insurance aents an$ $irect 'ailers. A fierce *attle see'e$ to "a(e *eun

a'on In$ian insurance co'anies to 'a!e one-s o/n *ran$ /in o(er t"e ot"er.

A 'aority of In$ian custo'ers *ein (ery conser(ati(e an$ a(erse to ris!5 trust /as an

e:tre'ely i'ortant factor in t"e insurance *usiness. Since 8I% /as a o(ern'ent o/ne$

*o$y5 t"ere /as an ele'ent of security e'*e$$e$ in its ser(ices an$ ro$ucts. +"is

ro(e$ to *e t"e *iest "ur$le for t"e ne/ insurance co'anies as In$ian custo'ers

/ere reorte$ly rat"er s!etical a*out t"e'.

Hence5 t"e ne/ co'anies focuse$ t"eir ca'ains ri'arily on *uil$in an i'ae of

trust/ort"iness an$ relia*ility for t"e'sel(es. Secon$ly5 t"eir a$(ertise'ents focuse$ on

insurance as an in(est'ent otion an$ not a 'ere ta: sa(in tool Q anot"er first for t"e

In$ian 'ar!et. ost of t"ese a$(ertise'ents carrie$ 'essaes li!e t"e fa'ily-s

"ainess5 "u'an *on$in5 etc.5 /it" un$erlyin e'"asis on t"e security t"at insurance

coul$ ro(i$e. Also5 instea$ of roectin t"e i$ea5 t"at an insurance olicy actually starts

/or!in only after t"e $eat" of t"e insure$5 t"e ne/ ca'ains roecte$ t"at insurance

rotects eole t"rou"out t"eir li(es.

32


33/65

In one of its +L co''ercials5 I%I%I Pru$ential s"o/e$ a series of scenes $eictin t"e

c"il$"oo$5 'arriae an$ ol$ ae of an in$i(i$ual. +"e urose of usin t"ese (isuals /as

to translate t"e co'any-s 'essae I /ill rotect- into reallife inci$ents. In or$er to

roect its co''it'ent to/ar$s consu'ers to rotect at e(ery stae of life5- t"e co'any

*rou"t in t"e concet of sin$oor5 /"ic" sy'*olies rotection. Sin$oor /as s"o/n

t"rou"out t"e co''ercial as a 'ar! of ausiciousness an$ rotection5 an$ at t"e en$5 it

*eca'e t"e re$ line *elo/ t"e I%I%I Pru$ential loo

a: )e/ ,or! also resorte$ to $eictin ositi(e e'otions suc" as trust an$ rotection

in its rint a$(ertise'ents. +"e co'any release$ t/o rint a$(ertise'ents. "ile one of

t"e' carrie$ an i'ae of t"e re(ere$ $eity ;o$$ess Dura5 t"e ot"er roecte$ t"ree

teenaers stan$in toet"er5 /it" t"eir faces ainte$ reen5 /"ite an$ saffron Q li!e t"e

In$ian national fla. Reorte$ly5 a: )e/ ,or! /ante$ to con(ey t"e 'essae t"at

insurance is your artner for your life.- Su"el Set" of Muus A$(ertisin t"e a$ aency5

/"ic" create$ t"e a$(ertise'ents for a: )e/ ,or! Q sai$5


34/65

0' ota! an$ Birla Sun 8ife too! to sonsorin e(ents in a 'aor /ay5 to attract

rosecti(e custo'ers. In 2##15 Birla Sun 8ife sonsore$ a lay to /"ic" a fe/ %iti*an!

cre$it car$ custo'ers /ere in(ite$. A co'any official sai$5


35/65

ersonal acci$ental $eat" insurance olicy. Accor$in to co'any sources5 S"a" /as

selecte$ *ecause "e "a$ t"e i'ae of *ein an intellient an$ relia*le in$i(i$ual. Anot"er

ri(ate insurer AP San'ar5 roe$ in for'er Australian cric!et catain5 Ste(e au"

for en$orsin its life insurance olicies.

et8ife ca'e u /it" si'le5 luci$ a$(ertise'ents t"at coul$ *e easily un$erstoo$ *y

all. 0ne of its a$(ertise'ents rea$5 "y $oes anyone nee$ insuranceO ell5 /"y $oes a

car nee$ a sare tyreO- Accor$in to analysts5 t"is a$(ertise'ent successfully roecte$

t"e i'ortance of insurance for an in$i(i$ual. et8ife-s a$(ertise'ents carrie$ cartoons

fro' t"e oular Peanuts- series an$ carrie$ e'otional 'essaes.

In a$$ition to all t"e a*o(e5 ri(ate layers in t"e insurance sector c"arte$ out (arious

inno(ati(e 'ar!etin lans to esta*lis" t"eir ro$ucts. or instance5 I%I%I Pru$ential

launc"e$ t"e +ru8ife %lu*- for its "i"(alue olicy"ol$ers as art of its 'ar!etin

stratey. +"rou" +ru8ife %lu*5 t"e co'any offere$ a /i$e rane of "ealt"relate$

ro$ucts5 "ealt" an$ fitness eMui'ent an$ 'e'*ers"i in y's5 "ealt" resorts an$

clinics in In$ia. Policy"ol$ers /it" a su' assure$ of Rs #. 'illion or 'ore /ere

inclu$e$ into t"is clu*. Accor$in to co'any sources5 t"e urose of t"is /"ole e:ercise

/as to encourae a "ealt"y life of its custo'ers.

Durin t"e late2##15 /"en SBI 8ife /as concentratin on *uil$in its *ran$ it /as

offerin ac!ae$ ro$ucts to its custo'ers. S urali$"aran5 %"ief of ar!etin &

Sales5 SBI 8ife5 sai$5


36/65

assertin5 )o/ I can continue enoyin a co'forta*le lifestyle e(en after I retire.- AP

San'ar co''ercials carrie$ t"e line +"e oy of li(in life to t"e fullest5 /it" a 13year

ol$ e:ert ta!in care of your insurance nee$s.- 0' ota! "i"li"te$ its ca'ains

/it" Geene !i aaa$i- ?ree$o' to li(e@- an$ Allian Baa state$ Allian Baa5 8ife

insure$ *y care.-

it" ri(ate layers ayin 'uc" attention to a$(ertisin an$ ro'otional acti(ities5

8I%5 too5 /as force$ to 'a!e efforts to increase its (isi*ility an$ en"ance its *ran$ i'ae.

+"e co'any co''ence$ intense5 syste'atic an$ /ellfocuse$ u*lic relations an$

u*licity acti(ities *ot" at t"e cororate an$ oerational le(els. 8I% ca'e out /it" a

cororate a$(ertise'ent on +L /it" t"e unc" line5 Nin$ai +u'"ari Ros"an Ra"e-

?ay your life *e lorious@. In a$$ition5 8I% esta*lis"e$ a *roa$*ase$ fra'e for e:ternal

co''unication ai'e$ at *uil$in a stroner *ran$ i'ae. Se(eral sorts e(ents /ere co

sonsore$ *y t"e co'any an$ secial u*licity acti(ities /it" a social urose /ere

un$erta!en

+ra$itionally5 8I% use$ to taret eit"er 'i$$leae$ eole or el$erly ones. But ri(ate

insurers tarete$ in$i(i$uals in all ae rous5 in t"eir a$(ertise'ent ca'ains. Analysts

ointe$ out t"at 8I% /as also *iase$ aainst /o'enC 'ost of its olicies /ere $esine$

/it" 'en in 'in$5 /"ereas ri(ate insurers- ro$ucts co(ere$ /o'en-s nee$s5 too. +"us5

8I% /as force$ to 'o$ify its a$(ertise'ent ca'ains an$ co''unication in or$er to

aeal to all rous. It 'a$e its a$(ertise'ents carry uni(ersally alica*le 'essaes5

focusin articularly on t"e youn e:ecuti(e or t"e /or!in /o'an5 in or$er to ta t"e

'ar!et co'rise$ of eole in t"e ae rou of 1E3 years.

I)PICATIONS O" T!E >NE'?A*E4 )AR&ETIN* INTIATI$ES

Accor$in to reorts5 in t"e first Muarter of t"e year 2##25 insurance co'anies sent

7#J of /"at /as sent in t"e /"ole of 2##15 on a$(ertisin an$ u*licity. Across t"e

36


37/65

/orl$5 insurance5 as a cateory /as one of t"e larest sen$ers on a$(ertisin. In In$ia

too su*stantial e:en$iture /as *ein incurre$ $ue to a$(ertisin

Ho/e(er5 $urin t"e first year of t"e entry of ne/ layers5 /"ile 8I% reorte$ a ro/t"

of o(er 2#J5 ri(ate insurers 'anae$ to arner only a*out #.J 'ar!et s"are5 in site

of sen$in "efty a'ounts on a$(ertisin an$ ro'otion. Accor$in to reorts5 8I%-s

*usiness increase$ 'ainly *ecause of t"e increase$ u*lic a/areness a*out insurance5

/"ic" /as *rou"t a*out *y t"e "ea(y a$(ertise'ent ca'ains of ri(ate layers.

It /as reorte$ t"at custo'ers resorte$ to 8I% after t"e a/areness a*out insurance

increase$ as a result of t"e 'ar!etin efforts of t"e ne/ layers5 *ecause t"ey /ere

attracte$ *y t"e security factor- attac"e$ /it" t"e stateo/ne$ insurer.

Accor$in to a sa'le sur(ey con$ucte$ *y 0R;ar on t"e oular life insurance

*ran$s in 2##15 a/areness of 8I% olicies /as a "eno'enal 1##J5 /"ile t"e ri(ate

insurers lae$ far *e"in$ ?Refer to +a*le III@. +"e sur(ey /as con$ucte$ to collect

infor'ation a*out t"e a/areness of t"e life insurance *ran$s an$ /"et"er reson$ents

/ere rea$y to *uy t"e olicies of suc" co'anies or not ?t"is teste$ t"e success of t"e

co''unication strateies of t"e co'anies concerne$@.

POPUAR I"E INSURANCE BRANDS IN 2GGH

CO)PAN% A'ARENESS E$ES =in K@

8I% 1##

I%I%I Pru$ential 7#

HD% Stan$ar$ 2

SBI 8ife 2

Birla Sun 8ife 23

0 ota! a"in$ra 2#

+ata AI; 17

Allian Baa 12

a: )e/ ,or! 8ife 6

I); Lysya 8ife 4

Da*ur %;> 4

37


38/65

Source: www.insuremagic.com

So'e analysts ointe$ out t"at suc" $e(elo'ent /as 'erely an in$icator of t"e

$ifficulties forein fir's coul$ face in In$ia. ost of 8I%-s sales ca'e fro' t"e s'all

an$ rural sectors5 /"ic" actually constitute t"e larest untae$ insurance 'ar!et in

In$ia. Ho/e(er5 t"e ri(ate insurers faile$ to ta t"e rural 'ar!ets $ue to t"eir li'ite$

reac". +"ey focuse$ t"eir 'ar!etin efforts only in li'ite$ 'etroolitan areas. it"

8I%-s *ran$ *ein (ery fir'ly etc"e$ in t"e 'in$s of t"e In$ians5 ri(ate insurers

$efinitely see'e$ to "a(e a tou" *attle a"ea$.

Ho/e(er5 it is true t"at t"e 'ar!et s"are of ri(ate layers "as increase$ fro' #.J in

2##1 to 7J in 0cto*er 2##25 /"ic" "as re$uce$ 8I%-s 'ar!et s"are to 93J. As

'ar!etin an$ tec"nical sueriority /ere e:ecte$ to *e t"e $ecisi(e factors for success

in t"e In$ian insurance sector in t"e future5 t"e ne/ layers stoo$ a oo$ c"ance. it"

ro$uctsecific a$(ertise'ent *einnin to catc" u in 'i$2##25 ri(ate insurers /"o

lanne$ to launc" inno(ati(e ro$ucts /ere "oin for t"e *est.

AD$ERTIS)ENT CODE B% IRDA

Ever0 Insurer or Inter.ediar0 or Insurance Agent Sa-- 8

"a(e a co'liance officer5 /"ose na'e an$ official osition in t"e oraniation s"all*e

co''unicate$ to t"e Aut"ority5 an$ "e s"all *e resonsi*le to o(ersee t"e a$(ertisin

rora'C

esta*lis" an$ 'aintain a syste' of control o(er t"e content5 for'5 an$ 'et"o$ of

3E


39/65

$isse'ination of

all a$(ertise'ents concernin its olicies.

'aintain an a$(ertisin reister at its cororate office /"ic" 'ust inclu$e

a seci'en of e(ery a$(ertise'ent $isse'inate$5 or issue$ or a recor$ of any

*roa$cast or telecast5

etc.C

a notation attac"e$ to eac" a$(ertise'ent in$icatin t"e 'anner5 e:tent of

$istri*ution an$ for'

nu'*er of any olicy a$(ertise$.

T 'aintain a seci'en of all a$(ertise'ents for a 'ini'u' erio$ of t"ree years.

T file a coy of eac" a$(ertise'ent /it" t"e Aut"ority as soon as it is first issue$5

toet"er /it" infor'ation an i$entifyin nu'*er for t"e a$(ertise'entC

T t"e for' nu'*er?s@ of t"e olicy?ies@ a$(ertise$ an$ /"en t"e ro$uctKs /ere

aro(e$ *y t"e Aut"orityC

T a $escrition of t"e a$(ertise'ent an$ "o/ it is use$.

T t"e 'et"o$ or 'e$ia use$ for $isse'ination of t"e a$(ertise'ent.

T file a certificate of co'liance /it" t"eir annual state'ent statin t"at5 to t"e *est of

its !no/le$e5 a$(ertise'ents $isse'inate$ *y t"e insurer or *y its inter'e$iaries$urin t"e rece$in year "a(e co'lie$ /it" t"e ro(isions of t"ese reulations an$

t"e a$(ertise'ent co$e as state$ in

reulation 12.

T +"e a$(ertise'ent reister s"all *e su*ect to insection an$ re(ie/ *y t"e Aut"ority

for content5 conte:t5 ro'inence an$ osition of reMuire$ $isclosures5 o'issions of

reMuire$ infor'ation5 etc.

Canges In Advertise.ent ?

T Any c"ane in an a$(ertise'ent /oul$ *e consi$ere$ a ne/ a$(ertise'ent.

T All t"e ro(isions of reulation 3 s"all aly to an a$(ertise'ent referre$ to in su*

reulation ?i@.

T +"e Aut"ority s"all *e infor'e$ at t"e ti'e of filin t"e a$(ertise'ent t"e e:tent of

39


40/65

c"ane t"e oriinal a$(ertise'ent

T Insurance co'any a$(ertise'ents

T (ery insurance co'any s"all *e reMuire$ to ro'inently $isclose in t"e

a$(ertise'ent an$ t"at art of t"e a$(ertise'ent t"at is reMuire$ to *e returne$ to t"e

co'any or insurance inter'e$iary or insurance aent *y a rosect or an insure$ t"e

full articulars of t"e insurance co'any5 an$ not 'erely any tra$e na'e or

'onora' or loo.

T "ere *enefits are 'ore t"an *riefly $escri*e$5 t"e for' nu'*er of t"e olicy an$

t"e tye of co(erae s"all *e $isclose$ fully.

4#


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Part 3

ICICI Prudentia- F !D"C Standard -ie

insurance

)ar+et

41


42/65

or o(er # years5 life insurance in In$ia /as $efine$ an$ $ri(en *y only one co'any Q t"e 8ife

Insurance %ororation of In$ia ?8I%@. it" t"e Insurance Reulatory an$ De(elo'ent Aut"ority

?IRDA@ Bill 1999 a(in t"e /ay for entry of ri(ate co'anies into *ot" life an$ eneral sectors

t"ere /as *oun$ to *e ne/foun$ e:cite'ent Q an$ ne/ success stories. +o$ay5 ust t"ree years

since t"eir entry5 t"eir cu'ulati(e s"are "as crosse$ 13J ?Source IRDA@5 far e:cee$in

e:ectations.

%learly insurance is on a ro/t" at". +"e ercentae of re'iu' inco'e to ;DP /"ic" /as ust

2.3J in 2###K#1 rose to 3.3J in 2##2K#3C an$ life insurance "as e'ere$ as t"e $o'inant

contri*utor to t"is ro/t".

+"e in$ustry resente$ a "ue oortunity. 8ife insurance enetration5 for instance5 /as at an

a*ys'al 22J of t"e insura*le oulation. Ho/e(er5 ri(ate layers "a(e "a$ to rise to 'any

c"allenes. +"ey /ere face$ /it" attitu$inal *arriers to/ar$s t"e cateory an$ t"e ercetion t"at

insurance /as only a ta:sa(in tool. Insurance er se "a$ lost it *asic rationale rotection. It

/asn-t surrisin t"en t"at its otential lay froen an$ une:loite$. +"e c"allene for ri(ate

insurance layers /as to c"ane t"e esta*lis"e$ cateory $ri(er an$ et custo'ers to e(aluate life

insurance as an in(est'entcu'rotection tool.

Acieve.ents

Beinnin oerations in Dece'*er 2###5 I%I%I Pru$ential-s success "as *een 'eteoric5

*eco'in t"e nu'*er one ri(ate life insurer /it"in 'ont"s of launc". +o$ay5 it "as one of t"e

larest $istri*ution net/or!s a'onst ri(ate life insurers in In$ia5 /it" *ranc"es in 4 cities. +"e

total nu'*er of olicies issue$ stan$s at 'ore t"an 7E#5### /it" a total su' assure$ in e:cess of

Rs. 16# *illion.

I%I%I Pru$ential close$ t"e financial year en$e$ arc" 315 2##4 /it" a total recei(e$ re'iu'

inco'e of Rs. 9.9 *illion5 u 13J fro' last years total re'iu' inco'e of Rs. 4.2# *illion. )e/

*usiness re'iu' inco'e s"o/s a 1#6J ro/t" at Rs. 7. *illion5 $ri(en 'ainly *y t"e

42


43/65

co'any-s rane of uniMue unitlin!e$ olicies an$ ension lans. +"e co'any-s retail 'ar!et

s"are a'onst ri(ate co'anies stoo$ at 36J5 'a!in it a clear lea$er in t"e se'ent.

+o a$$ to its ac"ie(e'ents5 in t"e year 2##3K#4 it /as a$u$e$ ost +ruste$ Pri(ate 8ife Insurer

?cono'ic +i'es ost +ruste$ Bran$ Sur(ey- *y A%)ielsen 0R;AR;@. It /as also

conferre$ t"e 0utloo! oney Q Best 8ife Insurer- a/ar$ for t"e secon$ year runnin. +"e

co'any is also rou$ to "a(e /on Sil(er at IS 2##3 for its Retire fro' /or!5 not life-

ca'ain. )ota*ly5 I%I%I Pru$ential /as also s"ortliste$ to t"e final roun$ for its Sin$oor-

ca'ain in IS 2##2.

I%I%I Pru$ential-s success is roote$ in its "iloso"y to al/ays offer t"e custo'er a c"oice. +"is

"as *een t"e $ri(in force *e"in$ its 'ultic"annel $istri*ution stratey5 /"ic" inclu$es a$(isors5

*an!s5 $irect 'ar!etin an$ cororate aents. In fact5 I%I%I Pru$ential /as t"e first life insurer to

in(est in 'ultile c"annels an$ offer t"e custo'er c"oice an$ accessC t"us re$ucin $een$ency

on any one c"annel.

I%I%I Pru$ential also 'a$e reat stri$es in t"e retire'ent solutions an$ ensions 'ar!et. +"e

co'anyFs enetration of t"e retire'ent 'ar!et /as $ri(en *y t"e focusse$ aroac" to/ar$s

creatin a/areness t"rou" a sustaine$ ca'ain Retire fro' /or!5 not life-. it"in si:

'ont"s5 t"e ca'ain re/ar$e$ I%I%I Pru$ential /it" an increase$ s"are of 23J of t"e total

ensions 'ar!et an$ 7EJ a'onst ri(ate layers.

!istor0

I%I%I Pru$ential 8ife Insurance %o'any 8i'ite$ is a 7426 oint (enture *et/een I%I%I Ban!

an$ Pru$ential lc5 >. +"e co'any *rins toet"er t"e local 'ar!et e:ertise an$ financial

strent" of I%I%I Ban! an$ Pru$ential-s international life insurance e:erience. +"e co'any

/as rante$ a %ertificate of Reistration *y t"e IRDA on )o(e'*er 245 2### an$ ei"teen $ayslater5 issue$ its first olicy on Dece'*er 12.

ro' its early $ays5 I%I%I Pru$ential see'e$ to "a(e t"e /"ere/it"al for a larescale *usiness.

By arc" 315 2##25 a little o(er a year since its launc"5 t"e co'any "a$ issue$ 1##5### olices

43


44/65

translatin into a re'iu' inco'e of aro:i'ately Rs. 152## 'illion on a su' assure$ of o(er

Rs. 23 *illion.

"en t"e co'any *ean its oerations5 t"e nee$ /as to *uil$ a *ran$ t"at /as relata*le to5

sy'*olise$ trust an$ /as easily reconise$ an$ un$erstoo$. It launc"e$ a cororate ca'ain

usin t"e t"e'e of Sin$oor- to eito'ise rotection5 trust5 toet"erness an$ all t"at is In$ianC

en$earin itself to t"e 'asses. +"e success of t"e ca'ain5 t"e callin car$ of t"e co'any-5

sa/ t"e *ran$ a/areness scores al'ost at ar /it" its 4# year ol$ co'etitor. +"e t"e'e of

rotection /as also e:ten$e$ to su*seMuent ro$uct an$ cateory secific ca'ains Q fro' c"il$

lans to retire'ent solutions Q /"ic" "i"li"t "o/ t"e co'any /ill *e /it" its custo'ers at

e(ery ste of life.

ro' $ay one5 t"e co'any "as unflinc"inly focusse$ on *ein a 'ass'ar!et layer5

$e(eloin ro$ucts5 creatin a $istri*ution net/or! an$ $eloyin resources t"at /oul$ furt"er

its oal. Aart fro' ra'in u an$ t"orou"ly trainin its a$(isors5 t"e co'any "as t/el(e

Bancassurance- artners Q t"e larest in t"e country. It s/iftly re(ise$ an$ a$$e$ to its initial

rane of ro$ucts5 ioneerin 'ar!etlin!e$ ro$ucts an$ ension lans5 to offer custo'ers t"e

'ost fle:i*le life insurance olicies in t"e country.

In e*ruary 2##45 I%I%I Pru$ential increase$ its caital *ase *y Rs. ## 'illion5 its nint" caital

"i!e5 *rinin t"e total ai$u eMuity caital to Rs. 657# 'illion. it" t"e aut"orise$ caital of

t"e co'any stan$in at Rs. 12 *illion5 I%I%I Pru$ential continues to "a(e t"e "i"est caital

*ase a'onst all life insurers in t"e country. +"e c"allene I%I%I Pru$ential no/ faces is to

retain its tonotc" osition an$ continue to $eli(er t"e finest life insurance an$ ension solutions

to its e(erro/in custo'er *ase.

Product

I%I%I Pru$ential-s ulti'ate ro'ise is financial security. A stron

*ran$ certainly *oosts sales5 *ut /it"out custo'erfrien$ly5

inno(ati(e ro$ucts5 e(en t"e *est *ran$ /oul$ not last lon. I%I%I

Pru$ential-s ro$uct rane "as *een $e(eloe$ on t"e

un$erstan$in t"at $ifferent eole "a(e t"eir o/n sets of nee$s at

(arious staes of t"eir li(es. It "as t"us *uilt a fle:i*le ortfolio of

ro$ucts t"at can *e custo'ise$ to cater to (aryin nee$s of eole

44


45/65

at eac" life stae5 an$ t"us ensure rotection in e(ery ste of life. +"e co'any-s

"iloso"y "as *een to "el custo'ers un$erstan$ t"eir financial nee$s an$ /or! closely

/it" t"e' to custo'ise a ro$uct t"at /oul$ 'eet t"is nee$. A$(isors can offer a

co'lete rane of ro$ucts Sa(ins lans5 %"il$ lans5 ar!etlin!e$ lans5 Protection

lans5 Retire'ent lans5 In(est'ent lans an$ rou lans Q an$ tailor a fle:i*le solution

to 'eet t"e custo'ers- c"anin nee$s at e(ery stae of life. In fact5 I%I%I Pru$ential

/as t"e first to un*un$le ro$uct *enefits5 ioneerin t"e concet of ri$ers- an$ soon

after intro$uce co're"ensi(e 'ar!etlin!e$ an$ retire'ent lans.

Recent Deve-o.ents

In !eein /it" its *elief t"at a "ay custo'er is t"e *est en$orse'ent5 I%I%I Pru$ential

"as e'*race$ t"e Si: Si'a- aroac" to Muality5 an e:ercise t"at *eins an$ en$s /it"

t"e custo'er Q fro' caturin "is (oice to 'easurin an$ reson$in to "is e:eriences.

+"is initiati(e is currently "elin t"e co'any i'ro(e rocesses5 turnaroun$ ti'es an$

custo'er satisfaction le(els.

Anot"er no(el intro$uction is t"e I%I%I Pru$ential 8ifestyle Re/ar$s %lu*5 In$iaFs first

re/ar$s rora''e for 8ife A$(isorsC it allo/s I%I%I Pru$ential A$(isors to re$ee'

oints for ite's ranin fro' !itc"en/are to ol$5 /"ite oo$s5 an$ e(en international"oli$ays.

Pro.otion

I%I%I Pru$ential is a case stu$y in "o/ a$(ertisin an$ 'ar!etin can lay a (ital role in

res"ain an in$ustry. It "as $e'onstrate$ "o/ an in$ustry /"ere t"e custo'er /as

not"in 'ore t"an a olicy nu'*er "as c"ane$ to one /"ere custo'er reference- rules

t"e roost.

Bran$*uil$in in a co'le: cateory li!e life insurance is an u"ill an$ 'ultifacete$

tas!. At t"e ti'e of launc"in oerations5 t"e co''unications tas! /as to *uil$

cre$i*ility5 so as to i(e t"e custo'er t"e confi$ence t"at it /as a co'any t"at coul$ *e

4


46/65

truste$ to in(est fun$s /it"-. +"e ai' /as to encourae eole to (ie/ insurance not as a

co'ulsory ta: sa(in instru'ent5 *ut as a 'eans to lea$ a /orryfree5 secure life an$ in

t"e rocess5 create t"e $ifferentiator for *ran$ I%I%I Pru$ential.

+"e *ran$ roosition for all t"e ca'ains /as reflecte$ in t"e line Sura!s"a Nin$ai

!e "ar !a$a' ar-. +"e ca'ain feature$ a sinificant co'etiti(e a$(antae5 t"e soun$

financial *ac!in an$ cre$entials of I%I%I an$ Pru$ential5 an$ s"o/case$ ro$ucts fro'

$ifferent se'ents. +"e a$(ertisin i$ea /as encasulate$ in t"e sy'*ol of rotection U

t"e Sin$oor-. +"is ca'ain contri*ute$ e:tensi(ely to raisin *ran$ a/areness an$

creatin a $istincti(e i$entity for t"e co'any.

At t"e sa'e ti'e t"e t"e'e of rotection /as carrie$ for/ar$ /it" I%I%I Pru$ential-s

Safe Pua- contest /"ere Pua Pan$als conteste$ to *e t"e Safest- Pua Pan$al. +"is

*eautifully tie$ in t"e concet of rotection /it" t"e oular local e(ent of Dura Pua.

+"e refres"inly $ifferent Retire fro' /or!5 not life- ca'ain succee$e$ in *rinin

retire'ent lannin into t"e consi$eration set of a youner taret au$ience5 an$ /on a

Sil(er ffie for its efforts. +"e 'e$ia ca'ain /as co'le'ente$ *y se'inars to srea$

a/areness a*out t"e nee$ for retire'ent lannin.

Lery recently5 t"e co'any launc"e$ a ne/ cororate ca'ain Q an e:tension of t"e

Sin$oor- co''unication Q /"ic" ai's at reassurin custo'ers t"at t"e co'any is

co''itte$ to stayin /it" t"e' t"rou" all t"e us an$ $o/ns in life5 usin 'arriae an$

t"e se(en (o/s or Saat P"eras- as a 'eta"or for co''it'ent. +"e ca'ain ai's at

strent"enin t"e *ran$ *y 'e'ora*ly *rinin out t"e co''it'ent for life- ele'ent.

As art of I%I%I Pru$ential-s continuous efforts to reac" out to custo'ers in ne/ an$

inno(ati(e /ays5 t"e co'any recently tie$ u /it" t"e or*es Si: Si'a rate$

Da**a/alla oranisation in u'*ai for a $irect 'ar!etin e:ercise.

In a uniMue effort to create a/areness a*out a ta:sa(in ro$uct5 t"e co'any attac"e$ a

creati(e of a *itten ale to u'*ai-s u*iMuitous lunc"*o:es. It /or!e$ /on$erfully

46


47/65

/it" u'*ai-s officeoers an$ one t"at translate$ into su*stantial *usiness for t"e

co'any.

Brand $a-ues

ar!et researc" re(eals t"at t"e (alues eole

associate /it" I%I%I Pru$ential are5 in$ee$5 t"ose

t"at t"e co'any "oes to roect lifelon

rotection an$ (alue for 'oney. +"e core (alue is

rotectin your lo(e$ ones5 t"rou"out life-s us

an$ $o/ns. It is a o/erful roositionC one5 /"ic"

I%I%I Pru$ential5 is ta!in into t"e 'ar!etlace.

Tings 0ou didnLt

+no, a6out

ICICI Prudentia-

1. +"e loo is t"e co'*ination of I%I%I Ban!-s I'an an$ Pru$ential-s la$y

ru$ence. +"e I'an sinifies t"e $yna'ic in$i(i$ual /it" $ri(e an$ con(iction5

/"ile Pru$ence eito'ises /ise con$uct.

2. (ery t"ree 'inutes I%I%I Pru$ential rotects one 'ore In$ian life.

47


48/65

3. I%I%I Pru$ential is t"e only In$ian life insurance co'any to "a(e an eMuity *ase

of 'ore t"an Rs. *illion.

4. I%I%I Pru$ential is t"e only life insurance co'any to i'le'ent a Si: Si'a

Muality rora''e.

. 0f t"e co'any-s 25### lus e'loyees5 less t"an J "a(e rior e:erience in

t"e life insurance in$ustry.

6. +"e a(erae ae of its e'loyees is 29 years.

Te )a+ing o India4s No: 1 Private ie Insurer

Bran$ I%I%I Pru$ential

4E


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Aency 8o/e

Te )a+ing o India4s No: 1 Private ie Insurer

I%I%I Pru$ential is a case stu$y in t"e role of 'ar!etin in res"ain an in$ustry. It

"i"li"ts "o/ an in$ustry /"ere


50/65

4. Buil$ cre$i*ility an$ trust.

Te Target Audience

Reresentin an i$eal 'i: of 'e$iu' to "i" net /ort" in$i(i$uals +"e consu'ers 'ost

$isose$ to/ar$s *uyin life insurance. i$$leae$ rofessionals5 ri'arily 'ale5

salarie$ an$ self e'loye$5 ae rou 2E 4 years5 "ouse"ol$ inco'e Rs.2#5 ### an$

a*o(e.

Creative Strateg0

+"e essence of t"e creati(e stratey +o et t"e consu'er to re loo! at Insurance as a

'eans to lea$ a /orry free life an$ not as a necessary e(il. +o t"is effect t"e core *ran$

insi"t "i"li"te$ /as As "ea$ of t"e fa'ily itFs 'y resonsi*ility to ta!e care of 'y

lo(e$ ones an$ rotect t"e' fro' t"e uncertainties of life5 su''e$ u in t"e a$(ertisin

i$ea e co(er you at e(ery ste in life ?Sura!s"aV Nin$ai !e "ar !a$a' ar5 as

interrete$ in Hin$i @. I%I%I Pru /as ositione$ as an ena*ler of rotection rele(ant to t"e

nee$s of t"e life stae t"at you are in. At t"e core of t"e co''unications stratey /as

aroriatin t"e eneric cateory *enefit ?rotection@ t"rou" its reatest 'eta"or Q

Sin$oor.

Te Creative e;ecution:

T$C

Buil$in i'ae an$ creatin a $ifferential in t"e 'ost creati(e an$ co'ellin 'anner.

+"e creati(e e:ecution "ei"tene$ t"e e'otional connect /it" t"e I%I%I Pru *ran$

#


51/65

In$ianC satisfaction of !no/in t"at one-s lo(e$ ones are rotecte$. Sy'*olic

reresentation of t"e rotector of t"e fa'ily t"rou" situations s"o/casin (arious life

staes an$ creatin en$earin i'aery of rotection an$ fa'ilial *on$in.

Press

;a(e t"e consu'er a rational an$ tani*le reason to *uy insurance first an$ secon$ly

fro' I%I%I Pru$ential. +"e ro$uct secific a$(ertisin focusse$ on c"anin t"e

re(alent ercetion a*out insurance an$ *rea!in a fe/ 'yt"s non affor$a*ility5

insurance not *ein oo$ in(est'ent otion an$ t"e 'yt" t"at insurance /as oo$ only

for ta: sa(in.

Oter Co..unications

0t"er rora's inclu$e$ $irect 'ail5 PR of co''unications ca'ain in ress & +L5

/e*site 'ar!etinC an$ $ata*ase eneration t"rou" Banc assurance c"annels.

)edia Strateg0

In a 'ar!et li!ely to *e cluttere$5 /e use$ 'ultile touc" oints to reac" t"e consu'er.

+"e role for eac" 'e$iu' /as en(isae$. +"e +L 'e$iu' /as use$ to en"ance t"e

e'otional lin! /it" t"e *ran$. Strateic use of 1 sec. e$its facilitate$ "i" freMuency

le(els. In rint5 cost er resonse rat"er t"an cost er t"ousan$ as resonses /ere

'easure$ in for' of callins. Ra$io 5 %ine'a5 Internet /ere use$ to create a 'e$ia

'ultilier effect.

Te resu-ts o co..unication eorts

Bein no 1 in a/areness an$ saliency. A/areness I%I%I Pru s"o/e$ a sinificant u'

in a/areness *et/een e* an$ Set 2##1. I'ae Hi"est score a'on all Insurance

layers inclu$in 8I%5 on i'ae ara'eters li!e safety5 'o$ernity5 ser(ice5 oo$ returns

etc. Intention to in(est )e:t only to 8I% as er researc" ?All Source Researc" *y 0R;

1


52/65

ar@. )o. of calls an$ e'ails +"ere /ere 7#5### calls at t"e call center an$ 6E2 e'ails

in t"e year 2##1.

Su. u

In ust o(er a year I%I%I Pru "as e'ere$ as In$ia-s no. 1 Pri(ate 8ife Insurance

%o'any /it" al'ost #J 'ar!et s"are of t"e ri(ate layers. Has sol$ "i"est no. 0f

olicies *ot" in (olu'e an$ (alue. aor ilestone 0(er 1##### olicies on ar 315

2##2.

HD% Stan$ar$ 8ife Insurance %o'any 8i'ite$ HD% an$ Stan$ar$ 8ife /as t"e first

oint (enture to enter t"e life insurance 'ar!et5 in Ganuary 199. In 0cto*er 199E5 t"e

oint (enture aree'ent /as rene/e$ an$ Stan$ar$ 8ife urc"ase$ 2 ercent of

2
http://images.google.co.in/imgres?imgurl=http://www.exchange4media.com/BrandspeakImages/hdfc_sml.jpg&imgrefurl=http://www.exchange4media.com/Brandspeak/brandspeak.asp?brand_id=66&h=60&w=120&sz=4&hl=en&start=6&um=1&tbnid=UG9xMi7lHXoTwM:&tbnh=44&tbnw=88&prev=/images?q=HDFC+standard+life+insurance+advertisements&svnum=10&um=1&hl=en&safe=active&sa=N


53/65

Infrastructure De(elo'ent inance %o'any 8i'ite$ ?ID%@. +"e co'any as suc"5

/as incororate$ on Auust 145 2### un$er t"e na'e of HD% Stan$ar$ 8ife Insurance

%o'any 8i'ite$. HD% are t"e 'ain s"are"ol$ers in HD% Stan$ar$ 8ife5 /it" E1.4

ercent5 /"ile Stan$ar$ 8ife o/ns 1E.6 ercent. HD% an$ Stan$ar$ 8ife "a(e a lon

an$ close relations"i *uilt uon s"are$ (alues an$ trust.

Recor$in a


54/65

A 'an is tal!in to "is uests /"ile"is /ife ser(es t"e' tea

+"e $oor oens & "is Dau"ter enters. S"e isloo!in a little $isaointe$. 0n seein "er5 t"e

at"er says


55/65

Dau"ter


56/65

%lient HD% Stan$ar$ 8ife

Bran$ HD% Stan$ar$ 8ife Insurance

0ut$oor Aency Portlan$ In$ia

+itle Secure your "o'e fore(er

HD% Stan$ar$ 8ife5 a ri(ate layer in ersonal life

nsurance5 recently ran a ca'ain to ro'ote its Ho'e 8oan Insurance Policy. Portlan$

In$ia ca'e u /it" a 3$i'ensional (ersion of a neat loo!in "ouse co'lete /it" tiles5

$oors an$ /in$o/s t"at is (isi*le in t"e su*ur*an (icinities to $ri(e "o'e t"e i$ea of

"o'e-. +"e $islay starte$ fro' Guly 7 an$ /as statione$ at (arious oints aroun$ t"e

city $urin ea! traffic "ours5 an$ it roa'e$ aroun$ t"e su*ur*s $urin t"e $ay.

+"e financial ser(ices ro$uct fro' HD% Stan$ar$ 8ife ro'ises t"e in"eritin fa'ily

t"e security of t"eir "o'e fore(er5 /it"out t"e *ur$en of t"e "o'e loan. +"e cut outs of a

c"eerful loo!in coule an$ t"eir c"il$ stoo$ outsi$e t"eir secure- "o'e.

6


57/65

+"e "o'e "as t/o front si$es to cater to t"e 'ultile traffic flo/5 an$ li"ts fro' *elo/

t"e roof an$ t"e flo/erots /ere secially lace$ to i(e t"e "ouse a realistic loo!. +"e

front ortion of t"e "ouse /"ere t"e $oor /as lace$ /it" t"e na'elate /as uttin out5

in$icatin a assae/ay li!e in any real "ouse.

Part #

7


58/65

Surve0 to +no, tat as e;cessive advertise.ent

di-uted 6rand ca--ed9 !D"C standard -ie

insurance/

E


59/65

"indings o surve0

Te


60/65

Te


61/65

'en casua--0 as+ed ,eter te e;cessive ro.otion F advertising ,as di-uting te

6rand va-ue9 tis is ,at te custo.ers re-ied:

ost of t"e custo'ers *elie(e$ t"at in to$ay-s co'etiti(e /orl$ its essential t"at t"e

custo'ers are re'in$e$ a*out t"e e:istin *ran$ & its ser(ices ti'e an$ aain.

+"is Muestion /as t"e one t"at "a$ to *e ut for t"e testing of hypothesis. +"e

con(entional aroac" to "yot"esis testin is to set u t/o "yot"esis instea$ of one in

%ES #

NO H

61


62/65

suc" a /ay t"at if one "yot"esis is true5 t"e ot"er is false. Alternati(ely5 if one

"yot"esis is false or reecte$5 t"en t"e ot"er is true or accete$ .+"ese t/o "yot"esis

are

)ull "yot"esis5 &

Alternate "yot"esis.

In t"is roect5 I "a(e ta!en t"e )ull "yot"esis to *e t"e ans/er )o- as t"e null

"yot"esis is al/ays consi$ere$ to *e neati(e as t"e ter'


63/65

15 A good otentia- -ies ,it te 6an+ to increase it4s c-iente-e 5Te .anage.ent o

te co.an0 sou-d tr0 to ro.ote tie?u and advertise a-- o its sce.es5 As

.ost o te advertise.ents re.e.6ered 60 its custo.ers are troug te-evision 9

It sou-d advertise .ore troug tis .ediu.5

25 'ord O .out is a-,a0s a good u6-icit0 .edia or success o an0 roduct or

services5 Te custo.ers do not agree tat te 6rand and services o !D"C

standard -ie insurance are getting di-uted due to e;cessive ro.otion9 te0

instead ,ou-d -i+e i it continues its ro.otion F advertising to .a+e its

resence e-t in toda04s co.etitive and cro,ded ,or-d5

Conc-usion+"e core function of t"e a$(ertisin in an insurance co'any is to enerate a/areness

a*out t"e insurance ro$ucts a'on t"e taret 'ar!et. But in t"e In$ian scenario5 /"ere

t"e insurance enetration is too lo/ as co'are$ to t"e ot"er nations5 t"e a$(ertisin

force nee$s to erfor' t"e roacti(e role in $e(eloin an insurance culture. It is

t"rou" t"e efficiency of t"e sales force of an insurance co'any t"at t"e $esira*ility an$

t"e success of a ro$uct are $eter'ine$.

In In$ian insurance 'ar!et5 t"e function is5 *asically erfor'e$ *y t"e aents. +"e

ersons $esirin to function as insurance aents "a(e to o*tain license to act as suc" fro'

t"e IRDA or an officer aut"orise$ *y t"e Aut"ority in t"is *e"alf. +"e aents aroac"

t"e rosecti(e *uyers an$ arise t"e' of t"e *asic features of t"e ro$ucts. In or$er to

$isense /it" t"e functions5 t"e aents nee$ to ossess a$eMuate !no/le$e of t"e

insurance in$ustry5 ro$ucts an$ t"e 'o$alities attac"e$ t"ere/it".

%o'etition /ill surely cause t"e 'ar!et to ro/ *eyon$ current rates5 create a *ier

ie5 an$ offer a$$itional consu'er c"oices t"rou" t"e intro$uction of ne/ ro$ucts5

ser(ices5 an$ rice otions. ,et5 at t"e sa'e ti'e5 u*lic an$ ri(ate sector co'anies

/ill *e /or!in toet"er to ensure "ealt"y ro/t" an$ $e(elo'ent of t"e sector.

%"allenes suc" as $e(eloin a co''on in$ustry co$e of con$uct5 contri*utin to a

63


64/65

co''on catastro"e reser(e fun$5 an$ c"al!in out aree'ents *et/een insurers to settle

clai's to t"e *enefit of t"e consu'er /ill reMuire concerte$ effort fro' *ot" sectors.

64


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BIBO*RAP!%

1. A"lu/alia Hareet5 IRDA to re'in$ insurance co'anies o(er a$ nor's5 inancial

:ress5 e*ruary 5 2##1.

2. Srini(asan 8alit"a5 Puttin a re'iu' on 'ar!etin $ifferentiation5 inancial

:ress5 )o(e'*er 215 2##1.

3. S"as"i$ar Aita5 "en a$s et e'otional5 %atalyst Q Business 8ine5 Ganuary 175 2##2.

4. aaine u!ta5 a: )e/ ,or! 8ife ocusin on Internal Bran$Buil$in5

inancial :ress5 Aril 45 2##2.

anae'ent aaine I%AI Pu*lication 22

n$

Guly P 24;lo*al $ucator IS Pu*lication Auust issue

A$(ertisin ania IS Pu*lication 4t"Auust Issue

26t"Auust Issue

1#t"Sete'*er Issue

HR Re(ie/ IS Pu*lication Auust Issue

)e/sPaers

+ 4t"5 11t"5 1Et"5 24t"5 31stAuust

+ 7t"5 14t"Sete'*er

Internet

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Role of Advertising in Growth of Insurance