Marketing Strategies UTILIZED BY Lic Commerce Essay

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

Strength

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.

Weakness

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.

Opportunity

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.

Threats

It poses risk since the government guidelines keep changing.

The entrance of insurance sector.

BCG MATRIX OF LIC

Market

Growth

highStar

Jeevan anand

Money plus policy

Pension plus

Question mark

New Bima Nivesh

New Jeevan Shree

lowCash cow

Group Scheme

Health Plans

Dog

Amulya Jeevan

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

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.

MARKETING ENVIRONMENT

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 :

Demographic

-since literacy and education increases employability, higher earning jobs also bring the change in belief about the necessity for insurance.

Economic

-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.

Technological

- 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.

cultural

-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.

They are:-

Cultural factors

Social Factors, and

Personal factors

Cultural factors:

-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.

Social Factors:

-LIC targets both the research group and family status of individuals.

-In joint family members, there is less stress on buying behavior.

Personal factors:

-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

Segmentation:

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.

Targetting:

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:

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.

BRAND EQUITY

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

QUESTIONNAIRE

MARKETING SURVEY

PERSONAL INFORMATION

NAME:. .

ADDRESS:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

.

CITY:. . Status:

PINCODE:. .

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

Insurance

Investment and insurance

If others, please specify

Does anyone else in your family have any type of policy?

Yes

No

If yes, please supply the details of the LIC policy your family is currently using.

Term

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?

Yes

No

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

Metlife

Birla Sunlife Insurance

If yes, then please speak about the kind of coverage that you bought

Do you presently own a life insurance coverage?

Yes

No

If yes, which of the next policy could it be?

Term insurance

Permanent life insurance

Whole life insurance

Universal life insurance

Limited pay life insurance

Endowments

Accidental death

Others

Have you made a claim on your existing insurance policy? If yes, please mention the type and amount of say?

Yes

No

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?

Yes

No

Are you looking for a better LIC insurance policy?

Yes

No

THANK YOU AND ALSO THE PRECIOUS TIME AND Tolerance.

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