CAPSTONE PROJECT – MARKKETING: INTERIM REPORT

INDUSTRY – INSURANCE

Project Group Info:

Batch Details
Team Members Muthukumar V
Bushra Nazli Khan
Jeevan Sai
Manisha Meena
Domain of the project Insurance
Mentor Name Mr. Ankur
Group Number 3

02.02.2025
CHENNAI
 Acknowledgements

We wish to place on record our deep appreciation for the guidance and help
provided to us by our Mentor Mr. Ankur. Mr. Ankur helped us narrow down on
the choice of the Project as well as the scope and focus area of the Project.
He gave us valuable feedback at every stage to enhance the process and the
outputs.

We would also like to place on record our appreciation for the guidance
provided by Mr. Eswarkanth, Vice President & Zonal Head, TATA AIG Life
Insurance & Mr. Sandeep, Vice president, MAX Life Insurance. Their valuable
feedback and market inferences are being a source of inspiration in helping
us to work on this project.

We certify that the work done by us for conceptualizing and completing this
project is original and authentic.

Date: 02nd Feb, 2025

V Muthukumar

Place: Chennai
Bushra Nazli Khan

Jeevan Sai M

Manisha Meena

1 | Page
Contents
Name of the Guide:............................................................................................................................................
Introduction:.......................................................................................................................................................
Industry Profile..............................................................................................................................................
Company Profile............................................................................................................................................
Peer Analysis..................................................................................................................................................
Literature Review...............................................................................................................................................
Research Methodology: This section is very crucial and will guide the remaining project from here. This
section should include the following:................................................................................................................
Research Problem (Around 500 Words)........................................................................................................
Why Is This Problem Significant / Need for The Study?..............................................................................
Research Design.............................................................................................................................................
∙ Research design- Tools/ Techniques to be Employed................................................................................
∙ Rationale on using that design...................................................................................................................
∙ Source of the data (check on the validity & authenticity of data before employing it).............................
Expected Outcome of the Study-.......................................................................................................................
References & Bibliography:..............................................................................................................................
Conclusion.........................................................................................................................................................

2 | Page
 INTRODUCTION:

A BRIEF HISTORY OF THE INSURANCE SECTOR:

The business of insurance in India in its existing form started in the year
1818 with

the establishment of the Oriental Life Insurance Company in Kolkata. Some

of the

important milestones in the insurance businesses in India are:

 1912: The Indian Life Assurance Companies Act enacted as the first
statute to

regulate the life insurance business.

 1928: The Indian Insurance Companies Act enacted to enable the

government to

collect statistical information about both life and non-life insurance

businesses.

 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 are 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 crores from the
Government of

India.

Some of the milestones in general insurance businesses in India are:

 1907: The Indian Mercantile Insurance Ltd. set up, the first company to
transact all

3 | Page
classes in 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.

4 | Page
 LITERATURE REVIEW

Insurance industry has always been a growth-oriented industry globally. On

the Indian scene too, the insurance industry has recorded noticeable growth
vis-à-vis other Indian industries.

The Triton General Insurance Co. ltd. was the first general insurance
company to be established in India in1850, which was wholly British owned
company. The first general insurance company to be set up by an Indian was
Indian Mercantile Insurance Co. ltd was established in 1907. There emerged
many players on the Indian scene thereafter.

The general insurance business was nationalized after promulgation of

General Insurance Business (Nationalization) Act, 1972. The post-
nationalization general insurance business was undertaken by the General
Insurance Corporation of India (GIC) and its 4 subsidiaries:

1. Oriental Insurance Company Limited

2. New India Assurance Company Limited

3. National Insurance Company Limited

4. United India Insurance Company Limited

Towards the end of 2000, the relation ceased to exist, and the four
companies are,
at present, operating as independent companies.

The Life Insurance Corporation (LIC) was established on 1.9.1956 and had
been
the sole corporation to ride the Life Insurance business in India.

The insurance industry saw a new sun when the Insurance Regulatory &
Development Authority (IRDA) invited applications for registration as insurers
in August 2000. With the liberalization and opening of the Sectors to private
players, the industry has presented promising prospects for the coming
future.

The transition has also resulted in the introduction of ample opportunities for
the professionals including Chartered Accountants.

The Indian insurance industry is featured by the attributes:

-Low market penetration

5 | Page
- Ever-growing middle-class component in the population

-Growth of consumer movement with an increasing demand for better

insurance products

- Inadequate application of information technology for business

-Adequate fillip from the Government in the form of tax incentives to the
insured.

The industry formations need to keep vigil on these characteristics of the

Indian market and formulate the strategies to entail maximum contribution
to the output sector. In 1997, the Indian life and non-life insurance business
accounted for merely 0.42% of the world’s life and non-life business. The
figures of basic parameters of the industry’s performance viz. Insurance
Density and Insurance Penetration also are evident of the existing hitherto
existing low-yield Indian market conditions.

The term “Insurance Penetration” broadly measures the contribution of the

insurance industry in relation to nation’s entire economic productivity.

The insurance sector in India has come a full circle from being an open
competitive market to nationalization and back to a liberalized market again.

Tracing the developments in the Indian insurance sector reveals the 360-
degree turn witnessed over a period of almost two centuries.

BASIC FUNCTIONS OF THE INSURANCE INDUSTRY

1. RISK RECEPTION AND EVALUATION:

The fundamental function of an insurer is to provide cover against the

detriment caused to the insured due to the happening of certain specified
and agreed events. Thus, prior to providing such an umbrella through a
product, the insurer has to assess the risk involved in the transaction. The
insurer must identify the element of risk prevalent in the industry concerned
or a particular unit. The perception of risk requires the study of variables
through various methods including the application of scientific and statistical
techniques and correlation thereof with the industry or unit under study in
the light of their basic environmental and infrastructural characteristics. After
the identification and categorization of the risks perceived, the probability of
the happening of loss causing events and the security of loss has to be
assessed.

2. DESIGNING THE INSURANCE PRODUCT:

6 | Page
On the basis of the risks perceived, the insurer develops a product to cover
the stipulated risks. While designing an insurance product, an insurer decides
its cost to be charged from the insured in the form of premium, reduction
thereof in certain cases like not lodging any claim during the previous
covered periods, suggesting the implementation of risk mitigating measures
etc. the features of a product should be flexible enough to provide for
determination of premiums, rebates, additional premiums, etc. depending
upon the risks benchmark as determined.

3. MARKETING OF THE PRODUCT:

The core function of the marketing force of the insurance company is to

generate awareness about the insurance products among the target market.
But in the Indian scenario, where the insurance penetration is too low as
compared to the other nations, the marketing force needs to perform the
proactive role in developing an insurance culture. It is through the efficiency
of the sales force of an insurance company that the desirability and the
success of a product are determined.

4. SELLING OF THE PRODUCTS:

The term selling in the term of insurance industry connotes the insurance of
policies to the applicant. The non-life insurance policy basically embodies the
covenant between the insurer and the insured wherein the former agrees to
indemnify the latter for the loss caused to him on the happening of the
certain agreed events to a specific limit. The life insurance policy generally
contains the agreement whereby the insurer agrees to pay to the insured or
the beneficiary of the policy an agreed amount on the expiry of the term of
the policy or the event of death of the insured respectively.

5. MANAGEMENT OF PORTFOLIO:

The management of the portfolio includes the assessment of requirements

of funds, identification of various sources of finance, the evaluation of the
sources in the light of their cost, availability, timing etc. reconciling the
features of various sources with needs of the company and the selection of
appropriate conjunction of sources. The insurer possesses a huge amount of
funds, which need proper management. The management of the portfolio of
an insurance company requires identification of investment avenues
evaluation thereof and the selection of the most appropriate mix of
alternatives where the funds of the company can be invested. The selection
requires the knowledge of finance related functions and techniques apart

7 | Page
from the in-depth know of the patterns of requirement of funds in the
company as well as industry.

BASIC FUNCTIONS THAT INSURANCE PRODUCTS NEED TO FULFILL

The functions of insurance can be bifurcated into two parts:

1. Primary functions

2. Secondary functions

3. Other functions

 The primary functions of insurance include the following:

PROVIDE PROTECTION: The primary function of insurance is to provide

protection against future risk, accidents and uncertainty. Insurance cannot
check the happening of the risk but can certainly provide for losses of risk.
Insurance is actually a protection against economic loss, by sharing the risk
with others.

COLLECTIVE BEARING OF RISK: Insurance is a device to share the

financial loss of few among many others. Insurance is a means by which few
losses are shared among larger number of people. All the insured contribute
the premiums towards a fund and out of which the person exposed to a
particular risk is paid.

ASSESSMENT OF RISK: Insurance determines the probable volume of risk

by evaluating various factors that give rise to risk. Risk is the basis for
determining the premium rate also.

PROVIDE CERTAINTY: Insurance is a device, which helps to change from

uncertainty to certainty. Insurance is a device whereby uncertain risks may
be made more certain.

 The secondary functions of insurance include the following:

PREVENTION OF LOSSES: Insurance cautions individuals and businessmen

to adopt suitable device to prevent unfortunate consequences of risk by
observing safety instructions; installation of automatic sparkler or alarm
systems, etc. prevention of losses causes lesser payment to the assured by
the insurer and this will encourage more savings by way of premium.
Reduced rate of premiums stimulate more business and better protection of
the insured.

8 | Page
SMALL CAPITAL TO COVER LARGER RISKS: Insurance relieves the
businessmen from security investments, by paying small amount of premium
against larger risks and uncertainty.

CONTRIBUTES TOWARDS THE DEVELOPMENT OF LARGER

INDUSTRIES: Insurance provides development opportunities to those larger
industries having more risk in

their setting up. Even the financial institutions may be prepared to give
credit to sick industrial units which have insured their assets including plant
and machinery.

The other functions of insurance include the following:

MEANS OF SAVINGS & INVESTMENT: Insurance is a compulsory way of

savings, and it restricts the unnecessary expenses by the insured’s for the
purpose of availing income-tax exemptions.

SOURCE OF EARNING FOREIGN EXCHANGE: Insurance is an international

business. The country can earn foreign exchange by way of issue of marine
insurance policies and various other ways.

RISK FREE TRADE: Insurance promotes export insurance, which makes the
foreign trade risk free with the help of different types of policies under
marine insurance cover.

TYPES OF INSURANCES

 Motor insurance: It is also known as auto insurance and is the most

common form of insurance and may cover both legal liability claims
against the driver and loss of damage to the vehicle itself.
 Property insurance: It provides protection against risk to property,
such as fire, theft or weather damage. This includes specialized forms
of insurance such as fire insurance, flood insurance, earthquake
insurance, home insurance and boiler insurance.
 Health insurance: It covers medical bills incurred because of sickness
or accidents.
 Life insurance: It provides benefit to a descendant’s family or other
designated beneficiaries, usually to make for their loss of income.
 Accidents insurance: It provides benefits to policy holder in case of
an accident.
 Theft insurance: It provides benefits in the event of theft.

9 | Page
TYPES OF COMPANIES PROVIDING THE INSUARNCE

Insurance companies may be classified as:

a) Life insurance companies: Sell life insurance, annuities and pension

products.

b) Non-life / general insurance companies: Sell other types of insurance.

Mostly, life and non-life insurers are subject to different regulations, tax and
accounting rules. The main reason for distinction between the two types of
company is that life business is very long term in nature. By contrast, non-life
insurance cover usually covers shorter periods, such as one year. Companies
may sell both life and non-life insurance; in which case they are known as
composite insurance companies.

INDUSTRY SCENARIO

The insurance industry of India consists of 52 insurance companies of which

24 are in life insurance business and 28 are non-life insurers. Among the life
insurers, Life Insurance Corporation (LIC) is the sole public sector company.
Apart from that, among the non-life insurers there are six public sector
insurers. In addition to these, there is sole national re-insurer, namely,
General Insurance Corporation of India. Other stakeholders in Indian
Insurance market include agents (individual and corporate), brokers,
surveyors and third party administrators servicing health insurance claims.

Out of 28 non-life insurance companies, five private sector insurers are

registered to underwrite policies exclusively in health, personal accident and
travel insurance segments. They are Star Health and Allied Insurance
Company Ltd, Apollo Munich Health Insurance Company Ltd, Max Bupa
Health Insurance Company Ltd, Religare Health Insurance Company Ltd and
Cigna TTK Health Insurance Company Ltd.

There are two more specialized insurers belonging to public sector, namely,
Export Credit Guarantee Corporation of India for Credit Insurance and
Agriculture Insurance Company Ltd for crop insurance.

Market Size

10 | P a g e
India's life insurance sector is the biggest in the world with about 36 crore
policies which are expected to increase at a compound annual growth rate
(CAGR) of 12-15 per cent over the next five years. The insurance industry
plans to hike penetration levels to eight per cent by 2024 and could top the
US$ 1 trillion mark in the next seven years.

The total market size of India's insurance sector is projected to touch US$
350-400 billion by 2020 from US$ 66.4 billion in FY13. The general insurance
business in India is currently at Rs 77,000 crore (US$ 12.41 billion) premium
per annum industry and is growing at a healthy rate of 17 per cent.

The Rs 12,606 crore (US$ 2.03 billion) domestic health insurance business
accounts for about a quarter of the total non-life insurance business in the
country.

OBJECTIVE OF THE PROJECT:

 To understand the consumer buying behavior of people towards

insurance

policies.

 To understand the behavior of different age groups towards insurance

Policies particularly in the age group of 35-40 years.

 To understand the relationship between income levels and the purpose

behind buying insurance policies.

 To understand the market share of different insurance policy

companies.

11 | P a g e
 QUESTIONNAIRE

BUYING BEHAVIOUR OF CONSUMERS IN THE INSURANCE SECTOR

1) Do you have a policy for any of the following?

☐LIFE INSURANCE ☐ ACCIDENTAL INSURANCE

☐HEALTH INSURANCE ☐THEFT INSURANCE

☐MOTOR INSURANCE

If none, then why not?

2) At what age did you buy the following policies?

a) Life Insurance:

☐16-20 ☐21-30

☐31-40 ☐41-50

12 | P a g e
☐51-55 ☐55+ yrs.

b) Accidental insurance:

☐16-20 ☐21-30

☐31-40 ☐41-50

☒51-55 ☐55+ yrs.

c) Health insurance:

☐16-20 ☐21-30

☐31-40 ☐41-50

☐51-55 ☐55+ yrs.

d) Theft insurance:

☐16-20 ☐21-30

☐31-40 ☐41-50

☐51-55 ☐55+ yrs.

e) Motor insurance:

☐16-20 ☐21-30

☐31-40 ☐41-50

☐51-55 ☐55+ yrs.

3) Which companies’ policy do you prefer?

(A) HEALTH INSURANCE:

☐ HDFC STANDARD ☐ IFCO TOKTO ☐ NEW INDIA ☐ ORIENTAL

INSURANCE

☐ MET LIFE ☐ RELIANCE GENERAL ☐ ROYAL SUNDARAM ☐ Axis MAX

LIFE

☐ ANY OTHERS

(B) LIFE INSURANCE:

13 | P a g e
☐ TATA AIG ☐ ICICI PRUDENTIAL ☐ MET LIFE ☐ KOTAK MAHINDRA ☐
BAJAJ ALLIANZ

☐ BIRLA SUN LIFE ☐ HDFC ☐ LIC ☐ AXIS MAX LIFE ☐ ANY OTHERS

(C) MOTOR INSURANCE:

☐ BAJAJ ALLIANZ ☐ NEW INDIA ☐ ORIENTAL ALLIANCE ☐ NATIONAL

INSURANCE CO. ☐ UNITED INDIA ☐ ANY OTHERS

4) FROM WHERE DID YOU COME TO KNOW ABOUT THE POLICY

☐ MEDIA ☐ COMPANY ☐ FRIENDS ☐ FAMILY ☐ INSURANCE AGENT

☐ FINANCIAL INSTITUTIONS ☐ OTHERS

5) REASONS FOR TAKING POLICY

☐ TAX BENEFITS ☐ INVESTMENT ☐ TO OBLIGE A FRIEND ☐ OFFERED BY

COMPANY

☐ OFFERED BY FINANCIAL ☐ TO PROTECT AGAINST

INSTITUTION FUTURE DAMAGES ☐ OTHERS

6) WHICH FACTORS INFLUENCE YOU TO BUY POLICY FROM A PARTICULAR

COMPANY?

☐ PREMIUM ☐ BRAND NAME ☐ SERVICE ☐ PRODUCT VARIETY ☐

DISTRIBUTION

7) ARE YOU SATISFIED WITH YOUR INSURANCE SCHEME?

☐ YES ☐ NO

8) WOULD YOU TRUST A GOVERNMENT OR PRIVATE INSURANCE?

☐ GOVERNMENT ☐ PRIVATE

9) PERSONAL INFORMATION.

☐ MALE ☐ FEMALE

14 | P a g e
 Findings & Analysis:
Percentage of Respondents having policy.

LIFE INSURANCE:

Motor Insurance:

15 | P a g e
Life insurance and motor insurance are the most popular insurances among
the
respondents. In case of life insurance, the first thing that comes to customers
mind is LIC(LIFE INSURANCE CORPORATION OF INDIA) . Thus, LIC is
almost synonymous with life insurance.

Also, motor insurance is famous because a vehicle owner does not need to
make extra efforts to get insurance as it is provided when a person buys a
vehicle.

Health Insurance:

Although 52% of the respondents have health insurance policies, majority of

them
have got it through the companies where they are employed. Very few
respondents have bought it directly through insurance companies. Thus,
health insurers need to make efforts to make health insurance products
more popular among the consumers at an individual level.

16 | P a g e
 Accidental Insurance:

THEFT INSURANCE:

Accident and Theft insurances are not very popular among consumers. Some
consumers do not even know about the existence or availability of such
products in the market.

AGE AT WHICH POLICIES WERE BOUGHT

Life Insurance

17 | P a g e
Majority of insurance holders fall in the age group of 40-50 years followed by
the age group of 30-40 years. Probably as consumers approach old age, their
tendency to buy life insurance increases, so that they can ensure a secured
life for their dependents in the event of their death. However, the age group
of 20-30 is the one where consumers have less responsibilities and high
disposable income.

In this segment there is scope for growth. Hence, insurance can tap this
segment
for life products.

Whereas in the case of health insurance, 35% of health insurance holders fall
in the age bracket of 41-50 years. This is the age group where people are
prone to health issues. This is one of the reasons for such statistics as
described in the graph.

Health Insurance

18 | P a g e
 Motor Insurance

Majority of the motor insurance holders fall within the age bracket of 21-30
years.
Maximum motor owners today fall in this age bracket and the majority of
motor companies have tie-ups with insurance companies, thus supporting
the increase of policy holders within this age bracket. Also there is a
considerable number of insurance holders in the 31-50 yrs bracket.

19 | P a g e
 COMPANY WISE MARKET SHARE:

LIC is the market leader with the maximum customer base. Reasons
are as follows:

 Reputation and credibility.

 Strong distribution network.
 Integrated training and development.
 Financial stability.
 Sophisticated technology and systems
 Risk management skills.
 Fund management skills.
 Strategic selection of segments.

20 | P a g e
 Health Insurance:

Majority of people are not aware of the health insurance. When they say
health insurance, they relate it to life insurance. Therefore, not much
importance is given to health insurance in India. New India Assurance and
Oriental insurance are the major players in the health sector.

However, in case of both health and motor insurance, there is no clear-cut

market leader. In order to gain a strong hold in this market, companies need
to differentiate themselves from other players.

21 | P a g e
Majority of the respondents took policies due to tax benefits followed by
consumers who need a secure future. Though insurance is also being
considered as an investment option these days, very few people take
insurance policies for investment purposes as per the research.

Majority of the people select an insurance provider based on good customer

service. Hence, private players have an edge over government players in
this regard. Also, customers require products that are tailor made for them
and hence variety/customization is another important factor for the
purchase. Along with his, brand name is also taken into consideration as
financial products are usually associated with trust and every customer
looks at the credibility of the company before putting his/her money.

22 | P a g e
 HYPOTHESIS

IMPACT OF INCOME LEVEL ON PURPOSE OF POLICY PURCHASE

H0= The purpose to purchase an insurance policy is not affected by the

income level.
H1= The purpose to purchase an insurance policy is affected by the income
level.

Chi- Square tests:

The hypothesis is accepted that the buying of the insurance policy is not
affected by the income level. Here the significant difference is more than 5
per cent and we can say that monthly income level and the purpose of
purchase of insurance policy is independent i.e. monthly income does not
matter for purpose of the purchase. It means that the person having
different monthly income level can opt for public sector i.e. LIC or private
sector.

23 | P a g e
LIMITATIONS OF THE SAMPLING:

 One of the major limitations of this study is the sample size selected. A
sample size of 75 people may not reveal all the facets of consumer
buying behavior.

 Again, this survey was conducted in Chennai (Specifically in

Sholinganallur & Semmancheri) and has a geographical limitation and
may not be representative of India as a whole.

 The Area was chosen because it had a sizeable population from the
unorganized sector & who are into the blue collar segment as well.

 The research conducted may have missed out on certain points which
could have affected the final findings and conclusions.

24 | P a g e
MARKETING STRATEGY TO TARGET CUSTOMERS FOR LIC/ INSURANCE
COMPANIES:

Understanding the Target Audience (24-35 Year Olds in Tier-1 Cities):

 Tech-Savvy: Comfortable with digital platforms, online research, and

mobile apps.

 Career-Focused: Building their careers, likely with increasing

disposable income, but also financial responsibilities and potential debt
(e.g., student loans, mortgages).

 Family-Oriented: Many are starting families or planning to, making

long-term security important.

 Health-Conscious: Increasing awareness of physical and mental

well-being.

 Experience-Seekers: Value experiences and convenience.

 Financially Literate (to some extent): Understanding of basic

financial products but may lack in-depth knowledge.

Marketing Strategy Pillars:

1. Digital-First Approach:

 Targeted Online Advertising: Utilize social media (Facebook,

Instagram, LinkedIn), search engine marketing (Google Ads), and
programmatic advertising to reach the specific demographic with
tailored messages.
 Search Engine Optimization (SEO): Optimize the company website
and content for relevant keywords to rank higher in search results
when potential customers search for insurance plans.
 Social Media Marketing: Create engaging content (videos,
infographics, blog posts) on social media platforms to educate the
target audience about insurance benefits and build brand awareness.
Run contests and interactive campaigns.
 Influencer Marketing: Partner with relevant influencers (finance,
lifestyle, health) to promote insurance products to their followers.

25 | P a g e
  Content Marketing: Develop informative and engaging content
(blog posts, articles, eBooks, webinars) on topics related to financial
planning, health, and family security.
 Email Marketing: Build an email list through website opt-ins and
lead magnets and nurture leads with personalized email campaigns.

2. Product Innovation and Personalization:

 Simplified and Customizable Products: Offer insurance plans

with easy-to-understand features and flexible options to cater to the
diverse needs of the target audience.
 Digital-Friendly Policies: Provide online policy purchase and
management options for convenience.
 Value-Added Services: Offer additional benefits like health check-
ups, wellness programs, or financial planning tools to differentiate
from competitors

3. Building Trust and Credibility:

 Leverage Brand Reputation: Emphasize the company's

history, stability, and customer testimonials to build trust.
 Transparency and Education: Provide clear and concise
information about policy terms and conditions.
 Customer Reviews and Ratings: Encourage satisfied
customers to leave positive reviews on online platforms.
 Partnerships: Collaborate with trusted financial advisors or
institutions to reach a wider audience.

4. Omnichannel Presence:

 Mobile Optimization: Ensure all digital platforms are mobile-friendly

for seamless access.

 Strategic Offline Initiatives: Consider sponsoring relevant events,

workshops, or seminars to engage with the target audience offline.

 Tie Online and Offline Efforts: Use QR codes or unique landing

pages in offline materials to drive traffic to online platforms.

5. Referral Programs:

 Incentivize Existing Customers: Encourage existing customers to refer

friends and family by offering rewards or discounts.

Key Messaging:

26 | P a g e
  Focus on Value and Benefits: Clearly communicate the value
proposition of insurance plans and how they address the specific needs
and concerns of the target audience.

 Highlight Affordability: Emphasize cost-effective plans and flexible

payment options.
 Emphasize Long-Term Security: Focus on the peace of mind and
financial security that insurance provides for the future.
 Use Emotional Connect: Create marketing campaigns that resonate
with the emotions and aspirations of the target audience (e.g.,
protecting family, achieving financial goals).

Measurement and Analysis:

 Key Performance Indicators (KPIs): Track website traffic, lead

generation, conversion rates, customer acquisition cost, and customer
lifetime value.
 Analytics Tools: Use Google Analytics, social media analytics, and
CRM data to measure the effectiveness of marketing campaigns and
make data-driven decisions.

Remember to:

 Comply with regulations: Ensure all marketing activities adhere to

advertising guidelines and industry regulations.
 Continuously adapt: Monitor market trends and customer feedback to
refine the marketing strategy and stay ahead of the competition.
By implementing this comprehensive marketing strategy, the
insurance company can effectively reach and acquire customers in the
desired demographic segment.

Understanding the Marketing concepts & Implementation of the

same:

Let's delve deeper into some specific aspects of the marketing strategy,
incorporating potential data points and illustrative examples. As our sample
size is small we will provide hypothetical examples to demonstrate the
concepts.

1. Digital-First Approach - Targeted Online Advertising:

Scenario: LIC wants to target newly married couples (28-35 years old) in
Chennai, Tier-1 city, with a term life insurance plan.

27 | P a g e
Data Points (Hypothetical):

 Target Audience Size (Chennai): 500,000 (estimated couples in the age

group)
* Click-Through Rate (CTR) on Facebook Ads: 0.8% (industry average or
based on past campaigns)
 Conversion Rate (Leads to Policy Purchase): 5% (industry average or
based on past campaigns)
 Cost per Click (CPC) on Facebook Ads: ₹50 (example)

Calculations:

 Clicks Needed: To reach a significant portion, let's aim for 10,000

clicks (2% of the target audience).
 Ad Spend: 10,000 clicks * ₹50/click = ₹500,000
 Estimated Conversions: 10,000 clicks * 5% conversion rate = 500
policies

2. Content Marketing & SEO:

Scenario: LIC wants to attract young professionals (24-30 years old)

interested in health insurance.

Content Strategy: Create blog posts, infographics, and short videos on topics
like "Top 5 Health Insurance Plans for Young Adults," "Understanding Health
Insurance Jargon," and "Benefits of Early Health Insurance Coverage."

Data Points (Hypothetical):

 Keyword: "best health insurance Chennai"

 Monthly Search Volume: 5,000 (using keyword research tools)
 Website Ranking (Before SEO): Page 3 of Google search results
 Website Ranking (After SEO): Page 1 of Google search results
 Organic Traffic Increase: 50% (due to higher ranking)

3. Product Innovation & Personalization:

Scenario: LIC launches a new term insurance plan with a "Return of

Premium" option and wants to target young families.

Personalization: Offer online calculators to estimate premium amounts based

on age, income, and coverage needs. Provide personalized policy
recommendations based on user profiles.

Data Points (Hypothetical):

28 | P a g e
  Conversion Rate (with Personalized Recommendations): 8%
 Conversion Rate (without Personalized Recommendations): 3%

4. Influencer Marketing:

Scenario: LIC partners with a popular fitness influencer to promote a health

insurance plan with wellness benefits.

Data Points (Hypothetical):

 Influencer's Reach: 1 million followers

 Engagement Rate (Likes, Comments, Shares): 2%
 Click-Through Rate (from Influencer's Post): 0.5%
 Website Conversions from Influencer Traffic: 4%

Calculations:

 Reach: 1 million
 Engagement: 1 million * 2% = 20,000
 Clicks: 1 million * 0.5% = 5,000
 Conversions: 5,000 * 4% = 200 policies

Since our target is specific to focus on customers of Tier-1 cities like Chennai
and especially in the age group of 25-35 years , A generalized strategy needs
to be tailored for effective local execution.

29 | P a g e
STRATEGIES & MARKETING PLANS FOR TARGETTING CONSUMERS IN
CHENNAI:

Here's how to strategize and align marketing plans for Chennai (or any Tier-1
city):

1. Hyperlocal Segmentation:

 Demographics: Chennai has a diverse population. Go beyond

broad age groups (24-35) and segment further based on
 Occupation: IT professionals, government employees, business
owners, etc. Each group has unique needs.
 Location within Chennai: Different areas have varying income
levels, lifestyles, and insurance preferences. Target specific
neighborhoods or localities.
 Family Status: Newly married, families with young children, single
parents – each requires tailored messaging.

2. Localized Marketing Mix:

 Language: While English proficiency is high in Chennai, using Tamil

in some campaigns can significantly increase reach and
engagement. Consider bilingual ads, social media posts, and even
website content.
 Cultural Nuances: Incorporate local festivals, traditions, and
cultural references in your marketing messages to resonate with the
Chennai audience.
 Media Channels:
* Digital: Chennai has high internet and mobile penetration. Focus
on targeted
ads on Facebook, Instagram, YouTube, and local news websites. Use
location-based targeting to reach specific areas.
* Print: Local newspapers and magazines still have readership,
especially among older demographics.
* Radio: Radio advertising can be effective for reaching a broad
audience, especially while commuting.
* Out-of-Home (OOH): Billboards, hoardings, and transit
advertising in strategic locations across Chennai can create high
visibility.
* Local Events & Partnerships: Sponsor or participate in local
events, festivals, or community initiatives. Partner with local
businesses or organizations that cater to your target audience.

3. Tailored Messaging:

30 | P a g e
  Address Local Needs: Highlight insurance plans that are relevant
to the specific needs of Chennai residents. For example, if traffic
congestion is a concern, emphasize accident insurance or health
insurance with cashless hospitalization at network hospitals in the
city.
 Use Local Influencers: Partner with popular Chennai-based
influencers on social media or local celebrities to endorse your
products.
 Success Stories: Showcase testimonials from satisfied customers
in Chennai to build trust and credibility.

4. Distribution Channels:

 Online: Ensure your website and mobile app are optimized for Chennai
users. Provide information in Tamil and offer online policy purchase and
support.
 Offline: Establish a strong presence in Chennai through branch offices,
agent networks, or partnerships with local banks or financial
institutions. Make it easy for customers to interact with your company
in person.

5. Customer Service:

 Multilingual Support: Offer customer support in Tamil and English to

cater to the local population.
 Local Representatives: Have customer service representatives who
understand the local context and can address the specific needs of
Chennai customers.

6. Data-Driven Optimization:

 Track Local Campaign Performance: Monitor the performance of your

marketing campaigns in Chennai closely. Analyze website traffic, lead
generation, and conversions from different channels.
 Feedback Collection: Gather feedback from customers in Chennai to
understand their preferences and improve your products and services.
Example: Targeting Young IT Professionals in Chennai:
 Segmentation: IT professionals in specific areas like OMR or Siruseri,
with a focus on those who are married or planning to start a family.
 Messaging: Emphasize term insurance plans with affordable premiums
and comprehensive coverage, highlighting the importance of financial
security for their families. Promote health insurance plans with
cashless hospitalization at leading hospitals in Chennai.
 Channels: Targeted ads on LinkedIn and Facebook groups frequented
by IT professionals. Partnerships with IT companies to offer employee

31 | P a g e
 insurance benefits. Content marketing focused on financial planning for
young families.
 Language: Use a mix of English and Tamil in ads and content.

By implementing these strategies and aligning your marketing plans with the
specific characteristics of Chennai, you can effectively reach and acquire
customers in this important Tier-1 city. Remember, continuous monitoring,
analysis, and adaptation are key to success.
Competition Landscape & Strategies to Handle the
competition:
Competition in top-tier cities like Chennai is fierce in the insurance sector.
Here's a breakdown of the competitive landscape and strategies to counter
it:

Competitive Landscape in Chennai:

Major Players:

Chennai is a hub for established insurance giants (both public and private)
like LIC, HDFC Life, ICICI Prudential, Bajaj Allianz, and more. They have strong
brand recognition, vast distribution networks, and diverse product portfolios.
Major factors for

 Aggressive Marketing: These companies invest heavily in advertising

across all media (TV, print, digital, OOH) and sponsor major events to
maintain high visibility.
 Price Wars: Competition often leads to price wars, with insurers offering
discounts and lower premiums to attract customers.
 Product Differentiation: Insurers constantly innovate and launch new
products with unique features to gain a competitive edge.
 Digital Focus: All major players are investing heavily in digital platforms
to enhance customer experience and reach younger audiences.

Countering the Competition:

1. Niche Targeting and Specialization:

 Focus on Underserved Segments: Instead of trying to compete head-on

with established players in every segment, identify niche markets with
specific needs that are not being fully addressed. Examples:
 Senior Citizens: Tailored health and retirement plans
 Women: Insurance products designed for women's health and
financial security

32 | P a g e
  Startups and SMEs: Business insurance and employee benefits
packages.

 Develop Specialized Products: Create insurance plans with unique

features and benefits that cater to the specific needs of your target
niche.

2. Value-Based Differentiation:

 Go Beyond Price: Don't solely compete on price. Focus on providing

superior value through:
 Enhanced Customer Service: Offer personalized advice, quick
claim settlements, and hassle-free policy management.
 Value-Added Services: Provide additional benefits like health
check-ups, wellness programs, financial planning tools, or
loyalty rewards.
 Stronger Brand Image: Build a brand that is associated with
trust, reliability, and customer-centricity.

3. Digital Excellence:

 Superior Online Experience: Invest in a user-friendly website and

mobile app that provides seamless policy purchase, management,
and claim filing.
 Data-Driven Personalization: Use data analytics to understand
customer preferences and offer personalized recommendations and
customized products.
 Content Marketing Leadership: Create high-quality content that
educates and engages your target audience. Establish thought
leadership in specific insurance domains.

4. Strategic Partnerships:

 Collaborate with Complementary Businesses: Partner with

hospitals, clinics, fitness centers, financial advisors, or online
platforms to reach a wider audience and offer bundled services.
 Co-Branding Opportunities: Partner with well-known brands to
enhance your credibility and reach new customer segments.

5. Hyperlocal Focus and Community Engagement:

 Deep Local Presence: Establish a strong presence in Chennai

through local offices, agent networks, and community involvement.
 Targeted Outreach: Conduct local events, workshops, and seminars
to engage with potential customers and build relationships.

33 | P a g e
  Local Influencer Marketing: Partner with Chennai-based influencers
to promote your products and services to their followers.

6. Agility and Innovation:

 Adapt Quickly: Stay agile and adapt to changing market trends

and customer preferences. Continuously innovate and improve
your products and services.
 Embrace Technology: Utilize technology to streamline processes,
enhance customer experience, and offer innovative insurance
solutions (e.g., usage-based insurance).Example: Countering
Competition in Health Insurance for Young Adults:
 Instead of: Competing solely on price with established
players.
 Focus on: Offering a health insurance plan with unique
features like:
* Mental health coverage: Addressing the growing concern
of mental well-being among young adults.
* Telemedicine consultations: Providing convenient access
to doctors online.
* Fitness and wellness benefits: Partnering with gyms or
fitness studios to offer discounts or rewards.
* Personalized health tracking: Integrating with wearable
devices or health apps to provide personalized health
insights and recommendations.

By Implementing these strategies, you can effectively counter the intense

competition in Chennai’s insurance market and carve out a successful
position / Share in the market especially in the age group of 25-35 Years.

34 | P a g e
 Conclusion & Submission:

A targeted marketing strategy to acquire customers in the 24-35 age group

in Chennai for an insurance company like LIC is a task by itself but definitely
not impossible considering the brand name & goodwill the brand LIC carries
in the market.

However, with the advancement of technology & social media in today’s

world, the young populations can be reached & influenced by the digital
channels. The traditional mediums like Print, Door to door campaigns ,
Marketing stalls are not yielding the desired results.

A decade ago, the financial status/ salary levels were the major factors
determining a customer intending to purchase a Life insurance policy. Now
the scenario is different. Disposable income is on the higher side, but the
awareness levels are too low & impact a Life insurance policy or a Health
insurance policy makes to one’s life is not known. So, focus to be given more
on creating the awareness and the importance of Life insurance. All our
marketing strategy & marketing spend should be aligned towards the same
for getting better results/ conversions.

Keeping in mind the above point along with the competitive landscape and
the specific characteristics of the demographic in a Tier-1 city all we need to
do is to

 Understanding the demographics (city) & the targeted audience. In our

case we considered Chennai, and the age was between 24-35 Year Old.
We understood that

 Tech-Savvy & Mobile-First - Chennai has high internet and smartphone

penetration. Digital channels are crucial.

35 | P a g e
  Career-Focused - This age group is building careers, often in IT,
finance, or other professional sectors. They value financial security but
are also budget conscious.

 Family-Oriented - Many are starting families or planning to. Insurance

for family protection and children's future is important.

 Health-Conscious - Increasing awareness of health and wellness.

Health insurance and related benefits are attractive.

 Local Language Preference: While English is widely spoken, using Tamil

in some communications can enhance engagement.

 Diverse Interests - Their interests vary widely. Targeting should be

based on specific segments within this age group.

As per the study and feedback from the industry experts below are the
Marketing Strategy Pillars for Chennai:

 Digital Dominance

 Targeted Online Advertising:

* Facebook/Instagram: Run ads targeting specific demographics, interests

(e.g., finance, parenting, fitness), and locations within Chennai. Use
engaging visuals and videos.
* LinkedIn: Target professionals in specific industries with career-relevant
messaging.
* Google Ads (Search & Display): Capture users searching for insurance or
related terms. Use location targeting to focus on Chennai.
* Programmatic Advertising: Use data-driven insights to reach the right
audience across the web.
* Search Engine Optimization (SEO): Optimize your website and content
for relevant keywords in both English and Tamil (e.g., "term insurance
Chennai," "best health insurance for young families").
* Blog Posts/Articles: Create informative content on topics like financial
planning, retirement planning, children's education, and health insurance
benefits. Use real-life examples and case studies relevant to Chennai.
* Infographics/Videos: Present complex insurance concepts in a visually
appealing and easy-to-understand format. Use Tamil subtitles where
appropriate.
* Webinars/Online Workshops: Host sessions on financial literacy and
insurance planning, featuring local experts.

 Social Media Engagement:

36 | P a g e
* Run Contests/Giveaways: Engage users and increase brand visibility.
* Create Interactive Polls/Quizzes: Educate users about insurance needs in a
fun way.
* Partner with Chennai-Based Influencers: Collaborate with relevant
influencers on Instagram, YouTube, or other platforms to reach their
followers.
* Hyperlocal Approach:
* Community Engagement:
* Sponsor Local Events/Festivals: Participate in events popular among the
target audience in Chennai.
* Partner with Local Businesses: Collaborate with gyms, hospitals, schools, or
community centers to reach potential customers.
* Language & Cultural Sensitivity:
* Use Tamil in Marketing Materials: Create ads, brochures, and website
content in Tamil to connect with the local audience.
* Incorporate Local Cultural References: Resonate with Chennai's culture and
traditions in your marketing messages.

 Product & Service Differentiation:

* Tailored Products: Offer insurance plans that cater to the specific needs
of young adults and families in Chennai (e.g., affordable term plans,
comprehensive health insurance with maternity benefits, child education
plans).
* Digital-First Experience: Provide a seamless online experience for policy
purchase, renewal, and claim filing. Offer a mobile app for easy access.
* Value-Added Services: Offer benefits like telemedicine consultations,
health check-ups, or financial planning tools to differentiate your
offerings.
* Building Trust & Credibility:
* Leverage LIC's Brand Heritage: Emphasize LIC's long history and
reputation for trust and reliability.
* Customer Testimonials: Showcase positive feedback from satisfied
customers in Chennai.

 Strategic Partnerships:

* Tie-ups with Hospitals/Clinics: Offer cashless hospitalization benefits at

leading hospitals in Chennai.
* Collaborations with Financial Institutions: Partner with banks or
investment firms to reach their customer base.
* Employee Benefit Programs: Offer customized insurance solutions to
companies in Chennai for their employees.

37 | P a g e
Any marketing strategy will be successful only if the same is measurable & if
we are able to see results. Hence, Measurement & Optimization becomes
very important.

Measurement & Optimization:

* Key Performance Indicators (KPIs): Track website traffic, lead

generation, conversion rates, customer acquisition cost, and customer
lifetime value.
* Analytics Tools: Use Google Analytics, social media analytics, and CRM
data to measure campaign effectiveness.
* A/B Testing: Experiment with different ad creatives, messaging, and
channels to optimize your campaigns. Example: Targeting Young Families in
Chennai:
* Messaging: "Secure your family's future with LIC's affordable term
insurance plans." "Plan for your child's education with our dedicated savings
plans."
* Channels: Facebook/Instagram ads targeting parents in Chennai.
Partnerships with schools or children's hospitals. Content marketing on
parenting blogs and websites.

By implementing this comprehensive and locally tailored strategy, LIC can

effectively reach and acquire customers in the 24-35 age group in
Chennai. We need to keep in mind that continuous monitoring, analysis,
and adaptation are crucial for success in this competitive market.

38 | P a g e