1 A PROJECT REPORT ON “Advertisement effectiveness study of ICICI Prudential life insurance Ltd.” SUBMITTED TO UNVERSITY OF MUMBAI IN PARTIAL FULLFILLMENT FOR THE AWARD OF THE DEGREE OF BACHELOR OF COMMERCE (BANKING AND INSURANCE) SEMISTER VI, ACADEMIC YEAR: 2014-2015. SUBMITTED BY NIDHI R. RAO,SEAT NO.12010 UNDER THE GUIDANCE OF, PROFESSOR SNEHALATA SANKPAL Date of submission: THE SIA COLLEGE OF HIGHER EDUCATION
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NIDHI Effectiveness of Advertisement on Insurance Company
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1
A
PROJECT REPORT
ON
“Advertisement effectiveness study of ICICI
Prudential life insurance Ltd.”SUBMITTED TO
UNVERSITY OF MUMBAI
IN PARTIAL FULLFILLMENT FOR THE AWARD OF
THE DEGREE OF BACHELOR OF COMMERCE
(BANKING AND INSURANCE)
SEMISTER VI, ACADEMIC YEAR: 2014-2015.
SUBMITTED BY
NIDHI R. RAO,SEAT NO.12010
UNDER THE GUIDANCE OF,
PROFESSOR SNEHALATA SANKPAL
Date of submission:
THE SIA COLLEGE OF HIGHER EDUCATION
P-88,MIDC,RESIDENTIAL ZONE,SAGARLI,
DOMBIVLI GHYMKHANA RD,DOMBIVLI (EAST)
2
DECLARATION
I hereby declare that the project titled ““Advertisement effectiveness study of ICICI Prudential life insurance Ltd.”” submitted by me is based on actual work carried out by me under the guidance & supervision of Prof. SNEHALATA SANKPAL
The information submitted in this project work is true and original to the best of my knowledge and belief.
S.I.A COLLEGE OF HIGHER EDUCATION
SIGNATURE OF THE STUDENT (NIDH
I.R.RAO)
3
ACKNOWLEDGEMENT It is a matter of great pleasure for me in submitting the
Project report on “Advertisement effectiveness study of ICICI Prudential life insurance Ltd.”for fulfillment of the requirement of my course from THE S.I.A
COLLEGE OF HIGHER EDUCATION, DOMBIVLI (EAST) I am thankful to and owe a deep gratitude to all those who have helped me in Preparing this report. Words seem to be inadequate to express my sincere thanks to Prof. SNEHALATA MADAM for her valuable guidance, constructive criticism, untiring efforts and immense encouragement during the entire course of the study due to which my efforts have been rewarded. I express my sincere thanks to our principal Dr. Mrs. Padmaja Arvind and our librarian Mrs. Bharti Rao for giving me all the facilities during my project and helping and guiding me during my research work. I want to thank all who have supported me and gave their timely guidance. Last but not least I am very grateful to all those who helped in one way or the other way at every stage of my work.
Signature (NIDHI.R.R
AO)
4
About the projectTitle of study The present study titled in RISK “Advertisement effectiveness”
The study is made by reference “Advertisement effectiveness study of ICICI Prudential life insurance Ltd.”
Object of the study
To study broad outline of management of credit, market and operational risks associated with Canara Bank.
To understand the importance of risk management in Canara Bank.
To study the problem related to risk management in Canara Bank.
The study aims at learning the techniques involved to manage the various types Risk of Canara Bank.
Future of Risk Management in Canara Bank.
DATA AND METHODOLOGY For the purpose of the present study, both primary as well as secondary data were used.
Primary data is collected through questionnaire from 10 customer to understand the awareness abut the Risk management. Sample was randomly selected.
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S.No.CONTENT PAGE No.
1 CHAPTER-1 INTRODUCTION6-36
-2 CHAPTER-2 OBJECTIVE OF THE STUDY 38-39
3 CHAPTER-3 PROBLEM SCOPE OF THE
STUDY40-46
4 CHAPTER-4 REVIEW OF LITERATURE 47-52
5 CHAPTER-5 RESEARCH METHODOLOGY 53-55
6 CHAPTER-6 DATA ANALYSIS
7 CHAPTER-7 USE AND IMPORTANCE OF
THE STUDY
8 CHAPTER-8 - SUGGESTION
9 CHAPTER-9 CONCLUSION
10 CHAPTER-10 SECONDARY DATA
11 CHAPTER-11 BIBLIOGRAPHY
6
CHAPTER 1
INTRODUCTION
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Introduction
The business of life insurance in India in its existing from started in India in the
year 1818 with the establishment of the Oriental Life Insurance company in
Calcutta. Some of the important milestones in the life insurance business in India
are:
1912: The Indian Life Assurance Companies Act enacted as the first statute to
regulate the life insurance business.
1912: The Indian Life Assurance Companies Act enacted to enable the
government to collect statistical information about both life and non-
life insurance business.
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1938: Earlier legislation consolidated and amended to by the Insurance Act with
the objective of protecting the interests of the insuring public.
1956: 245 Indian and foreign insurers and provident societies taken over by the
central government and nationalized. LIC formed by an Act of parliament, viz. LIC
Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India.
The general insurance business in India, on the other hand, can trace its roots to the
Triton Insurance Company Ltd., the first general insurance company established in
the year 1850 in Calcutta by the British. Some of the important milestones in the
general insurance business in India are:
1957: The Indian Mercantile Insurance Ltd. Set up, the first company to transact
all classes of general insurance business.
1957: General Insurance Council, a wing of the Insurance Association of India,
frames a code of conduct for ensuring fair conduct and sound business practices.
1968: The Insurance Act amended to regulate investments and set minimum
solvency margins and the tariff Advisory Committee set up.
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1972: The General Insurance Business (Nationalization) Act, 1972 nationalized
the general insurance business in India with effect from 1st January 1973. 107
insurers amalgamated and grouped into four companies viz. the National
Insurance Company Ltd., the New India assurance Company Ltd., the Oriental
Insurance Company Ltd. And the United India Insurance Company Ltd. GIC
incorporated as a company. Insurance sector reforms in 1993, Malhotra
Committee, headed by former Finance secretary and RBI Governor R.N.
Malhotra, were formed to evaluate the Indian insurance industry and
recommend its future direction. The Malhotra Committee was set up with the
objective of completing the reforms initiated in the financial sector. The
reforms were aimed at “ creating a more efficient and competitive financial
system suitable for the requirements of the economy keeping in mind the
structural changes currently underway and recognizing that insurance is an
important part of the overall financial system where it was necessary to
address the need for similar reforms…” In 1994, the committee submitted
the report and some of the key recommendations included:
Parties to contract
There is a difference between the insured and the policy owner, although the owner
and the insured are often the same person. For example, if Joe buys a policy on his
own life, he is both the owner and the insured. But if Jane, his wife, buys a policy
on Joe's life, she is the owner and he is the insured. The policy owner is the
guarantor and he will be the person to pay for the policy. The insured is a
participant in the contract, but not necessarily a party to it. Also, most companies
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allow the payer and owner to be different, e. g. a grandparent paying premiums for
a policy on a child, owned by a grandchild.
The beneficiary receives policy proceeds upon the insured person's death. The
owner designates the beneficiary, but the beneficiary is not a party to the policy.
The owner can change the beneficiary unless the policy has an irrevocable
beneficiary designation. If a policy has an irrevocable beneficiary, any beneficiary
changes, policy assignments, or cash value borrowing would require the agreement
of the original beneficiary.
In cases where the policy owner is not the insured (also referred to as the celui qui
vit or CQV), insurance companies have sought to limit policy purchases to those
11
with an insurable interest in the CQV. For life insurance policies, close family
members and business partners will usually be found to have an insurable interest.
The insurable interest requirement usually demonstrates that the purchaser will
actually suffer some kind of loss if the CQV dies. Such a requirement prevents
people from benefiting from the purchase of purely speculative policies on people
they expect to die. With no insurable interest requirement, the risk that a purchaser
would murder the CQV for insurance proceeds would be great. In at least one case,
an insurance company which sold a policy to a purchaser with no insurable interest
(who later murdered the CQV for the proceeds), was found liable in court for
contributing to the wrongful death of the victim (Liberty National Life v. Weldon,
267 Ala.171 (1957)).
Contract terms
Special exclusions may apply, such as suicide clauses, whereby the policy becomes
null and void if the insured commits suicide within a specified time (usually two
years after the purchase date; some states provide a statutory one-year suicide
clause). Any misrepresentations by the insured on the application may also be
grounds for nullification. Most US states specify a maximum contestability period,
often no more than two years. Only if the insured dies within this period will the
insurer have a legal right to contest the claim on the basis of misrepresentation and
request additional information before deciding whether to pay or deny the claim.
The face amount of the policy is the initial amount that the policy will pay at the
death of the insured or when the policy matures, although the actual death benefit
can provide for greater or lesser than the face amount. The policy matures when
the insured dies or reaches a specified age (such as 100 years old).
The semiotic analysis focuses in the first instance, on symbols. These are identified
as anything that conveys meaning, e.g., words, gestures, images, and dance.
Semiotics studies the problem of encoding, and more generally of the code used.
The object of investigation is the message itself containing different signs that can
be interpreted according to a preestablished intention, without reference to the
consumer and the influence on the consumer behavior. This approach is useful
especially in the context of advertising creation. Authors assess the effectiveness of
advertising in reference either to the language of the message (Barthes, 1964;
Durand, 1964) or the graphic image of the message (Eco, 1979; Mick, 1986; Scott,
1994). However, they analyze the quality of message from the viewpoint of its
construction, its presentation and the place of the communication process. The
impact of the message on the recipient is a minor problem in the process of the
message evaluation. This is an important limitation to the semiotic approach in
terms of marketing.
Communication in general and advertising in particular, were treated by
psychologists starting from the motivations of recipients, which occupy a central
position in the analysis. This is because of their influence on the perception of the
recipient (Mittelstaedt, 1990). They believe that the motivations drive consumer
behavior. So the purpose for the advertising creator, is to identify the reasons of
consumer behavior, in order to identify the most effective advertisement message
or to remove the communication barriers. With the psychological approach, other
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types of research and investigation have emerged, thanks to the contribution of
neuroscience. The evidence (obtained through scientific experimentation) has
become a necessary support to verify the assumptions. The psychological approach
has the advantage to measure the effectiveness of advertising with reference to the
recipient of the message, particularly to the consumers’ characteristics. On the
other hand, the approach does not provide exhaustive answers, not delving into the
exact causes that lead the recipient of the message publicity to expose themselves
voluntarily to the message, decode it, to store and, eventually, to make the
purchase. So it is not taken into account the entire communication process, and, in
particular, the external factors, especially those related to the environment, that
may play a crucial role in determining the behavior of the recipient.
The socio-psychological approach takes simultaneously into account the message
and the recipient of the message. This approach aims to study the effectiveness of
advertising in terms of persuasiveness (Ray, 1982), observing the effects on the
formation process of attention, memory, attitude and behavior (Kapferer, 1990).
This research methodology considers the environment of the communication
process and its actual interactions. The experimentation is widely used. It also
allows to consider all hypotheses tested together, and all the links that may exist
between variables, through a pre-test, getting an advantage in terms of validity of
the research. Rather than focusing solely and exclusively on direct effects of
certain variables taken individually, that is difficult to control in reality, this
approach studies the actual contribution of these variables in explaining the
evolution of the dependent variable, sales.
The major criticisms to the dichotomous model concern the partial evaluation and
the inability to provide reliable breakdowns of the effects achieved by advertising
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and by other company politics (marketing and communication). For these reasons,
sometimes, the three-dimensional models (i.e. AIDA model and model Dagmar)
are preferred. These models are used both in planning advertising campaigns and
evaluating their effectiveness. They propose a hierarchy of communication effects,
cognitive affective and behavioral (Brasini et al. 1993; Marbach and Fabi 2000).
Namely the analysis of cognitive dimension concerns the messages understanding
and storing and must take account of different types of memory: spontaneous
recall, without any added indication; stimulated recall, facilitated by the
presentation of certain evidence; related memory, when respondents are able to
describe at least one specific element of the communication; recognition, or
identification of the advertising; brand allocation, the memory not only of the
advertising but also of the advertised brand).
The affective dimension is linked to the attitude toward and perceptions of
communication. Affective reactions and emotional acceptance of that type of
campaign are investigated. The affective attitude towards the images proposed and
the spread opinion of consumers is detected.
The behavioral dimension describes changes in buying behavior, detectable by
intentions and actions measured by sales and market share.
All the models mentioned so far are mainly focused on three elements of the
communication process: the recipients (in terms of audience, memory, storage), the
media used (in terms of impact, coverage, frequency, etc..) and the feedback (in
terms of attitudes, behaviors, opinions, etc...). They totally omit other elements
(source, code, context) assuming essentially that the communication process was
conducted in optimal conditions or at least without distortion. Moreover a
fundamental element for an effective communication process is the use of the same
code by the source and recipient. Otherwise, the recipient will not understand the
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message or give a different meaning and this will lead to the phenomenon Eco
called "aberrant decoding". However, since as stated by Watzlawich the message is
what we understand, not what it was intended to understand, it becomes important
to examine not so much and not only what the firms wanted to communicate, but
what was actually communicated.
OBJECTIVE OF THE STUDY
To know the most effective media of advertisement
To find out the reason of liking the advertisement of ICICI
To know how they survive in the cutthroat competition.
To know the promotional strategies of ICICI prudential
To know how they face their competitor’s strategies.
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To know number of new player has entered the market and are viewing to
gain the market share in this rapidly improving market.
To understand & measure the impact of advertising in the market.
To measure the effectiveness of advertisement / promotional activities for a
particular product class and corporate advertising.
To understand and measure the affect of advertising in brand-building, brand
re-call and finally the choice of a plan while buying it.
Problem & scope of the study
Problem area:
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A majority of Indian customers being very conservative and averse to risk, trust
was an extremely important factor in the insurance business. Since LIC was a
government owned body, there was an element of security embedded in its
services and products. This proved to be the biggest hurdle for the new
insurance companies as Indian customers were reportedly rather sceptical about
them.
According to industry observers, one of the main reasons for the low
insurance penetration in India was the ineffective distribution and marketing
strategies adopted by LIC. The company reportedly never had any strategic
marketing game plan, and due to its monopolistic nature the need for serious
marketing efforts was never felt. The advertising initiatives were limited to some
print and electronic media advertisements that typically talked about LIC’s
products being great tax saving tool for salaried individuals who came under the
income-tax bracket. Despite all this, LIC was synonymous with insurance in India
and it had established an enviable brand image for itself, especially in the rural
areas and small towns. However, with the entry of new players, the insurance
market changed almost overnight. Analysts commented that the private
48
insurers seemed all set to make the industry marketing-driven, wherein
technical and service excellence would be the key factors of success. The
private companies, in a bid to make their presence felt and their brand noticed,
initiated a series of aggressive marketing and promotion initiatives, something
that buyers of insurance were not accustomed to.
In July 2002, India’s state owned insurer, Life Insurance Corporation of
India (LIC) announced aggressive marketing plans with a budget of around Rs 1
billion. The aim of this unusual decision was to woo customers across the
country through a multimedia campaign including advertisements on the radio
and the press media, the outdoor media and the television. However, this did not
come as a major surprise to industry observers who said that LIC did not have
too many options.
With the insurance bill being passed in 2000, the Indian insurance sector saw a
host of private players enter the market with multinationals as their partners.
These new players resorted to aggressive marketing and advertisement strategies –
something the market had never seen earlier.
It is a known fact that an average consumer is bombarded with so many brands that
he/she cannot remember. In order that product should get through the clutter it is
believed that a single selling message has to be repeated for a large number of
times. Thus the most significant problem with the USP approach to advertising is
that it requires a large media budget to repetitively air the advertisements and such
ads often annoy consumers. And hence instead of creating a consumer base it may
drive away the potential customers as against this, UCP by itself provides solutions
to all the marketing problems poised by the widely accepted USP approach.
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Basically it aims at the core of the problem. It eliminates the problem from the
roots rather than periodic trimming of the tree.
Bridge positioning can play a role in bridging the gap between customer perception
and product USP by relying more on UCP than USP based positioning statement.
Objectives: Objective of the study was to find out finer points of developing bridge
positioning statement and how it can bridge the gap between the UCP and USP.
The study further focused on how bridge positioning can be validated in terms of
sales.
A USP is that distinct and appealing idea that sets your business favorably apart
from every other generic competitor. While A UCP is that distinct and appealing
idea that is built on customers’ perceptions that sets business favorably apart from
every other generic competitor. Brands which had high success has USP=UCP.
This means positioning statement helps to have better brand recall. Thus, Bridge
positioning statement helped to bring brand come nearer to the customers.
Application of bridge positioning helped to generate better sales and achieve status
of leader brands. UCP and USP matching makes the brand recall better and the
positioning statement in these cases can be called Bridge Positioning.
It is quite obvious that only the clear and well-defined USP is not the panacea for
all marketing ills. Today’s trying economic conditions have forced difficult
decisions on companies. Most are making conservative decisions that reflect a
survival mode in business operations. During these difficult times, understanding
what customers think on continuous basis is critical for survival. Most marketers
assume the product USP to stay constant overtime that is contrary to reality.
Companies may have to change the USP to stay contemporary and relevant. It is
obvious that there has to be another parameter that makes a success of the product.
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What companies need to understand is product’s UCP. UCP by itself provides
solutions to all the marketing problems poised by the widely accepted USP
approach. Basically it aims at the core of the problem. It eliminates the problem
from the roots rather than periodic trimming of the tree.
If an Organization fails to recognize the customers’ perception then the initial
surge of customers would quickly come to a screeching halt and the brand would
fade into obscurity along with the organization. On the other hand, following
customer’s perception not only offers an emotionally positive solution to their
needs but also serves to enhance the current customers’ perception of the brand.
Following this with an excellent product/service and customer support will leave
an indelible mark on the existing customer’s memory, which will create brand
loyalty. Bridge positioning was validated in studies by Srivastava(2005) and
Srivastava (2006) by trying Natrilix-SR and Mountain Dew as a test case.
Selection of the brand: Mountain Dew, a lemon drink, with the USP “The Spirit
of Adventure - Do the Dew” is marketed in India. However, this USP failed to
position Mountain Dew in the minds of the consumers as an adventure drink. This
was reflected by stagnant sales of Mountain Dew in the market.
Similarly, Natrilix-SR a diuretic widely used in India was stagnating and not
showing enough growth.
This sudden spurt of advertisements and awareness programs was visible on all the
media channels. Print, electronic and outdoor advertisements of the new private
insurers flooded could be seen everywhere. This prompted many comparisons
of such behavior of insurance companies with the advertising frenzy of the
dotcoms in India not too long ago – with similar full-page advertisements, huge
51
hoardings and costly electronic media advertisements. According to reports, in
the first quarter of the year 2002, insurance companies spent 70% of what was
spent in the whole of 2001, on advertising and publicity. Across the world,
insurance, as a category was one of the largest
spenders on advertising. In India too substantial expenditure was being
incurred due to advertising.
However, during the first year of the entry of new players, while LIC reported a
growth of over 250%, private insurers managed to garner only about 0.5% market
share, in spite of spending hefty amounts on advertising and promotion.
According to reports, LIC’s business increased mainly because of the increased
public awareness about insurance, which was brought about by the heavy
advertisement campaigns of private players.
Scope to:
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The study:
A big boom has been witnessed in Insurance Industry in recent times. A large
number of new players have entered the market and are vying to gain market
share in this rapidly improving market. The study deals advertisement given
by Insurance Companies. The study then goes on to evaluate and analyze the
findings of these advertisements so as to present a clear picture of media strategy
the Insurance players.
The company:
The result of the survey will help the company to know about the effectiveness of
various life insurance advertisements and how much advertisement is helpful in
buying decision. The results will also help the company to trace the loop holes and
then take the corrective measures to rectify them.
The industry
This is a limited study which takes into consideration the responses of 50 people.
This data can be exported to take decision for promotional strategy across
the industry. The significance for the industry lies in studying these trends that
emerge from the study. It is a rapidly changing and evolving sector. People are
53
only beginning to wake up to its vast possibilities. A study like this can
attempt to guide the future of the industry based on current trends.
The researcher
To facilitate and provide all the useful information of the study, the company, the
insurance industry and also provide marketing ways, methods of ICICI Prudential
Life Insurance Co
REVIEW of LITERATURE
54
Review of literature
1.Media exposure in rural market
The rural middle-class constitutes a potential market lying to be tapped by any
industry. There are 16.4 million urban middle-class households and 15.6 million
rural middle class households in the country, but the latter had a better
purchasing power because they do not incur any expenditure on rent,
transport and school fees, compared to their urban counterparts, who spend a
sizable portion of their income on these items.
The estimated annual business from rural markets was Rs 1,23,000 crore,
comprising Rs 65,000 crore of FMCG, Rs 5,000 crore of durables, Rs 45,000 crore
of agricultural inputs including tractors and Rs 8,000 crore of two-wheelers and
four-wheelers. 29% of the rural people own cars, 27%t own colour televisions,
55
24% own refrigerators and 10% own washing machines, which points to the
untapped potential in the rural areas. Another revealing aspect of the market is
that 55% of the LIC policies, 50% of the
BSNL mobile connections, 53% of the FMCG products, 59% of durables,
60%of Rediffmail sign-ups and 50% of online shopping on Rediffmail are
accounted for by the rural sector.
TV impact: The dressing style of the rural people has also changed due to the
impact of the TV. Studies revealed that TV advertisements are not understood by
the rural people who think "they are for the rich". "Being sensitive and relevant to
the requirement of the region should be of utmost importance in the choice of
products, packaging, pricing, promotions, markets and communication,"
Johnston, Jarrod and Madura J. “Valuing the potential transformation of banks into insurance service conglomerates: Evidence from the Citigroup merger” The Financial review 35 (2000): 17-36.
The authors first summarize previous literature that examined motives for combining bank and other insurance services. Diversification benefits and
56
product complementarities (i.e. mortgage and mortgage insurance, auto financing and auto insurance) seem to be the prime motives. However, some earlier research also suggests that there are few linkages between bank services ands underwriting services in terms of customers, outlets, or other characteristics that generate efficiencies. Given the sources of potential gains, it appears that life insurance companies with their limited underwriting risk and wide variety of other products offered to individual customers would be more attractive targets for banks than other types of insurance companies.
Based on these observations, the authors propose to test whether commercial banks, insurance companies, and advertisement firms were favorably affected by the Citigroup/Travelers merger for impending consolidation of financial services firms. They measure the valuation effects resulting from the merger announcement among those commercial banks and financial services firms most likely to be affected and conclude that commercial banks, insurance companies, and advertisement firms have all experienced positive and significant valuation effects upon the announcement of the Citigroup merger. However, the authors find that the valuation effects are more favorable for brokerage firms than for commercial banks and for insurance companies.
Finally, the authors perform a cross-sectional analysis which concludes that the largest banks and the largest brokerage firms experience more favorable valuation than the smaller banks or smaller brokerage firms. Size does not seem to be significant for insurance companies
Walker, Marcus (2002). “Germany’s Commerzbank Is Still in No Man’s Land.” The Wall Street Journal, 7/12/02.
This article on the state of the Commerzbank mentions that tightly focused insurance with strong market shares, such as U.K. insurasnce banks, have made money. Diversified universal banks with no dominant market share such as Commerz bank or Frankfurt rival Dresdner Bank AG have slipped to losses in some quarters, raising doubts about their long term viability.
Elisabetta Corvi
57
Associate Professor of Economics and Business Management
How a company does announced a name change especially when the old name was
well known? How does the company explain itself to constituents who may have
known the company quite well in an earlier incarnation but may be struggling to
figure out what the new organization stands for? How can the company create a
new image while retaining the strengths of the old one? And what role might
corporate advertising play in all this? Corporate advertising can tell a story about
a company as a whole, large organizations may need to use corporate ads to
simplify their image in the minds of key constituents and to show what unifies
the company, despite the geographical spread and variety of its businesses.
We can very well understand the concept of corporate advertising by taking the
example of ICICI Prudential communication. When Company first began
operations, the task was to present the visiting card of the company to the
58
public at large and build credibility and stature and to give the consumer the
confidence that ''here is a company that can be trusted to invest funds with.''
This required a corporate campaign - to establish the brand, build awareness and
give the brand a larger-than-life image.
The advertising idea, which was encapsulated in symbols of protection from the
initial print campaign, culminated in the corporate film where sindhoor was used as
an endearing and lasting symbol of protection.
Once the corporate image and brand identity were established, and as the
company expanded and its product range grew, the next phase of communication
was to give the consumer a rational and tangible reason to buy - first of all
insurance and secondly from ICICI Prudential Life. This was tackled through
product-specific advertising, such as for ICICI Pru Smart Kid, retirement
solutions or Life Time.
Affect of advertising in brand building:
Brand building through corporate advertising, defined generally as advertising
that benefits a company’s image by emphasizing its own resources, skills
and/or character. Many astute business people now recognize corporate brands
as fundamental business assets, and have begun reaching out to customers,
59
prospects, and the financial community by advertising those brands.
Brand building advertising is synonymous with product advertising and is
commonly seen in traditional mass media, including TV, radio, magazine, and
newspaper. Brand building advertisements tend to be product/service- (or
retailer-) oriented with the purpose to establish a positive image and creating
demand for a product or service that leads to eventual purchase. The
communication route is typically one-to-many and is designed to reach a mass
audience by using a tactic of at capturing the attention of users.
Research methodology
Research methodology is a strategy that guides a research in providing
answers to research questions and for this, research survey is being done.
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“Accuracy of the study depends on the systematic application of the method”.
The researcher has to decide the method to be used that helps him to get a desired
direction in a systematic way. This study in the following manner.
Methodology adopted
Questionnaire design:
The questions were designed in an easily understandable way with the help of
(Faculty Guide) .That the respondents may not have any difficulty in answering
them. The questionnaire also contained a comments section. This section was
included so as to get opinion of the people regarding the ICICI Prudential Life
Insurance. For eg.
(Q1.) Which media you mostly use for information?
(Q2.) On which channel you saw insurance ad mostly?
Random sampling
Sampling can be defined as a part of population. Thus random sampling may be
defined as the selection of a portion from the whole population in which
each elements of the population has an equal chance of being selected. A more
please definition is that each element in the population has a non-zero and
known probability of selection a randomly drawn sample is an unbiased sample.
In this research survey 50 people were surveyed at random to get the relevant
information..
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Sample unit: The respondents who were asked to fill out questionnaires
are the sampling units. These comprise of employees of MNCs, Govt.
Employees, and Self Employed etc.
Sample size: The sample size was restricted to only 50 between age group
of 25-40, which comprised of mainly peoples from different regions of India.
Sample area: The area of the research was Delhi Metro Railway Quarters, New
Delhi, India.
Data collection
Structure questionnaire :
In this collection data, structured questionnaire is used as a tool by asking a
set of standardized questions to know the effect of Life Insurance Advertisement
and behavior of the people for the ICICI Prudential Life Insurance.
Interview:
The next step involved in collecting information requires discussion with people.
Thus valuable information was gathered informal friendly talks with the people.
Secondary data collection:
Various websites were consulted to collect literature relevant to the topic.
62
Interpretation:
Interpretation refers to the task of drawing inference from the collected facts
after an analytical study, in fact it is a search for broader meaning of research
findings it is through interpretation that the researcher can well understand the
abstract principle that respondents beneath his findings. The simple statistical
tools will used to analyze the data collection, Bar Graphs and pie chart have
been used to illustrate the findings diagrammatically. The scores for
advertisement were compiled on spontaneous recall, aided recall and
likeability. The top ads are selected on the basis of their score.
DATA ANALYSIS
63
Data Analysis
It includes advertisement scenario of insurance industry in the soaring mass
market available in India based on the survey conducted
1) Q1. Which media you mostly use for information/entertainment?
Percentage Responses
Tele Vision 42.0 21
Newspaper 36.0 18
Internet 14.0 7
Radio 8.0 4
Total responses: 50
64
tv42%
news paper36%
internet14%
radio8%
media
36% people recommend newspaper for info. 42% tv, 14% internet and and 8% radio.
Q2. How often do you share interesting advertising with your family or friends?
Percentage Responses
Never 8.0 4
Rarely 28.0 14
65
Sometimes 52.0 26
Often 8.0 4
Very often 4.0 2
Total responses: 50
never8%
rarely28%
sometimes52%
often8%
very often4%
Advertising
According to the above fig. 52% sometime like to share with friend and family, 28
% rarely share 8% often and 8% never.
66
Q3. Have you saw any Life Insurance Product Ad?
Percentage Responses
Yes 96.0% 48
No 4.0% 2
Total responses: 50
67
yes96%
no4%
LIC ad
96% people like seeing lic ad and there are very few who didn’t see.
Q4. On Which channel you saw Insurance ad mostly?
Percentage Responses
Zee T.V 14.0 7
Sony 26.0 13
68
Star 4.0 2
News Channel 56.0 28
Total responses: 50
zee tv14%
sony26%
star4%
news channel56%
channel
56% likely to see insurance ad on news channel. 26% on sony tv 14% on zee tv. And 4% on star...tv.
69
Q5. Which company ad you find mostly? Rank Them..
Average Score Responses
Life Insurance Corporation of India 1.22 / 5 50
HDFC Std. Life Insurance Co. Ltd. 2.84 / 5 50
Birla Sun Life Insurance Co. Ltd. 3.96 / 5 50
ICICI Pru. Life Insurance Co. Ltd. 2.16 / 5 50
Reliance Life Insurance Co. Ltd. 4.82 / 5 50
4.82 / 5
70
LIC of india8%
HDFC 19%
BIRLA SUN LIFE26%ICICI PRU.
14%
RELIANCE LIFE32%
Above fig. Say that27% people mostly find birla life insurance 14% icici 32%
reliance life insurance 8% lic of india and 19% hdfc....
Q6. Can you recall the content of the Ad of any life insurance company?
Percentage Responses
71
Yes 94.0% 47
No 6.0% 3
Total responses: 50
YES94%
NO6%
ADVETISEMENT
Above fig. Say that The punch line of ad were so exiting that 94% people can easily recall the ad. And 6% not.
72
Q7. Before buying a product do you pay attention to the Brand Name?
Percentage Responses
Yes 80.0% 40
No 20.0% 10
Tot al responses: 50
73
YES80%
NO20%
ATTENTION
Above fig. Say that 80% say yes paying attention on brand and 20% say no.
Q8. Which of the Insurance Policy would you like to buy?
Average Score Responses
74
Life Plan 1.66 / 4 50
Health Plan 2.36 / 4 50
Child Plan 2.28 / 4 50
Retirement Plan 3.70 / 4 50
1.70 / 4
Life plan17%
health plan24%
child plan23%
retirement plan37%
insurance policy
In today scenario we find the people were more secure about there child future plan that why 23% of people focus on child plan and 37% on retirement plan. 17% on life plan 23% on health plan.
75
Q9. Other than T.V Where you saw Life insurance ad?
Average Score Responses
Internet 2.14 / 5 50
Newspaper 1.36 / 5 50
Holdings 2.78 / 5 50
Friends/Family 4.10 / 5 50
Radio 4.62 / 5 50
4.62 / 5
76
internet14%
newspaper9%
holding19%friends/family
27%
radio31%
lic ad.
Above fig. Say 31% see the ad on radio 14% on internet 9% on newspaper and 27% through friends and family .
Q10. Do you think this ad has influence you to.....
Percentage
response
77
Buy the insurance policy 60% 45
Recommend the insurance policy 20% 10
Suggest the insurance policy 15% 5
Would you like to inform 5% 2
Buy the insurance policy 60%
Recommend the insurance policy
20%
Suggest the insurance
policy
15%
Would you like to inform
5%
Above fig. Say that 60% were influence to buy the insurance 20% recommend
policy 15% suggest and 5%like to inform.
78
Q11. Can you recall if your family members ever tried to influence you to
buy/secure a life insurance Policy from the insurance company of her
interest?
Percentage response
Yes 80% 66
No 20% 10
yes80%
n020%
Above fig. say that 80% of family member influence us to buy a insurance of own
interest and 20% not....
79
Q12. Based on the feature ad in that ad rank them....
percentage
response
The ad msg is understandable 66% 42
The ad msg is relevant to me 11%
24
The ad is reliable 18%
18
The benefit describe in the ad are believable to me... 5% 3
80
The ad msg is understand-able
66%
The ad msg is relevant to
me
11%
The ad is re-liable
18%
The benefit describe in the ad are believable to me...
5%
Above fig. Say that 66% people can easily understand the message and for 18% ad
is reliable 11% say it relevant to me and 5% say benefit describe in is believable to
me....
81
USE AND IMPORTANCE OF STUDY
Use and importance of study
To know the benchmark between insurance company
Increase the effectiveness of the company
Can help in increasing the efficiency of the advertisement of the ICICI
prudential life insurance.
Help in better knowing the customer demand and also increasing the
customer relation.
82
The Authority shall be informed at the time of filing the advertisement
the extent of change the original advertisement Insurance
company advertisements.
Every insurance company shall be required to prominently disclose
in the advertisement and that part of the advertisement that is required to
be returned to the company or insurance intermediary or insurance
agent by a prospect or an insured the full particulars of the insurance
company, and not merely any trade name or monogram or logo.
Where benefits are more than briefly described, the form number of the
policy and the type of coverage shall be disclosed fully.
.
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SUGGESTION
In the preceding part of the report we have seen that people already have
awareness about the company but they are not aware about products of the ICICI
Prudential Co. Ltd; therefore the main objective of the company should be to:
Create awareness among people about its products and tell the
benefit of having product of ICICI Prudential.
Build a strong repo and credential in the market so asto counter
main rival LIC.
The insurance sector has largely stuck to images of happy families, carefree
couples and cute babies. We have to use a different route to break the
clutter.Humor and endorsement of celebrities is some of the routes available
to this.
Rural India is very big and untapped market full of opportunities. Therefore
in order to do so ICICI Prudential should come in front for development
of rural sector, by way of establishing a school, by digging a well in villages.
84
May be it seems like a fool’ s suggestion but it is one of the way to gain trust
in rural sector
We can also use to advertise us by using the way of “
Puppetry, Nautanki ,Tamasha etc.” If we adopt this technique then I am
sure that this will be most creative and cheaper advertisement all over the
world And by this way ICICI Prudential can again list their name in top
advertiser.
We should use correct media mix and appropriate channels in order to reach
maximum people and convey message to them
85
CONCLUSION
86
conclusion
In concluding part of this project it shows that advertisement is very much
important for any business but advertisement alone do not account for company’s
success.
•From the above findings, we come to know that life insurance companies have
very good visibility. Most of the time people are able to recall the advertisements.
People notices majority of advertisement on Television followed by Newspapers.
The role of other media such as Internet, Radio, etc. needs be enhanced and
groomed along with T.V and Newspaper. Media such as internet, telephone and
family/friends can be used with great deal in the advertisement because it has
greater impact on the user due to its interactive nature.
87
•In television channels, entertainment channels lead in the frequency of life
insurance ads. They have also greater relative visibility in comparison of other
channels therefore advertise r needs to identify the proper slot and timing for their
advertisements according to their budget.
•In the content part of ads, people agrees that they understandthe advertisement
shown but they don’t find relevancy and somewhat have not bee n prompted by
those ad to buy thepolicy. Therefore, efforts should be made to make
advertisements more trustworthy and innovative so that peoplecan be persuaded to
buy the policies. Each ad should speakabout how their firm’s offers can help
customers instead of telling how insurance as a whole can help you.
•On the frequency part, HDFC standard life insurance company leads in the
advertisements. ICICI Prudential closely follows with slightly lesser points. But
when talking about company ranking according to the perception of the peoples,
ICICI Prudential leads in the table. Here HDFC is at third position next to the
Tata AIG. So, we can judge that number or frequency of the advertisement is not
enough to make favorableimage for the companies; there are some other factors
alsowhich are responsible for company’s credentials. So, companyshould have
better public relation, public awareness programand strong corporate philanthropy
to have positive image inpublic and sell their products Secondary data
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N. Delhi, New Age International Publication
ii. Green, Paul, Tull (2002) “Research for MarketingDecisions”, N. Delhi,
Prentice-Hall of India
iii. Sharma D.D. (2008), “Marketing Research: PrincipleApplication & Cases” N.
Delhi, Sultan Chand & Sons
91
iv . Belch, Mandelchge (6thEdition, Tata McGraw Hill),Advertising and
Promotion.
v. Batra (5thedition, Pearson Prentice Hall) Advertising Management.
vi. Kotler P. (1999), “Marketing Management”, N. Delhi,Prentice-Hall of India.
vii. Jha S.M. (2003), “Services Marketing”,N. Delhi, Himalaya Publishing
House
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viii. Bitner M.J. (2008), “Services Marketing” N. Delhi, TataMcGraw-Hill
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WEBSITES : http://www.iciciprulife.com ii. http://www.managementparadise.com iii. http://www.businessworld.in iv. http://www.outlookindia.com v. http://en.wikipedia.org/wiki/icici_prudential vi. http://www.irdaindia.org vii. http://www.business-standard.com