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
 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
 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

 1912: The Indian Life Assurance Companies Act came into force for regulating the
life insurance business.

 1928: The Indian Insurance Companies Act was enacted for enabling the government
to collect statistical information on both life and non-life insurance businesses.

 1938: The earlier legislation consolidated the Insurance Act with the aim of
safeguarding the interests of the insuring public.

 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 in
Kolkata by the British.

Important milestones in the Indian general insurance business

 1907: The Indian Mercantile Insurance Ltd. was set up which was the first company
of its type to transact all general insurance business.
 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.
 1968: The Insurance Act improved for regulating investments and set minimal
solvency levels and the Tariff Advisory Committee was set up.
 1972: The General Insurance Business (Nationalization) Act, 1972 nationalized the
general 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.
 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 to
attract 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 "Indian
reinsurer" for underwriting only reinsurance business.

Life Insurance Companies in India

 Life Insurance Companies

 Aviva Life Insurance
 Bajaj Allianz Life Insurance
 Birla Sun-Life Insurance
 HDFC Standard Life Insurance
 ING Vysya Life Insurance
 Life Insurance Corporation
 Max New York Life Insurance
 MetLife Insurance
 Om Kotak Mahindra Life Insurance
 Reliance Life Insurance
 Sahara India Life Insurance
 SBI Life Insurance
 TATA AIG Life Insurance
 General Insurance Companies in India

 Agriculture Insurance
 Amsure Insurance
 ANZ Insurance
 Bajaj Allianz General Insurance
 Cholamandalam General Insurance
 Employee State Insurance
 Export Credit Guarantee Corporation
 ICICI Lombard General Insurance
 IFFCO-Tokio General Insurance
 National Insurance
 Oriental Insurance
 Peerless Smart Financial
 Royal Sundaram Alliance
 TATA AIG General Insurance

Top ten Indian Insurance companies

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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 Life
Insurance 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.

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 for
nationalization 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 1000.00
crores 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. LIC’s 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. LIC’s ECS and ATM premium payment facility is an addition to customer
convenience. Apart from on-line Kiosks and IVRS, Info Centres have been commissioned at
Mumbai, 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.

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.
 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.

Marketing strategies of LIC

In consonance with the changes taking place in the insurance market, the corporation has
undergone 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 presenting
facts and creating understanding of the organization’s 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 corporation’s advertisements reached nearly 25 crore people through over 50 campaigns.
There were 79 hours of TV advertising and 408 hours of Radio advertising. 

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 Corporation’s website www.licindia.com gives information about the corporation’s
products, services, subsidiaries and addresses of branches and about premium payment
through the internet. It also provides Press releases, News sections, Online policy status
Online 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.

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 company’s 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 company’s working results.The chairman’s statement is a
comprehensive guide to what the company is and where it strives to be. It comprises of the
corporation’s 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. The
corporation 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.
 

ICICI PRUDENTIAL

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank - one of
India's foremost financial services companies-and Prudential plc - a leading international
financial services group headquartered in the United Kingdom. Total capital infusion stands
at Rs. 47.80 billion, with ICICI Bank holding a stake of 74% and Prudential plc holding
26%.
 
We began our operations in December 2000 after receiving approval from Insurance
Regulatory Development Authority (IRDA). Today, our nation-wide reach includes 1,960
branches (inclusive of 1,096 micro-offices), over 237,000 advisors; and 6 bancassurance
partners.
 
For three years in a row, ICICI Prudential has been voted as India's Most Trusted Private
Life Insurer, by The Economic Times - AC Nielsen ORG Marg survey of 'Most Trusted
Brands'. As we grow our distribution, product range and customer base, we continue to
tirelessly uphold our commitment to deliver world-class financial solutions to customers all
over India.

The Company
 
ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier
financial powerhouse, and Prudential plc, a leading international financial services group
headquartered in the United Kingdom. ICICI Prudential was amongst the first private sector
insurance companies to begin operations in December 2000 after receiving approval from
Insurance Regulatory Development Authority (IRDA).
 
ICICI Prudential Life's capital stands at Rs. 4,780 crores (as of December 31, 2009) with
ICICI Bank and Prudential plc holding 74% and 26% stake respectively. For the period
April 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 since
inception. 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 life
insurance industry with a wide range of flexible products that meet the needs of the Indian
customer at every step in life.
 
Distribution

ICICI Prudential Life has one of the largest distribution networks amongst private life
insurers 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, Jalgaon
Peoples 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 and
the second largest bank in the country with consolidated total assets of about US$ 102
billion as of June 30, 2009. ICICI Bank’s subsidiaries include India’s leading private sector
insurance companies and among its largest securities brokerage firms, mutual funds and
private equity firms. ICICI Bank’s 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 to
more than 21 million customers, policyholder and unit holders and manages over  £249
billion 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 of
the 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 ten
markets including China, Hong Kong, India, Japan, Korea, Malaysia, Singapore, Taiwan,
Vietnam and United Arab Emirates.
 
 

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 India’s.
• 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 don’t aware of different distribution channel.

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 hawking
insurance, 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 customers
about 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.

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 one’s 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 consumer’s 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 Prudential’s 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 the
category and the company. Apart from this, company also entered into alliances with telecom
companies, as well as companies like BPCL and Dominos.

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 INDY’s Award for Excellence in Mass Communication in the category of Most
Creative Advertisement- Television.

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 impart
information, 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 INDY’s 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.)

Strategies Adopted By LIC

 LIC started intense , systematic & well focused public relation and publicity activities
both at the corporate and operational levels.
 LIC upped its ad spend to tackle competition.
  LIC has launched its SATELLITE SAMPARK offices.
 LIC has established state of art machinery.

Strategies adopted by ICICI PRUDENTIAL

 ICICI Prudential launched the ‘TruLife Club’ for its high-value policyholders as part
of its marketing strategy.
 Pragati Ki Anokhi Paathsaala or PKAP. PKAP aims to bring out the inherent
creative skills amongst children.
 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.

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.

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