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Si va Si vani I nsti tute of Management - Secunder abad



Under the guidance of: Submitted By:
Corporate Guide:
Ms. Piyushi Verma ADRASH MISHRA
(Manager Distribution) PGDM 2
ND
YEAR
IDBI Federal Life Insurance Roll No.-:22061

Faculty Guide:
Dr. Agna Fernandez
(M.Com, FPM-XLRI, Associate Professor)
Siva Sivani Institute of Management

2013-15
A Report on

Marketing Mix and
Promotional Strategies of
IDBI Federal Life Insurance
Co. Ltd.


(A summer training project report submitted in partial fulfilment of
the requirement of Post-Graduation Diploma in Management)


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ACKNOWLEDGMENT

I would like to express my gratitude to Ms. Piyushi Verma, MANAGER
DISTRIBUTION, for providing us an opportunity to work in IDBI Federal Life
Insurance Co. Ltd. for entrusting me and providing me valuable inputs for my
project Marketing Mix and Promotional Strategies of IDBI Federal Life
Insurance Co. Ltd.
I sincerely express my gratitude to Dr. Agna Fernandez, M.Com, FPM-
XLRI, Associate Professor (my faculty guide), for giving her valuable guidance,
healthy support and suggestions to make the project a successful one.
I would also like to express my gratitude to Ms. Piyushi Verma (my
company guide) for providing their valuable feedback and intense support
relentlessly throughout the project.
I am really thankful to my parents and friends for helping me to study and
giving feedback in all possible ways to make me feel comfortable during my
project.
There have been numerous influences, big and small that have helped me to
work on my project successfully.
Regardless of the source, I thank all those who may have contributed to this
project.



ADRASH MISHRA
22-061
Siva Sivani Institute of Management-
SECUNDERABAD

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PREFACE

Life insurance business is booming in India. The business of life insurance is
related to the protection of the economic value of human life and this project is just
offered to draw the attention of individuals, who are interested in life insurance
business running by Insurance Regulatory Development Authority (IRDA).
Insurance industry has Ombudsmen in 12 cities. Each Ombudsman is
empowered to redress customer grievances in respect of insurance contracts on
personal lines where the insured amount is less than Rs. 20 lakh, in accordance
with the Ombudsman Scheme. Addresses can be obtained from the offices of LIC
and other insurers.
This project is like just an extract of my rigorous work in Life Insurance
Companies, and I hope the beneficiaries decision regarding recruitment of advice;
or, all information and data. This responsibility really in hence my effective
communication and convincing power and such quality will help me in near future
for having decision making.
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AUTHORISATION

This is to certify that the project title: Marketing Mix and Promotional
Strategies of IDBI Federal Life Insurance Co. Ltd. is a bonafide work
completed by ADRASH MISHRA, Enrollment Number 22-061, in partial
fulfillment of the requirements of the PGDM Program and submitted to SIVA
SIVANI INSTITUTE OF MANAGEMENT- SECUNDERABAD.

I declare that this project is a result of my own efforts and has not been
copied from any source. References from which information has been taken have
been given in the references section.

This work has not been submitted earlier at any other university or institute
for the award of the degree.


ADRASH MISHRA
22-061
SIVA SIVANI INSTITUTE OF MANAGEMENT-
SECUNDERABAD



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Table of Contents
ON THE JOB TRAINING ............................................................................................................................ 1
Company Assigned activities: ................................................................................................................... 1
Targets Assigned:...................................................................................................................................... 1
Accomplishments/Achievement of Objectives ......................................................................................... 1
Learnings: ................................................................................................................................................. 1
I. CHAPTER ............................................................................................................................................ 2
INTRODUCTION .................................................................................................................................... 2
NEED OF THE STUDY ........................................................................................................................... 5
OBJECTIVES OF THE STUDY .............................................................................................................. 5
LIMITATIONS ......................................................................................................................................... 5
RESEARCH METHODOLOGY .............................................................................................................. 6
REVIEW OF THE LITERATURE........................................................................................................... 7
II. CHAPTER .......................................................................................................................................... 10
INDUSTRY PROFILE ........................................................................................................................... 10
COMPETITOR ANALYSIS .................................................................................................................. 20
COMPANY PROFILE ........................................................................................................................... 24
SWOT ANALYSIS OF IDBI FEDERAL LIFE ..................................................................................... 30
CUSTOMERS......................................................................................................................................... 31
III. CHAPTER ...................................................................................................................................... 32
THEORETICAL ASPECT RELATED TO TOPIC OF THE STUDY .................................................. 32
A. Marketing Mix at IDBI Federal Life Insurance .......................................................................... 32
B. Promotional Strategies at IDBI Federal Life Insurance .............................................................. 41
C. Promotional Strategies Adopted By IDBI Federal ...................................................................... 48
IV. CHAPTER ...................................................................................................................................... 50
DATA ANALYSIS & INTERPRETATION .......................................................................................... 50
V. CHAPTER .......................................................................................................................................... 67
REFERENCES ........................................................................................................................................... 69
ANNEXURE............................................................................................................................................... 70
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ON THE JOB TRAINING

Company Assigned activities:
The company IDBI Federal Life Insurance is into selling insurance products. The job assigned
by the company is to get trained and enter the market to sell the products. During the training
process I was trained on three insurance products, Life Insurance, Child Insurance, and Income
insurance. The target given by the company is to complete one sale of insurance product which is
successfully completed.
Plan of action and Execution / Activities performed
Targets Assigned:
Twenty thousand worth of business before 13th May
The target was achieve before 13
th
of May, during the process I met customers and
explained them about three different insurance products with complete details and explanation
about the benefits epically tax benefits one of the customer was convinced and I was able to
make a thirty thousand rupees
Second 20000 businesses before 24th May
Third 20000 business before 3rd June
Fourth 20000 business before 12th June Goals
The Second, third and fourth targets were incomplete; I went across many customers
during this period I met the customers who already have the insurance in LIC which is a
government player, hence it was difficult to convince them and close the sale.
Accomplishments/Achievement of Objectives
At the completion of my 45 days of Industrial Internship Program I was able to complete
the sale of one insurance product of thirty thousand businesses for completion of my target.
Learnings:
The major learning from my IIP is to understand the mood of the customer and how react
according the situation.
Able to understand the corporate culture and flow of communication with the higher
order officials
Learnt that going out into the market and explain the customer is difficult, but after few
days in the market it was comfortable.
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I. CHAPTER
INTRODUCTION
The Indian insurance industry has undergone transformational changes since 2000 when
the industry was liberalized. With a one-player market to 24 in 13 years, the industry has
witnessed phases of rapid growth along with extent of growth moderation and intensifying
competition.
There have also been a number of product and operational innovations necessitated by
consumer need and increased competition among the players. Changes in the regulatory
environment also had a path-breaking impact on the development of the industry. While the
insurance industry still struggles to move out of the shadows cast by the challenges posed by
economic uncertainties of the last few years, the strong fundamentals of the industry augur well
for a roadmap to be drawn for sustainable long-term growth.
The decade 2001-10 was characterized by a period of high growth (compound annual
growth rate of 31 percent in new business premium) and a flat growth (CAGR of around two
percent in new business premium between 2010-12)
There was exponential growth in the first decade of insurance industry liberalization.
Backed by innovative products and aggressive expansion of distribution, the life insurance
industry grew at jet speed.
Regulatory changes were introduced during the past two years and life insurance
companies adopted many new customer-centric practices in this period. Product-related changes,
first in ULIPs (Unit Linked Insurance Plans) in September 2011 and now in traditional products,
will have the biggest impact on the industry
This project involves an understanding of the marketing mix and finding out the various
promotional strategies presently implemented by IDBI Federal Life Insurance Co. Ltd. and to
find out its effectiveness through a study on consumer behavior towards these strategies.
Insurance industry is an industry which is said to be in its Golden period now. And IDBI
Federal is a fast growing company in this industry. IDBI Federal Life Insurance Co Ltd is a
joint-venture of IDBI Bank, Indias premier development and commercial bank, Federal Bank,
one of Indias leading private sector banks and Ageas, a multinational insurance giant based out
of Europe. In this venture, IDBI Bank owns 48% equity while Federal Bank and Ageas own 26%
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equity each. IDBI Federal endeavours to deliver products that provide value and convenience to
the customer. Through a continuous process of innovation in product and service delivery IDBI
intend to deliver world-class wealth management, protection and retirement solutions to Indian
customers. Having started in March 2008, in just five months of inception it has become one of
the fastest growing new insurance companies to garner Rs 100 Cr in premiums. The company
offers its services through a vast nationwide network across the branches of IDBI Bank and
Federal Bank in addition to a sizeable network of advisors and partners.
This project aims in understanding the marketing mix which exists in the insurance
industry. The marketing mix is the combination of marketing activities that an organization
engages in so as to meet the needs of its targeted market. The Insurance business deals in selling
services and therefore due weight age in the formation of marketing mix for the insurance
business is needed. The marketing mix includes sub-mixes of the 7 Ps of marketing i.e. the
product, price, place, promotion, people, process & physical attraction.
This project also aims to help the company to achieve its objective by focusing on their
promotional strategies and to understand its effectiveness by understanding the customer
perception towards these strategies. There are insurance marketing strategies that can take any
insurance agency from mediocre to success when utilized correctly. Breaking into a new
business climate and finding customers is hard work, but when equipped with innovative ideas
and proven techniques, financial markets sales personnel can become extremely successful.
Getting an education and training is very important in every industry, sales is certainly no
exception. Those selling insurance will want begin their careers with the very best tools of the
trade and those with already established businesses that are in need of a motivational push will
also gain great benefits by researching and learning new insurance marketing tips. Through this
project we will be able to understand the promotional strategies implemented by the company
and also make an attempt to find out its effectiveness and suggest better promotional strategies
which would help in increasing the overall profitability of the company. Commercial
advertisements also create huge impact upon the minds of the customers hence this project also
focuses upon the role of advertising in this industry.
Insurance industry is a service oriented industry where promotional strategies play a vital
role because this is an industry which deals with intangible products. Hence it is very necessary
that the company adopt the best marketing strategies which help to communicate the product to
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the customer. With the help of questionnaires and interviews, this project also aims to understand
the perception of the customer regarding the promotional strategies especially the commercial
ads and thereby bringing the company more closely to the customers heart.
Thus this project aims to study the promotional strategy the importance of these tools in
creating increased sales and customer base for the company.


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NEED OF THE STUDY
To understand the seven Ps (Product, Place, Price, Promotion, People, Process,
Physical evidence) of IDBI Federal Life Insurance Co. Ltd. And the promotional
strategies they are using to promote the insurance products
Understanding roles and functions of Marketing manager and factors affecting
decisions of marketing manager.


OBJECTIVES OF THE STUDY
To analyze Marketing Mix and Promotional Strategies of IDBI Federal Life
Insurance Co Ltd.
To find how effectively advertisements influence a person to buy the life insurance
products

LIMITATIONS
Time Duration of the project was 6 weeks. Within this short time, completion of the
project was a challenge. Customers were unwilling to part with information required
for the study.


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RESEARCH METHODOLOGY

Primary data
Secondary data
Primary data: Data required for the study was collected through questionnaires. The sample
size was 101 and the sampling unit was office going people who have either joined recently
or who have been working for quite a few years. Questionnaires were mailed to respondents
and few were handed over to them personally. Both open ended and close ended questions
are used in the design of the questionnaire so as to know the opinion of customers relating to
insurance and awareness about the brand IDBI federal and how they respond to the
marketing stimuli adopted by the company. The type of questionnaire used in this project is
structured. The questions are listed in a prearranged order and respondents are informed
about the purpose of collecting information. The type of sampling was convenient sampling.
Secondary data: Gathering data from internet and television, published articles, books,
research reports and other sources.

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REVIEW OF THE LITERATURE

Literature no. 1
A study by Garg & Verma(2010)
1
, The insurance firms should focus on the concept of
MM and implement the concept. They should quantify the level of expenditure for their mix
ingredients, study elasticity of the mix ingredients, carry out careful analysis in order to identify
the most effective and economic mix, analyze their competitors mix while implementing MM,
review the whole mix in detail so that each segment gets its own assemblage of mix components,
and review their MM on a regular basis. The marketing departments of the insurance firms
should call other functional departments while developing MM and provide details of their
thinking on the subject.

Literature no. 2
In the study by Abdalelah S. Saaty(2011)
2
, attempts to find out the factors important in
developing a suitable marketing strategy for insurance companies. It investigates the reasons for
buying insurance by the current users of insurance, reasons for not buying insurance by non-
users of insurance and the issues and problems faced by Saudi Insurance industry.
The results of the study show that the social and regulatory factors played crucial role in
the consumers decision in purchasing insurance. However it was also found that the public at
large is unaware about the benefits of insurance, and various types of insurance products. The
insurance companies shall focus of promotional marketing strategies. The marketers primary
focus should be on promotional activities.







1
Garg ,M.C.& Verma A.2010. An empirical analysis of the marketing mix in the Life Insurance Industry In
India.The IUP journal of management research .Vol.9.pp07-20.
2
Abdalelah S. Saaty A 2011. Factors Critical in Marketing Strategies of Insurance Companies in Saudi Arabia. The
International Journal of Marketing Studies. Vol.3.pp104-122.
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Literature no. 3
A study by DAndrea & Schleicher(2006)
3
. Attempts to understand the role of
promotions among other key drivers at determining consumers overall store price image (OSPI)
of grocery stores in Latin America, identifying its relative importance.
Pricing is a relevant issue to customers as well as for retailers. However, this research shows that
price promotions and its advertisement may blur the consumers possibilities of identifying
which retailer runs the best prices and minimizes their overall purchasing cost. At the same time,
it makes harder to the retailer to find which factors are more effective in forming the overall
store price image (OSPI). Further understanding of how OSPI is built seems necessary in order
to help retailers make the right decisions that will not confuse consumers.
However, a review of the literature shows that most of the studies have concentrated at
the product level, or have considered isolated variables. Our research was then set for
understanding the relative importance of the different factors that form the OSPI, and consider
the differences towards price promotions across consumer segments and markets.

Literature no. 4
A study by Pulidindi Venugopal(2010)
4
. Attempts to understand the attitude of insured
on agents and promotional activities of life insurance companies
Life Insurance is conceptual and intangible in its nature and it is not understood by majority of
the Indian population. Even though every insurer knows that it is not bought and it has to be sold,
there is a lot of gap among promotional activities and advisors (agents). Hence it caused
complications in marketing its products. Making the uneducated, rural and economically
backward people to understand the insurance concept is a challenging task. Insurers may succeed
if they develop separate strategies for each segment. Promotional activities and agents of life
insurance companies is all about to inform, bringing awareness, develop belief, to reinforce trust
etc. in the minds of the consumers by using tools such as advertising, public relations, displays,
word of mouth, sales promotion, personal selling etc. Promotion bring positive attitude or may
cause negative attitude so knowing the feelings of respondents found essential. Today customers

3
DAndrea & Schleicher A 2006. The role of promotions and other factors affecting overall store price image in
Latin America. The International Journal of Retail & Distribution Management Vol. 34 No. 9, 2006 pp. 688-700.
4
P Venugopal A 2010. Attitude of Insured on Agents and Promotional Activities of Life Insurance Companies.
Drishtikon: A Management Journal Vol. 1 no. 2. 2010 pp. 369-394.
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are more informed with number of options, even still majority of the customers trusts only LIC.
Therefore it is the duty of all insurers to study the attitudes of customers on their agents and
promotional activities to reinforce trust in the customers.
Literature no. 5
A study by Beenish Shameem & Dr Sameer Gupta(2012)
5
. The study is designed to
evaluate the marketing strategies in life insurance service sector & how these strategies boost
sales & marketability of a product which ultimately lead to customer satisfaction. The insurance
scenario faces multiple challenges such as increased costs of operation, regulatory pressures, and
inflexible technology infrastructure. These pressures are compounded by low to moderate
premium growth & the increasing burdens of regulatory compliance. Keeping all the above
problems around the study would attempt to study all the factors that contributed to the effective
marketing strategies. This paper presents different marketing strategies that are taken up in life
insurance services keeping in view external and internal environment of the firm. Marketing
strategy is the basic approach that the business units will use to achieve its objectives, and it
consists of broad decisions on target markets, market positioning and mix, and marketing
expenditure levels.












5
Shameem B. & Dr. Gupta A 2012. Marketing Strategies In Life Insurance Services. International Journal
of Marketing, Financial Services & Management Research Vol.1 Issue 11,November2012 pp132-141
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II. CHAPTER
INDUSTRY PROFILE
INTRODUCTION TO INSURANCE INDUSTRY:
Insurance is a form of risk management that shields insured from the risk of any uncertain of
unfortunate events. In simple terms insurance can be defined as transfer of risk from one entity to
another in exchange of the payment. The transaction consists of insured assuming a guaranteed
small loss in the form of payment to the insurer in exchange of the promise to compensate
insured in case of any kind of financial loss to insured. In a laymans term, insurance is a guard
against monetary loss arising on the happening of an unforeseen event. In developing countries
like India insurance sector still holds lot of potential which need to be tapped.
TYPES OF INSURANCE:
Insurance can be classified into three categories:
1. Life Insurance:
Life Insurance is a concord between the insurer and the policyholder, where insurer
promises to pay beneficiary designated sum of money upon death of the insured person.
Life Insurance covers number of contingencies like Death, Disability, and Disease.
2. General Insurance:
General Insurance is a non-life insurance policy including automobile and homeowner
policy. General insurance specifically consist of non- life insurance. It includes property
insurance, liability insurance and other forms of insurance. Fire and Marine insurance are
called property insurance.
3. Social Insurance:
Social insurance is another type of insurance for weaker section of the society. It provides
protection to weaker section of the society who are unable to pay premium. Industrial
Insurance, sickness insurance, pension plan, disability benefits, unemployment benefits
are some the type of social insurance.



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INSURANCE SECTOR IN INDIA:
Indian insurance sector has gone through different phases of competition, from being an open
competitive market to a nationalized market and then again getting back to liberalized market.
Indian insurance sector has witnessed complete dynamism in past few centuries.
Insurance sector in India has a deep- rooted history. Its mention has been found in writings of
Manu (Manusmriti), Yagnavalkya (dharmashastra) and Kautilya (Arthshastra). Ancient Indian
history has preserved traces of insurance in the form of marine trade loans and carrier contracts.
Insurance industry in India is governed by Insurance Act of 1938, Life Insurance Corporation
Act of 1956 and General Insurance business Act, 1972, Insurance Regulatory and Development
Authority (IRDA) Act of 1999 and other related acts. Insurance industry in India is considered as
an industry with big potential market. One of the reason that India is seen as huge potential
market is because of its huge population and untapped market area of this population. In terms of
population India has an immense potential expanding their life insurance cover. Majority of
people in India are unaware of the functions and benefits of Insurance because of which
insurance sector has a bright future in India. But it is relevant to consider factors like different
varieties of social structure, urban and rural composition other than very important factors like
age, sex, income level, literacy level. Making assessment of Life Insurance potential of India is
very difficult task due to wide variance in every aspect of Indian circumstances and without a
refined analysis any estimate would be meaningless.



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INDIAN INSURANCE INDUSTRY AT PRESENT:
Life Insurance Corporation (LIC) had the monopoly over the market till the late 90s when the
insurance sector in India was opened for private players. Before that there were only two state
insurer, one was LIC (Life Insurance Corporation of India) and GIC (General Insurance
corporation of India).
Indian insurance sector at present has undergone many structural changes in 2000. The
Government of India has liberalized the insurance sector in 2000 with IRDA (Insurance
Regulatory and development authority) lifting all entry restriction of foreign players with a
specific limit on direct foreign ownership. Under the current guideline 26% of equity cap is there
for foreign players in an insurance company and proposal is being given to increase this limit to
49%. Post liberalization insurance industry in India have come a long way and today it stands as
one of the most competitive, challenging and exploring industry in India. Increased use of new
distribution channels are in limelight today due to entry of private players. In the long run the use
of these distribution channels and modern IT tools has increased scope of the insurance industry.
Also the changing economics patterns, changing political scenario, modern IT tools will
eventually help in reshaping future of Indian financial market and Life Insurance business in the
country.
REGULATORY ISSUES:
Insurance Regulatory and Development Authority (IRDA) is a national agency of government of
India. It was formed by an act of Indian Parliament known as IRDA Act 1999 which was
amended in 2002 to incorporate some upcoming requirement. It is responsible for protecting the
interest of policy holders, to regulate and promote orderly growth of Insurance Industry in India.
To achieve this objective IRDA has taken following steps:
1. IRDA has notified protection of policyholders Interest Regulation 2001 to provide for:
policy proposal document is in easily understandable language; claims procedure in both
life and non-life; setting up grievance redress machinery; speedy settlement of claims and
policy holders servicing. The regulation also provides for payment of interest by insurer
for delay in settlement of claims.
2. Solvency margins are to be maintained by the insurer so that they can be in a position to
meet their obligation towards the policyholder with respect to payment of claims.
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3. The Insurance Company has to clearly disclose the benefits, terms and condition under
the policy.
4. The advertisement issued by the insurer should not mislead the insuring public.
5. Proper grievance redress machinery should be set up in the head office and all the other
offices by the insurer.
6. If any complaints are received by the policyholder with respect to the services provided
by the insurer under the insurance contact, then the authority takes up with the insurer.
7. Insurer has to maintain separate account related to the fund of Policyholder. The funds of
the policyholder should be retained within the country.
8. According to the new regime, Insurance companies will have to exposure to rural and
social sector.

CRITICAL SUCCESS FACTORS:
Post Liberalization Insurance industry in India has become very competitive. With private
players entering into the India market making the market lot more competitive. Insurance
industry in India has become highly competitive with different companies and individual agents
competing against each other to gain higher market share. In order to gain higher market share
companies have to differentiate themselves from others. Companies can differentiate themselves
in the market by using a number of critical success factors:

1. Product Quality:
One the most important factor that differentiates companies is by the quality of product it
offers. Quality of product instills a confidence in the customer that the product offered by
the company is better. Better the quality of product, more successful is the company.
2. Developing relationships with the customer:
Insurance Industry is a highly competitive industry. In order to gain the market share first
priority is to be given to the customer. Range of product and services should be designed
to give the customer what he desires.
3. Market Segmentation:
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Greater market segmentation should be done in which target audience should be divided
into homogenous groups and products and services should be targeted towards such
market. This would tie company to their client by customized combination of coverage,
easy payment plan, risk management advice and quick claim handling.
4. Designing new strategies:
Insurance Industry cannot be satisfied with consolidation of their existing market, but
have to achieve future growth and penetration. Companies must focus on new
distribution channels, strengthening their existing point of services, direct contact with
their ultimate customer, refresh their marketing setup, new comers should focus on
tapping the market which is left unexploited by public sector companies.
5. Shift towards Rural market:
Rural market is India is still uncovered by this sector. Insurance penetration can be
achieved by tapping the untapped rural market of India.
6. Motivating sales force:
Sales force is one the major strength that the company has that could differentiate them
from their competitors. A good sales force can do wonders to the future of the company,
because of which a proper motivation of sales force is very important for the company.
Life Insurance Company should constantly involve in motivating their sales force so that
they can meet their target on time.
7. Use of technology:
Technology plays a very important role in the success of the company. Internet based
Life insurance will help companies to reduce time and transaction cost and also improves
quality of services to its customer.
DOMESTIC ECONOMIC CONDITIONS:
Domestic economic conditions play a major role in growth or downfall of an Insurance
company, No matter how financially stable an insurer is; none is immune to the slow economic
growth. In an Indian economy double digit inflation is one the uncomfortable factor and RBI
which is the central bank of India has a huge task of controlling the inflation without hampering
the economic growth. Tradeoff between Interest rates and Inflation has been the core the
business of the RBI and the past one year has been very difficult for the RBI. In an attempt to
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manage inflation, RBI has been constantly raising repo rate and reverse-repo rates every quarter
but it has not succeeded in moderating inflation. This simply implies that inflation is more of a
supply side issue than a monetary implication. The implications of this relatively high interest
rates and high inflation regime are unlikely to be positive for insurance industry. It would be
difficult for an Insurance industry to manage return expectations as they are likely to be high.
While competing with a fixed income product higher assured returns are required for high.
Interest rates in order to increase penetration. There may be some reductions in actual growth
rates, but Indians long term fundamentals remain intact as life Insurance being an industry with
long time horizon, it would be able to tide over economic cycle.
Inflation on the other hand means lower disposal incomes in the hand of the consumer
leading to lower household savings which currently stands at 34.7%, though significantly lower
than china which is 50%.

GLOBAL ECONOMIC ENVIRONMENT:
According to the Swiss Res newly appointed Economist, Kurl Karl low interest rates and
euro debt crisis will prove to be a problem for insurance industry. According to Kurt karl
momentum of growth has been slowed down due to this two factors, but the only bright spot
according to him is the ongoing growth in the emerging market. However Kurl is lot more
optimistic looking forward to 2013 forecasting a pick-up in investment yield and premium in a
modest improvement in economic conditions.
1. Political Development:
Political developments are the more serious threat in Europe and US. In Europe this
can lead to serious sovereign defaults and also exit from the euro monetary union.
2. Emerging markets has been negatively impacted by faltering growth in the developed
economy. Also tighter monetary policies on the part of several emerging economies
also slowed down growth.
3. Both global in-force and new business life insurance fell in 2011, but it again
recovered. According to the economist in order to return to the pre-crisis profitability
short- term factors like low investment returns, high hedging cost and more onerous
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capital requirement. Life Insurance industrys capitalization has improved markedly
and it is in the better shape to cope up with the future challenges.
4. Because of some Regulatory changes in China and India, coming two years will see
life insurance business in emerging market returning to its long term trend of around
8%.

DEMAND DRIVERS:
Insurance industry in India has become lot more competitive in recent years. With private
players entering into the market, competition level has significantly increased with more private
players trying to gain more market share. Some of the demand drivers that give change to the
smaller companies to compete against giants like Life Insurance Corporation of India Ltd (LIC)
which has 70% market share are:
1. Rural market:
According to the Mckinsey report, titled India Insurance 2012: Fortune Favors the
Bold, finds that the sector is still in a dissident with different players in different stage
of development and market presence. According to the Mckinseys report the rural
penetration is likely to increase from about 25% at present to around 35-40% in 2012.
With 65% of the Life insurance coming from rich urban class, smaller companies can
look for rural and low income group as potential demand driver.
2. Product Mix;
A better product mix would also drive growth of insurance companies, with
companies making a move to lower the share of single premium products.
Life insurance product can also fill the gap that is created by growing demand for investment
products and long-term savings.
CHALLENGES FACING INSURANCE INDUSTRY:
Threat of New Entrants: The insurance industry has been budding with new entrants
every other day. Therefore the companies should carve out niche areas such that the
threat of new entrants might not be a hindrance. There is also a chance that the big
players might squeeze the small new entrants.
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Power of Suppliers: Those who are supplying the capital are not that big a threat. For
instance, if someone as a very talented insurance underwriter is presently working for a
small insurance company, there exists a chance that any big player willing to enter the
insurance industry might entice that person off.
Power of Buyers: No individual is a big threat to the insurance industry and big
corporate houses have a lot more negotiating capability with the insurance companies.
Big corporate clients like airlines and pharmaceutical companies pay millions of dollars
every year in premiums.
Availability of Substitutes: There exist a lot of substitutes in the insurance industry.
Majorly, the large insurance companies provide similar kinds of services be it auto,
home, commercial, health or life insurance.
With the size of world's population reaching gigantic proportions, global insurance is also
gaining in stature. Private as well government insurance agencies around the world are running
for insuring lives of millions (and in the process insuring their own businesses more).
In fact, the insurance industry is a key component of the world economy today owing to
its premiums, its investment and, above all, the social and economic role it plays in covering
personal and business risks.

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


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MARKETING IN INSURANCE:
Insurance comes under the service sector and while marketing this service, due care is to
be taken in quality product and customer satisfaction. While marketing the services, it is also
pertinent that they think about the innovative promotional measures. It is not sufficient that you
perform well but it is also important that you let others know about the quality of your positive
contributions.
The creativity in the promotional measures is the need of the hour. The advertisement,
public relations, word of mouth communication needs due care and personal selling requires
intensive care.
There are insurance marketing strategies that can take any insurance agency from
mediocre to success when utilized correctly. Hence it is necessary that an insurance company
formulize their marketing strategies with lot of thought and diligence to capture the untapped
potential in the insurance industry. Through this project we aim to understand the strategies
adopted by IDBI Federal and to find out the effectiveness of these promotional strategies through
a study on consumer behaviour.

PRESENT SCENARIO OF INSURANCE INDUSTRY:
The brief outlook about the regulatory changes done by the Indian Government over the years is
given below:-
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The effect of insurance reforms has been positive on the insurance industry. There has been
positive growth in all the segments, with investments flowing in the right direction. Reforms
have helped to achieve rapid growth in critical areas and sustain them over a period of time
through channelized strategies.
Post reforms, the number of players have increased from 4 to 24 players presently registered
under IRDA (INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF
INDIA).

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COMPETITOR ANALYSIS

Competitor analysis in marketing and strategic management is a judgment of strength and
weakness of the competitors. Companies generally do this analysis to understand the strength
and weakness of their current and potential competitors. This analysis provides both offensive
and defensive strategy to identify both opportunity and threats. IDBI federal Life Insurance is
one of emerging insurance company. It is one of the few companies that have shown rapid
growth since the day of its inception. In order to gain higher market Share Company has to
understand its competitors that is their strength and weakness .Competitor analysis will help
IDBI to understand strength and weakness of their competitors. This analysis will help IDBI to
come up with offensive or defensive strategy to identify both opportunity and threats.
Some of the main competitors of IDBI federal are:
1. AEGON Religare Life Insurance
2. Shriram Life Insurance
3. Bajaj Allianz Life Insurance
4. Bharti AXA Life Insurance Co Ltd
5. Birla Sun Life Insurance
6. DLF Pramerica Life Insurance
7. HDFC Standard Life Insurance Company Limited
8. ICICI Prudential
9. ING Vysya Life Insurance
10. Kotak Life Insurance
11. Max Life Insurance
12. PNB MetLife India Life Insurance
13. Reliance Life Insurance Company Limited
14. Sahara Life Insurance
15. SBI Life Insurance Company Limited
16. TATA AIA Life Insurance
17. Oriental insurance company
18. National insurance company limited
19. United India insurance company limited

1. Life Insurance Corporation of India ( LIC):
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LIC was founded in 1956 with the merger of 243 insurance company and provident
societies. It is the largest insurance and investment company in India. It is a state owned
with 100% stake owned by government of India.
Products offered by LIC are:

1. Jeevan Arogya plan:
Jeevan arogya plan is a unique non-linked health insurance plan which provides
health insurance against certain specified health risk. LICs jeevan arogya plan is a
direct competition to IDBIs Healthsurance plan.
2. Bima Account plan:
Under this plan the premiums payed by the customer after deduction of all charges,
will be credited to the policyholders account maintained separately for each
policyholder. If all premiums are paid the amount held in policyholders account will
earn an annual interest rate of 6% p.a
3. Endowment plan:
Its a unit linked endowment plan which offers investment cum insurance cover
during the term of the policy.
4. Children Plans
5. Plan for Handicapped Dependents
6. Endowment assurance plans
7. Plans for high worth Individual
8. Money Back Plans
9. Special Money Back Plan for Women
10. Whole Life Plans
11. Term assurance plans
12. Joint Life Plan
1.1 SWOT Analysis of LIC:
SWOT Analysis is a strategic planning method used to analyze strength, weakness,
opportunity and threat involved in a business or a project.
1. Strength:
LIC is Indias largest state-owned company and also Indias largest investors
LIC has over 20000 branches all across India and more than 1, 00,000 agents.
LIC is the largest investor in India with largest fund base.
LIC has over 1, 15,000 employees across India.
LIC is the 8
th
most trusted brand of India.
LIC has subsidiaries like LIC card services Ltd, LIC Housing finance Ltd,
LIC Nomura mutual fund.
2. Weakness:
It lacks imagination since it has an image of a government company
Red tape, bureaucracy causes the problem since it is a government company.
During the economic crises managing a he workforce is a lot of burden.

2. ICICI Prudential:
ICICI prudential Life Insurance Company is the joint venture of ICICI bank and
Prudential Plc, one of the leading financial service groups in UK.
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Products offered by ICICI prudential:
1. ICICI pru care:
It is an insurance plan that protects familys future and ensures they lead their life
comfortably.
2. Save n Protect
3. Cash back
4. Home Assure
5. Life Guard
6. ICICI pru iprotect
7. Smartkid Regular premium
8. ICICI pru Elite Life
9. Group term insurance plan
10. Group Gratuity plan
11. Annuity solution
12. ICICI pru life link pension SP
13. Forever Life
14. Immediate annuity
15. ICICI pru heath saver
16. ICICI pru Hospital care
17. ICICI pru crisis cover
18. ICICI pru Mediassure
SWOT Analysis of ICICI prudential:
STRENGTHS:
1.Strong tie up
2.Brand Equity
3.Strong network
4.Huge customer database
5.Strong financial base
Weaknesses:
1.Low customer awareness
2.Less promotion
3.Untouched Rural Population
OPPORTUNITIES:
1.Untouched Rural market
2.Large Uninsured population
3.Network Building
Threats:
1.Competitors
2.Customer beliefs in LIC
3.Fast turnover of employees








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MARKET SHARE



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COMPANY PROFILE

ABOUT IDBI FEDERAL LIFE INSURANCE:
IDBI Federal Life Insurance Co Ltd. is a joint-venture of IDBI Bank, India's premier
development and commercial bank, Federal Bank, one of India's leading private sector banks and
Ageas, a multinational insurance giant based out of Europe. In this venture, IDBI Bank owns
48% equity while Federal Bank and Ageas own 26% equity each. Having started in March 2008,
in just five months of inception, IDBI Federal became one of the fastest growing new insurance
companies by garnering Rs.100 Cr in premiums. Through a continuous process of innovation in
product and service delivery IDBI Federal aims to deliver world-class wealth management,
protection and retirement solutions that provide value and convenience to the Indian customer.
The company offers its services through a vast nationwide network 2,308 partner bank branches
of IDBI Bank and Federal Bank in addition to a sizeable network of advisors and partners. As on
31st December 2013, the company has issued nearly 5.5 lakh policies with a sum assured of over
Rs. 32,110.48 crores.
About the sponsors of IDBI Federal Life Insurance Co Ltd
IDBI Bank Ltd. continues to be, since its inception, India's premier industrial development
bank. It came into being as on July 01, 1964 to support India's industrial backbone. Today, it is
amongst India's foremost commercial banks, with a wide range of innovative products and
services, serving retail and corporate customers in all corners of the country from 1201 branches
and 2156 ATMs. The Bank offers its customers an extensive range of diversified services
including project finance, term lending, working capital facilities, lease finance, venture capital,
loan syndication, corporate advisory services and legal and technical advisory services to its
corporate clients as well as mortgages and personal loans to its retail clients. As part of its
development activities, IDBI Bank has been instrumental in sponsoring the development of key
institutions involved in India's financial sector - National Stock Exchange of India Limited
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(NSE) and National Securities Depository Ltd, SHCIL (Stock Holding Corporation of India Ltd),
CARE (Credit Analysis and Research Ltd).
Federal Bank is one of India's leading private sector banks, with a dominant presence in the
state of Kerala. It has a strong network of over 1,142 branches and 1,312 ATMs spread across
India. The bank provides over four million retail customers with a wide variety of financial
products. Federal Bank is one of the first large Indian banks to have an entirely automated and
interconnected branch network. In addition to interconnected branches and ATMs, the Bank has
a wide range of services like Internet Banking, Mobile Banking, Tele Banking, Any Where
Banking, debit cards, online bill payment and call centre facilities to offer round the clock
banking convenience to its customers. The Bank has been a pioneer in providing innovative
technological solutions to its customers and the Bank has won several awards and
recommendations.
Ageas is an international insurance group with a heritage spanning more than 180 years. Ranked
among the top 20 insurance companies in Europe, Ageas has chosen to concentrate its business
activities in Europe and Asia, which together make up the largest share of the global insurance
market. These are grouped around four segments: Belgium, United Kingdom, Continental
Europe and Asia and served through a combination of wholly owned subsidiaries and
partnerships with strong financial institutions and key distributors around the world. Ageas
operates successful partnerships in Belgium, UK, Luxembourg, Italy, Portugal, Turkey, China,
Malaysia, India and Thailand and has subsidiaries in France, Hong Kong and UK. Ageas is the
market leader in Belgium for individual life and employee benefits, as well as a leading non-life
player through AG Insurance. In the UK, Ageas has a strong presence as the fourth largest player
in private car insurance and the over 50's market. Ageas employs more than 13,000 people and
has annual inflows of more than EUR 21 billion.

VISION, MISSION AND VALUES
Vision of the company
To be the leading provider of wealth management, protection and retirement solutions that meets
the needs of our customers and adds value to their lives.

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Mission of the company
To continually strive to enhance customer experience through innovative product offerings,
dedicated relationship management and superior service delivery while striving to interact with
our customers in the most convenient and cost effective manner.
To be transparent in the way we deal with our customers and to act with integrity.
To invest in and build quality human capital in order to achieve our mission.
Values of the company
Transparency: Crystal Clear communication to our partners and stakeholders
Value to Customers: A product and service offering in which customers perceive value
Rock Solid and Delivery on Promise: This translates into being financially strong,
operationally robust and having clarity in claims
Customer-friendly: Advice and support in working with customers and partners
Profit to Stakeholders: Balance the interests of customers, partners, employees,
shareholders and the community at large

ORGANIZATION STRUCTURE





















CEO
VIGNESH SHAHANE
Marketing
&
Promotion
Product
Human
Resour
ce
Finance
Under
writing
East
Zonal
Support
Manager
North
Zonal
Support
Manager
West
Zonal
Support
Manager
South
Zonal
Support
Manager
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PRODUCTS OF IDBI FEDERAL
At IDBI Federal, its our constant endeavour to create innovations that create value for our
customers. These innovations are brought to life through our wide array of products that fit the
varying financial and investment needs at different stages of life.
LIFESURANCE
CHILDSURANCE
INCOMESURANCE
TERMSURANCE
WEALTHSURANCE
LOANSURANCE
MICROSURANCE

LIFESURANCE:
Often, the first step towards a long and arduous journey is the toughest. However, once you have
taken that first stride, the rest of the journey seems easier and more enjoyable. With your
investments, it is the same approach that will ensure you build the right corpus to fulfil your
dreams for yourself and your family start small, save big!
HOW IT WORKS

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CHILDSURANCE:
Whether your child wants to be a doctor, an engineer, an MBA, a sportsman, a performing artist,
or dreams of being an entrepreneur, the IDBI Federal Childsurance Dream builder Insurance
Plan will keep you future-ready against both, changing dreams and lifes twists. It allows you to
create build and manage wealth by providing several choices and great flexibility so that your
plan meets your specific needs. However, what makes Childsurance a must-have for any parent
who is looking to make their childs future shock-proof is its powerful insurance benefits.
Childsurance allows you to protect your child plan with triple insurance benefits so that your
wealth-building efforts remain unaffected by unforeseen events and your childs future goals can
be achieved without any hindrance.
HOW IT WORKS
This second illustration below explains how the product works for a limited premium policy with
a policy term of 20 years.

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


Age Pay-out Age Pay-out
18-30 138% 47 131%
31-36 137% 48 131%
37-39 136% 49 130%
40 135% 50 130%
41 135% 51 130%
42 134% 52 128%
43 134% 53 128%
44 133% 54 127%
45 133% 55 126%
46 132%
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SWOT ANALYSIS OF IDBI FEDERAL LIFE

SWOT analysis of IDBI Federal Life Insurance represents analysing strength, weakness,
opportunities, and threat of the company which are as follows:-
Strength:-
The major strength of IDBI Federal Life is its sponsor companies which are IDBI bank,
Federal bank and Fortis. Because of its innovative ideas it is the first insurance company
to collect 100cr within five months of its commencement of business. One major strength
of IDBI Federal is its combined network of more than 1600 branches of IDBI bank and
Federal bank.
Superior customer service with huge network and innovative products
High level of customer (both internal & external) satisfaction because of its management
policy.
Large pool of technically skilled workforce with deep knowledge of insurance market.
Weakness:-
The major weakness of IDBI Federal is the constraint sectorial growth due to low
unemployment level.
Low confidence of people in private insurance company.
The corporate clients under group schemes and salary savings schemes are captured by
other major players.
Opportunities:-
Only 10% of Indian population is covered by insurance policy out of 30% insurable
population.
Due to liberalization it can operate globally.
Fast track carrier development opportunities on an industrial wide basis.
After liberalization it is expected that insurance business is roughly 400 billion rupees per
year now which shows big opportunities and market for IDBI Federal Life Insurance.
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The existing LIC and GIC, have created a large group of dissatisfied customers due to the
poor quality of service. Hence there will be shift of large number of customers for other
players.
Threats:-
Big public insurance companies like LIC, National Insurance Companies Limited,
Oriental Life Insurance etc. are the biggest threats to IDBI Federal Life Insurance.
Large potential market attracts new rivals.


CUSTOMERS
Insurance industry has the specialty of targeting every individual who is earning the only
constraint is the perception of the customer toward the insurance company. The customers for
IDBI Federal Life Insurance Co Ltd are the age group of 25-45(mainly) and children for child
insurance product aged from 3months to 17 years.

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III. CHAPTER
THEORETICAL ASPECT RELATED TO TOPIC OF THE STUDY
A. Marketing Mix at IDBI Federal Life Insurance
The term insurance marketing refers to the marketing of Insurance services with the aim
to create customer and generate profit through customer satisfaction. The Insurance Marketing
focuses on the formulation of an ideal mix for Insurance business so that the Insurance
organization survives and thrives in the right perspective.
The marketing mix is the combination of marketing activities that an organization
engages in so as to best meet the needs of its targeted market. The Insurance business deals in
selling services and therefore due weight age in the formation of marketing mix for the Insurance
business is needed.
The marketing mix includes sub-mixes of the 7 Ps of marketing i.e. the product, its
price, place, promotion, people, process & physical attraction. The above mentioned 7 Ps can be
used for marketing of Insurance products, in the following manner:

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1 - PRODUCT:
A product means what we produce. If we produce goods, it means tangible product and
when we produce or generate services, it means intangible service product. A product is both
what a seller has to sell and a buyer has to buy. Thus, an Insurance company sells services and
therefore services are their product. When a person or an organization buys an Insurance policy
from the insurance company, he not only buys a policy, but along with it the assistance and
advice of the agent, the prestige of the insurance company and the facilities of claims and
compensation. It is natural that the users expect a reasonable return for their investment and the
insurance companies want to maximize their profitability. Hence, while deciding the product
portfolio or the product-mix, the services or the schemes should be motivational. IDBI Federal
provides many products which caters to the needs of the Indian customers. IDBI Federal
products:-
CHILDSURANCE
GROUP MICROSURANCE
INCOMESURANCE
LIFESURANCE
LOANSURANCE
TERMSURANCE
WEALTHSURANCE
CHILDSURANCE
Whether your child wants to be a doctor, an engineer, an MBA, a sportsman, a
performing artist, or dreams of being an entrepreneur, the IDBI Federal Childsurance Dream
builder Insurance Plan will keep you future-ready against both, changing dreams and lifes
twists. It allows you to create build and manage wealth by providing several choices and great
flexibility so that your plan meets your specific needs. However, what makes Childsurance a
must-have for any parent who is looking to make their childs future shock-proof is its powerful
insurance benefits. Childsurance allows you to protect your child plan with triple insurance
34 | P a g e
benefits so that your wealth-building efforts remain unaffected by unforeseen events and your
childs future goals can be achieved without any hindrance.
INCOMESURANCE
IDBI Federal Incomesurance Endowment and Money Back Plan is loaded with lots of
benefits which ensure that you get Guaranteed Annual Payout along with insurance protection
which will help you to reach you goals with full confidence. Incomesurance Plan is very flexible
and allows you to customise your Plan as per your individual and familys future requirements.
Moreover it also allows you to choose Premium Payment Period, Payout Period, Payout Options
and more.
LIFESURANCE
IDBI Federal Lifesurance Savings Insurance Plan is a fixed term non-linked participating
plan that provides you the twin benefits of long-term savings and life cover. With Lifesurance
Savings, your small savings will help you realise the big dreams that you have for yourself and
your family. This plan also offers you the benefit of life cover that will provide financial security
to your family in your absence.
Despite all these tailored products there is still scope for improvement in this field. The
Group Insurance scheme is required to be promoted, the Crop Insurance is required to be
expanded and the new schemes and policies for the villagers or the rural population are to be
included. . The introduction of Rural Career Agents Scheme has been found instrumental in
inducing the rural prospects but the process is at infant stage and requires more professional
excellence. So there is lot of potential in insurance sector which is waiting to be uncorked hence
revealing to the economy the benefits of insurance industry. The policymakers are required to
activate the efforts. It would be prudent that the LIC is allowed to pursue a policy of direct
investment for rural development. Investment in Government securities should be stopped and
the investment should be channelized in private sector for maximizing profits. In short, the
formulation of product-mix should be in the face of innovative product strategy. While initiating
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the innovative process it is necessary to take into consideration the strategies adopted by private
and foreign insurance companies.

2 PLACE:
This component of the marketing mix is related to two important facets
Managing the insurance personnel, and
Locating a branch.
The management of agents and insurance personnel is found significant with the
viewpoint of maintaining the norms for offering the services. This is also to process the services
to the end user in such a way that a gap between the services- promised and services offered is
bridged over. In a majority of the service generating organizations, such a gap is found existent
which has been instrumental in making worse the image problem. The transformation of
potential policyholders to the actual policyholders is a difficult task that depends upon the
professional excellence of the personnel.
The agents and the rural career agents acting as a link, lack professionalism. The front-
line staff and the branch managers also are found not assigning due weight age to the
degeneration process. The insurance personnel if not managed properly would make all efforts
insensitive. Even if the policy makers make provision for the quality up gradation, the promised
services hardly reach to the end users.
It is also essential that they have rural orientation and are well aware of the lifestyles
of the prospects or users. They are required to be given adequate incentives to show their
excellence. While recruiting agents, the branch managers need to prefer local persons and
provide them training and conduct seminars. In addition to the agents, the front-line staff also
needs an intensive training programmed to focus mainly on behavioural management. Another
important dimension to the Place Mix is related to the location of the insurance branches.
While locating branches, the branch manager needs to consider a number of factors, such
as smooth accessibility, availability of infrastructural facilities and the management of branch
offices and premises. In addition it is also significant to provide safety measures and also factors
like office furnishing, civic amenities and facilities, parking facilities and interior office
decoration should be given proper attention.
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Thus the place management of insurance branch offices needs a new vision, distinct
approach and an innovative style. This is essential to make the work place conducive, attractive
and proactive for the generation of efficiency among employees. The branch managers need
professional excellence to make place decisions productive. IDBI Federal has around thousands
and thousands of insurance agents all over India to manage their regional customers effectively.
Also, IDBI Federal has over 1201 branches all over India which help in increasing their customer
base.
3 - PRICING:
In the insurance business the pricing decisions are concerned with:
i) The premium charged against the policies
ii) Interest charged for defaulting the payment of premium and credit facility, and
iii) Commission charged for underwriting and consultancy activities.
With a view of influencing the target market or prospects the formulation of pricing
strategy becomes significant. In a developing country like India where the disposable income in
the hands of prospects is low, the pricing decision also governs the transformation of
potential policyholders into actual policyholders. The strategies may be high or low pricing
keeping in view the level or standard of customers or the policyholders. The pricing in insurance
is in the form of premium rates.
The three main factors used for determining the premium rates under a life insurance plan
are mortality, expense and interest. The premium rates are revised if there are any significant
changes in any of these factors.
Mortality (deaths in a particular area): When deciding upon the pricing strategy the
average rate of mortality is one of the main considerations. In a country like South Africa
the threat to life is very important as it is played by host of diseases.
Expenses: The cost of processing, commission to agents, reinsurance companies as well
as registration are all incorporated into the cost of instalments and premium sum and
forms the integral part of the pricing strategy.
Interest: The rate of interest is one of the major factors which determine peoples
willingness to invest in insurance. People would not be willing to put their funds to
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invest in insurance business if the interest rates provided by the banks or other financial
instruments are much greater than the perceived returns from the insurance premiums.

4 - PROMOTION:
The insurance services depend on effective promotional measures. In a country like India,
the rate of illiteracy is very high and the rural economy has dominance in the national economy.
It is essential to have both personal and impersonal promotion strategies.
In promoting insurance business, the agents and the rural career agents play an important
role. Due attention should be given in selecting the promotional tools for agents and rural career
agents and even for the branch managers and front line staff. They also have to be given proper
training in order to create impulse buying. Advertising and Publicity, organization of conferences
and seminars, incentive to policyholders are impersonal communication. Arranging Kirtans,
exhibitions, participation in fairs and festivals, rural wall paintings and publicity drive through
the mobile publicity van units would be effective in creating the impulse buying and the rural
prospects would be easily transformed into actual policyholders.
IDBI Federal has also adopted various promotional strategies like:
Commercial Ads
Print Ads
Events
Personnel selling
Word of mouth
Viral marketing
They have brought out many interesting and humorous ads of their products such as
Lifesurance, Incomesurance, Childsurance etc which has got very good response from
customers. They have also conducted events with an aim to create interest around financial
planning with Life Insurance at branches which was critical to getting prospects interested in
IDBI Federal products.
Building an engagement process around the solution being offered gives an additional
boost to this cause. Spelling Bee was a specially created spelling contest created to connect with
children. The philosophy of this module hinged around making learning fun. The event was
timed to coincide with Childrens day in November 2010. The spellings to be completed
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revolved around visual and verbal cues to words related to saving, money and finance and aimed
at teaching children the value of money early in life.
The engagement started with the spelling contest for kids and gave their IRMs a natural
opening for a discussion with parents about financial planning for their childrens future needs
like education. This is a sort of channel marketing which IDBI Federal had adopted to create
awareness as well as to educate the future generation about the company and the importance of
saving.
Also IDBI Federal involved them in developing their business by joining hands with
SAMHITA, a community development organization based out of Bhopal which works towards
bringing financial literacy to the underprivileged population in Madhya Pradesh. They believe
that such financial literacy among the under banked population will help bring a holistic change
in the way people perceive and understand financial products and their utility at various stages in
their life.
This will ultimately help bring them closer to financial inclusion. They started this
journey with SAMHITA in 2008 by providing low cost group coverage female members of
SAMHITA under Group Microsurance. This way they have covered 86,721 lives for a sum
assured of Rs. 66.7 crores since then. They also offer the protection of Termsurance Grameen
Suraksha to the family members of these people.
IDBI Federal Termsurance Grameen Suraksha is especially designed to make life
insurance affordable to rural customers with options of four convenient premium slabs of Rs
49.08, Rs 98.17, Rs 147.25 and Rs 196.33 (inclusive of taxes) with corresponding sums assured
of Rs 5,000, Rs 10,000, Rs 15,000 and Rs 20,000.
In this way IDBI Federal has made intelligent moves to capture the rural market which
has lot of potential and promise in the future. Promotional strategies are very important for any
intangible product especially like life insurance and financial savings where people should be
given complete education about such products because of which all insurance companies take
due care while formulizing their promotional strategies.
5 PEOPLE:
Understanding the customer better allows in designing appropriate products. Being a
service industry which involves a high level of people interaction, it is very important to use this
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resource efficiently in order to satisfy customers. Training, development and strong relationships
with intermediaries are the key areas to be kept under consideration. Training the employees, use
of IT for efficiency, both at the staff and agent level, is one of the important areas to look into.
IDBI Federal has created various financial products which have been tailored according to the
needs of the customers. They have over thousands of sales personnel who are trained efficiently
to bridge in the gap between the customers and the company.
6 - PROCESS:
The process should be customer friendly in insurance industry. The speed and accuracy
of payment is of great importance. The processing method should be easy and convenient to the
customers. Instalment schemes should be streamlined to cater to the ever growing demands of
the customers. IT & Data Warehousing will smoothen the process flow. IT will help in servicing
large number of customers efficiently and bring down overheads. Technology can either
complement or supplement the channels of distribution cost effectively. It can also help to
improve customer service levels. The use of data warehousing management and mining will help
to find out the profitability and potential of various customers product segments.
IDBI Federal cushions their customers with their services in such a way that the whole
process involved is simple and convenient for them. They have trained personnel to convert the
prospective clients to net worthy customers. The whole process starts off with meeting the
prospect client and making them understand the product and finally closing the deal .They also
categorize their high net worth customers from others. The customers are also given a set of
choices for their mode of payment. They also get the forms and bonds delivered to their doorstep
thus making the whole buying process very simple and tension free.
7 - PHYSICAL DISTRIBUTION:
Distribution is a key determinant of success for all insurance companies.
Today, the nationalized insurers have a large reach and presence in India. Building a
distribution network is very expensive and time consuming. If the insurers are willing to take
advantage of Indias large population and reach a profitable mass of customers, then new
distribution avenues and alliances will be necessary. Initially insurance was looked upon as a
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complex product with a high advice and service component. Buyers prefer a face-to-face
interaction and they place a high premium on brand names and reliability. As the awareness
increases, the product becomes simpler and they become off-the-shelf commodity products.
Today, various intermediaries, not necessarily insurance companies, are selling insurance. For
example, in UK, retailer like Marks & Spencer sells insurance products. The financial services
industries have successfully used remote distribution channels such as telephone or internet so as
to reach more customers, avoid intermediaries, bring down overheads and increase profitability.
A good example is UK insurer Direct Line. It relied on telephone sales and low pricing. Today, it
is one of the largest motor insurance operators. Technology will not replace a distribution
network though it will offer advantages like better customer service. Finance companies and
banks can emerge as an attractive distribution channel for insurance in India. In Netherlands,
financial services firms provide an entire range of products including bank accounts, motor,
home and life insurance and pensions. In France, half of the life insurance sales are made
through banks. In India also, banks hope to maximize expensive existing networks by selling a
range of products. It is anticipated that rather than formal ownership arrangements, a loose
network of alliance between insurers and banks will emerge, popularly known as bancassurance.
Another innovative distribution channel that could be used is the non-financial organizations. For
an example, insurance for consumer items like fridge and TV can be offered at the point of sale.
This increases the likelihood of insurance sales. Alliances with manufacturers or retailers of
consumer goods will be possible and insurance can be one of the various incentives offered.
IDBI Federal has built a vast network of distributors and agents because a face to face interaction
is mostly preferred by the customers.
Also, they have formed alliances with IDBI Bank and Federal Bank through which they have
been able to tap the bank customers too.

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B. Promotional Strategies at IDBI Federal Life Insurance

Promotional strategies are very important especially in a service oriented sector because
it deals with intangible products. Insurance is a field where much effort is required in making
people understand about the product and educate them about its features. Every insurance
company put their best efforts in formulizing promotional strategies which attract people to their
product and company. Push strategy is followed in insurance industry .This is the strategy used
when the manufacturer uses its sales force and trade promotion money to induce intermediaries
to carry, promote and sell the product to end users.

Consumers today value information. We live in the information age, and the savvy,
faithful customer is one that has knowledge about the products and services offered. The next
42 | P a g e
most valuable insurance marketing tips include the salesperson being the source of financial
information for the client. Newsletters, email updates, and notifications will keep customers
informed about issues surrounding insurance and other financial programs. There are creative
ways to approach these insurance marketing strategies. Newsletters could include contests,
special interest areas for kids, safety concerns, and economic updates. There could even be an
area for customer spotlights, or encouraging testimonies of how the customers were helped
through the office. Of course, all new products and services should be showcased in any
informative hard copy or email communication.
There are insurance marketing strategies that can take any insurance agency from
mediocre to success when utilized correctly. Breaking into a new business climate and finding
customers is hard work, but when equipped with innovative ideas and proven techniques,
financial markets sales personnel can become extremely successful. Getting an education and
training is very important in every industry, sales is certainly no exception. Those selling
insurance will want begin their careers with the very best tools of the trade and those with
already established businesses that are in need of a motivational push will also gain great
benefits by researching and learning new insurance marketing tips. Key insurance marketing
strategies will always include an in-depth review of the value of follow-up. All successful sales
agents understand that consumers need to be contacted again and again in order to make a vital
connection. Also, great follow-up protocol lets the potential customer know that good, solid
customer service will be part of the over-all package. Follow-up says to a consumer that they are
important, thought of, and that their business would be greatly appreciated. The consumer today
not only wants a product at a great price, they also want a personal relationship, especially when
it comes to financial system sales, such as various insurances. Letters and phone calls are gentle
reminders that the salesperson intends to serve with his or her whole heart. And, once a sale is
secured, a thank you call is strongly advised.
Those in this industry will also want to keep constant contact with existing customers,
too. The competition is fierce today, and no one wants to lose a customer to the next guy or
service to come along. Clients that have had no contact for a period of time loose loyalty. Keep
birthday and anniversary postcards going into the home on a regular basis. Keeping a name
before a consumer will keep a name in their conscience. A small gift or token of appreciation is
also a means for keeping customers loyal. Christmas goody packages or dinner out certificates
43 | P a g e
will leave lasting impressions on consistent customers. These are few necessary tips which will
help any insurance company to take its business to the path of success.
Community marketing is another great way to get advertising and name recognition.
Successful networkers join local community agencies, such as the local Chamber of Commerce,
and sign up to help in activities. This is a great way to get name and photographs listed in
newspaper articles and other media avenues. Also, charity work cannot only be greatly beneficial
to the community and those served, but may also open doors to communicating with other
volunteers, who could be potential clients. People enjoy using services extended by like-minded
providers. Creating a sense of community is extremely important to insurance marketing
strategies.
There are other insurance marketing tips and resources available and insurance agents
may find investigating several options to be beneficial. Many marketing support companies offer
email or publication updates, sharing information and techniques that are proven to bring in
success. Agents may want to browse the Internet and find a few different insurance marketing
tips programs to choose from. Not only will these resources help keep salespersons abreast of the
latest strategies, but these support programs can also create a sense of community and an
opportunity for agents to share their own struggles and challenges with others in the field.
Perhaps the most important insurance marketing tips are tips that speak of integrity and
honest business dealings. There are so many scams in various industries today; consumers are
looking for products and services that they can trust. Building trust will be crucial to keeping a
business growing in a stable direction. The most effective and followed modes of communication
are:
ADVERTISING:
Advertising reaches geographically dispersed buyers it can build up a long term image
for a product or trigger quick sales. Certain forms of advertising such as television can require a
large budget were as other forms such as newspapers do not. Just the presence of advertising
might have an effect on sales. Consumers might believe that a heavily advertised brand must
offer good value .Because of the many forms and uses of advertising it is worth wise to note
few observations
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Pervasiveness: Advertising permits the seller to repeat a message many times it also
allows the buyer to receive and compare the messages of various competitors .large scale
advertising says something positive about the sellers size, power and success.
Amplified Expressiveness: Advertising provides opportunities for dramatizing the
company and its products through the artful use of print, sound and color.
I mpersonality: the audience does not feel obligated to pay attention or respond to
advertising. Advertising is a monologue in front of, not a dialog with the audience.
They have brought out many interesting and humorous ads of their products such as
Wealthsurance, Incomesurance, Lifesurance, Childsurance etc which has got very good response
from customers.
a) SALES PROMOTION:
Companies use sales promotion tools like coupons, contest, premiums, and the like to
draw a stronger and quicker buyer response, including short run effects, such as highlighting,
product offers and boosting sagging sales. Sales promotion tools offer three distinctive benefits:
Communication: they gain attention and may lead the customer to the product
I ncentive: They incorporate some concession, inducement, or contribution that gives
value to the customer.
I nvitation: They include a distinct invitation to engage in the transaction now.
This mode of communication is mostly followed by insurance companies because this sector
deals with a product which requires the full knowledge of the customer.
b) PUBLIC RELATIONS AND PUBLICITY:
Marketers tend to underuse public relations yet a well thought out program coordinated
with the other communication mix elements can be extremely effective, especially if a company
needs to challenge consumers misconceptions. A company can generate brand awareness either
by creating good will or negative buzz to capture the attention of customers. The appeal of public
relations and publicity is based on three distinctive qualities:
High Credibility: News, stories and features are more authentic and credible to readers
than ads.
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Ability to catch buyers off guard: Public relations can reach prospects that prefer to
avoid salespeople and advertisements.
Dramatization: Public relations have the potential for dramatizing a company or product.

c) EVENTS AND EXPERIENCES:
Events and experiences reach out to the customer and can be used for brand- building as
well as selling products. There are many advantages to events and experiences.
Relevant: A well-chosen event or experience can be seen as highly relevant because the
customer gets personally involved.
I nvolving: Given their live, real time quality, events and experiences are more actively
engaging for customers.
I mplicit: Events are an indirect soft sell.
IDBI Federal have also conducted events with an aim to create interest around financial
planning with Life Insurance at branches which was critical to getting prospects interested in
their products. Building an engagement process around the solution being offered gives an
additional boost to this cause. Spelling Bee was a specially created spelling contest created to
connect with children. The philosophy of this module hinged around making learning fun. The
event was timed to coincide with Childrens day in November 2010. The spellings to be
completed revolved around visual and verbal cues to words related to saving, money and finance
and aimed at teaching children the value of money early in life. The engagement started with the
spelling contest for kids and gave their IRMs a natural opening for a discussion with parents
about financial planning for their childrens future needs like education. This is a sort of channel
marketing which IDBI Federal had adopted to create awareness as well as to educate the future
generation about the company and the importance of saving.
Also IDBI Federal involved them in developing their business by joining hands with
SAMHITA, a community development organization based out of Bhopal which works towards
bringing financial literacy to the underprivileged population in Madhya Pradesh. They believe
that such financial literacy among the under banked population will help bring a holistic change
in the way people perceive and understand financial products and their utility at various stages in
46 | P a g e
their life. This will ultimately help bring them closer to financial inclusion. They started this
journey with SAMHITA in 2008 by providing low cost group coverage female members of
SAMHITA under Group Microsurance. This way they have covered 86,721 lives for a sum
assured of Rs. 66.7 crores since then. They also offer the protection of Termsurance Grameen
Suraksha to the family members of these people. IDBI Federal Termsurance Grameen Suraksha
is especially designed to make life insurance affordable to rural customers with options of four
convenient premium slabs of Rs 49.08, Rs 98.17, Rs 147.25 and Rs 196.33 (inclusive of taxes)
with corresponding sums assured of Rs 5,000, Rs 10,000, Rs 15,000 and Rs 20,000.

d) DIRECT AND INTERACTIVE MARKETING:
Direct and interactive marketing takes many forms over the phone, online or in person. They
share three distinctive characteristics. Direct and interactive marketing messages are:
Customized: The message can be prepared to appeal to the addressed individual.
Up- to date: The message can be prepared very quickly.
I nteractive: the message can be changed depending on the persons response.

e) WORD-OF- MOUTH MARKETING:
Word of mouth marketing also takes many forms, online or offline. Three noteworthy characters
are:
Credible: Because people trust others they know and respect, word of mouth can be
highly influential.
Personal: Word of mouth can be very intimate dialogue that reflects personal facts,
opinions and experiences.
Timely: It occurs when people want it to and when they are most interested, and it often
follows noteworthy or eventful events or experiences.





47 | P a g e
PERSONAL SELLING:
Personal selling is the most effective tool at later stages of the buying process,
particularly in building up buyer preference, conviction and action. Personal selling has three
distinctive qualities:
Personal interaction: Personal selling creates an immediate and interactive episode
between two or more persons. Each party is able to observe the others reaction.
Cultivation: Personal selling also permits all kinds of relationships to spring up, ranging
from a matter of fact selling relationship to a deep personal friendship.
Response: The buyer may feel under some obligation for having listened to the sales talk.
IDBI Federal has over thousands of sales personnel all over India to help them with their sales
thereby clarifying the doubts of any customer then and there.

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C. Promotional Strategies Adopted By IDBI Federal

Following are the main ways in which IDBI Federal life Insurance company ltd promotes
its products/services and creates awareness in the market.
NEWSPAPER:
IDBI Federal has attained notice through many articles and advertisements published in
various national and regional newspapers in India like the Economic Times, Times of India, The
Hindu , Samachar Jagat, Vir Arjun, Meghalaya Guardian etc. IDBI Federal spends around Rs
1040 per sq.cm for promotional activities through newspapers. They position the ads and articles
in such a way that it catches the eye of the reader as soon as they start reading the newspaper.
HOARDINGS:
IDBI Federal has also tried making their potential customer aware of their products and
policies through billboards and hoardings by positioning them in strategic locations. As of now,
the total number of hoardings which are put up in Hyderabad region counts to a good 17 number.
The total expenses spent by the company for this promotional activity is Rs 4 lakh.
PAMPHLETS:
Pamphlets are distributed across India at least 5 times in a month without any cost. Its
done to create maximum awareness about the products/services.
MAGAZINES:
There is no specific magazine in which advertisement is given. Its given in magazines
depending upon their sales and reputed magazines like Outlook, Money etc. The advertisement is
given every month at least once in any magazine.
TELEVISION:
Mainly, the advertisement is shown on cricket channels, Star channels. The main
promotions were done during FEB & MARCH to:
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Highlight the tax benefits
To combat competition as all the insurance companies would advertise during this time at
a great frequency. Also the company will soon start displaying their advertisements on
Satellite TV like SUN network, etc.
DISTRIBUTORS:
A strong network of distributors and parent advisors also helps a lot in promoting
products/services of IDBI Federal by word of mouth. A Viral campaign is also run on the
Internet by wherein flash videos of working of products are explained in a very humorous
manner.
LOCAL EVENTS:
The overall costs associated with such events totals to Rs. 2,00,000 per annum such
events are mainly conducted in Apartments, Schools, etc. Building an engagement process
around the solution being offered gives an additional boost to this cause. Spelling Bee was a
specially created spelling contest created to connect with children. The engagement started with
the spelling contest for kids and gave their IRMs a natural opening for a discussion with parents
about financial planning for their childrens future needs like education. This is a sort of channel
marketing which IDBI Federal had adopted to create awareness as well as to educate the future
generation about the company and the importance of saving.
Also IDBI Federal involved them in developing their business by joining hands with
SAMHITA, a community development organization based out of Bhopal which works towards
bringing financial literacy to the underprivileged population in Madhya Pradesh. They believe
that such financial literacy among the under banked population will help bring a holistic change
in the way people perceive and understand financial products and their utility at various stages in
their life. This will ultimately help bring them closer to financial inclusion.

50 | P a g e
IV. CHAPTER

DATA ANALYSIS & INTERPRETATION

An analytical review of the effectiveness of promotional strategy of IDBI Federal
The survey was administered to 101 respondents through google doc and
personal meeting about the insurance policy. The questionnaire method to find out
the effectiveness of promotional strategy of IDBI Federal Life Insurance co. ltd
was used. The main objective of this study is to create awareness and identifying
which the strongest promotional strategy to be used by IDBI Federal.
This survey has been conducted in Hyderabad and in Lucknow. With the
help of charts some graphs and tables are shown below to understand the
conducted research.



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Chart no.: 1
Age group of the respondents
Table no.: 1

Age group years Respondents Percentage
Below 25 14 14%
25 - 30 45 45%
30 - 35 33 33%
Above 35 9 9%
Total 101 100%
Figure no.: 1



INTERPRETATION- From the graph, it is clear that 45% respondents are in the age
group of 25-30 years. 33% respondents are in the age group of 30-35 years
however 14% respondents are in the age group of below 25 years and only 9%
respondents are above 35 years.

Below 25 25 - 30 30 - 35 Above 35
Percentage 14% 45% 33% 9%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
52 | P a g e
Chart no.: 2
Gender of the respondents

Table no.: 2

Gender Respondents Percentage
Male 72 71%
Female 29 29%
Total 101 100%

Figure no.: 2



INTERPRETATION: - Out of total number of people surveyed 71% are male and 29% are
female. So it clear that company should more focus on male people,
Male
71%
Female
29%
Gender of the respondents
53 | P a g e
Chart no.: 3
Marital status of the respondents

Table no.: 3

Marital status Respondents Percentage
Married 66 65%
Un-Married 35 35%
Total 101 100

Figure no.: 3



INTERPRETATION: - In the above table we can see that out of the total respondents 65% are
married and 35% are unmarried. Therefore company should target married people.

Married , 65%
Un-Married,
35%
Marital status of the respondents
54 | P a g e
Chart no.: 4
Education Qualification of the respondents

Table no.: 4

Education Qualification Respondents Percentage
Degree 19 19%
Post Graduate 72 71%
M.Phil. 8 8%
Other 2 2%
Total 101 100%

Figure no.: 4



INTERPRETATION: - In the above table the respondents have been segmented on the basses
of their education qualification in which majority i.e. 71% are post-graduate where as 19% are
degree holders, 8% are M.Phil. and 21% are having other qualification.

19%
71%
8%
2%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Degree Post Graduate M.Phil. Other
Education Qualification
55 | P a g e
Chart no.: 5
Job Experience of the respondents

Table no.: 5

Experience Respondents Percentage
Less than 1 year 11 11%
1-5 years 33 33%
5-10 years 40 40%
Above 10 years 17 17%
Total 101 100%

Figure no.: 5



INTERPRETATION: - In the above table the respondents have been segmented on the basses
of their job experience in which 40% have experience of 5-10 years, 33% are having 1-5 years
experience, 17% are have above 10 years experience, and 11% have less than 1 year experience.

11%
33%
40%
17%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Less than 1 year 1-5 years 5-10 years Above 10 years
Job Experience
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Chart no.: 6
Income Slab of the respondents

Table no.: 6

Income Slab Respondents Percentage
Less than 2 lacs 10 10%
2 to 4 lacs 13 13%
4 to 6 lacs 28 28%
Above 6 lacs 50 50%
Total 101 100%

Figure no.: 6



INTERPRETATION: - In the above table the respondents have been segmented on the basses
of their income in which 50% of the respondents are having above rupees 6 lacs per annum
income. 28% have income of rupees 4-6 lacs per annum income, 13% have rupees 2-4 lacs per
annum income, and 10% have less than rupees 2 lacs per annum income.

10%
13%
28%
50%
0%
10%
20%
30%
40%
50%
60%
Less than 2 lacs 2 to 4 lacs 4 to 6 lacs Above 6 lacs
Income Slabe
57 | P a g e

Chart no.: 7
Have you heard about IDBI Federal life insurance Co.Ltd?

Table no.: 7

Awareness about the brand Respondents Percentage
Yes 88 87%
No 13 13%
Total 101 100%

Figure no.: 7



INTERPRETATION: - From the above table we can find that 87% of the respondents are
aware about IDBI Federal Life Insurance Co. Ltd. whereas 13% are not aware.
Yes
87%
No
13%
Awarness about the IDBI Federal
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Chart no.: 8
How did you come to know about IDBI Federal life insurance Co.Ltd?

Table no.: 8

Source of awareness about brand Respondents Percentage
TV Advertisement 6 6%
You tube 5 5%
Newspaper 14 14%
Bill Board / hoardings 5 5%
Agents 31 31%
Friends 23 23%
Other 17 17%
Total 101 100%

Figure no.: 8



INTERPRETATION: - From the above table we can find that majority of the respondents
came to know IDBI Federal Life Insurance through agents and friend, whereas YouTube and bill
board / hoardings contributed least as the source of awareness about IDBI Federal Life
Insurance.
6%
5%
14%
5%
31%
23%
17%
TV Advertisement
You tube
Newspaper
Bill Board / hoardings
Agents
Friends
Other
Source of awerness for IDBI Federal
59 | P a g e
Chart no.: 9
Did you enquire more about the product after you came to know about it?

Table no.: 9

Enquire about the product Respondents Percentage
Enquired 56 55%
Un-Enquired 45 45%
Total 101 100%

Figure no.: 9



INTERPRETATION: - In the above table we can find that 55% of the respondents enquired
about product of IDBI Federal Life Insurance whereas as 45% of respondents did not enquire.
Enquired
55%
Un-Enquired
45%
Enquire about the product
60 | P a g e
Chart no.: 10
Have you seen the advertisement of IDBI Federal?

Table no.: 10

Awareness of the advertisement Respondents Percentage
Aware 32 32%
Un- Aware 69 68%
Total 101 100%

Figure no.: 10



INTERPRETATION: - From the above table we can find that 68% of the respondents are not
aware of the advertisement of IDBI Federal Life Insurance, whereas 32% are aware. So company
should put more focus on advertisement.

Aware
32%
Un- Aware
68%
Awareness of the advertisement
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Chart no.: 11
Do you feel these ads educate people about the product?

Table no.: 11

Impact of advertisement on
production education
Respondents Percentage
Agree 65 64%
Disagree 36 36%
Total 101 100%

Figure no.: 11



INTERPRETATION: - From the above table we can find that 64% of the respondents are
agreed that these advertisements educate people about the product whereas 36% of the
respondents are disagree.

Agree
64%
Disagree
36%
Impact of advertisment on production
education
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Chart no.: 12
What is the first thing which comes in your mind when you think of IDBI Federal?

Table no.: 12

Factors affecting recall Respondents Percentage
IDBI bank 47 46%
LOGO 6 6%
Advertisement 15 15%
Services Provided 16 16%
Products 14 14%
Other 3 3%
Total 101 100%

Figure no.: 12



INTERPRETATION: - From the above table we can find that majority of the respondents
recalls IDBI Bank when they think about IDBI Federal Life Insurance. Whereas least number of
respondents recalls logo or others.

46%
6%
15%
16%
14%
3%
Factors affacting recall of IDBI Federal Life
Insurance
63 | P a g e
Chart no.: 13
Which other insurance company you know?

Table no.: 13

Awareness of other
brand
Respondents Percentage
LIC 40 39%
ICICI Prudential 15 15%
Bajaj Allianz 11 11%
HDFC Standard Life 14 14%
Bharti Axa 2 2%
Birla Sun Life 5 5%
SBI Life 9 9%
Other 5 5%
Total 101 100%

Figure no.: 13



INTERPRETATION: - From the above table we can find that majority of the respondents are
aware about LIC among other insurance company. Whereas least number of respondents knows
about Bharti Axa, Birla Sun Life and other insurance company.


39%
15%
11%
14%
2%
5%
9%
5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
LIC ICICI
Prudential
Bajaj
Allianz
HDFC
Standard
Life
Bharti Axa Birla Sun
Life
SBI Life Other
Awareness of Other Insurance company
64 | P a g e
Chart no.: 14
How did you come to know of these insurance company ?

Table no.: 14

Source of awareness about
other insurance company
Respondents Percentage
TV Advertisement 31 30%
Newspaper Advertisements 16 16%
Bill Board Hoardings 13 13%
Word of Mouth 16 16%
Sales Representatives 18 18%
Friends 6 6%
Other 1 1%
Total 101 100%

Figure no.: 14



INTERPRETATION: - From the above table we can find that majority of the respondents
came to know about other insurance companies through TV advertisement whereas least no of
respondents came to know through friends and other sources.

30%
16%
13%
16%
18%
6%
1%
TV Advertisement
Newspaper Advertisements
Bill Board Hoardings
Word of Mouth
Sales Representatives
Friends
Other
Source of awareness
65 | P a g e
Chart no.: 15
Main consideration that a customer looks while purchases an insurance policy?

Table no.: 15

Main consideration
while purchase
Respondents Percentage
TAX 14 14%
Protection 30 29%
Investment 17 17%
Saving 30 30%
Pension 10 10%
Total 101 100%

Figure no.: 15



INTERPRETATION: - From the above table we can find that majority of the respondents
consider saving and protection while purchasing of insurance policies, whereas least number of
respondents consider pension.
14%
29%
17%
30%
10%
TAX Protection Investment Saving Pension
Main consideration while purchase
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Chart no.: 16
What type pf plan you have?

Table no.: 16

Type of plan that
respondents have
Respondents Percentage
Lifesurance 38 37%
Incomesurance 18 18%
Childsurance 22 22%
Wealthsurance 19 19%
Other 4 4%
Total 101 100%

Figure no.: 16



INTERPRETATION: - From the above table we can find that 37% of the respondents have life
insurance, 22% have child insurance, 19% have wealth insurance, 18% have income insurance
and rest 4% of the respondents have other type of insurance.


37%
18%
22%
19%
4%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Lifesurance Incomesurance Childsurance Wealthsurance Other
Type of plan
67 | P a g e
V. CHAPTER
FINDINGS & SUGGESTIONS
After analysis it is found that,
Television for entertainment and gaining information. So it is the best media for
promotion.
People dont give more importance for the advertisements while compared to brand, tax
benefit, death benefit, security and low premium.
The promotional efforts and word of mouth is most influencing while compared to
internet.
The unmarried people are actually not interested to take insurance. They wanted to invest
their money in other fields like buying a house, bike, buildings, and real-estate etc. They
are even ready to take risk for more earnings.
The married peoples are interested in insurance for the benefit of their partner as well
as their children and medical expenses. Generally educated people understand easily
so most of graduate clearly understand the benefits of insurance policies.
So IDBI Federal Life Insurance Corporation Limited can develop a new policy by
targeting the unmarried people.
IDBI have to increase their promotional activities in such a way that even unskilled
persons understand the importance of their Insurance add value to their customer.
The companys advertisement should be more in Local TV channel and News Paper.
The company should be open more branches in, zonal areas.
Hoardings at prime areas in recommended.
In rural and tribal areas enormous promotional activities have to be taken for bringing the
awareness regarding different types of insurance and their uses. IDBI Federal Life
Insurance should develop promotional activities in such a way that it should reach to the
tribal and interior areas in an easy and understandable manner. And it has to increase its
68 | P a g e
promotional activities in tribal area. In rural and tribal areas they have to use a different
type of promotion, to make them understand the various policies and their benefits.
Most of the insured people select policies based on the agents advice. Company should
advertise about their policies, as the agents suggest the policies that fetch more
commission to them, and this creates a negative attitude among the customers.
Irrespective of the occupation, age, marital status, caste, religion and educational
qualification everyone has to feel the need of life insurance. Hence the company should
bring awareness about the insurance and its importance and need. The unfavorable
feeling of illiterates, daily wage workers etc., can be washed out by educating the
households extensively. IDBI Federal should create awareness about insurance among
people. Most of the uninsured have negative attitude as they dont have knowledge about
insurance. Generally insurance is considered as only for high income people. This notion
must be changed, through social marketing among the low income people.

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REFERENCES

Literatures from different journals

1
Garg, M.C.& Verma A.2010. An empirical analysis of the marketing mix in the Life
Insurance Industry in India. The IUP journal of management research .Vol.9. pp07-20.

2
Abdalelah S. Saaty A 2011. Factors Critical in Marketing Strategies of Insurance
Companies in Saudi Arabia. The International Journal of Marketing Studies. Vol.3.
pp104-122.

3
DAndrea & Schleicher A 2006. The role of promotions and other factors affecting
overall store price image in Latin America. The International Journal of Retail &
Distribution Management Vol. 34 No. 9, 2006. pp. 688-700.

4
P Venugopal A 2010. Attitude of Insured on Agents and Promotional Activities of Life
Insurance Companies. Drishtikon: A Management Journal Vol. 1 no. 2. 2010. pp. 369-
394.

5
Shameem B. & Dr. Gupta A 2012. Marketing Strategies In Life Insurance Services.
International Journal of Marketing, Financial Services & Management Research Vol.1
Issue 11, November2012. pp132-141.
Internet Sources:
http://www.irda.gov.in/Defaulthome.aspx?page=H1
https://www.idbifederal.com/Pages/home.aspx
http://www.scribd.com/search?query=idbi+federal+life+insurance
http://www.articlesbase.com/find-articles.php?q=idbi+federal+life+insurance
http://www.lifeinscouncil.org/
http://www.ibef.org/industry/insurance-sector-india.aspx



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ANNEXURE
Questionnaire
An analytical review of the effectiveness of promotional strategy of
IDBI Federal
This study attempts to understand your perception on promotional strategy and is purely for an
academic purpose only. It is not intended to by publish anywhere. Your cooperation will be
appreciated. Thanking you in advance!

Q.1. Name ______________________
Q.2. Age
Below 25 years 30-35 years
25-30 years Above 35 years
Q.3. Sex
Male Females
Q.4. Married
Yes No
Q.5. Educational qualification
Degree Post Graduate
M.Phils.
Q.6. Experience
Less than 1 year 1-5 years
5-10 years Above 10 years
Q.7. Income
Less than 2 lacs 2 to 4 lacs
4 to 6 lacs Above 6 lacs
Q.8. Have you heard about IDBI Federal life insurance Co.Ltd?
Yes No
Q.9. How did you come to know about IDBI Federal life insurance Co.Ltd?
TV Advertisement You tube
Newspaper Bill Board / hoardings
Agents Friends
Others please specify__________
Q.10. Did you enquire more about the product after you came to know about it?
Yes No
Q.11. Have you seen the advertisement of IDBI Federal
Yes No
If yes specify the advertisement you have seen and rate them according to the example:
Excellent (5) , Good (4), Average (3), poor(2) , worst (1)
Incomesurance Lifesurance
Wealthsurance Childsurance

Q.12. Do you feel these ads educate people about the product?
Yes No


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Q.13. What is the first thing which comes in your mind when you think of IDBI Federal?
IDBI bank LOGO
Advertisement Services Provided
Products Others please specify__________
Q.14. Which other insurance company you know?
LIC Bharti Axa
SBI Life National Insurance
HDFC ICICI
Bajaj Allianz Others please specify_________
Q.15. How did you come to know of these insurance company ?
TV Advertisement Newspaper Advertisements
Bill Board Hoardings Word of Mouth
Sales Representatives Friends
Others please specify________
Q.16. Main consideration that a customer looks while purchases an insurance policy?
TAX Protection
Investment Saving
Pension
Q.17. What type pf plan you have
Lifesurance Incomesurance
Childsurance Wealthsurance
Other please specify
Q.18. According to you the purpose of insurance is?
Pre matured death Living too long
Child future Wealth creation
Tax saving
Q.19. Any suggestions for IDBI Federal life Insurance Co.Ltd.




Q.20. Please give reference of two people who might be in insurance?
A. Name.
Address.
B. Name
Address..

Date___________ ____________

Signature