MARKETING STRATEGY OF LIC
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MARKETING STRATEGY
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MARKETING STRATEGY
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GROUP MEMBERS Name:-
ANSHU TIWARI AYUSH DIXIT
Roll No:-
2012098 2012005
Presented To:-
Prof.Mehul RAJA
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INTRODUCTION OF LIC
1818: Oriental Life Insurance Company, the first life insurance company on Indian soil started functioning.
1938: Earlier legislation consolidated and amended the Insurance Act with the objective of protecting the interests of the insuring public.
On September 1st, 1956 Life Insurance Corporation of India was created, by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs 5 crore from the Government of India .
It is the largest life insurance company in India and also the country's largest investor.
It is fully owned by the Government of India. It also funds close to 24.6% of the Indian Government's expenses
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BCG MATRIX OF LIC
Jeevan Ankur
Jeevan SaralJeevan AnandJeevan Sathi
Bima BachatJeevan TarangKomal JeevanEndowment PlusJeevan ShreeChild Career PlanJeevan Ankur
Money BackJeevan SurabhiJeevan Amrit
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BCG MATRIX SOLUTIONS OF LIC
Star:- The products which are already in star to maintain it the LIC should recall and create and innovative adds for that same product in a new way so as to maintain in the same category.
Dogs:- The products fall in dogs category it should be present and it should be renovate with new terms & conditions and new policy should be present with the adds on the same and then to present it with clients in newer ways with maximum profits for the insurer due to which it can fall in ? category.
Cash Cow :- The product should be again come up with the newer terms & conditions. With the higher commission rates for the agents. So that agents can sell more products and then automatically the revenue will be increasing.
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PORTERS 5 MODEL IN LIC
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PORTER’S SOLUTIONS
If the competitors come up with the new plans of policy with lower price & higher profits then its would be a little bit problem for LIC.
Bargaining power can be low if the LIC himself start insuring the companies as well instead of taking a help of Munich Insurance.
LIC should maintain and work on its customer care service more efficiently and treat the clients in proper & disciplined manner. So as to avoid the fear of moving the clients.
Multiple of companies has multiple offers so the bargaining power is high so to avoid it the LIC company should maintain and every now and then recall its advertising, its branding its repositioning the target markets.
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STP
Segmentation:- Middle Group Mostly
Targeting:- 20 – 35 Years Age.
Positioning:- Endowment for 10 – 15 Years.(Return) Term Insurance.
Also through Ads and Promotions.
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PROBLEM STATEMENT
Problem :- Currently LIC is facing a huge problem in South Region. Suggestion from my side
Increase the no. of Agents Commission Free health Insurance for 2-3 years and For the age group 20-35 yrs.
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WORKING OF LIFE INSURANCE
AVOID
REDUCE
TRANSFER
Insurance deals with transfer of risk from the consumer to the provider. Insurance works on a fundamental principle of pooling of risk
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Product Price Place Promotion People Process Physical
Evidence
The marketing mix is the combination of marketing activities that an organisation engages in so as to best meet the needs of its targeted market.The Insurance business deals in selling services and, therefore due weight-age in the formation of marketing mix for the Insurance business is needed.
THE LIFE INSURANCE MIX
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Auto Insurance Home Insurance Health Insurance Accident,
Sickness and Unemployment Insurance
Casualty Insurance
Life Insurance Property
Insurance Liability
Insurance Credit Insurance Others:
All-risk Insurance
Kidnap and Ransom Insurance
Legal expenses Insurance
Locked funds Insurance
Pet Insurance Travel Insurance Reinsurance
Premium charged against the policies. (Includes: Mortality, Expenses, Interests)
Interest charged for defaulting the payment of premium.
Commission charged for underwriting and consultancy.
PRODUCT PRICE
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3. PRICE
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Managing the Insurance Personnel
Locating a Branch
Advertising and Publicity Organisation of
Conferences and Seminars
Incentive to Policyholders Exhibitions Participation in fairs and
festivals Mobile Publicity Van
PLACE PROMOTION
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PLACE
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Training & Development of Employees.
Strong Relationship with Intermediaries.
Use of IT for efficiency, both at staff and agent level.
Internet/Web Pages
Brochures Business Cards Building &
Offices Signage Financial
Reports Punch Lines Employee’s
Dress Code
PEOPLE PHYSICAL EVIDENCE
PROCESS
Customer friendly. Speed and
accuracy in payment.
Easy and convenient processing method.
Schemes catering demand of customers.
IT & Data warehousing to smoothen the process flow
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LIC OF INDIA MARKETING TRIANGLE Marketing Triangle
COMPANY
Internal Marketing
SERVICE PROVIDER
External Marketing
CONSUMERS
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LIC OF INDIA – FLOWER OF SERVICE
Core
Payment
information
Consultation
Order Taking
Hospitality
Exception
Safe Keeping
Billing
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SITUATION ANALYSIS
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4 – I‘S OF LIFE INSURANCE
Service
Intangibility
InconsistencyInventory
Inseparability
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STRENGTHS:
Domestic image of HDFC supported by Prudential’s international image is strength of the company.
Strong and well spread network of qualified intermediaries and sales person. Strong capital and reserve base. The company provides customer service of the highest order
WEAKNESS:
Heavy management expenses and administrative costs. Low customer confidence on the private players.
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OPPORTUNITIES:
Insurable population –According to ING only 10% of the population is insure which represents around 30% of the insurable population. This suggests more than 300m people, with the potential to buy insurance, remain uninsured.
There will be inflow of managerial and financial expertise from the world’s leading insurance markets. Further the burden of
educating consumers will also be shared among many players.
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THREATS
Reorganization of PSU’s. The all PSU’s have started to redefine their services to attract customer’s attention.
A few foreign Insurance companies have been permitted to increase their number branches and its entry has taken away some business of the existing companies.
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Porters five forces
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media mix
Should Increase its Media Mix.
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Promotion Mix
Should Increase its Promotion in Rural areas
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Life insurance corporation of India (LIC) is the biggest life insurance player in India Insurance Industry.its strong brand backed by long experience and well established network has helped it to remain on the peak.
LIC offers a very vast and huhge range of diversified products catering to needs of various sections of people in India. It offers individual solutions considering their specific financial requirement and risk profiles.
Conclution
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