International Journal of Research and Development - A Management Review (IJRDMR)

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A Study on Effective Marketing Strategies of Max Life Insurance with

Reference to Bilaspur District
1
Aasima Franklin, 2Prabhakar Pandey
1,2
School of studies in commerce, C.V. Raman University, Kargi road, Kota

against future risk, accidents and uncertainty. Insurance

Abstract— The present study focuses on effective
marketing strategies of max life insurance with reference of cannot check the happening of the risk, but can certainly
Bilaspur district’’ Here the investigator investigates the provide for the losses of risk[1]. Insurance cautions
marketing strategies of max life insurance and it was individuals and businessmen to adopt suitable device to
summarily proved which has discussed below. The study prevent unfortunate consequences of risk by observing
aims at analysis those marketing strategies which affect safety instructions; installation of automatic sparkler or
their sale. alarm systems, etc. Reduced rate of premiums stimulate
for more business and better protection to the insured.
Index Terms—Insurance, IRDA, Marketing strategies, Insurance relieves the businessmen from security
Risk. investments, by paying small amount of premium against
larger risks and uncertainty[1].
I. INTRODUCTION
Insurance serves as savings and investment, insurance is a
Insurance industry has gone through many changes. The compulsory way of savings and it restricts the unnecessary
liberalization of the insurance industry has never looked expenses by the insured's Insurance is an international
back and today stand as one of the most competitive and business. The country can earn foreign exchange by way
exploring industry in India. The entry of the private of issue of marine insurance policies and various other
players and the increased use of the new distribution are in ways[1]. Max New York Life Insurance Company Ltd.
the limelight today. The use of new distribution is a joint venture between New York Life, a Fortune 100
techniques and the IT tools has increased the scope of the company and Max India Limited, one of India's leading
industry in the longer run. Insurance is the business which multi-business corporations. The company has positioned
provides protection against financial aspects of risk, such itself on the quality platform. In line with its vision to be
as those to property, life, health and legal liability[1]. the most admired life insurance company in India, it has
developed a strong corporate governance model based on
Life insurance can be defined as “insurance that provides the core values of excellence, honesty, knowledge, caring,
a sum of money if the person who is insured dies while the integrity and teamwork. The strategy is to establish itself
policy is in effect”. In 1818 British introduced to India, as a trusted life insurance specialist through a quality
with the establishment of the oriental life insurance approach to business[1].
company in Calcutta. The first Indian owned Life
Insurance Company was the Bombay mutual life Max New York Life Insurance started its operations in
assurance society which was set up in 1870[1]. India in 2000. It is the first life insurance company in
India to be awarded the IS0 9001:2000 certifications.
The need to safeguard the family brings in the need for life Max New York offers customized products tailored to suit
insurance. Today insurance has become even more individual's needs. Max New York Life has adopted
important due to the disintegration of the prevalent joint prudent financial practices to ensure safety of
family system Times have changed and the nuclear family policyholder's funds. The Company's paid up capital is
has emerged. Apart from other pitfalls of a nuclear family, Rs. 657 crore, which is more than the norm laid down by
a high sense of insecurity is observed in it today besides, IRDA[1].
the family has shrunk[1]. Life insurance is one of the best
tax saving options today. Your tax can be saved twice on a II. METHADOLOGY
life insurance policy-once when you pay your premiums
and once when you receive maturity benefits. Money The study will base on secondary and primary data.
saved is money earned![1]. Secondary data will be collected from records and annual
reports, print media and Internet.
The primary function of insurance is to provide protection
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 International Journal of Research and Development - A Management Review (IJRDMR)
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Primary data will be collected from 50-100 customers by balance 12 are private sector enterprises. Table-2 give the
questionnaire of max life insurance. nature of the life insurance companies[3].

Here the researcher selected questionnaire method by 2. Nature of life insurance co. Ltd.
using this data will be through structured questionnaire
S. Name of the company Nature of
and then tabulated and after analysis and interpretation of
NO. Holding
the data by using statistical tools and after result will be
1 Alions Bajaj life insurance Private
find out and suggestions and recommendations will be
Co.
submitted.
2 Aviva life insurance private
Today there are 14 general insurance companies including 3 Birla sun life insurance co. private
the ECGC and Agriculture Insurance Corporation of India 4 HDFC standard life insurance private
and 14 life insurance companies operating in the country. co.
5 ICICI Prudential life Private
The insurance sector is a colossal one and is growing at a insurance co.
speedy rate of 15-20 Together with booking service, 6 ING Vlsya life insurance co. Private
insurance services add about 7% to the country‟s GDP A 7 Life insurance corporation of Public
well developed and evolved insurance sector is a boon for India
economic development as it provides long term funds for 8 Max new york life insurance Private
infrastructure development of the same time company
strengthening the risk taking ability of the country. The 9 Met life insurance co. Private
table-1 provides the list of private player in the field of 10 Om Kotak Mahindra lie Private
life insurance[2]. insurance co.
11 Reliance insurance Private
1. LIST OF LIFE INSURES 12 SBI life insurance co. Private
13 TATA- AFG life insurance Private
S. Registrati Date of Name of the
company
No on no. Reg. company
1 101 23.10.20 HDFC standard Life Table -3 shows the market share of the lifeinsurance
00 Insurance company companies in India[4]
Ltd.
2 104 15.11.20 Max new york life 3. Players and their market share (%)
00 insurance Co. Ltd.
S. Name of the players Market
3 105 24.11.20 ICICI prudential life
No. share
00 insurance company
1 Life insurance corporation of 76.07%
Ltd.
India
4 107 10.01.20 Kotak Mahindra old
2 ICICI prudential life 6.91%
01 mutual life insurance
insurance company
Ltd.
3 Allianz Bajaj life insurance 4.75%
5 109 31.01.20 Birla sun life
co.
01 insurance company
4 SBI life insurance co. 2.98%
Ltd.
6 110 12.02.20 Tata AIG life 5 Birla sun life insurance co. 1.72%
01 insurance company
Ltd. 6 HDFC standard life insurance 1.66%
7 111 30.03.20 SBI life insurance co.
01 company Limited. 7 TATA-AIG life insurance 1.46%
8 114 02.08.20 INGVYYA life company
01 insurance company 8 Max New York life insurance 1.28%
private Limited. co.
9 116 03.08.20 Bajaj Allianz life 9 Aviv life insurance 1.08%
01 insurance company 10 Om kotak Mahindra life 0.71%
Limited insurance
10 117 06.08.20 Met life India 11 IXIG Vysya life insurance co. 0.54%
01 insurance company
Ltd. 12 Met life insurance co. 0.37%

There are a total of 13 life insurance companies operating 13 AMP SANMAR 0.46%
in India, of which one is a public undertake and the 14 SAHARA LIFE 0.03%
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 International Journal of Research and Development - A Management Review (IJRDMR)
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Any business is likely to be more successful when a strong marketing activities Max Life Insurance Company
marketing view point as philosophy permeates the established in 2000, in one of the most admired private
thinking and guided the decision and actions of everyone insurance companies in India. Max life insurance
in the business[5]. company Ltd is a joint venture between max India Ltd, an
India multi business corporate and misuse Sumitomo
In role of provider of goods and services we make such insurance co. Ltd. a member of MS and AD insurance
marketing related decisions as choosing who our group a general insurance . The company has stared its
customers are, what goods and service to offer where to commercial operations 2001.
sell our goods and services what features to emphasize
and what price to charge. In role of customer, the Max life insurance company Ltd. offers comprehensive
marketing practices of goods and services provider life insurance and retirement solutions for long term
impact on many of the decision made by different savings and protection to more than thirty lac customers.
individuals. The role of marketing in the success of a Mr. Rajesh Sud is the chief executive officer and
business has only recently been recognized perhaps one of managing director of max life insurance.
the earliest and most notable writes who stressed the
importance of marketing was “Peter Ducker‟‟[10]. Max life insurance was ranked fourth among private life
insurance companies with a market share of 10.3% in the
“Marketing is a social and managerial process by which financial year 213-14, for the same financial year the
individual and groups obtain what they need and want company has been on of the fastest growing life insurance
through creating, offering and exchanging products of companies with cross written premium of 7,279
value with others”. “Marketing job is to covert social crores[8].
needs into profitable opportunities”. “Marketing is a
social and managerial process by which individual and As on 31st March 2014, Max New York life insurance had
groups obtain what they need and want through creating, assets under management of Rs. 24,716 crores. the
offering and exchanging products of value with others”[6] company won the trophy for “Best under Writing
initiative of the year” Banking, financial services and
“Marketing job is to covert social needs into profitable insurance excellence awards.
opportunities”[6]. The consumer is at the center and all
other marketing activities operate around this central Max life insurance company Ltd. currently distribution
point customer[5]. model to sell its products that includes the agency
distribution partnership distribution, distribution focused
A company operating under the marketing concept takes on converging markets and alliance marketing through
its main direction from the market place, i.e. from the employed sales force max life has pan India presence with
knowledge and undertaking of its customer needs, wants logo offices across the country.
and desires[5]. This becomes the main basis for
organizing operations. Thus the marketing concept has Max life insurance the leading non-banking channel
three main features:- private insurer in India, has witnessed consistent year on
year growth as mentioned by a recent report. The
1) A market or customer orientation. company recorded a growth of 10% in its operation
revenue which was recorded at Rs. 2,243 crores, while the
2) A subordination of departmental aspiration to company insurer also posted a 92% increase in its profit before tax,
wide goal and which reached Rs 140 crores. Additional improvements
of max life insurance‟s operations included a 16% annual
3) A unification of company‟s operation growth in the firm‟s assets under management, which was
recorded at Rs 34,709 crores. This is the first result that
Market Segmentation is widely defined as being complex has been posted for max life insurance subsequent to the
process consisting in two main phase demerger of max India, into three separate entities.

 Identification of broad large markets. Max Life, the company recorded the net profit before tax
of 1NR 3.980 million, as compared to INR 3. Insurance
Segmentation of these markets in order to select the most Company Limited announced audited earnings results for
appropriate target market and develop marketing mixes the six months of 2013. For the period 750 million in the
accordingly[7]. Targeting involves breaking a market into same period last year, recording a growth of 6%. This rise
segments and then concentration your marketing effect on in net profit was a result of steady revenue coupled with
one or few segments. Target marketing can be the key a better productivity and cast efficiency An indication of a
small business success. The beauty of target marketing is company's ability to meet short-term debt obligations: the
that it makes the promotion, pricing and distribution of higher the ratio, the more liquid the company is. Current
your product and or services easier and more cost ratio is equal to current assets divided by current
effective Target marketing provides a focus to all of four liabilities. If the current assets of a company are more than
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 International Journal of Research and Development - A Management Review (IJRDMR)
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twice the current liabilities, then that company is generally awareness and loyalty for the brand.”[9] The following
considered to have good short-term financial strength. If table-4 shows the annual increase in the number of
current liabilities exceed current assets, then the company customer
may have problems meeting its short-term obligations
4. Annual Increase in Customer.
Max Life Insurance renews brand strategy, shifts
Year No. of Increase % increase
spotlight from advisors to company. The new campaign
Customers in No.
revolves around the fact that good or „sachchi advice‟ is
tough to come by. Max Life Insurance as a brand has 2012-13 9000 - -
always stood up for honesty and transparency in a 2013-14 15800 6800 76.0%
category that is complex and confusing and where trust 2014-15 17600 1800 11.4%
takes a while to be earned. For the last few years, the 2015-16 19100 1500 8.50%
brand has propagated the thought of being 'Aapke 2016-17 22000 2900 15.2%
Sachche Advisor', putting the spotlight on its advisors The table-5 gives information about increase in the
who are genuine, sincere and do what is right for their policies sold by Max life insurance company in the district
customers. Moving forward in its honesty journey, the of Bilaspur for the five consecutive years.
brand has now decided to take the higher ground of
'Sachchi Advice', this time, putting the spotlight on the 5. Annual Increase in the no of policies sold
company as a whole.
Years No of policies Increase % increase
At Max Life Insurance, we are of the firm opinion that sold
rather than spending money on things and items that will 2012-13 400 - -
provide fleeting happiness, one should look at savings for
2013-14 500 100 25.00%
the various stages of life so that the interests of our near
and dear ones are protected in the long term. After taking
care of these important needs, the disposable income 2014-15 600 100 20.00%
could be used to indulging in things that bring immediate 2015-16 550 50 8.33%
gratification and joy.
2016-17 600 50 9.09%
Also, most people tend to live under the shadows of
misplaced optimism, believing that misfortune will never The table – 6 provides information regarding the annual
strike them and postpone buying life insurance over things increase in the turn over of Max life insurance in the
that provide immediate gratification. Therefore, it has district of Bilaspur for the five consecutive years.
become increasingly important for Life Insurance
companies to step forward and educate the consumers 6. Annual increase in the turn over
about the importance and integrities of Life Insurance.
year Turnover Increase in % increase
These forums have become a parallel source of
Turnover
information about consumer preferences and consumer
2012-13 80,00000 - -
outreach, along with the conventional statistical and
marketing tools. Our social media strategy has allowed us 2013-14 87,00000 7,00,000 8.75%
to drive two-way interactive communication with both
2014-15 95,00000 8,00,000 9.20%
existing customers and prospects and take consumer
engagement to the next level. This is complemented by a 2015-16 1,50,00000 55,00,000 57.90%
focused search engine optimizing strategy that helps us
monitor and proactively address consumer concerns. This 2016-17 1,25,00000 25,00,000 7.00%
further reiterates Max New York Life as a
consumer-centric brand.” III. CONCLUSION

On how the brand uses the online medium to reach its The present state of max life insurance is good and also
customers, “We extensively use our own online initiatives creating good brand name in this field. As it is said that
and horizontal and vertical portals to drive maximum individuals satisfactions leads to be group satisfaction,
consumer outreach for product and ongoing customer Max life insurance have worked thoroughly and
communication, customer service and customer introduced many new strategies as a part of marketing tool
engagement. Essentially, this creates opportunity for the to satisfy their employees, Advisor(Agents) providing
business to drive targeted marketing and create interactive friendly environment, stable management, adequate
engagement initiatives for greater consumer-connect. Our trainings available, growth opportunities, so that the
digital strategy provides a window to engage proactively employee can perform better and also loyal towards the
with customers; understand behavioral patterns; assess company. The main strategy which is followed by max life
consumer needs and preferences and drive consumer is Direct selling (personal selling) target customer those
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who are financial sound and according to their needs they [2] https://www.insuranceirda.com.
convince them. This old strategy of marketing is used by
max life insurance and makes it unique in itself. [3] Marketing of financial services, Himalaya
Publication, pp. 221.
The tables clearly indicates that the number fo policy sold
by Max Life (Bilaspur) as an Agency increased [4] https://www.life insurance.com
consistently. The large growth in the year of 2013-14
shows the faith on the company. The growth rate after this [5] P. K. Agrawal, Marketing Management, Pragati
financial year is tending towards a constant trend. This Prakashan, Merut, 2009
may be attributed to the sharing of customers by other
private insurance firms. Nnumber of new marketing [6] P. K. Agrawal, Amarican Marketing Association.
tactics where used by the company such as cold calling,
increasing networking channels and also using the social [7] Samir gupta, “Marketing Strategies in life
wave like facebook, twitter, bloggers etc which effects insurance services”, http://www. Indian
sales of the company. Through this modern strategies they researchjournal.com
increased their channels of networking but more focused
on direct selling. They commonly approaches the people [8] http://www.business.mapsofindia .com
through their Advisors as for marketing they where using
tagline „‟AAPK SACCHE ADVISOR‟‟. [9] http://www.maxlifeinsurance.com

REFERENCES [10] http://www.google.co.in “concept of Marketing.

[1] https://www.slideshare.net/final project report on

Max life insurance 2.

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