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ASSIGNMENT

ON

STRATEGIC MARKETING MANAGEMENT

A CASE STUDY OF ICICI

PRUDENTIAL LIFE INSURANCE

COMPANY LIMITED

ASSIGNMENT

ON

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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

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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

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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.

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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

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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