Marketing Mix and Promotional Strategies

of IDBI Federal Life Insurance Co. Ltd.

Report by:



UNDER THE GUIDANCE OF
< >

&
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Asst. Branch Head
IDBI Federal Life Insurance Co Ltd.




DECLARATION
I hereby declare that the project titled !ar"etin# !i$ and
%ro&otional 'trate#ies of IDBI Federal Life Insurance Co
Ltd.( Is an ori#inal project done by &e and no part of this
project is ta"en fro& any source or &aterial published and not
sub&itted to any other colle#es and uni)ersity later.
.


ACKNOWLEDGEMENT
Firstly* I +ould li"e to e$press &y sincere #ratitude to <> ,<>* IDBI
Federal Life Insurance Co Ltd.-* &y %roject #uide* for his attenti)e
#uidance* insi#htful co&&ents and ad)ice for carryin# out this %roject.
He al+ays #i)es &e continuous encoura#e&ent and support* and
shares +ith &e his "no+led#e and e$perience. I really appreciate the
effort he put in the de)elop&ent of &e and &y +or" and his help to
i&pro)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.



Executive Summary
0a&e1.
2oll no.1 .
'ec3 .
Organizational etail!:
0a&e of the or#ani4ation: IDBI Federal Life Insurance Co Ltd.

Address of the 5r#ani4ation: ,
,


/elephone 0u&bers1

!ain acti)ity of the or#ani4ation: Life Insurance.
Company guie:
Name1
De!ignation1
Telep"one number!1

E#mail1



Title o$ t"e pro%ect: !ar"etin# !i$ and %ro&otional 'trate#ies focusin# on the role of
ad)ertisin# and consu&er beha)ior to+ards the pro&otional
'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 %ro&otional 'trate#ies of
IDBI Federal Life Insurance Co Ltd.
De!cription o$ t"e pro%ect in brie$: !6 &ain ai& is to understand the !ar"etin#
'trate#y and %ro&otional 'trate#ies adopted by
IDBI Federal Life Insurance Co Ltd.
&et"oology1 Field +or" based on %ri&ary and secondary data.

Recommenation! to ID'I (eeral Li$e In!urance Co Lt1
%rint & 7lectronic !edia Ad)ertise&ent should be used at a hi#h le)el especially /8
ads should be used as its reach to the interior of the country is stron# and also the
"ind of influence it sho+ case on people is &uch hi#her co&pare to other &edias.
After the initial pro&otional ca&pai#n the relati)e ad)anta#e of IDBI F52/I' LIF7
I0'92A0C7 Co. Ltd o)er its co&petitor should be hi#hli#hted.
Hoardin#s at pri&e areas should be used.
/he &ost i&portant of all is to create a+areness about co&pany:s product as +ell as
a brand in the &ar"et is )ery necessary.
/he co&pany can use celebrity to create a+areness about the brand and also can
collaborate +ith so&e production houses of fil&s and tele)ision serials +hich can
reach people in &ass.
C O N T E N T
Title
1. Brief about Insurance Industry.
;. Challen#es facin# Insurance Industry.
3. %resent scenario of Insurance industry.
4. Co&pany %rofile.
<. Co&petitors.
=. !ar"etin# !i$ in IDBI federal life insurance co&pany.
7. Brief about IDBI federal products.
8. IDBI federal promotional strategies.
9. Brand a+areness of IDBI federal life insurance co
ltd.
>?. Recommendations.
>>. Conclusion.
>;. Reference.
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* retire&ent 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 eli&inates +orries and &iseries of losses by
destruction of property and death. It also pro)ides capital to the society as the funds
accu&ulated 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.
A. Liability Insurance 3 /his insures property such as auto&obiles* property and
professionalBbusiness &ishaps.
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 co&panies 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 s.uee4e the s&all ne+ entrants.
*o)er o$ Supplier!: /hose +ho are supplyin# the capital are not that bi# a threat.
For instance* if so&eone as a )ery talented insurance under+riter is presently
+or"in# for a s&all insurance co&pany* 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
co&panies. Bi# corporate clients li"e airlines and phar&aceutical co&panies pay
&illions of dollars e)ery year in pre&iu&s.
Availability o$ Sub!titute!: /here e$ist a lot of substitutes in the insurance industry.
!ajorly* the lar#e insurance co&panies pro)ide si&ilar "inds of ser)ices C be it auto*
ho&e* co&&ercial* health or life insurance.
@ith the si4e of +orldDs population reachin# #i#antic proportions* #lobal insurance is also
#ainin# in stature. %ri)ate as +ell #o)ern&ent insurance a#encies around the +orld are
runnin# for insurin# li)es of &illions ,and in the process insurin# their o+n businesses
&ore-.
In fact* the insurance industry is a "ey co&ponent of the +orld econo&y today o+in# to its
pre&iu&s* its in)est&ent and* abo)e all* the social and econo&ic 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 econo&y today* one
need to "eep in &ind that financial )iabilityBstability of the insurance co&pany is a &ajor
consideration at the ti&e of purchasin# insurance contract. /he )iability factor is i&portant
because &any a ti&es* an insurance pre&iu& paid currently pro)ides co)era#e for losses in
distant future and there are instances +here a nu&ber of insurance co&panies 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#encies for insurance co&panies +hich could be helpful in pro)idin# sound infor&ation
on financial )iability of )arious insurance co&panies.
&ar+eting in In!urance
Insurance co&es under the ser)ice sector and +hile &ar"etin# this ser)ice* due care is to be
ta"en in .uality product and custo&er satisfaction. @hile &ar"etin# the ser)ices* it is also
pertinent that they thin" about the inno)ati)e pro&otional &easures. It is not sufficient that
you perfor& +ell but it is also i&portant that you let others "no+ about the .uality of your
positi)e contributions.
/he creati)ity in the pro&otional &easures is the need of the hour. /he ad)ertise&ent*
public relations* +ord of &outh co&&unication needs due care and personal sellin#
re.uires 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 co&pany
for&uli4e their &ar"etin# strate#ies +ith lot of thou#ht and dili#ence to capture the
untapped potential in the insurance industry. /hrou#h this project +e ai& to understand the
strate#ies adopted by IDBI Federal and to find out the effecti)eness of these pro&otional
strate#ies throu#h a study on consu&er beha)ior.
Present scenario of Insurance industry
/he brief outloo" about the re#ulatory chan#es done by the Indian Eo)ern&ent o)er the
years is #i)en belo+13
/he effect of insurance refor&s has been positi)e on the insurance industry. /here has been
positi)e #ro+th in all the se#&ents* +ith in)est&ents flo+in# in the ri#ht direction.
2efor&s ha)e helped to achie)e rapid #ro+th in critical areas and sustain the& o)er a
period of ti&e throu#h channeli4ed strate#ies.
%ost refor&s* the nu&ber of players ha)e increased fro& F 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 pre&ier
de)elop&ent and co&&ercial 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 FGH e.uity +hile Federal Ban" and A#eas o+n ;=H e.uity
each. IDBI Federal launched its first set of products across India in !arch ;??G* after
recei)in# the re.uisite appro)als fro& the Insurance 2e#ulatory De)elop&ent Authority
,I2DA-.
In just fi)e &onths of inception* IDBI Federal beca&e one of the fastest #ro+in# ne+
insurance co&panies to #arner 2s >?? crores in pre&iu&s.
As on !arch A>st* ;??I* the Co&pany had collected &ore than A;G crores in pre&iu&s*
throu#h o)er GJ*??? policies and o)er 2s ;G;< crores in 'u& Assured. /he Co&pany
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 pre&ier industrial de)elop&ent
ban". Created in >I<= 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 a&on#st India:s fore&ost
co&&ercial ban"s* +ith a +ide ran#e of inno)ati)e products and ser)ices* ser)in# retail
and corporate custo&ers in all corners of the country fro& =GI Branches >>F? A/!s.
/he Ban" offers its custo&ers an e$tensi)e ran#e of di)ersified ser)ices includin# project
financin#* ter& lendin#* +or"in# capital facilities* lease finance* )enture capital* loan
syndication* corporate ad)isory ser)ices and le#al & technical ad)isory ser)ices to its
corporate clients as +ell as &ort#a#es and personal loans to its retail clients.
As part of its de)elop&ent acti)ities* IDBI Ban" has been instru&ental in sponsorin# the
de)elop&ent of "ey institutions in)ol)ed in India:s financial sector C such as the 'ecurities
and 7$chan#e Board of India ,'7BI-* 0ational 'toc" 7$chan#e of India Li&ited ,0'7- and
0ational 'ecurities Depository Ltd.



Federal Ban" is a scheduled co&&ercial ban" founded in >IA>.Federal Ban" is one of
India:s leadin# pri)ate sector ban"s* +ith a do&inant 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 custo&ers +ith a +ide )ariety of financial products. Federal Ban" is
one of the first lar#e Indian ban"s to ha)e an entirely auto&ated 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 pay&ent and call centre facilities to
offer round3the3cloc" ban"in# con)enience to its custo&ers.
/he Ban" has been a pioneer in pro)idin# inno)ati)e technolo#ical solutions to its
custo&ers* 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 a&on# 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* Eer&any and Hon# Kon#. A#eas has a trac" record in
de)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 e&ploys &ore than >A*??? people and has annual inflo+s of al&ost
792 >G billion.


Milestones
!arch ;??G L IDBI Federal starts operations +ith t+o products C Ho&esurance &
@ealthsurance.
Au#ust ;??G L IDBI Federal beco&es one of the fastest #ro+in# ne+ life insurers to
collect pre&iu&s +orth 2s >?? crores.
5ctober ;??G L IDBI Federal launches Bondsurance
Manuary ;??I L IDBI @ealthsurance Cup ;??I C India )Bs 'ri Lan"a held in 'ri Lan"a.
!arch ;??I L collected pre&iu& of o)er A;G corers and GJ*??? policies and a 'u&
assured of 2s ;G;< crores since inception
0o)e&ber ;??I L IDBI Federal launches Inco&esurance

'ran get! bigger



/he !ission
@e ai& to be reco#ni4ed as a leadin# pro)ider of +ealth &ana#e&ent* protection and
retire&ent propositions that satisfy the needs of and add )alue to our "ey custo&er
se#&ents.
@e shall continually stri)e to enhance the custo&er e$perience* in relationship
&ana#e&ent and ser)ice deli)ery* and interact +ith our custo&ers 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 hu&an capital in order to achie)e our &ission.
8ision
/o be a custo&er centric channel* +hile settin# bench&ar"s in the life insurance industry*
in ter&s of presence* producti)ity and profitability.







Co&petitors of IDBI Federal Life Insurance co. Ltd.
>. Bajaj Allian4 Life Insurance Co&pany Li&ited ;?. A7E50 2eli#are Life Insurance Co&pany
Li&ited ;. Birla 'un Life Insurance Co. Ltd ;>. DLF %ra&erica Life Insurance Co.
Ltd.
A. HDFC 'tandard Life Insurance Co. Ltd ;;. 'tar 9nion Dai3ichi Life Insurance Co&p. Ltd.
F. ICICI %rudential Life Insurance Co. Ltd.
<. I0E 8ysya Life Insurance Co&pany Ltd.
=. Life Insurance Corporation of India
J. !a$ 0e+ 6or" Life Insurance Co. Ltd
G. !et Life India Insurance Co&pany Ltd.
I. Kota" !ahindra 5ld !utual Life Insurance Li&ited
>?. 'BI Life Insurance Co. Ltd
>>. /ata AIE Life Insurance Co&pany Li&ited
>;. 2eliance Life Insurance Co&pany Li&ited.
>A. A)i)a Life Insurance Co. India %)t. Ltd.
>F. 'ahara India Life Insurance Co* Ltd.
><. 'hrira& Life Insurance Co* Ltd.
>=. Bharti ANA Life Insurance Co&pany Ltd.
>J. Future Eenerali Life Insurance Co&pany Ltd.
>I. Canara H'BC 5riental Ban" of Co&&erce Life Insurance Co. Ltd
.
&AR,ETIN- &I. IN ID'I (eeral Li$e In!urance Co
Lt


/he ter& insurance &ar"etin# refers to the &ar"etin# of Insurance ser)ices +ith the ai& to
create custo&er and #enerate profit throu#h custo&er satisfaction. /he Insurance
!ar"etin# focuses on the for&ulation 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 co&bination 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
sellin# ser)ices and therefore due +ei#ht a#e in the for&ation of &ar"etin# &i$ for the
Insurance business is needed.
/he &ar"etin# &i$ includes sub3&i$es of the J %:s of &ar"etin# i.e. the product* its price*
place* pro&otion* people* process & physical attraction. /he abo)e &entioned J %:s can be
used for &ar"etin# of Insurance products* in the follo+in# &anner1

*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 co&pany sells
ser)ices and therefore ser)ices are their product. @hen a person or an or#ani4ation buys an
Insurance policy fro& the insurance co&pany* 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 co&pany and the
facilities of clai&s and co&pensation. It is natural that the users e$pect a reasonable return
for their in)est&ent and the insurance co&panies +ant to &a$i&i4e their profitability.
Hence* +hile decidin# the product portfolio or the product3&i$* the ser)ices or the sche&es
should be &oti)ational. IDBI Federal pro)ides &any products +hich cater to the needs of
the Indian custo&ers. IDBI Federal products13
L @7AL/H'92A0C7
L I0C5!7'92A0C7
L B50D'92A0C7
L /72!'92A0C7
L H7AL/H'92A0C7
L 27/I27'92A0C7
L E259% !IC25'92A0C7
L H5!7'92A0C7
L L5A0'92A0C7
LCHILD'92A0C7
0EALT1S/RANCE:
/he @ealthsurance !ilestone %lan is a uni.ue Insured @ealth %lan desi#ned to help cross
different &ilestones in one:s life. It enables custo&ers to sa)e and build +ealth under the
protection of Insurance to &eet their financial #oals. /he @ealthsurance !ilestone %lan
offers a +ide ran#e of In)est&ent options* Insurance options and un&atched fle$ibility that
allo+s custo&ers to custo&i4e a plan suited to their needs. Custo&ers can plan for their
&ilestones li"e co&pletion of school education for their child* a &arria#e* ac.uisition of a
ne+ house and so on. /his %lan co&es +ith a +ide ran#e of >A in)est&ent options and J
insurance benefits 3 all pac"a#ed +ith a lo+ char#e structure and un&atched fle$ibility.
INCO&ES/RANCE:
IDBI Federal Inco&esurance 7ndo+&ent and !oney Bac" %lan is loaded +ith lots of
benefits +hich ensure that you #et Euaranteed Annual %ayout alon# +ith insurance
protection +hich +ill help you to reach you #oals +ith full confidence. Inco&esurance %lan
is )ery fle$ible and allo+s you to custo&ise your %lan as per your indi)idual and fa&ily:s
future re.uire&ents. !oreo)er it also allo+s you to choose %re&iu& %ay&ent %eriod*
%ayout %eriod* %ayout 5ptions and &ore.
'ONDS/RANCE:
/he IDBI Federal Bondsurance Ad)anta#e %lan is a sin#le pre&iu& plan +here you need
to &a"e just a one3ti&e in)est&ent. 6ou can choose a !aturity %eriod of <* J* >?* >< or ;?
years. At the end of the chosen period* you +ill recei)e a #uaranteed &aturity a&ount. In
case of death of the insured person before the !aturity Date* a #uaranteed Death Benefit
+ill be paid.


TER&S/RANCE:
IDBI Federal /er&surance %rotection %lan ,/er&surance- co&es +ith three co)er options
+hich you can select on the basis your re.uire&ent. /er&surance is desi#ned +ith a host of
benefits & options ai&ed at satisfyin# your e)ery need. It not only allo+s you to custo&ise
your plan as per your indi)idual and fa&ily:s needs* it also co&es +ith a host of benefits
li"e con)enient insurance co)er options* fle$ible pre&iu& pay&ent ter&s* choice of policy
ter& and lots &ore fle$ible options.
1EALT1S/RANCE:
%resentin# the IDBI Federal Healthsurance Hospitalisation and 'ur#ical %lan. If you:re
a#ed >G years to << years and currently in #ood health* this ne+ insurance plan is desi#ned
to help you &ana#e the e$tra financial burden that co&es +ith hospitalisation* by pro)idin#
a +ide ran#e of attracti)e benefits.
RETIRES/RANCE:
A retire&ent plan desi#ned to accu&ulate &oney to aid a co&fortable retire&ent. /he plan
pro)ides a #uaranteed return on your in)est&ent and #ro+s steadily o)er the years to
ensure that you ha)e a corpus on your retire&ent date* #uaranteed.
-RO/* &ICROS/RANCE:
IDBI Federal Eroup !icrosurance %lan pro)ides affordable life insurance co)er to #roups.
/his plan is e$tre&ely useful to !icro Finance Institutions* 'elf Help Eroups and 0E5s to
insure the li)es of their #roup &e&bers and thus pro)ide security to the #roup &e&bers:
fa&ilies. /he plan can also be used for pro)idin# loan protection to the #roup &e&bers:
fa&ilies.
1O&ES/RANCE:
IDBI Federal Ho&esurance %lan is a &ort#a#e reducin# ter& assurance plan C !2/A*
+hich offers protection to your ho&e fro& your ho&e loan. /he %lan pro)ides a co)er
e.ual to the outstandin# balance of your ho&e loan a#ainst any unfortunate e)ents that &ay
occur to you. /his plan #i)es you the option of a 'in#le %re&iu&.
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 &e&ber. /his ter& assurance plan pro)ides co)er
to a person directly liable for loan repay&ent ,and the partners* in case of a partnership-* as
per the benefit schedule
C1ILDS/RANCE:
@hether your child +ants to be a doctor* an en#ineer* an !BA* a sports&an* a perfor&in#
artist* or drea&s of bein# an entrepreneur* the IDBI Federal Childsurance Drea& builder
Insurance %lan +ill "eep you future3ready a#ainst both* chan#in# drea&s 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$ibility so that your plan &eets your specific needs. Ho+e)er* +hat &a"es Childsurance
a &ust3ha)e for any parent +ho is loo"in# to &a"e their child:s future shoc"3proof is its
po+erful insurance benefits. Childsurance allo+s you to protect your child plan +ith triple
insurance benefits so that your +ealth3buildin# efforts re&ain unaffected by unforeseen
e)ents and your child:s future #oals can be achie)ed +ithout any hindrance.
Despite all these tailored products there is still scope for i&pro)e&ent in this field. /he
Eroup Insurance sche&e is re.uired to be pro&oted* the Crop Insurance is re.uired to be
e$panded and the ne+ sche&es and policies for the )illa#ers or the rural population are
to be included. . /he introduction of 2ural Career A#ents 'che&e has been found
instru&ental in inducin# the rural prospects but the process is at infant sta#e and re.uires
&ore professional e$cellence. 'o there is lot of potential in insurance sector +hich is
+aitin# to be uncor"ed hence re)ealin# to the econo&y the benefits of insurance industry.
/he policy&a"ers are re.uired to acti)ate the efforts. It +ould be prudent that the LIC is
allo+ed to pursue a policy of direct in)est&ent for rural de)elop&ent. In)est&ent in
Eo)ern&ent securities should be stopped and the in)est&ent should be channeli4ed
in pri)ate sector for &a$i&i4in# profits. In short* the for&ulation of product3&i$ 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 co&panies.
*RICIN-:
In the insurance business the pricin# decisions are concerned +ith1
i- /he pre&iu& char#ed a#ainst the policies
ii- Interest char#ed for defaultin# the pay&ent of pre&iu& and credit facility* and
iii- Co&&ission char#ed for under+ritin# and consultancy acti)ities.
@ith a )ie+ of influencin# the tar#et &ar"et or prospects the for&ulation of pricin#
strate#y beco&es si#nificant. In a de)elopin# country li"e India +here the disposable
inco&e in the hands of prospects is lo+* the pricin# decision also #o)erns the
transfor&ation 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 custo&ers or the
policyholders. /he pricin# in insurance is in the for& of pre&iu& rates.
/he three &ain factors used for deter&inin# the pre&iu& rates under a life insurance plan
are &ortality* e$pense and interest. /he pre&iu& rates are re)ised if there are any
si#nificant chan#es in any of these factors.
L !ortality ,deaths in a particular area-1 @hen decidin# upon the pricin# strate#y
the a)era#e rate of &ortality is one of the &ain considerations. In a country li"e
'outh Africa the threat to life is )ery i&portant as it is played by host of diseases.
L 7$penses1 /he cost of processin#* co&&ission to a#ents* reinsurance co&panies
as +ell as re#istration are all incorporated into the cost of instal&ents and pre&iu&
su& and for&s the inte#ral part of the pricin# strate#y.
LInterest1 /he rate of interest is one of the &ajor factors +hich deter&ine 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 other
financial instru&ents are &uch #reater than the percei)ed returns fro& the insurance
pre&iu&s.
*LACE:
/his co&ponent of the &ar"etin# &i$ is related to t+o i&portant facets
i- !ana#in# the insurance personnel* and
ii- Locatin# a branch.
/he &ana#e&ent of a#ents and insurance personnel is found si#nificant +ith the )ie+point
of &aintainin# the nor&s 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 pro&ised 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$istent +hich has been instru&ental in &a"in# +orse the i&a#e proble&. /he
transfor&ation of potential policyholders to the actual policyholders is a difficult tas" that
depends upon the professional e$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 pro&ised 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 re.uired to be #i)en ade.uate incenti)es to sho+ their
e$cellence. @hile recruitin# a#ents* the branch &ana#ers need to prefer local persons and
pro)ide the& trainin# and conduct se&inars. In addition to the a#ents* the front3line staff
also needs an intensi)e trainin# pro#ra&&ed to focus &ainly on beha)ioral
&ana#e&ent. Another i&portant di&ension to the %lace !i$ is related to the location of the
insurance branches.
@hile locatin# branches* the branch &ana#er needs to consider a nu&ber of factors* such
as s&ooth accessibility* a)ailability of infrastructural facilities and the &ana#e&ent of
branch offices and pre&ises. In addition it is also si#nificant to pro)ide safety &easures and
also factors li"e office furnishin#* ci)ic a&enities and facilities* par"in# facilities and
interior office decoration should be #i)en proper attention.
/hus the place &ana#e&ent of insurance branch offices needs a ne+ )ision* distinct
approach and an inno)ati)e style. /his is essential to &a"e the +or" place conduci)e*
attracti)e and proacti)e for the #eneration of efficiency a&on# e&ployees. /he branch
&ana#ers need professional e$cellence to &a"e place decisions producti)e. IDBI Federal
has around thousands and thousands of insurance a#ents all o)er India to &ana#e their
re#ional custo&ers effecti)ely. Also* IDBI Federal has o)er JI= branches all o)er India
+hich help in increasin# their custo&er base.
*EO*LE:
9nderstandin# the custo&er 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 i&portant to
use this resource efficiently in order to satisfy custo&ers. /rainin#* de)elop&ent and stron#
relationships +ith inter&ediaries are the "ey areas to be "ept under consideration. /rainin#
the e&ployees* use of I/ for efficiency* both at the staff and a#ent le)el* is one of the
i&portant areas to loo" into. IDBI Federal has created )arious financial products +hich
ha)e been tailored accordin# to the needs of the custo&ers. /hey ha)e o)er thousands of
sales personnel +ho are trained efficiently to brid#e in the #ap bet+een the custo&ers and
the co&pany.
*ROCESS:
/he process should be custo&er friendly in insurance industry. /he speed and accuracy of
pay&ent is of #reat i&portance. /he processin# &ethod should be easy and con)enient to
the custo&ers. Instal&ent sche&es should be strea&lined to cater to the e)er #ro+.

%ro&otion
/he insurance ser)ices depend on effecti)e pro&otional &easures. In a country li"e India*
the rate of illiteracy is )ery hi#h and the rural econo&y has do&inance in the national
econo&y. It is essential to ha)e both personal and i&personal pro&otion strate#ies.
In pro&otin# insurance business* the a#ents and the rural career a#ents play an i&portant
role. Due attention should be #i)en in selectin# the pro&otional 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 to
be #i)en proper trainin# in order to create i&pulse buyin#. Ad)ertisin# and %ublicity*
or#ani4ation of conferences and se&inars* incenti)e to policyholders are i&personal
co&&unication. 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 i&pulse buyin# and the rural prospects +ould be easily transfor&ed into
actual policyholders.

ID'I (eeral "a! al!o aopte variou! promotional !trategie! li+e:
Co&&ercial Ads
%rint Ads
7)ents
%ersonnel sellin#
@ord of &outh
)iral &ar"etin#
/hey ha)e brou#ht out &any interestin# and hu&orous ads of their products such as
@ealthsurance* Inco&esurance* 2etiresurance etc +hich has #ot )ery #ood response fro&
custo&ers. /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#e&ent 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 ti&ed to coincide +ith Children:s day in 0o)e&ber ;?>?. /he spellin#s to be
co&pleted re)ol)ed around )isual and )erbal cues to +ords related to sa)in#* &oney and
finance and ai&ed at teachin# children the )alue of &oney early in life.
/he en#a#e&ent 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 co&pany and the
i&portance of sa)in#.
Also IDBI Federal in)ol)ed the&sel)es in de)elopin# their business by joinin# hands +ith
'A!HI/A* a co&&unity de)elop&ent 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 a&on# 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.
/his +ill ulti&ately help brin# the& closer to financial inclusion. /hey started this journey
+ith 'A!HI/A in ;??G by pro)idin# lo+ cost #roup co)era#e fe&ale &e&bers of
'A!HI/A under Eroup !icrosurance. /his +ay they ha)e co)ered G=*J;> li)es for a su&
assured of 2s. ==.J crores since then. /hey also offer the protection of /er&surance
Era&een 'ura"sha to the fa&ily &e&bers of these people.
IDBI Federal /er&surance Era&een 'ura"sha is especially desi#ned to &a"e life
insurance affordable to rural custo&ers +ith options of four con)enient pre&iu& slabs of
2s FI.?G* 2s IG.>J* 2s >FJ.;< and 2s >I=.AA ,inclusi)e of ta$es- +ith correspondin# su&s
assured of 2s <*???* 2s >?*???* 2s ><*??? and 2s ;?*???.
In this +ay IDBI Federal has &ade intelli#ent &o)es to capture the rural &ar"et +hich has
lot of potential and pro&ise in the future. %ro&otional strate#ies are )ery i&portant for any
intan#ible product especially li"e life insurance and financial sa)in#s +here people should
be #i)en co&plete education about such products because of +hich all insurance co&panies
ta"e due care +hile for&uli4in# their pro&otional strate#ies.
'ran a)arene!! o$ ID'I (eeral Li$e In!urance Co
Lt2
A)arene!! *ercentage o$ 3ariou! ID'I (eeral prouct!:#
*eople !een Averti!ement O$ ID'I (eeral Li$e In!urance Company
$rom:#
Current &ar+et S"are o$ LI(E INS/RANCE CO&*ANIES:#

Recommenation!
%rint & 7lectronic !edia Ad)ertise&ent 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 co&pare to other &edias.
After the initial pro&otional ca&pai#n the relati)e ad)anta#e of IDBI F7D72AL
LIF7 I0'92A0C7 Co Ltd. o)er its co&petitor should be hi#hli#hted.
Hoardin#s at pri&e areas should be used.
/he &ost i&portant of all is to create a+areness about co&pany:s product as +ell as
a brand in the &ar"et is )ery necessary.
/he co&pany can use celebrity to create a+areness about the brand and also can
collaborate +ith so&e production houses of fil&s and tele)ision serials +hich can
reach people in &ass.
CONCL/SION
@ith re#ard to insurance co&panies* consu&ers respond at different rates* dependin# on
the consu&ers characteristics. Hence Insurance co&panies should try to brin# their
ne+ product to the attention of potential early adopters.
a- Due to the intense co&petition in the life insurance &ar"et* the life insurance 2eturn on
in)est&ent* co&pany reputation and pre&iu& outflo+ are &ost preferred attributes
that are e$pected by the respondents. Hence #reater focus should be #i)en to these
attributes co&panies ha)e to adopt better strate#ies to attract &ore custo&ers.
b- Keepin# the cost* .uality and return on in)est&ent in tact is necessary in order to tac"le
the co&petition.
c- Life insurance products are ta"en &ainly by &iddle and hi#her inco&e #roup. Hence
they should be re#arded as &ai& tar#eted inco&e #roups. Life insurance products
+hich are suitable for lo+er inco&e #roup should also be released so that the &ar"et
share increases.
d-- return on in)est&ent* co&pany reputation and pre&iu& outflo+ are &ost preferred
attributes that are e$pected by the respondents. Hence #reater focus should be #i)en
to these attributes.
e- %ri)ate life insurance co&panies should adopt effecti)e pro&otional strate#ies to
increase the a+areness le)el a&on# the consu&ers.
f- Life insurance co&panies should as" for their consu&er feedbac" to "no+ +hether the
consu&ers are really satisfied or dissatisfied +ith the ser)ice and product of the
co&panies. If they are dissatisfied* then the reasons for dissatisfaction should be
found out and should be corrected in future.
#- /he LIC brand na&e has earned a lot of #ood+ill and enjoys hi#h brand e.uity. As
there is intense co&petition in life insurance &ar"et* LIC should +or" hard to
&aintain its top position and offer better ser)ice and product.

References!
Websites
o +++.idbifederal.co&
o +++.irda.#o).in