New Media Strategy for IFFCO-Tokio

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Indian insurance industry analysis, proposed disruptive and new media strategies for IFFCO-Tokio

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New Media Strategy for IFFCO-Tokio

  1. 1. Industry Analysis and New Media Strategy Submitted by: Sahil Chopra (01) Richa Bhardwaj (26) 1 MBA - PR
  2. 2. Insurance Industry Overview  India is the fifth largest general insurance market in Asia with annual premiums of $6.3 billion in FY09  21 companies operating in India:  13 private sector companies – multiline (JV with foreign insurer)  4 public sector companies – multiline  2 private sector companies – health  2 public sector specialty companies  Intense competition and strong growth between FY01 and FY08  Premium grew at 19.5% per annum  Penetration levels (premium as a % of GDP) increased from 0.4% to 0.7% (world average being 3.1% in 2007)  Annual premium in April 2008-March 09 was $6.3 billion (excl health and specialty companies)  Market continues to be dominated by public sector, though share has declined since FY01  Large middle class population, increased awareness and income levels have fuelled growth  Currently maximum foreign partner investment is 26% - soon expected to increase to 49% 2
  3. 3.  Home insurance segment is set to achieve a 100% growth as financial institutions have made home insurance obligatory for housing loan approvals. It is poised to become the second largest business for non-life insurers after motor insurance by 2011.  Insurance Laws Amendment Bill, 2008 was introduced in the Rajya Sabha. The Bill has been referred to the standing committee on finance for its report, which is expected shortly. The key amendments proposed in the Bill are as follows:  Increasing the FDI limits in insurance from 26% to 49%  Introducing “Health insurance business” as a separate category of insurance. Minimum paid up capital of INR 500 million (USD 10 million approx) has been prescribed for standalone health insurance companies.  Newer products are being introduced for agricultural insurance and extensive efforts being made by the insurance companies to reach out to the rural markets. This is expected to shift the skewed nature of insurance, slowly but steadily, towards a more balanced state.  With the entry of several low-cost airlines, along with fleet expansion by existing ones and increasing corporate aircraft ownership, the Indian aviation insurance market is all set to boom in a big way in coming years. 3
  4. 4. Industry SWOT STRENGTHS WEAKNESS - The variety of products is increasing - Deregulation and detarrification of industry -Insurance companies often slow to respond to changing needs. - Health, micro insurance facing a boom -There is an increasing trend of financial - Customer satisfaction mandatory weakness among the companies. - Prospects expect more services from their -Rural area pentration is low brokers. -Awareness about the subject is still low -Premium rates are increasing and so are commissions. OPPORTUNITIES SWOT THREATS -Ability to cross sell financial services barely -The increasing cost and need for insurance might being tapped. hit a point where a backlash will occur. -Improved technology available- paperless -Government regulations on issues like health care, transactions available. and terrorism can change direction of insurance. -Newer distribution channels being identified -Increasing expenses and lower profit margins will hit smaller insurance companies hard. -Innovative covers on offer- HIV, terrorism etc -Investment policies facing a downturn linked to -The client's increasing need for an "insurance economic slowdown consultant" can open new ways to service the client and generate income. 4
  5. 5. General Insurance - Major Private Players 1. ICICI Lombard General Insurance (11%) 2. Bajaj Allianz General Insurance Company Limited Royal (9%) 3. Reliance General Insurance Company Limited. (6%) 4. IFFCO-Tokio General Insurance Co. Ltd (5%) 5. TATA AIG General Insurance Company Ltd. (3%) 6. Sundaram Alliance Insurance Company Limited (3%) 7. Cholamandalam General Insurance Company Ltd. (2%) 8. HDFC-Chubb General Insurance Co. Ltd. (1%) 9. Future Generali India Insurance Company Limited (1%) 10. Apollo DKV Insurance Company Limited (0%) 11. Universal Sompo General Insurance Company Ltd. (0%) 12. Bharti Axa General Insurance Company Ltd. (0%) 13. Raheja QBE General Insurance Co. Ltd (0%) 5
  6. 6. Market Share IFFCO-Tokio 237 255 313 5% 4% 5% 6
  7. 7. IFFCO-Tokio & Its Competitors Past Campaigns
  8. 8. IFFCO-Tokio Campaign - Phase I  When Iffco-Tokio came into existence, its tagline was: The Life You Deserve  Two campaigns were launched in this initial phase: • Ad agency: Dentsu • PR Agency: Genesis BM Campaign I: Whichever way life takes you o Insight: Consumers value trustworthiness the most for an insurance brand o Positioning: Trustworthy, Honest, Reliable o Media: TVCs and print ads Campaign II: Hassle-free claims o Insight: Speedy claim settlement is extremely critical for satisfied customers o Positioning: Quick, easy claim settlement o Media: TVCs and print ads 8
  9. 9. IFFCO-Tokio: Advertisements 9
  10. 10. IFFCO-Tokio Campaign - Phase II  In 2008, Iffco-Tokio makeover with a new logo and tagline: Muskurate Raho  Two campaigns were launched in this initial phase: • Ad agency: Publicis • PR Agency: Genesis BM o Campaign: Albert Pinto kyon muskura raha hain o Rationale:‘Muskurate Raho’ is the need for Indian Masses in the present day life which is full of risks and tension. o Brand Ambassador: Paresh Rawal o Positioning: Friendly, hassle free, trusty o Media: TVCs, print ads and brand activation (outdoor) o Add links 10
  11. 11. IFFCO-Tokio: Advertisements 11
  12. 12. IFFCO-Tokio: Advertisements 2009 http://www.youtube.com/watch?v=wHy2mqASkrs http://www.youtube.com/watch?v=qqyBPbb4o3I http://www.youtube.com/watch?v=4aZmNzD4L50 http://www.youtube.com/watch?v=pjvR_q_CzzI http://www.afaqs.com/perl/advertising/creative_showcase/index.html?id=18397&media=Digital 2008 http://www.afaqs.com/perl/advertising/creative_showcase/index.html?id=7213&media=TV http://www.afaqs.com/perl/advertising/creative_showcase/index.html?id=7218&media=TV http://www.afaqs.com/perl/advertising/creative_showcase/index.html?id=7346&media=TV http://www.afaqs.com/perl/advertising/creative_showcase/index.html?id=7547&media=TV http://www.afaqs.com/perl/advertising/creative_showcase/index.html?id=7548&media=TV 12
  13. 13. Competitors’ Campaigns A few links to the campaigns rolled out by ITGI’s competitors:  Future Generali - http://www.afaqs.com/perl/advertising/creative_showcase/index.html?id=18076&media=TV  Tata AIG Superstar - http://www.afaqs.com/perl/advertising/creative_showcase/index.html?id=17726&media=TV  Bajaj Allianz - http://www.afaqs.com/perl/advertising/creative_showcase/index.html?id=17609&media=TV  Bajaj Allianz - http://www.afaqs.com/perl/advertising/creative_showcase/index.html?id=18418&media=TV  ICICI Lombard - http://www.afaqs.com/perl/advertising/creative_showcase/index.html?id=18617&media=TV  TATA AIG - http://www.afaqs.com/perl/advertising/creative_showcase/index.html?id=18184&media=Digital# 13
  14. 14. Print Advertisements 14
  15. 15. Outdoor Advertisements 15
  16. 16. IFFCO-Tokio Proposed disruptive ideas
  17. 17. Defying the rules: ITGI  Step I: Study and analyse the insurance industry in India  Step II: Identify the industry conventions in marketing, distribution, consumer, communication, corporate, etc.  Step III: Defying the existing rules of the game for the industry by disrupting these conventions
  18. 18. STRATEGY I Micro-insurance  Distribution Convention: The distribution and communication channels being exploited by the insurance companies in the rural markets are agents, formal banks, regional rural banks, post offices, NGOs, Self Help Groups etc.  Idea: Rural knowledge centers and Internet zones are becoming increasingly popular in rural areas. These act as information resource centers to the rural people. These can be used effectively by ITGI to educate the people about insurance in general as well as its products (in their regional language). Internet’s reach in rural areas is quite often underestimated.
  19. 19. STRATEGY II Micro-insurance  Consumer Convention: Poor people live for the present and do not plan for the future. Given this fatalistic attitude, it is quite tough to explain the concept of insurance to the poor. The poor view the premium on insurance policies more as a cost than a risk-cover.  Idea I: In order to improve rural sales, ITGI must look at winning the trust and partnering effectively with the local NGOs of the region who are genuinely trying to uplift the situation of the poor. It is through these NGOs that ITGI can educate the poor about the importance of insurance and in due course increase its sales.  Idea II: ITGI must look at involving the local NGOs to develop customised insurance products which would be of value to the people of the village.
  20. 20. STRATEGY III Retail Products: Urban  Distribution & Marketing Convention: The Indian general insurance industry has historically been dominated by the agency channel, through which 75% of total premium income is sourced. But in recent periods other channels – for example, bancassurance (ICICI Lombard - ICICI Bank), brokers, corporate tie ups, motor company tie-ups are gaining importance. As of December 31 2007, 267 brokers were registered with IRDA, including 228 direct brokers, 33 composite brokers and 6 reinsurance brokers. In a deregulated environment, the broking community will have plenty of opportunity to become an integral part of the insurance and risk financing process.  Idea: This is an opportune moment for ITGI to initiate the process of building a strong relationship with independent brokers, corporates and automobile companies through rapport building events and activation campaigns.
  21. 21. STRATEGY IV Claim servicing  Corporate convention: All the insurance companies are severely hampered in claims servicing by their process-oriented approach and limited operational flexibility. They have been unable to expedite claim settlements leading to high customer dissatisfaction. Hassle free claim settlement is one of the key enticers for customers.  Idea: IFFCO-Tokio with its campaign tagged- Hassle Free Claims, did try to differentiate itself from its competitors on this very factor. But the campaign turned out to be largely unsuccessful due to the lack of efficiency of the company in settling its claims out. Thus, ITGI should ideally put in all efforts to ensure that an extremely speedy & effiicent claim settlement process is put in place. This is bound to improve the level of satisfaction and loyalty amongst ITGI’s policy-holders.
  22. 22. NEW MEDIA STRATEGY
  23. 23. Objectives • Study and analyse the present use of web by IFFCO-TOKIO (and its competitors) to develop critical insights • Propose key online marketing and communication strategies to the company based on:  Critical evaluation of each aspect of the web- its potential for the insurance industry  Competitor analysis - what are they up to in the online space
  24. 24. Online Insurance Sales and Marketing: Celent Celent, a US-based global research and advisory firm: online insurance sales will double by 2011 (worldwide) and web will play a major role in most personal insurance purchases across auto, life, and health. Insight: Marketing & communication initiatives will now become more specific and one- to-one marketing will see a rise. Key findings include: • Web has become an increasingly important communication channel between sellers and buyers of personal insurance. • At present, most consumers’ purchasing process is “Web Influenced” • Search engines like Google and Yahoo! are critical channels for insurers that cannot afford massive consumer marketing campaigns to drive shoppers directly to their sites, and more insurers are embracing search engine optimization to help capture these shoppers • Pure online sales are growing, but will still account for less than 15% of sales, even in personal auto. • While 100% online sales are unlikely to exceed 30% in any area, the Web will be a major influencer for nearly all sales within five years. 24
  25. 25. New Media: Key Insights Primary survey conducted by IAMAI and IMRB International across 30 cities and 90,000 respondents reveals: 1. Out of the total internet users in urban India (50 million), 37 per cent of them stay in top 8 metros and 30 per cent in towns with populations below 5 lakh. 2. 37 per cent of the total internet population in urban India belongs to SEC A and 32 per cent belongs to SEC B categories. 3. Among the active internet users in 30 cities (17.9 million), 30 per cent are young men below 35 years who are not school or college students, and 27 per cent are college-going students. 4. 12 per cent are school-going kids while 11 per cent of the active internet users in 30 cities (17.9 million) are working women; only 6 per cent are non-working women. 5. 37 per cent of the 17.9 million active internet users surf the net at cyber cafes, 26 per cent surf at home while 27 per cent surf at office 6. 91 per cent of the surveyed consumers use internet primarily for e-mail, 76 per cent prefer to use it for general search, while 49 per cent consumers are looking for educational content. 25
  26. 26. Useful Insights for ITGI • The reach of internet is not just limited to just the 8 metros, as is often perceived. Thus, it gives ITGI a chance to connect with people from smaller cities and towns (tier I & tier II) as well through the web. • SEC B forms as important a part of ITGI’s TG as SEC A and the internet has a balanced mix of both. • Amongst the internet users, people below 35 years of age form a major chunk (around 57 per cent). Younger people are more open to new concepts, services and products. Thus, there is an opportunity to make them perceive insurance cover as essential – the smart thing to do. • 76 per cent of the people surveyed prefer to use the internet for general search, while 49 per cent are looking for educational content. This provides excellent reason for ITGI to invest in Search Engine Optimization, setting up of blog and keeping its website updated. 26
  27. 27. Avenues: E-Commerce ANALYSIS: ONLINE MODEL V/S AGENT MODEL Advantages Disadvantages Distribution made easier Information overload Digital policy accessible to customer No scope for negotiation/bargain Online customer service 24X7 Lack of privacy/trust Paperless Transactions Security concerns e.g. spam Ease of use, convenience No. of users (potential buyers online) still low Lower costs User expects freebies 27
  28. 28. OBSERVATIONS  ICICI Lombard leads the way in e-transactions. It allows visitors to buy, change, extend or renew their policies online through its website (travel, health, motor and home) in an extremely simple procedure.  Bajaj Allianz General only allows users to buy motor policies online. Also, it allows them to renew their existing policies as well.  Reliance General allows its visitors to buy policies online but not renew their old policies. It offers only travel, motor and health insurance policies, not home.  Tata AIG only allows existing customers to renew their existing policies online.  IFFCO-Tokio allows visitors to buy (motor, travel, health) as well as renew their policies online. But, both the times we tried to check the process of buying the policy out, the server seemed to be unavailable or down.  ICICI Lombard, TATA AIG and Reliance General, Bajaj Allianz General and IFFCO-Tokio have all tied up with policybazaar to sell their insurance products. 28
  29. 29. COMMENTS AND SUGGESTIONS  ITGI’s online policy selling process is quite fast and customer-friendly. There are few clicks, new pages or new windows opening in the process so as to make it faster.  ITGI can look at offering/selling its other products like home insurance etc also through its website.  ICICI Lombard and Reliance General have agents’ login facility on their website for the agents to buy policies for clients, renew them, check their status etc. ITGI can look at exploiting that aspect too. Why limit the service to just end consumers?  ITGI can look at tying up with other websites such as www.insurancemall.in to sell its products. 29
  30. 30. Avenues: Online Advertising • Categorised into two types: search and display • While the current ratio of search to display roughly stands at 30:70, share of search is expected to increase significantly this year • The internet allows real-time monitoring, mapping and adjustment of campaigns • It also allows fine tuning of the campaign based on response and feedback to reach the desired goal OBSERVATIONS  ICICI Lombard uses the specialised services of AdGuru, the ad-network unit of the Bengaluru based Internet search firm Guruji.com.  IFFCO-Tokio has initiated digital advertising of its products (Motor, Health, Travel) on various high traffic websites like Rediff, Yahoo, in.com, IBN live, cricbuzz etc. The same was done during Elections and IPL. To ensure consistency in the initiative, ads and sponsored links are featured continuously on Carewale.com, Yahoo.com and Google search. 30
  31. 31. Avenues: Websites • The most controllable source of providing information and relaying messaging on the Internet • Most trusted when supported by third-party credibility • Must leave a positive impression on the visitor's mind (appropriate content and design) 31
  32. 32. COMMENTS AND SUGGESTIONS (Post Competitors’ Website Analysis) IFFCO-Tokio’s website is quite nicely developed with an excellent interface which is extremely uncluttered, very interactive and user friendly. However, it can still look at adding the following segments to its website.  Awards showcase/tab  Customer testimonials  Agent login 32
  33. 33. Set policy renewal reminder- E-mail/SMS  33
  34. 34. Sharing business ideas 34
  35. 35. Customer feedback- website, company, products, services 35
  36. 36.  Develop relevant microsites or blogs 36
  37. 37.  Downloads- brochures, forms (claim, application, renewal etc) RSS feeds: Subscribe to company news through mails, newsletters etc 37
  38. 38. Avenues: Search Engine Optimisation OBSERVATIONS  Bajaj Allianz has hired Communicate2, a search marketing agency based in Mumbai which has recently become a certified Google Analytics Authorized Consultant (GAAC). COMMENTS AND SUGGESTIONS  Hire an agency to help with SEO and search listings for even according to the trends search advertising is the way forward for web advertising.  A similar sort of benefit can be derived by using web tools like Stumble Upon, Reddit and Digg bookmarks. These can be used expertly for specific interesting pages of the ITGI website and related blogs on insurance in order to drive net user traffic to them. Thus, promoting the company, its products and initiatives. 38
  39. 39. Avenues: Social Media - SWOT STRENGTHS WEAKNESS - Direct contact with audience -Results may be lower as against other media - Scope for interaction -Sometimes impersonal due to outsourced - Measurable results thanks to web analytics execution - High reach within the TG -Rapid, ever-changing environment - Cost-effective -Sometimes messaging becomes inconsistent -Scope for continious change and improvement - Less time to correct glaring errors, if any - Helps build strong, long-term relationships SWOT THREATS OPPORTUNITIES -Possibility of excessive brand exposure -Presence where the TG lies -Espionage: competitors are more likely to know -The TG helps with word of mouth what you are doing -Place to identify and connect with new talent -Close competition in the medium may lead to need -Innovative covers on offer- HIV, terrorism etc for very high level of promotion -Reach out to people that other media cannot help -Judgemental consumers with 39
  40. 40. Avenues: Social Networking Sites The best and most credible form of publicity for a brand is word of mouth publicity and these social networking sites provide us with a platform to promote just that. Tools to be utilized:  Starting up of separate, dedicated and highly active and interactive communities for ITGI  Developing an ITGI profile on Twitter to keep the followers updated.  Developing fan pages for ITGI and its innovative products, schemes and policies.  Developing applications to like How much do you know about insurance quiz, Do you need insurance quiz, Which insurance policy best suits you quiz etc to promote brand loyalty and gain customer feedback on the products.  Using these social networking sites to leverage and promote the initiatives undertaken by ITGI and even gauge feedback on its new advertising and promotional campaigns.  Using these communities to promote the new product offerings- policies and services.  Regular tracking to gauge customer feedback and negating the negative opinions and feedback of the customers on the brand. 40
  41. 41. Avenues: Youtube Tools that can be utilized:  ITGI can put expert talk videos on Youtube about the current industry scenario, innovations in the industry etc. (This can be used for management profiling as well- as the top management people from ITGI can be a part of these discussion videos)  ITGI can also look at putting up videos to educate the consumers who have still not touched insurance products to educate them about the need and benefits of these products and services.  TVCs- Posting TVCs on youtube can help get feedback from people on a real time basis. It can help ITGI understand if its TVC is connecting well with the audiences or not. Some companies have even gone a step ahead and used youtube as the testing ground for their TVC. Even before buying spots on television to post their commercials, they have put them up on youtube for feedback purposes. 41
  42. 42. Avenues: Social Gaming Sites Advertisers have realised that consumers may overlook brands in display and search ads. However, it’s hard to do so when they are actively involved in playing a game that has the brand as its central theme or character. OBSERVATIONS  Bajaj Allianz tied up with Contest2win to create a game for it.  Zapak has developed advergames for LIC and ICICI Lombard. SUGGESTIONS  IFFCO-Tokio can look at a gaming tie-up as well to promote its product through forums, gaming sites as well as its own website. 42
  43. 43. Avenues: Other Suggestions DIRECT WEB MARKETING DIRECT MAILERS, REGULAR EMAILERS, NEWSLETTERS should be developed CREATE AN EXCLUSIVE ITGI GROUP (a premium group for its loyal customers) and look at offering them special services through the web and offline. This activity can be leveraged across media, the web being an important part. 43
  44. 44. Case Studies  New game by Bajaj Allianz makes you count your pennies  ICICI prudential, health insurance and the moral dilemma  ICICI prudential launches job portal for senior citizens  ICICI prudential life launches aboutulips.com For details refer to the appendix in the attached MS Word document 44

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