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    ASSIGNMENT

    ON

    STRATEGIC MARKETING MANAGEMENT

    A CASE STUDY OF ICICI

    PRUDENTIAL LIFE INSURANCE

    COMPANY LIMITED

    ASSIGNMENT

    ON

    1

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    STRATEGIC MARKETING MANAGEMENT

    A CASE STUDY OF ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED

    Table of Contents

    Contents Pages

    Introduction -

    Background -

    Marketing Strategy Process -

    Marketing vs. Corporate Strategy -

    Strategic Positioning -

    Relationship Marketing -

    Strategic Objectives of ICICI Prudential -

    Environmental Analysis -

    SWOT Analysis - -

    Internal Analysis -

    Impact of Globalisation -

    Conclusion -

    INTRODUCTION

    Marketing has a significant role in this modern, consumer- driven and ultra competitive

    global market. The definitions of marketing are varied from author to author and it may be

    2

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    functional or strategic. (M.S.Wilson & Gilligan, 2008) In my point of view marketing is a

    technique applied by persons, natural or corporate to reach their product or services into the

    hands of customers with the objective of their survival in the competitive market,

    maximisation of profit and customer satisfaction.

    In this essay my endeavour is to discuss and explain the marketing management strategy,

    various marketing tools, its implementation etc., through my chosen organisation ICICI

    PRUDENTIAL LIFE INSURANCE COMPANY, herein after referred as the case

    understudy is a market leader in the private life insurance sector in India.

    BACKGROUND

    The case under study is ICICI PRUDENTIAL LIFE INSURANCE COMPANY a joint

    venture between ICICI bank, Indias largest private bank and prudential plc a UK based

    international financial service group. The total capital of the company is 47.80 billion. The

    company started its operation in December 2000, presently it own 1,900 branches with over

    210,000 Insurance advisors and tie ups with 7 bank assurance partners. (ICICI

    PRUDENTIAL LIFE INSURANCE , 2010).

    The case understudy is a service based industry and its product range is varies from pure life

    insurance products to insurance based financial products , market linked short term mutual

    funds to long term financial products including pension funds. (ICICI PRUDENTIAL LIFE

    INSURANCE , 2010)

    A close examination of the Indian life insurance market untill the end of 1990s reveals the

    supreme domination of LIC. After the nationalisation of Indian insurance sector in 1956, in

    India life insurance was meant LIC or Life insurance Corporation, an Indian Government

    undertaking .Indian Insurance market was a fine example of Pure monopoly market

    dominated by the LIC untill the Congress led government had finally opened the insurance

    market for private players under the new economic policies in line with privatisation and

    3

    http://en.wikipedia.org/wiki/Indian_rupee
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    globalisation.It was the beginning of a new economic era in indias economic

    development.The market had all the features of a pure monopoly market.

    (Insurance Regulatory Development Authority, 2007)

    Task 1(a)

    MARKETING STRATEGY PROCESS

    Marketing strategy of an organisation is framed in line with its long term strategy or the

    corporate startegy.marketing strategy is a plan that coordinate product developemnt,

    promotion, distribution and pricing of the organisations product or services and identifies the

    the goals of the organisation and tells how that goals can be achived in a specific time frame

    by the application of marketing teqniques of segmentation, targeting and competitive

    positioning.The very purpose behind the formulation of marketing strategy is to ensure and

    achieve a long term, sustainable competitive position in the market with a view to gain profit

    and stakeholder value.Marketing strategy tries to identify the needs of the customers in order

    to ensure their satisfaction by applying strong commuication tools.Marketing strategy tries to

    develop a positioning in the market for catching customers in a competitive market consists

    of different market players by applying targeting and positioning .It inorder to deliver

    maximum satisfaction to the customer impliment its plan in an organised manner by the

    allocation of its resourses. (Payne, Christopher, Clarke, & Peck, 1995)

    Corporate strategy is the strategy of an organisation and if defines it as a pattern of decisions

    for achieving objectives, goals, or purposes and the devising of policies and decisions for the

    accomplishment of the pre-set goals, and define the business of the organisation to pursue the

    contributions it is proposed to provide to the stakeholders viz., employees, customers and the

    general world. (Andrews, 1987). If we follow the gist of the above definition the case under

    study formulated its strategy much similar to it. Corporate strategy of the case understudy is

    moulded more or less in line with its mission , vision, values and objective.The Companys

    stated vision will become the dominant player in life , health and pension insurance founded

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    on trust supported by the world class people and service.The company hope to achive this

    vision by understanding the customers and cattering them world class product and services,

    upgrade the technolgy and serve customers quickly, efficiently and conveniently, develop and

    impliment advanced risk management and investment strategies to sustainable and stable

    returns to the policy holders, provide an environment to foster growth and learning to the

    employees, and mostly build transperancy in all dealings of the company.(ICICI

    PRUDENTIAL Life Insurance).The values of the case under study is closely connected with

    Integrity, Customer first, Boundaryless,ownership, and passion.

    Task 1(b)

    The process of marketing strategy dealt with how organisations develope their marketing

    startegy in order to achieve a sutainable , longterm competitive positioning in the market for

    maximise their profit and delivering value and satisfaction to the customer .The process of

    marketing startegy involves mainly three stages.The first stage is building of a core startegy,

    creation of the organisations competitive positioning and the third stage is the

    implimentation of the core startegy.

    The process of strategy can be illustrated with the help of a diagram.

    5

    Business

    Purpose

    Core

    Strategy

    Environment

    Analysis

    Company

    Analysis

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    Source: (Hooly, Piercy, & Nicoulad, 2008)

    The First stage of the process of marketing strategy is the establishment of a ccore buisiness

    strategy.The core strategy is established after a detailed internal auditing and a through

    environmental anlysis .The internal auditing is carried with a view to identify the current

    strenght and weekness of the organisation .It is carried out with SWOT analysis.The

    opportunity and Threat are external factors and it is carried out side the organisation .The

    environmental analysis is done with PESTEL, it find out the political, Economic, Social,

    Technological, Environmental and legal factors and how it affect and influence the

    organisation.

    The second stage is the creation of a competitive positioning of the product or services ,

    whichever may offered by the organisation.It is done by applying the marketing teqniques of

    segmentation and targeting of the market inorder to identify the customers and competitors of

    6

    Market

    Target

    Control Organisati

    on

    Marketing

    Mix

    Competiti

    ve

    Positionin

    Competiti

    ve

    Advantag

    e

    Implementation

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    the organisaton.The comparitive advantage of the company over other market players in the

    market also essential for the creation of an organisations positioning.

    The final stage of the process is the implimentation of the marketing strategy .The marketing

    strategy is implimented with a combination of development of products, pricing, promotion

    and distribution of the products or services offered by the organisation.later it will assessd by

    using the tool of control and find out whether the implimented strategy is successful and how

    effective the startegy for the sustainable , longterm succes of the organisation. (Hooly, Piercy,

    & Nicoulad, 2008)

    Task 2(a)

    MODELS OF PRODUCT-PORTFOLIO

    In the proces of the formulation of the marketing strategy or the strategic planning stage the

    key emphasis is on the analysis of the product portfolio.The startegic planning is consists of

    the definition of the vision and mission, establishing of organisations stategic buisinesss units

    , evaluate the current buisiness portfolios and finaly find out new areas of opportunities to

    enter into the market.

    There a number of buisiness portfolio analysis and these are BCGs growth-share and growth

    gain matrices, the General Electric multi factor portfolio model, Shell directional policy

    matrix, Abell and hammonds 3x3matrix etc.

    My sincere attampt here