Lic vs Icici Pru..

8/9/2019 Lic vs Icici Pru..

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TERM PAPER

OF

STRATEGIC MANAGEMENT

TOPIC: SWOT and comparison and analysis of marketing strategies of LIC and ICICI

prudential

Submitted by: Submitted to:

MOHIT SHUKLA Mr. Nitin Dhir

SEC: S1803,B32

REG. ID: 10810287


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ACKNOWLEDGEMENT

It is immense pleasure for me to put on record my profound gratitude to the persons who has

supported me in substantial ways for the successful submission of this dissertation.

I wholly confess that the credit of this report is not only my treasure as I have merely brought

together the teaching, guidelines, knowledge, tips and notes from different members of the

institutes.

May I also, in the same breath, express my gratefulness to my honourable teacher and my

project guide Mr. Nitin Dhir for enlightening and guiding me at every step of the completion

of this project and for acquainting me with the work environment and providing productive

suggestion to handle problems.

Last but not the least, my sincere thanks to my parents and my friends for supporting me.

MOHIT SHUKLA


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Brief history of insurance sector

The insurance sector in India has completed all the facets of competition from being an open

competitive market to being nationalized and then getting back to the form of a liberalized

market once again. The history of the insurance sector in India reveals that it has witnessed

complete dynamism for the past two centuries approximately.

With the establishment of the Oriental Life Insurance Company in Kolkata, the business of

Indian life insurance started in the year 1818.

Important milestones in the Indian life insurance business

y 1912: The Indian Life Assurance Companies Act came into force for regulating the

life insurance business.

y 1928: The Indian Insurance Companies Act was enacted for enabling the government

to collect statistical information on both life and non-life insurance businesses.

y 1938: The earlier legislation consolidated the Insurance Act with the aim of

safeguarding the interests of the insuring public.

y 1956: 245 Indian and foreign insurers and provident societies were taken over by the

central government and they got nationalized. LIC was formed by an Act of

Parliament, viz. LIC Act, 1956. It started off with a capital of Rs. 5 crore and that too

from the Government of India.

The history of general insurance business in India can be traced back to Triton Insurance

Company Ltd. (the first general insurance company) which was formed in the year 1850 inKolkata by the British.

Important milestones in the Indian general insurance business

y 1907: The Indian Mercantile Insurance Ltd. was set up which was the first company

of its type to transact all general insurance business.

y 1957: General Insurance Council, an arm of the Insurance Association of India,

framed a code of conduct for guaranteeing fair conduct and sound business patterns.

y 1968: The Insurance Act improved for regulating investments and set minimal

solvency levels and the Tariff Advisory Committee was set up.

y 1972: The General Insurance Business (Nationalization) Act, 1972 nationalized thegeneral insurance business in India. It was with effect from 1st January 1973.

107 insurers integrated and grouped into four companies viz. the National Insurance

Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company

Ltd. and the United India Insurance Company Ltd. GIC was incorporated as a company.


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Current scenario of Indian Insurance Industry

Indian insurance industry is one of the premium sectors showing upward growth, which is

a US$ 41-billion industry in India. India is the fifth largest life insurance market in the

emerging insurance economies globally and is growing at 32-34 per cent annually. With

increasing competitiveness amongst these, the players are bringing out newer products toattract more customers into their kitty. Foreign direct investment (FDI) up to 26 per cent is

permitted under the automatic route subject to obtain a licence from the official regulator,

Insurance Regulatory and Development Authority (IRDA). The total number of life insurance

companies operating in India is currently 22.

Insurance companies in India

IRDA has till now provided registration to 12 private life insurance companies and 9 general

insurance companies. If the existing public sector insurance companies are considered then

there are presently 13 insurance companies in the life side and 13 companies functioning in

general insurance business. General Insurance Corporation has been sanctioned as the "Indianreinsurer" for underwriting only reinsurance business.

Life Insurance Companies in India

y Life Insurance Companies

y Aviva Life Insurance

y Bajaj Allianz Life Insurance

y Birla Sun-Life Insurance

y HDFC Standard Life Insurance

y ING Vysya Life Insurance

y Life Insurance Corporation

y Max New York Life Insurance

y MetLife Insurance

y Om Kotak Mahindra Life Insurance

y Reliance Life Insurance

y Sahara India Life Insurance

y SBI Life Insurance

y TATA AIG Life Insurance

General Insurance Companies in India


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y Agri lt re Insurance

y Amsure Insurance

y ANZ Insurance

y Bajaj Allianz General Insurance

y C lamandalam General Insurance

y Empl ee State Insurance

y ExportCredit Guarantee Corporation

y ICICI Lombard General Insurance

y IFFC okio General Insurance

y National Insurance

y Oriental Insurance

y Peerless Smart Financial

y Royal Sundaram Alliance

y TATA AIG General Insurance

T i i

market share

0%

10%

20%

30%40%

50%

60%

70%

market share


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Life Insurance Corporation of India

The story of insurance is probably as old as the story of mankind. The same instinct that

prompts modern businessmen today to secure themselves against loss and disaster existed in

primitive men also. They too sought to avert the evil consequences of fire and flood and loss

of life and were willing to make some sort of sacrifice in order to achieve security. Though

the concept of insurance is largely a development of the recent past, particularly after the

industrial era past few centuries yet its beginnings date back almost 6000 years.

Life Insurance in its modern form came to India from England in the year 1818. Oriental LifeInsurance Company started by Europeans in Calcutta was the first life insurance company on

Indian Soil. All the insurance companies established during that period were brought up with

the purpose of looking after the needs of European community and Indian natives were not

being insured by these companies. However, later with the efforts of eminent people like

Babu Muttylal Seal, the foreign life insurance companies started insuring Indian lives. But

Indian lives were being treated as sub-standard lives and heavy extra premiums were being

charged on them. Bombay Mutual Life Assurance Society heralded the birth of first Indian

life insurance company in the year 1870, and covered Indian lives at normal rates. Starting as

Indian enterprise with highly patriotic motives, insurance companies came into existence to

carry the message of insurance and social security through insurance to various sectors of

society. Bharat Insurance Company (1896) was also one of such companies inspired by

nationalism. The Swadeshi movement of 1905-1907 gave rise to more insurance companies.

The United India in Madras, National Indian and National Insurance in Calcutta and the Co-

operative Assurance at Lahore were established in 1906. In 1907, Hindustan Co-operative

Insurance Company took its birth in one of the rooms of the Jorasanko, house of the great

poet Rabindranath Tagore, in Calcutta. The Indian Mercantile, General Assurance and

Swadeshi Life (later Bombay Life) were some of the companies established during the same

period. Prior to 1912 India had no legislation to regulate insurance business. In the year 1912,

the Life Insurance Companies Act, and the Provident Fund Act were passed. The Life

Insurance Companies Act, 1912 made it necessary that the premium rate tables and periodical

valuations of companies should be certified by an actuary. But the Act discriminated between

foreign and Indian companies on many accounts, putting the Indian companies at a

disadvantage.


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The first two decades of the twentieth century saw lot of growth in insurance business. From

44 companies with total business-in-force as Rs.22.44 crore, it rose to 176 companies with

total business-in-force as Rs.298 crore in 1938. During the mushrooming of insurance

companies many financially unsound concerns were also floated which failed miserably. The

Insurance Act 1938 was the first legislation governing not only life insurance but also non-

life insurance to provide strict state control over insurance business. The demand fornationalization of life insurance industry was made repeatedly in the past but it gathered

momentum in 1944 when a bill to amend the Life Insurance Act 1938 was introduced in the

Legislative Assembly. However, it was much later on the 19th of January, 1956, that life

insurance in India was nationalized. About 154 Indian insurance companies, 16 non-Indian

companies and 75 provident were operating in India at the time of nationalization.

Nationalization was accomplished in two stages; initially the management of the companies

was taken over by means of an Ordinance, and later, the ownership too by means of a

comprehensive bill. The Parliament of India passed the Life Insurance Corporation Act on the

19th of June 1956, and the Life Insurance Corporation of India was created on 1st September,

1956, with the objective of spreading life insurance much more widely and in particular to the

rural areas with a view to reach all insurable persons in the country, providing them adequate

financial cover at a reasonable cost.

LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart from its corporate

office in the year 1956. Since life insurance contracts are long term contracts and during the

currency of the policy it requires a variety of services need was felt in the later years to

expand the operations and place a branch office at each district headquarter. Re-organization

of LIC took place and large numbers of new branch offices were opened. As a result of re-

organisation servicing functions were transferred to the branches, and branches were made

accounting units. It worked wonders with the performance of the corporation. It may be seen

that from about 200.00 crores of New Business in 1957 the corporation crossed 1000.00crores only in the year 1969-70, and it took another 10 years for LIC to cross 2000.00 crore

mark of new business. But with re-organisation happening in the early eighties, by 1985-86

LIC had already crossed 7000.00 crore Sum Assured on new policies.

Today LIC functions with 2048 fully computerized branch offices, 109 divisional offices, 8

zonal offices, 992 satallite offices and the Corporate office. LICs Wide Area Network covers

109 divisional offices and connects all the branches through a Metro Area Network. LIC has

tied up with some Banks and Service providers to offer on-line premium collection facility in

selected cities. LICs ECS and ATM premium payment facility is an addition to customer

convenience. Apart from on-line Kiosks and IVRS, Info Centres have been commissioned atMumbai, Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, New Delhi, Pune and many

other cities. With a vision of providing easy access to its policyholders, LIC has launched its

SATELLITE SAMPARK offices. The satellite offices are smaller, leaner and closer to the

customer. The digitalized records of the satellite offices will facilitate anywhere servicing and

many other conveniences in the future.


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LIC continues to be the dominant life insurer even in the liberalized scenario of Indian

insurance and is moving fast on a new growth trajectory surpassing its own past records. LIC

has issued over one crore policies during the current year. It has crossed the milestone of

issuing 1,01,32,955 new policies by 15th Oct, 2005, posting a healthy growth rate of 16.67%

over the corresponding period of the previous year.

From then to now, LIC has crossed many milestones and has set unprecedented performance

records in various aspects of life insurance business. The same motives which inspired our

forefathers to bring insurance into existence in this country inspire us at LIC to take this

message of protection to light the lamps of security in as many homes as possible and to help

the people in providing security to their families.


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SWOT analysis of LIC

Strengths

It is the oldest and most well experienced player having a Pan India presence.

LIC has a strong and very well developed distribution network.

It is having a huge consumer base and is evolved as one of the most powerful brands of

the country.

It has a large product portfolio and claim settlement is easier to get.

It has the advantage of its own as the government guarantee is accompanied with it.

Weakness

Its employees and other staff are lethargic and least motivated to render prompt and

sincere customer service.

Agents not taking into account the needs of people and promote policies having high

commissions only.

Very slow decision making process and internal problems between top management and

lower cadre staff.

Large scale corruption in offices.

Opportunities

Emergence of a huge middle income consumer market in the country

People becoming more aware and demanding so there is scope for a whole lot of

innovative products.

Pension markets, health insurance and large real estate portfolio.

Threats

There is too much internal discord.

Entry of new private players in industry.


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Marketing strategies of LIC

In consonance with the changes taking place in the insurance market, the corporation hasundergone a transformation, simultaneously requiring a revamp in its image. Systematic and

focused PR initiatives and widespread publicity have resulted in markedly improved

visibility. The corporation has emerged with a much younger and sleeker image.

A conscious effort was made to bring about a transformation in the corporate image. Through

various campaigns, the corporation tried to depict the organization as one oriented towards

the younger generation.

The corporation advertising campaigns assisted the marketing strategies.

PR Activities for Consumer Relations:

The business of insurance is purely service which cannot be seen or held. Hence, the

consumer relations activities of LIC concentrate on the customer public and building relations

with prospective customer.

The corporation has time and again made endeavors to reach out to the consumers, interact

with them and keep them satisfied.

The corporation tries to achieve its objective through a number of means

Oral Communication:

Oral communication with the consumer public is the most effective means of presentingfacts and creating understanding of the organizations policies and practices. Employee-

Consumer Communication:

The harmonious relationship that LIC has, through the years , built and maintained with its

customers has only been possible due to its dedicated and committed team of Development

Officers and scores of Insurance Agents throughout the country.

Press Conferences:

Press Conferences are organised to announce new appointments of top executives,

introduction of new schemes, etc. Audio-Visual Communication

Television and Radio broadcasts are a basic medium of consumer communication Television

and Radio advertising

The corporations advertisements reached nearly 25 crore people through over 50 campaigns.

There were 79 hours of TV advertising and 408 hours of Radio advertising.


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Trans-slides:

The Corporation has placed trans-slides at strategic places, like Railway Stations and

Airports, for maximum exposure to public at large. Printed Communication. At LIC printed

communications are used in conjunction with oral communication media.

Press Release :Press releases are frequently handed out to the media by the local PR department on behalf of

the company. These generally comprise of any subject or issue concerning the company,

containing information for policy holders or any item of news value to the media and its

readers.

Journals and Publications:

The corporation takes out its annual working results and several other publications from time

to time to keep the public abreast of the happenings and achievements at LIC.

Financial Results:

The annual financial report of the corporation is published in the National dailies and Is also

circulated amongst the shareholders to keep them informed. It also aims at attracting new

investors.

Booklets, Brochures and Pamphlets:

Booklets, Brochures and Pamphlets are generally taken out to inform its internal and external

public about its various new schemes and act as an effective medium of print

communication.

Posters and Hoardings:

These tools are not only an advertising medium but also a very effective PR tool. LIC uses

posters and hoardings to get quick public notice. Poisters and hoardings are widely placed

throughout the city at busy intersections like subways, railway stations, roadsides, bus

shelters, etc. Other Amenities Provided by LIC

Website:

The Corporations website www.licindia.com gives information about the corporations

products, services, subsidiaries and addresses of branches and about premium payment

through the internet. It also provides Press releases, News sections, Online policy statusOnline Premium Payment.

LIC has tied up with HDFC Bank, ICICI Bank, UTI Bank, Bank of Punjab, Global Trust

Bank, Corporation Bank, The Federal Bank Ltd., Citibank, and service providors like Bill

Junction.com, timesofmoney.com to offer the online premium payment facility to its

customers in select cities.


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Information Kiosks:

The corporation has installed online information kiosks at prominent places across the

country. This provides information about the Products, services and policy status reports to

the customers.

Customer Contact Programme:

The purpose of such a campaign is to strengthen the relationship with the customers and to

build bridges of understanding. FINANCIAL RELATIONS

There are quite a few financial publics of LIC.

1) Government Agencies

2) Banks and Financial Institutions

3) Statutory Bodies e.g. IRDA(Insurance Regulatory and Development Authority)

4) Auditors

To communicate with them and to keep them informed of the companys progress several

activities are undertaken by the PR Deptt.

The Annual General Meeting, The Annual Report, The annual report is released annually to

inform all publics of the companys working results.The chairmans statement is a

comprehensive guide to what the company is and where it strives to be. It comprises of the

corporations corporate vision, philosophy and policies, management contributions, future

plans and a host of other such important aspects.

COMMUNITY RELATIONS:

LIC regularly provides Health vans to various organizations across the country. Thecorporation also sponsers many sports events at the national level. Numerous publicity

projects with a social purpose are undertaken at the zonal level. Recently the North

Zone(Delhi) associated itself with the Perfect Health Mela to propagate the cause of good

health.

.


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ICICI PRUDENTIAL

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank - one oIndia's foremost financial services companies-and Prudential plc - a leading international

financial services group headquartered in the United Kingdom. Total capital infusion standsat Rs. 47.80 billion, with ICICI Bank holding a stake of 74% and Prudential plc holdin

26%.

We began our operations in December 2000 after receiving approval from InsuranceRegulatory Development Authority (IRDA). Today, our nation-wide reach includes 1,960

branches (inclusive of 1,096 micro-offices), over 237,000 advisors; and 6 bancassurancpartners.

For three years in a row, ICICI Prudential has been voted as India's Most Trusted PrivatLife Insurer, by The Economic Times - AC Nielsen ORG Marg survey of 'Most TrustedBrands'. As we grow our distribution, product range and customer base, we continue ttirelessly uphold our commitment to deliver world-class financial solutions to customers allover India.

The Company

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premierfinancial powerhouse, and Prudential plc, a leading international financial services grouheadquartered in the United Kingdom. ICICI Prudential was amongst the first private sectorinsurance companies to begin operations in December 2000 after receiving approval fromInsurance Regulatory Development Authority (IRDA).

ICICI Prudential Life's capital stands at Rs. 4,780 crores (as of December 31, 2009) withICICI Bank and Prudential plc holding 74% and 26% stake respectively. For the periodApril 1, 2009 to September 30, 2009, the company has garnered total received premium new

business premium of Rs 2,128 crores and has underwritten over 10 million policies sincinception. The company has assets held over Rs. 53,000 crores as on December 31, 2009.

For the past nine years, ICICI Prudential Life has retained its leadership position in the lifeinsurance industry with a wide range of flexible products that meet the needs of the Indiancustomer at every step in life.

Distribution


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ICICI Prudential Life has one of the largest distribution networks amongst private lifinsurers in India. It has a strong presence across India with 1,960 branches (including 1,096

micro-offices) and an advisor base of over 230,000 (as on December 31, 2009).

The company has 6 bancassurance partners having tie-ups with ICICI Bank, JalgaonPeoples Co-op Bank, Ratanagiri District Central Co-op Bank, Ballia Kshetriya Co-

operative Bank, Renuka Nagrik Sahakari Bank, Bhandara Urban Co-operative Bank.

About the Promoters

ICICI Bank

About ICICI Bank: ICICI Bank Ltd (NYSE:IBN) is India's largest private sector bank andthe second largest bank in the country with consolidated total assets of about US$ 10

billion as of June 30, 2009. ICICI Banks subsidiaries include Indias leading private sectorinsurance companies and among its largest securities brokerage firms, mutual funds an

private equity firms. ICICI Banks presence currently spans 19 countries, including India.

Prudential Plc

Established in London in 1848, Prudential plc, through its businesses in the UK, Europe,US, Asia and the Middle East, provides retail financial services products and services t

more than 21 million customers, policyholder and unit holders and manages over 249billion of funds worldwide (as of March, 2009). In Asia, Prudential is the leading Europe-

based life insurer with life operations in China, Hong Kong, India, Indonesia, Japan, Korea,Malaysia, the Philippines, Singapore, Taiwan, Thailand, and Vietnam. Prudential is one othe largest asset management companies in terms of overall assets sourced in Asia ex-japan,with 36.8 billion funds under management (as of March, 2009) and operations in tenmarkets including China, Hong Kong, India, Japan, Korea, Malaysia, Singapore, Taiwan,

Vietnam and United Arab Emirates.


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SWOT analysis of ICICI PRUDENTIAL

Strength

ICICI Prudential is No. 1 private life player in India. Innovative insurance policies

with rider benefits.

Motivation factors provided by the company.

One of the largest financial Institution of Indias.

Training provided to all people associating with ICICI prudential.

Highest paid up capital deposited in IRDA, in comparison to all players.

Assets base of ICICI is more than Rs 1,08,000 Crores.

Weakness

Very huge premiums of policies.

Compare to other insurance sector.

Minimum premium is 19000.(Expect tax saving policy only 10,000)

Target upper class people only.

Policy charges are very high.

Poor distribution is in English language only.

Opportunities

Tie up with more corporate agents all over India.

Tie up with broker also

No. of adopting new technology.

Strong Brand of Company Helps to boost sales inn market

Attract more people of providing customer centric products.

Threats

Threat from existing life insurance players

Threat from new entrance.

Threat to substitute products

Change in the policy of IRDA

People dont aware of different distribution channel.


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Marketing Strategies of ICICI Prudential Life Insurance Co. Ltd

It was time when the marketing team was thinking about an advertising campaign, almost

everyone, including the company's board, pooh-poohed the idea. At that time people thought

Company is wasting money. But ICICI discarded this fear" typically used for hawkinginsurance, choosing instead a "happy" platform to convey a more positive message. Even

today after it has rolled out so many campaigns, ICICI remains among the top advertisers: ad

spends, as a percentage of new business premium, range between 0.5 per cent and 0.75 per

cent. Lowe (Lintas) has been the creative advertising agency for ICICI Prudential Life since

the beginning.

The Target audience:

Representing an ideal mix of medium to high net worth individuals: The consumers most

disposed towards buying life insurance. Middle-aged professionals, primarily male, salaried

and self employed, age group: 28 - 45 years, household income: Rs.20, 000 and above.

Creative Strategy:

The essence of the creative strategy: To get the consumer to re look at Insurance as a means

to lead a worry free life and not as a necessary evil. When ICICI Prudential Life Insurance

first began operations, the task was to present the visiting card of the company to the public at

large and build credibility and stature and to give the consumer the confidence that 'here was

a company that could be trusted to invest funds with'. This required a corporate campaign,

which started with advertising to establish the brand, build awareness and give the brand a

larger than life image. To this effect the core brand insight highlighted was "As head of the

family it's my responsibility to take care of my loved ones and protect them from the

uncertainties of life", summed up in the advertising idea:

We cover you at every step in life (Suraksha Zindagi ke har kadam par). ICICI Pru was

positioned as an enabler of protection relevant to the needs of the life stage that you are in.

Over the last few months, ICICI Prudential has been advertising in outdoor, TV and press.

The company launched a corporate television campaign Saat Phere which took the

emotions and thoughts of initial Sindoor corporate film a few steps further. The film

highlights the strength of promises that a husband makes to his wife, through the depiction of

everyday situations, and then goes on to emphasize that ICICI Prudential will stand by the

husband to help him fulfill all these promises. The TV campaign has also been extended to

outdoor. The company has also undertaken press and internet campaigns to inform customersabout benefits of some of its products, particularly retirement solutions, through the

Chintamani campaign.

Once the corporate image and brand identity were established, and as the company expanded

and its product range grew, the next phase of communication was to give the consumer a

rational and tangible reason to buy - first of all insurance and secondly from ICICI Prudential

Life. This was tackled through product-specific advertising, such as for ICICI Pru Smart Kid,

retirement solutions or Lifetime.


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The Creative execution:

Through television channels : Building image and creating a differential in the most creative

and compelling manner. The creative execution heightened the emotional connect with the

ICICI Pru brand- Indian; satisfaction of knowing that ones loved ones are protected.

Symbolic representation of the protector of the family through situations showcasing various

life stages and creating endearing imagery of protection and familial bonding.

Press: Gave the consumer a rational and tangible reason to buy insurance first and secondly

from ICICI Prudential. The product specific advertising focussed on changing the prevalent

perception about insurance and breaking a few myths: non- affordability, insurance not being

good investment option and the myth that insurance was good only for tax saving. After the

hugely successful Chintamani (retirement) and Saat Phere (corporate) campaigns, ICICI

Prudential Life Insurance also introduced some innovations in the category, such as: having a

tax planner by the name of Chintamani on radio, who would answer consumers queries

about the role of insurance in financial planning.

Other Communications:[

Other programs included direct mail, PR of communications campaign in press & TV,

website marketing; and database generation through Bancassurance channels. Other

initiatives included tie-up with the Dabbawalla Organisation in Mumbai for a direct

marketing exercise, to talk to the customer through a non-cluttered route, and thereby have a

higher impact. The direct mailer was about ICICI Prudentials retirement solutions and the

tax benefits that one can avail of buy investing in any of these. About 100,000 direct mailers

were attached to the dabbas, in areas such as Churchgate, Bandra and Andheri where there

are mostly office-goers. ICICI Prudential Life Insurance has also announced a strategic

distribution tie-up with Hariyali Kisaan Bazaar, the rural business arm of DCM Shriram

Consolidated Ltd (DSCL). As a partner, Hariyali Kisaan Bazaar can now distribute ICICI

Prudential's protection, wealth creation, retirement solutions and health insurance products to

customers across the its growing number of rural business hubs in the country.

In addition to advertising, the company has also initiated several activities to raise consumer

awareness about life insurance and ICICI Prudential. It includes seminars ICICI Prudential

regularly holds consumer awareness meets on the need for retirement planning in different

cities such as Pune, Aurangabad, Coimbatore, Nagpur, Bangalore and Mangalore. These are

very well attended and have contributed significantly towards increasing awareness about thecategory and the company. Apart from this, company also entered into alliances with telecom

companies, as well as companies like BPCL and Dominos.


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The results of communication efforts:

Being no: 1 in awareness and saliency.

Awareness: ICICI Prudential showed a significant jump in awareness between Feb and Sept

2001.

Highest score among all Insurance players including LIC, on image parameters like safety,

modernity, service, good returns etc. Intention to invest: Next only to LIC as per research (All

Source: Research by ORG Marg). No. of calls and emails: There were 70,000 calls at the call

center and 6582 emails in the year 2001. Today, ICICI Prudential are fairly high on

awareness, among target segment. Company have a 86% brand recall today.A research

survey shows that among the investing public. About 11% of the investing public knew

Prudential ICICI top of mind. It is a fair indicator of the share that the brand enjoys in the

market. On spontaneous level ICICI prudential are at 30%. ICICI Prudential Life was

awarded the INDYs Award for Excellence in Mass Communication in the category of Most

Creative Advertisement- Television.


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LIC Vs ICICI Prudential

Comparison and analysis

With private players paying much attention to advertising and promotional activities, LIC,

too, was forced to make efforts to increase its visibility and enhance its brand image. The

company commenced intense, systematic and well-focused public relations and publicity

activities both at the corporate and operational levels.

LIC upped its ad spend to tackle competition and succeeded in forging way ahead. LIC has

advertised in satellite channels as well as terrestrial channels. LIC has to reach out to non-

resident India policy holders as well as its other corporate customers who are based abroad.

ICICI Prudential has advertised on several channels from the Star TV bouquet, Zee Network

and Sony. The company have spent about Rs 50 million on TV advertising last year. With the

geographical expansion, TV became a viable medium and the corporate campaign for ICICI

Prudential Life was run on TV, because the medium lends itself well to an emotional type of

films that strike a chord with the audience. Product advertising, which needs to impartinformation, was largely done through print and outdoor channels, as these are appropriate

for rational type of messages, ICICI Prudential Life Insurance campaign was short-listed as

one of the 12 most effective campaigns for the year 2001 in the EFFIE awards. According to

an ORG MARG study, the ICICI Prudential brand name and advertising had the highest

recall amongst all private players, and was only marginally behind LIC.

ICICI Prudential Life was awarded the INDYs Award for Excellence in Mass

Communication in the category of Most Creative Advertisement-Television.

(The scores for advertisement were compiled on spontaneous recall, aided recall and

likeability. The top ads are selected on the basis of their score.)


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Strategies Adopted By LIC

y LIC started intense , systematic & well focused public relation and publicity activities

both at the corporate and operational levels.

y LIC upped its ad spend to tackle competition.

y LIC has launched its SATELLITE SAMPARK offices.

y LIC has established state of art machinery.

Strategies adopted by ICICI PRUDENTIAL

y ICICI Prudential launched the TruLife Club for its high-value policyholders as part

of its marketing strategy.

y Pragati Ki Anokhi Paathsaala orPKAP. PKAP aims to bring out the inherent

creative skills amongst children.

y ICICI Prudential Life has also partnered with e-governance kiosks in Andhra Pradesh

- aponline.com and Rajasthan - emitra.com, to enable consumers renew their policies

in their kiosks.


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Various promotional advertisements used by LIC and ICIC PRUDENTIAL

Marketing strategies of LIC includes promoting their products which is necessary for life and

it acts as saver to the policy holder as well as to his entire family.LIC earlier just focused on

providing life insurance to people but apart of it ICICI PRUDENTIAL marketing strategies

include not only providing the policy holders with a life cover but also providing them with

additional benefits like tax saving schemes etc. As the competition is increasing LIC has

started changing its strategies to provide people with products and services which are more

flexible.


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REFERENCES

www.iciciprulife.com

www.licindia.com

www.irdaindia.org

www.insuremagic.com

www.icmrindia.org/.../Business%20Strategy2/BSTR110.html www.icmrindia.org/.../marketing%20communications/CLMC036.html

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