SUMMER INTERNSHIP

On

A STUDY ON ADVERTISING STRATEGIES OF IDBI FEDERAL LIFE

INSURANCE CO.

By

Deepali Yadav
35451401716

BBA-GEN Class of 2016-19

Under the Supervision of

Ezad Ahmed

In Partial Fulfillment of the Requirements for the Degree of

Bachelor of Business Administration
At

Fairfield Institute of Management &

Technology, Kapashera, New Delhi 110037
 DECLARATION

A STUDY OF ADVERTISING STRATEGIES OF IDBI FEDERAL

I declare

(a) That the work presented for assessment in this summer internship is my own, that it has
not previously presented for another assessment and that any debts (for words, data,
arguments and ideas) have been appropriately acknowledged.

(b) That the work conforms to the guidelines for presentation and style set out in the
relevant documentation.

(c) The Plagiarism in the report is (permissible limit is 15%)

Date: July 15, 2018

Deepali Yadav

35451401716

BBA–G (Class of 2016-19)

 CERTIFICATE

TO WHOM SO EVER IT MAY CONCERN

This is to certify that Deepali Yadav of Fairfield Institute Of Management & Technology,
New Delhi has successfully completed her summer internship at IDBI federal life insurance co.
from 1st June 2018 to 7th August 2018.

During her internship she undertook the project “A STUDY OF ADVERTISING

STRATEGIES OF IDBI FEDERAL”.

We wish her all the best for her future endeavors.

Mr. Ezad Ahmed

Senior Manager

IDBI federal life insurance co.

 ACKNOWLEDGEMENT

“No Project is ever a work of only one person and this one is no exception”

This project is the product of many hands, and countless hours from many people. My thanks
go out to all those who helped, whether through their comments, feedback or suggestions.

First and foremost I would like to extend my greatest appreciation for Mr. Ezad Ahmed
(Industry Guides, IDBI federal.), for their continuous support and guidance in the fulfillment
of this project. Without their utmost belief in my capabilities this project would not have seen
light.

I am deeply indebted to my revered teacher Dr. Suman (Faculty guide) for providing me with
regular inputs and shared her vast knowledge and expertise for completing this project.

Sincere thanks to all the people who have supported this project. Lastly, no words could
adequately convey my heartfelt thanks to the family members and friends who indirectly co-
Operated in fulfillment of this project.

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 EXECUTIVE SUMMARY

The project on “Advertising strategy of IDBI Federal Life Insurance company” was taken at
IDBI Federal Life Insurance from 1st June 2018 to 7th August 2018.

The project aims to make a detailed study of Advertising strategies of IDBI Federal Life
Insurance Company to understand the strategies implemented by the company to better target its
customers and also to analyze behaviour of the customers towards the products of the company
in order to identify the strengths and weaknesses of the company.

This project gave me an opportunity to get an overview of the Insurance Industry and realize
marketing potential of insurance products in general and of IDBI Federal in particular by
conducting consumer survey on insurance products and the opportunities available in
distribution channels. The objectives of the project were to identify the Marketing Mix of IDBI
Federal Life Insurance Company, to map the attitude of consumers with respect to the life
insurance products of IDBI Federal and determine areas of improvement for better marketing of
IDBI Life Insurance Products.

The internship comprised of basically four parts: -


In house training of insurance products of IDBI Federal.



Selling insurance products to get exposure in the market.



Understanding the concept of Marketing and operations in relation to Life Insurance products
at IDBI Federal Life Insurance Co Ltd.



Online survey to gain customers’ responses towards IDBI’s investment products and
determine what could be the best way to distribute and promote its products.

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 Chapter 1
Introduction

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 1.1 INSURANCE SECTOR

Insurance is a contract between the policyholder and the insurance company. Insurance
covers the probable financial risk of a person. The insurance company, in return for a
premium, promises to pay a specified amount to the policyholder (customer) after the
anticipated event has happened as per the contract.

There were 54 insurers operating in India at the end of March 2016, of which 24 are general
insurers, 24 are life insurers, and 5 are health insurers. In addition, General insurance
company is the only national reinsurer.

Of all the insurance companies presently in operation, there are eight in public sector and the
remaining forty six are in the private sector. Two specialized insurers, namely Export credit
guarantee corporation of India(ECGC) and Agriculture insurance company of India (AIC),
one life insurer namely LIC of India (LIC), four in general insurance and the only one in
reinsurance namely GIC are in public sector. 18 general insurers, 23 life insurers, and 5
standalone health insurers are operating in private sector.

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Insurance Regulatory & Development Authority (IRDA) is an autonomous, statutory agency
which regulates and promotes insurance industry in India. It was constituted by the Insurance
Regulatory and Development Authority Act, 1999 through an act of parliament passed by the
government of India. The agency has a ten members' team comprising of a Chairman, five full
time members and four part-time members, all appointed by government of India.

Functions of IRDA
Some important functions of IRDA are -

 Promoting and regulating professional organizations connected with the insurance and re-
insurance industry
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  Inspecting and investigating insurers, intermediaries and other relevant organizations

 Protecting policyholder interests

 Adjudicating disputes between insurers and intermediaries or insurance intermediaries

 Issuing, renewing, modifying, withdrawing, suspending or cancelling registrations.

 Regulating company’s investment of funds and margin of solvency
Insurance industry has seen revolutionary changes after the establishment of IRDA. The rules
and regulation brought by the agency has helped this sector witness tremendous growth as a
result of private companies starting their business and rising awareness about insurance in
people.

This graph suggests that private insurers have outpaced the national insurer LIC by 5
percentage point during 2015 – 2016. ICICI Prudential is top collector of premium
among its private followed by SBI Life. But, the percentage increase in insurance
premium through new business is larger for SBI Life than ICICI Prudential.

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 1.2 Company Overview – IDBI Federal Life Insurance

IDBI Federal Life Insurance Co Ltd. was started in March 2008. It is a joint venture of IDBI
Bank (India’s premier development and commercial bank), Federal Bank (one of India’s
leading private sector banks) and Ageas (a multinational insurance giant based out of
Europe). Its main activity is selling and promoting insurance products across India through
direct marketing (agents and brokers), bank assurance, agency channels or CSF. In this
venture, IDBI has 48% share, while Federal bank and Ageas own 26% each. Since its
inception in 2008, it became one of the fastest growing insurance companies in India and
garnered Rs 100 crores in premium in the first five month of operation.

The company believes in launching innovative products which aims to deliver world class
wealth management, protection and retirement solutions to meet the changing demand of
different segment of customers. The company got its license from IRDA in December, 2007
but it officially started its operations in March, 2008. Vighnesh Shahane is the CEO and
Director of this company which is headquartered in Mumbai.

IDBI Federal added another feather to its cap when it was able to break even within just 5
years of commencing operation. Through a nationwide network of 3,014 branches of IDBI
Bank and Federal Bank, and a sizeable network of advisors and partners, IDBI Federal has
issued nearly 8.23 lakh policies till 31st March 2016 with a sum assured of over Rs. 51,256
crores.

IDBI Bank Ltd is a leading public sector bank which offers personalized banking and
financial solutions to its clients in the retail and corporate banking. Its large network of 1077
branches and 1720 ATMs serves the customers across the country. They have also set up an
overseas branch at Dubai and have plans to open representative offices in various other parts
of globe.

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 Federal Bank is one of India's leading private sector banks, with a dominant presence in the
state of Kerala. Initially known as the Travancore Federal Bank, it gradually transformed into
a fully-fledged bank under the able leadership of its founder, Mr. K P Hormis. It has a strong
network of over 1,142 branches and 1,312 ATMs spread across India. The bank serves over
four million retail customers with a wide variety of financial products.

Ageas is an international insurance group with a heritage spanning more than 180 years. Ranked
among the top 20 insurance companies in Europe, Ageas has chosen to concentrate its business
activities in Europe and Asia, which together make up the largest share of the global insurance
market. These are grouped around four segments: Belgium, United Kingdom, Continental Europe
and Asia and served through a combination of wholly owned subsidiaries and partnerships with
strong financial institutions and key distributors around.

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Nature of Business

The nature of the business of IDBI Federal is listed below –

1. Channel agency – There are agencies which are authorized to sell insurance products of
the company.

2. Bankassurance – IDBI Federal sells its products through the branches of partner banks
IDBI and Federal across India.

3. Direct Marketing – Agents sell the insurance products of the company directly to the
customers.

4. Online – There are a few products that the company offers online but the business through
this medium is minimal as of now.

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1.3 Advertising Strategies at IDBI Federal Life Insurance
Advertising strategies are very important especially in a service oriented sector because it deals
with intangible products. Insurance is a field where much effort is required in making people
understand about the product and educate them about its features. Every insurance company put
their best efforts in formulizing promotional strategies which attract people to their product and
company. Push strategy is followed in insurance industry .This is the strategy used when the
manufacturer uses its sales force and trade promotion money to induce intermediaries to carry,
promote and sell the product to end users.

Consumers today value information. We live in the information age, and the savvy, faithful
customer is one that has knowledge about the products and services offered. The next most
valuable insurance marketing tips include the salesperson being the source of financial
information for the client. Newsletters, email updates, and notifications will keep customers
informed about issues surrounding insurance and other financial programs. There are creative
ways to approach these insurance marketing strategies.

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Newsletters could include contests, special interest areas for kids, safety concerns, and economic
updates. There could even be an area for customer spotlights, or encouraging testimonies of how
the customers were helped through the office. Of course, all new products and services should be
showcased in any informative hard copy or email communication.

There are insurance marketing strategies that can take any insurance agency from mediocre to
success when utilized correctly. Breaking into a new business climate and finding customers is
hard work, but when equipped with innovative ideas and proven techniques, financial markets
sales personnel can become extremely successful. Getting an education and training is very
important in every industry, sales is certainly no exception. Those selling insurance will want
begin their careers with the very best tools of the trade and those with already established
businesses that are in need of a motivational push will also gain great benefits by researching and
learning new insurance marketing tips. Key insurance marketing strategies will always include
an in-depth review of the value of follow-up. All successful sales agents understand that
consumers need to be contacted again and again in order to make a vital connection. Also, great
follow-up protocol lets the potential customer know that good, solid customer service will be
part of the over-all package. Follow-up says to a consumer that they are important, thought of,
and that their business would be greatly appreciated. The consumer today not only wants a
product at a great price, they also want a personal relationship, especially when it comes to
financial system sales, such as various insurances. Letters and phone calls are gentle reminders
that the salesperson intends to serve with his or her whole heart. And, once a sale is secured, a
thank you call is strongly advised.
Those in this industry will also want to keep constant contact with existing customers, too. The
competition is fierce today, and no one wants to lose a customer to the next guy or service to
come along. Clients that have had no contact for a period of time loose loyalty. Keep birthday
and anniversary postcards going into the home on a regular basis. Keeping a name before a
consumer will keep a name in their conscience. A small gift or token of appreciation is also a
means for keeping customers loyal.

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There are other insurance marketing tips and resources available and insurance agents may find
investigating several options to be beneficial. Many marketing support companies offer email or
publication updates, sharing information and techniques that are proven to bring in success.
Agents may want to browse the Internet and find a few different insurance marketing tips
programs to choose from. Not only will these resources help keep salespersons abreast of the
latest strategies, but these support programs can also create a sense of community and an
opportunity for agents to share their own struggles and challenges with others in the field.

Perhaps the most important insurance marketing tips are tips that speak of integrity and honest
business dealings. There are so many scams in various industries today; consumers are looking
for products and services that they can trust. Building trust will be crucial to keeping a business
growing in a stable direction. The most effective and followed modes of communication are:

1. ADVERTISING:

Advertising reaches geographically dispersed buyers it can build up a long term image for a
product or trigger quick sales. Certain forms of advertising such as television can require a large
budget were as other forms such as newspapers do not. Just the presence of advertising might
have an effect on sales. Consumers might believe that a heavily advertised brand must offer
“good value” .Because of the many forms and uses of advertising it is worth wise to note few
observations

Pervasiveness: Advertising permits the seller to repeat a message many times it also
allows the buyer to receive and compare the messages of various competitors .large
scale advertising says something positive about the sellers’ size, power and success. 


 Amplified Expressiveness: Advertising provides opportunities for dramatizing the

company and its products through the artful use of print, sound and color.


 Impersonality: the audience does not feel obligated to pay attention or

respond to advertising. 

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They have brought out many interesting and humorous ads of their products such as
Wealthsurance, Incomesurance, Lifesurance, Childsurance etc. which has got very good response
from customers.

2. SALES PROMOTION:

Companies use sales promotion tools like coupons, contest, premiums, and the like to draw a
stronger and quicker buyer response, including short run effects, such as highlighting, product
offers and boosting sagging sales. Sales promotion tools offer three distinctive benefits:

Communication: they gain attention and may lead the customer to the product

Incentive: They incorporate some concession, inducement, or contribution that gives

value to the customer.

Invitation: They include a distinct invitation to engage in the transaction now.

This mode of communication is mostly followed by insurance companies because this sector
deals with a product which requires the full knowledge of the customer.

3. EVENTS AND EXPERIENCES:

Events and experiences reach out to the customer and can be used for brand- building as
well as selling products. There are many advantages to events and experiences.


Relevant: A well-chosen event or experience can be seen as highly relevant because

the customer gets personally involved.

Involving: Given their live, real time quality, events and experiences are more

actively engaging for customers.
 
Implicit: Events are an indirect “soft sell”.

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 IDBI Federal have also conducted events with an aim to create interest around financial
planning with Life Insurance at branches which was critical to getting prospects interested in
their products. Building an engagement process around the solution being offered gives an
additional boost to this cause. Spelling Bee was a specially created spelling contest created to
connect with children. The philosophy of this module hinged around making learning fun. The
event was timed to coincide with Children’s day in November 2010. The spellings to be
completed revolved around visual and verbal cues to words related to saving, money and finance
and aimed at teaching children the value of money early in life. The engagement started with the
spelling contest for kids and gave their IRMs a natural opening for a discussion with parents
about financial planning for their children’s future needs like education. This is a sort of channel
marketing which IDBI Federal had adopted to create awareness as well as to educate the future
generation about the company and the importance of saving.

Also IDBI Federal involved them in developing their business by joining hands with SAMHITA,
a community development organization based out of Bhopal which works towards bringing
financial literacy to the underprivileged population in Madhya Pradesh. They believe that such
financial literacy among the under banked population will help bring a holistic change in the way
people perceive and understand financial products and their utility at various stages in their life.
This will ultimately help bring them closer to financial inclusion. They started this journey with
SAMHITA in 2008 by providing low cost group coverage female members of SAMHITA under
Group Microsurance. This way they have covered 86,721 lives for a sum assured of Rs. 66.7
crores since then. They also offer the protection of Termsurance Garmin Suraksha to the family
members of these people.

4. DIRECT AND INTERACTIVE MARKETING:

Direct and interactive marketing takes many forms over the phone, online or in person. They
share three distinctive characteristics. Direct and interactive marketing messages are:

Customized: The message can be prepared to appeal to the addressed individual.



Up- to –date: The message can be prepared very quickly.



Interactive: the message can be changed depending on the person’s response.



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5. WORD-OF- MOUTH MARKETING:

Word of mouth marketing also takes many forms, online or offline. Three noteworthy characters
are:


Credible: Because people trust others they know and respect, word of mouth can be

highly influential.

Personal: Word of mouth can be very intimate dialogue that reflects personal facts,

opinions and experiences.

Timely: It occurs when people want it to and when they are most interested, and it

often follows noteworthy or eventful events or experiences.



1.4 Other Advertising Strategies Adopted By IDBI Federal

Following are the main ways in which IDBI Federal life Insurance company ltd promotes its
products/services and creates awareness in the market.

NEWSPAPER:

IDBI Federal has attained notice through many articles and advertisements published in various
national and regional newspapers in India like the Economic Times, Times of India, The Hindu ,
Samachar Jagat, Vir Arjun, Meghalaya Guardian etc. IDBI Federal spends around Rs 1040 per
sq.cm for promotional activities through newspapers. They position the ads and articles in such a
way that it catches the eye of the reader as soon as they start reading the newspaper.

HOARDINGS:

IDBI Federal has also tried making their potential customer aware of their products and policies
through billboards and hoardings by positioning them in strategic locations. As of now, the total
number of hoardings which are put up in Hyderabad region counts to a good 17 number. The
total expenses spent by the company for this promotional activity is Rs 4 lakh.
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PAMPHLETS:

Pamphlets are distributed across India at least 5 times in a month without any cost. It’s done to
create maximum awareness about the products/services.

MAGAZINES:

There is no specific magazine in which advertisement is given. It’s given in magazines

depending upon their sales and reputed magazines like Outlook, Money etc. The advertisement is
given every month at least once in any magazine.

TELEVISION:

Mainly, the advertisement is shown on cricket channels, Star channels. The main promotions
were done during FEB & MARCH to:
 
 Highlight the tax benefits

To combat competition as all the insurance companies would advertise during this
time at a great frequency. Also the company will soon 
start displaying their
advertisements on Satellite TV like SUN network, etc.

DISTRIBUTORS:

A strong network of distributors and parent advisors also helps a lot in promoting
products/services of IDBI Federal by word of mouth. A Viral campaign is also run on the
Internet by wherein flash videos of working of products are explained in a very humorous
manner.

LOCAL EVENTS:

The overall costs associated with such events totals to Rs. 2,00,000 per annum such events are
mainly conducted in Apartments, Schools, etc. Building an engagement process around the
solution being offered gives an additional boost to this cause. Spelling Bee was a specially
created spelling contest created to connect with children. The engagement started with the
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spelling contest for kids and gave their IRMs a natural opening for a discussion with parents
about financial planning for their children’s future needs like education. This is a sort of channel
marketing which IDBI Federal had adopted to create awareness as well as to educate the future
generation about the company and the importance of saving.
Also IDBI Federal involved them in developing their business by joining hands with SAMHITA,
a community development organization based out of Bhopal which works towards bringing
financial literacy to the underprivileged population in Madhya Pradesh. They believe that such
financial literacy among the under banked population will help bring a holistic change in the way
people perceive and understand financial products and their utility at various stages in their life.
This will ultimately help bring them closer to financial inclusion.

Half Marathon: As an organisation, IDBI Federal has always aimed to endorse and encourage
good health and fitness. They believe it helps one create a life and lifestyle of their choice.

As the company unfolds its marathon calendar, they have once again partnered with cricket
legend and face of their marathons, Sachin Tendulkar to spread the message of health and
fitness. They have launched a video featuring Sachin and, a few runners from different parts of
the country. Through this video the runners recount how a focus on fitness through running has
changed their lives for better.

https://www.youtube.com/watch?time_continue=93&v=Lkl5MzIv9tU

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1.5 SWOT Analysis
Strength
 The major strength of IDBI Federal Life Insurance Company is its sponsor companies
which are IDBI Bank, Federal Bank and Fortis.

 Strength of IDBI Federal is its combined network of more than 2400 branches of IDBI
bank and Federal bank.

 Superior customer service with huge network and innovative products

 8 Days Claim settlement guarantee

Weaknesses
 The major weakness of IDBI Federal is the constraint sectorial growth due to low
employment level.
 Very low penetration in rural & small town sector
 The corporate clients under group schemes and salary savings schemes are captured by
other major players.
 No provision of monthly plans to capture younger customers

Opportunities
 Since it is a dynamic environment, so we need to keep on innovating the product
according to the customers need, offering a right mix of flexibility/risk/return.

 Rural & Small district towns

Threats
 There are many substitute available in the market which results in very high competition
prevailing in the industry.

 With the change in the technological, political, economic, socio-cultural environment

one has to keep pace with these changing environments and only hence, one can survive
in the industry.

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1.6 RESEARCH OBJECTIVES

1.To find out whether the current promotional strategies are effective in creating awareness
among people.
2. To find out what type of ads the customers like with respect to insurance products.
3. To suggest a new way of promotion for the company based on people’s awareness about the
brand IDBI Federal life insurance co ltd.

1.7 MISSION VISION AND VALUES

Mission
To continually strive to enhance customer experience through innovative product offerings,
dedicated relationship management and superior service delivery while striving to interact with
our customers in the most convenient and cost effective manner.

To be transparent in dealing with our customers and to act with integrity.

To invest in and build quality human capital to achieve company`s mission.

Vision
To be the leading provider of wealth management, protection and retirement solutions that
meets the needs of our customers and adds value to their lives

Values

Transparency - Crystal Clear communication to our partners and stakeholders.

Value to Customers - A product and service offering in which customers perceive value.

Delivery on Promise – This translates into being financially strong, operationally robust and
having clarity in claims.

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 CHAPTER 2
LITERATURE REVIEW

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REVIEW OF THE LITERATURE

Literature no. 1

A study by Garg & Verma(2010)1,The insurance firms should focus on the concept of MM and
implement the concept. They should quantify the level of expenditure for their mix ingredients,
study elasticity of the mix ingredients, carry out careful analysis in order to identify the most
effective and economic mix, analyze their competitors’ mix while implementing MM,
review the whole mix in detail so that each segment gets its own assemblage of mix components,
and review their MM on a regular basis. The marketing departments of the insurance firms
should call other functional departments while developing MM and provide details of their
thinking on the subject.

Literature no. 2

In the study by Abdalelah S. Saaty(2011)2, attempts to find out the factors important in
developing a suitable marketing strategy for insurance companies. It investigates the reasons for
buying insurance by the current users of insurance, reasons for not buying insurance by non-
users of insurance and the issues and problems faced by Saudi Insurance industry.

The results of the study show that the social and regulatory factors played crucial role in the
consumer’s decision in purchasing insurance. However it was also found that the public at large
is unaware about the benefits of insurance, and various types of insurance products. The
insurance companies shall focus of promotional marketing strategies. The marketer’s primary
focus should be on promotional activities.

___________________________________________________________________________
1
Garg ,M.C.& Verma A.2010. An empirical analysis of the marketing mix in the Life Insurance Industry In
India.The IUP journal of management research .Vol.9.pp07-20.
2
Abdalelah S. Saaty A 2011. Factors Critical in Marketing Strategies of Insurance Companies in Saudi Arabia.
The International Journal of Marketing Studies. Vol.3.pp104-122.

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Literature no. 3

A study by D’Andrea & Schleicher(2006)3. Attempts to understand the role of promotions

among other key drivers at determining consumer’s overall store price image (OSPI) of grocery
stores in Latin America, identifying its relative importance.
Pricing is a relevant issue to customers as well as for retailers. However, this research shows that
price promotions and its advertisement may blur the consumer’s possibilities of identifying
which retailer runs the best prices and minimizes their overall purchasing cost. At the same time,
it makes harder to the retailer to find which factors are more effective in forming the overall
store price image (OSPI). Further understanding of how OSPI is built seems necessary in order
to help retailers make the right decisions that will not confuse consumers.
However, a review of the literature shows that most of the studies have concentrated at the
product level, or have considered isolated variables. Our research was then set for understanding
the relative importance of the different factors that form the OSPI, and consider the differences
towards price promotions across consumer segments and markets.

Literature no. 4

A study by Pulidindi Venugopal(2010)4. Attempts to understand the attitude of insured on

agents and promotional activities of life insurance companies
Life Insurance is conceptual and intangible in its nature and it is not understood by majority of
the Indian population. Even though every insurer knows that it is not bought and it has to be sold,
there is a lot of gap among promotional activities and advisors (agents). Hence it caused
complications in marketing its products. Making the uneducated, rural and economically
backward people to understand the insurance concept is a challenging task. Insurers may succeed
if they develop separate strategies for each segment. Promotional activities and agents of life
insurance companies is all about to inform, bringing awareness, develop belief, to reinforce trust
etc. in the minds of the consumers by using tools such as advertising, public relations, displays,
word of mouth, sales promotion, personal selling etc. Promotion bring positive attitude or may
cause negative attitude so knowing the feelings of respondents found essential.
_________________________________________________________________________
3
D’Andrea & Schleicher A 2006. The role of promotions and other factors affecting overall store price image in
Latin America. The International Journal of Retail & Distribution Management Vol. 34 No. 9, 2006 pp. 688-700.

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Literature no. 5

A study by Beenish Shameem & Dr Sameer Gupta(2012)5. The study is designed to evaluate the
marketing strategies in life insurance service sector & how these strategies boost sales &
marketability of a product which ultimately lead to customer satisfaction. The insurance scenario
faces multiple challenges such as increased costs of operation, regulatory pressures, and
inflexible technology infrastructure. These pressures are compounded by low to moderate
premium growth & the increasing burdens of regulatory compliance. Keeping all the above
problems around the study would attempt to study all the factors that contributed to the effective
marketing strategies. This paper presents different marketing strategies that are taken up in life
insurance services keeping in view external and internal environment of the firm. Marketing
strategy is the basic approach that the business units will use to achieve its objectives, and it
consists of broad decisions on target markets, market positioning and mix, and marketing
expenditure levels.

4
P Venugopal A 2010. Attitude of Insured on Agents and Promotional Activities of Life Insurance Companies.
Drishtikon: A Management Journal Vol. 1 no. 2. 2010 pp. 369-394
5
Shameem B. & Dr. Gupta A 2012. Marketing Strategies In Life Insurance Services. International Journal
of Marketing, Financial Services & Management Research Vol.1 Issue 11,November2012 pp132-141

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 Chapter 3: Research Methods and
Procedures

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3.1 RESEARCH DESIGN
The research design is descriptive and it helped in the following ways:-
 To measure the awareness about IDBI federal from the general public

3.2 DATA SOURCES

The data chosen for the study is through primary and secondary source.

3.3RESEARCH METHODOLOGY
Primary data: Data required for the study was collected through questionnaires. The sample
size was 60 and the sampling unit was of general people who like retired officers, students,
business professionals etc. Questionnaires were mailed to respondents and few were handed over
to them personally. Both open ended and close ended questions are used in the design of the
questionnaire so as to know the opinion of customers relating to insurance and awareness about
the brand IDBI federal and how they respond to the marketing stimuli adopted by the company.
The type of questionnaire used in this project is structured. The questions are listed in a
prearranged order and respondents are informed about the purpose of collecting information. The
type of sampling was convenient sampling.

Secondary data: Gathering data from internet and television, published articles, books, research
reports and other sources

SAMPLING PLAN:-
Sampling Size: Unit was OF 60 respondents.

Work area: DELHI

Sampling type: Cluster sampling

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Sampling unit: Individual owners of Insurance Company Sample Technique: Stratified random
sampling

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 CHAPTER 4: ANALYSIS

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Q.1 GENDER

Answer Count Percent

1. Male 36 60.00%
2. Female 24 40.00%
Total 60 100%

Out of the 60 responses collected from the consumers it is seem that 36 of the respondents were male and 24 of the
respondents were female.

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Q.2 INCOME

Answer Count Percent

1. 3lakh-5 lakh 21 35.00%
2. 5Lakh-10Lakhs 23 38.33%
3. >10Lakhs 16 26.67%
Total 60 100%

Out of the 60 responses , it is seen that 35% lie in the income group of 3lakh to 5 lakh , 38% lie in the income
group of 5 lakh to 10 lakh and 26% lie in the group of more than 10 lakh.

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Q.3 Do you have an insurance policy?

Answer Count Percent

1. Yes 36 60.00%
2. No 24 40.00%
Total 60 100%

Oout of the 60 responses it can be seen that 60% have an insurance policy while on the other hand 40% do not have
an insurance policy.

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Q.4 From which insurance companies are you insured?

Answer Count Percent

1. LIC 14 23.33%
2. IDBI Federal 15 25.00%
3. Aviva Life Insurance 13 21.67%
4. Bajaj Allianz Life Insurance 10 16.67%
5. ICIC Prudential Life Insurance 8 13.33%
Total 60 100%

In the above graph, the respondents are segmented on the basis of insurance companies from which they are
insured. Out of the 60 respondents 14 are insured with LIC , 15 are insured with IDBI Federal , 13 are insured with
Aviva Life Insurance , 10 are insured with Bajaj Allianz Life Insurance and 8 are insured with ICIC Prudential Life
Insurance.

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Q.5 How many policies do you have?

Answer Count Percent

1. Less than 2 12 20.00%
2. 2-4 25 41.67%
3. 4-6 21 35.00%
4. More than 6 2 3.33%
Total 60 100%

In the above graph , the respondents are segmented on the basis of the number of policies that they have. As we can
see that out of the 60 respondents , 12 respondents have less than 2 policies , 25 have policies between 2-4 , 21
respondents have policies between 4-6 and 2 respondents have more than 6 policies.

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Q.6 Are you aware of the insurance policy IDBI Federal providing?

Answer Count Percent

1. Yes 35 58.33%
2. No 25 41.67%
Total 60 100%

Out of the 60 respondents , 58% respondents knew about the insurance policies that IDBI Federal is providing
while 42% respondents didn’t know about the products of IDBI Federal.

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Q.7what are the products you aware of?

Answer Count Percent

1. Child Plan 10 16.67%
2. Endowment Plan 8 13.33%
3. Group Plan 6 10.00%
4. Money Back Plan 16 26.67%
5. Wealth Plan 11 18.33%
6. Term Plan 9 15.00%
Total 60 100%

In the above graph we can see that 16 respondents are aware of the money back plan , 11 are aware about the
wealth plan , 10 are aware about the child plan , 9 are aware about the term plan offered , 8 are aware about the
endowment plan and only 6 respondents are aware about the group plan.

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Q.8 Are you aware Sachin Tendulkar’s association with IDBI federal?

Answer Count Percent

1. Yes 36 60.00%
2. No 24 40.00%
Total 60 100%

Out of the 60 respondents , 60% respondents knew about the association of sachin tendulkar with IDBI while 40%
respondents didn’t know about his association with IDBI.

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Q.9How did you come to know about IDBI Federal?

Answer Count Percent

1. Tv Ads 12 20.00%
2. Promotional Posters 23 38.33%
3. Word of mouth 22 36.67%
4. Agent 3 5.00%
Total 60 100%

As per the above bar graph and research conducted , 23 respondents out of 60 came to know
about IDBI Federal through promotional posters , 22 respondents through word of mouth , 12
through tv ads and only 3 respondents through agents.

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Q.10 How do you think insurance products could be more appealing to you?

Answer Count Percent

1. Tax Benefits 13 21.67%
2. Life Cover 22 36.67%
3. Bonuses 22 36.67%
4. Good Returns 3 5.00%
Total 60 100%

As per the research life cover and bonuses are the most attractive factors that are appealing to
the customers. Both these factors got 22 votes each from 60 respondents . 13 respondents find
tax benefits to be more appealing whereas only 3 respondents find good returns as an appealing
factor.

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Q.11 Would you recommend other about IDBI Federal Life Insurance?

Answer Count Percent

1. Yes 35 58.33%
2. No 25 41.67%
Total 60 100%

Out of the 60 respondents it can be seen that 58% respondents would recommend IDBI Federal
to others while 42% will not recommend the IDBI federal product to others.

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Q.12 What is the cheapest way to buy insurance according to you?

Answer Count Percent

1. Brokers / agents 12 20.00%
2. Bankassurance ( distribution through partner banks) 23 38.33%
3. Insurance marketing firm 22 36.67%
4. Online 3 5.00%
Total 60 100%

As per the research it can be seen that 23 respondents think that bankassurance is the cheapest
way to buy insurance, 22 think that insurance marketing firm is the cheapest way , 12
respondents think that buying through agents is cheapest way and 3 think that buying insurance
online is the cheapest way.

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Q.13 Did any insurance agent ever approach you?

Answer Count Percent

1. Yes 35 58.33%
2. No 25 41.67%
Total 60 100%

Out of the 60 respondents 58% of the respondents say that an insurance agent has approached
them while 42% say that they have not been approached by an insurance agent ever.

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Q.14 How many members are there in your family?

Answer Count Percent

1. Less than 4 12 20.00%
2. 4-6 23 38.33%
3. 7-8 22 36.67%
4. More than 8 3 5.00%
Total 60 100%

Out of the 60 respondents 12 have a family of less than 4. 23 respondents have a family size
between 4-6 , 22 respondents have a family size between 7-8 , 3 respondents have a family size
of more than 8.

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Q.15 Age

Answer Count Percent

1. Below 18 years 14 23.33%
2. 18-25 years 8 13.33%
3. 25-45 years 16 26.67%
4. 45-65 years 11 18.33%
5. 65 years and above 11 18.33%
Total 60 100%

As per the above graph , the respondents are segmented on the basis of their age . 14 out of the
60 respondents are below 18 years, 8 lie between the age group of 18-25 years , 16 are in the
age group of 25-45 years and 11 each lie in the age group of 45-65 and above 65 years.

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Q.16 Occupation

Answer Count Percent

1. Student 13 21.67%
2. Self employed 13 21.67%
3. Professional/ Employed 5 8.33%
4. Housewife/ Homemaker 10 16.67%
5. Retired 19 31.67%
Total 60 100%

As per the chart the respondents are segmented on the basis of their occupation. Out of the 60
respondents 13 each are students and self employed, 5 are professionals , 10 are homemakers
and 19 are retired people.

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 CHAPTER 5
FINDINGS AND RECOMMENDATIONS

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5.1 FINDINGS

 The survey was done by floating online questionnaire to target the youth who are
already working or would be joining the work force in a year or two. The respondents’
age recorded to be in between 21 - 35 years. The sample size was 60.

 People in this age group believe in doing their own research before buying insurance
policies. Now people also like to look at prospectus before purchasing the policies. They
are least likely to purchase the policies just by the description given by agents and
brokers.

 Most people say that they would go for buying insurance policies online because of the
belief that policies are cheaper to purchase online. Agents are the second most preferred
channel whereas buying policies through banks and insurance marketing firm are in
third and fourth spot for this age group respectively.

 Online platforms are the major source for creating brand insurance of the company. TV
commercials have contributed to around 25% in creating brand awareness. Agents and
brokers have also helped in creating brand awareness. Bill boards and hoardings don`t
have much impact in building the brand.

 ULIPs offer a good investment alternative but it seems this age group is not very much
aware about the ULIPs. So the insurers have their task cut out to outreach this segment
with ULIPs.

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 5.2 recommendations


The company needs to make the details of products and policies easily accessible
online because people now believe in doing their own research. Prospective customers
should be encouraged to contact the company`s staffs online through social media or
emails to get their queries answered. This would help the company to provide relevant
information about their products and the chances of getting mislead will be very less.
The company should call the interested customers to know whether their queries have
been resolved or they need further assistance. This would create good will for the

company as well.


 The company should give all the details in the prospectus without leaving any space for
doubt in later stages. In this business those companies will win which the customers
would perceive honest in their dealings and presenting least surprises.


 There should be proper training for the agents so that they provide correct information
to the customers without any intention of cheating. To target people who like to buy
insurance from well established companies, IDBI Federal should promote its strong
credentials and public private partnership which may win the trust of the customers
who want to do business with only government insurers.

 Life insurance is primarily bought for financial security and most people believe the
same. But there are people who see life insurance as tax saving instruments and as an

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 investment option with additional benefits of life cover. The company should promote
its products to meet the specific needs of customers. It can be done through direct
channels by first asking agents to assess the needs of customers instead of blindly
pushing the products to maximize their benefits. After doing proper need assessment,
they should be offered products that are most suitable to them. This concept of need
assessment should also be promoted via online channels. This may work as a
differentiation factor for the company and customers may look at the company as a
credible one which is going to have a long term impact on its profitability.


The people in this age group wants to buy insurance online because they know that
absence of an agent will reduce the overall cost of buying insurance and hence
additional savings for them. To cater to their needs, the company should offer at least
one product from each category (money back plan, term plan, ULIP plan) online. This is
to ensure that lack of option doesn`t cause the insurer to lose customers for this
reason only. There are many people who like to talk to a credible face before
committing to buy an insurance policy and they would stick to it. But for this particular

age group providing more options is always going to attract more business.

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SURVEY TOWARDS THE MARKET POTENTIAL OF IDBI
FEDERAL LIFE INSURANCE

1. Gender
(a) Male (b) Female

2. Income
(a) 3lakh-5 lakh (b) 5Lakh-10Lakhs (c ) >10Lakhs

3. Do you have an insurance policy?

(a) Yes (b) No

4. From which insurance companies are you insured?

(a) LIC
(b) IDBI Federal
(c) Aviva Life Insurance
(d) Bajaj Allianz Life Insurance
(e) ICIC Prudential Life Insurance

5. How many policies do you have?

(a) Less than 2
(b) 2-4
(c) 4-6
(d) More than 6

6. Are you aware of the insurance policy IDBI Federal providing?

(a) Yes (b) No

7. If yes, what are the products you aware of?

(a) Child Plan
(b) Endowment Plan
(c) Group Plan
(d) Money Back Plan

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 (e) Wealth Plan
(f) Term Plan

8. Are you aware Sachin Tendulkars association with IDBI federal?

(a) Yes (b) No

9. How did you come to know about IDBI Federal?

(a) Tv Ads
(b) Promotional Posters
(c) Word of mouth
(d) Agent

10. How do you think insurance products could be more appealing to you?
(a) Tax Benefits
(b) Life Cover
(c) Bonuses
(d) Good Returns

11. Would you recommend other about IDBI Federal Life Insurance?
(a) Yes
(b) No

12. What is the cheapest way to buy insurance according to you?

(a) Brokers / agents
(b) Bankassurance ( distribution through partner banks)
(c) Insurance marketing firm
(d) online

13. Did any insurance agent ever approach you?

(a) Yes (b)No

14. How many members are there in your family?

(a) Less than 4 (b) 4-6 (c) 7-8 (d) More than
8

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 15. Age
(a) Below 18 years
(b) 18-25 years
(c) 25-45 years
(d) 45-65 years
(e) 65 years and above

16. Occupation
(a) Student
(b) Self employed
(c) Professional/ Employed
(d) Housewife/ HomemakerRetired

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