Marketing Strategies of IDBI Federal

8/12/2019 Marketing Strategies of IDBI Federal.

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Marketing Mix and Promotional Strategies

of IDBI Federal Life Insurance Co. Ltd.

Report by:

UNDER THE GUIDANCE OF

&

Asst. Branch Head

IDBI Federal Life Insurance Co Ltd.


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DECLARATIONI hereby declare that the project titled !ar"etin# !i$ and

%rootional 'trate#ies of IDBI Federal Life Insurance Co

Ltd.( Is an ori#inal project done by e and no part of thisproject is ta"en fro any source or aterial published and not

subitted to any other colle#es and uni)ersity later.

.

ACKNOWLEDGEMENT


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Firstly* I +ould li"e to e$press y sincere #ratitude to ,* IDBI

Federal Life Insurance Co Ltd.-* y %roject #uide* for his attenti)e

#uidance* insi#htful coents and ad)ice for carryin# out this %roject.

He al+ays #i)es e continuous encoura#eent and support* and

shares +ith e his "no+led#e and e$perience. I really appreciate the

effort he put in the de)elopent of e and y +or" and his help toipro)e the uality of y %roject.

I +ould li"e to e$press y eternal #ratitude and than"s to y parents

for their lo)e and support throu#hout y life. /heir support and

absolute faith in y abilities ha)e been a hu#e oti)ation. %erhaps*

ere than"s +ill not suffice for +hat they ha)e done for e.

Lastly* I +ould li"e to ac"no+led#e each and e)eryone +ho

contributed for y +or" either by directly or indirectly.


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Executive Summary

0ae1.

2oll no.1 .

'ec3 .

Organizational etail!:

0ae of the or#ani4ation: IDBI Federal Life Insurance Co Ltd.

Address of the 5r#ani4ation: ,

,

/elephone 0ubers1

!ain acti)ity of the or#ani4ation: Life Insurance.

Company guie:

Name1


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De!ignation1

Telep"one number!1

E#mail1

Title o$ t"e pro%ect: !ar"etin# !i$ and %rootional 'trate#ies focusin# on the role ofad)ertisin# and consuer beha)ior to+ards the prootional

'trate#ies of IDBI Federal Life Insurance Co Ltd.

Area o$ pro%ect: !ar"etin#.

Ob%ective o$ t"e pro%ect: /o analy4e !ar"etin# !i$ and %rootional 'trate#ies of


De!cription o$ t"e pro%ect in brie$: !6 ain ai is to understand the !ar"etin#

'trate#y and %rootional 'trate#ies adopted by



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&et"oology1Field +or" based on %riary and secondary data.

Recommenation! to ID'I (eeral Li$e In!urance Co Lt1

%rint & 7lectronic !edia Ad)ertiseent should be used at a hi#h le)el especially /8

ads should be used as its reach to the interior of the country is stron# and also the

"ind of influence it sho+ case on people is uch hi#her copare to other edias.

After the initial prootional capai#n the relati)e ad)anta#e of IDBI F52/I' LIF7

I0'92A0C7 Co. Ltd o)er its copetitor should be hi#hli#hted.

Hoardin#s at prie areasshould be used.

/he ost iportant of all is to create a+areness about copany:s product as +ell as

a brand in the ar"et is )ery necessary.

/he copany can use celebrity to create a+areness about the brand and also can

collaborate +ith soe production houses of fils and tele)ision serials+hich can

reach people in ass.

C O N T E N T

Title


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1. Brief about Insurance Industry.

;. Challen#es facin# Insurance Industry.

3. %resent scenario of Insurance industry

.4. Copany %rofile.

. Copetitors.

=. !ar"etin# !i$ in IDBI federal life insurance copany.

7. Brief about IDBIfederal products.

8. IDBIfederal promotional strategies.

9. Brand a+areness of IDBI federal life insurance co

ltd.

?. Recommendations.

. Conclusion.

;. Reference.


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I0/25D9C/I50

@here)er there is uncertainty there is ris". @e do not ha)e any control o)er

uncertainties +hich in)ol)es financial losses. /he ris"s ay be certain e)ents li"e death*

pension* retireent or uncertain e)ents li"e theft* fire* accident* etc.

Insurance is a financial ser)ice for collectin# the sa)in#s of the public and pro)idin# the

+ith ris" co)era#e. /he ain function of Insurance is to pro)ide protection a#ainst the

possible chances of #eneratin# losses. It eliinates +orries and iseries of losses by

destruction of property and death. It also pro)ides capital to the society as the funds

accuulated are in)ested in producti)e heads.

Types of Insurance:

. Life Insurance 3 Insurance #uaranteein# a specific su of oney to a desi#nated

beneficiary upon the death of the insured* or to the insured if he or she li)es beyond a

certain a#e.

;. Health Insurance 3 Insurance a#ainst e$penses incurred throu#h illness of the insured.

. Liability Insurance 3 /his insures property such as autoobiles* property and

professionalbusiness ishaps.


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C"allenge! $acing In!urance Inu!try T"reat o$ Ne) Entrant!: /he insurance industry has been buddin# +ith ne+

entrants e)ery other day. /herefore the copanies should car)e out niche areas such

that the threat of ne+ entrants i#ht not be a hindrance. /here is also a chance that

the bi# players i#ht suee4e the sall ne+ entrants.

*o)er o$ Supplier!:/hose +ho are supplyin# the capital are not that bi# a threat.

For instance* if soeone as a )ery talented insurance under+riter is presently+or"in# for a sall insurance copany* there e$ists a chance that any bi# player

+illin# to enter the insurance industry i#ht entice that person off.

*o)er o$ 'uyer!:0o indi)idual is a bi# threat to the insurance industry and bi#

corporate houses ha)e a lot ore ne#otiatin# capability +ith the insurance

copanies. Bi# corporate clients li"e airlines and pharaceutical copanies pay

illions of dollars e)ery year in preius.

Availability o$ Sub!titute!:/here e$ist a lot of substitutes in the insurance industry.

!ajorly* the lar#e insurance copanies pro)ide siilar "inds of ser)ices be it auto*

hoe* coercial* health or life insurance.

@ith the si4e of +orlds population reachin# #i#antic proportions* #lobal insuranceis also

#ainin# in stature. %ri)ate as +ell #o)ernent insurance a#encies around the +orld are

runnin# for insurin# li)es of illions ,and in the process insurin# their o+n businesses

ore-.


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In fact* the insurance industryis a "ey coponent of the +orld econoy today o+in# to its

preius* its in)estent and* abo)e all* the social and econoic role it plays in co)erin#

personal and business ris"s.

(inancial viability o$ in!urance companie!

Ho+e)er* althou#h the insurance industry is a flourishin# in +orld econoy today* one

need to "eep in ind that financial )iabilitystability of the insurance copany is a ajor

consideration at the tie of purchasin# insurance contract. /he )iability factor is iportantbecause any a ties* an insurance preiu paid currently pro)ides co)era#e for losses in

distant future and there are instances +here a nuber of insurance copanies ha)e #one

insol)ent* thus lea)in# their policyholders +ith little helpful or no co)era#e. /herefore*

e)en if the #lobal industry is stren#thenin# ore and ore* the +ea" lin"s are also co3

e$istent and blind faith can lead to a se)ere do+nfall. /here are also independent ratin#

a#enciesfor insurance copanies +hich could be helpful in pro)idin# sound inforation

on financial )iability of )arious insurance copanies.

&ar+eting in In!urance

Insurance coes under the ser)ice sector and +hile ar"etin# this ser)ice* due care is to be

ta"en in uality product and custoer satisfaction. @hile ar"etin# the ser)ices* it is also

pertinent that they thin" about the inno)ati)e prootional easures. It is not sufficient that

you perfor +ell but it is also iportant that you let others "no+ about the uality of your

positi)e contributions.

/he creati)ity in the prootional easures is the need of the hour. /he ad)ertiseent*

public relations* +ord of outh counication needs due care and personal sellin#

reuires intensi)e care.

/here are insurance ar"etin# strate#ies that can ta"e any insurance a#ency fro ediocre

to success +hen utili4ed correctly. Hence it is necessary that an insurance copany

foruli4e their ar"etin# strate#ies +ith lot of thou#ht and dili#ence to capture the


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2efors ha)e helped to achie)e rapid #ro+th in critical areas and sustain the o)er a

period of tie throu#h channeli4ed strate#ies.

%ost refors* the nuber of players ha)e increased fro to ;; players presently

re#istered under I2DA,I0'92A0C7 27E9LA/526 A0D D787L5%!70/ A9/H52I/6 5F

I0DIA-.

Company Profile

IDBI Federal Life Insurance Co Ltd is a joint )enture of ID'I 'an+ 3 India:s preier

de)elopent and coercial ban"* (eeral 'an+3 one of India:s leadin# pri)ate sector

ban"s and Agea! In!urance International 3 a ultinational insurance #iant* based out of

7urope.

In this )enture* IDBI o+ns G euity +hile Federal Ban" and A#eas o+n ;= euity

each. IDBI Federal launched its first set of products across India in !arch ;??G* after

recei)in# the reuisite appro)als fro the Insurance 2e#ulatory De)elopent Authority,I2DA-.

In just fi)e onths of inception* IDBI Federal becae one of the fastest #ro+in# ne+

insurance copanies to #arner 2s ?? crores in preius.

As on !arch st* ;??* the Copany had collected ore than ;G crores in preius*

throu#h o)er GJ*??? policies and o)er 2s ;G; crores in 'u Assured. /he Copany


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offers its ser)ices throu#h a )ast nation+ide net+or" across the branches of IDBI Ban" and

Federal Ban"* in addition to a si4eable net+or" of ad)isors and partners.

IDBI Ban" Ltd continues to be* since its inception* India:s preier industrial de)elopentban". Created in = to support India:s industrial bac"bone* IDBI Ban" has since e)ol)ed

into a po+erhouse of industrial and retail finance. /oday* it is aon#st India:s foreost

coercial ban"s* +ith a +ide ran#e of inno)ati)e products and ser)ices* ser)in# retail

and corporate custoers in all corners of the country fro =G Branches ? A/!s.

/he Ban" offers its custoers an e$tensi)e ran#e of di)ersified ser)ices includin# project

financin#* ter lendin#* +or"in# capital facilities* lease finance* )enture capital* loan

syndication* corporate ad)isory ser)ices and le#al & technical ad)isory ser)ices to its

corporate clients as +ell as ort#a#es and personal loans to its retail clients.

As part of its de)elopent acti)ities* IDBI Ban" has been instruental in sponsorin# the

de)elopent of "ey institutions in)ol)ed in India:s financial sector such as the 'ecurities

and 7$chan#e Board of India ,'7BI-* 0ational 'toc" 7$chan#e of India Liited ,0'7- and

0ational 'ecurities Depository Ltd.


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Federal Ban" is a scheduled coercial ban" founded in .Federal Ban" is one of

India:s leadin# pri)ate sector ban"s* +ith a doinant presence in the state of Kerala. It has

a stron# net+or" of o)er =; Branches* =J A/!s spread across India. /he Ban" pro)ides

o)er four illion retail custoers +ith a +ide )ariety of financial products. Federal Ban" isone of the first lar#e Indian ban"s to ha)e an entirely autoated and interconnected branch

net+or".

/he Ban" has a +ide ran#e of ser)ices li"e Internet Ban"in#* !obile Ban"in#* /ele

Ban"in#* Any @here Ban"in#* debit cards* online bill payent and call centre facilities to

offer round3the3cloc" ban"in# con)enience to its custoers.


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/he Ban" has been a pioneer in pro)idin# inno)ati)e technolo#ical solutions to its

custoers* ha)in# +on se)eral a+ards li"e the a+ard for Best 9se of I/ in 2etail Ban"in#

by IBA* /FCI and Infosys.

A#eas ran"s aon# 7urope:s top ;? financial institutions and is a reputed international

brand in financial ser)ices. 7uropean financial ser)ices pro)ider en#a#ed in ban"in# and

insurance +ith a presence in o)er ? countries.

A#eas has subsidiaries in France* Eerany and Hon# Kon#. A#eas has a trac" record inde)elopin# partnerships +ith stron# financial institutions and "ey distributors in different

ar"ets around the +orld and successfully operates Italy* %ortu#al* China* !alaysia* India

and /hailand. A#eas eploys ore than *??? people and has annual inflo+s of alost

792 G billion.


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Milestones

!arch ;??G IDBI Federal starts operations +ith t+o products Hoesurance &

@ealthsurance.

Au#ust ;??G IDBI Federal becoes one of the fastest #ro+in# ne+ life insurers to

collect preius +orth 2s ?? crores.


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5ctober ;??G IDBI Federal launches Bondsurance

Manuary ;?? IDBI @ealthsurance Cup ;?? India )s 'ri Lan"a held in 'ri Lan"a.

!arch ;?? collected preiu of o)er ;G corers and GJ*??? policies and a 'u

assured of 2s ;G; crores since inception

0o)eber ;?? IDBI Federal launches Incoesurance


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/he !ission

@e ai to be reco#ni4ed as a leadin# pro)ider of +ealth ana#eent* protection and

retireent propositions that satisfy the needs of and add )alue to our "ey custoer

se#ents.

@e shall continually stri)e to enhance the custoer e$perience* in relationship

ana#eent and ser)ice deli)ery* and interact +ith our custoers in the ost con)enient

and cost effecti)e anner.

@e shall be transparent in our dealin#s and act +ith inte#rity.

@e shall in)est in and build uality huan capital in order to achie)e our ission.

8ision/o be a custoer centric channel* +hile settin# benchar"s in the life insurance industry*

in ters of presence* producti)ity and profitability.


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Copetitors of IDBI Federal Life Insurance co. Ltd.

. Bajaj Allian4 Life Insurance Copany Liited ;?. A7E50 2eli#are Life Insurance Copany

Liited ;. Birla 'un Life Insurance Co. Ltd ;. DLF %raerica Life Insurance Co.

Ltd.

. HDFC 'tandard Life Insurance Co. Ltd ;;. 'tar 9nion Dai3ichi Life Insurance Cop. Ltd.

. ICICI %rudential Life Insurance Co. Ltd.

. I0E 8ysya Life Insurance Copany Ltd.

=. Life Insurance Corporation of India

J. !a$ 0e+ 6or" Life Insurance Co. Ltd

G. !et Life India Insurance Copany Ltd.


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. Kota" !ahindra 5ld !utual Life Insurance Liited

?. 'BI Life Insurance Co. Ltd

. /ata AIE Life Insurance Copany Liited

;. 2eliance Life Insurance Copany Liited.

. A)i)a Life Insurance Co. India %)t. Ltd.

. 'ahara India Life Insurance Co* Ltd.

. 'hrira Life Insurance Co* Ltd.

=. Bharti ANA Life Insurance Copany Ltd.

J. Future Eenerali Life Insurance Copany Ltd.

. Canara H'BC 5riental Ban" of Coerce Life Insurance Co. Ltd

.

&AR,ETIN- &I. IN ID'I (eeral Li$e In!urance CoLt

/he ter insurance ar"etin# refers to the ar"etin# of Insurance ser)ices +ith the ai to

create custoer and #enerate profit throu#h custoer satisfaction. /he Insurance

!ar"etin# focuses on the forulation of an ideal i$ for Insurance business so that the

Insurance or#ani4ation sur)i)es and thri)es in the ri#ht perspecti)e.

/he ar"etin# i$ is the cobination of ar"etin# acti)ities that an or#ani4ation en#a#es

in so as to best eet the needs of its tar#eted ar"et. /he Insurance business deals in


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sellin# ser)ices and therefore due +ei#ht a#e in the foration of ar"etin# i$ for the

Insurance business is needed.

/he ar"etin# i$ includes sub3i$es of the J %:s of ar"etin# i.e. the product* its price*

place* prootion* people* process & physical attraction. /he abo)e entioned J %:s can be

used for ar"etin# of Insurance products* in the follo+in# anner1


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*ROD/CT:

A product eans +hat +e produce. If +e produce #oods* it eans tan#ible product and

+hen +e produce or #enerate ser)ices* it eans intan#ible ser)ice product. A product is

both +hat a seller has to sell and a buyer has to buy. /hus* an Insurance copany sells

ser)ices and therefore ser)ices are their product. @hen a person or an or#ani4ation buys an

Insurance policy fro the insurance copany* he not only buys a policy* but alon# +ith it

the assistance and ad)ice of the a#ent* the presti#e of the insurance copany and the

facilities of clais and copensation. It is natural that the users e$pect a reasonable return

for their in)estent and the insurance copanies +ant to a$ii4e their profitability.

Hence* +hile decidin# the product portfolio or the product3i$* the ser)ices or the schees

should be oti)ational. IDBI Federal pro)ides any products +hich cater to the needs of

the Indian custoers. IDBI Federal products13

@7AL/H'92A0C7

I0C5!7'92A0C7

B50D'92A0C7

/72!'92A0C7

H7AL/H'92A0C7

27/I27'92A0C7

E259% !IC25'92A0C7

H5!7'92A0C7

L5A0'92A0C7

CHILD'92A0C7


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0EALT1S/RANCE:

/he @ealthsurance !ilestone %lan is a uniue Insured @ealth %lan desi#ned to help cross

different ilestones in one:s life. It enables custoers to sa)e and build +ealth under the

protection of Insurance to eet their financial #oals. /he @ealthsurance !ilestone %lanoffers a +ide ran#e of In)estent options* Insurance options and unatched fle$ibility that

allo+s custoers to custoi4e a plan suited to their needs. Custoers can plan for their

ilestones li"e copletion of school education for their child* a arria#e* acuisition of a

ne+ house and so on. /his %lan coes +ith a +ide ran#e of in)estent options and J

insurance benefits 3 all pac"a#ed +ith a lo+ char#e structure and unatched fle$ibility.

INCO&ES/RANCE:

IDBI Federal Incoesurance 7ndo+ent and !oney Bac" %lan is loaded +ith lots of

benefits +hich ensure that you #et Euaranteed Annual %ayout alon# +ith insurance

protection +hich +ill help you to reach you #oals +ith full confidence. Incoesurance %lan

is )ery fle$ible and allo+s you to custoise your %lan as per your indi)idual and faily:s

future reuireents. !oreo)er it also allo+s you to choose %reiu %ayent %eriod*

%ayout %eriod* %ayout 5ptions and ore.


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'ONDS/RANCE:

/he IDBI Federal Bondsurance Ad)anta#e %lan is a sin#le preiu plan +here you need

to a"e just a one3tie in)estent. 6ou can choose a !aturity %eriod of * J* ?* or ;?

years. At the end of the chosen period* you +ill recei)e a #uaranteed aturity aount. In

case of death of the insured person before the !aturity Date* a #uaranteed Death Benefit

+ill be paid.

TER&S/RANCE:

IDBI Federal /ersurance %rotection %lan ,/ersurance- coes +ith three co)er options

+hich you can select on the basis your reuireent. /ersurance is desi#ned +ith a host of

benefits & options aied at satisfyin# your e)ery need. It not only allo+s you to custoise

your plan as per your indi)idual and faily:s needs* it also coes +ith a host of benefits


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li"e con)enient insurance co)er options* fle$ible preiu payent ters* choice of policy

ter and lots ore fle$ible options.

1EALT1S/RANCE:

%resentin# the IDBI Federal Healthsurance Hospitalisation and 'ur#ical %lan. If you:rea#ed G years to years and currently in #ood health* this ne+ insurance plan is desi#ned

to help you ana#e the e$tra financial burden that coes +ith hospitalisation* by pro)idin#

a +ide ran#e of attracti)e benefits.


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RETIRES/RANCE:

A retireent plan desi#ned to accuulate oney to aid a cofortable retireent. /he plan

pro)ides a #uaranteed return on your in)estent and #ro+s steadily o)er the years to

ensure that you ha)e a corpus on your retireent date* #uaranteed.

-RO/* &ICROS/RANCE:

IDBI Federal Eroup !icrosurance %lan pro)ides affordable life insurance co)er to #roups.

/his plan is e$treely useful to !icro Finance Institutions* 'elf Help Eroups and 0E5s to

insure the li)es of their #roup ebers and thus pro)ide security to the #roup ebers:

failies. /he plan can also be used for pro)idin# loan protection to the #roup ebers:

failies.


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1O&ES/RANCE:

IDBI Federal Hoesurance %lan is a ort#a#e reducin# ter assurance plan !2/A*

+hich offers protection to your hoe fro your hoe loan. /he %lan pro)ides a co)ereual to the outstandin# balance of your hoe loan a#ainst any unfortunate e)ents that ay

occur to you. /his plan #i)es you the option of a 'in#le %reiu.

LOANS/RANCE:

Loansurance is a cost3effecti)e +ay to ensure that the outstandin# debt is settled in the

unfortunate e)ent of death of the insured eber. /his ter assurance plan pro)ides co)er

to a person directly liable for loan repayent ,and the partners* in case of a partnership-* as

per the benefit schedule


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C1ILDS/RANCE:

@hether your child +ants to be a doctor* an en#ineer* an !BA* a sportsan* a perforin#

artist* or dreas of bein# an entrepreneur* the IDBI Federal Childsurance Drea builderInsurance %lan +ill "eep you future3ready a#ainst both* chan#in# dreas and life:s t+ists.

It allo+s you to create build and ana#e +ealth by pro)idin# se)eral choices and #reat

fle$ibility so that your plan eets your specific needs. Ho+e)er* +hat a"es Childsurance

a ust3ha)e for any parent +ho is loo"in# to a"e their child:s future shoc"3proof is its

po+erful insurance benefits. Childsurance allo+s you to protect your child plan +ith triple

insurance benefits so that your +ealth3buildin# efforts reain unaffected by unforeseen

e)ents and your child:s future #oals can be achie)ed +ithout any hindrance.

Despite all these tailored products there is still scope for ipro)eent in this field. /he

Eroup Insurance schee is reuired to be prooted* the Crop Insurance is reuired to be

e$panded and the ne+ schees and policies for the )illa#ers or the rural population are

to be included. . /he introduction of 2ural Career A#ents 'chee has been foundinstruental in inducin# the rural prospects but the process is at infant sta#e and reuires

ore professional e$cellence. 'o there is lot of potential in insurance sector +hich is

+aitin# to be uncor"ed hence re)ealin# to the econoy the benefits of insurance industry.

/he policya"ers are reuired to acti)ate the efforts. It +ould be prudent that the LIC is

allo+ed to pursue a policy of direct in)estent for rural de)elopent. In)estent in

Eo)ernent securities should be stopped and the in)estent should be channeli4ed


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in pri)ate sector for a$ii4in# profits. In short* the forulation of product3i$ should be

in the face of inno)ati)e product strate#y. @hile initiatin# the inno)ati)e process it

is necessary to ta"e into consideration the strate#ies adopted by pri)ate and

forei#n insurance copanies.

*RICIN-:

In the insurance business the pricin# decisions are concerned +ith1

i- /he preiu char#ed a#ainst the policies

ii- Interest char#ed for defaultin# the payent of preiu and credit facility* and

iii- Coission char#ed for under+ritin# and consultancy acti)ities.


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@ith a )ie+ of influencin# the tar#et ar"et or prospects the forulation of pricin#

strate#y becoes si#nificant. In a de)elopin# country li"e India +here the disposable

incoe in the hands of prospects is lo+* the pricin# decision also #o)erns the

transforation of potential policyholders into actual policyholders. /he strate#ies ay be

hi#h or lo+ pricin# "eepin# in )ie+ the le)el or standard of custoers or the

policyholders. /he pricin# in insurance is in the for of preiu rates.

/he three ain factors used for deterinin# the preiu rates under a life insurance plan

are ortality* e$pense and interest. /he preiu rates are re)ised if there are any

si#nificant chan#es in any of these factors.

!ortality ,deaths in a particular area-1 @hen decidin# upon the pricin# strate#ythe a)era#e rate of ortality is one of the ain considerations. In a country li"e

'outh Africa the threat to life is )ery iportant as it is played by host of diseases.

7$penses1 /he cost of processin#* coission to a#ents* reinsurance copanies

as +ell as re#istration are all incorporated into the cost of instalents and preiu

su and fors the inte#ral part of the pricin# strate#y.

Interest1 /he rate of interest is one of the ajor factors +hich deterine people:s

+illin#ness to in)est in insurance. %eople +ould not be +illin# to put their funds to

in)est in insurance business if the interest rates pro)ided by the ban"s or otherfinancial instruents are uch #reater than the percei)ed returns fro the insurance

preius.


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*LACE:

/his coponent of the ar"etin# i$ is related to t+o iportant facets

i- !ana#in# the insurance personnel* and

ii- Locatin# a branch.

/he ana#eent of a#ents and insurance personnel is found si#nificant +ith the )ie+point

of aintainin# the nors for offerin# the ser)ices. /his is also to process the ser)ices to the

end user in such a +ay that a #ap bet+een the ser)ices3 proised and ser)ices offered is

brid#ed o)er. In a ajority of the ser)ice #eneratin# or#ani4ations* such a #ap is found

e$istent +hich has been instruental in a"in# +orse the ia#e proble. /he

transforation of potential policyholders to the actual policyholders is a difficult tas" that

depends upon the professional e$cellence of the personnel.

/he a#ents and the rural career a#ents actin# as a lin"* lac" professionalis. /he front3line

staff and the branch ana#ers also are found not assi#nin# due +ei#ht a#e to the

de#eneration process. /he insurance personnel if not ana#ed properly +ould a"e all

efforts insensiti)e. 7)en if the policy a"ers a"e pro)ision for the uality up #radation*

the proised ser)ices hardly reach to the end users.

It is also essential that they ha)e rural orientation and are +ell a+are of the lifestyles of the

prospects or users. /hey are reuired to be #i)en adeuate incenti)es to sho+ their

e$cellence. @hile recruitin# a#ents* the branch ana#ers need to prefer local persons and

pro)ide the trainin# and conduct seinars. In addition to the a#ents* the front3line staff

also needs an intensi)e trainin# pro#raed to focus ainly on beha)ioral


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9nderstandin# the custoer better allo+s in desi#nin# appropriate products. Bein# a

ser)ice industry +hich in)ol)es a hi#h le)el of people interaction* it is )ery iportant to

use this resource efficiently in order to satisfy custoers. /rainin#* de)elopent and stron#

relationships +ith interediaries are the "ey areas to be "ept under consideration. /rainin#

the eployees* use of I/ for efficiency* both at the staff and a#ent le)el* is one of the

iportant areas to loo" into. IDBI Federal has created )arious financial products +hich

ha)e been tailored accordin# to the needs of the custoers. /hey ha)e o)er thousands of

sales personnel +ho are trained efficiently to brid#e in the #ap bet+een the custoers and

the copany.

*ROCESS:/he process should be custoer friendly in insurance industry. /he speed and accuracy of

payent is of #reat iportance. /he processin# ethod should be easy and con)enient to

the custoers. Instalent schees should be strealined to cater to the e)er #ro+.

%rootion


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/he insurance ser)ices depend on effecti)e prootional easures. In a country li"e India*

the rate of illiteracy is )ery hi#h and the rural econoy has doinance in the national

econoy. It is essential to ha)e both personal and ipersonal prootion strate#ies.

In prootin# insurance business* the a#ents and the rural career a#ents play an iportant

role. Due attention should be #i)en in selectin# the prootional tools for a#ents and rural

career a#ents and e)en for the branch ana#ers and front line staff. /hey also ha)e tobe #i)en proper trainin# in order to create ipulse buyin#. Ad)ertisin# and %ublicity*

or#ani4ation of conferences and seinars* incenti)e to policyholders are ipersonal

counication. Arran#in# Kirtans* e$hibitions* participation in fairs and festi)als* rural

+all paintin#s and publicity dri)e throu#h the obile publicity )an units +ould be effecti)e

in creatin# the ipulse buyin# and the rural prospects +ould be easily transfored into

actual policyholders.

ID'I (eeral "a! al!o aopte variou! promotional !trategie! li+e:

Coercial Ads

%rint Ads

7)ents

%ersonnel sellin#

@ord of outh

)iral ar"etin#


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/hey ha)e brou#ht out any interestin# and huorous ads of their products such as

@ealthsurance* Incoesurance* 2etiresurance etc +hich has #ot )ery #ood response fro

custoers. /hey ha)e also conducted e)ents +ith an ai to create interest around financial

plannin# +ith Life Insurance at branches +hich +as critical to #ettin# prospects interested

in IDBI Federal products.

Buildin# an en#a#eent process around the solution bein# offered #i)es an additional

boost to this cause. 'pellin# Bee +as a specially created spellin# contest created to connect

+ith children. /he philosophy of this odule hin#ed around a"in# learnin# fun. /he

e)ent +as tied to coincide +ith Children:s day in 0o)eber ;??. /he spellin#s to be

copleted re)ol)ed around )isual and )erbal cues to +ords related to sa)in#* oney and

finance and aied at teachin# children the )alue of oney early in life.

/he en#a#eent started +ith the spellin# contest for "ids and #a)e their I2!s a natural

openin# for a discussion +ith parents about financial plannin# for their children:s future

needs li"e education. /his is a sort of channel ar"etin# +hich IDBI Federal had adopted

to create a+areness as +ell as to educate the future #eneration about the copany and the

iportance of sa)in#.

Also IDBI Federal in)ol)ed thesel)es in de)elopin# their business by joinin# hands +ith

'A!HI/A* a counity de)elopent or#ani4ation based out of Bhopal +hich +or"s

to+ards brin#in# financial literacy to the underpri)ile#ed population in !adhya %radesh.

/hey belie)e that such financial literacy aon# the under ban"ed population +ill help brin#

a holistic chan#e in the +ay people percei)e and understand financial products and their

utility at )arious sta#es in their life.


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'ran a)arene!! o$ ID'I (eeral Li$e In!urance Co

Lt2

A)arene!! *ercentage o$ 3ariou! ID'I (eeral prouct!:#


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*eople !een Averti!ement O$ ID'I (eeral Li$e In!urance Company

$rom:#


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Current &ar+et S"are o$ LI(E INS/RANCE CO&*ANIES:#


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Recommenation!

%rint & 7lectronic !edia Ad)ertiseent should be used at a hi#h le)el especially /8

ads should be used as its reach to the interior of the country is stron# and also the

"ind of influence it sho+ case on people is uch hi#her copare to other edias.

After the initial prootional capai#n the relati)e ad)anta#e of IDBI F7D72AL

LIF7 I0'92A0C7 Co Ltd. o)er its copetitor should be hi#hli#hted.

Hoardin#s at prie areasshould be used.

/he ost iportant of all is to create a+areness about copany:s product as +ell as

a brand in the ar"et is )ery necessary.

/he copany can use celebrity to create a+areness about the brand and also can

collaborate +ith soe production houses of fils and tele)ision serials+hich can

reach people in ass.


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CONCL/SION

@ith re#ard to insurance copanies* consuers respond at different rates* dependin# on

the consuers characteristics. Hence Insurance copanies should try to brin# their

ne+ product to the attention of potential early adopters.

a- Due to the intense copetition in the life insurance ar"et* the life insurance 2eturn onin)estent* copany reputation and preiu outflo+ are ost preferred attributes

that are e$pected by the respondents. Hence #reater focus should be #i)en to these

attributes copanies ha)e to adopt better strate#ies to attract ore custoers.

b- Keepin# the cost* uality and return on in)estent in tact is necessary in order to tac"le

the copetition.

c- Life insurance products are ta"en ainly by iddle and hi#her incoe #roup. Hence

they should be re#arded as ai tar#eted incoe #roups. Life insurance products+hich are suitable for lo+er incoe #roup should also be released so that the ar"et

share increases.

d-- return on in)estent* copany reputation and preiu outflo+ are ost preferred

attributes that are e$pected by the respondents. Hence #reater focus should be #i)en

to these attributes.

e- %ri)ate life insurance copanies should adopt effecti)e prootional strate#ies to

increase the a+areness le)el aon# the consuers.

f- Life insurance copanies should as" for their consuer feedbac" to "no+ +hether the

consuers are really satisfied or dissatisfied +ith the ser)ice and product of the

copanies. If they are dissatisfied* then the reasons for dissatisfaction should be

found out and should be corrected in future.

#- /he LIC brand nae has earned a lot of #ood+ill and enjoys hi#h brand euity. As

there is intense copetition in life insurance ar"et* LIC should +or" hard to

aintain its top position and offer better ser)ice and product.


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References!

Websites

o +++.idbifederal.co

o +++.irda.#o).in
http://www.idbifederal.com/http://www.irda.gov.in/http://www.idbifederal.com/http://www.irda.gov.in/

Documents

Marketing Strategies of IDBI Federal