Presentation

ON

A STUDY ON MARKETING MIX AND PROMOTIONAL
STRATEGIES
A SPECIAL REFERENCE TO IDBI FEDERAL LIFE
INSURANCE COMPANY LTD.

BY:
Naveen Sharma
Enrollment no.:13bsp1734
Introduction
IDBI Federal Life Insurance Co Ltd is a joint-venture of :
IDBI bank.[48% stake, 783 branches and 1328 ATMs. ]
Federal bank.[26% stake, 739 branches and 797 ATMs
spread across India.]
Ageas. [26% stake, 180 yr. old company, more than
13,000 employs, annual inflows EUR 18 billion]

As on Feb 28th 2013 company has issued over 8.65
lakh policies with Rs. 26, 591 Cr in Sum Assured

Financial analysis
Years Current assets
Current liabilities
Current ratios
2010-2011
1937966 1870864 1.03
2011-2012
2804141 2224786 1.26
2012-2013
2636583 1747056 1.50
2013-2014 1
st

1347889 891836 1.51
2
nd

1739699 1320105 1.31
3
rd

1502201 1180121 1.27
0
500000
1000000
1500000
2000000
2500000
3000000
2010-11 2011-12 2012-13 2013-14 2nd 3rd
current assets
currents liabilities
12
319
571
811
737
805
0
100
200
300
400
500
600
700
800
900
FY 2008 FY2009 FY 2010 FY 2011 FY 2012 FY 2013
Premium Income (in RS. CRORES)
Premium Income (in RS. CRORES)
84
37
26 26 26
24
0
10
20
30
40
50
60
70
80
90
FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013
Operating Expenses(In %)
Operating Expenses(In %)
-26
-110
-105
-122
-70
9
-140
-120
-100
-80
-60
-40
-20
0
20
FY 2008 FY2009 FY 2010 FY 2011 FY 2012 FY 2013
Net Profit (in crores)
Net Profit (in crores)
Michael Porter Analysis of Insurance Industry:
Threat of new entrants:
In life insurance industry entry barriers are moderate so that it becomes
profitable.
The Indian Market is highly brand oriented; it is difficult to introduce new
brands. Acceptability of new brand is low.
The capital requirement in life insurance is RS 100 crores.
High profit in life insurance industry act as a magnet.
Bargaining power of suppliers:
Policy seller has less leverage to bargain over premium and other terms of
sale when customer is a major one.
Suppliers bargaining power increase if administrative costs are low and
claim time procedure is low.
Providing customized products for each customer increases the bargaining
power of the suppliers.
Brand identity plays a important part in the sell of policies .Brands with
good image are preferred more by the customers.

Bargaining power of consumers:
Bargaining power of consumers in insurance industry is high
Market is highly segmented.
Consumers are very much return oriented and they switch to other
product very easily.
Customers can bargain for services like policy term, premium paid ,risks
covered.
Due to increase number of competitors in this market the customers can
choose from a variety of different products.
Also due to regulations of IRDA, customer complaints are dealt seriously
by the insurance companies.
Threat from substitutes:
Life insurance is associated with three factors namely savings, risk and tax
benefit.
1. Savings: People actually do savings in various forms like bank
deposit, post office deposit,PPF,EPF.Many also invest in share
markets,property,purchase GOLD,SILVER .


2. Risk Coverage
For risk coverage there is no other close substitute. Risk coverage is
provided by products of this sector only.
3. Tax Benefit
There are various substitute of this feature of life insurance. Some of the
substitute which provides tax benefit are:
PPF, NSE
Post office securities
Investment in mutual funds.
Competition among existing players:
As a result of privatization, there is cut throat competitions among rivals in
life insurance industry. There are one public organization and around 23
private organizations in life insurance sector.
All the insurance companies deal in identical polices as service levels
offered are similar .Hence there is no product differentiation.


Swot Analysis
Strength:

Products
Dedicated work force
Well spread network of qualified
intermediaries and sales agents
Skilled manpower with in-depth
knowledge
Weakness:

Brand awareness
Promotion
Not trustworthy
Lack of transparency
Not reached in southern India
Lesser popularity in villages

Opportunities:

Population
Fast track career development
International companies helps in
building world class expertise in local
markets
Threats:

People trust inn big public sector
insurance companies like LIC and NIC.
Very high competitions.
Lack of infrastructure in rural areas.
Learning summary
During my stint with IDBI as an intern i developed my selling skills and
learned many things.
Promotional activities:
1. painting competition in playschools.
2. canopies.
I developed my interpersonal skills.
I improved my oral communication skills.
I learned how to think strategically about business problems.
I improved my technical skills in my specialty area i.e Marketing.
I got a practical idea of the things like product, selling, promotion, consumer
behavior etc.
I learned new skills or knowledge that are important for my career
development.

Results of study
Which type of media is the most affective in promoting insurance
products?




Brand name plays an important role while buying a decision on insurance
policy?
Have you ever come across an advertisement of IDBI life insurance?




Celebrity endorsement affects the buying behavior?

Advertisement affects the buying decision for an insurance product?








word of mouth affects the buying decision of customers?


Thank you