Post on 03-Jun-2018
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Marketing Mix and Promotional Strategies
of IDBI Federal Life Insurance Co. Ltd.
Report by:
UNDER THE GUIDANCE OF
&
Asst. Branch Head
IDBI Federal Life Insurance Co Ltd.
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DECLARATIONI hereby declare that the project titled !ar"etin# !i$ and
%rootional 'trate#ies of IDBI Federal Life Insurance Co
Ltd.( Is an ori#inal project done by e and no part of thisproject is ta"en fro any source or aterial published and not
subitted to any other colle#es and uni)ersity later.
.
ACKNOWLEDGEMENT
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Firstly* I +ould li"e to e$press y sincere #ratitude to ,* IDBI
Federal Life Insurance Co Ltd.-* y %roject #uide* for his attenti)e
#uidance* insi#htful coents and ad)ice for carryin# out this %roject.
He al+ays #i)es e continuous encoura#eent and support* and
shares +ith e his "no+led#e and e$perience. I really appreciate the
effort he put in the de)elopent of e and y +or" and his help toipro)e the uality of y %roject.
I +ould li"e to e$press y eternal #ratitude and than"s to y parents
for their lo)e and support throu#hout y life. /heir support and
absolute faith in y abilities ha)e been a hu#e oti)ation. %erhaps*
ere than"s +ill not suffice for +hat they ha)e done for e.
Lastly* I +ould li"e to ac"no+led#e each and e)eryone +ho
contributed for y +or" either by directly or indirectly.
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Executive Summary
0ae1.
2oll no.1 .
'ec3 .
Organizational etail!:
0ae of the or#ani4ation: IDBI Federal Life Insurance Co Ltd.
Address of the 5r#ani4ation: ,
,
/elephone 0ubers1
!ain acti)ity of the or#ani4ation: Life Insurance.
Company guie:
Name1
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De!ignation1
Telep"one number!1
E#mail1
Title o$ t"e pro%ect: !ar"etin# !i$ and %rootional 'trate#ies focusin# on the role ofad)ertisin# and consuer beha)ior to+ards the prootional
'trate#ies of IDBI Federal Life Insurance Co Ltd.
Area o$ pro%ect: !ar"etin#.
Ob%ective o$ t"e pro%ect: /o analy4e !ar"etin# !i$ and %rootional 'trate#ies of
IDBI Federal Life Insurance Co Ltd.
De!cription o$ t"e pro%ect in brie$: !6 ain ai is to understand the !ar"etin#
'trate#y and %rootional 'trate#ies adopted by
IDBI Federal Life Insurance Co Ltd.
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&et"oology1Field +or" based on %riary and secondary data.
Recommenation! to ID'I (eeral Li$e In!urance Co Lt1
%rint & 7lectronic !edia Ad)ertiseent should be used at a hi#h le)el especially /8
ads should be used as its reach to the interior of the country is stron# and also the
"ind of influence it sho+ case on people is uch hi#her copare to other edias.
After the initial prootional capai#n the relati)e ad)anta#e of IDBI F52/I' LIF7
I0'92A0C7 Co. Ltd o)er its copetitor should be hi#hli#hted.
Hoardin#s at prie areasshould be used.
/he ost iportant of all is to create a+areness about copany:s product as +ell as
a brand in the ar"et is )ery necessary.
/he copany can use celebrity to create a+areness about the brand and also can
collaborate +ith soe production houses of fils and tele)ision serials+hich can
reach people in ass.
C O N T E N T
Title
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1. Brief about Insurance Industry.
;. Challen#es facin# Insurance Industry.
3. %resent scenario of Insurance industry
.4. Copany %rofile.
. Copetitors.
=. !ar"etin# !i$ in IDBI federal life insurance copany.
7. Brief about IDBIfederal products.
8. IDBIfederal promotional strategies.
9. Brand a+areness of IDBI federal life insurance co
ltd.
?. Recommendations.
. Conclusion.
;. Reference.
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I0/25D9C/I50
@here)er there is uncertainty there is ris". @e do not ha)e any control o)er
uncertainties +hich in)ol)es financial losses. /he ris"s ay be certain e)ents li"e death*
pension* retireent or uncertain e)ents li"e theft* fire* accident* etc.
Insurance is a financial ser)ice for collectin# the sa)in#s of the public and pro)idin# the
+ith ris" co)era#e. /he ain function of Insurance is to pro)ide protection a#ainst the
possible chances of #eneratin# losses. It eliinates +orries and iseries of losses by
destruction of property and death. It also pro)ides capital to the society as the funds
accuulated are in)ested in producti)e heads.
Types of Insurance:
. Life Insurance 3 Insurance #uaranteein# a specific su of oney to a desi#nated
beneficiary upon the death of the insured* or to the insured if he or she li)es beyond a
certain a#e.
;. Health Insurance 3 Insurance a#ainst e$penses incurred throu#h illness of the insured.
. Liability Insurance 3 /his insures property such as autoobiles* property and
professionalbusiness ishaps.
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C"allenge! $acing In!urance Inu!try T"reat o$ Ne) Entrant!: /he insurance industry has been buddin# +ith ne+
entrants e)ery other day. /herefore the copanies should car)e out niche areas such
that the threat of ne+ entrants i#ht not be a hindrance. /here is also a chance that
the bi# players i#ht suee4e the sall ne+ entrants.
*o)er o$ Supplier!:/hose +ho are supplyin# the capital are not that bi# a threat.
For instance* if soeone as a )ery talented insurance under+riter is presently+or"in# for a sall insurance copany* there e$ists a chance that any bi# player
+illin# to enter the insurance industry i#ht entice that person off.
*o)er o$ 'uyer!:0o indi)idual is a bi# threat to the insurance industry and bi#
corporate houses ha)e a lot ore ne#otiatin# capability +ith the insurance
copanies. Bi# corporate clients li"e airlines and pharaceutical copanies pay
illions of dollars e)ery year in preius.
Availability o$ Sub!titute!:/here e$ist a lot of substitutes in the insurance industry.
!ajorly* the lar#e insurance copanies pro)ide siilar "inds of ser)ices be it auto*
hoe* coercial* health or life insurance.
@ith the si4e of +orlds population reachin# #i#antic proportions* #lobal insuranceis also
#ainin# in stature. %ri)ate as +ell #o)ernent insurance a#encies around the +orld are
runnin# for insurin# li)es of illions ,and in the process insurin# their o+n businesses
ore-.
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In fact* the insurance industryis a "ey coponent of the +orld econoy today o+in# to its
preius* its in)estent and* abo)e all* the social and econoic role it plays in co)erin#
personal and business ris"s.
(inancial viability o$ in!urance companie!
Ho+e)er* althou#h the insurance industry is a flourishin# in +orld econoy today* one
need to "eep in ind that financial )iabilitystability of the insurance copany is a ajor
consideration at the tie of purchasin# insurance contract. /he )iability factor is iportantbecause any a ties* an insurance preiu paid currently pro)ides co)era#e for losses in
distant future and there are instances +here a nuber of insurance copanies ha)e #one
insol)ent* thus lea)in# their policyholders +ith little helpful or no co)era#e. /herefore*
e)en if the #lobal industry is stren#thenin# ore and ore* the +ea" lin"s are also co3
e$istent and blind faith can lead to a se)ere do+nfall. /here are also independent ratin#
a#enciesfor insurance copanies +hich could be helpful in pro)idin# sound inforation
on financial )iability of )arious insurance copanies.
&ar+eting in In!urance
Insurance coes under the ser)ice sector and +hile ar"etin# this ser)ice* due care is to be
ta"en in uality product and custoer satisfaction. @hile ar"etin# the ser)ices* it is also
pertinent that they thin" about the inno)ati)e prootional easures. It is not sufficient that
you perfor +ell but it is also iportant that you let others "no+ about the uality of your
positi)e contributions.
/he creati)ity in the prootional easures is the need of the hour. /he ad)ertiseent*
public relations* +ord of outh counication needs due care and personal sellin#
reuires intensi)e care.
/here are insurance ar"etin# strate#ies that can ta"e any insurance a#ency fro ediocre
to success +hen utili4ed correctly. Hence it is necessary that an insurance copany
foruli4e their ar"etin# strate#ies +ith lot of thou#ht and dili#ence to capture the
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2efors ha)e helped to achie)e rapid #ro+th in critical areas and sustain the o)er a
period of tie throu#h channeli4ed strate#ies.
%ost refors* the nuber of players ha)e increased fro to ;; players presently
re#istered under I2DA,I0'92A0C7 27E9LA/526 A0D D787L5%!70/ A9/H52I/6 5F
I0DIA-.
Company Profile
IDBI Federal Life Insurance Co Ltd is a joint )enture of ID'I 'an+ 3 India:s preier
de)elopent and coercial ban"* (eeral 'an+3 one of India:s leadin# pri)ate sector
ban"s and Agea! In!urance International 3 a ultinational insurance #iant* based out of
7urope.
In this )enture* IDBI o+ns G euity +hile Federal Ban" and A#eas o+n ;= euity
each. IDBI Federal launched its first set of products across India in !arch ;??G* after
recei)in# the reuisite appro)als fro the Insurance 2e#ulatory De)elopent Authority,I2DA-.
In just fi)e onths of inception* IDBI Federal becae one of the fastest #ro+in# ne+
insurance copanies to #arner 2s ?? crores in preius.
As on !arch st* ;??* the Copany had collected ore than ;G crores in preius*
throu#h o)er GJ*??? policies and o)er 2s ;G; crores in 'u Assured. /he Copany
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offers its ser)ices throu#h a )ast nation+ide net+or" across the branches of IDBI Ban" and
Federal Ban"* in addition to a si4eable net+or" of ad)isors and partners.
IDBI Ban" Ltd continues to be* since its inception* India:s preier industrial de)elopentban". Created in = to support India:s industrial bac"bone* IDBI Ban" has since e)ol)ed
into a po+erhouse of industrial and retail finance. /oday* it is aon#st India:s foreost
coercial ban"s* +ith a +ide ran#e of inno)ati)e products and ser)ices* ser)in# retail
and corporate custoers in all corners of the country fro =G Branches ? A/!s.
/he Ban" offers its custoers an e$tensi)e ran#e of di)ersified ser)ices includin# project
financin#* ter lendin#* +or"in# capital facilities* lease finance* )enture capital* loan
syndication* corporate ad)isory ser)ices and le#al & technical ad)isory ser)ices to its
corporate clients as +ell as ort#a#es and personal loans to its retail clients.
As part of its de)elopent acti)ities* IDBI Ban" has been instruental in sponsorin# the
de)elopent of "ey institutions in)ol)ed in India:s financial sector such as the 'ecurities
and 7$chan#e Board of India ,'7BI-* 0ational 'toc" 7$chan#e of India Liited ,0'7- and
0ational 'ecurities Depository Ltd.
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Federal Ban" is a scheduled coercial ban" founded in .Federal Ban" is one of
India:s leadin# pri)ate sector ban"s* +ith a doinant presence in the state of Kerala. It has
a stron# net+or" of o)er =; Branches* =J A/!s spread across India. /he Ban" pro)ides
o)er four illion retail custoers +ith a +ide )ariety of financial products. Federal Ban" isone of the first lar#e Indian ban"s to ha)e an entirely autoated and interconnected branch
net+or".
/he Ban" has a +ide ran#e of ser)ices li"e Internet Ban"in#* !obile Ban"in#* /ele
Ban"in#* Any @here Ban"in#* debit cards* online bill payent and call centre facilities to
offer round3the3cloc" ban"in# con)enience to its custoers.
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/he Ban" has been a pioneer in pro)idin# inno)ati)e technolo#ical solutions to its
custoers* ha)in# +on se)eral a+ards li"e the a+ard for Best 9se of I/ in 2etail Ban"in#
by IBA* /FCI and Infosys.
A#eas ran"s aon# 7urope:s top ;? financial institutions and is a reputed international
brand in financial ser)ices. 7uropean financial ser)ices pro)ider en#a#ed in ban"in# and
insurance +ith a presence in o)er ? countries.
A#eas has subsidiaries in France* Eerany and Hon# Kon#. A#eas has a trac" record inde)elopin# partnerships +ith stron# financial institutions and "ey distributors in different
ar"ets around the +orld and successfully operates Italy* %ortu#al* China* !alaysia* India
and /hailand. A#eas eploys ore than *??? people and has annual inflo+s of alost
792 G billion.
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Milestones
!arch ;??G IDBI Federal starts operations +ith t+o products Hoesurance &
@ealthsurance.
Au#ust ;??G IDBI Federal becoes one of the fastest #ro+in# ne+ life insurers to
collect preius +orth 2s ?? crores.
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5ctober ;??G IDBI Federal launches Bondsurance
Manuary ;?? IDBI @ealthsurance Cup ;?? India )s 'ri Lan"a held in 'ri Lan"a.
!arch ;?? collected preiu of o)er ;G corers and GJ*??? policies and a 'u
assured of 2s ;G; crores since inception
0o)eber ;?? IDBI Federal launches Incoesurance
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/he !ission
@e ai to be reco#ni4ed as a leadin# pro)ider of +ealth ana#eent* protection and
retireent propositions that satisfy the needs of and add )alue to our "ey custoer
se#ents.
@e shall continually stri)e to enhance the custoer e$perience* in relationship
ana#eent and ser)ice deli)ery* and interact +ith our custoers in the ost con)enient
and cost effecti)e anner.
@e shall be transparent in our dealin#s and act +ith inte#rity.
@e shall in)est in and build uality huan capital in order to achie)e our ission.
8ision/o be a custoer centric channel* +hile settin# benchar"s in the life insurance industry*
in ters of presence* producti)ity and profitability.
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Copetitors of IDBI Federal Life Insurance co. Ltd.
. Bajaj Allian4 Life Insurance Copany Liited ;?. A7E50 2eli#are Life Insurance Copany
Liited ;. Birla 'un Life Insurance Co. Ltd ;. DLF %raerica Life Insurance Co.
Ltd.
. HDFC 'tandard Life Insurance Co. Ltd ;;. 'tar 9nion Dai3ichi Life Insurance Cop. Ltd.
. ICICI %rudential Life Insurance Co. Ltd.
. I0E 8ysya Life Insurance Copany Ltd.
=. Life Insurance Corporation of India
J. !a$ 0e+ 6or" Life Insurance Co. Ltd
G. !et Life India Insurance Copany Ltd.
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. Kota" !ahindra 5ld !utual Life Insurance Liited
?. 'BI Life Insurance Co. Ltd
. /ata AIE Life Insurance Copany Liited
;. 2eliance Life Insurance Copany Liited.
. A)i)a Life Insurance Co. India %)t. Ltd.
. 'ahara India Life Insurance Co* Ltd.
. 'hrira Life Insurance Co* Ltd.
=. Bharti ANA Life Insurance Copany Ltd.
J. Future Eenerali Life Insurance Copany Ltd.
. Canara H'BC 5riental Ban" of Coerce Life Insurance Co. Ltd
.
&AR,ETIN- &I. IN ID'I (eeral Li$e In!urance CoLt
/he ter insurance ar"etin# refers to the ar"etin# of Insurance ser)ices +ith the ai to
create custoer and #enerate profit throu#h custoer satisfaction. /he Insurance
!ar"etin# focuses on the forulation of an ideal i$ for Insurance business so that the
Insurance or#ani4ation sur)i)es and thri)es in the ri#ht perspecti)e.
/he ar"etin# i$ is the cobination of ar"etin# acti)ities that an or#ani4ation en#a#es
in so as to best eet the needs of its tar#eted ar"et. /he Insurance business deals in
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sellin# ser)ices and therefore due +ei#ht a#e in the foration of ar"etin# i$ for the
Insurance business is needed.
/he ar"etin# i$ includes sub3i$es of the J %:s of ar"etin# i.e. the product* its price*
place* prootion* people* process & physical attraction. /he abo)e entioned J %:s can be
used for ar"etin# of Insurance products* in the follo+in# anner1
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*ROD/CT:
A product eans +hat +e produce. If +e produce #oods* it eans tan#ible product and
+hen +e produce or #enerate ser)ices* it eans intan#ible ser)ice product. A product is
both +hat a seller has to sell and a buyer has to buy. /hus* an Insurance copany sells
ser)ices and therefore ser)ices are their product. @hen a person or an or#ani4ation buys an
Insurance policy fro the insurance copany* he not only buys a policy* but alon# +ith it
the assistance and ad)ice of the a#ent* the presti#e of the insurance copany and the
facilities of clais and copensation. It is natural that the users e$pect a reasonable return
for their in)estent and the insurance copanies +ant to a$ii4e their profitability.
Hence* +hile decidin# the product portfolio or the product3i$* the ser)ices or the schees
should be oti)ational. IDBI Federal pro)ides any products +hich cater to the needs of
the Indian custoers. IDBI Federal products13
@7AL/H'92A0C7
I0C5!7'92A0C7
B50D'92A0C7
/72!'92A0C7
H7AL/H'92A0C7
27/I27'92A0C7
E259% !IC25'92A0C7
H5!7'92A0C7
L5A0'92A0C7
CHILD'92A0C7
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0EALT1S/RANCE:
/he @ealthsurance !ilestone %lan is a uniue Insured @ealth %lan desi#ned to help cross
different ilestones in one:s life. It enables custoers to sa)e and build +ealth under the
protection of Insurance to eet their financial #oals. /he @ealthsurance !ilestone %lanoffers a +ide ran#e of In)estent options* Insurance options and unatched fle$ibility that
allo+s custoers to custoi4e a plan suited to their needs. Custoers can plan for their
ilestones li"e copletion of school education for their child* a arria#e* acuisition of a
ne+ house and so on. /his %lan coes +ith a +ide ran#e of in)estent options and J
insurance benefits 3 all pac"a#ed +ith a lo+ char#e structure and unatched fle$ibility.
INCO&ES/RANCE:
IDBI Federal Incoesurance 7ndo+ent and !oney Bac" %lan is loaded +ith lots of
benefits +hich ensure that you #et Euaranteed Annual %ayout alon# +ith insurance
protection +hich +ill help you to reach you #oals +ith full confidence. Incoesurance %lan
is )ery fle$ible and allo+s you to custoise your %lan as per your indi)idual and faily:s
future reuireents. !oreo)er it also allo+s you to choose %reiu %ayent %eriod*
%ayout %eriod* %ayout 5ptions and ore.
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'ONDS/RANCE:
/he IDBI Federal Bondsurance Ad)anta#e %lan is a sin#le preiu plan +here you need
to a"e just a one3tie in)estent. 6ou can choose a !aturity %eriod of * J* ?* or ;?
years. At the end of the chosen period* you +ill recei)e a #uaranteed aturity aount. In
case of death of the insured person before the !aturity Date* a #uaranteed Death Benefit
+ill be paid.
TER&S/RANCE:
IDBI Federal /ersurance %rotection %lan ,/ersurance- coes +ith three co)er options
+hich you can select on the basis your reuireent. /ersurance is desi#ned +ith a host of
benefits & options aied at satisfyin# your e)ery need. It not only allo+s you to custoise
your plan as per your indi)idual and faily:s needs* it also coes +ith a host of benefits
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li"e con)enient insurance co)er options* fle$ible preiu payent ters* choice of policy
ter and lots ore fle$ible options.
1EALT1S/RANCE:
%resentin# the IDBI Federal Healthsurance Hospitalisation and 'ur#ical %lan. If you:rea#ed G years to years and currently in #ood health* this ne+ insurance plan is desi#ned
to help you ana#e the e$tra financial burden that coes +ith hospitalisation* by pro)idin#
a +ide ran#e of attracti)e benefits.
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RETIRES/RANCE:
A retireent plan desi#ned to accuulate oney to aid a cofortable retireent. /he plan
pro)ides a #uaranteed return on your in)estent and #ro+s steadily o)er the years to
ensure that you ha)e a corpus on your retireent date* #uaranteed.
-RO/* &ICROS/RANCE:
IDBI Federal Eroup !icrosurance %lan pro)ides affordable life insurance co)er to #roups.
/his plan is e$treely useful to !icro Finance Institutions* 'elf Help Eroups and 0E5s to
insure the li)es of their #roup ebers and thus pro)ide security to the #roup ebers:
failies. /he plan can also be used for pro)idin# loan protection to the #roup ebers:
failies.
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1O&ES/RANCE:
IDBI Federal Hoesurance %lan is a ort#a#e reducin# ter assurance plan !2/A*
+hich offers protection to your hoe fro your hoe loan. /he %lan pro)ides a co)ereual to the outstandin# balance of your hoe loan a#ainst any unfortunate e)ents that ay
occur to you. /his plan #i)es you the option of a 'in#le %reiu.
LOANS/RANCE:
Loansurance is a cost3effecti)e +ay to ensure that the outstandin# debt is settled in the
unfortunate e)ent of death of the insured eber. /his ter assurance plan pro)ides co)er
to a person directly liable for loan repayent ,and the partners* in case of a partnership-* as
per the benefit schedule
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C1ILDS/RANCE:
@hether your child +ants to be a doctor* an en#ineer* an !BA* a sportsan* a perforin#
artist* or dreas of bein# an entrepreneur* the IDBI Federal Childsurance Drea builderInsurance %lan +ill "eep you future3ready a#ainst both* chan#in# dreas and life:s t+ists.
It allo+s you to create build and ana#e +ealth by pro)idin# se)eral choices and #reat
fle$ibility so that your plan eets your specific needs. Ho+e)er* +hat a"es Childsurance
a ust3ha)e for any parent +ho is loo"in# to a"e their child:s future shoc"3proof is its
po+erful insurance benefits. Childsurance allo+s you to protect your child plan +ith triple
insurance benefits so that your +ealth3buildin# efforts reain unaffected by unforeseen
e)ents and your child:s future #oals can be achie)ed +ithout any hindrance.
Despite all these tailored products there is still scope for ipro)eent in this field. /he
Eroup Insurance schee is reuired to be prooted* the Crop Insurance is reuired to be
e$panded and the ne+ schees and policies for the )illa#ers or the rural population are
to be included. . /he introduction of 2ural Career A#ents 'chee has been foundinstruental in inducin# the rural prospects but the process is at infant sta#e and reuires
ore professional e$cellence. 'o there is lot of potential in insurance sector +hich is
+aitin# to be uncor"ed hence re)ealin# to the econoy the benefits of insurance industry.
/he policya"ers are reuired to acti)ate the efforts. It +ould be prudent that the LIC is
allo+ed to pursue a policy of direct in)estent for rural de)elopent. In)estent in
Eo)ernent securities should be stopped and the in)estent should be channeli4ed
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in pri)ate sector for a$ii4in# profits. In short* the forulation of product3i$ should be
in the face of inno)ati)e product strate#y. @hile initiatin# the inno)ati)e process it
is necessary to ta"e into consideration the strate#ies adopted by pri)ate and
forei#n insurance copanies.
*RICIN-:
In the insurance business the pricin# decisions are concerned +ith1
i- /he preiu char#ed a#ainst the policies
ii- Interest char#ed for defaultin# the payent of preiu and credit facility* and
iii- Coission char#ed for under+ritin# and consultancy acti)ities.
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@ith a )ie+ of influencin# the tar#et ar"et or prospects the forulation of pricin#
strate#y becoes si#nificant. In a de)elopin# country li"e India +here the disposable
incoe in the hands of prospects is lo+* the pricin# decision also #o)erns the
transforation of potential policyholders into actual policyholders. /he strate#ies ay be
hi#h or lo+ pricin# "eepin# in )ie+ the le)el or standard of custoers or the
policyholders. /he pricin# in insurance is in the for of preiu rates.
/he three ain factors used for deterinin# the preiu rates under a life insurance plan
are ortality* e$pense and interest. /he preiu rates are re)ised if there are any
si#nificant chan#es in any of these factors.
!ortality ,deaths in a particular area-1 @hen decidin# upon the pricin# strate#ythe a)era#e rate of ortality is one of the ain considerations. In a country li"e
'outh Africa the threat to life is )ery iportant as it is played by host of diseases.
7$penses1 /he cost of processin#* coission to a#ents* reinsurance copanies
as +ell as re#istration are all incorporated into the cost of instalents and preiu
su and fors the inte#ral part of the pricin# strate#y.
Interest1 /he rate of interest is one of the ajor factors +hich deterine people:s
+illin#ness to in)est in insurance. %eople +ould not be +illin# to put their funds to
in)est in insurance business if the interest rates pro)ided by the ban"s or otherfinancial instruents are uch #reater than the percei)ed returns fro the insurance
preius.
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*LACE:
/his coponent of the ar"etin# i$ is related to t+o iportant facets
i- !ana#in# the insurance personnel* and
ii- Locatin# a branch.
/he ana#eent of a#ents and insurance personnel is found si#nificant +ith the )ie+point
of aintainin# the nors for offerin# the ser)ices. /his is also to process the ser)ices to the
end user in such a +ay that a #ap bet+een the ser)ices3 proised and ser)ices offered is
brid#ed o)er. In a ajority of the ser)ice #eneratin# or#ani4ations* such a #ap is found
e$istent +hich has been instruental in a"in# +orse the ia#e proble. /he
transforation of potential policyholders to the actual policyholders is a difficult tas" that
depends upon the professional e$cellence of the personnel.
/he a#ents and the rural career a#ents actin# as a lin"* lac" professionalis. /he front3line
staff and the branch ana#ers also are found not assi#nin# due +ei#ht a#e to the
de#eneration process. /he insurance personnel if not ana#ed properly +ould a"e all
efforts insensiti)e. 7)en if the policy a"ers a"e pro)ision for the uality up #radation*
the proised ser)ices hardly reach to the end users.
It is also essential that they ha)e rural orientation and are +ell a+are of the lifestyles of the
prospects or users. /hey are reuired to be #i)en adeuate incenti)es to sho+ their
e$cellence. @hile recruitin# a#ents* the branch ana#ers need to prefer local persons and
pro)ide the trainin# and conduct seinars. In addition to the a#ents* the front3line staff
also needs an intensi)e trainin# pro#raed to focus ainly on beha)ioral
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9nderstandin# the custoer better allo+s in desi#nin# appropriate products. Bein# a
ser)ice industry +hich in)ol)es a hi#h le)el of people interaction* it is )ery iportant to
use this resource efficiently in order to satisfy custoers. /rainin#* de)elopent and stron#
relationships +ith interediaries are the "ey areas to be "ept under consideration. /rainin#
the eployees* use of I/ for efficiency* both at the staff and a#ent le)el* is one of the
iportant areas to loo" into. IDBI Federal has created )arious financial products +hich
ha)e been tailored accordin# to the needs of the custoers. /hey ha)e o)er thousands of
sales personnel +ho are trained efficiently to brid#e in the #ap bet+een the custoers and
the copany.
*ROCESS:/he process should be custoer friendly in insurance industry. /he speed and accuracy of
payent is of #reat iportance. /he processin# ethod should be easy and con)enient to
the custoers. Instalent schees should be strealined to cater to the e)er #ro+.
%rootion
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/he insurance ser)ices depend on effecti)e prootional easures. In a country li"e India*
the rate of illiteracy is )ery hi#h and the rural econoy has doinance in the national
econoy. It is essential to ha)e both personal and ipersonal prootion strate#ies.
In prootin# insurance business* the a#ents and the rural career a#ents play an iportant
role. Due attention should be #i)en in selectin# the prootional tools for a#ents and rural
career a#ents and e)en for the branch ana#ers and front line staff. /hey also ha)e tobe #i)en proper trainin# in order to create ipulse buyin#. Ad)ertisin# and %ublicity*
or#ani4ation of conferences and seinars* incenti)e to policyholders are ipersonal
counication. Arran#in# Kirtans* e$hibitions* participation in fairs and festi)als* rural
+all paintin#s and publicity dri)e throu#h the obile publicity )an units +ould be effecti)e
in creatin# the ipulse buyin# and the rural prospects +ould be easily transfored into
actual policyholders.
ID'I (eeral "a! al!o aopte variou! promotional !trategie! li+e:
Coercial Ads
%rint Ads
7)ents
%ersonnel sellin#
@ord of outh
)iral ar"etin#
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/hey ha)e brou#ht out any interestin# and huorous ads of their products such as
@ealthsurance* Incoesurance* 2etiresurance etc +hich has #ot )ery #ood response fro
custoers. /hey ha)e also conducted e)ents +ith an ai to create interest around financial
plannin# +ith Life Insurance at branches +hich +as critical to #ettin# prospects interested
in IDBI Federal products.
Buildin# an en#a#eent process around the solution bein# offered #i)es an additional
boost to this cause. 'pellin# Bee +as a specially created spellin# contest created to connect
+ith children. /he philosophy of this odule hin#ed around a"in# learnin# fun. /he
e)ent +as tied to coincide +ith Children:s day in 0o)eber ;??. /he spellin#s to be
copleted re)ol)ed around )isual and )erbal cues to +ords related to sa)in#* oney and
finance and aied at teachin# children the )alue of oney early in life.
/he en#a#eent started +ith the spellin# contest for "ids and #a)e their I2!s a natural
openin# for a discussion +ith parents about financial plannin# for their children:s future
needs li"e education. /his is a sort of channel ar"etin# +hich IDBI Federal had adopted
to create a+areness as +ell as to educate the future #eneration about the copany and the
iportance of sa)in#.
Also IDBI Federal in)ol)ed thesel)es in de)elopin# their business by joinin# hands +ith
'A!HI/A* a counity de)elopent or#ani4ation based out of Bhopal +hich +or"s
to+ards brin#in# financial literacy to the underpri)ile#ed population in !adhya %radesh.
/hey belie)e that such financial literacy aon# the under ban"ed population +ill help brin#
a holistic chan#e in the +ay people percei)e and understand financial products and their
utility at )arious sta#es in their life.
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'ran a)arene!! o$ ID'I (eeral Li$e In!urance Co
Lt2
A)arene!! *ercentage o$ 3ariou! ID'I (eeral prouct!:#
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*eople !een Averti!ement O$ ID'I (eeral Li$e In!urance Company
$rom:#
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Current &ar+et S"are o$ LI(E INS/RANCE CO&*ANIES:#
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Recommenation!
%rint & 7lectronic !edia Ad)ertiseent should be used at a hi#h le)el especially /8
ads should be used as its reach to the interior of the country is stron# and also the
"ind of influence it sho+ case on people is uch hi#her copare to other edias.
After the initial prootional capai#n the relati)e ad)anta#e of IDBI F7D72AL
LIF7 I0'92A0C7 Co Ltd. o)er its copetitor should be hi#hli#hted.
Hoardin#s at prie areasshould be used.
/he ost iportant of all is to create a+areness about copany:s product as +ell as
a brand in the ar"et is )ery necessary.
/he copany can use celebrity to create a+areness about the brand and also can
collaborate +ith soe production houses of fils and tele)ision serials+hich can
reach people in ass.
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CONCL/SION
@ith re#ard to insurance copanies* consuers respond at different rates* dependin# on
the consuers characteristics. Hence Insurance copanies should try to brin# their
ne+ product to the attention of potential early adopters.
a- Due to the intense copetition in the life insurance ar"et* the life insurance 2eturn onin)estent* copany reputation and preiu outflo+ are ost preferred attributes
that are e$pected by the respondents. Hence #reater focus should be #i)en to these
attributes copanies ha)e to adopt better strate#ies to attract ore custoers.
b- Keepin# the cost* uality and return on in)estent in tact is necessary in order to tac"le
the copetition.
c- Life insurance products are ta"en ainly by iddle and hi#her incoe #roup. Hence
they should be re#arded as ai tar#eted incoe #roups. Life insurance products+hich are suitable for lo+er incoe #roup should also be released so that the ar"et
share increases.
d-- return on in)estent* copany reputation and preiu outflo+ are ost preferred
attributes that are e$pected by the respondents. Hence #reater focus should be #i)en
to these attributes.
e- %ri)ate life insurance copanies should adopt effecti)e prootional strate#ies to
increase the a+areness le)el aon# the consuers.
f- Life insurance copanies should as" for their consuer feedbac" to "no+ +hether the
consuers are really satisfied or dissatisfied +ith the ser)ice and product of the
copanies. If they are dissatisfied* then the reasons for dissatisfaction should be
found out and should be corrected in future.
#- /he LIC brand nae has earned a lot of #ood+ill and enjoys hi#h brand euity. As
there is intense copetition in life insurance ar"et* LIC should +or" hard to
aintain its top position and offer better ser)ice and product.
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References!
Websites
o +++.idbifederal.co
o +++.irda.#o).in
http://www.idbifederal.com/http://www.irda.gov.in/http://www.idbifederal.com/http://www.irda.gov.in/