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Page 1: Advertisement-Effectiveness project report.pdf

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Page 5: Advertisement-Effectiveness project report.pdf

iv

WxvÄtÜtà|ÉÇWxvÄtÜtà|ÉÇWxvÄtÜtà|ÉÇWxvÄtÜtà|ÉÇ

I hereby declare that project report entitled “STUDY OF

ADVERTISEME�T EFFECTIVE�ESS” IN ICICI

PRUDE�TIAL LIFE I�SURA�CE CO. LTD. written and

submitted by me under the guidance of Dr. H.S. GREWAL, Principal

management, SGRR-ITS, Dehradun is my original work.

The empirical findings are based on data collected

by myself. While preparing the report I have not copied from any

source or other projects submitted for similar purpose.

Date: (Gyandeep Kumar) Roll No. : 08260500034

Place: MBA 2008-2010

Page 6: Advertisement-Effectiveness project report.pdf

v

ACKNOWLEDGEMENT

If words are considered as a symbol of approval and tokens of appreciation

then let the words play the heralding role of expressing my gratitude. It is a

moment of pleasure for me to acknowledge the help and support for those

people who made me able to present this report for evaluation as the

partial fulfillment of “Master Of Business Administration’’.

I take this opportunity to thank the management of ICICI Prudential for

allowing me to take up the Summer Internship Program in their

organization. At the outset, I express my sincere gratitude to my project

guide Mr. Sachin Kumar, (Unit Manager), ICICI Prudential, who has been

very kind and considerate by providing me with an opportunity to get

associated with an esteemed and eminent corporate like “Industrial Credit

and Investment Corporation of India”.

Further, I extend my earnest thanks and gratefulness to my

internal guide Dr. H.S. GREWAL, (Principal Management), Shri Guru Ram

Rai Institute Of Technology And Science, Dehradun for his precious

guidance and mentoring but for which my training here would not been so

rewarding and fruitful.

At last it is my pious duty to record my heartiest gratitude to

my parents and my family who taught first lessons of life and inspired me

to face the hardships of life. At last, I would like to thank all my SGRRIT’an

friends for their love, faith and support.

ZçtÇwxxÑ ^âÅtÜZçtÇwxxÑ ^âÅtÜZçtÇwxxÑ ^âÅtÜZçtÇwxxÑ ^âÅtÜ

Page 7: Advertisement-Effectiveness project report.pdf

vi

PREFACEPREFACEPREFACEPREFACE

"Advertisements are sometimes spoken of as the nervous system of

the business world. As nervous system is very important in human

body so it is vital in business world. Therefore, in this project we

want to study Advertising Effectiveness of life insurance companies

especially the concern company ICICI Prudential Life Insurance Co

Ltd. Management wants the advertising managers to do well and be

effective in their campaign. After all, advertising uses the scarce

resources that could be invested in a number of ways. Therefore,

the question that management poses is, “Is advertising the best

way to use those funds?" and if yes “Is it heading in right

direction?” And it is the job of the advertising campaign planner to

be able to answer that question. To do so usually requires some

form of advertising evaluation and research which has been done in

later part of this project work.

Page 8: Advertisement-Effectiveness project report.pdf

vii

CONTENTSCONTENTSCONTENTSCONTENTS

S.N TOPIC Page

CERTIFICATE ii

DECLARATION iv

ACKNOWLEDGEMENT v

PREFACE vi

CHAPTER 1 INTRODUCTION 01

CHAPTER 2 RESEARCH METHODOLOGY 32

CHAPTER 3 DATA ANALYSIS & INTERPRETATION 35

CHAPTER 4 CONCLUSION 51

CHAPTER 5 SUGGESTION 54

BIBLIOGRAPHY 56

ANNEXURE 58

Page 9: Advertisement-Effectiveness project report.pdf

1

CHAPTER- ONE

INTRODUCTION

• ABOUT INDUSTRY…………………………… 02

• ABOUT ICICI PRUDENTIAL……………. 06

• VISION & VALUES……………………………. 10

• PRODUCT LINE………………….................... 11

• SWOT ANALYSIS…………………................. 17

• INSURANCE ADVERTISEMENT TREND 19

• MEDIA STRATEGY OF ICICI-PRU…. 24

Page 10: Advertisement-Effectiveness project report.pdf

2

ABOUT: INDUSTRY PROFILE

The business of life insurance in India in its existing from started in

India in the year 1818 with the establishment of the Oriental Life

Insurance company in Calcutta. Some of the important milestones in

the life insurance business in India are:

1912: The Indian Life Assurance Companies Act enacted as the first

statute to regulate the life insurance business.

1912: The Indian Life Assurance Companies Act enacted to enable the

government to collect statistical information about both life and non-

life insurance business.

1938: Earlier legislation consolidated and amended to by the

Insurance Act with the objective of protecting the interests of the

insuring public.

1956: Take over of 245 Indian and foreign insurers and provident

societies by the central government and nationalized. LIC formed by

an Act of parliament, viz. LIC Act, 1956, with a capital contribution of

Rs. 5 crore from the Government of India.

The general insurance business in India, on the other hand, can trace

its roots to the Triton Insurance Company Ltd., the first general

insurance company established in the year 1850 in Calcutta by the

British. Some of the important milestones in the general insurance

business in India are:

1907: Set up of The Indian Mercantile Insurance Ltd., the first

company to transact all classes of general insurance business.

1957: General Insurance Council, a wing of the Insurance Association

of India, frames a code of conduct for ensuring fair conduct and sound

business practices.

1968: The Insurance Act amended to regulate investments and set

minimum solvency margins and the tariff Advisory Committee set up.

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3

1972: The General Insurance Business (Nationalization) Act, 1972

nationalized the general insurance business in India with effect from

1st January 1973.

107 insurers amalgamated 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 incorporated as a company.

Insurance sector reforms in 1993, Malhotra Committee, headed by

former Finance secretary and RBI Governor R.N. Malhotra, were

formed to evaluate the Indian insurance industry and recommend its

future direction. The Malhotra Committee was set up with the

objective of completing the reforms initiated in the financial sector.

The reforms were aimed at “ creating a more efficient and competitive

financial system suitable for the requirements of the economy keeping

in mind the structural changes currently underway and recognizing

that insurance is an important part of the overall financial system

where it was necessary to address the need for similar reforms…” In

1994, the committee submitted the report and some of the key

recommendations include:

1. Structure

Government stake in insurance companies to be brought down to

50%. Government should take over the holdings of GIC and its

subsidiaries so that these subsidiaries can act as independent

corporations. All the insurance companies should be given greater

freedom to operate.

2. Competition

Private Companies with a minimum paid up capital of Rs. 1bn should

be allowed to enter the industry. No Company should deal in both Life

and General Insurance through a single entity. Foreign companies

may be allowed to enter the industry in collaboration with the

domestic companies. Postal Life Insurance should be allowed to

operate in the rural market.

Only one state Level Life Insurance Company should be allowed to

operate in each state. Regulatory body The Insurance Act should be

Page 12: Advertisement-Effectiveness project report.pdf

4

changed. An Insurance Regulatory body should be set up. Controller

of Insurance (Currently a part from the Finance Ministry) should be

made independent.

3. Investments

Mandatory Investments of LIC Life Fund in government securities to

be reduced from 75% to 50%. GIC and its subsidiaries are not to hold

more than 5% in any company (There current holdings to be brought

down to this level over a period of time). Customer Service LIC should

pay interest on delays in payments beyond 30 days. Insurance

companies must be encouraged to set up unit linked pension plans.

Computerized of operations and updating of technology to be carried

out in the insurance industry.

The Insurance Regulatory and Development Authority Reforms in the

Insurance sector were initiated with the passage of the IRDA Bill in

Parliament in December 1999. The IRDA since its incorporation as a

statutory body in April 2000 has fastidiously stuck to its schedule of

framing regulations and registering the private sector insurance

companies.

Attracted by the huge untapped potential, many private players

entered the market after the Insurance bill was passed in late 2000. A

majority of these were collaborations between an Indian company and

a leading MNC insurance/financial services company.

Page 13: Advertisement-Effectiveness project report.pdf

5

COMPANY INDIAN PARTNER

FOREIGN INSURER

AREA

Birla Sun Life Aditya Birla Group

Sun Life, Canada Life Om Kotak Kotak Mahindra

Finance Old Mutual, South Africa

Life HDFC-Standard Life

HDFC Standard Life, UK Life Royal Sundaram Sundaram

Finance Royal Sun, UK Life and

Non-Life ICICI-Prudential ICICI Prudential, UK Life Max New York Life

Max India New York Life, USA

Life Tata-AIG Tata Group AIG, USA Life and

Non-Life ING Vysya Vysya Bank ING Insurance,

Netherlands Life

Aviva Dabur CGU Life, UK Life MetLife India Jammu &

Kashmir Bank MetLife, USA Life

Bajaj Allianz Bajaj Auto Allianz Life & Non-Life

SBI Life Insurance

SBI Cardiff, France Life Source: http://www.knowledgedigest.com

Page 14: Advertisement-Effectiveness project report.pdf

6

ABOUT: ICICI PRUDENTIAL

PROMOTERS:

• ICICI Bank

About ICICI Bank: ICICI Bank Ltd 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.

Page 15: Advertisement-Effectiveness project report.pdf

7

ICICI PRUDENTIAL GROWTH HISTORY:

ICICI Prudential, a joint venture between ICICI Bank and Prudential

UK, has been around ever since the private sector was allowed to sell

life insurance policies. ICICI Prudential began their operations in

12th December 2000 after receiving approval from Insurance

Regulatory Development Authority (IRDA).

Since then the tribe of life insurers has grown from 12 to 16, but ICICI

still leads the private sector pack. With a portfolio of over 6.5 million

policies, India's biggest private sector life insurer has not merely held

on to its share but grown it; at the end of January 2008, the firm

commanded 29 per cent of the share owned by private sector players.

Quite some way below was Bajaj Allianz with 21 per cent, while State

Bank of India came in third with 10 per cent.

ICICI Prudential's premium income grew at about 100 per cent

between March 2003 and March 2007. Interestingly enough, the

insurer started out with the traditional endowment products and was

not the first to introduce the more popular Unit Linked Insurance

Policy (Ulip): the credit for that goes to Birla Sunlife.

However, in the first full year of operations itself, it started offering

Ulip policies and was selling more policies than anyone else. Today,

Birla Sunlife doesn't find a place in the top five and players such as

HDFC Standard Life, which were late to cotton on to Ulips, may be

regretting it.

It wasn't just that ICICI Prudential rolled out Ulips quickly; the

company also made sure the products were priced competitively.

Compared with the competition, ICICI's upfront charges have always

been lower.

With charges across the industry now converging at around 20 per

cent of first year premiums, ICICI has come up with a zero-load

product. Another scheme that has been introduced automatically

balances the debt and equity components of the portfolio every

quarter. Apart from this, ICICI Prudential has been quick off the block

with retirement solutions and the first to come up with health

products.

Page 16: Advertisement-Effectiveness project report.pdf

8

If ICICI Prudential has managed to sign on 6.5 million policy holders,

it is because the company has built up a strong agent network, which

brings in 60 per cent of the total premium. Today the insurer has

nearly 250,000 agents working for it, even though it doesn't hand out

the best commissions in the industry.

Bajaj Allianz's network is about 275,000- strong, while the public

sector Life Insurance Corporation boasts over a million agents. ICICI

Prudential does not care about their commission at the lower end

compared with peers they compensate them by ensuring that

customer do better volumes.

The insurer is also rolling out offices at a furious pace. ICICI

Prudential Life has one of the largest distribution networks amongst

private life insurers in India. It has a strong presence across India

with 2074 branches (including 1,116 micro-offices) and an advisor

base of over 225,000 (as on June 30, 2009).

The company has 7 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, Arvind Sahakari Bank, Bhandara Urban Co-operative Bank.

ICICI Prudential targeting of 3,500 branches in five years.

The industry believes ICICI Prudential has a big advantage in that it

can leverage the customer base of its parent ICICI Bank. Bajaj Allianz,

for instance, didn't have that advantage. Banc-assurance today

fetches about 27 per cent of ICICI's premium; apart from ICICI Bank,

the insurer sells through Bank of India, Federal Bank, South Indian

Bank and some co-operative and rural banks.

While ICICI Prudential has done well to stay at the top, the next seven

years will certainly be more difficult than the last seven. Competition

is getting keener - in the past couple of years, Bajaj Allianz is believed

to have written more policies than Prudential. SBI Life has a stronger

distribution now that it has signed on many more agents and

newcomers like Reliance (which took over AMP Sanmar) are growing at

a fast pace. But the strong growth in the industry has surprised

everyone.

ICICI Prudential Life's capital stands at Rs. 4,780 crores (as of June

30, 2009) with ICICI Bank and Prudential plc holding 74% and 26%

Page 17: Advertisement-Effectiveness project report.pdf

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stake respectively. For the period April 1, 2009 to June 30, 2009, the

company has garnered total received premium of Rs 807 crores and

has underwritten over 9 million policies since inception. The company

has assets held over Rs. 43,000 crores as on June 30, 2009.

ICICI Prudential Life is also the only private life insurer in India to

receive a National Insurer Financial Strength rating of AAA (Ind) from

Fitch ratings. The AAA (Ind) rating is the highest rating, and is a clear

assurance of ICICI Prudential's ability to meet its obligations to

customers at the time of maturity or claims.

For the past eight 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.

Page 18: Advertisement-Effectiveness project report.pdf

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VISION:

To be the dominant Life, Health and Pensions player built on trust by world-class people and service. This they hope to achieve by:

• Understanding the needs of customers and offering them superior products and service

• Leveraging technology to service customers quickly, efficiently and conveniently

• Developing and implementing superior risk management and investment strategies to offer sustainable and stable returns to our policyholders

• Providing an enabling environment to foster growth and learning for our employees

• And above all, building transparency in all our dealings

Each of the values describes what the company stands for, the qualities of our people and the way we work. We do believe that we are on the threshold of an exciting new opportunity, where they can play a significant role in redefining and reshaping the sector. Given the quality of our parentage and the commitment of our team, there are no limits to our growth.

VALUES:

The success of the company is to be achieved in its unflinching

commitment to 5 core values.

1. Integrity.

2. Customer first.

3. Boundary less.

4. Ownership.

5. Passion.

Each of the above values described what the company stands for, the

qualities of our people and the way we work. ICICI Prudential aim at

unlimited growth coupled with higher quality of customer satisfaction

by providing the quality products and services.

Page 19: Advertisement-Effectiveness project report.pdf

11

PRODUCT LINE

ICICI Prudential is currently having a wide range of products which

could meet the existing demand of the customer this products are the

various plans which are flexible in nature which can be enhanced with

up to 6 riders to provide a customized to each policy holder.

SAVING & WEALTH CREATION SOLUTIONS

• ICICI Pru Save 'n' Protect is an ideal plan for those who want

to accumulate funds on a regular basis while enjoying

insurance protection.

• ICICI Pru Cash Back is a single policy that combines the triple

benefit of protection, savings & periodic liquidity.

• ICICI Pru Life Time Gold is a unit-linked plan which offers

potentially higher returns over the long term with flexible

investment options to help you achieve your goals. It offers 8

fund options - Preserver, Protector, Return Guarantee Fund,

Balancer, Flexi Balanced, Multiplier, R.I.C.H and Flexi Growth.

• ICICI Pru Life Stage RP is unit linked plan that provides you

with an option of lifecycle-based portfolio strategy that

continuously re-distributes your money across various asset

classes based on your profile, helping you achieve your desired

financial goals.

• ICICI Pru Life Link Super is a single premium unit linked

insurance which offers attractive premium allocation along with

the opportunity to enjoy potentially high returns over the long

term, without compromising on the protection of your family.

• ICICI Pru Invest Shield Life New is a unit linked plan that

allows the customer to enjoy the benfits of potentially higher

returns while guaranteeing him that he will get back atleast all

Page 20: Advertisement-Effectiveness project report.pdf

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the premiums paid by him, while providing protection to his

family with a life insurance cover.

• ICICI Pru Invest Shield Cash back is a unit linked plan that

provides premium guarantee while maintaing a balance between

return, safety & liquidity.

• ICICI Pru Wealth Advantage is a unique whole life single

premium unit linked plan that provides long term coverage upto

the age of 70 years and provides you the option to

systematically withdraw your money.

• ICICI Pru Life Stage Assure a unit linked insurance plan that

provides Guaranteed Maturity Addition of 100%- 450% of first

year premium based on the term and number of premiums

paid, with the additional advantage of a lifecycle based portfolio

strategy that allocates the investor’s money across various asset

classes based on his age and risk appetite.

• ICICI Pru Secure Save is a unique unit linked insurance plan

which aims to grow your money over time with an assurance of

a minimum guaranteed amount at maturity to protect you from

any market downside.

• ICICI Pru Assure Life is a unit linked insurance plan that

provides a Guaranteed Maturity Addition ranging from 140% to

450% of the first year premium while giving you the flexibility to

choose your portfolio strategy from the second year.

PROTECTION SOLUTIONS

• ICICI Pru Pure Protect is a flexible and affordable term

product, with which you can ensure your life and provide total

security for your family in case of an unfortunate event.

• ICICI Pru Life Guard is a protection plan, which offers life cover

at low cost. It is available in 2 options –level term assurance

with return of premium & single premium.

Page 21: Advertisement-Effectiveness project report.pdf

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• ICICI Pru Home Assure is a mortgage reducing term assurance

plan designed specifically to help customers cover their home

loans in a simple and cost-effective manner.

CHILD PLANS

ICICI Pru Smart Kid New ULRP is a policy that is designed to

provide money at key educational milestones in the child's life.

SmartKid plans are also available in traditional form.

RETIREMENT SOLUTION

• ICICI Pru Forever Life is a traditional retirement product that

offers guaranteed returns for the first 4 years.

• ICICI Pru Life Time Super Pension is a regular premium unit

linked pension plan that helps one accumulate over the long

term and offers 5 annuity options (life annuity, life annuity with

return of purchase price, joint life last survivor annuity with

return of purchase price, life annuity guaranteed for 5,10 and

15 years & for life thereafter, joint life, last survivor annuity

without return of purchase price) at the time of retirement.

• ICICI Pru Life Stage Pension is a regular premium unit linked

pension plan that provides you with a unique lifecycle-based

strategy that continuously re-distributes your money across

various asset classes based on your age and risk profile

• ICICI Pru Life Link Super Pension is a single premium unit

linked pension plan.

• ICICI Pru Immediate Annuity is a single premium annuity

product that guarantees income for life at the time of

retirement. It offers the benefit of 5 payout options.

• ICICI Pru Life Stage Assure Pension is a unique pension plan

that assures guaranteed additions of up to 200% of the first

Page 22: Advertisement-Effectiveness project report.pdf

14

year premium, giving investors an unmatched start towards

accumulating for their retirement kitty.

• ICICI Pru Elite Pension is a unit linked pension plan that

provides flexibility to the customer to pay for a limited term and

lets him build a kitty for his retirement to provide an annuity for

life.

HEALTH SOLUCTION

• ICICI Pru Hospital Care is a fixed benefit inpatient

hospitalisation plan, covering various stages of treatment with a

daily allowance, ICU, procedures & recuperating allowance. It

covers a range of medical conditions (900 surgeries) and has a

long term guaranteed coverage upto 20 years.

• ICICI Pru Crisis Coveris a 360-degree product that will provide

long-term coverage against 35 critical illnesses, total and

permanent disability, and death.

• ICICI Pru Diabetes Care Active is a long term insurance policy

created for individuals with Type II diabetes and pre-diabetes. It

offers long term (upto 20 years) control over diabetes through a

specially designed Wellness Programme including regular health

checkups and a Diabetes Coach to facilitate diabetes

management. It also provides you coverage against seven major

critical illnesses.

• ICICI Pru Cancer Care is a specialty health plan for most types

of cancers. The plan gives a lump sum payout on diagnosis as

well as at different stages in the treatment of various cancer

conditions.

• ICICI Pru MediAssure is a reimbursement inpatient

hospitalization health insurance policy that provides guaranteed

insurability till age 75 years.

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15

• ICICI Pru Health Saver is a comprehensive health plan which

provides a reimbursement inpatient hospitalization cover along

with building a health savings fund to cover any other day-to-

day medical expenses.

GROUP INSURANCE SOLUCTIONS

• Group Gratuity Plan: ICICI Prudential Life's group gratuity

plan helps employers fund their statutory gratuity obligation in

a scientific manner and also avail of tax benefits as applicable to

approved gratuity funds.

• Group Leave encashment Plan: ICICI Prudential Life’s Group

offers a market linked and traditional leave encashment plan

designed to aid the employer to build a fund to meet their future

leave encashment liability. The contributions made will be

invested as per the chosen investment plans and will be

available for payment of the benefit when it falls due.

Additionally, the product also provides for term cover for all the

employees covered under the policy.

• Group Superannuation Plan: ICICI Prudential Life offers a

flexible market linked and traditional schemes that provide

substantial benefits to both employers and employees. Both

defined contribution (DC) and defined benefit (DB) schemes are

offered to optimise returns for members of the trust and

rationalise cost. Members have the option of choosing from

various annuity options or opting for a partial commutation of

the annuity at the time of retirement.

• Group Immediate Annuities: ICICI Prudential Life realises the

importance of prudent retirement planning. With this in mind, it

has developed a suite of life and joint life annuities which

guarantee periodic payment to annuitants upto death. Further

there are options which return the purchase price on death of

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16

annuitants. These annuity options are offered to our existing

superannuation customers, and also to superannuation funds

not managed by us.

• Group Term Plan: ICICI Prudential Life's flexible group term

solution helps provide an affordable cover to members of a

group. The cover could be uniform or based on

designation/rank or a multiple of salary. The benefit under the

policy is paid to the beneficiary nominated by the member on

his/her death.

FLEXIBLE RIDER OPTIONS

ICICI Prudential Life offers flexible riders, which can be added to the

basic policy at a marginal cost, depending on the specific needs of the

customer.

1. Accident & disability benefit:: If death occurs as the result of

an accident during the term of the policy, the beneficiary

receives an additional amount equal to the rider sum assured

under the policy. If an accident results in total and permanent

disability, 10% of rider sum assured will be paid each year, from

the end of the 1st year after the disability date for the remainder

of the base policy term or 10 years, whichever is lesser.

2. Critical illness benefit: Critical Illness Benefit Rider provides

protection against 9 critical illnesses to the policyholder when

attached to the basic plan.

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17

SWOT ANALYSIS OF ICICI PRUDENTIAL

STRENGTH WEAKNESS OPPORTUNITY THREAT A huge database

of corporate

clients, retail

customer, and

bank customers

of ICICI.

Lack of

Information about

the product among

consumers.

Tie up with more

corporate agents all

over India.

Threat from

existing life

insurance

players.

Highest paid up

capital deposited

in IRDA, in

comparison to all

players.

Target upper class

people only.

A large part of the

cities are uncovered

where they do not

have any branches.

Threat to

substitute

products.

Assets base of

ICICI is more then

Rs 1, 08,000

Crores.

Policy charges are

very high. Number of adopting

new technology. Threat from new

entrance.

Training

provided to all

people

associating with

ICICI prudential.

Focusing mainly on

the urban sector. Strong Brand of

Company helps to

boost sales inn

market.

Change in the

policy of IRDA.

One of the largest

financial

Institution of

India’s.

Most of the Plans

are too much

complicated.

Attract more people

by providing customer

centric products.

Competition

from more &

more new

players. Motivation

factors provided

by the parent

companies.

Some Top

Nationalized banks

should be made Allies.

People don’t

aware of

different

distribution

channel. ICICI Prudential

is No. 1 private

life player in

India.

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18

ICICI PRUDENTIAL EDGE:

The ICICI Prudential edge comes from commitment to their customers,

in all that they do - be it product development, distribution, the sales

process or servicing. Here's a peek into what makes them leaders.

1. ICICI Prudential products have been developed after a clear and

thorough understanding of customers' needs. It is this research that

helps us develop Education plans that offer the ideal way to truly

guarantee your child's education, Retirement solutions that are a

hedge against inflation and yet promise a fixed income after you retire,

or Health insurance that arms you with the funds you might need to

recover from a dreaded disease.

2. Having the right products is the first step, but it's equally important

to ensure that customers can access them easily and quickly. To this

end, ICICI Prudential has an advisor base across the length and

breadth of the country, and also partners with leading banks,

corporate agents and brokers to distribute our products.

3. Robust risk management and underwriting practices form the core

of ICICI Prudential business. With clear guidelines in place, we ensure

equitable costing of risks, and thereby ensure a smooth and hassle-

free claims process.

4. Entrusted with helping customers meet long-term goals, they adopt

an investment philosophy that aims to achieve risk adjusted returns

over the long-term.

5. Last but definitely not the least, ICICI Prudential team is given the

opportunity to learn and grow, every day in a multitude of ways. They

believe this keeps them engaged and enthusiastic, so that team can

deliver on our promise to cover you, at every step in life.

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19

INSURANCE ADVERTISEMENT TREND

LIC Vs Private Players

The difference in the level of awareness of these new players as

compared to the hitherto monopoly of LIC was decreasing fast because

of the aggressive advertising measures adopted by private insurers.

The new companies focused their campaigns primarily on building an

image of trustworthiness and reliability for themselves. Secondly, their

advertisements focused on insurance as an investment option and not

a mere tax saving tool – another first for the Indian market. Most of

these advertisements carried messages like the family’s happiness,

human bonding, etc., with underlying emphasis on the security that

insurance could provide. Also, instead of projecting the idea, that an

insurance policy actually starts working only after the death of the

insured, the new campaigns projected that insurance protects people

throughout their lives.

Various Insurance Ads

In one of its TV commercials, ICICI Prudential showed a series of

scenes depicting the childhood, marriage and old age of an individual.

The purpose of using these visuals was to translate the company’s

message ‘I will protect’ into real-life incidents. In order to project its

commitment towards consumers to ‘protect at every stage of life,’ the

company brought in the concept of sindoor, which symbolizes

protection. Sindoor was shown throughout the commercial as a mark

of auspiciousness and protection, and at the end, it became the red

line below the ICICI Prudential logo.

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20

Max New York also resorted to depicting positive emotions such as

trust and protection in its print advertisements. The company

released two print advertisements. While one of them carried an image

of the revered deity Goddess Durga, the other projected three

teenagers standing together, with their faces painted green, white and

saffron – like the Indian national flag. Reportedly, Max New York

wanted to convey the message that ‘insurance is your partner for your

life.’

In addition to such TV commercials, the private insurance companies

were trying to make their presence felt by organizing blood donation

camps, contests and sponsoring various events social events through

their agents.

ING Vysya tied up with leading US-based Columbia Picture’s Indian

arm to carry out promotional activities using the blockbuster English

movie ‘Spiderman.’ In the metros, ING Vysya distributed free movie

tickets to its customers. The latter also organized the Green Mumbai

Drive and several blood donation camps in association with the Red

Cross, besides sponsoring the action replay of the India-West Indies

cricket match series in May 2002 and also in November 2002.

Om Kotak and Birla Sun Life took to sponsoring events in a major

way, to attract prospective customers. Om Kotak initially highlighted

in its advertisements the credibility and trustworthiness of individual

partners (Old Mutual & Kotak Mahindra) through its generic

campaigns. The TV commercials featured men and women ‘meeting’

themselves in the future – happy, healthy and secure, thanks to

insurance.

Bajaj Allianz went a step ahead. Apart from bringing out TV

commercials and putting up hoarding and billboards, it entered into a

two-month long contract with Shoppers Stop. According to the

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21

contract, every Shoppers Stop outlet had an Allianz Bajaj kiosk that

provided information about policies in order to attract customers.

Allianz Bajaj’s entire communication package included print

advertisements, outdoor media campaigns and direct marketing

methods. All its print advertisements carried a visual of human

hands, which symbolized partnership and care to stress on the

concept of care.

Similarly, Tata AIG entered into an agreement with Westside to set up

information kiosks in all its outlets in order to attract people’s

attention. Also, Tata AIG was one of the first insurance companies to

adopt the celebrity endorsement strategy. Tata AIG chose the Hindi

movie star, Naseeruddin Shah, as its brand ambassador for endorsing

its personal accidental death insurance policy.

In addition, private players in the insurance sector charted out

various innovative marketing plans to establish their products. For

instance, ICICI Prudential launched the ‘TruLife Club’ for its high-

value policyholders as part of its marketing strategy. Through TruLife

Club, the company offered a wide range of health-related products,

health and fitness equipment and membership in gyms, health resorts

and clinics in India. Policyholders with a sum assured of Rs 0.5

million or more were included into this club.

Punch Lines

Another interesting development was regarding the punch lines used

by private insurance players that invariably tried to associate positive

emotions with insurance products. While ING Vysya said ‘Adding life

to insurance,’ ICICI Prudential said, ‘We cover you, at every step in

life.’ Similarly, HDFC Standard advertisements projected a happy man

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22

asserting; ‘Now I can continue enjoying a comfortable lifestyle even

after I retire.’ Om Kotak highlighted its campaigns with ‘Jeene ki

azaadi’ (Freedom to live)’ and Bajaj Allianz stated, Life insured by

care.’ LIC came out with a corporate advertisement on TV with the

punch line, ‘Zindagi Tumhari Roshan Rahe’ (May your life be glorious).

LIC Vs ICICI Prudential

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 nonresident 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 companies 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 Pru 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

Page 31: Advertisement-Effectiveness project report.pdf

23

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.

It’s all about Money

In recent times, the consumer has been bombarded with an

unprecedented barrage of brand advertisement campaigns from

insurance companies. Turn on the radio, TV, or open a newspaper or

internet portal – the glut of insurance advertisements is there to see.

The insurance industry is estimated to have spent over Rs 900 crore

in 2007, up from Rs 200 crore in 2002 on brand building. Of the

media investments absorbed in 2007, around 53 per cent went to TV,

and the remaining to the print media. Life insurers alone accounted

for over 70 per cent.

Page 32: Advertisement-Effectiveness project report.pdf

24

MEDIA STRATEGY OF ICICI PRUDENTIAL

LIFE INSURANCE

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.

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:

Page 33: Advertisement-Effectiveness project report.pdf

25

‘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:

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.

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26

Press gave the consumer a rational and tangible reason to buy

insurance first and secondly from ICICI Prudential. The product

specific advertising focused 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 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.

Page 35: Advertisement-Effectiveness project report.pdf

In addition to adv

activities to raise c

Prudential. “It incl

consumer awarene

different cities su

Bangalore and Ma

contributed signifi

category and the co

alliances with telec

Dominos.

Source-h

advertising, the company has also in

e consumer awareness about life insura

ncludes seminars – ICICI Prudential r

ness meets on ‘the need for retiremen

such as Pune, Aurangabad, Coimba

Mangalore. These are very well atten

nificantly towards increasing awarene

company. Apart from this, company al

lecom companies, as well as companies

http://www.businessworld.in

27

initiated several

urance and ICICI

l regularly holds

ent planning’ in

batore, Nagpur,

tended and have

eness about the

also entered into

ies like BPCL and

Page 36: Advertisement-Effectiveness project report.pdf

28

Television As A Medium:

CHINTAMANI, the mascot of the middle class, has become a

household name. Even kids are demanding toys modelled around his

scraggly old figure. Thanks to him, ICICI Prudential now enjoys a

brand recall of 92 per cent next to LIC's 97 per cent, according to AC

Nielsen's Brandtrack 7 study out last year. Insurance brand building

has certainly come a long way. Financial services advertising has

traditionally been tactical. It usually just imparts information, given

the complexity of the products.

With the liberalisation of the insurance market in 2000, building a

separate insurance brand with a towering public sector unit like LIC

that held 100 per cent of the market share proved to be an urgent as

well as a daunting task. Awareness of the brand was the first goal that

had to be met. Rohit Mull, Vice-President (Marketing), Tata AIG, says,

"Insurance buying involves a high degree of involvement. At the

outset, people were not aware that Tata had forayed into the

insurance business. Awareness had to be driven to a level where it

culminates in a transaction. It is unlike some FMCG companies like

Coke and Pepsi where marketing has to be driven only to the extent of

preference."

Insurance agents demanded that the companies support them by

advertising. People they are selling to should at the very least know

that the brand they are selling really exists. Initially, all advertising by

private insurers ended up reinforcing the LIC brand image as the PSU

was still synonymous with life insurance.

Historically, print was the traditional choice for the medium of

advertising. The break with tradition came when ICICI Prudential

arguably became the first private insurance company to recognise and

harness the power of TV advertising, with its `Sindoor' campaign in

2001. Then came its retirement solutions campaign with the tagline

`Retire from work, not life.'

The second campaign saw ICICI Prudential getting into product-

specific advertising. With Chintamani, insurance advertising got a new

treatment. Sujit Ganguli, Head (Marketing), ICICI Prudential, says,

"Chintamani is a very interesting character. The claymation (clay

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29

animation), particularly, breaks from the clutter. To add to it, the

jingle is also very catchy."

Now, most private players have 50-70 per cent of their ad spend

skewed in favour of television. Marketing budgets have been soaring

for the past three years. Reportedly, on a budget of Rs 5.8 crore for

February 2005 alone, ICICI Prudential's `Retirement solutions

campaign' was the highest spending brand, pipping several HLL

brands to the post. The fact that insurance selling activity reaches a

peak around March also needs to be taken into account.

The advertising has been spread across mass as well as niche TV

channels. S.Muralidharan, Chief Marketing Officer, SBI Life, says, "We

have advertised in 10 languages. We chose TV because its footprint is

quite large. The visual is always more effective and more universal.

Print advertising is a two-level abstraction, in terms of language and

in terms of the thought."

The campaigns have also tapped several ideas associated with

insurance; an alternative to LIC's `Mr Sharma', which harped on the

idea of protecting your family against the wage earner's death. The

current campaigns are less dark and foreboding. Some even use

humour while others spark sentimentality.

HDFC Standard Life, for instance, uses the idea of `self respect' as its

platform. M. Suresh, General Manager (Sales), says, "While selling

insurance, it does not work if you remind people of their imminent

death. Instead of selling insurance by offering protection and safety,

we use the platform of self-respect." The TV ad features multiple

relationships — those between husband and wife, father and son,

grandfather and grandson. The family members refuse help from each

other because they have their `self-respect.' The print ads use the

characters from the television ad to extend the idea of the campaign.

The press ad is, however, packed with more information about the

products.

Tata AIG's `boy planting a sapling that grows into a tree' works on the

idea of planning ahead. The company also uses brand ambassadors.

Says Mull, "We have two ambassadors - Naseeruddin Shah for

Nirvana Pension and Harsha Bhogle for Maha Life. Both ambassadors

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30

connote credibility and respect. Harsha, for instance, signifies being

an IIM Ahmedabad product, a `numbers' guy and so on."

Kotak Mahindra's Old Mutual Life campaign saw the focus shift to

print and outdoor once its TV campaign fell flat. "We decided on a

more outdoor-and print-heavy marketing strategy. It was felt that

people needed to be provided with information rather than be hit with

visuals. Press ads and outdoor ads serve that purpose," says Rahul

Sinha, Vice-President (Marketing), Kotak Mahindra Old Mutual Life.

Kotak uses catch phrases with a twist in all its hoardings. Lines like

"Eat your cake and have it too" or "Bulls you win, bears you win" have

been used in its outdoor campaigns to explain its equity-linked

products.

Kotak and SBI Life use the same brand colours and logo as the

mother brand. As much as 20 per cent of Kotak's business comes

from bancassurance. "We call it the "6=1" approach. The line "Think

Investment, think Kotak" applies to the bank, the insurance wing as

well as the mutual fund. We are trying to project a traditional Indian

brand with the same core values," says Sinha.

SBI Life has 63 per cent business coming from bancassurance. So, its

advertisements are directed towards telling people that they can buy

insurance from the bank. "Advertising, therefore, consists of branch

merchandising. Its more about point-of-purchase sort of advertising,"

says Muralidharan. "SBI Life's TV campaigns have been more for the

non-bank customers. The tone of our ad was more corporate and less

about products," he adds.

Throughout this barrage of ad campaigns, LIC has not been keeping

quiet. According to analysts, pension products and ULIPs are the

relatively unsuccessful products in LIC's business portfolio. This has

been attributed to low commissions for agents because of the low risk

content of the products. In the case of ULIPs, the agents are still

grappling with understanding the complexity of its equity-linked

features. They say private players have cashed in on this and usually

advertise for pension products or ULIPs.

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31

Many private players have trained their sights on SEC A and B. Lalit

Kumar Dash, Executive Director (Marketing), LIC, says, "Most private

players aim at segments of high net worth. They give emphasis to the

premium income. On the other hand, LIC has to fulfil a social

responsibility. Our spread is across the country and we have to cater

to the high, middle and lower income segments."

Last year, LIC's Rs 125-crore budget was divided with 20 per cent

going to TV, 25-30 per cent for print and 35 per cent for outdoor.

Through March, LIC had ads across all products being beamed on TV.

The insurance major also undertook scientific studies to look at its

target audience. The company says that the Rs 2 crore it spent on the

Internet has been successful in reaching the urban middle and upper

class.

With the private players flexing their muscles, the LIC pie has hit a

down curve - down from 83 per cent last year to 78 per cent this year.

Many private companies say that there will be a 30-40 per cent

increase in their marketing expenditure by next year, with senior

executives handling FMCG brands such as ITC, Coke and Cadbury

getting roped into marketing insurance wares. The emphasis will be

on creatives and the accent on awareness. And it is TV that is proving

to be new vehicle to carry the insurance business.

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32

CHAPTER- TWO

RESEARCH METHODOLOGY

• PROBLEM FORMULATION…………………...33

• RESEACH OBJECTIVES………………..……...33

• RESEACH DESIGN…………………………….…...33

• SAMPLING DESIGN……………………………......34

• LIMITATION………………………………………..…...34

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33

Problem Formulation

As we know today the competition is getting harder and faster. It is very

necessary to know, how to survive in cut throat competition by using suitable

promotion strategy and correct media.

Research Objective

• To understand the impact of advertisement in the market.

• To know the role of media in visibility of life insurance advertisement.

• To measure the advertisement effectiveness with reference to Life

Insurance Companies.

Research Design

Descriptive research design is used in this research. It includes survey and fact

finding inquiries of different kinds. The major purpose of descriptive research

is description of the state of the affairs, as it exists at present.

Data Collection

There are two sources through which data is collected.

Primary Data: Primary data has been collected mainly through structured

questionnaire. The questions were designed in an easily understandable

manner that the respondents may not have any difficulty in answering them.

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34

Secondary Data: Secondary data has been obtained through websites,

books, and online magazines.

Sampling Design:

1. Sampling Technique

Probability Sampling : Stratified Random Sampling

Age group : 18-45 years (main target customer).

2. Sample size : Total sample size is 50.

3. Sample area : Dehradun

Limitations:

• The research is confined to a certain parts only due to time constraints

and does not necessarily show a pattern applicable to all of Country.

• Some respondents were reluctant to divulge personal information

which can affect the validity of all responses.

• In a rapidly changing industry, analysis on one day or in one segment

can change very quickly. The environmental changes are vital to be

considered in order to assimilate the findings.

Page 43: Advertisement-Effectiveness project report.pdf

35

CHAPTER- THREE

FINDING & INTERPRETATION

Page 44: Advertisement-Effectiveness project report.pdf

Media Used

Here from above

uses television

entertainment.

followed by New

14% share where

54%

ed For Information/Enterta

Internet : 06

Radio : 07

Newspaper : 10

Television : 27

ove graph we come to know that p

ion as a media of inform

t. 54% says they use TV for

ewspaper which has 20% share

ereas Internet has 12% share.

12%

14%

20%

Fig:1 Media Share

Internet Radio Newspaper T.V

36

ertainment:

06

07

10

27

at people vastly

ormation and

r infotainment

are. Radio has

4%

20%

Page 45: Advertisement-Effectiveness project report.pdf

Visibility O

In response of

that they have s

are been noticed

people had not s

96%

4%

Fig:2 Visibility

y Of Life Insurance Advertis

Yes : 48

No : 02

of this question, majority of resp

e seen life insurance ad which m

iced by viewers. 96% have seen a

t seen any life insurance advertise

37

Yes

No

rtisement:

48

02

espondent said

mean that ads

n and only 4%

isement.

Page 46: Advertisement-Effectiveness project report.pdf

38

Music

14%

News

27%

Sports

19%

GEC

40%

Fig: 3 Channel Participation

Ads Mostly Found On Channels:

Music : 07

News : 13

Sports : 09

GEC : 19

In channel-wise segmentation of life insurance ads, we find

that the most ads are watched on GEC( General

Entertainment Channels) followed by 27% of the respondent

who watch life insurance ads on News channels, 19%

watches on Sports Channel and 14% on Music channels.

Page 47: Advertisement-Effectiveness project report.pdf

Content Rec

Out of the 48

advertisement, 9

and remember

advertisements.

Recalled Of Advertisement W

Yes : 44

No : 04

48 respondent who watched lif

t, 92% are able to recall those ad

er them. Only 8% do not reme

92%

8%

Fig:4 Ad Recall

39

t Watched:

44

04

life insurance

advertisements

member those

Yes

No

Page 48: Advertisement-Effectiveness project report.pdf

40

Internet Radio Newspaper Television

%age Visibility 100% 85.71% 80% 85.19%

0%

20%

40%

60%

80%

100%

120%

Fig: 5 Percentage Visibility Of Media

Relative Visibility Of Different Media:

Internet : 06/06

Radio : 06/07

Newspaper : 08/10

Television : 23/27

Here we see that among the person who mostly uses

Internet as a media for information can recall upto 100 % of

the ad which they saw on the internet. Radio and Television

user can remember the ad approx 85% times. And the least

recall among these media is of Newspaper (80%) probably

because it is not interactive in nature and frequency of the

advertisement is quiet low compared with others.

Page 49: Advertisement-Effectiveness project report.pdf

41

Music News Sports GEC

%age Visibility 71% 92.31% 89% 100.00%

0%

20%

40%

60%

80%

100%

120%

Fig: 6 Percentage Visibility of Television

Channels

Relative Visibility Of Different T.V Channels:

Music : 05/07

News : 12/13

Sports : 08/09

GEC : 19/19

GEC (General Entertainment Channels) is leading with100%

relative visibility, followed by 92% visibility of News

Channel. Sports channels are at 3rd position with 89% and

the last is Music channel advertisement. They are seen and

recalled about 71% times only.

Page 50: Advertisement-Effectiveness project report.pdf

42

Rating Of Variables Seen In Advertisement

S.A A N D S.D W.M a. Advertisement Shown

Is Understandable 13 16 10 06 03 +0.60

b. Advertisement Is Believable

05 14 16 10 03 +0.16

c. Messages Shown In Ads Are Relevant For Viewers

04 11 18 06 09 -0.10

d. Benefits Described In Advertisement Are Believable To Viewers

01 11 20 08 08 -0.22

e. Ad Prompted Viewers To Purchase The Product

00 06 17 10 15 -0.68

f. This Ad Is Better Than Other Ads

05 14 19 05 05 +0.18

Where; S.A=Strongly Agree, A=Somewhat Agree, N=Neither, D=Somewhat Disagree, S.D=Strongly Disagree, W.M= Weighted Mean

By assigning weights to the above variables +2 for strongly agree, +1

for somewhat agree, 0 for neither, -1 for somewhat disagree and -2 for

strongly disagree the mean score for (a) comes 0.6. It is between

somewhat agree and neutral. This means that people says that ads

are somewhat understand-able.

The mean score for (b) is 0.16 which means that neither the ads are

believable nor they disagree. There is slight positive attitude toward

believe on advertisement.

The mean score is for (c) -0.10 which is negative but very close to zero.

This means respondent don’t think ads are relevant to them but

neither they strongly disagree this.

The mean score for (d) is -0.22 which state that people to some extent

disagree that benefits described in ad is true.

The mean score for (e) is -0.68 which is negative stating that

respondent somewhat disagree that ads prompted them to buy the

product. There is not a single respondent who strongly agreed the

statement.

The average total weight for (f) is +0.18 which says that people very

slightly agrees that advertisement seen and recalled by them is better.

Page 51: Advertisement-Effectiveness project report.pdf

43

133

165

149158

135

0

20

40

60

80

100

120

140

160

180

LIC India HDFC Std. Birla Sunlife ICICI Prudential Reliance

Fig:7 Ad-Rating

Rankings Of Life Insurance Ads Seen:

Company Total Score Rank

1. LIC India 133 5th

2. HDFC Std. 165 1st

3. Birla Sun-life 149 3rd

4. ICICI Prudential 158 2nd

5. Reliance 135 4th

In response of this question respondent said that they find

HDFC ads more often then followed by ICICI. After this they

find Birla Sunlife closely followed by Reliance and last is LIC

India. It means that HDFC and ICICI PRU lead in the

advertisement frequency and respondent is able to recall

those advertisements.

Page 52: Advertisement-Effectiveness project report.pdf

Ad Show

Buy the ins

Recommen

Suggest the

Would like

Here from above

would like to in

number would s

of respondent

product. And on

product himself

34%

own Influenced Responden

insurance policy : 04

end the insurance policy : 10

the insurance policy : 15

ke to inform : 15

ove graph we see that 34% of the

inform other about the ads an

d suggest other about the product

t will only recommend other

only 9% of the respondent will

elf / herself.

9%

23%

34%

4%

Buy the insu

Recommen

insurance p

Would like

Suggest the

policy

Fig: 8

44

ent To:

the respondent

and the same

uct. About 23%

r to buy the

ill like to buy

insurance policy

end the

ce policy

like to Inform

the insurance

Page 53: Advertisement-Effectiveness project report.pdf

16%

Interestin

The average t

people sometim

family and fri

often and 14%

interesting ads

14%

27%

32%

11%

Fig: 9

sting Ads Shared With Your F

Friends:

Never : 06

Rarely : 12

Sometimes : 14

Often : 07

Very Often : 05

e total weight is 2.84 which

etime shares interesting ads

friend. 27% share rarely, 1

4% does it never while 11% pe

ads very often.

45

Never

Rarely

Sometimes

Often

Very Often

r Family/

06

12

14

07

05

ch mean that

ds with their

, 16% shares

people share

Page 54: Advertisement-Effectiveness project report.pdf

Family/F

84% of individua

family / friend

approached by

policy.

Yes

16%

No

84%

Fig: 10

/Friends Tried To Influence

Secure Any Policy:

Yes : 08

No : 42

duals said that they are never ap

d to secure any policy. Only 16%

y their family member or frien

46

nce You To

08

42

approached by

16% people are

iend to buy a

Page 55: Advertisement-Effectiveness project report.pdf

10%

Interne

Other

Other than televi

advertising, these

(27%) has majorit

Internet (25%) an

market shares an

10%.

25%

27%15%

23%

ernet Newspaper Hoardings Frnd/Family

Fig: 11

er Than TV Respondent Saw

Insurance Ads On:

Internet : 12

Newspaper : 13

Hoardings : 07

Friends/Family : 06

Radio : 11

evision which has captured majo

ese media need to be groomed.

rity share in advertisement else TV

and Radio (23%). Hoardings const

and Family / Friends (public rel

47

Radio

Saw Life

12

13

07

06

11

ajority share in

d. Newspapers

TV followed by

nstitute 15% of

relation) about

Page 56: Advertisement-Effectiveness project report.pdf

48

Life

27%

Health

31%

Child

20%

Retirement

22%

Fig: 12

Most Preferred Insurance Policy:

Life Plan : 13

Health Plan : 15

Child Plan : 09

Retirement Plan : 11

When tried to find liking about insurance products 31%

people wished to have life policy, 27% liked life policy, 22%

liked retirement policy and rest 20% wished to have child

plan.

Page 57: Advertisement-Effectiveness project report.pdf

Ranking O

To

Comp

1. HDFC Standainsurance

2. ICICI Pruinsurance

3. RELIANCE life4. TATA AIG life 5. BAJAJ Allianz

As we know LI

player in an

Industry and

everyone’s first

private players

chasing LIC. Th

LIC is mainly

Public sector.

about private p

ICICI Prudentia

the first choic

public followed

AIG. Life Insura

and Bajaj Allian

position jointly

Std. life (2.82).

Reliance life insu

weight 2.80.

HDFC

ICICI

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

Fig: 13 Avera

g Of Insurance Companies A

To Respondent Perception

mpany Total

Score MeSc

dard life 141 2.

rudential life 172 3.

life insurance 140 2.ife insurance 144 2.anz 141 2.

LIC is a big

n Insurance

nd it is

st choice. But

rs also start

The craze of

ly because of

. If we talk

players then

tial (3.44) is

oice of the

ed by Tata

urance (2.88)

ianz enjoy 3rd

ly with HDFC

). Then come

nsurance with

49

ICICI

Reliance

TATA

BAJAJ

erage Weight

s According

ion:

Mean Score

Rank

2.82 3rd

3.44 1st

2.80 5th

2.88 2nd

2.82 3rd

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50

Comparison between Ad Rating and Company

Standing According To Respondents:

Company Ad-Rating Company

Rating

HDFC Std. life 3.42 2.82

Reliance 2.90 2.80

ICICI Prudential 3.12 3.44

Here, it is seen that people like HDFC advertisement

more but company is not understood up to the mark by

the respondent. Reliance rating is much closer with

respect of its advertisement rating and doing averagely.

And ICICI Prudential is having positive direct relation

with its advertisement.

0

0.5

1

1.5

2

2.5

3

3.5

4

HDFC Std. life Reliance ICICI Prudential

Ad-Rating

Company Rating

Page 59: Advertisement-Effectiveness project report.pdf

51

CHAPTER- FOUR

CONCLUSION

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52

Conclusion:

In concluding part of this project it shows that advertisement is very

much important for any business but advertisement alone do not

account for company’s success.

• From the above findings, we come to know that life insurance

companies have very good visibility. Most of the time people are

able to recall the advertisements. People notices majority of

advertisement on Television followed by Newspapers. The role of

other media such as Internet, Radio, etc. needs be enhanced

and groomed along with T.V and Newspaper. Media such as

internet, telephone and family/friends can be used with great

deal in the advertisement because it has greater impact on the

user due to its interactive nature.

• In television channels, entertainment channels lead in the

frequency of life insurance ads. They have also greater relative

visibility in comparison of other channels therefore advertiser

needs to identify the proper slot and timing for their

advertisements according to their budget.

• In the content part of ads, people agrees that they understand

the advertisement shown but they don’t find relevancy and

somewhat have not been prompted by those ad to buy the

policy. Therefore, efforts should be made to make

advertisements more trustworthy and innovative so that people

can be persuaded to buy the policies. Each ad should speak

about how their firm’s offers can help customers instead of

telling how insurance as a whole can help you.

• On the frequency part, HDFC standard life insurance company

leads in the advertisements. ICICI Prudential closely follows

with slightly lesser points. But when talking about company

ranking according to the perception of the peoples, ICICI

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53

Prudential leads in the table. Here HDFC is at third position

next to the Tata AIG. So, we can judge that number or

frequency of the advertisement is not enough to make favorable

image for the companies; there are some other factors also

which are responsible for company’s credentials. So, company

should have better public relation, public awareness program

and strong corporate philanthropy to have positive image in

public and sell their products.

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54

CHAPTER- FIVE

SUGGESTION

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55

Suggestion:

In the preceding part of the report we have seen that people already

have awareness about the company but they are not aware about

products of the ICICI Prudential Co. Ltd; therefore the main objective

of the company should be to:

i) Create awareness among people about its products

and tell the benefit of having product of ICICI

Prudential.

ii) Build a strong repo and credential in the market so as

to counter main rival LIC.

iii) The insurance sector has largely stuck to images of

happy families, carefree couples and cute babies. We

have to use a different route to break the clutter.

Humor and endorsement of celebrities is some of the

routes available to this.

iv) Rural India is very big and untapped market full of

opportunities. Therefore in order to do so ICICI

Prudential should come in front for development of

rural sector, by way of establishing a school, by digging

a well in villages. May be it seems like a fool’s

suggestion but it is one of the way to gain trust in

rural sector.

v) We can also use to advertise us by using the way of

“Puppetry, Nautanki, Tamasha, etc.” If we adopt this

technique then I am sure that this will be most

creative and cheaper advertisement all over the world.

And by this way ICICI Prudential can again list their

name in top advertiser.

vi) We should use correct media mix and appropriate

channels in order to reach maximum people and

convey message to them.

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56

BIBLIOGRAPHY

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57

BOOKS:

i. Kothari C.R. (2004), “Research Methodology Methods and

Techniques”, N. Delhi, New Age International Publication

ii. Green, Paul, Tull (2002) “Research for Marketing

Decisions”, N. Delhi, Prentice-Hall of India

iii. Sharma D.D. (2008), “Marketing Research: Principle

Application & Cases” N. Delhi, Sultan Chand & Sons

iv. Belch, Mandelchge (6th Edition, Tata McGraw Hill),

Advertising and Promotion.

v. Batra (5th edition, Pearson Prentice Hall) Advertising

Management.

vi. Kotler P. (1999), “Marketing Management”, N. Delhi,

Prentice-Hall of India.

vii. Jha S.M. (2003), “Services Marketing”, N. Delhi, Himalaya

Publishing House.

viii. Bitner M.J. (2008), “Services Marketing” N. Delhi, Tata

McGraw-Hill.

WEBSITES:

i. http://www.iciciprulife.com

ii. http://www.managementparadise.com

iii. http://www.businessworld.in

iv. http://www.outlookindia.com

v. http://en.wikipedia.org/wiki/icici_prudential

vi. http://www.irdaindia.org

vii. http://www.business-standard.com

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58

ANNEXURE

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59

BOARD OF DIRECTORS

The ICICI Prudential Life Insurance Company Limited Board comprises reputed people from the finance industry both from India and abroad.

Ms. Chanda D. Kochhar, Chairperson Mr. N. S. Kannan, Director

Mr. K. Ramkumar, Director Mr. Barry Stowe, Director Mr. Adrian O’Connor, Director

Mr. Keki Dadiseth, Independent Director Prof. Marti G. Subrahmanyam, Independent Director

Ms. Rama Bijapurkar, Independent Director Mr. Vinod Kumar Dhall, Independent Direct Mr. V. Vaidyanathan, Managing Director & CEO

MANAGEMENT TEAM

The ICICI Prudential Life Insurance Company Limited Management team comprises reputed people from the finance industry both from

India and abroad.

Mr.V.Vaidyanathan, Managing Director & CEO Ms. Anita Pai, Executive Vice President - Customer Service,

Technology & Marketing Dr. Avijit Chatterjee, Appointed Actuary Mr. Puneet Nanda, Executive Vice President

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For Further assistance email me at [email protected]