“Marketing Mix and ProMotional StrategieSof idBi federal life inSurance co. ltd.”Report by: UNDER THE GUIDANCE OF < > & <> Asst. Branch Head IDBI Federal Life Insurance Co Ltd. DECLARATION
I hereby declare that the project titled “Marketing Mix andPromotional Strategies of IDBI Federal Life Insurance CoLtd.” Is an original project done by me and no part of thisproject is taken from any source or material published and notsubmitted to any other colleges and university later. . ACKNOWLEDGEMENTFirstly, I would like to express my sincere gratitude to <> (<>, IDBIFederal Life Insurance Co Ltd.), my Project guide, for his attentiveguidance, insightful comments and advice for carrying out this Project.
He always gives me continuous encouragement and support, andshares with me his knowledge and experience. I really appreciate theeffort he put in the development of me and my work and his help toimprove the quality of my Project.I would like to express my eternal gratitude and thanks to my parentsfor their love and support throughout my life. Their support andabsolute faith in my abilities have been a huge motivation. Perhaps,mere thanks will not suffice for what they have done for me.Lastly, I would like to acknowledge each and everyone whocontributed for my work either by directly or indirectly.
Executive SummaryName:.Roll no.: .Sec- .Organizational details:Name of the organization: IDBI Federal Life Insurance Co Ltd.Address of the Organization: , ,Telephone Numbers:Main activity of the organization: Life Insurance.Company guide: Name:
Designation: Telephone numbers: E-mail:Title of the project: Marketing Mix and Promotional Strategies focusing on the role of advertising and consumer behavior towards the promotional Strategies of IDBI Federal Life Insurance Co Ltd.Area of project: Marketing.Objective of the project: To analyze Marketing Mix and Promotional Strategies of IDBI Federal Life Insurance Co Ltd.Description of the project in brief: MY main aim is to understand the Marketing Strategy and Promotional Strategies adopted by IDBI Federal Life Insurance Co Ltd.Methodology: Field work based on Primary and secondary data.
Recommendations to IDBI Federal Life Insurance Co Ltd: • Print & Electronic Media Advertisement should be used at a high level especially TV ads should be used as its reach to the interior of the country is strong and also the kind of influence it show case on people is much higher compare to other medias. • After the initial promotional campaign the relative advantage of IDBI FORTIS LIFE INSURANCE Co. Ltd over its competitor should be highlighted. • Hoardings at prime areas should be used. • The most important of all is to create awareness about company’s product as well as a brand in the market is very necessary. • The company can use celebrity to create awareness about the brand and also can collaborate with some production houses of films and television serials which can reach people in mass. CONTENTTitle 1. Brief about Insurance Industry. 2. Challenges facing Insurance Industry.
3. Present scenario of Insurance industry. 4. Company Profile. 5. Competitors. 6. Marketing Mix in IDBI federal life insurance company. 7. Brief about IDBI federal products. 8. IDBI federal promotional strategies. 9. Brand awareness of IDBI federal life insurance co ltd. 10. Recommendations. 11. Conclusion. 12. Reference. INTRODUCTION Wherever there is uncertainty there is risk. We do not have any control overuncertainties which involves financial losses. The risks may be certain events like death,pension, retirement or uncertain events like theft, fire, accident, etc.
Insurance is a financial service for collecting the savings of the public and providing themwith risk coverage. The main function of Insurance is to provide protection against thepossible chances of generating losses. It eliminates worries and miseries of losses bydestruction of property and death. It also provides capital to the society as the fundsaccumulated are invested in productive heads.Types of Insurance: 1. Life Insurance - Insurance guaranteeing a specific sum of money to a designated beneficiary upon the death of the insured, or to the insured if he or she lives beyond a certain age. 2. Health Insurance - Insurance against expenses incurred through illness of the insured. 3. Liability Insurance - This insures property such as automobiles, property and professional/business mishaps. Challenges facing Insurance Industry • Threat of New Entrants: The insurance industry has been budding with new entrants every other day. Therefore the companies should carve out niche areas such that the threat of new entrants might not be a hindrance. There is also a chance that the big players might squeeze the small new entrants. • Power of Suppliers: Those who are supplying the capital are not that big a threat. For instance, if someone as a very talented insurance underwriter is presently
working for a small insurance company, there exists a chance that any big player willing to enter the insurance industry might entice that person off. • Power of Buyers: No individual is a big threat to the insurance industry and big corporate houses have a lot more negotiating capability with the insurance companies. Big corporate clients like airlines and pharmaceutical companies pay millions of dollars every year in premiums. • Availability of Substitutes: There exist a lot of substitutes in the insurance industry. Majorly, the large insurance companies provide similar kinds of services – be it auto, home, commercial, health or life insurance.With the size of worlds population reaching gigantic proportions, global insurance is alsogaining in stature. Private as well government insurance agencies around the world arerunning for insuring lives of millions (and in the process insuring their own businessesmore).In fact, the insurance industry is a key component of the world economy today owing to itspremiums, its investment and, above all, the social and economic role it plays in coveringpersonal and business risks. Financial viability of insurance companiesHowever, although the insurance industry is a flourishing in world economy today, oneneed to keep in mind that financial viability/stability of the insurance company is a majorconsideration at the time of purchasing insurance contract. The viability factor is importantbecause many a times, an insurance premium paid currently provides coverage for losses indistant future and there are instances where a number of insurance companies have goneinsolvent, thus leaving their policyholders with little helpful or no coverage. Therefore,
even if the global industry is strengthening more and more, the weak links are also co-existent and blind faith can lead to a severe downfall. There are also independent ratingagencies for insurance companies which could be helpful in providing sound informationon financial viability of various insurance companies. Marketing in InsuranceInsurance comes under the service sector and while marketing this service, due care is to betaken in quality product and customer satisfaction. While marketing the services, it is alsopertinent that they think about the innovative promotional measures. It is not sufficient thatyou perform well but it is also important that you let others know about the quality of yourpositive contributions.The creativity in the promotional measures is the need of the hour. The advertisement,public relations, word of mouth communication needs due care and personal sellingrequires intensive care.There are insurance marketing strategies that can take any insurance agency from mediocreto success when utilized correctly. Hence it is necessary that an insurance companyformulize their marketing strategies with lot of thought and diligence to capture theuntapped potential in the insurance industry. Through this project we aim to understand thestrategies adopted by IDBI Federal and to find out the effectiveness of these promotionalstrategies through a study on consumer behavior. Present scenario of Insurance industryThe brief outlook about the regulatory changes done by the Indian Government over theyears is given below:-
The effect of insurance reforms has been positive on the insurance industry. There has beenpositive growth in all the segments, with investments flowing in the right direction.Reforms have helped to achieve rapid growth in critical areas and sustain them over aperiod of time through channelized strategies.Post reforms, the number of players have increased from 4 to 22 players presentlyregistered under IRDA (INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OFINDIA). Company Profile
IDBI Federal Life Insurance Co Ltd is a joint venture of IDBI Bank - India’s premierdevelopment and commercial bank, Federal Bank - one of India’s leading private sectorbanks and Ageas Insurance International - a multinational insurance giant, based out ofEurope.In this venture, IDBI owns 48% equity while Federal Bank and Ageas own 26% equityeach. IDBI Federal launched its first set of products across India in March 2008, afterreceiving the requisite approvals from the Insurance Regulatory Development Authority(IRDA).In just five months of inception, IDBI Federal became one of the fastest growing newinsurance companies to garner Rs 100 crores in premiums.As on March 31st, 2009, the Company had collected more than 328 crores in premiums,through over 87,000 policies and over Rs 2825 crores in Sum Assured. The Companyoffers its services through a vast nationwide network across the branches of IDBI Bank andFederal Bank, in addition to a sizeable network of advisors and partners.
IDBI Bank Ltd continues to be, since its inception, India’s premier industrial developmentbank. Created in 1956 to support India’s industrial backbone, IDBI Bank has since evolvedinto a powerhouse of industrial and retail finance. Today, it is amongst India’s foremostcommercial banks, with a wide range of innovative products and services, serving retailand corporate customers in all corners of the country from 689 Branches 1140 ATMs.The Bank offers its customers an extensive range of diversified services including projectfinancing, term lending, working capital facilities, lease finance, venture capital, loansyndication, corporate advisory services and legal & technical advisory services to itscorporate clients as well as mortgages and personal loans to its retail clients.As part of its development activities, IDBI Bank has been instrumental in sponsoring thedevelopment of key institutions involved in India’s financial sector – such as the Securitiesand Exchange Board of India (SEBI), National Stock Exchange of India Limited (NSE) andNational Securities Depository Ltd.
Federal Bank is a scheduled commercial bank founded in 1931.Federal Bank is one ofIndia’s leading private sector banks, with a dominant presence in the state of Kerala. It hasa strong network of over 612 Branches, 617 ATMs spread across India. The Bank providesover four million retail customers with a wide variety of financial products. Federal Bank isone of the first large Indian banks to have an entirely automated and interconnected branchnetwork.The Bank has a wide range of services like Internet Banking, Mobile Banking, TeleBanking, Any Where Banking, debit cards, online bill payment and call centre facilities tooffer round-the-clock banking convenience to its customers.The Bank has been a pioneer in providing innovative technological solutions to itscustomers, having won several awards like the award for Best Use of IT in Retail Bankingby IBA, TFCI and Infosys.
Ageas ranks among Europe’s top 20 financial institutions and is a reputed internationalbrand in financial services. European financial services provider engaged in banking andinsurance with a presence in over 50 countries.Ageas has subsidiaries in France, Germany and Hong Kong. Ageas has a track record indeveloping partnerships with strong financial institutions and key distributors in differentmarkets around the world and successfully operates Italy, Portugal, China, Malaysia, Indiaand Thailand. Ageas employs more than 13,000 people and has annual inflows of almostEUR 18 billion.
MilestonesMarch 2008 M IDBI Federal starts operations with two products – Homesurance & Wealthsurance.August 2008 A IDBI Federal becomes one of the fastest growing new life insurers to collect premiums worth Rs 100 crores.October 2008 O IDBI Federal launches BondsuranceJanuary 2009 J IDBI Wealthsurance Cup 2009 – India v/s Sri Lanka held in Sri Lanka.March 2009 M collected premium of over 328 corers and 87,000 policies and a Sum assured of Rs 2825 crores since inceptionNovember 2009 N IDBI Federal launches Incomesurance
The MissionWe aim to be recognized as a leading provider of wealth management, protection andretirement propositions that satisfy the needs of and add value to our key customersegments.We shall continually strive to enhance the customer experience, in relationshipmanagement and service delivery, and interact with our customers in the most convenientand cost effective manner.We shall be transparent in our dealings and act with integrity.We shall invest in and build quality human capital in order to achieve our mission. VisionTo be a customer centric channel, while setting benchmarks in the life insurance industry,in terms of presence, productivity and profitability.
Competitors of IDBI Federal Life Insurance co. Ltd.1. Bajaj Allianz Life Insurance Company Limited 20. AEGON Religare Life Insurance CompanyLimited 2. Birla Sun Life Insurance Co. Ltd 21. DLF Pramerica Life Insurance Co.Ltd.3. HDFC Standard Life Insurance Co. Ltd 22. Star Union Dai-ichi Life Insurance Comp. Ltd.4. ICICI Prudential Life Insurance Co. Ltd.5. ING Vysya Life Insurance Company Ltd.6. Life Insurance Corporation of India7. Max New York Life Insurance Co. Ltd8. Met Life India Insurance Company Ltd.
9. Kotak Mahindra Old Mutual Life Insurance Limited10. SBI Life Insurance Co. Ltd11. Tata AIG Life Insurance Company Limited12. Reliance Life Insurance Company Limited.13. Aviva Life Insurance Co. India Pvt. Ltd.14. Sahara India Life Insurance Co, Ltd.15. Shriram Life Insurance Co, Ltd.16. Bharti AXA Life Insurance Company Ltd.17. Future Generali Life Insurance Company Ltd.19. Canara HSBC Oriental Bank of Commerce Life Insurance Co. Ltd.MARKETING MIX IN IDBI Federal Life Insurance CoLtdThe term insurance marketing refers to the marketing of Insurance services with the aim tocreate customer and generate profit through customer satisfaction. The InsuranceMarketing focuses on the formulation of an ideal mix for Insurance business so that theInsurance organization survives and thrives in the right perspective.
The marketing mix is the combination of marketing activities that an organization engagesin so as to best meet the needs of its targeted market. The Insurance business deals inselling services and therefore due weight age in the formation of marketing mix for theInsurance business is needed.The marketing mix includes sub-mixes of the 7 P’s of marketing i.e. the product, its price,place, promotion, people, process & physical attraction. The above mentioned 7 P’s can beused for marketing of Insurance products, in the following manner:
PRODUCT:A product means what we produce. If we produce goods, it means tangible product andwhen we produce or generate services, it means intangible service product. A product isboth what a seller has to sell and a buyer has to buy. Thus, an Insurance company sellsservices and therefore services are their product. When a person or an organization buys anInsurance policy from the insurance company, he not only buys a policy, but along with itthe assistance and advice of the agent, the prestige of the insurance company and thefacilities of claims and compensation. It is natural that the users expect a reasonable returnfor their investment and the insurance companies want to maximize their profitability.Hence, while deciding the product portfolio or the product-mix, the services or the schemesshould be motivational. IDBI Federal provides many products which cater to the needs ofthe Indian customers. IDBI Federal products:- WEALTHSURANCE W INCOMESURANCE I BONDSURANCE B TERMSURANCE T HEALTHSURANCE H RETIRESURANCE R GROUP MICROSURANCE G HOMESURANCE H LOANSURANCE L CHILDSURANCE
WEALTHSURANCE:The Wealthsurance Milestone Plan is a unique Insured Wealth Plan designed to help crossdifferent milestones in one’s life. It enables customers to save and build wealth under theprotection of Insurance to meet their financial goals. The Wealthsurance Milestone Planoffers a wide range of Investment options, Insurance options and unmatched flexibility thatallows customers to customize a plan suited to their needs. Customers can plan for theirmilestones like completion of school education for their child, a marriage, acquisition of anew house and so on. This Plan comes with a wide range of 13 investment options and 7insurance benefits - all packaged with a low charge structure and unmatched flexibility.INCOMESURANCE:IDBI Federal Incomesurance Endowment and Money Back Plan is loaded with lots ofbenefits which ensure that you get Guaranteed Annual Payout along with insuranceprotection which will help you to reach you goals with full confidence. Incomesurance Planis very flexible and allows you to customise your Plan as per your individual and family’sfuture requirements. Moreover it also allows you to choose Premium Payment Period,Payout Period, Payout Options and more.
BONDSURANCE:The IDBI Federal Bondsurance Advantage Plan is a single premium plan where you needto make just a one-time investment. You can choose a Maturity Period of 5, 7, 10, 15 or 20years. At the end of the chosen period, you will receive a guaranteed maturity amount. Incase of death of the insured person before the Maturity Date, a guaranteed Death Benefitwill be paid.TERMSURANCE:IDBI Federal Termsurance Protection Plan (Termsurance) comes with three cover optionswhich you can select on the basis your requirement. Termsurance is designed with a host ofbenefits & options aimed at satisfying your every need. It not only allows you to customiseyour plan as per your individual and family’s needs, it also comes with a host of benefits
like convenient insurance cover options, flexible premium payment terms, choice of policyterm and lots more flexible options.HEALTHSURANCE:Presenting the IDBI Federal Healthsurance Hospitalisation and Surgical Plan. If you’reaged 18 years to 55 years and currently in good health, this new insurance plan is designedto help you manage the extra financial burden that comes with hospitalisation, by providinga wide range of attractive benefits.
RETIRESURANCE:A retirement plan designed to accumulate money to aid a comfortable retirement. The planprovides a guaranteed return on your investment and grows steadily over the years toensure that you have a corpus on your retirement date, guaranteed.GROUP MICROSURANCE:IDBI Federal Group Microsurance Plan provides affordable life insurance cover to groups.This plan is extremely useful to Micro Finance Institutions, Self Help Groups and NGOs toinsure the lives of their group members and thus provide security to the group members’families. The plan can also be used for providing loan protection to the group members’families.
HOMESURANCE:IDBI Federal Homesurance Plan is a mortgage reducing term assurance plan – MRTA,which offers protection to your home from your home loan. The Plan provides a coverequal to the outstanding balance of your home loan against any unfortunate events that mayoccur to you. This plan gives you the option of a Single Premium.LOANSURANCE:Loansurance is a cost-effective way to ensure that the outstanding debt is settled in theunfortunate event of death of the insured member. This term assurance plan provides coverto a person directly liable for loan repayment (and the partners, in case of a partnership), asper the benefit schedule
CHILDSURANCE:Whether your child wants to be a doctor, an engineer, an MBA, a sportsman, a performingartist, or dreams of being an entrepreneur, the IDBI Federal Childsurance Dream builderInsurance Plan will keep you future-ready against both, changing dreams and life’s twists.It allows you to create build and manage wealth by providing several choices and greatflexibility so that your plan meets your specific needs. However, what makes Childsurancea must-have for any parent who is looking to make their child’s future shock-proof is itspowerful insurance benefits. Childsurance allows you to protect your child plan with tripleinsurance benefits so that your wealth-building efforts remain unaffected by unforeseenevents and your child’s future goals can be achieved without any hindrance.Despite all these tailored products there is still scope for improvement in this field. TheGroup Insurance scheme is required to be promoted, the Crop Insurance is required to beexpanded and the new schemes and policies for the villagers or the rural population areto be included. . The introduction of Rural Career Agents Scheme has been foundinstrumental in inducing the rural prospects but the process is at infant stage and requiresmore professional excellence. So there is lot of potential in insurance sector which iswaiting to be uncorked hence revealing to the economy the benefits of insurance industry.The policymakers are required to activate the efforts. It would be prudent that the LIC is
allowed to pursue a policy of direct investment for rural development. Investment inGovernment securities should be stopped and the investment should be channelizedin private sector for maximizing profits. In short, the formulation of product-mix should bein the face of innovative product strategy. While initiating the innovative process itis necessary to take into consideration the strategies adopted by private andforeign insurance companies.PRICING:In the insurance business the pricing decisions are concerned with:i) The premium charged against the policiesii) Interest charged for defaulting the payment of premium and credit facility, andiii) Commission charged for underwriting and consultancy activities.
With a view of influencing the target market or prospects the formulation of pricingstrategy becomes significant. In a developing country like India where the disposableincome in the hands of prospects is low, the pricing decision also governs thetransformation of potential policyholders into actual policyholders. The strategies may behigh or low pricing keeping in view the level or standard of customers or thepolicyholders. The pricing in insurance is in the form of premium rates. The three main factors used for determining the premium rates under a life insurance planare mortality, expense and interest. The premium rates are revised if there are anysignificant changes in any of these factors. t Mortality (deaths in a particular area): When deciding upon the pricing strategy the average rate of mortality is one of the main considerations. In a country like South Africa the threat to life is very important as it is played by host of diseases. a Expenses: The cost of processing, commission to agents, reinsurance companies as well as registration are all incorporated into the cost of instalments and premium sum and forms the integral part of the pricing strategy. Interest: The rate of interest is one of the major factors which determine people’s willingness to invest in insurance. People would not be willing to put their funds to invest in insurance business if the interest rates provided by the banks or other financial instruments are much greater than the perceived returns from the insurance premiums.
PLACE:This component of the marketing mix is related to two important facets i) Managing the insurance personnel, and ii) Locating a branch.The management of agents and insurance personnel is found significant with the viewpointof maintaining the norms for offering the services. This is also to process the services to theend user in such a way that a gap between the services- promised and services offered isbridged over. In a majority of the service generating organizations, such a gap is foundexistent which has been instrumental in making worse the image problem. Thetransformation of potential policyholders to the actual policyholders is a difficult task thatdepends upon the professional excellence of the personnel. The agents and the rural career agents acting as a link, lack professionalism. The front-linestaff and the branch managers also are found not assigning due weight age to thedegeneration process. The insurance personnel if not managed properly would make allefforts insensitive. Even if the policy makers make provision for the quality up gradation,the promised services hardly reach to the end users. It is also essential that they have rural orientation and are well aware of the lifestyles of theprospects or users. They are required to be given adequate incentives to show theirexcellence. While recruiting agents, the branch managers need to prefer local persons andprovide them training and conduct seminars. In addition to the agents, the front-line staff
also needs an intensive training programmed to focus mainly on behavioralmanagement. Another important dimension to the Place Mix is related to the location of theinsurance branches. While locating branches, the branch manager needs to consider a number of factors, suchas smooth accessibility, availability of infrastructural facilities and the management ofbranch offices and premises. In addition it is also significant to provide safety measures andalso factors like office furnishing, civic amenities and facilities, parking facilities andinterior office decoration should be given proper attention.Thus the place management of insurance branch offices needs a new vision, distinctapproach and an innovative style. This is essential to make the work place conducive,attractive and proactive for the generation of efficiency among employees. The branchmanagers need professional excellence to make place decisions productive. IDBI Federalhas around thousands and thousands of insurance agents all over India to manage theirregional customers effectively. Also, IDBI Federal has over 796 branches all over Indiawhich help in increasing their customer base.PEOPLE:
Understanding the customer better allows in designing appropriate products. Being aservice industry which involves a high level of people interaction, it is very important touse this resource efficiently in order to satisfy customers. Training, development and strongrelationships with intermediaries are the key areas to be kept under consideration. Trainingthe employees, use of IT for efficiency, both at the staff and agent level, is one of theimportant areas to look into. IDBI Federal has created various financial products whichhave been tailored according to the needs of the customers. They have over thousands ofsales personnel who are trained efficiently to bridge in the gap between the customers andthe company.PROCESS:The process should be customer friendly in insurance industry. The speed and accuracy ofpayment is of great importance. The processing method should be easy and convenient tothe customers. Instalment schemes should be streamlined to cater to the ever grow. Promotion
The insurance services depend on effective promotional measures. In a country like India,the rate of illiteracy is very high and the rural economy has dominance in the nationaleconomy. It is essential to have both personal and impersonal promotion strategies. In promoting insurance business, the agents and the rural career agents play an importantrole. Due attention should be given in selecting the promotional tools for agents and ruralcareer agents and even for the branch managers and front line staff. They also have tobe given proper training in order to create impulse buying. Advertising and Publicity,organization of conferences and seminars, incentive to policyholders are impersonalcommunication. Arranging Kirtans, exhibitions, participation in fairs and festivals, ruralwall paintings and publicity drive through the mobile publicity van units would be effectivein creating the impulse buying and the rural prospects would be easily transformed intoactual policyholders.IDBI Federal has also adopted various promotional strategies like: I Commercial Ads C Print Ads P Events E Personnel selling P Word of mouth viral marketing
They have brought out many interesting and humorous ads of their products such asWealthsurance, Incomesurance, Retiresurance etc which has got very good response fromcustomers. They have also conducted events with an aim to create interest around financialplanning with Life Insurance at branches which was critical to getting prospects interestedin IDBI Federal products. Building an engagement process around the solution being offered gives an additionalboost to this cause. Spelling Bee was a specially created spelling contest created to connectwith children. The philosophy of this module hinged around making learning fun. Theevent was timed to coincide with Children’s day in November 2010. The spellings to becompleted revolved around visual and verbal cues to words related to saving, money andfinance and aimed at teaching children the value of money early in life.The engagement started with the spelling contest for kids and gave their IRMs a naturalopening for a discussion with parents about financial planning for their children’s futureneeds like education. This is a sort of channel marketing which IDBI Federal had adoptedto create awareness as well as to educate the future generation about the company and theimportance of saving.Also IDBI Federal involved themselves in developing their business by joining hands withSAMHITA, a community development organization based out of Bhopal which workstowards bringing financial literacy to the underprivileged population in Madhya Pradesh.They believe that such financial literacy among the under banked population will help bringa holistic change in the way people perceive and understand financial products and theirutility at various stages in their life.
This will ultimately help bring them closer to financial inclusion. They started this journeywith SAMHITA in 2008 by providing low cost group coverage female members ofSAMHITA under Group Microsurance. This way they have covered 86,721 lives for a sumassured of Rs. 66.7 crores since then. They also offer the protection of TermsuranceGrameen Suraksha to the family members of these people. IDBI Federal Termsurance Grameen Suraksha is especially designed to make lifeinsurance affordable to rural customers with options of four convenient premium slabs ofRs 49.08, Rs 98.17, Rs 147.25 and Rs 196.33 (inclusive of taxes) with corresponding sumsassured of Rs 5,000, Rs 10,000, Rs 15,000 and Rs 20,000.In this way IDBI Federal has made intelligent moves to capture the rural market which haslot of potential and promise in the future. Promotional strategies are very important for anyintangible product especially like life insurance and financial savings where people shouldbe given complete education about such products because of which all insurance companiestake due care while formulizing their promotional strategies.
Brand awareness of IDBI Federal Life Insurance Co Ltd.Awareness Percentage of Various IDBI Federal products:-
People seen Advertisement Of IDBI Federal Life Insurance Companyfrom:-
Current Market Share of LIFE INSURANCE COMPANIES:-
Recommendations• Print & Electronic Media Advertisement should be used at a high level especially TV ads should be used as its reach to the interior of the country is strong and also the kind of influence it show case on people is much higher compare to other medias.• After the initial promotional campaign the relative advantage of IDBI FEDERAL LIFE INSURANCE Co Ltd. over its competitor should be highlighted.• Hoardings at prime areas should be used.• The most important of all is to create awareness about company’s product as well as a brand in the market is very necessary.
• The company can use celebrity to create awareness about the brand and also can collaborate with some production houses of films and television serials which can reach people in mass.
CONCLUSIONWith regard to insurance companies, consumers respond at different rates, depending onthe consumers characteristics. Hence Insurance companies should try to bring their newproduct to the attention of potential early adopters.a) Due to the intense competition in the life insurance market, the life insurance Return oninvestment, company reputation and premium outflow are most preferred attributes that areexpected by the respondents. Hence greater focus should be given to these attributescompanies have to adopt better strategies to attract more customers.b) Keeping the cost, quality and return on investment in tact is necessary in order to tacklethe competition.c) Life insurance products are taken mainly by middle and higher income group. Hencethey should be regarded as maim targeted income groups. Life insurance products whichare suitable for lower income group should also be released so that the market shareincreases.d)) return on investment, company reputation and premium outflow are most preferredattributes that are expected by the respondents. Hence greater focus should be given tothese attributes.e) Private life insurance companies should adopt effective promotional strategies toincrease the awareness level among the consumers.f) Life insurance companies should ask for their consumer feedback to know whether theconsumers are really satisfied or dissatisfied with the service and product of the companies.If they are dissatisfied, then the reasons for dissatisfaction should be found out and shouldbe corrected in future. g) The LIC brand name has earned a lot of goodwill and enjoys high brand equity. Asthere is intense competition in life insurance market, LIC should work hard to maintain itstop position and offer better service and product.
References:- Websites o www.idbifederal.com o www.irda.gov.in