MARKETING STRATEGY OF LIC

MARKETING STRATEGY

MARKETING STRATEGY

GROUP MEMBERS Name:-

ANSHU TIWARI AYUSH DIXIT

Roll No:-

2012098 2012005

Presented To:-

Prof.Mehul RAJA

INTRODUCTION OF LIC

1818: Oriental Life Insurance Company, the first life insurance company on Indian soil started functioning.

1938: Earlier legislation consolidated and amended the Insurance Act with the objective of protecting the interests of the insuring public.

On September 1st, 1956 Life Insurance Corporation of India was created, by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs 5 crore from the Government of India .

It is the largest life insurance company in India and also the country's largest investor.

It is fully owned by the Government of India. It also funds close to 24.6% of the Indian Government's expenses

BCG MATRIX OF LIC

Jeevan Ankur

Jeevan SaralJeevan AnandJeevan Sathi

Bima BachatJeevan TarangKomal JeevanEndowment PlusJeevan ShreeChild Career PlanJeevan Ankur

Money BackJeevan SurabhiJeevan Amrit

BCG MATRIX SOLUTIONS OF LIC

Star:- The products which are already in star to maintain it the LIC should recall and create and innovative adds for that same product in a new way so as to maintain in the same category.

Dogs:- The products fall in dogs category it should be present and it should be renovate with new terms & conditions and new policy should be present with the adds on the same and then to present it with clients in newer ways with maximum profits for the insurer due to which it can fall in ? category.

Cash Cow :- The product should be again come up with the newer terms & conditions. With the higher commission rates for the agents. So that agents can sell more products and then automatically the revenue will be increasing.

PORTERS 5 MODEL IN LIC

PORTER’S SOLUTIONS

If the competitors come up with the new plans of policy with lower price & higher profits then its would be a little bit problem for LIC.

Bargaining power can be low if the LIC himself start insuring the companies as well instead of taking a help of Munich Insurance.

LIC should maintain and work on its customer care service more efficiently and treat the clients in proper & disciplined manner. So as to avoid the fear of moving the clients.

Multiple of companies has multiple offers so the bargaining power is high so to avoid it the LIC company should maintain and every now and then recall its advertising, its branding its repositioning the target markets.

STP

Segmentation:- Middle Group Mostly

Targeting:- 20 – 35 Years Age.

Positioning:- Endowment for 10 – 15 Years.(Return) Term Insurance.

Also through Ads and Promotions.

PROBLEM STATEMENT

Problem :- Currently LIC is facing a huge problem in South Region. Suggestion from my side

Increase the no. of Agents Commission Free health Insurance for 2-3 years and For the age group 20-35 yrs.

WORKING OF LIFE INSURANCE

AVOID

REDUCE

TRANSFER

Insurance deals with transfer of risk from the consumer to the provider. Insurance works on a fundamental principle of pooling of risk

Product Price Place Promotion People Process Physical

Evidence

The marketing mix is the combination of marketing activities that an organisation 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 LIFE INSURANCE MIX

Auto Insurance Home Insurance Health Insurance Accident,

Sickness and Unemployment Insurance

Casualty Insurance

Life Insurance Property

Insurance Liability

Insurance Credit Insurance Others:

All-risk Insurance

Kidnap and Ransom Insurance

Legal expenses Insurance

Locked funds Insurance

Pet Insurance Travel Insurance Reinsurance

Premium charged against the policies. (Includes: Mortality, Expenses, Interests)

Interest charged for defaulting the payment of premium.

Commission charged for underwriting and consultancy.

PRODUCT PRICE

3. PRICE

Managing the Insurance Personnel

Locating a Branch

Advertising and Publicity Organisation of

Conferences and Seminars

Incentive to Policyholders Exhibitions Participation in fairs and

festivals Mobile Publicity Van

PLACE PROMOTION

PLACE

Training & Development of Employees.

Strong Relationship with Intermediaries.

Use of IT for efficiency, both at staff and agent level.

Internet/Web Pages

Brochures Business Cards Building &

Offices Signage Financial

Reports Punch Lines Employee’s

Dress Code

PEOPLE PHYSICAL EVIDENCE

PROCESS

Customer friendly. Speed and

accuracy in payment.

Easy and convenient processing method.

Schemes catering demand of customers.

IT & Data warehousing to smoothen the process flow

LIC OF INDIA MARKETING TRIANGLE Marketing Triangle

COMPANY

Internal Marketing

SERVICE PROVIDER

External Marketing

CONSUMERS

LIC OF INDIA – FLOWER OF SERVICE

Core

Payment

information

Consultation

Order Taking

Hospitality

Exception

Safe Keeping

Billing

SITUATION ANALYSIS

4 – I‘S OF LIFE INSURANCE

Service

Intangibility

InconsistencyInventory

Inseparability

STRENGTHS:

Domestic image of HDFC supported by Prudential’s international image is strength of the company.

Strong and well spread network of qualified intermediaries and sales person. Strong capital and reserve base. The company provides customer service of the highest order

WEAKNESS:

Heavy management expenses and administrative costs. Low customer confidence on the private players.

OPPORTUNITIES:

Insurable population –According to ING only 10% of the population is insure which represents around 30% of the insurable population. This suggests more than 300m people, with the potential to buy insurance, remain uninsured.

There will be inflow of managerial and financial expertise from the world’s leading insurance markets. Further the burden of

educating consumers will also be shared among many players.

THREATS

Reorganization of PSU’s. The all PSU’s have started to redefine their services to attract customer’s attention.

A few foreign Insurance companies have been permitted to increase their number branches and its entry has taken away some business of the existing companies.

Porters five forces

 media mix

Should Increase its Media Mix.

 Promotion Mix

Should Increase its Promotion in Rural areas

Life insurance corporation of India (LIC) is the biggest life insurance player in India Insurance Industry.its strong brand backed by long experience and well established network has helped it to remain on the peak.

LIC offers a very vast and huhge range of diversified products catering to needs of various sections of people in India. It offers individual solutions considering their specific financial requirement and risk profiles.

Conclution