Changing Consumer Perceptions about Insurance - ICICI Prudential Life Insurance

Details

Case Code : CLMC-036
Publication date : 2005
Subject : Marketing Communications
Industry : -
Length : 04 Pages
Price : Rs. 100

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Key words:

ICICI Prudential Life Insurance (ICICI Pru), Life Insurance Corporation of India (LIC), Tax Saving Tool ORG Marg, Brand Awareness, Brand Identity, Social Security Net, Pension Schemes, Post-Retirement Life ‘Chintamani’ and Lowe.

Note

1: This caselet is intended for use only in class discussions.
2: More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.

 

Abstract:

The caselet details the well-designed marketing communications initiatives developed by ICICI Prudential Life Insurance (ICICI Pru) that helped it gain leadership position in the Indian life insurance market. During its initial years ICICI Pru focused on creating a strong brand identity and awareness and designed the marketing communication strategy accordingly. However, in 2002 it completely changed the communications strategy and began to promote specific products from its product portfolio based on the consumer research study. One of the promotional objectives designed was to create a feel good factor around retirement and change customers’ perception of retirement as a mark of old age and loss of financial independence

Issues:   » Role of marketing communications in financial services sector   » Corporate advertising and its role in financial services   » Product specific advertising and its significance   » Importance of post advertising tests Introduction In the year 2000, the Government of India opened up the life insurance market to private players. Till then, the Indian life insurance industry had been dominated by Life Insurance Corporation of India (LIC), the only player in the insurance market. This monopoly had created such a strong brand identity and awareness for LIC that LIC became a generic word for life insurance in India.

After deregulation, many domestic and international players entered the life insurance market. However, the Indian insurance industry continued to face various problems such as low penetration (only 22% of the insurable population were insured) and low premium to GDP ratio (of 1.3). Growth was also hampered by the existing customer perception that life insurance was a tax saving tool. Another problem was that the entry of many players had cluttered up the market.

Questions for Discussion:

1. ICICI Pru deviated from the usual advertising strategy that other insurance providers adopt – of promoting the product line. Instead, it launched an ad campaign “We cover you at every step in life,” that highlighted the ICICI Pru brand. Explain the motives of ICICI in launching this ad campaign?

2. Though ICICI Pru’s corporate advertising campaign reaped rich dividends, the company chose to adopt a product specific advertising strategy in later years. What customer demographics did the company identify, that led it to adopt a change in the existing advertising strategy?