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)

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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

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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

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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).

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Costs, insurability and underwriting

The insurer (the life insurance company) calculates the policy prices with intent to

fund claims to be paid and administrative costs, and to make a profit. The cost of

insurance is determined using mortality tables calculated by actuaries. Actuaries

are professionals who employ actuarial science, which is based on mathematics

(primarily probability and statistics). Mortality tables are statistically based tables

showing expected annual mortality rates. It is possible to derive life expectancy

estimates from these mortality assumptions. Such estimates can be important in

taxation regulation.

The three main variables in a mortality table are commonly age, gender, and use

of tobacco, but more recently in the US, preferred class-specific tables have been

introduced. The mortality tables provide a baseline for the cost of insurance, but in

practice these mortality tables are used in conjunction with the health and family

history of the individual applying for a policy to determine premiums and

insurability. Mortality tables currently in use by life insurance companies in the

United States are individually modified by each company using pooled industry

experience studies as a starting point. In the 1980s and 90s, the SOA 1975–80

Basic Select & Ultimate tables were the typical reference points, while the 2001

VBT and 2001 CSO tables were published more recently. The newer tables include

separate mortality tables for smokers and non-smokers, and the CSO tables include

separate tables for preferred classes.

Recent US mortality tables predict that roughly 0.35 in 1,000 non-smoking males

aged 25 will die during the first year of coverage after underwriting. Mortality

approximately doubles for every extra ten years of age, so the mortality rate in the

first year for underwritten non-smoking men is about 2.5 in 1,000 people at age

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65.Compare this with the US population male mortality rates of 1.3 per 1,000 at

age 25 and 19.3 at age 65 (without regard to health or smoking status).

The mortality of underwritten persons rises much more quickly than the general

population. At the end of 10 years the mortality of that 25 year-old, non-smoking

male is 0.66/1000/year. Consequently, in a group of one thousand 25-year-old

males with a $100,000 policy, all of average health, a life insurance company

would have to collect approximately $50 a year from each participant to cover the

relatively few expected claims. (0.35 to 0.66 expected deaths in each year x

$100,000 payout per death = $35 per policy). Other costs, such as administrative

and sales expenses, also need to be considered when setting the premiums. A 10

year policy for a 25-year-old non-smoking male with preferred medical history

may get offers as low as $90 per year for a $100,000 policy in the competitive US

life insurance market.

Most of the revenue received by insurance companies consists of premiums paid

by policy holders, with some additional money being made through the investment

of some of the cash raised from premiums. Rates charged for life insurance

increase with the insurer's age because, statistically, people are more likely to die

as they get older. The insurance company will investigate the health of and

applicant for a policy to assess the likelihood of incurring a claim, in the same way

that a bank would investigate an applicant for a loan to assess the likelihood of a

default. Group Insurancepolicies are an exception to this. This investigation and

resulting evaluation of the risk is termed underwriting. Health and lifestyle

questions are asked, with certain responses or revelations possibly meriting further

investigation. Life insurance companies in the United States support the Medical

Information Bureau (MIB), which is a clearing house of information on persons

who have applied for life insurance with participating companies in the last seven

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years. As part of the application, the insurer often requires the applicant's

permission to obtain information from their physicians.

Underwriters will determine the purpose of insurance; the most common being to

protect the owner's family or financial interests in the event of the insured's death.

Other purposes include estate planning or, in the case of cash-value contracts,

investment for retirement planning. Bank loans or buy-sell provisions of business

agreements are another acceptable purpose.

Life insurance companies are never legally required underwrite or to provide

coverage to anyone, with the exception of Civil Rights Act compliance

requirements. Insurance companies alone determine insurability, and some people,

for their own health or lifestyle reasons, are deemed uninsurable. The policy can be

declined or rated (increasing the premium amount to compensate for a greater

probability of a claim).

Many companies separate applicants into four general categories. These categories

are preferred best, preferred, standard, and tobacco.] Preferred best is reserved

only for the healthiest individuals in the general population. This may mean, that

the proposed insured has no adverse medical history, is not under medication for

any condition, and his family (immediate and extended) have no history of early-

onset cancer, diabetes, or other conditions .Preferred means that the proposed

insured is currently under medication for a medical condition and has a family

history of particular illnesses. Most people are in the standard category. Profession,

travel history, and lifestyle factor into whether the proposed insured will be granted

a policy, and which category the insured falls. For example, a person who would

otherwise be classified as preferred best may be denied a policy if he or she travels

to a high risk country. Underwriting practices can vary from insurer to insurer,

encouraging competition.

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Death proceeds

Upon the insured's death, the insurer requires acceptable proof of death before it

pays the claim. The normal minimum proof required is a death certificate, and the

insurer's claim form completed, signed (and typically notarized).If the insured's

death is suspicious and the policy amount is large, the insurer may investigate the

circumstances surrounding the death before deciding whether it has an obligation

to pay the claim.

Payment from the policy may be as a lump sum or as an annuity, which is paid in

regular installments for either a specified period or for the beneficiary's lifetime.

Insurance vs assurance

The specific uses of the terms "insurance" and "assurance" are sometimes

confused. In general, in jurisdictions where both terms are used, "insurance" refers

to providing coverage for an event that might happen (fire, theft, flood, etc.), while

"assurance" is the provision of coverage for an event that is certain to happen. In

the United States both forms of coverage are called "insurance", for reasons of

simplicity in companies selling both products.

Types

Life insurance may be divided into two basic classes: temporary and permanent; or

the following subclasses: term, universal, whole life and endowment life insurance.

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Term insurance

Term assurance provides life insurance coverage for a specified term. The policy

does not accumulate cash value. Term is generally considered "pure" insurance,

where the premium buys protection in the event of death and nothing else.

There are three key factors to be considered in term insurance:

1. Face amount (protection or death benefit),

2. Premium to be paid (cost to the insured), and

3. Length of coverage (term).

Various insurance companies sell term insurance with many different combinations

of these three parameters. The face amount can remain constant or decline. The

term can be for one or more years. The premium can remain level or increase.

Common types of term insurance include level, annual

renewable and mortgage insurance.

Level term policy features a premium fixed for a period longer than a year. These

terms are commonly 5, 10, 15, 20, 25, 30 and even 35 years. Level term is often

used for long-term planning and asset management as premiums remain constant

year to year, allowing for long-term budgeting. At the end of the term, some

policies contain a renewal or conversion option. With guaranteed renewal, the

insurance company guarantees it will issue a policy of an equal or lesser amount

without regard to the insurability of the insured and with a premium set for the

insured's age at that time. Some companies however do not guarantee renewal, and

require proof of insurability at the time of renewal. Renewal that requires proof of

insurability often includes a conversion option that allows the insured to convert

the term policy to a permanent one, possibly compelling the applicant to agree to

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higher premiums. Renewal and conversion options can be very important when

selecting a policy.

Annual renewable term is a one-year policy, but the insurance company guarantees

it will issue a policy of an equal or lesser amount regardless of the insurability of

the applicant, and with a premium set for the applicant's age at that time.

Another common type of term insurance is mortgage life insurance, which usually

involves a level-premium, declining face value policy. The face amount is intended

to equal the amount of the mortgage on the policy owner's property, such that any

outstanding amount on the applicant's mortgage will be paid should the applicant

die.

A policy holder insures his life for a specified term. If he dies before that specified

term is up (with the exception of suicide), his estate or named beneficiary receives

a payout. If he does not die before the term is up, he receives nothing. However, in

some European countries (notably Serbia), insurance policy is such that the policy

holder receives the amount he has insured himself to, or the amount he has paid to

the insurance company in total. Suicide used to be excluded from all insurance

policies However, after a number of court judgements, many insurers began

awarding payouts in the event of suicide (except for cases where it can be

demonstrated that the insured committed suicide solely to access the policy

payout). Generally, if an insured person commits suicide within the first two policy

years, the insurer will simply return the premiums paid as a compromise. After this

period, the full death benefit may be paid in the event of suicide.

Permanent life insurance

Permanent life insurance is life insurance that remains active until the policy

matures, unless the owner fails to pay the premium when due. The policy cannot

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be cancelled by the insurer for any reason except fraudulent application, and any

such cancellation must occur within a period of time defined by law (usually two

years). A permanent insurance policy accumulates a cash value, reducing the risk

to which the insurance company is exposed, and thus the insurance expense over

time. This means that a policy with a million dollar face value can be relatively

expensive to a 70-year-old. The owner can access the money in the cash value by

withdrawing money, borrowing the cash value, or surrendering the policy and

receiving the surrender value.

The four basic types of permanent insurance are whole life, universal life, limited

pay and endowment.

Whole life coverage

Whole life insurance provides lifetime death benefit coverage for a level premium

in most cases. Premiums are much higher than term insurance at younger ages, but

as term insurance premiums rise with age at each renewal, the cumulative value of

all premiums paid across a life time are roughly equal if policies are maintained

until average life expectancy. Part of the insurance contract stipulates that the

policyholder is entitled to a cash value reserve, which is part of the policy and

guaranteed by the company. This cash value can be accessed at any time

through policy loans and are received income tax free. Policy loans are available

until the insured's death. If there are any unpaid loans upon death, the insurer

subtracts the loan amount from the death benefit and pays the remainder to the

beneficiary named in the policy.

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While the marketing divisions of some life insurance companies often explain

whole life as a "death benefit with a savings component", this distinction is

artificial according to life insurance actuaries Albert E. Easton and Timothy F.

Harris The cash value reserve builds up against the death benefit of the policy and

reduces the net amount at risk. The net amount at risk is the amount the insurer

must pay to the beneficiary should the insured die before the policy has

accumulated an amount equal to the death benefit. It is the difference between the

current cash value amount and the total death benefit amount. Because of this

relationship between the cash value and death benefit, it may be more accurate to

describe the policy as a single, indivisible product, as no actual separation of the

cash value and death benefit is possible. The insurer is actually setting aside money

as a cash reserve to pay the future death benefit claim. This suggests that the cash

value is technically part of the death benefit, which is "earned" as cash over time.

The lack of separation between the cash value and death benefit also explains why

insurers do not pay both the death benefit and the cash value to the beneficiary.

The advantages of whole life insurance are guaranteed death benefits, guaranteed

cash values, fixed, predictable annual premiums and mortality and expense charges

that will not reduce the cash value of the policy. The disadvantages of whole life

are inflexibility of premiums and the fact that the internal rate of return in the

policy may not be competitive with other savings alternatives. Riders are available

that can allow one to increase the death benefit by paying additional premium. One

such rider is a paid-up additions rider.

The death benefit can also be increased through the use of policy dividends, though

these dividends cannot be guaranteed and may be higher or lower than historical

rates over time. According to internal documents from some life insurance

companies, like Massachusetts Mutual, the internal rate of return and dividend

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payment realized by the policyholder is often a function of when the policyholder

buys the policy and how long that policy remains in force. Dividends paid on a

whole life policy can be utilized in many ways. First, if "paid-up additions" is

elected, dividends will purchase additional death benefit which will increase the

death benefit of the policy to the named beneficiary. Since this additional death

benefit generates cash value, it also increases the cash value of the policy. Another

alternative is to opt in for 'reduced premiums' on some policies. This reduces the

owed premiums by the non-guaranteed dividends amount. A third option allows

the owner to take the dividends as they are paid out (although some policies

provide other/different/less options than these - it depends on the company for

some cases). A final option is to invest the dividends in the insurance company's

general or separate account.

Universal life coverage

Universal life insurance (UL) is a relatively new insurance product, intended to

combine permanent insurance coverage with greater flexibility in premium

payment, along with the potential for greater growth of cash values. There are

several types of universal life insurance policies which include interest

sensitive (also known as "traditional fixed universal life insurance"), variable

universal life (VUL),guaranteed death benefit, and equity indexed universal life

insurance.

A universal life insurance policy includes a cash value. Premiums increase the cash

values, but the cost of insurance (along with any other charges assessed by the

insurance company) reduces cash values. However, with the exception of VUL,

interest is paid at a rate specified by the company, further increasing cash values.

With VUL, cash values will ebb and flow relative to the performance of the

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investment sub-accounts the policy owner has chosen. The surrender value of the

policy is the amount payable to the policy owner after applicable surrender

charges, if any.

Universal life insurance addresses the perceived disadvantages of whole life –

namely that premiums and death benefit are fixed. With universal life, both the

premiums and death benefit are flexible. Except with regards to guaranteed death

benefit universal life, this flexibility comes the disadvantage of reduced

guarantees.

Depending on how interest is credited, the internal rate of return can be higher as it

moves with prevailing interest rates (interest-sensitive) or the financial markets

(equity indexed universal life andvariable universal life). Mortality costs and

administrative charges are known, and cash value may be considered more easily

attainable because the owner can discontinue premiums if the cash value allows

this.

Flexible death benefit means the policy owner can choose to decrease the death

benefit. The death benefit could also be increased by the policy owner, but that

would typically require the insured to go through a new underwriting. Another

feature of flexible death benefit is the ability to choose from option A or option B

death benefits, and to change those options during the life of the insured. Option A

is often referred to as a level death benefit. Generally speaking, the death benefit

will remain level for the life of the insured and premiums are expected to be lower

than policies with an Option B death benefit. Option B pays the face amount plus

the cash value. If cash values grow over time, so would the death benefit which is

payable to the insured's beneficiaries. If cash values decline, the death benefit

would also decline. Presumably, option B death benefit policies would require

higher premiums than option A policies.

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Limited-pay

Another type of permanent insurance is Limited-pay life insurance, in which all the

premiums are paid over a specified period after which no additional premiums are

due to keep the policy in force. Common limited pay periods include 10-year, 20-

year, and are paid out at the age of 65.

Endowments

: Endowment policy

Endowments are policies in which the cumulative cash value of the policy equals

the death benefit at a certain age. The age at which this condition is reached is

known as the endowment age. Endowments are considerably more expensive (in

terms of annual premiums) than either whole life or universal life because the

premium paying period is shortened and the endowment date is earlier.

In the United States, the Technical Corrections Act of 1988 tightened the rules on

tax shelters (creating modified endowments). These follow tax rules in the same

manner as annuities and IRAs.

Endowment insurance is paid out whether the insured lives or dies, after a specific

period (e.g. 15 years) or a specific age (e.g. 65).

Accidental death

Accidental death is a limited life insurance designed to cover the insured should

they pass away due to an accident. Accidents include anything from an injury and

upwards, but do not typically cover deaths resulting from health problems or

suicide. Because they only cover accidents, these policies are much less expensive

than other life insurance policies.

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It is also very commonly offered as accidental death and dismemberment

insurance (AD&D) policy. In an AD&D policy, benefits are available not only for

accidental death, but also for the loss of limbs or bodily functions, such as sight

and hearing.

Accidental death and AD&D policies very rarely pay a benefit, either because the

cause of death is not covered by the policy, or the coverage is not maintained after

the accident until death occurs. To be aware of what coverage they have, an

insured should always review their policy for what it covers and what it excludes.

Often, it does not cover an insured who puts themselves at risk in activities such as

parachuting, flying, professional sports or involvement in a war (military or not).

Also, some insurers will exclude death and injury due to (but not limited to) motor

racing and mountaineering.

Accidental death benefits can also be added to a standard life insurance policy as a

rider. If this rider is purchased, the policy will gener

Structure:

Government stake in insurance companies to be brought down to 50%.

Government should take over the holdings of GIC and its subsidiaries so that these

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subsidiaries can act as independent corporations. All the insurance companies

should be given greater freedom to operate.

Competition:

Private Companies with a minimum paid up capital of Rs. 1bn should be allowed

to enter the industry. No Company should deal in both Life and General Insurance

through a single entity. Foreign companies may be allowed to enter the industry

in collaboration with the domestic companies. Postal Life Insurance should be

allowed to operate in the rural market. Only one state Level Life Insurance

Company should be allowed to operate in each state. Regulatory Body The

Insurance Act should be changed. An Insurance Regulatory body should be set

up. Controller of Insurance (Currently a part from the Finance Ministry) should be

made independent.

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Investment:

Mandatory Investments of LIC Life Fund in government securities to be reduced

from 75% to 50%. GIC and its subsidiaries are not to hold more than 5% in any

company (There current holdings to be brought down to this level over a

period of time). Customer Service LIC should pay interest on delays in

payments beyond 30 days. Insurance companies must be encouraged to set

up unit linked pension plans. Computerized of operations and updating of

technology to be carried out in the insurance industry.

The Insurance Regulatory and Development Authority Reforms in the

Insurance sector were initiated with the passage of the IRDA Bill in Parliament in

December 1999. The IRDA since its incorporation as a statutory body in April

2000 has fastidiously stuck to its schedule of framing regulations and

registering the private sector insurance companies.

Attracted by the huge untapped potential, many private players entered the

market after the Insurance bill was passed in late 2000. A majority of these were

collaborations between an Indian company and a leading MNC insurance/financial

services company.

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank,

India's foremost financial services companies, and Prudential plc, a leading

international financial services group headquartered in the United Kingdom. While

ICICI retains 74% stake in the joint venture, Prudential plc has the remaining 26%

stake. ICICI Prudential began its operations in December 2000. Today, this

company has over 1,900 branches (inclusive of 1,074 micro-offices), over 210,000

advisors and 6 branch assurance partners. ICICI Prudential Life Insurance

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Company is the first life insurer in India that received a National Insurer Financial

Strength rating of AAA (Ind) from Fitch ratings. ICICI Prudential has been voted

as India's Most Trusted Private Life Insurer for three consecutive years. This

company provides various insurance plans that have been designed for different

individuals, as every individual has different insurance needs. It celebrated its 10th

anniversary on 12th December 2010. Given below is a list of plans provided by

ICICI Prudential Life Insurance

Company: 

All ULIPs

Unit linked insurance plans (ULIPs) are a category of goal-based financial

solutions that combine the safety of life insurance protection and long term wealth

creation opportunities. In ULIPs, a part of the premium goes towards providing

you with life cover while the remaining portion is invested in fund(s) which, in

turn, are invested in stocks or bonds.

Retirement

Wealth

Child

Health

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Life Insurance Plans 

Term Plans

Term insurance is the simplest and most fundamental insurance product available

at extremely affordable prices. In this type of a policy, an individual pays a fixed

amount of money periodically and in the unfortunate event of death of the

policyholder, the entire amount paid, along with some other benefits and interest, is

paid back to the deceased's family.

ICICI Pru iProtect

ICICI Pru Pure Protect

ICICI Pru LifeGuard

ICICI Pru Home Assure

Wealth Plans

Wealth insurance plans are essentially long term savings plans which are designed

to help you save enough for your long term goals, like owning a house or a car etc,

along with providing you the benefit of life cover and protection for your family.

ULIP Wealth Plans

ICICI Pru LifeStage Wealth II

ICICI Pru Pinnacle II

ICICI Pru LifeTime Premier

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ICICI Pru Life Link Wealth SP

ICICI Pru Pinnacle Super

Traditional Wealth plans

ICICI Pru Future Secure

ICICI Pru Guarenteed Savings Insurance Plan

ICICI Pru Whole Life

ICICI Pru Save’n’Protect

ICICI Pru CashBak

Child Plans

Regardless of the rising cost of education in modern times, a parent never

compromises on the expenditure that goes into his/her child's bright career. A

saving's plan that is designed to provide money at key educational milestones and

take care of your loved ones future even if you are not around, is a wise decision to

make. In this plan, you pay premium periodically, or in lump sum, and during the

key educational milestones of your child, you can withdraw the money partially.

29

Traditional Child Plans

ICICI Pru Smart Kid Regular Premium

Unit Linked Child Plans

ICICI Pru Smart Kid Premier

Health Plans

Predicting unfortunate medical emergencies is difficult. Bearing the expenses of

the costly treatment is not at all easy and therefore, ICICI Prudential has come up

with health insurance plans that insure you and your family against expenses

arising due to medical emergencies and uncertainties such as hospitalisations or

onset of critical illnesses. 

Hospitalisation Plans

ICICI Pru Health Saver

ICICI Pru Hospital Care II

30

Critical Illness Plans

ICICI Pru Crisis Cover

Riders

ICICI Prudential gives you the freedom to form your very own comprehensive

insurance policy by adding the rider benefits to the basic life insurance policy. This

increases the scope of your policy, at a nominal cost.

Critical Illness Benefit Rider

Accident & Disability Benefit Rider

Income Benefit Rider

Waiver of Premium Rider (WOP)

Waiver Of Premium On Critical Illness Rider

Retirement Plans

Financial independence at all times is important but its importance is the most in

the post-retirement phase of life. After being self-dependant for a lifetime, the idea

of depending upon your children can be quite putting off. Retirement plans from

31

ICICI Prudential Life Insurance, ensure that you have enough flexibility to choose

your retirement date and the manner in which you receive the pension. 

ULIP Retirement Plans

ICICI Pru Life Link Pension Sp

Traditional Retirement Plans

ICICI Pru ForeverLife

ICICI Pru Immediate Annuity

Group Plans

Group Insurance Plans from ICICI Prudential enable the employer to effortlessly

provide his/her employees with both, savings and security, so they can pass on the

benefits to their loved ones.

Retirement Solution

Group Gratuity Plan

Group Leave Encashment Plan

Protection Solution

Annuity Solutions

Group Term Insurance Plans

Group Term in lieu of EDLI Scheme

Credit Assure Utility

32

Rural Plans

ICICI Prudential's rural business initiative has covered more than 2.5 million lives

across as many as 16 states in India. The plans offer Life cover, low and affordable

premiums and hassle free procedure.

ICICI Pru Sarv Jana Suraksha

ICICI Pru Anmol Nivesh

"Advertisements are sometimes spoken of as the nervous system of the business

world ... As our nervous system is constructed to give us all the possible

sensations from objects, so the advertisement which is comparable to the

nervous system must awaken in the reader as many different kinds of images as

the object itself can excite" “Advertising effectiveness means different things to

the groups responsible for its different effects. To the writer or artist, effective

advertising is that which communicates the desired message. To the media buyer,

33

effective advertising is that which reaches prospective buyers a sufficient

number of times. To the advertising or marketing manager, effective advertising

is that which, together with other marketing forces, sells his brand or product. To

the general manager, effective advertising produces a return on his firm’s

expenditure.” “In fact, effective advertising must achieve all four goals, delivering

messages to the right audience, thereby creating sales at a profit. Most advertisers

have begun only recently to set goals in all four areas and measure progress toward

them. Some advertisers have set communications and audience goals, and

measured copy and media effects,

But few advertisers have set dollar goals and measured sales and profit effects.

The result is that advertising has rarely been a part of corporate planning. Thirty

years ago, management was asking the same questions they ask today: Is my

advertising working and what impact does it have on my sales? Can it be

measured? Can our advertising and promotion be made accountable in the same

manner as which one evaluates all of the other investments by our company? The

answer to all three questions is yes. In fact, the techniques to deliver this

degree of accountability and control have been around for more than 50 years

and are industry standards.

There are methods to test every aspect of marketing promotion, sales support and

media mix, and analytical tools to establish a direct relationship to sales for

complete accountability. The key to this is applying a full advertising

research curriculum. This requires involvement of both sales and marketing

management and the advertising/promotions supplier coordinating their efforts

with the researcher. It is a partnership. This may explain why so many from

both the client and agency sides remain of the opinion that it can’t be done. The

fact is that a full curriculum can be implemented, is already integral to nearly every

34

brand leader, and you can do it as well. It just takes a little planning and co-

operation. Let’s start from where it all began.

We are all

surrounded by a vast amount of advertising. Nearly everybody, therefore, has some

thoughts on the subject. The tendency is to judge advertising as good or bad, to

single out advertisements that one likes or dislikes, to wonder if advertising is

worth the large sums of money spent on it, to question the contribution advertising

makes to social welfare, and so on. Advertising research also aims to answer these

35

questions in academic ways mainly within the fields of social science. The social

simulation research community has developed rapidly in recent years. Computer

simulation has proved useful for modelling phenomena of traditionally social

scientific interest. This work is to use agent-based social modelling and simulation

approach to evaluate the effectiveness of advertising

“Advertising effectiveness means different thing to the group responsible for its

different effect . to the writer or to the artist , effective advertising is that which

communicate the desired message . To the media buyer , effective advertising is

that which reach the prospective buyer a sufficient number of the times. To the

advertising or marketing manager , effective advertising is that which together with

other marketing force ,sells his brand or product. To the general manager ,

effective advertising produces a return on his firm expenditure” “ in fact , effective

advertising must achieve all four goals and delivering message to the right

audience, there by creating sales at a profit. Most advertiser begun only recently to

set goal in all four area and measure progress toward them. Some advertiser set

communication and audience goals, and measure copy and media effects, but few

set a dollar goals and measure sales and profit effects.

The result is that advertising has rarely been a part of corporate planning. Thirty

year ago management ask the same question they ask today : is my advertising

working and what impact dose it has on my sale? can it be measured? Can our

advertising and promotion made accountable in same manner as on which

evaluates all of the other investment by our company?

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

36

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

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

Advertisements convey brand differentiation and this may be important in several

categories, which consist of several brands. In FMCG products like tea, coffee and

detergents, “differentiation awareness” can be created by television advertising, but

37

in certain categories there may be a need to demonstrate the effectiveness of

brands. Differentiation with which consumers cannot “connect” may have a

negative implication and if a brand “connects” consumers with its differentiation, it

is likely to also differentiate itself in terms of getting identified with the consumer.

A detergent or a washing machine, which claims “low water consumption” has to

demonstrate this claim at a retail outlet especially given the fact that the quality of

water varies across areas even in a specific geographical region. It is also essential

that a good “differentiation proposition” result in a positive word-of-mouth.

In a certain situation, the company may have two offerings in a product-line and

there is a need to differentiate them clearly depending on the target segments

involved. This is a complex situation where differentiation decides the growth of

the brand and the perceived difference between the offerings. An added layer to the

complexity is the same brand name being used for the offerings. Fairness cream is

a category in which the benefit is the fairness of the complexion. A brand like Fair

and Lovely built over the years still has a strong association with the category but

under tremendous pressure from competitive brands and the most important

criteria which these brands is the herbal touch associated with them. Herbal

ingredients are becoming popular with consumers in several categories and

personal care in India has a strong tradition of herbal care. Fair and Lovely had to

launch its herbal variant (it used the same brand probably because of the brand

equity built up over the years). The interesting fact is the differentiation being

conveyed by advertising. The original version uses an aspiration route in which the

brand’s ultimate benefit is success through confidence.

Estimates based on China's current per capita Consumption, the Indian FMCG

market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015.

The dominance of Indian markets by unbranded products, change in eating habits

38

and the increased affordability of the growing Indian population presents an

opportunity to makers of branded products, who can convert

consumers to branded products.

Penetration level in most product categories like jams, toothpaste, skin care, hair

wash etc in India is low. The contrast is particularly striking between the rural and

urban segments - the average consumption by rural households is much lower than

their urban counterparts. Low penetration indicates the existence of unsaturated

markets, which are likely to expand as the income levels rise. This provides an

excellent opportunity for the industry players in the form of a vastly untapped

market. Moreover, per capita consumption in most of the FMCG categories

(including the high penetration categories) in India is low as compared to both the

developed markets and other emerging economies. A rise in per capita

consumption, with improvement in incomes and affordability and change in tastes

and preferences, is further expected to boost FMCG demand. Growth is also likely

to come from consumer "upgrading", especially in the matured product

categories

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

hoardings and costly electronic media advertisements. According to reports, in

the first quarter of the year 2002, insurance companies spent 70% of what was

39

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.

Advertising effectiveness can be defined as the extent to which advertising

generates a certain desired effect. Measuring the effects of advertising is very

important, given the amount of investments needed for advertising. While it is not

40

possible to obtain a global measure of the advertising effectiveness, we should seek

to develop and apply methods and measures for a partial verification of results.

Regarding the difficulty of measuring the overall effectiveness, we believe that it is

due essentially to the following considerations:

advertising interacts with other business variables (behavior, marketing

policies, financial decisions etc.) and environmental variables (competition,

economic conjuncture etc.), hardly isolable;

the effects of advertising are varied and not always translatable into

quantitative terms;

advertising causes long-term effects, not always, therefore, the results occur

in the same period in which are the costs.

In literature and practice the evaluation of advertising effectiveness has used two

basic models:

the dichotomous model;

the three-dimensional model.

The dichotomous model is applied mainly in product and brand advertising,

tending to isolate and evaluate separately the following:

sales effect;

communication effect.

41

The sales effect refers to the assessment of the capability of advertising to affect

the sales volume and/or the market share, regardless of the possible influence of

other variables. For Batra et al. (1995), the effectiveness of advertising should be

considered for its effect on sales in the short term. This advertising performance

measurement is based on the marginal theory (Chamberlin, 1948). The advertising

is therefore regarded as an independent variable that can be combined with other

marketing variables to have a certain effect on the dependent variable, i.e. sales.

The aim is to seek the best combination of the determinants of the sales increase.

The effect of communication refers to the ability to reach, with appropriate

messages, a more significant share of public. Such effect is examined in literature

with different approaches:

sociological;

semiotic;

psychological;

socio-psychological.

Sociological analysis focuses on the community, considered as a system governed

by rules and social norms, and on the social behavior (Moingeon, 1993). The role

of advertising and consumption in the society change is a very fertile topic.

Sociology has examined how advertising influences opinions, attitudes and

behaviors of individuals and social groups.

There are two opposite sociological perspectives to the advertising function in

contemporary society. The first maintains a positive approach to advertising. It is

believed that the role advertising is to better organize economic and social

relations, to harmonize social behaviors, to make people adhere to common values

42

and to help them to better live together without problems. The second approach is,

by contrast, rather critic, because advertising tends to generate a mass

consumption. In order to adapt messages to a wider audience, introduces new,

poorly differentiated, symbolic values (Friedman, 1979).

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

43

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

44

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

45

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.

46

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:

47

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.

49

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.

50

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:

52

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

University of Brescia

corvi@eco.unibs.it

Michelle Bonera (corresponding author)

Assistant Professor of Economics and Business Management

University of Brescia

mbonera@eco.unibs.it

Corporate advertising:

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

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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,

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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.

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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

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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

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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

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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.

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Q3. Have you saw any Life Insurance Product Ad?

Percentage Responses

Yes 96.0% 48

No 4.0% 2

Total responses: 50

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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

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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.

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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

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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

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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.

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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

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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

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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.

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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

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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

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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.

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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....

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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

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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....

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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.

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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.

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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

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CONCLUSION

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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.

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•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

Websites :

http://www.iciciprulife.com  

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http://www.managementparadise.com http://en.wikipedia.org/wiki/icici_prudential  

magazine :

1. forbes,

2. india today,

3. outlook

4. business week

5. business today

6. business india

journal:

1. international management

2. Indian journal

3. Sage india

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BIBLIOGRAPHY

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BIBLIOGRAPHY

BOOKS i Kothari C.R. (2004), “Research Methodology Methods and Techniques”,

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

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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

.

viii. Bitner M.J. (2008), “Services Marketing” N. Delhi, TataMcGraw-Hill

.

 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 

Magazine (forbes, india today, outlook)

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