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)

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

(NIDHI.R.RAO)

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.

Signa
ture
(NID
HI.R.RAO)

About the project

Title 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.

S.No.
1

CONTENT
CHAPTER-1 INTRODUCTION

-2

CHAPTER-2 OBJECTIVE OF THE STUDY

CHAPTER-3 PROBLEM SCOPE OF THE

PAGE No.
6-36
38-39
40-46

STUDY
4

CHAPTER-4 REVIEW OF LITERATURE

CHAPTER-5 RESEARCH METHODOLOGY 53-55

CHAPTER-6 DATA ANALYSIS

CHAPTER-7 USE AND IMPORTANCE OF

THE STUDY

CHAPTER-8 - SUGGESTION

CHAPTER-9 CONCLUSION

10

CHAPTER-10 SECONDARY DATA

11

CHAPTER-11 BIBLIOGRAPHY

47-52

CHAPTER 1
INTRODUCTION

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.

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.

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

Malhotra, were

by

formed

former

Finance secretary and RBI Governor R.N.

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

10

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
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

11

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
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.

12

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).

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 197580
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

13

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
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

14

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
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-

15

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.
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

16

"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.
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

renewable and mortgage insurance.

term

insurance

include level, annual

17

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
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

18

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
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.

19

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.
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

20

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
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).

21

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
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.

22

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.
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, 20year, and are paid out at the age of 65.

23

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.
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

24

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

25

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.

26

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

27

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

28

Child
Health

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.

29

ULIP Wealth Plans

ICICI Pru LifeStage Wealth II
ICICI Pru Pinnacle II
ICICI Pru LifeTime Premier
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 SavenProtect
ICICI Pru CashBak

30

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.
Traditional Child Plans
ICICI Pru Smart Kid Regular Premium
Unit Linked Child Plans
ICICI Pru Smart Kid Premier

31

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
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

32

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
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

33

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

Rural Plans

34

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,
effective advertising is that which reaches prospective buyers a sufficient

35

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 firms
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 cant be done. The
fact is that a full curriculum can be implemented, is already integral to nearly every

36

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

37

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

38

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 LICs
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, Indias 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

39

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
brands 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

40

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

41

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, LICs 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

42

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.

43

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

44

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

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

45

or to remove the communication barriers. With the psychological approach, other

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.

46

The major criticisms to the dichotomous model concern the partial evaluation and
the inability to provide reliable breakdowns of the effects achieved by advertising
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

47

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
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

48

To know how they face their competitors strategies.

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:

49

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 LICs
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

50

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, Indias 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.

51

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. Todays 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.

52

What companies need to understand is products 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
customers 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 customers 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

53

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, LICs 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:

54

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

55

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

56

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,

57

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,"

58

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
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). Germanys Commerzbank Is Still in No Mans

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.

59

Elisabetta Corvi
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

60

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
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 companys image by emphasizing its own resources, skills

61

and/or character. Many astute business people now recognize corporate brands
as fundamental business assets, and have begun reaching out to customers,
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

62

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.
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

63

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..
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:

64

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.

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.

65

DATA ANALYSIS

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

Radio
8.0

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Total responses:
50

media
radio; 8%
internet; 14%
tv; 42%

news paper; 36%

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
Never
8.0

Responses
4

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Rarely
28.0

14

Sometimes
52.0

26

Often
4

8.0

Very often
2

4.0

Total responses:
50

Advertising
very often; 4% never; 8%
often; 8%
rarely; 28%

sometimes; 52%

According to the above fig. 52% sometime like to share with friend and family, 28
% rarely share 8% often and 8% never.

68

Q3. Have you saw any Life Insurance Product Ad?

Percentage
Yes
96.0%
No
2
Total responses:
50

Responses
48
4.0%

69

LIC ad
no; 4%

yes; 96%

96% people like seeing lic ad and there are very few who didnt see.

Q4. On Which channel you saw Insurance ad mostly?

Percentage
Zee T.V
7

Responses
14.0

70

Sony
13

26.0

Star
2

4.0

News Channel
28

56.0

Total responses:
50

channel
zee tv; 14%

news channel; 56%

sony; 26%
star; 4%

56% likely to see insurance ad on news channel. 26% on sony tv 14% on zee tv.
And 4% on star...tv.

71

Q5. Which company ad you find mostly? Rank Them..

Average
Score

Responses

Life Insurance Corporation of India

50

1.22 / 5

HDFC Std. Life Insurance Co. Ltd.

50

2.84 / 5

Birla Sun Life Insurance Co. Ltd.

50

3.96 / 5

ICICI Pru. Life Insurance Co. Ltd.

50
Reliance Life Insurance Co. Ltd.
50

2.16 / 5
4.82 / 5
4.82 /

72

LIC of india; 8%
RELIANCE LIFE; 32%

ICICI PRU.; 14%

HDFC ; 19%

BIRLA SUN LIFE; 26%

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

73

Yes
47

94.0%

No
3

6.0%

Total responses:
50

ADVETISEMENT
NO; 6%

YES; 94%

Above fig. Say that The punch line of ad were so exiting that 94% people can
easily recall the ad. And 6% not.

74

Q7. Before buying a product do you pay attention to the Brand Name?
Percentage
Responses
Yes
40

80.0%

No
10

20.0%

Tot al responses:
50

75

ATTENTION

NO; 20%

YES; 80%

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?

76

Average Score
Responses
Life Plan
50

1.66 / 4

Health Plan
50

2.36 / 4

Child Plan
50

2.28 / 4

Retirement Plan
50

3.70 / 4
1.70 / 4

insurance policy

Life plan; 17%

retirement plan; 37%
health plan; 24%
child plan; 23%

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.

77

Q9. Other than T.V Where you saw Life insurance ad?
Average Score
Responses
Internet
50

2.14 / 5

Newspaper
50

1.36 / 5

Holdings
50
Friends/Family
50
Radio
50

2.78 / 5
4.10 / 5
4.62 / 5
4.62 / 5

78

lic ad.
internet; 14%
radio; 31%

newspaper; 9%
holding; 19%

friends/family; 27%

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

79

Buy the insurance policy

60%

45

Recommend the insurance policy

20%

10

Suggest the insurance policy

15%

Would you like to inform

Would you like to inform

Suggest the insurance policy
Recommend the insurance policy

5%

; 5%
Buy the insurance
; 15%
policy ; 60%
; 20%

Above fig. Say that 60% were influence to buy the insurance 20% recommend
policy 15% suggest and 5%like to inform.

80

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

n0; 20%

yes; 80%

Above fig. say that 80% of family member influence us to buy a insurance of own
interest and 20% not....

81

Q12. Based on the feature ad in that ad rank them....

percentage
response
The ad msg is understandable

66%

The ad msg is relevant to me

42
11%

24
The ad is reliable

18%

18
The benefit describe in the ad are believable to me...

5%

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The benefit describe in the ad are believable to me...

The ad is reliable
; 18%
The ad msg is understandable
The ad msg is relevant to me

; 5%
; 66%

; 11%

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.

84

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.

85

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.

86

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

87

CONCLUSION

88

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 companys
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.
In television channels, entertainment channels lead in the frequency of life
insurance ads. They have also greater relative visibility in comparison of other

89

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

90

magazine :
1.
2.
3.
4.
5.
6.

forbes,
india today,
outlook
business week
business today
business india

journal:
1. international management
2. Indian journal
3. Sage india

91

BIBLIOGRAPHY

92

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
iv . Belch, Mandelchge (6thEdition, Tata McGraw Hill),Advertising and
Promotion.
v. Batra (5thedition, Pearson Prentice Hall) Advertising Management.

93

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)