“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.

DECLARATION

I hereby declare that the project titled “Marketing Mix and Promotional Strategies of IDBI Federal Life Insurance Co Ltd.” Is an original project done by me and no part of this project is

taken from any source or material published and not submitted to any other colleges and university later.

.

ACKNOWLEDGEMENT

Firstly, I would like to express my sincere gratitude to <> (<>, IDBI Federal Life Insurance Co Ltd.), my Project guide, for his attentive guidance, insightful comments and advice for carrying out this Project. He always gives me continuous encouragement and support, and shares with me his knowledge and experience. I really appreciate the effort he put in the development of me and my work and his help to improve the quality of my Project.

I would like to express my eternal gratitude and thanks to my parents for their love and support throughout my life. Their support and absolute faith in my abilities have been a huge motivation. Perhaps, mere thanks will not suffice for what they have done for me.

Lastly, I would like to acknowledge each and everyone who contributed for my work either by directly or indirectly.

Executive Summary

Name:.

Roll no.: .

Sec- .

Organizational details:

Name of the organization: IDBI Federal Life Insurance Co Ltd. Address of the Organization: ,

,

Telephone Numbers:

Main activity of the organization: Life Insurance.

Company guide:

Name:

Designation:

Telephone numbers: E-mail:

Title of the project: Marketing Mix and Promotional Strategies focusing on the role of

advertising and consumer behavior towards the promotional Strategies of IDBI Federal Life Insurance Co Ltd.

Area of project: Marketing.

Objective of the project: To analyze Marketing Mix and Promotional Strategies of IDBI Federal Life Insurance Co Ltd.

Description of the project in brief: MY main aim is to understand the Marketing Strategy and Promotional Strategies adopted by IDBI Federal Life Insurance Co Ltd.

Methodology: Field work based on Primary and secondary data.

Recommendations to IDBI Federal Life Insurance Co Ltd:

• Print & Electronic Media Advertisement should be used at a high level especially TV ads should be used as its reach to the interior of the country is strong and also the kind of influence it show case on people is much higher compare to other medias.

• After the initial promotional campaign the relative advantage of IDBI FORTIS LIFE INSURANCE Co. Ltd over its competitor should be highlighted.

• Hoardings at prime areas should be used.• The most important of all is to create awareness about company’s product as well as a

brand in the market is very necessary.• The company can use celebrity to create awareness about the brand and also can

collaborate with some production houses of films and television serials which can reach people in mass.

C O N T E N T

Title

1. Brief about Insurance Industry.

2. Challenges facing Insurance Industry.

3. Present scenario of Insurance industry.

4. Company Profile.

5. Competitors.

6. Marketing Mix in IDBI federal life insurance company.

7. Brief about IDBI federal products.

8. IDBI federal promotional strategies.

9. Brand awareness of IDBI federal life insurance co ltd.

10. Recommendations.

11. Conclusion.

12. Reference.

INTRODUCTION

Wherever there is uncertainty there is risk. We do not have any control over uncertainties which involves financial losses. The risks may be certain events like death, pension, retirement or uncertain events like theft, fire, accident, etc.

Insurance is a financial service for collecting the savings of the public and providing them with risk coverage. The main function of Insurance is to provide protection against the possible chances of generating losses. It eliminates worries and miseries of losses by destruction of property and death. It also provides capital to the society as the funds accumulated are invested in productive heads.

Types of Insurance:

1. Life Insurance - Insurance guaranteeing a specific sum of money to a designated beneficiary upon the death of the insured, or to the insured if he or she lives beyond a certain age.

2. Health Insurance - Insurance against expenses incurred through illness of the insured.

3. Liability Insurance - This insures property such as automobiles, property and professional/business mishaps.

Challenges facing Insurance Industry

Threat of New Entrants: The insurance industry has been budding with new entrants every other day. Therefore the companies should carve out niche areas such that the threat of new entrants might not be a hindrance. There is also a chance that the big players might squeeze the small new entrants.

Power of Suppliers: Those who are supplying the capital are not that big a threat. For instance, if someone as a very talented insurance underwriter is presently working for a small insurance company, there exists a chance that any big player willing to enter the insurance industry might entice that person off.

Power of Buyers: No individual is a big threat to the insurance industry and big corporate houses have a lot more negotiating capability with the insurance companies. Big corporate clients like airlines and pharmaceutical companies pay millions of dollars every year in premiums.

Availability of Substitutes: There exist a lot of substitutes in the insurance industry. Majorly, the large insurance companies provide similar kinds of services – be it auto, home, commercial, health or life insurance.

With the size of world's population reaching gigantic proportions, global insurance is also gaining in stature. Private as well government insurance agencies around the world are running for insuring lives of millions (and in the process insuring their own businesses more).

In fact, the insurance industry is a key component of the world economy today owing to its premiums, its investment and, above all, the social and economic role it plays in covering personal and business risks.

Financial viability of insurance companies

However, although the insurance industry is a flourishing in world economy today, one need to keep in mind that financial viability/stability of the insurance company is a major consideration at the time of purchasing insurance contract. The viability factor is important because many a times, an insurance premium paid currently provides coverage for losses in distant future and there are instances where a number of insurance companies have gone insolvent, thus leaving their policyholders with little helpful or no coverage. Therefore, even if the global industry is strengthening more and more, the weak links are also co-existent and blind faith can lead to a severe downfall. There are also independent rating agencies for insurance companies which could be helpful in providing sound information on financial viability of various insurance companies.

Marketing in Insurance

Insurance comes under the service sector and while marketing this service, due care is to be taken in quality product and customer satisfaction. While marketing the services, it is also pertinent that they think about the innovative promotional measures. It is not sufficient that you perform well but it is also important that you let others know about the quality of your positive contributions.

The creativity in the promotional measures is the need of the hour. The advertisement, public relations, word of mouth communication needs due care and personal selling requires intensive care.

There are insurance marketing strategies that can take any insurance agency from mediocre to success when utilized correctly. Hence it is necessary that an insurance company formulize their marketing strategies with lot of thought and diligence to capture the untapped potential in the insurance industry. Through this project we aim to understand the strategies adopted by IDBI Federal and to find out the effectiveness of these promotional strategies through a study on consumer behavior.

Present scenario of Insurance industry

The brief outlook about the regulatory changes done by the Indian Government over the years

is given below:-

The effect of insurance reforms has been positive on the insurance industry. There has been

positive growth in all the segments, with investments flowing in the right direction. Reforms

have helped to achieve rapid growth in critical areas and sustain them over a period of time

through channelized strategies.

Post reforms, the number of players have increased from 4 to 22 players presently registered

under IRDA (INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA).

Company Profile

IDBI Federal Life Insurance Co Ltd is a joint venture of IDBI Bank - India’s premier development and commercial bank, Federal Bank - one of India’s leading private sector banks and Ageas Insurance International - a multinational insurance giant, based out of Europe.In this venture, IDBI owns 48% equity while Federal Bank and Ageas own 26% equity each. IDBI Federal launched its first set of products across India in March 2008, after receiving the requisite approvals from the Insurance Regulatory Development Authority (IRDA).In just five months of inception, IDBI Federal became one of the fastest growing new insurance companies to garner Rs 100 crores in premiums. As on March 31st, 2009, the Company had collected more than 328 crores in premiums, through over 87,000 policies and over Rs 2825 crores in Sum Assured. The Company offers its services through a vast nationwide network across the branches of IDBI Bank and Federal Bank, in addition to a sizeable network of advisors and partners.

IDBI Bank Ltd continues to be, since its inception, India’s premier industrial development bank. Created in 1956 to support India’s industrial backbone, IDBI Bank has since evolved into a powerhouse of industrial and retail finance. Today, it is amongst India’s foremost commercial banks, with a wide range of innovative products and services, serving retail and corporate customers in all corners of the country from 689 Branches 1140 ATMs.

The Bank offers its customers an extensive range of diversified services including project financing, term lending, working capital facilities, lease finance, venture capital, loan syndication, corporate advisory services and legal & technical advisory services to its corporate clients as well as mortgages and personal loans to its retail clients.

As part of its development activities, IDBI Bank has been instrumental in sponsoring the development of key institutions involved in India’s financial sector – such as the Securities and Exchange Board of India (SEBI), National Stock Exchange of India Limited (NSE) and National Securities Depository Ltd.

Federal Bank is a scheduled commercial bank founded in 1931.Federal Bank is one of India’s leading private sector banks, with a dominant presence in the state of Kerala. It has a strong network of over 612 Branches, 617 ATMs spread across India. The Bank provides over four million retail customers with a wide variety of financial products. Federal Bank is one of the first large Indian banks to have an entirely automated and interconnected branch network.

The Bank has a wide range of services like Internet Banking, Mobile Banking, Tele Banking, Any Where Banking, debit cards, online bill payment and call centre facilities to offer round-the-clock banking convenience to its customers.

The Bank has been a pioneer in providing innovative technological solutions to its customers, having won several awards like the award for Best Use of IT in Retail Banking by IBA, TFCI and Infosys.

Ageas ranks among Europe’s top 20 financial institutions and is a reputed international brand in financial services. European financial services provider engaged in banking and insurance with a presence in over 50 countries.Ageas has subsidiaries in France, Germany and Hong Kong. Ageas has a track record in developing partnerships with strong financial institutions and key distributors in different markets around the world and successfully operates Italy, Portugal, China, Malaysia, India and Thailand. Ageas employs more than 13,000 people and has annual inflows of almost EUR 18 billion.

Milestones

March 2008 IDBI Federal starts operations with two products – Homesurance & Wealthsurance.

August 2008 IDBI Federal becomes one of the fastest growing new life insurers to collect premiums worth Rs 100 crores.

October 2008 IDBI Federal launches Bondsurance

January 2009 IDBI Wealthsurance Cup 2009 – India v/s Sri Lanka held in Sri Lanka.

March 2009 collected premium of over 328 corers and 87,000 policies and a Sum assured of Rs 2825 crores since inception

November 2009 IDBI Federal launches Incomesurance

Brand gets bigger

The Mission

We aim to be recognized as a leading provider of wealth management, protection and retirement propositions that satisfy the needs of and add value to our key customer segments.

We shall continually strive to enhance the customer experience, in relationship management and service delivery, and interact with our customers in the most convenient and cost effective manner.

We shall be transparent in our dealings and act with integrity.

We shall invest in and build quality human capital in order to achieve our mission.

VisionTo be a customer centric channel, while setting benchmarks in the life insurance industry, in terms of presence, productivity and profitability.

Competitors of IDBI Federal Life Insurance co. Ltd.

1. Bajaj Allianz Life Insurance Company Limited 20. AEGON Religare Life Insurance Company Limited

2. Birla Sun Life Insurance Co. Ltd 21. DLF Pramerica Life Insurance Co. Ltd.

3. HDFC Standard Life Insurance Co. Ltd 22. Star Union Dai-ichi Life Insurance Comp. Ltd.

4. ICICI Prudential Life Insurance Co. Ltd.

5. ING Vysya Life Insurance Company Ltd.

6. Life Insurance Corporation of India

7. Max New York Life Insurance Co. Ltd

8. Met Life India Insurance Company Ltd.

9. Kotak Mahindra Old Mutual Life Insurance Limited

10. SBI Life Insurance Co. Ltd

11. Tata AIG Life Insurance Company Limited

12. Reliance Life Insurance Company Limited.

13. Aviva Life Insurance Co. India Pvt. Ltd.

14. Sahara India Life Insurance Co, Ltd.

15. Shriram Life Insurance Co, Ltd.

16. Bharti AXA Life Insurance Company Ltd.

17. Future Generali Life Insurance Company Ltd.

19. Canara HSBC Oriental Bank of Commerce Life Insurance Co. Ltd

.

MARKETING MIX IN IDBI Federal Life Insurance Co Ltd

The term insurance marketing refers to the marketing of Insurance services with the aim to create customer and generate profit through customer satisfaction. The Insurance Marketing focuses on the formulation of an ideal mix for Insurance business so that the Insurance organization survives and thrives in the right perspective.

The marketing mix is the combination of marketing activities that an organization 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 marketing mix includes sub-mixes of the 7 P’s of marketing i.e. the product, its price, place, promotion, people, process & physical attraction. The above mentioned 7 P’s can be used for marketing of Insurance products, in the following manner:

PRODUCT:

A product means what we produce. If we produce goods, it means tangible product and when we produce or generate services, it means intangible service product. A product is both what a seller has to sell and a buyer has to buy. Thus, an Insurance company sells services and therefore services are their product. When a person or an organization buys an Insurance policy from the insurance company, he not only buys a policy, but along with it the assistance and advice of the agent, the prestige of the insurance company and the facilities of claims and compensation. It is natural that the users expect a reasonable return for their investment and the insurance companies want to maximize their profitability. Hence, while deciding the product portfolio or the product-mix, the services or the schemes should be motivational.  IDBI Federal provides many products which cater to the needs of the Indian customers. IDBI Federal products:-

 WEALTHSURANCE

 INCOMESURANCE

 BONDSURANCE

 TERMSURANCE

 HEALTHSURANCE

 RETIRESURANCE

 GROUP MICROSURANCE

 HOMESURANCE

 LOANSURANCE

CHILDSURANCE

WEALTHSURANCE:

The Wealthsurance Milestone Plan is a unique Insured Wealth Plan designed to help cross different milestones in one’s life. It enables customers to save and build wealth under the protection of Insurance to meet their financial goals. The Wealthsurance Milestone Plan offers a wide range of Investment options, Insurance options and unmatched flexibility that allows customers to customize a plan suited to their needs. Customers can plan for their milestones like completion of school education for their child, a marriage, acquisition of a new house and so on. This Plan comes with a wide range of 13 investment options and 7 insurance benefits - all packaged with a low charge structure and unmatched flexibility.

INCOMESURANCE:

IDBI Federal Incomesurance Endowment and Money Back Plan is loaded with lots of benefits which ensure that you get Guaranteed Annual Payout along with insurance protection which will help you to reach you goals with full confidence. Incomesurance Plan is very flexible and allows you to customise your Plan as per your individual and family’s future requirements. Moreover it also allows you to choose Premium Payment Period, Payout Period, Payout Options and more.

BONDSURANCE:

The IDBI Federal Bondsurance Advantage Plan is a single premium plan where you need to make just a one-time investment. You can choose a Maturity Period of 5, 7, 10, 15 or 20 years. At the end of the chosen period, you will receive a guaranteed maturity amount. In case of death of the insured person before the Maturity Date, a guaranteed Death Benefit will be paid.

TERMSURANCE:

IDBI Federal Termsurance Protection Plan (Termsurance) comes with three cover options which you can select on the basis your requirement. Termsurance is designed with a host of benefits & options aimed at satisfying your every need. It not only allows you to customise your plan as per your individual and family’s needs, it also comes with a host of benefits like convenient insurance cover options, flexible premium payment terms, choice of policy term and lots more flexible options.

HEALTHSURANCE:

Presenting the IDBI Federal Healthsurance Hospitalisation and Surgical Plan. If you’re aged 18 years to 55 years and currently in good health, this new insurance plan is designed to help you manage the extra financial burden that comes with hospitalisation, by providing a wide range of attractive benefits.

RETIRESURANCE:

A retirement plan designed to accumulate money to aid a comfortable retirement. The plan provides a guaranteed return on your investment and grows steadily over the years to ensure that you have a corpus on your retirement date, guaranteed.

GROUP MICROSURANCE:

IDBI Federal Group Microsurance Plan provides affordable life insurance cover to groups. This plan is extremely useful to Micro Finance Institutions, Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group members’ families. The plan can also be used for providing loan protection to the group members’ families.

HOMESURANCE:

IDBI Federal Homesurance Plan is a mortgage reducing term assurance plan – MRTA, which offers protection to your home from your home loan. The Plan provides a cover equal to the outstanding balance of your home loan against any unfortunate events that may occur to you. This plan gives you the option of a Single Premium.

LOANSURANCE:

Loansurance is a cost-effective way to ensure that the outstanding debt is settled in the unfortunate event of death of the insured member. This term assurance plan provides cover to a person directly liable for loan repayment (and the partners, in case of a partnership), as per the benefit schedule

CHILDSURANCE:

Whether your child wants to be a doctor, an engineer, an MBA, a sportsman, a performing artist, or dreams of being an entrepreneur, the IDBI Federal Childsurance Dream builder Insurance Plan will keep you future-ready against both, changing dreams and life’s twists. It allows you to create build and manage wealth by providing several choices and great flexibility so that your plan meets your specific needs. However, what makes Childsurance a must-have for any parent who is looking to make their child’s future shock-proof is its powerful insurance benefits. Childsurance allows you to protect your child plan with triple insurance benefits so that your wealth-building efforts remain unaffected by unforeseen events and your child’s future goals can be achieved without any hindrance.

Despite all these tailored products there is still scope for improvement in this field. The Group Insurance scheme is required to be promoted, the Crop Insurance is required to be expanded and the new schemes and policies for the villagers or the rural population are to be included. . The introduction of Rural Career Agents Scheme has been found instrumental in inducing the rural prospects but the process is at infant stage and requires more professional excellence. So there is lot of potential in insurance sector which is waiting to be uncorked hence revealing to the economy the benefits of insurance industry.  The policymakers are required to activate the efforts. It would be prudent that the LIC is allowed to pursue a policy of direct  investment for rural development. Investment in Government securities should be stopped and the investment should be channelized in private sector for maximizing profits. In short, the formulation of product-mix should be in the face of innovative product strategy. While initiating the innovative process it is necessary to take into consideration the strategies adopted by private and foreign insurance companies. 

PRICING:

In the insurance business the pricing decisions are concerned with:

i) The premium charged against the policies

ii) Interest charged for defaulting the payment of premium and credit facility, and

iii) Commission charged for underwriting and consultancy activities.

 With a view of influencing the target market or prospects the formulation of pricing strategy becomes significant. In a developing country like India where the disposable income in the hands of prospects is low, the pricing decision also governs the transformation of potential policyholders into actual policyholders. The strategies may be high or low pricing keeping in view the level or standard of customers or the policyholders. The pricing in insurance is in the form of premium rates.

The three main factors used for determining the premium rates under a life insurance plan are mortality, expense and interest. The premium rates are revised if there are any significant changes in any of these factors.

Mortality (deaths in a particular area): When deciding upon the pricing strategy the average rate of mortality is one of the main considerations. In a country like South Africa the threat to life is very important as it is played by host of diseases.

 Expenses: The cost of processing, commission to agents, reinsurance companies as well as registration are all incorporated into the cost of instalments and premium sum and forms the integral part of the pricing strategy. 

Interest: The rate of interest is one of the major factors which determine people’s willingness to invest in insurance. People would not be willing to put their funds to invest in insurance business if the interest rates provided by the banks or other financial instruments are much greater than the perceived returns from the insurance premiums. 

PLACE:

This component of the marketing mix is related to two important facets

i)                    Managing the insurance personnel, and

ii)                  Locating a branch.

The management of agents and insurance personnel is found significant with the viewpoint of maintaining the norms for offering the services. This is also to process the services to the end user in such a way that a gap between the services- promised and services offered is bridged over. In a majority of the service generating organizations, such a gap is found existent which has been instrumental in making worse the image problem. The transformation of potential policyholders to the actual policyholders is a difficult task that depends upon the professional excellence of the personnel.

The agents and the rural career agents acting as a link, lack professionalism. The front-line staff and the branch managers also are found not assigning due weight age to the degeneration process. The insurance personnel if not managed properly would make all efforts insensitive. Even if the policy makers make provision for the quality up gradation, the promised services hardly reach to the end users.

 It is also essential that they have rural orientation and are well aware of the lifestyles of  the prospects or users. They are required to be given adequate incentives to show their excellence. While recruiting agents, the branch managers need to prefer local persons and provide them training and conduct seminars. In addition to the agents, the front-line staff also needs an intensive training programmed to focus mainly on behavioral management. Another important dimension to the Place Mix is related to the location of the insurance branches.

While locating branches, the branch manager needs to consider a number of factors, such as smooth accessibility, availability of infrastructural facilities and the management of branch offices and premises. In addition it is also significant to provide safety measures and also factors like office furnishing, civic amenities and facilities, parking facilities and interior office decoration should be given proper attention. 

Thus the place management of insurance branch offices needs a new vision, distinct approach and an innovative style. This is essential to make the work place conducive, attractive and proactive for the generation of efficiency among employees. The branch managers need professional excellence to make place decisions productive. IDBI Federal has around thousands and thousands of insurance agents all over India to manage their regional customers effectively. Also, IDBI Federal has over 796 branches all over India which help in increasing their customer base.

PEOPLE:

Understanding the customer better allows in designing appropriate products. Being a service industry which involves a high level of people interaction, it is very important to use this resource efficiently in order to satisfy customers. Training, development and strong relationships with intermediaries are the key areas to be kept under consideration. Training the employees, use of IT for efficiency, both at the staff and agent level, is one of the important areas to look into. IDBI Federal has created various financial products which have been tailored according to the needs of the customers. They have over thousands of sales personnel who are trained efficiently to bridge in the gap between the customers and the company.

PROCESS:

The process should be customer friendly in insurance industry. The speed and accuracy of payment is of great importance. The processing method should be easy and convenient to the customers. Instalment schemes should be streamlined to cater to the ever grow.

PromotionThe insurance services depend on effective promotional measures. In a country like India, the rate of illiteracy is very high and the rural economy has dominance in the national economy. It is essential to have both personal and impersonal promotion strategies.

In promoting insurance business, the agents and the rural career agents play an important role. Due attention should be given in selecting the promotional tools for agents and rural career agents and even for the branch managers and front line staff. They also have to be given proper training in order to create impulse buying. Advertising and Publicity, organization of conferences and seminars, incentive to policyholders are impersonal communication. Arranging Kirtans, exhibitions, participation in fairs and festivals, rural wall paintings and publicity drive through the mobile publicity van units would be effective in creating the impulse buying and the rural prospects would be easily transformed into actual policyholders.

 

IDBI Federal has also adopted various promotional strategies like:

 Commercial Ads

 Print Ads

 Events

 Personnel selling

 Word of mouth

viral marketing

They have brought out many interesting and humorous ads of their products such as Wealthsurance, Incomesurance, Retiresurance etc which has got very good response from customers. They have also conducted events with an aim to create interest around financial planning with Life Insurance at branches which was critical to getting prospects interested in IDBI Federal products. 

Building an engagement process around the solution being offered gives an additional boost to this cause. Spelling Bee was a specially created spelling contest created to connect with children. The philosophy of this module hinged around making learning fun. The event was timed to coincide with Children’s day in November 2010. The spellings to be completed revolved around visual and verbal cues to words related to saving, money and finance and aimed at teaching children the value of money early in life.

The engagement started with the spelling contest for kids and gave their IRMs a natural opening for a discussion with parents about financial planning for their children’s future needs like education. This is a sort of channel marketing which IDBI Federal had adopted to create awareness as well as to educate the future generation about the company and the importance of saving.

Also IDBI Federal involved themselves in developing their business by joining hands with SAMHITA, a community development organization based out of Bhopal which works towards bringing financial literacy to the underprivileged population in Madhya Pradesh. They believe that such financial literacy among the under banked population will help bring a holistic change in the way people perceive and understand financial products and their utility at various stages in their life.

This will ultimately help bring them closer to financial inclusion. They started this journey with SAMHITA in 2008 by providing low cost group coverage female members of SAMHITA under Group Microsurance. This way they have covered 86,721 lives for a sum assured of Rs. 66.7 crores since then. They also offer the protection of Termsurance Grameen Suraksha to the family members of these people.

IDBI Federal Termsurance Grameen Suraksha is especially designed to make life insurance affordable to rural customers with options of four convenient premium slabs of Rs 49.08, Rs 98.17, Rs 147.25 and Rs 196.33 (inclusive of taxes) with corresponding sums assured of Rs 5,000, Rs 10,000, Rs 15,000 and Rs 20,000.

In this way IDBI Federal has made intelligent moves to capture the rural market which has lot of potential and promise in the future. Promotional strategies are very important for any intangible product especially like life insurance and financial savings where people should be given complete education about such products because of which all insurance companies take due care while formulizing their promotional strategies.

Brand awareness of IDBI Federal Life Insurance Co Ltd.

Awareness Percentage of Various IDBI Federal products:-

People seen Advertisement Of IDBI Federal Life Insurance Company from:-

Current Market Share of LIFE INSURANCE COMPANIES:-

Recommendations

• Print & Electronic Media Advertisement should be used at a high level especially TV ads should be used as its reach to the interior of the country is strong and also the kind of influence it show case on people is much higher compare to other medias.

• After the initial promotional campaign the relative advantage of IDBI FEDERAL LIFE INSURANCE Co Ltd. over its competitor should be highlighted.

• Hoardings at prime areas should be used.

• The most important of all is to create awareness about company’s product as well as a brand in the market is very necessary.

• The company can use celebrity to create awareness about the brand and also can collaborate with some production houses of films and television serials which can reach people in mass.

CONCLUSION

With regard to insurance companies, consumers respond at different rates, depending on the consumers characteristics. Hence Insurance companies should try to bring their new product to the attention of potential early adopters.

a) Due to the intense competition in the life insurance market, the life insurance Return on investment, company reputation and premium outflow are most preferred attributes that are expected by the respondents. Hence greater focus should be given to these attributes companies have to adopt better strategies to attract more customers.

b) Keeping the cost, quality and return on investment in tact is necessary in order to tackle the competition.

c) Life insurance products are taken mainly by middle and higher income group. Hence they should be regarded as maim targeted income groups. Life insurance products which are suitable for lower income group should also be released so that the market share increases.

d)) return on investment, company reputation and premium outflow are most preferred attributes that are expected by the respondents. Hence greater focus should be given to these attributes.

e) Private life insurance companies should adopt effective promotional strategies to increase the awareness level among the consumers.

f) Life insurance companies should ask for their consumer feedback to know whether the consumers are really satisfied or dissatisfied with the service and product of the companies. If they are dissatisfied, then the reasons for dissatisfaction should be found out and should be corrected in future.

g) The LIC brand name has earned a lot of goodwill and enjoys high brand equity. As there is intense competition in life insurance market, LIC should work hard to maintain its top position and offer better service and product.

References:- Websites

o www.idbifederal.com

o www.irda.gov.in