How LIC Advertising Positions Insurance Products

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PRODUCT POSITIONING THROUGH ADVERTISEMENT: A STUDY OF LIC

PRODUCTS
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ZENITH International Journal of Business Economics & Management Research__________ ISSN 2249- 8826
ZIJBEMR, Vol.5 (9), SEPTEMBER (2015), pp. 63-76
Online available at zenithresearch.org.in
PRODUCT POSITIONING THROUGH ADVERTISEMENT:

A STUDY OF LIC PRODUCTS
MONIKA BANGARI*; DR.D.S.CHAUBEY**
*RESEARCH SCHOLAR
UTTARANCHAL UNIVERSITY, DEHRADUN.
**PROFESSOR & DEAN,

UTTARANCHAL UNIVERSITY, DEHRADUN.
ABSTRACT
In recent times the growth and sustainability of LIC insurance market has become the great
challenge before the management .To present products in the best possible light to different target
audiences a intended marketing technique is used called PRODUCT POSITIONING. This study is
aimed at understanding the product positioning of LIC through advertising and discusses the factors
of the advertising that generates the consumer awareness towards the effect of LIC advertisements
and buying decisions. For this purpose survey of 239 respondents were done to establish the
dimensions regarding advertising and product positioning. The collected data were analyzed using
Statistical Package for Social sciences Research (SPSS) and various statistical tests were applied. It has been
observed that the most important factors of advertising that influence the buying decision of the
customers and helps in positioning LIC insurance in the mind of the customers are the unique and
exclusive message shown in the LIC ads. Memorable and trustworthy ads of LIC associate the
customers with them and differentiate LIC with other insurance companies in the market.
KEYWORDS: Product positioning, consumer awareness, advertising, unique, memorable, buying

decision, trustworthy.
INTRODUCTION
Insurance market in the past few years has witnessed stiff competition. The presence of large
number of private players and structural shift of banking industry into insurance market has made
the insurance market more competitive. The growth and sustainability of insurance market has
become the great challenge before management. In recent times, managers have started
understanding the relevance of retaining active customers with companies as a key component
guarantying their survival in the market. Positioning of the insurance product in the mind of
customer has become the key component of marketing to win the customer trust and confidence.
Positioning is the marketing activity and process of identifying a market problem or opportunity,
and developing a solution based on market research, segmentation and supporting data. Positioning
relates to strategy, in the specific or tactical development phases of carrying out an objective to
achieve a business' or organization's goals, such as increasing sales volume, brand recognition, or
reach in advertising. Positioning is all about finding a niche in the prospects mind and filling it with
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a thing that sticks. A sentence a slogan ,a jingle , rhyme, even a repo will do if it stays at mind.
Positioning also considers the competition, and you need to explain why you are unique in the
marketplace and better than the other products on the shelf. Once you have determined the
positioning for your brand, it's time to develop the message in order to influence your target groups.
The term “positioning” is widely used within the marketing and advertising communities today, and
its meaning has expanded beyond the narrow definitions of Trout and Ries. Positioning is often used
nowadays as a broad synonym for marketing strategy. However, the terms “positioning” and
“marketing strategy” should not be used interchangeably. Rather, positioning should be thought of
as an element of strategy, a component of strategy, not as the strategy itself.
The term “positioning” is, and should be, intimately connected to the concept of “target market.”
That is, a brand‟s positioning defines the target audience. For example, an airline might position
itself against other airlines, which defines the target audience as airline travelers. Or, it might
position itself against all modes of transportation between two destinations, which then defines the
target audience as all travelers between those two markets. The second positioning reaches out to a
much larger target audience.
Another example: A brand of peanut butter could position itself against all competing brands of
peanut butter, which defines the audience as peanut butter users. Or the brand might position itself
against margarine and butter, which defines a very different target market. Positioning, then, is
analogous to aiming an artillery field gun. How you position the cannon defines who and what the
target is. So, the term “aiming” is not a bad definition of positioning, and the term “targeting” is not
a bad definition of positioning.
In general, advertising objectives should be directly linked to the marketing plan, and tend to fit
into the following generic categories like informing customer about brand, persuading customer for
generating an instant response and reminding them to maintain interest and enthusiasm for a product
or service. It is a documented fact that creative, well branded, distinctive advertising generates the
best result. Remember that a message will only be successful if it appeals to the target audience, so
constantly refer back to the customer and tailor the ads to them.
Life Insurance Corporation of India (LIC) is the biggest provider of insurance and investment
services in India. It is a publicly held organization held totally by the Union Government of India
and also provides almost 24.6 percent of the government‟s expenses. Its assets have been valued at
INR 13.25 trillion. It was established during 1956 when 243 provident societies and insurers merged
together. Life Insurance Corporation (LIC) is the biggest life insurer in India and totally owned by
the union government. It specializes in individual life insurance, pension plans, and group insurance
plans. It has several subsidiaries including the following:
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 Life Insurance Corporation of India International

 LIC Housing Finance
 LIC Nepal
 LICHFL Care Homes
 LIC Lanka
LIC use all the channels of advertising from newspaper, television, internet , radio etc. LIC
advertisement primarily focus on building image of trustworthiness and reliability for themselves.
Most of the advertisements of LIC Policies carried messages like family‟s happiness, security,
protection throughout the life, reliability, trustworthy, emotional. Advertising effectiveness can be
defined as the extent to which advertising generates a certain desired effect . Measuring the
effectiveness of the advertisement is one of the most important task. Effective advertisement leads to
a positive impact on the sales. Quite often, the likeability of the advertisement is equated with its
success. And most companies and agencies believe that advertising can do no harm. At the worst, it
may be ineffective. But research reveals that bad advertising is capable of decreasing sales. The
empirical study on the subject reveals that few dimension like creativity, celebrity face, emotion
appeal made in the advertisement, purposefulness of advertisement and memorableness make the
LIC product advertising more effective.
Review of related Literature
Marketing strategy of LIC of india in the global scenario Dr. G. Karunanithi*; Dr. S.banumathy
(2012) reveals in his studies that after privatization, insurance industry has seen significant growth.
Due to low penetration and huge potential, many foreign and domestic players have entered the
sector.LIC has been reorganizing itself in order to perform better than the new players. LIC offers a
wide variety of products, which fulfills the needs of different segments of the society. The
performance of LIC has been exemplary and it has been growing from strength to strength be it
customer base, agency network and branch office network. LIC continues to remain the largest
player in the Indian life insurance market.
Product positioning and advertising Osuagwu (2006) describes a product as something that can be
offered to a market for attention, acquisition and consumption. For a product to be successful, it
must possess the ability to perform promises made in advertising as well as those made by the
salesmen. Having qualified on in that respect, companies must ensure that each segment of the
society has a brand that identifies with the aspirations of that segment of the society. In other words,
companies must try to match a particular product with a particular target audience while edging out
other similar brands targeting the same audience.
Jerry W. Thomas (2013) positioning possibilities are almost limitless for any given brand and can
be defined in many different ways. The correct positioning of a brand is basic and fundamental to its
success; an incorrect or suboptimal positioning can doom a brand to underperformance or failure.
The popular marketing writers, Jack Trout and Al Ries, started talking about position or positioning
in 1972 or thereabouts, and took credit later for having invented positioning. However, I believe that
positioning was an emerging concept and a term, in at least limited use, within the marketing and
advertising community at the time that Trout and Ries first wrote about it. Certainly, the basic
concepts of positioning were not new in 1972. The term “positioning” was described by Trout and
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Ries as the basic position in the consumer‟s mind occupied by a brand. They saw positioning as an
antidote to the “over-communicated” society, in which consumers were drowning in a sea of
advertising messages. The key, they argued, was to occupy a unique position in the consumer‟s mind
to cut through all of the confusion caused by brand proliferation and advertising clutter.
Osuagwu describes a product as something that can be offered to a market for attention, acquisition
and consumption. For a product to be successful, it must possess the ability to perform promises
made in advertising as well as those made by the salesmen. Having qualified on in that respect,
companies must ensure that each segment of the society has a brand that identifies with the
aspirations of that segment of the society. In other words, companies must try to match a particular
product with a particular target audience while edging out other similar brands targeting the same
audience.
Citing Ayer‟s Dictionary of Advertising Terms, Belch and Belch (2001:52) define positioning as
“the art and science of fitting the product or services to one or more segments of the broad market in
such a way as to set it meaningfully apart from competition.”
Aaker and Myers (1987:125) agree that the term position indicate the brand‟s or product‟s image in
the marketplace. On the other hand, Trout and Ries (1972: 51 -53) suggested that the only way a
brand can stand out among others in the market is for the brand image to contrast with the
competitors. According to them, „in today‟s marketplace, the competitors image is just as important
as your own.” Belch and Belch therefore see product positioning as relating to “the image of the
product and or other brand relative to competing products or brands. The position of a product or
brand is the key factor in communicating the benefits it offers and differentiate it from the
competition. They explain further; …the position of the product, service, or even store is the image
that comes to mind and the attributes consumers perceive as related to it. This communication occurs
through the message itself, which explain these benefits, as well as the media strategy employed to
reach the target group. A company‟s product position strategy focuses on either the consumer of the
product or the competition in the market. Both method according to Belch and Belch both
approaches involve the association of product benefits with consumer needs, while the strategy that
targets the consumer does so by linking product with the benefits the consumer derive or creating a
favourable brand image.
The positioning possibilities that exist for any given brand or service are almost infinite. Some
commonly used positioning strategies are:
 Positioning against a broader market. For example, positioning a bicycle brand as a substitute
for the automobile, rather than as a substitute for other brands of bicycles.
 Positioning against a price segment of the market. One example would be positioning a car
brand against luxury imported cars.
 Positioning against a usage segment of the market. For example, positioning a brand of
cooking oil as the very best brand of oil for frying chicken.
 Positioning against a geographic segment of a market. An example of this would be
positioning Ford trucks as made for driving conditions in Texas.
66
 Positioning against a psychographic segment of the market. For example, positioning Volvo
as the best car for drivers who are primarily concerned about safety.
 Positioning against a channel of distribution, a season of the year, a particular type of
weather, a human fear, etc.
Again, positioning possibilities are almost limitless for any given brand and can be defined in many
different ways. The correct positioning of a brand is basic and fundamental to its success: An
incorrect or suboptimal positioning can doom a brand to underperformance or failure. So, how does
one arrive at an optimal positioning for a given brand? The search for an optimal positioning begins
in the mind of the consumer, and it is here that we must turn to marketing research for help.
OBJECTIVES
Present research work has been taken up with the following objectives
1. To understand the product positioning of LIC products through advertising.

2. To measure the effectiveness of advertising /promotional activities of LIC products.
3. To create the awareness of impact of advertising to the company.
4. To understand and measure the affect of advertising in brand building.
Methodology
To achieve the above stated objective it would be appropriate to develop measures the factors of
advertising affecting the Product positioning. For this purpose, utilizing survey technique, it is aimed
at establishing the dimensions regarding measurement of advertising and product positioning. Data
was collected using questionnaire. Majority of the questions being of the close-ended type. After
having been slightly modified, was mailed to a sample of 1000 customers. Mail address was taken
by using referral techniques. Follow up calls were made to these respondents. After one-month
duration, 283 questionnaires were returned. After editing 239 responses were found suitable and
were taken for the study. Reliability study was carried out to check the internal consistency of
response and found to be 0.800. KMO test was carried out to check whether data are sufficient to go
for factor analysis and it was found to be 0.7000 which justify the data for factor analysis. The
analytical tools used such as Bivariate data analysis techniques, like factor analysis, Chi square test,
and one-way ANOVA, which are very powerful tools to build statistical relationship between
variables are also used in this study. One way ANOVA was done to compare the attitude of
respondents toward different factors. The ANOVA was done to determine if there was a significant
difference in attitude of respondents towards the advertisement and its role in product positioning.
The data collected from the questionnaires were analyzed. The table 1 presents the demographic
characteristics of respondents.
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Table 1 Demographic Characteristic of Respondents

Categories Count Percentage
Gender Male 137 57.3

Female 102 42.7
18 To 25 Years 31 13.0
Age 26 To 35 Years 119 49.8
36 To 45 Years 82 34.3
46 To 55 Years 6 2.5
56 Years And Above 1 .4
Marital Status Married 146 61.1

Unmarried 93 38.9
Graduate 94 39.3
Education Post-Graduate 93 38.9
Level Professional Qualification & Others 52 21.8
Income Level Below Rs 10000 PM 34 14.2
RS.10001 TO 15000 PM 9 3.8
RS.15001 TO 25000 PM 118 49.4
RS 25001 TO RS 40000 PM 70 29.3
Above Rs.40000 Pm 8 3.3
Occupation Student 6 2.5
Service 13 5.4
Professional 89 37.2
Business 78 32.6
Housewife 48 20.1
Any Other 5 2.1
Demography studies the population based on factors such as age, gender, economic status, level of
education, income level and employment. The analysis presented in the above table is done carefully
because the demographic characteristics helps to understand the positioning of LIC in the mind of
the population with the help of advertising. The analysis presented in the above table reveals that
sample is dominated by the young category respondent ranging in the age group of 26-35 years as it
contributes 49.8% in the sample. Majority of the respondent are male and married category .The
sample is composed of graduated person earning monthly income of Rs15000 to Rs.25000 and
majority of the respondents are professionals.
Table 2 Advertisements of LIC

Frequency Percent Valid Percent Cumulative
Percent
yes 237 99.2 99.2 99.2
Valid No 2 .8 .8 100.0
Total 239 100.0 100.0
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Advertising is the communication relayed from companies to persuade an audience to purchase their
products .With the help of advertisement companies convey the products information to the
population and place the product in the mind of customer. Survey reveals that almost all the
respondents in the sample have seen the insurance ad.
Table 3 Media Accessibility

Responses Percent of Cases
N Percent
Radio 3 0.5% 1.3%
Television 216 39.3% 90.4%
Newspaper 92 16.7% 38.5%
$m1a Magazine 4 0.7% 1.7%
Hoarding 161 29.3% 67.4%
Internet 70 12.7% 29.3%
Social media 4 0.7% 1.7%
Total 550 100.0% 230.1%
Advertising media selection is the process of choosing the most cost-effective media for advertising,
to achieve the required coverage and number of exposures a target audience. Hence multiple
response is collected from the sample and the most preferred media among the respondents is
Television. 39.3% respondents selected Television is the best media to get the information about
the LIC followed by Hoarding that is 29.3%.
Table 4 Attribute Preference

Percent
Creativity 5 2.1 2.1 2.1

Celebrity face 2 .8 .8 3.0
Valid Security 217 90.8 91.6 94.5
Emotional 13 5.4 5.5 100.0
Total 237 99.2 100.0
Missing System 2 .8
Total 239 100.0
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The remembrance of what has been seen or heard through an advertisement relate the customer with
the product .After watching the advertisement the factor that comes in the mind of the customer
while recalling the ad is the most important dimension to be focussed by the company, and in this
research the top most thing that comes in the mind is the security that is provided by the insurance
company.
Table 5 Factors important for convicting Customer in favour of LIC Policies
Responses Percent of Cases
N Percent
Multiple choice of policy 166 35.2% 69.7%
Service 75 15.9% 31.5%
Value for Money 126 26.8% 52.9%
a
Reliability 33 7.0% 13.9%
$m3
Attractiveness 6 1.3% 2.5%
Country of origin 12 2.5% 5.0%
Brand Name 51 10.8% 21.4%
Selectivity 2 0.4% 0.8%
Total 471 100.0% 197.9%
The process of convicting the customers in favour of any products depends on many factors every
individual have own opinion and belief. In the survey of 239 respondents collection of different
factors are done for convicting the customers in the favour of LIC through multiple response.
Multiple choice of policies are the most powerful convicting factor along with value for money.
Mostly individuals convict to purchase policies from LIC because they provide multiple choice or
multiple varieties of policies and most of the policies are preferred as value for money.
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Table 6 Most influencing factors in the advertisement to buy a LIC policy
N Mean Std. Deviation
Brand image of the Company 239 4.12 .437
Excellent past record of performance 239 4.12 .548
My friend/acquaintances have bought from

239 3.0126 .95037
this company
Impressed by Company's ad and

239 2.6360 1.05586
promotion
Valid N (listwise) 239
An attempt was made to find out the most influencing factors in ads to buy LIC policies. Customers
were asked to rate the factors on a scale of 1 to 5 according to the importance they give while
watching a LIC policies ads. Mean and standard deviation was calculated and found that brand
image and excellent past record of performance are the most influencing factors as both the factors
scored highest mean of 4.12.
Factor Analysis
Factor analysis is a useful tool for investigating variable relationships for complex concepts such as
socioeconomic status, perception, attitude or psychological scales. It allows researchers to
investigate concepts that are not easily measured directly by collapsing a large number of variables
into a few interpretable underlying factors. Several sequential factors influence our perception.
Exposure involves the extent to which we encounter a stimulus. It is followed by the Interpretation
which involves making sense out of the stimulus. The perception forms Consumer attitudes that are
a composite of a consumer‟s (1) beliefs about, (2) feelings about, (3) and behavioral intentions
toward some object--within the context of marketing. These components are viewed together since
they are highly interdependent and together represent forces that enhance brand positioning.
Keeping these into consideration, an attempt was made to identify the Factor of advertisement that
helps marketer to positioning of LIC product and services in the mind of customers. The message
created by the advertisement about the insurance product form a brand essence and is able to connect
with product emotionally.The message created by the advertisement about the insurance product is
authentic and inspire me to relate with product. Advertisement of this product is simple, memorable,
and tailored to the target market. Advertisement of LIC provides an unmistakable and easily
understood picture of the brand that differentiates it from competitors, The advertisement of LIC
product is credible, and my brand can deliver on its promise, Advertisement helps me to evaluate the
consistency of the powerful brand.
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Advertisement Make the LIC a powerful brand, Advertisement of LIC place a unique place of
product in my mind, Advertising of LIC product reduces my risk associated with the product , The
message in the advertisement of LIC product is able to gain my attention and enhance my retaining
ability of the product advertised, I believe in the quality and service in valuating the insurance
product rather than advertising , I Feel Advertising of LIC product is very attractive, I Feel
Advertising of LIC product is very Reliable, I Feel Advertising of LIC product reduces search cost
and enrich selectivity , I feel advertising of Life Insurance Corporation product help a lot in building
strong relationship with customers, Ad message is understandable, Ad message is believable, Ad
message is relevant to me, After viewing this ad I‟ll consider to buy the product, Ad is only a good
source of information to me, The actual product I buy in usually the same as advertised Respondents
were asked to rate the various statement on a scale of 1 to 5 in order of their preference. The
exploratory factor analysis was used in order to identify the various motivational factors of
advertisement influencing in favour of insurance product.. Principal Component analysis was
employed for extracting factors and orthogonal rotation with Varimax was applied. As latent root
criterion was used for extraction of factors, only the factors having latent roots or Eigen values
greater than one were considered significant; all other factors with latent roots less than one were
considered insignificant and disregarded. The extracted factors along with their Eigen values are
shown in table 7. The factors have been given appropriate names on the basis of variables
represented in each case. The names of the factors, the statements, the labels and factor loading have
been summarized in Tables 7. There are 7 factors each having Eigen value exceeding one for
motivational factors. Eigen values for seven factors are 4.859%, 1.962% 1.711% 1.469%
1.386% 1.219% 1.09% 1respectively. The index for the present solution
accounts for 68.48 % of the total variations for the factors of brand equity. It is a pretty good
extraction because we are able to economise on the number of choice factors (from 21 to 7
underlying factors), we lost 31.5 % of information content for choice of variables. The percentages
of variance explained by factors one to four are 24.295 9.809 8.557 7.347 6.928 6.094
5.457 respectively. Large communalities indicate that a large number of variance has been
accounted for by the factor solutions. Varimax rotated factor analysis results for factors are shown in
table 7 which indicates that after 7 factors are extracted and retained the communality is 0.675 for
variable1, 0.729 for variable 2 and so on. It means that approximately 68.485% of the variance of
variable1 is being captured by 7 extracted factors together. The proportion of the variance in any one
of the original variable which is being captured by the extracted factors is known as communality
(Nargundkar, 2002).
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Table 7 Rotated Component Matrixa

Component Comm
Uniqu Trust Memorabil Bon Brand Inform Prod unalitie
eness worth ity ding buildin ativene uct s
of iness appe g ss confo
adverti al messag rman
sement e cenes
s
Advertisement of LIC place a unique place of .675
.768
product in my mind
The message in the advertisement of LIC product .729
is able to gain my attention and enhance my .717 .338
retaining ability of the product advertised
I Feel Advertising of LIC product is very .718
.716
attractive
Advertising of LIC product reduces my risk
.604 .398
associated with the product.
Ad message is believable .833 .800
Ad message is relevant to me .347 .772 .333 .881
After viewing this ad I‟ll consider to buy the .629
.654 .301
product
Ad message is understandable .515 .444 .572
Advertisement of LIC provides an unmistakable .612
and easily understood picture of the brand that .772
differentiates it from competitors.
The message created by the advertisement about .697
the insurance product is authentic and inspire me .765
to relate with product.
The advertisement of LIC product is credible, and .651
.608 .382
my brand can deliver on its promise.
Advertisement of this product is simple, .703
.361 .479 -.337 -.342
memorable, and tailored to the target market.
I Feel Advertising of LIC product reduces search .710
.767
cost and enrich selectivity.
I feel advertising of Life Insurance Corporation .686

product help a lot in building strong relationship .760
with customers
73
I Feel Advertising of LIC product is very .727

.379 .547 -.334 .358
Reliable
Advertisement Make the LIC a powerful brand .801 .705
Advertisement helps me to evaluate the .665

.420 .620
consistency of the powerful brand
.784
Ad is only a good source of information to me .858
I believe in the quality and service in valuating .645

.745
the insurance product rather than advertising.
The message created by the advertisement about .483
the insurance product form a brand essence and is -.536
able to connect with product emotionally.
Initial Eigenvalues
4.859 1.962 1.711 1.469 1.386 1.219 1.091
% of Variance
24.295 9.809 8.557 7.347 6.928 6.094 5.457
Cumulative % 50.00
24.295 34.105 42.662 9 56.937 63.031 68.488
Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 10 iterations.
Principal components & associated Variables indicate that first factor (F1 Uniqueness of advertisement
factor) indicating that the advertising helps in positioning the insurance product in the mind of
customer if it is unique in nature. This is the combination of variables like Advertisement of LIC
place a unique place of product in my mind The message in the advertisement of LIC product is able
to gain my attention and enhance my retaining ability of the product advertised I Feel Advertising of
LIC product is very attractive Advertising of LIC product reduces my risk associated with the
product. And accounts for 24.295%variance of the total variances. The second Factor (F2) is the
trustworthiness factor which is the combination of variable like , Ad message is believable Ad message is
relevant to me After viewing this ad I‟ll consider to buy the product Ad message is understandable and accounts
9.809% variance of total variance. Third factor(F3) is the Memorability factor indicating that
advertising position the product if it is having quality of memorableness and is the combination of
factor like Advertisement of LIC provides an unmistakable and easily understood picture of the
brand that differentiates it from competitors. The message created by the advertisement about the
insurance product is authentic and inspire me to relate with product. The advertisement of LIC
product is credible, and my brand can deliver on its promise. Advertisement of this product is
simple, memorable, and tailored to the target market and account 8.557% variance of the total
variances. Fourth factor (F4) is the Bonding appeal of advertisement which denotes that
74
advertisement is successful in positioning product is it is able to attract customer by emotional

bonding apple and is the combination of variable like I Feel Advertising of LIC product reduces
search cost and enrich selectivity. I feel advertising of Life Insurance Corporation product help a lot
in building strong relationship with customers I Feel Advertising of LIC product is very Reliable
and account for 7.347%. fifth factor (F5) is the Brand building message about products through
advertisement and is the combination of variable like , Advertisement Make the LIC a powerful brand
Advertisement helps me to evaluate the consistency of the powerful brand and account for 6.928%of
variance. Sixth factor (F6) is the informative quality of advertisement which is Ad is only a good source
of information to me and account for 6.064% of variance. Seventh factor (F7) is the Product
conformanceness factor and is the combination of variable like I believe in the quality and service in
valuating the insurance product rather than advertising. The message created by the advertisement
about the insurance product form a brand essence and is able to connect with product emotionally
and account for5.457% of total variance.
Table 8 Does advertising effect the decision of purchasing a insurance policy

Percent
Yes 232 97.1 97.1 97.1
Valid No 7 2.9 2.9 100.0
Total 239 100.0 100.0
Advertising denotes a specific attempt to popularize a specific product or service at a certain cost. It is a
method of publicity. It always intentional openly sponsored by the sponsor and involves certain cost so it is
clear that advertising plays a vital role in getting the customers informed and convict in the favour of
purchasing. From the above table it is clear that around 97.1% of total respondents feels that advertising
influence their decision of purchasing insurance policy.
Discussion
In the current scenario every insurance company wants to position their policies schemes in the
mind of customer in such a manner that customer easily recall and convict the company products. In
this study the positioning of LIC policies are observed with the help of advertising. Advertising
factors are studied under this research and how they are influencing the decision of purchasing
policies. Most of the respondents in survey suggests that unique factor in the advertisements makes
the advertisements of LIC noticeable and interesting. With the help of factor analysis seven main
factors of advertising (Uniqueness of ads, trustworthy ,memorable, bonding appeal, informative,
product conformances and communalities) is identified which makes the positioning of LIC
effective and helps in decision making.
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Conclusion
The study suggested that the advertising plays a vital role in the decision making of the customers.
The survey clearly determines that customers are aware about the LIC ads because most of the
respondents seen the ads and there are several factors of advertising that are influencing the
decisions of the customers while purchasing the insurance policies. It can be interpreted from the
survey that effective advertising has a great impact on the decision making process of the consumers for
which the advertising has to be effective so as to leave a lasting impact in the mind of the customers.
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How LIC Advertising Positions Insurance Products

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PRODUCT POSITIONING THROUGH ADVERTISEMENT: A STUDY OF LIC

Article · September 2015

Dhani Shanker Chaubey Monika Bangari

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PRODUCT POSITIONING THROUGH ADVERTISEMENT:

**PROFESSOR & DEAN,

KEYWORDS: Product positioning, consumer awareness, advertising, unique, memorable, buying

 Life Insurance Corporation of India International

Review of related Literature

1. To understand the product positioning of LIC products through advertising.

Table 1 Demographic Characteristic of Respondents

Gender Male 137 57.3

Marital Status Married 146 61.1

Table 2 Advertisements of LIC

yes 237 99.2 99.2 99.2

Total 239 100.0 100.0

Table 3 Media Accessibility

Table 4 Attribute Preference

Frequency Percent Valid Percent Cumulative

Creativity 5 2.1 2.1 2.1

Table 5 Factors important for convicting Customer in favour of LIC Policies

Responses Percent of Cases

Multiple choice of policy 166 35.2% 69.7%

Service 75 15.9% 31.5%

Value for Money 126 26.8% 52.9%

Country of origin 12 2.5% 5.0%

Brand Name 51 10.8% 21.4%

Selectivity 2 0.4% 0.8%

Total 471 100.0% 197.9%

Table 6 Most influencing factors in the advertisement to buy a LIC policy

N Mean Std. Deviation

Brand image of the Company 239 4.12 .437

Excellent past record of performance 239 4.12 .548

My friend/acquaintances have bought from

Impressed by Company's ad and

Table 7 Rotated Component Matrixa

I feel advertising of Life Insurance Corporation .686

I Feel Advertising of LIC product is very .727

Advertisement helps me to evaluate the .665

I believe in the quality and service in valuating .645

Extraction Method: Principal Component Analysis.

a. Rotation converged in 10 iterations.

advertisement is successful in positioning product is it is able to attract customer by emotional

Frequency Percent Valid Percent Cumulative

Yes 232 97.1 97.1 97.1

Valid No 7 2.9 2.9 100.0

Total 239 100.0 100.0

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