Life Insurance Corporation of India was founded in 1956. It consists of 8 zonal office buildings and 101 divisional offices. LIC is completely government-owned. It offers specific insurance, group insurance and pension strategies. The subsidiaries of life insurance coverage corporation of India are LIC International, LIC Nepal, LIC Lanka, LIC Real estate Finance.
MARKETING STRATEGIES USED BY LIC
LIC adopted these strategies--
It acquired the first mover advantages.
There was extreme product differentiation.
Market segmentation was done intensely to add people of virtually all ages.
LIC got help of adverts to promote its brand value.
They have used creative slogans in order to struck the customer's attitude.
Attacked customers emotionally with these slogans.
It avoids any interference w. r. t communication to the clients and reduces the number of advertisement agencies so that the correct message extends to all the clients so that the key objectives are fulfilled.
SWOT Examination OF LIC
It rates first amongst the insurance firms.
After sales service, long term plans hold the most importance.
Provides employment to 1 1, 15, 000 people
Has around 2000 branches across India and 10, 00, 000 brokers.
since it is government-owned, therefore ther is very little innovation.
gets damaged by bureaucracy and red tape.
it becomes difficult to control the huge workforce in the changing times of economic crises.
Effective service can be provided to the urban sector with an increase of use of technology.
It can entail good brand proportion.
There has to be proper implementation of the federal government schemes.
It poses risk since the government guidelines keep changing.
The entrance of insurance sector.
BCG MATRIX OF LIC
Money plus policy
New Bima Nivesh
New Jeevan Shree
l o w
h i g h
R e l a t i v e M a r k e t S h a r e
DOG- this means low show of low market growth without cash generation by any means. It might even lead to break-even.
Eg- Amulya Jeevan
CASH COW- it means high show of low market growth, there is monetary revenue and even funds other brands.
Eg- Group schemes and health strategies.
QUESTION Draw- this means low show of high market expansion and it ingest resources.
Eg- New bima nivesh and new jeevan shree.
STAR-there is high market share and high market progress, there may be high cost and low earnings and it creates high profit.
Eg- Jeevan anand, pension strategies and money plus insurance policy.
PORTER'S FIVE Causes OF LIC
BARGAINING Electricity OF CUSTOMERS
THREAT OF Alternative PRODUCTS
BARGAINING Electricity OF SUPPLIERS
COMPETITIVE RIVALRY WITHIN AN INDUSTRY
THREAT OF NEW ENTRANTS
Customer satisfaction refers to the phenomenon which shows how much the clients are satisfied the product or the services provided by the organizations.
CUSTOMER SATISFACTION OF LIC :
It encourage face-to-face coping with the customers.
It includes giving an answer to the messages immediately and keeping all the customers well-informed.
It is commonly approachable and amicable in this challenging competition with the other insurance players.
The customer service plan must be evidently mentioned and well-defined.
Macro-environment :The business and all the other celebrities operate in a large macro environment that styles the opportunities and cause threat to the company. Major causes are :
-since literacy and education increases employability, higher earning jobs also bring the change in belief about the necessity for insurance.
-Inflation rate: High inflation reduces the insurance business especially life insurance quota, because the real value of money diminishes with with upsurge in inflation rate.
- more ground breaking channels like loan company, postoffice, ATMs should be launched.
political and legal
-IRDA action, 1999: charge allowed for 26% for an equity participation in the insurance sector.
-The work culture in the company was sloppy and strong trade union managed to get difficult for professionals so the job is performed.
Micro-environment: It consist of five components:
Organising Internal Environment: Its several departments and management levels
Marketing Channel Company: Provider and marketing intermediaries within it
It involves 5 types of marketplaces in which firm can sell: consumer, company, reseller, federal and the international market
Competitors - Basically the other insurance firms like, Tata AIG, Bajaj Alliance, etc.
All types of publics that contain an actual interest in the organization ability to attain its goal.
CONSUMER BUYING BEHAVIOR
First, why don't we know what influences consumer buying behavior.
Social Factors, and
-LIC is a trusted brand in India and is totally owned by the federal government.
-There can be unnatural incidents like death, abrupt turmoil, etc.
-LIC targets both the research group and family status of individuals.
-In joint family members, there is less stress on buying behavior.
-LIC has different insurance plans according to the needs of people concerning their age, lifestyle, beliefs, personality and riches.
Key mental process:
-LIC has always motivated the customers by its influential insurance plans and its offers. People has a perception of shopping for LIC since it is government-owned and is considered number 1 in paying promises.
SEGMENTATION, Setting AND TARGETTING
LIC in India was divided into 2 basic segments: individuals and corporate and business people. The first segment comprised of individual customers. It really is further divided into four sub-segments - safety, investment, personal savings and pension.
Protection products gives only coverage to the several customers from risk. These don't provide any personal savings facility to the policyholder.
Investment products offer long-term investment expansion and insurance cover.
Savings products like endowment and cash back regulations provide both cover and investment benefits.
Pension regulations are products offered to the clients as income throughout their years of retirement living after they quit their respective careers.
The corporate portion was divided into three sub-segments - security, statutory personal savings and pension.
Down the series, LIC catered to both individual and corporate segments. Individual plans include Endowment Regulations, Money Back Procedures, Term Assurance Programs, Periodic CASH BACK Plans and Joint Life Programs. The corporate regulations include group insurance plans such as group gratuity schemes, group term insurance strategies, group savings connected insurance design and group leave encashment schemes.
Targeting is the real collection of the segment you want to provide the prospective market is the group of people or organizations whose requires a product is specifically designed to satisfy.
LIC mainly focuses on children who are basically into schooling, people in earning periods and senior citizens who have received retired using their individual services. It not only targets the urban people but also the rural people.
Positioning is a marketing strategy so that people can form a 'mental image' of the merchandise in their brains (relative to other products).
LIC positions itself as the utmost sort after insurance company providing financial solutions to the people. It's very popular among the people because it is government owned or operated.
LIC did a good job in reinforcing its brand image of the 'folded hands' to the people. It really is readily trusted by the folks as it is one of the most oldest insurance player in the country. Its tagline "ZINDAGI KE SAATH BHI ZINDAGI KI BAAD BHI" has gained popularism not only in urban but also in rural areas.
The slogan of LIC is "Yogakshemam Vahamyaham" which translates from Sanskrit to "Your welfare is our responsibility". The literal translation from Sanskrit to British is "I carry what you require". The slogan, written in Devanagiri script, is available below the hands keeping the lamp.
PRODUCT LIFE CYCLE
ADDRESS:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
CITY:. . Status:
GENDER:. . . MOBILE NO. :
MAIL Identification:. .
Please tick ( ) in the bins, as relevant:
What is your major reason behind opting LIC as an investment insurance policy?
Investment and insurance
If others, please specify
Does anyone else in your family have any type of policy?
If yes, please supply the details of the LIC policy your family is currently using.
Maturity season. . . . . . . . . . . . . . . . . . . . . . . . .
Premium. . . . . .
Insurance coverage amount. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Why did you opt for this particular LIC policy?
Have you ever been hospitalized in the last 3 years?
If yes, that which was the reason for getting hospitalized? Also, please state the bills that you incurred during the hospitalization.
What is the current amount of top quality per month that you will be paying in this insurance policy?
Less than Rs 500
Rs 500 - Rs 1000
Rs 1001 - Rs 2000
Rs 2001 - Rs 4000
More than Rs 4000
Have you ever bought an insurance policy from any one of the following companies?
TATA AIG life insurance
LIC of India
Birla Sunlife Insurance
If yes, then please speak about the kind of coverage that you bought
Do you presently own a life insurance coverage?
If yes, which of the next policy could it be?
Permanent life insurance
Whole life insurance
Universal life insurance
Limited pay life insurance
Have you made a claim on your existing insurance policy? If yes, please mention the type and amount of say?
Type of claim. . . . . . . . . . . . .
Amount of say. .
How much is your current insurance cover per month?
Less than Rs 10000
Rs 10001 - Rs 25000
Rs 25001 - Rs 50000
More than Rs 50000
Are you content with your insurance policy?
Are you looking for a better LIC insurance policy?
THANK YOU AND ALSO THE PRECIOUS TIME AND Tolerance.
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