Case Studies and Management Resources
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Asia's Most Popular Collection of Management Case Studies |
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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 gameplan, 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 LIC's products being great tax saving tool for salaried individuals who came under the income-tax bracket.
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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 new insurance companies used all channels of advertising from newspapers and the television to insurance agents and direct mailers. A fierce battle seemed to have begun among Indian insurance companies to make one's own brand win over the other. 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 skeptical about them. Hence, the new companies focused their campaigns primarily on building an image of trustworthiness and reliability for themselves.
Life Insurance Marketing in India (A) The Changing Advertising & Promotion Norms - Next Page >>>
Case Code : MKTG026
Themes: Advertising and Promotion
Case Length : 11 Pages
Period : 2000-2002
Organization : ICICI Prudential, Max New York Life, ETC
Pub Date : 2002
Teaching Note : Available
Countries : India
Industry : Insurance
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