STUDY OF PROMOTIONAL STRATEGY OF IDBI FEDERAL LIC

Presented by

Nisha david .J

OBJECTIVES
Primary Objective Sale of Income Insurance policy and Study of effectiveness of promotional strategies of IDBI Federal LIC. Secondary Objective SWOT analysis

SCOPE OF THE STUDY

The result of the survey will help the company to know about the effectiveness of insurance advertisements and how much advertisement is helpful in buying decision. The results will also help the company to take the corrective measures to make the advertisement more effective.

MAJOR PROBLEM IN CREATING SALES

Insurance was not seen as a best investment method. In most of the cases the employee was a member of the group insurance policy in which the premium amount was credited from their salary. Many have already invested in too many policies. Many were highly dissatisfied with various insurance policies and were reluctant to know about any new insurance policy.

MAJOR PROBLEM IN CREATING SALES

Many of the insurance agents have sold insurance with fake details. So many were not ready to believe the product features. Many of the target customers in twenties who are unmarried felt that this is not the right time for them to invest in insurance. They wish to avail insurance only after marriage to safeguard their family.

VARIOUS PROMOTIONAL STRATEGIES OF IDBI FEDERAL

Commercial Ads Print Ads Events Personnel selling Word of mouth Viral marketing

FACTS AND FINDINGS FROM ANALYSIS

The survey shows how much brand awareness is important. Majority of the public goes behind brand name.89% of the respondents agree that they pay attention to brand name before purchase. The survey result says that IDBI Federal has good brand image. 76% of the respondents record that Insurance is mainly taken as a tax saving instruments.14% of the respondents consider security as the major concern while availing insurance. Product awareness is very low. As per the survey result 72% of the respondent record that they are not aware of IDBI federal Insurance plans

FACTS AND FINDINGS FROM ANALYSIS

The advertisement has not made a good reach to Majority of the respondent .Only 52% of the respondent are aware of the advertisements.

Television ads has made a major reach of 27%. nearly 11% of the population has come to know about the policies through friends and relatives 7% through hoardings 2%through pamphlets and Magazine ads has made a minimum reach of 1%.

Majority of the respondents agree that the ad is good and has a emotional appeal. 56% of the respondents would consider buying the product after viewing the ad,23% would recommend the product and 31% would do both.

FACTS AND FINDINGS FROM ANALYSIS

70% of the population agree that the ad clearly explains the benefits of the product. 74% of the respondents feel that IDBI Federal is not a safe place to invest their money. They do not trust private players. Government organizations are of top priority. People consider it more secure. Among the respondents who are aware of the ads 89% can recall the content of it. 48% of the respondents show willingness to buy the IDBI Federal insurance product. Liking an advertisement does not mean that public would like to buy that product.

SWOT ANALYSIS
STRENGHTS Brand name effective service Good products WEAKNESSES Late entry Fewer branches Less popularity in rural areas Lower customer confidence on private players.

SWOT ANALYSIS
OPPORTUNITY Large untapped Indian market. With such a large population and the untapped market area of the population Insurance happens to be a very big opportunity in India. Nearly 80% of Indian populations are without insurance cover. Can go for product diversification. Innovative products and aggressive distribution.

SWOT ANALYSIS
THREAT Increased competition in the insurance sector. Increase in the number of new players in this sector Lack of infrastructure in rural areas could constrain investment.

RECOMMENDATIONS
The penetration of insurance in India is around 22%. A vast majority of rural population is not covered. The rural market is vibrant and holds tremendous potential for growth of insurance business, particularly because of the strong saving habit. New insurance product that suits rural needs like crop insurance, weather insurance should be introduced. In rural areas direct selling would work the best. The product can also be sold with the help of nongovernment organization, self help groups and microfinance institutions.

RECOMMENDATIONS
IDBI Federal ads should be telecasted in regional channels .This would make a reach to a larger population. This would increase the brand and product awareness. Group life cover policies can be provided to major corporate organization employees with special offers like lower premium or as such. Corporate tie ups would be highly beneficial in increasing the sale at larger number. Instead of pamphlets, Emergency Info Wallet Cards can be given along with policy details. People would have those with them which would again contribute to the brand recall.

RECOMMENDATIONS
Pay-Per-Click Search Engine Advertising can be done. This would enable us to know the population interested in insurance and also would be economical. IDBI federal should be positioned as a safe place to invest money through ads. Advantages over the competitors can be highlighted to make the product more appealable. Hoardings at prime areas should be used. This can improve the Brand image of IDBI Federal.