CHAPTER-1

INTRODUCTION TO INSURANCE

1.1 INTRODUCTION: INSURANCE SECTOR In law and economics, insurance is a form of risk management preliminary used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, form one entity to another, in exchange of payment. An insurer is the company selling the insurance; an insured or the policyholder is the person or the entity buying the insurance policy. The insurance rate is the factor used to determine the amount to be charged for certain amount of insurance coverage, called the premium. The transaction involves the insured assuming a guaranteed and known relatively small loss in the form of payment to the insurer in exchange for the insurer's promise to compensate (indemnify) the insured in the case of a large, possibly devastating loss. The insured receives a contract called the insurance policy which details the conditions and circumstances under which the insured will be compensated.

1.2 HISTORY OF INSURANCE Historians believe that insurance first developed in Sumer and Babylonia. The merchants & traders of these societies transferred & pooled their money to protect themselves from pirates. In the 18th century BC, Babylonian king Hammurabi developed a code of law known as the code of specific rules governing the practices of early risk-sharing activities. Insurance developed during the 1700s in the North American colonies. In 1730, Benjamin Frank contributed for the Insurance of Houses from Loss by fire. The company collected contributions & this money went into an investment fund. Interest on this fund went towards paying claims dividends to those who contributed money. The Industrial Revolution in the US, in the early & mid 1800s prompted dramatic group. During this time, many companies were establishes to sell life insurance
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policies & annuities. Several shared profits among policyholders, also developed. In addition, some life insurance companies charged premiums according to age of people & health.

1.3 INSURANCE: DEFINATION Insurance is a legal contract that protects people from the financial costs that result from loss of life, loss of health, lawsuits, or property damage. Insurance provides a means for individuals & society to cope up with some of the risks faced in every body.

1.4 NEED FOR INSURANCE Risk is the situation in which some of loss is possible. The loss must be: Financial, such as to secure your childrens future you take a protection plan. Physical, such as an injury health. Material, such as a wrecked car, a burned house, or a stolen diamond etc. Risk is a part of life. The uncertainty surrounding potential losses is known as Risk. Insurance offers a way for people, thereby, reducing the risks faced by a group. People pay to buy insurance coverage (protection from risk). In exchange, all policyholders (people any who own insurance policies) receive a promise that the group of policyholders as represented by the insurance organization will pay when any policyholder experience kind of loss. Insurance is device, which guarantees an individual against loss. Against that loss reimbursement is made from a fund to which many individuals exposed to the same risk have contributed certain specified amounts, called Premiums. Payment for an individual loss, dividend among many, does not fall heavily on the actual loser. The essence of the contract of insurance, called a policy, is mutuality.

The entity whose risk is transferred which may be an individual or association of any type, including a government or government agency is called the insured. The entity that accepts the risk is called the insurer and the agreement between the two by which the risk is transferred is called the policy. This is a legal contract that sets out exactly the terms and conditions of the coverage. The fee paid by the insured to the insurer for assuming the risk is called the premium. This is usually determined by the insurer to fund estimated future claims paid, administrative costs, and profit.

1.5 IMPORTANCE OF INSURANCE Insurance benefits society by allowing individuals to share the risks faced by many people. But it also serves many other important economic & societal functions. Insurance provides the capital that communicates need to quickly rebuild & recover economically from natural disasters. Insurance itself has become a significant economic force in most of the industrialized countries. Businessmen buy insurance to cover their employees against work related injuries & health problems. They also insure their assets against any kind of wear and tear by natural forces & forcibly. Depending on the type of insurance, redistribution can take place anywhere from a month to many decades. Because of this delay between collecting & paying out funds, insurance companies invest their funds to bring extra revenue. Such investment help business & government finance their operations, & few profits from these investments support the operation of insurance companies.

1.6 TYPES OF INSURANCE Insurance can be divided into three categories: a. Life Insurance b. General Insurance c. Health Insurance
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Life insurance is a contract for payment of a sum of money to the person assured (or failing him/her, to the person entitled to receive the same) on the happening of the event insured against. Usually the contract provides for the payment of an amount on the date of maturity or at specified intervals or at unfortunate death. The contract also provides for payment of premium periodically to the corporation by the assured. General insurance include many areas of insurance like marine, motor, engineering, health, fire, etc. the contract provides for the payment of an amount on the happening of some contingency. These types of contract are annual in nature. Health Insurance policies by the National Health Service in the United Kingdom (NHS) or other publicly-funded health programs will cover the cost of medical treatments. Dental insurance, like medical insurance, is coverage for individuals to protect them against dental costs. In the U.S. and Canada, dental insurance is often part of an employer's benefits package, along with health insurance.

1.7 THE INSURANCE SECTOR IN INDIA Prior to 1999 there were only two players in India : Life Insurance Corporation of India (LIC) General Insurance Corporation in India (GIC) Then to protect the interests of the policyholders, to regulate, promote and ensure orderly growth of the insurance industry, IRDA was set up. After this the private players started entering the market. By any yardstick, India, with about 200 million middle class households, presents a huge untapped potential for players in the insurance industry. Saturation of markets in many developed economies has made the Indian market even more attractive for global insurance majors with the per capita income in India expected to grow at over 6% for the next 10 years and with improvement in awareness levels, the demand for insurance is expected to
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grow at an attractive rat in India. an independent consulting company, The Monitor Group has estimated that the life insurance market will grow from Rs.218 billion in 1998 to Rs.1003 billion by 2008 (a compounded annual growth of 16.5%).

1.8 REGULATORY BODY: THE INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY (IRDA)

Insurance is a federal subject in India. The primary legislation that deals with insurance business in India is: Insurance Act, 1938, and Insurance Regulatory & Development Authority Act, 1999. Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in Parliament in December 1999. The IRDA since its incorporation as a statutory body in April 2000 has fastidiously stuck to its schedule of framing regulations and registering the private sector insurance companies. The other decision taken simultaneously to provide the supporting systems to the insurance sector and in particular the life insurance companies was the launch of the IRDAs online service for issue and renewal of licenses to agents. Since being set up as an independent statutory body the IRDA has put in a framework of globally compatible regulations. MISSION-IRDA To protect the interests of the policyholders, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto.

1.9 LIST OF INSURANCE COMPANIES IN PRIVATE SECTOR

S.No Date of Reg. Name of the Company 1 2 3 4 5 6 7 8 9 10 11 12 13 14.08.2000 15.11.2000 24.11.2000 10.01.2001 31.01.2001 12.02.2001 30.03.2001 02.08.2001 03.08.2001 06.08.2001 03.01.2002 14.05.2002 06.02.2004 Hdfc life Insurance Company Ltd. Max New York Life Insurance Company Ltd. ICICI Prudential Life Insurance Company Ltd. OM Kotak Mahindra Life Insurance Company Ltd. Birla Sun Life Insurance Company Ltd. Tata AIG Life Insurance Company Ltd. SBI Life Insurance Company Ltd . ING Vysya Life Insurance Company Private Ltd Allianz Bajaj Life Insurance Company Ltd. Metlife India Insurance Company Pvt. Ltd. AMP SANMAR Assurance Company Ltd. Aviva Life Insurance Company India Pvt. Ltd. Sahara India Insurance Company Ltd.

1.10 OBJECTIVES OF THIS STUDY OBJECTIVE means the purpose for which the research has been conducted. We have to clearly define the objective of the project to be made. This is the first and the most important part of the Research Methodology. The primary objective of my research is to study, understand and critically analyze various aspects related to the advertising potential feasibility of HDFC SLIC, that is, to study the effectiveness of advertisements of HDFC SLIC. Other secondary objectives are as follows: To study the advertisement strategies of hdfclife insurance company limited. To study the customer perceptionon advertisement strategiesof hdfc life insurance company limited. To study the effectiveness of advertisement strategies of hdfc life insurance company limited. To suggest recommendations for the future business consideration of hdfc life insurance company limited.

1.11 RESEARCH METHODOLOGY Research comprise defining and redefining the problems, formulating hypothesis or suggested solutions; collecting, organizing and evaluating data; making deductions and reaching conclusions; and at last carefully testing the conclusions to determine whether they fit the formulating Hypothesis. In short, the search for knowledge through objective and systematic method of finding solution to the problem is called research.

RESEARCH DESIGN Descriptive research includes Surveys and fact-finding enquires of different kinds. The major purpose of descriptive research is description of state of affairs, as it exists as the present. The main characteristic of this method is that the researcher has no control over the variables; he can report what has happened what is happening.

DATA SOURCE The project consists of two types: Secondary Data The first part is a study of the insurance company, Hdfc life Insurance using secondary data sources. This secondary information has been sourced from the internet and from business related magazines and newspapers. Primary Data The second part of the study has been done using an exploratory research process and a structured questionnaire was developed for this purpose. For the collection of primary data this was the only method used. The reason I used this method is because a need was felt for the free influx of information about the products. Also this method allowed the use of skills gained in class.

QUESTIONNAIRE DESIGN Questionnaires: - A questionnaire consists of a set of questions presented to respondent for their answers. It can be Closed Ended of Open Ended Open Ended: - Allows respondents to answer in their own words & are difficult to Interpret and Tabulate. Close Ended: - Pre-specify all the possible answers & are easy to Interpret and Tabulate.

SAMPLE DESIGN The population considered for the purpose of the survey was people residing in Delhi and the National Capital Region (NCR). Sample Extent: North Delhi Time Frame: 8 weeks Sampling Technique Used: Since the information required was not of a very technical nature and also looking at the scope of the project and the extent of the target segment, the sampling technique employed was Convenience Sampling. Sample Size: I have restricted the sample size to 100 respondents. This was done keeping in mind the time constraints and the fact that I felt that this number would be enough to serve the information needs required to show the trends.

TYPES OF QUESTIONS USED IN THIS PROJECT Close ended Questions: To know the choice or the people regarding various matters. Dichotomous Questions: This has only two answers yes and no. Multiple choice Questions: Where respondent is offered more than two choices. This is done to know the choices of the customers regarding different matters.

1.12 LIMITATIONS OF THE RESEARCH The only limitation in this survey was that I could not conduct a survey on big scale, due to the time constraint.

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 Most of the contents collected were difficult to understand because it was new for me to work in this field. It was tricky and time consuming to understand the mysteries of marketing. Response of customers could be biased.

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CHAPTER-2 COMPANYs PROFILE: HDFC LIFE INSURANCE COMPANY LIMITED.

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2.1 INTRODUCTION TO THE ORGANIZATION Hdfc life Insurance Company Limited is one of India's leading private Insurance companies, which offers a range of individual and group insurance solutions. It is a joint venture between Housing Development Finance Corporation Limited (HDFC Limited), India's leading housing finance institution and a Group Company of the Standard Life Plc, UK. As on February 28, 2009 HDFC Ltd. holds 72.43% and Standard Life (Mauritius Holding) 2006, Ltd. holds 26.00% of equity in the joint venture, while the rest is held by others.

2.2 JOINT VENTURE HDFC Limited

HDFC was incorporated in 1977 with the primary objective of meeting a social need - that of promoting home ownership by providing long-term finance to households for their housing needs. HDFC was promoted with an initial share capital of Rs. 100 million. HDFC Limited, Indias premier housing finance institution has assisted more than 3.3 million families own a home, since its inception in 1977 across 2400 cities and towns through its network of over 250 offices. It has international offices in Dubai, London and Singapore with service associates in Saudi Arabia, Qatar, Kuwait and Oman to assist NRIs and PIOs to own a home back in India. As of December 2008, the total asset size has crossed more than Rs. 95,000 crores including the mortgage loan assets of more than Rs. 82,800 crores. The corporation has a deposit base of Rs. 17,551 crores, earning the trust of more than 9, 00,000 depositors. Customer Service and satisfaction has been the mainstay of the organization. HDFC has set benchmarks for the Indian housing finance industry. Recognition for the service to the sector has come from several national and international entities including the World Bank that has lauded HDFC as a
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model housing finance company for the developing countries. HDFC has undertaken a lot of consultancies abroad assisting different countries including Egypt, Maldives, and Bangladesh in the setting up of housing finance companies.

2.3VISION & MISSION OF THE COMPANY Vision The most successful and admired life insurance company , which mean that they are the most trusted company, the easiest to deal with offer the best value of money, and set the standards in the industry.

Mission To be the top new life insurance company in the market. This does not just mean being the largest or the most productive company in the market, rather it is a combination of several thing like Customer service of the highest order Value for money for customer Professionalism in carrying out business Innovative products to cater to different needs of different customers Use of technology to improve over service standards. Increasing market share.

2.4 AWARDS & ACCOLADES 1. Best Companies to Work for in India in 2010 Hdfc life has been adjudged one of the Best Companies to Work for in India in 2010. The company participated in the Great Places to Work study for the first time and ranked first in the insurance category. It ranked 34th on the Top 50 Best Companies to Work for, in India 2010 list. The company was also awarded for its unique employee initiative - Mission in-Genius national quiz. The study has

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shown that Hdfc life conscientiously develops employee talent programmes to keep engaging and motivating its employees. The company provides some unique platforms such as 'Mission in Genius' national quiz. The management is accessible to all at all times and sincerely seeks feedback from its employees through programmes such as 'Sparsh', the study said. The Best Companies to Work in India is a study conducted by the Great Place to Work Institute, India in partnership with The Economic Times. The 2010 edition is the seventh study in India, which received overwhelming response from more than 400 companies, making it the largest such study in India. And only 50 companies made it to the Best Companies to Work list.

2. 'YoungStar Super Voted' Product of the Year 2010 Hdfc lifes YoungStar Super has been voted Product of the Year 2010 in the 'Insurance' category by more than 30,000 consumers nationwide across 36 markets. YoungStar Super is an unit linked Children Plan with unique benefits such as bumper additions, double and triple benefits, attractive allocations rates, and seven different funds. The consumer study on product innovation in India was conducted by A C Nielsen, the leading global research firm. Entries were accepted from products that demonstrate innovation in their product function, design, packaging or process or any other specified form. Entries were then filtered by a jury of distinguished industry professionals to ensure that the products meet the innovation criteria before they were passed on to the consumer votes/survey round. Product of the Year is an Internationally Recognised Standard that celebrates and rewards the best innovations in consumer products and services. The Product of the Year is selected through an independent consumer survey across the country in 26 countries for the past 20 years. 3. Received CIO 'The Ingenius 100 2009' Award
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Hdfc life has received the CIO The Ingenious 100 - 2009 Award, for ATLAS (Agency Training Licensing and Servicing System). Additionally, the company has received the CIO 100 Security Award 2009 for pioneering LANDesk Management and Security Suite security implementation and taking its security to a higher level of technological excellence. HDFC Standard has received the CIO 100 Award for the third consecutive year. It had received the 2008 CIO Bold Award for Consultant Corner and CIO Security Award for our initiatives for a secure computing environment, including Sesame Identity and Access Management. In 2007, the company received CIO 100 award for Wonders and a Special Award in Storage category. CIO magazine has a long tradition of honoring leading companies for business and technology leadership and innovations through its flagship award program CIO 100. Its a celebration of 100 organizations (and the people within them) that are using IT in innovative ways to deliver business value, whether by creating competitive advantage, optimizing business processes, enabling growth or improving relationships with customers. 4. Received Diamond EDGE Award 2009 Hdfc life has received the Diamond EDGE Award 2009 for its mobile workforce portal - Consultant Corner. EDGE - Enterprises Driving Growth and Excellence (using IT) is an initiative by the ,Network Computing magazine to identify, recognise, and honour end-user companies in India that have demonstrated the best use of technology to solve a business problem, improve business competitiveness, and deliver quantifiable ROI to stakeholders. Network Computing magazine is part of CMP Technology, which brings more than 100 IT media brands to more than 18 million technology and business decision makers worldwide. 5. Received 2008 CIO Bold 100 and CIO Security Awards
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Hdfc life has received the 2008 CIO Bold 100 Award. This annual award recognizes organizations that exemplify the highest level of operational and strategic excellence in information technology. This year's award theme, The Bold 100, recognized those executives and organizations that embraced great risk for the sake of great reward. Hdfc life has also been one of the five recipients of the Special 2008 CIO Security Award aimed at CIOs, whose pioneering implementations have taken their enterprise security to the next level. This award category identifies innovative and groundbreaking deployment of technologies aimed at creating a secure business infrastructure. The company received the 2008 CIO Bold Award for its mobile workforce portal and the CIO Security Award for its initiatives for a secure computing environment, including identity management. 6. Received PCQuest Best IT Implementation Award 2008 Hdfc life received the PCQuest Best IT Implementation Award 2008 for Consultant Corner, the applications for its financial consultants, providing centralized control over a vast geographical spread for key business units such as inventory, training, licensing, etc. Read more about the Consultant Corner tool in the HDFCSL's in News Section. Hdfc life has won the PCQuest Best IT Implementation Award for two years consequently. Last year, the company received the award for Wonders, its pathbreaking implementation of an enterprise-wide workflow system. 7. Silver Abby at Goafest 2008 Hdfc life's radio spot for Pension Plans won a Silver Abby in the radio writing craft category at the Goafest 2008 organised by the Advertising Agencies Association of India (AAAI). The radio commercial Pata nahin chala touched several changes in life in the blink of an eye through an old mans perspective.
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The objective was drive awareness and ask people to invest in a pension plan to live life to the fullest even after retirement, without compromising on ones selfrespect. 8. Unit Linked Savings Plan Tops Mint Best TV Ads Survey The Unit Linked Savings Plan advertisement of Hdfc life, one of the leading private insurance companies in India, has topped Mints Top Television Advertisement survey conducted, for February 2008. Hdfc lifes Unit Linked Savings Plan advertisement was ranked 4th in terms of a combined score of ad awareness and brand recall and 3rd in terms of ad diagnostic scores (likeability, enjoyment, believability, and claim). The respondents were between 18 and 40 years. Mints exclusive report, New voices in a makeover outlines the survey in detail.

9. Deepak M Satwalekar Awarded QIMPRO Gold Standard Award 2007 Mr Deepak M Satwalekar, Managing Director and CEO, Hdfc life, received the QIMPRO Gold Standard Award 2007 in the business category at the 18th annual Qimpro Awards function. The award celebrates excellence in individual performance and highlights the quality achievements of extraordinary individuals in an era of global competition and expectations. 10. Sar Utha Ke Jiyo Among Indias 60 Glorious Advertising Moments Hdfc lifes advertising slogan honored as one of 60 Glorious Advertising & Marketing Moments' over the last 60 years in India, by 4Ps Business and Marketing magazine. The magazine said that Hdfc life is one of the first private insurers to break the ice using the idea of self respect (Sar Utha Ke Jiyo) instead of 'death' to convey its brand proposition. This was then, followed by others including ICCI Prudential, thus giving Hdfc life the credit of bringing up one such glorious advertising and marketing moment in the last 60 years.

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2.5 KNOWLEDGE MANAGEMENT At different stages of individuals life, his need for insurance changes accordingly. Insurance need will change as the human life does, from starting to work to enjoying the golden years and all the stages in between. Each one of these stages may pose a different insurance need/cover for individuals. In this section, we will see the basic life stages and analyze various individuals insurance needs accordingly.

Stage 1: Young and Single This is an important stage where one lays down the foundation of a successful life ahead. Take advantage of the time and power of compounding to ensure that one build up his dreams, so start saving early. Individuals needs: Save for a home and wedding Tax Planning Save for Golden years

Stage 2 - Just Married Marriage brings about a significant change. New dreams and new opportunities also bring in additional responsibilities. While both look forward to a happy and secure life, it is equally important to ensure that eventualities dont come in the way of shaping their dreams. Individuals needs: Planning for home / securing your home loan liability Save for vacation Save for your first child
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Stage 3 - Proud Parents Once one has children, need for life insurance is even more. One need to protect his family from an untoward incident. Ensure his protection umbrella takes into account the future cost of securing his childs dream. He will want life to go on for his loved ones, and having enough life insurance is a way to help ensure that. Individuals needs: Provide for childrens education Safeguarding family against loan liabilities Savings for post-retirement

Stage 4 - Planning for Retirement While he is busy climbing the ladder of success today, it is important for him to take time and plan for his life after retirement. Having an early start for retirement planning can make a significant difference to savings. Think about the golden years even before one have reached them. The key is to think ahead and plan well using time and money. Individuals needs: Provide for regular income post retirement Immediate Tax benefits Lead a secure, independent and comfortable life style after retirement

2.6 SWOT ANALYSIS OF THE ORGANISATION STRENGTHS The company HDFC SLIC is best known for its pension plan. Company has made a brand image through the advertisement sar utha ke jiyo.

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1. Since 2000, company has been successful in making a strong customer base. 2. Company had been giving good returns to the customers.

WEAKNESSES 1. The company does not have much flexible plans for the lower segment of the society. 2. Apart from pension plan company has got many other beneficial plans like children plan etc of which people are not aware, therefore there should be an effort to make an exposure of the plans to the people. 3. Company should focus more on corporate selling apart from direct selling.

OPPORTUNITIES 1. As a result of increasing awareness of the people regarding secure investments, life insurance is the best option which gives the benefit of insurance & investment. 2. Lower segment is an opportunity for the company. 3. Life insurance is an effective way of saving taxes. All HDFC SLIC insurance plans are eligible for tax rebates Under Sec. 88 of Income Tax Act, 1961.

THREATS Entrance of various new players in the sector. Existence of various major brands in private sector in insurance. LIC holding 64% of the market share gives a cut through competition.

2.7 PRODUCTS OF THE COMPANY 1. INDIVIDUAL PRODUCTS

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Hdfc life realizes that not everyone has the same kind of needs. Keeping this in mind, we have a varied range of Products that you can choose from to suit all your needs. These will help secure your future as well as the future of your family. a. Protection Plans Protection Plans help the insured to shield his family from uncertainties in life due to financial losses in terms of loss of income that may dawn upon them incase of the insured untimely demise or critical illness. Securing the future of ones family is one of the most important goals of life. Protection Plans go a long way in ensuring familys financial independence in the event of any unfortunate demise or critical illness. BENEFITS Safeguard familys financial independence Security against uncertainties Financial cushion in case of an eventuality Types of Protection Plans: HDFC Term Assurance Plan HDFC Premium Guarantee Plan HDFC Loan Cover Term Assurance Plan HDFC Home Loan Protection Plan b. Childrens Plans Childrens Plans helps the insured to save so that he can fulfill his childs dreams and aspirations. These plans go a long way in securing the insureds childs future by financing the key milestones in their lives even if insured is no longer around to oversee them. All parents, wish to provide his child with the very best that life offers, the best possible education, marriage and life style.Most of these goals have a price tag attached and unless parents plan their finances carefully, they may not be able to provide the required economic support to their child when child
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need it the most. For example, with the high and rising costs of education, if you are not financially prepared, your child may miss an opportunity of a lifetime.

BENEFITS Helps parent to secure their childs dreams Economic support when child needs it most Funding major milestones Types of Childrens Plans: HDFC Children's Plan HDFC SL YoungStar Super II HDFC SL YoungStar Super Premium c. Retirement Plans Retirement Plans provide insured with financial security so that when his professional income starts to ebb, he can still live with pride without compromising on his living standards. By providing him a tool to accumulate and invest his savings, these plans give insured a lump sum on retirement, which is then used to get regular income through an annuity plan. Given the high cost of living and rising inflation, employer pensions alone are not sufficient. Pension planning has therefore become critical today. BENEFITS Monetary security Financial independence even after retirement Live carefree in the golden years of age.

Types of Retirement Plans: HDFC Personal Pension Plan HDFC Immediate Annuity

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d. Savings and Investment Plans The head of the family always give his family the very best. And there is no reason why his family shouldnt get the very best in the future too. As a judicious family man, his priority is to secure the well-being of those who depend on him. Not just for today, but also in the long term. More importantly, he has to ensure that his familys future expenses are taken care, even if something unfortunate were to happen to him. Savings & Investment Plans of Hdfc life provide assurance of lump sum funds for the insurance holders familys future expenses. While providing an excellent savings tool for short term and long term financial goals, these plans also assure insureds family a certain sum by way of an insurance cover. BENEFITS Dual benefit of protection and long term savings Provide an assured sum for future needs Inculcate a habit of regular savings

Types of Savings and Investment Plans: HDFC Endowment Assurance Plan

HDFC SL Crest HDFC SL ProGrowth Super II HDFC SL ProGrowth Maximiser HDFC SL New Money Back Plan HDFC Single Premium Whole of Life Insurance Plan HDFC Assurance Plan

HDFC Savings Assurance Plan

e. Health Plans Health plans give financial security to meet health related contingencies. Due to changing lifestyles, health issues have acquired completely new dimension
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overtime, becoming more complex in nature. It becomes imperative then to have a health plan in place, which will ensure that no matter how critical the illness is, it does not impact ones financial independence. In the race to excel in professional lives and provide the best for loved ones, individuals sometimes neglect the most important asset that is health. With increasing levels of stress, negligible physical activity and a deteriorating environment due to rapid urbanization, vulnerability to diseases has increased at an alarming rate. BENEFITS Secure health costs Financial independence despite illnesses Meeting medical expenses effortlessly

Types of Health Plans: HDFC Critical Care Plan HDFC SurgiCare Plan

2. GROUP PRODUTS Hdfc life has the most comprehensive list of products for progressive employers who wish to provide the best and most innovative employee benefit solutions to their employees. Hdfc life offer different products for different needs of employers ranging from term insurance plans for pure protection to voluntary plans such as superannuation and leave encashment. Types of Group Plans: Group Term Insurance Plan Group Variable Term Insurance Plan Group Unit Linked Plan Gratuity Group Unit Linked Plan - Leave Encashment HDFC SL Group Savings Plan

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3. OTHER PRODUCTS Rural Products Social Development Insurance Plan Tax Benefit Schemes The premium payment options available to the customers vary from online payment to direct desk payments at the Hdfc life Branches, by courier services or in drop boxes provided. You can also pay by ECS or Automatic Debit System or credit cards or standing instruction mandate. Hdfc life Insurance Company is a customer oriented corporation and aim at complete customer satisfaction.The lapsation and renewal policy of Hdfc life are clearly defined on the official website. Online renewal forms are also available. For any change in personal details like the contact details or the nominee of the policy or policy benefits, online servicing is also available. Even the claim procedure has been simplified since affect of the loss life is irreparable and is thus fully understandable at Hdfc life. A completely hassle-free process has been formulated to provide maximum convenience.

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CHAPTER-3 ADVERTISING STRATEGIES OF HDFC LIFE INSURANCE COMPANY LIMITED.

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3.1 ADVERTISING Advertising is a form of communication intended to persuade an audience (viewers, readers or listeners) to purchase or take some action upon products, ideals, or services. It includes the name of a product or service and how that product or service could benefit the consumer, to persuade a target market to purchase or to consume that particular brand. These brands are usually paid for or identified through sponsors and viewed via various media. Advertising can also serve to communicate an idea to a mass amount of people in an attempt to convince them to take a certain action, such as encouraging 'environmentally friendly' behaviors, and even unhealthy behaviors through food consumption, video game and television viewing promotion, and a "lazy man" routine through a loss of exercise. Modern advertising developed with the rise of mass production in the late 19th and early 20th centuries. Mass media can be defined as any media meant to reach a mass amount of people. Several types of mass media are television, internet, radio, news programs, and published pictures and articles. Advertising spending has increased dramatically in recent years. In 2006, spending on advertising has been estimated at $155 billion in the United States and $385 billion worldwide, and the latter to exceed $500 billion by 2010. While advertising can be seen as necessary for economic growth, it is not without social costs. Unsolicited Commercial Email and other forms of spam have become so prevalent as to have become a major nuisance to users of these services, as well as being a financial burden on internet service providers. Advertising is increasingly invading public spaces, such as schools, which some critics argue is a form of child exploitation. Advertising is the promotion of a companys products and services carried out primarily to drive sales of the products and services but also to build a brand identity and communicate changes or new product /services to the customers. Advertising has become an essential element of the corporate world and hence the

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companies allot a considerable amount of revenues as their advertising budget. There are several reasons for advertising some of which are as follows: Increasing the sales of the product/service Creating and maintaining a brand identity or brand image. Communicating a change in the existing product line. Introduction of a new product or service. Increasing the buzz-value of the brand or the company.

3.2 TYPES OF ADVERTISING Mentioned below are the various categories or types of advertising: a. Print Advertising Newspapers, Magazines, Brochures, Fliers The print media have always been a popular advertising medium. Advertising products via newspapers or magazines is a common practice. In addition to this, the print media also offers options like promotional brochures and fliers for advertising purposes. Often the newspapers and the magazines sell the advertising space according to the area occupied by the advertisement, the position of the advertisement (front page/middle page), as well as the readership of the publications. For instance an advertisement in a relatively new and less popular newspaper would cost far less than placing an advertisement in a popular newspaper with a high readership. The price of print ads also depend on the supplement in which they appear, for example an advertisement in the glossy supplement costs way higher than that in the newspaper supplement which uses a mediocre quality paper. b. Outdoor Advertising Billboards, Kiosks, Tradeshows and Events Outdoor advertising is also a very popular form of advertising, which makes use of several tools and techniques to attract the customers outdoors. The most common examples of outdoor advertising are billboards, kiosks, and also several events and
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tradeshows organized by the company. The billboard advertising is very popular however has to be really terse and catchy in order to grab the attention of the passers by. The kiosks not only provide an easy outlet for the company products but also make for an effective advertising tool to promote the companys products. Organizing several events or sponsoring them makes for an excellent advertising opportunity. The company can organize trade fairs, or even exhibitions for advertising their products. If not this, the company can organize several events that are closely associated with their field. For instance a company that manufactures sports utilities can sponsor a sports tournament to advertise its products. c. Broadcast advertising Television, Radio and the Internet Broadcast advertising is a very popular advertising medium that constitutes of several branches like television, radio or the Internet. Television advertisements have been very popular ever since they have been introduced. The cost of television advertising often depends on the duration of the advertisement, the time of broadcast (prime time/peak time), and of course the popularity of the television channel on which the advertisement is going to be broadcasted. The radio might have lost its charm owing to the new age media however the radio remains to be the choice of small-scale advertisers. The radio jingles have been very popular advertising media and have a large impact on the audience, which is evident in the fact that many people still remember and enjoy the popular radio jingles. d. Covert Advertising Advertising in Movies Covert advertising is a unique kind of advertising in which a product or a particular brand is incorporated in some entertainment and media channels like movies, television shows or even sports. There is no commercial in the entertainment but the brand or the product is subtly( or sometimes evidently) showcased in the entertainment show. Some of the famous examples for this sort of advertising have to be the appearance of brand Nokia which is displayed on
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Tom Cruises phone in the movie Minority Report, or the use of Cadillac cars in the movie Matrix Reloaded. e. Surrogate Advertising Advertising Indirectly Surrogate advertising is prominently seen in cases where advertising a particular product is banned by law. Advertisement for products like cigarettes or alcohol which are injurious to heath are prohibited by law in several countries and hence these companies have to come up with several other products that might have the same brand name and indirectly remind people of the cigarettes or beer bottles of the same brand. Common examples include Fosters and Kingfisher beer brands, which are often seen to promote their brand with the help of surrogate advertising. f. Public Service Advertising Advertising for Social Causes Public service advertising is a technique that makes use of advertising as an effective communication medium to convey socially relevant messaged about important matters and social welfare causes like AIDS, energy conservation, political integrity, deforestation, illiteracy, poverty and so on. David Oglivy who is considered to be one of the pioneers of advertising and marketing concepts had reportedly encouraged the use of advertising field for a social cause. Oglivy once said, "Advertising justifies its existence when used in the public interest - it is much too powerful a tool to use solely for commercial purposes.". Today public service advertising has been increasingly used in a non-commercial fashion in several countries across the world in order to promote various social causes. In USA, the radio and television stations are granted on the basis of a fixed amount of Public service advertisements aired by the channel.

g. Celebrity Advertising Although the audience is getting smarter and smarter and the modern day consumer getting immune to the exaggerated claims made in a majority of
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advertisements, there exist a section of advertisers that still bank upon celebrities and their popularity for advertising their products. Using celebrities for advertising involves signing up celebrities for advertising campaigns, which consist of all sorts of advertising including, television ads or even print advertisements.

3.3 ADVERTSING TECHNIQUES Advertising aims at promoting the products and services of a company. It helps in the creation of a brand identity and serves as an effective means to communicate to the world the value of the product or the service. Through different advertising techniques, companies achieve a growth in the sales of their products and services by attracting the masses towards them. Different types of advertising techniques aim at highlighting the product features and bringing about its uniqueness in relation to its competitors. Advertising techniques often intend to make a product stand out by throwing light on its features that make it look different from the rest. Advertising is carried out through different media so that the advertisements gain a mass appeal. It is brought before the public through various channels to ensure that the product or the service is noticed by the general public. Following is a description about the various types of advertising techniques. Print advertising makes use of the print media such as magazines and newspapers. The print media also offers options like advertising through brochures or pamphlets. The effectiveness of the advertisement made through the print media depends on the popularity of the media used. The advertisements, which appear in prominent newspapers, have a greater chance of being noticed. Fliers and brochures are commonly distributed with newspapers and supplements are attached to newspapers. In such cases, the popularity of the newspaper and the location of the advertisement in it, matter most. The use of audio-visual media is another popular advertising technique. Television, radio have been used in advertising since long. Internet advertising that has emerged in the relatively recent times has earned a huge recognition. In
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case of radio and television the broadcasting time decides the cost of the advertisement while the livelier Internet hosts websites that contain

advertisements. Advertisements relate to the subject discussed by the website and popularity of the website and the position of the advertisement on the web page are determinants of its notice ability. Advertisers use not only the print and the TV and radio channels but also movies to feature their advertisements. Covert advertising is the practice of indirectly publicizing a product through movies and TV shows. For example, the actress in the film or the TV show may be shown to be using a particular brand of clothes or cosmetics; a particular restaurant or company may be shot so that the company name appears in the scene. The audiences watching the show or the movie are sure to notice the name advertised, thus contributing to the promotion of the product showcased. The use of eminent people for the promotion of a brand is one advertising technique while making use of common people is another. The purpose behind the use of celebrities is that many identify with the celebrities and it is a general psychology to emulate the person one identifies with. Celebrities are widely admired and hence prove highly effective in advertising. The use of plain folks strategy in advertising is based on the idea that common people can easily reach out to the masses. Some advertising techniques use promotional techniques that demonize the enemy. A point of view is stressed upon the masses and the ones with an opposite standpoint are made to feel inferior. Some advertisers present before the public a comparative study between two brands and bring out the superiority of their product in comparison to the competitors. Some advertising techniques use sarcasm to promote a product while demoting the competitors' products. Many advertising techniques are based on repetition in which the product or the service name is emphasized and is repeatedly put forth the public. Some advertising techniques make use of human psychology to follow something because the others
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are following it. People in large numbers are shown to be using the product thus in a subtle way compelling the audiences to start using it. Advertising techniques often make use of emotional and touching words or actions to attract the masses. Advertising techniques are and should be efficiently used for social causes. Awareness about certain important subjects, social issues and environmental problems can be effectively communicated to the public by means of advertisements. The government and other social organizations are seen implementing public service advertising. But commercial product and service companies should take the eyes off moneymaking for a little while and come forward to advertise for a social cause.

3.4 ADVERTISING STRATEGIES In advertising, different creative strategies are used in order to obtain consumer attention and provoke shoppers to purchase or use a specific product. Advertisers use different ways of thinking to create catchy slogans that capture consumer attention. Creative strategies promote publicity, public relations, personal selling and sales promotion. These ways of thinking are divided into three basic descriptions: Weak strategies, mid-strength strategies and strong strategies. The strategies labeled "strong, midstrength, and weak are generic phrases used in the text books referenced below to help students understand the intensity of each different type of advertising strategy. Advertisements, weak, mid-strength, and strong can be found in television, radio , and magazines/print. Since the beginning of advertising, strategies have been created, starting with the simplest (weak) strategies in the 1940's. a. Weak strategies Generic and Pre-emptive strategies describe the two weakest forms of advertising that were most popular through the 1940's.

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A generic strategy gives a product attribution. An example of this would be how the beef industry chose to advertise their product. With their slogan, Beef, it's what's for dinner, consumers aren't learning anything new about the product.

The Beef slogan simply states beef as a dinner item. It enhances the product in no other way.

A pre-emptive strategy is a form of advertising that makes a generic claim stronger.

b. Middle-strength strategies Secondly, are the mid-strength strategies: unique positioning strategy, brand image and positioning. A unique positioning strategy is proving that something about your product is truly unique. This is commonly found when producers take an average product and add a new, unique element to it. An example of Unique Positioning Strategy would be in Crest toothpaste. Crest added the unique feature of Scope in their product to differentiate it from other brands of toothpaste.

A downfall in Unique positioning strategy advertising is that if a unique feature increases sales on one product, many other brands are likely to adopt the unique feature, making the end product not so unique.

Positioning is one of the most common forms of advertising. It was developed in the 1970's and is still widely used today. In positioning one brand will take its product and position it against a competing product. Brand Image is another very common way companies choose to advertise. In brand image, an advertiser is not trying to create rational thinking. This type of advertising strives to create emotion and give a brand a personality. A common way of doing this is by using a celebrity as a spokesperson.

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c. Strong strategies The third and strongest form of creative strategy includes affective advertising and resonance advertising. Making people feel really good about a product is called affective advertising. This is difficult to do, but often humor and an honest character can make affective advertising possible. Lastly, resonance advertising is a way of identifying with consumers. If an advertiser can create a campaign that certain target markets identify with, then resonance advertising has been achieved.

3.5

ADVERTISING

STRATEGIES

OF

HDFC

LIFE

INSURANCE

COMPANY Hdfc life Insurance Company uses many of the advertising methods for its products. Some of them are: a. Print Advertising In this type of advertising the company uses print media to advertise its products like newspapers, magazines, etc. b. Broadcast Advertising In this type of advertising company uses the broadcast channels like television, radio etc. c. Outdoor Advertising In this type of advertising various means like hoardings etc are used.

3.6 ADVERTISEMENTS OF HDFC LIFE INSURANCE

COMPANY

1. The most popular advertisement of HDFC SLIC is of pension plan which have its tag line as sar utha ke jiyo, which is very much acknowledged among the people.

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2. The other popular advertisement of HDFC SLIC is of child plan. The jingle used by HDFC SLIC in most of its advertisements is very popular among people and they recognize the company with that jingle and the tag line sar utha ke jiyo.

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CHAPTER-4

DATA ANALYSIS AND INTERPRETATION

38

DATA ANALYSIS AND INTERPRETATION Ques1. Age-group? 25-35 years 35-45 years 45-50 years Age Group 25 35 years 35- 45 years 45-50 years

Number of Respondents 42 32 26

Age Group
25 35 years, 42

45-50 years, 26 35- 45 years, 32

Interpretation: Of the sample size of 100 surveyed respondents 42% of the respondents belongs to the age group of 25-35 years. 32% of the respondents comes under the age group of 35-45years. 26% of the respondents belongs to the age group of 45-50 years.

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Ques2. Gender? Male Female

Gender Male Female

Number of Respondents 72 28

Gender
female, 28

male, 72

Interpretation: Majority of the respondents surveyed are male i.e.72% whereas only 28% of the respondents were female.

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Ques3. What is your income-group? Below 10,00,000 per annum 10,00,000-20,00,000 per annum 20,00,000-30,00,000 per annum 30,00,000-40,00,000 per annum 40,00,000 and above per annum

Income-Group Below 10,00,000 per annum 10,00,000-20,00,000 per annum 20,00,000-30,00,000 per annum 30,00,000-40,00,000 per annum 40,00,000 and above per annum

Number of Respondents 23 22 20 18 12

40,00,000 and above per annum, 12

Income Group
20,00,00030,00,000 per annum, 20 30,00,00040,00,000 per annum, 18

Interpretation: The questionnaire was administered on almost all the sections of the society so as to get complete picture of the analysis but not on the lower class because they are never concerned with the investments or savings.
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Ques4. Are you insured? Yes No

Answer Yes No

Number of Respondents 85 15

Ratio of insured people

No, 15

Yes, 85

Interpretation: Of the sample size of 100 surveyed respondents 85% of the respondents are insured while 15% are not insured.

Ques5. Do you know about Hdfc life Insurance Company Limited?

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 Yes No

Answer Yes No

Number of Respondents 75 25

Awareness of the company

No, 25

Yes, 75

Interpretation: 75% of the respondents surveyed were aware about the company. While 25% of the respondents were not aware about the company.

Ques6. Which sector is better in insurance from your point of view? Public Sector

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 Private Sector

Answer Public Sector Private Sector

Number of Respondents 89 11

Preference of sector insurance

Private Sector, 11

Public Sector, 89

Interpretation: 89% of the respondents are interested in insurance from public sector. While 11% of the respondents are interested in insurance from private sector.

Ques7. Which company is better in your view in private sector? Hdfc life Insurance Company
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 ICICI Prudential Life Insurance Company Reliance Life Insurance Company Others

Life Insurance Companies Hdfc life Insurance Company ICICI Prudential Life

Number of Respondents 60 Insurance 15

Company Reliance Life Insurance Company Others 10 15

Preferences of company in private sector

15 10 15 60

HDFC Standard Life Insurance Company ICICI Prudential Life Insurance Company Reliance Life Insurance Company Others

Interpretation:

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 60% of the respondents are in favor of Hdfc life Insurance Company Limited. While 40% of the respondents are in favour of other companies.

Ques8. Do you think that the marketing strategies of HDFC SLIC is good enough to capture the market and attract the customers? Yes No Answer Yes No Number of Respondents 48 52

Attitude towards marketing strategies of company

52

48 Yes No

Interpretation: As seen from the graph more than half of the respondents think that the marketing strategy of the company is not good enough to attract the customers.

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Ques9. Do you think the advertising strategies of HDFC SLIC helps in gaining customers? Yes No

Answer Yes No

Number of Respondents 51 49

Attitude towards advertising strategy of company

49

51 Yes No

Interpretation: As seen from the graph approximately half of the respondents think that the advertising strategy of the company is helping in gaining customers.

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Ques10. From where do you come to know about Hdfc life Insurance Company? Advertisements Friends Others

Answer Advertisements Friends Others

Number of Responses 65 15 20

Sources of awareness of company

20 15 65 Advertisements Friends Others

Interpretation: As seen from the graph more than half of the respondents know about the company from its advertisements.

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Ques11. Where have you seen the advertisements of Hdfc life Insurance Company? Television Newspapers Hoardings Others

Answer Television Newspapers Hoardings Others

Number of Responses 55 25 15 5

Sources of advertisement
15 5 Television Newspapers Hoardings Others

55 25

Interpretation: As seen from the graph more than half of the respondents have seen the advertisements in television. So we can say that television is the most popular media of advertising.
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Ques12. Do you think the advertisements of HDFC SLIC prove to be an extra advantage for the sale of the company products? Yes No

Answer Yes No

Number of Responses 60 40

Attitude towards advertisement

40 60 Yes No

Interpretation: As seen from the graph more than half of the respondents think that the advertisement of the company is good enough to increase the sales of the company.

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Ques13. Do you think that the company should give more stress on advertising and make it much more effective? Yes No

Answer Yes No

Number of Responses 62 38

Attitude towards stress on advertisement

38 62 Yes No

Interpretation: As seen from the graph more than half of the respondents think that the company should give some more stress on the advertisements and make it much more effective.

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Ques14. Do you think that the advertising makes a difference on your buying decision? Yes No

Answer Yes No

Number of Respondents 48 52

Affect of advertisements on buying decision

52

48 Yes No

Interpretation: As seen from the graph we have a mixed reaction on the impact of advertisements on the buying decision of the customer.

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Ques15. How do you rate the advertisements of Hdfc life Insurance Company? Excellent Very Good Good Satisfactory Poor Answers Excellent Very Good Good Satisfactory Poor Number of Responses 35 25 25 10 5

Ratings of advertisement
10 25 25 5 35 Excellent Very Good Good Satisfactory Poor

Interpretation: As seen from the graph there are various views for the advertisements of the company but the ratings differ.
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Ques16. Do you think the company needs any brand ambassador for its advertisements to market its products? Yes No

Answer Yes No

Number of Respondents 42 58

Attitude towards brand ambessedor of company

42 58 Yes No

Interpretation: As seen from the graph not much of the respondents feel that the company should have any of its own brand ambassadors to market its products.

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CHAPTER-5

FINDINGS

55

FINDINGS OF THE RESEARCH Insurance sector is the most booming sector in India now-a-days. The insurance sector helps in increasing the employment opportunities in India. Although there are a lot of private insurance companies but the main share is still for the only public insurance company that is LIC. Privatization has led to a great impact on the insurance industry. HDFC is one of the oldest private insurance companies in India. There are a lot of new companies entering in the insurance making it more competitive. There are many opportunities still to be availed by the private sector insurance companies. HDFC SLIC has got an extra advantage of the brand name of HDFC associated with it. The advertising and marketing strategy of the company is good enough to attract the customers. Most of the people think that the advertising strategies of the company is good but still needs to be made more effective by giving more stress on it. The company uses television as a medium for its advertisements than any other sources. Much of the respondents have also seen the advertisements of HDFC SLIC on television. The company has some very attractive advertisements like for pension plans and child plans etc. The tag line used by the company sar utha ke jiyo is very popular among the people. The jingle of the company is very attractive and many of the persons recognize the company with that jingle.
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 There is a mixed response of the customers in regard to the advertisements affecting their decision to buy a product.

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CHAPTER-6

RECOMMENDATIONS

58

RECOMMENDATIONS FOR THE ORGANIZATION The company should stress much on its marketing strategy. The company should also give much stress on the advertising strategy. The company should also offer some more plans for the middle class of the society. The company should make its advertising more effective by using different means of media. The company should raise its budget for advertising and make it more effective. The company should use some of the brand ambassador for its advertisements.

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ANNEXURE

60

QUESTIONNAIRE Ques1. Age-group? 25-35 years 35-45 years 45-50 years

Ques2. Gender? Male Female

Ques3. What is your income-group? Below 10,00,000 per annum 10,00,000-20,00,000 per annum 20,00,000-30,00,000 per annum 30,00,000-40,00,000 per annum 40,00,000 and above per annum

Ques4. Are you insured? Yes No

Ques5. Do you know about Hdfc life Insurance Company Limited? Yes No
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Ques6. Which sector is better in insurance from your point of view? Public Sector Private Sector

Ques7. Which company is better in your view in private sector? Hdfc life Insurance Company ICICI Prudential Life Insurance Company Reliance Life Insurance Company Others

Ques8. Do you think that the marketing strategies of HDFC SLIC is good enough to capture the market and attract the customers? Yes No

Ques9. Do you think the advertising strategies of HDFC SLIC helps in gaining customers? Yes No

Ques10. From where do you come to know about Hdfc life Insurance Company? Advertisement Friends Others

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Ques11. Where have you seen the advertisements of Hdfc life Insurance Company? Television Newspapers Hoardings Others

Ques12. Do you think the advertisements of HDFC SLIC prove to be an extra advantage for the sale of the company products? Yes No

Ques13. Do you think that the company should give more stress on advertising and make it much more effective? Yes No

Ques14. Do you think that the advertising makes a difference on your buying decision? Yes No

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Ques15. How do you rate the advertisements of Hdfc life Insurance Company? Excellent Very Good Good Satisfactory Poor

Ques16. Do you think the company needs any brand ambassador for its advertisements to market its products? Yes No

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BIBLOGRAPHY

65

BOOKS Philip Kotler ,13th edition, Marketing Management, , Pearson Education C R Kothar, 4th editioni Research Methodology, Vikas Publications T N Chabra, 5th edition Marketing Management,, Sultan Chand and Sons

WEBSITES http.//www.hdfcinsurance.com http.//www.hdfclife.com http.//www.rbi.org.in http.//www.irdaindia.org http.//www.banknetindia.com http.//www.businessworldonline.com http.//www.indiabschools.com http.//www.findarticles.com

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