A REPORT ON

STUDY OF URBAN AND SEMI URBAN POPULATION TO IMPROVE THE CONSUMER COMMUNICATION STRATEGY BY

IDBI FEDERAL

RAJENDRA SINGH RAJPUROHIT 11BSPHH011075

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AUTHORIZATION

SUMMER INTERNSHIP PROJECT 2012

This project has been prepared under the guidance of Mrs. Shanthi Yagyanath, Additional Branch Head, IDBI federal Life Insurance co. ltd and Prof. CV Ramana, faculty Guide (IBS, Hyderabad)

A report submitted in partial fulfillment of the requirements of MBA program of IBS, Hyderabad
SUBMITTED TO

Prof C V Ramana FACULTY GUIDE

Mrs Shanthi Yagyanath

COMPANY GUIDE

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ACKNOWLEDGEMENT

The gratification and joy that accompanies the successful completion of any task would be incomplete without the humble deep felt expression of gratitude to the people who made it possible, because success is bridge between hard work and efforts and above all encouraging guidance and support. I would like to extend my heartiest thanks to Mrs Shanthi Yagyanath (Additional Branch Head), who gave an opportunity to work under her in IDBI Federal I would like to convey my sincere thanks to Prof CV Ramana, my internal project guide, for motivating and guiding me. I would like to convey my sincere thanks to Mr Vinay, who spent his valuable time in providing instant information, without which completion of the project would have been difficult. I am also thankful to all my fellow SIP trainees at IDBI Federal (Hyderabad), who helped me one way or other in successfully completing the project.

Place: Hyderabad

Rajendra Singh Rajpurohit

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EXECUTIVE SUMMARY
STUDY OF URBAN AND SEMI URBAN POPULATION TO IMPROVE THE CONSUMER COMMUNICATION STRATEGY BY IDBI FEDERAL. This project was undertaken with an aim to understand consumer behavior as to improve the market standing in the insurance industry. The semi-urban and urban consumer segments were chosen for the study and research was also conducted on the rural market. This search behavior has been analyzed to study its effect on marketing strategy. The Indian consumer cannot be summed collectively thus was divided into three categories. The new Indian consumer will be positively judgmental while buying a product as his previous avatar. Due to a rise in income, increased awareness about products and multiplicity of choices, he will become vigilant and choosey with his purchases. IDBI FEDERAL LIFE INSURANCE COMPANY LIMITED This project was undertaken while interning with IDBI Federal Life Insurance Company Limited at its Hyderabad Branch. IDBI Federal Life Insurance Company was established in the year 2008. The registered address of the organization is: IDBI Federal Life Insurance Co Ltd First Floor, Trade view, Oasis Complex, Kamala City, P. B. Marg, Lower Parel (West), Mumbai - 400 013, Maharashtra, Tel: 022 - 2490 8109/ Fax: 022 - 2494 1016. Hyderabad office IDBI Federal Life Insurance Co Ltd Municipal No. 3-5-919 to 926, first floor, Main Road Himayat Nagar, Hyderabad 500035, Andhra Pradesh The objectives of the project are as follows: PRIMARY OBJECTIVES a) To study the consumer behavior in urban, semi urban and rural consumer. b) To study the aspects of Consumer Behavior in the insurance industry which affect the marketing strategy of IDBI Federal. SECONDARY OBJECTIVES a) To tap consumer response thus increasing sales. b) To know Customer Insight: Specific customer needs, aspirations, buying behaviors, usage patterns, decision models, preferences, favorability, intentions. c) Advertising Research. METHODOLOGY The research was carried out by preparing questionnaire and taking interview (rural area). The urban consumer were provided questionnaire on internet and were from the city Hyderabad. The semi-urban sample was taken from Jodhpur (Rajasthan) and was asked to fill in the questionnaire. Rural sample was taken from Mathania, a tehesil 30 km apart from Jodhpur. For convenience video interview was taken.
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MAJOR FINDINGS A very interesting fact came into light, Muslims are prohibited to earn through interest, and they view insurance similar to it, thus not purchasing insurance The brand IDBI federal was common for the southern India but semi urban consumer in north knew nothing about the company, but have heard about the IDBI Bank Urban population uses net everyday from 30 minutes to 2 hours CONCLUSIONS The sources of information that the urban consumer is accessible and is perceptive to are different from that of the semi-urban consumer. Advertising online is not an option in semi-urban areas while in urban areas it has scope The urban segments are conversant with either English or Hindi; the Semi-urban and rural segments show strong leanings towards the Hindi or vernacular. There is still a wide gap in awareness about this company as reflected by the sample taken. The semi-urban population seems to be little aware about the company and rural area totally unaware. This is because the advertisements as not shown at frequent interval. RECOMMENDATIONS Advertising on National channel will help to tap rural consumer. As the rural consumers do not have high income, they demand policies of low premium value thus policies of smaller denomination should be present. Internet Advertising is a lucrative option as the urban consumer is vicious visitor of net. The semi-urban sample may be better reached through direct interaction in the form of events and experiences organized in schools and other institutions in the area. ACHIEVEMENTS
During the SIP I was awarded performance based certificates. Quick Starter Certificate after a collected premium for 2 policies Silver Starter Certificate after a collected premium for 5 policies Gold Starter Certificate after a collected premium for 8 policies And I was awarded platinum certificate for insuring 10 lives.

Rajendra Singh Rajpurohit IBS Hyderabad

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Table of content
Particulars
Overview Top players in insurance industry Insurance in India IDBI Federal History of the company Products by IDBI Federal Industry analysis Introduction Purpose and scope Urban consumer Semi-urban consumer Rural consumer Primary objective Methodology Interpretation of urban consumer Interpretation of semi urban consumer Interpretation of rural consumer Findings Conclusions Recommendations Questionnaire Business data References

page number
7 8-10 11 12 13 14-15 16-17 19-20 21-22 25-26 27-28 29 30 31-32 33-43 44-55 56 57 58 59 60-63 64 65

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OVERVIEW
In general, insurance means managing risk. For instance, in life insurance segment, the insurance company tries to manage mortality (death) rates among the wide array of clients. History of Insurance industry In some sense we can say that insurance appeared simultaneously with appearance of human society. In earlier times, we can see insurance in the form of people helping each other. For example, if a house is burnt, the members of the community help build a new one so that the basic need of shelter is fulfilled . Should the same thing happen to ones neighbour, the other neighbours must come to help? Otherwise, neighbours will not receive help in the future. Insurance in the modern sense, started as a methods of transferring or distributing risk were practiced by Chinese and Babylonian traders as long ago as the 3rd and 2nd millennia BC, respectively. Chinese merchants travelling treacherous river rapids would redistribute their cargo across many vessels to limit the loss due to any single vessels capsizing. The Babylonians developed a system which was recorded in the famous Code of Hammurabi, c. 1750 BC, and practiced by early Mediterranean sailing merchants. If a merchant received a loan to fund his shipment, he would pay the lender an additional sum in exchange for the lenders guarantee to cancel the loan should the shipment be stolen. Greek monarchs were the first to insure their people and made it official by registering the insuring process in governmental notary offices. They discovered the concept of the general average. Merchants whose goods were being shipped together would pay a proportionally divided premium which would be used to reimburse any merchant whose goods were jettisoned during storm or sinking of the vessel in the sea. The Greeks and Romans introduced the origins of health and life insurance c.600 AD when they organized guilds called benevolent societies which cared for the families and paid funeral expenses of members upon death. Guilds in the middle Ages served a similar purpose. Before insurance was established in the late 17th century, friendly societies existed in England, in which people donate amounts of money to a general sum that could be used for emergencies Separate insurance contracts (i.e., insurance policies not bundled with loans or other kinds of contracts) were invented in Greeks rulers in the 14th century, as were insurance pools backed by pledges of landed estates. These new insurance contracts allowed insurance to be separated from investment, a separation of roles that first proved useful in marine insurance. Insurance became far more sophisticated in post-Renaissance Europe, and specialized varieties developed. Insurance as we know it today can be traced to the Great Fire of London, which in 1666 A.D devoured 13,200 houses. In the aftermath of this disaster, Nicholas Barbon opened an office to insure buildings. In 1680, he established Englands first fire insurance company, The Fire Office, to insure brick and frame homes. The first insurance company in the United States underwrote fire insurance and was formed in Charles Town (modern-day Charleston), South Carolina, in 1732.
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TOP PLAYERS IN INSURANCE INDUSTRY WORLD WIDE

Following is the list of top ten insurance companies according to their market share.

1. American International Group (AIG) Country: United States Market Value: $172.24 billion American International Group, Inc. (AIG), a world leader in insurance and financial services, is the leading international insurance organization with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. In addition, AIG companies are leading providers of retirement services, financial services and asset management around the world. AIG's common stock is listed on the New York Stock Exchange, as well as the stock exchanges in Paris and Tokyo. 2. AXA Group Country: France Market Value: $66.12 billion In 1980, AXA did not exist. Over the next 20 years, the Group would grow to become a major international player.AXA pursues successfully its external growth strategy: consolidation of AXA existing activities, with the acquisition of Oyak's 50% stake in AXA Oyak, 2nd Turkish insurer, for 525 million dollars, and penetration of high growth potential markets, with the acquisition of 100% of the 3rd Mexican insurer, ING Seguros (for an amount of 1.5 billion dollars). Today AXA is present in geographically diverse markets, with operations concentrated in Europe, North America and Asia Pacific. 3. Allianz Worldwide Country: Germany Market Value: $65.55 billion The Allianz Group is one of the leading integrated financial services providers worldwide. With nearly 155,000 employees worldwide, the Allianz Group serves approximately 75 million customers in about 70 countries. On the insurance side, Allianz is the market leader in the German market and has a strong international presence.

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4. Manulife Financial Country: Canada Market Value: $50.52 billion Manulife Financial is a leading Canadian-based financial services group serving millions of customers in 22 countries and territories world-wide. We provide financial protection and wealth management products and services, to individual and group customers in Canada, the United States and Asia. These products and services include individual life insurance, group life and health insurance, long-term care services, pension products, annuities, mutual funds and banking products. We offer reinsurance services, specializing in life retrocession and property and casualty reinsurance and provide investment management services with respect to the Companys general fund and segregated fund assets and to mutual funds and institutional customers. 5. Generali Group Country: Italy Market Value: $45.45 billion The Generali Group is one of the most significant participants in the global insurance and financial products market. The Group is leader in Italy and Assicurazioni Generali, founded in 1831 in Trieste, is the Group's Parent and principal operating Company. In recent years, the Group has made a significant return to central-eastern European markets and has set up offices in the principal markets of the Far East, among which China and India. 6. Prudential Financial Country: United States Market Value: $39.70 billion Prudential Financial, Inc (NYSE:PRU), a financial services leader with approximately $580 billion of Assets Under Management as of June 30, 2009, has operations in the United States, Asia, Europe and Latin America. Leveraging its heritage of life insurance and asset management expertise, Prudential is focused on helping approximately 50 million individual and institutional customers grow and protect their wealth.

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7. MetLife Country: United States Market Value: $37.94 billion MetLife, Inc. is a leading provider of insurance and other financial services to millions of individual and institutional customers throughout the United States. Outside the U.S., MetLife companies have direct insurance operations in Asia Pacific, Latin America and Europe. 8. Aviva Country: United Kingdom Market value: $33.10 billion Aviva is one of the leading providers of life and pension products in Europe and are actively growing our long-term savings businesses in Asia Pacific and the USA. Their main activities are long-term savings, fund management and general insurance 9. Munich Re Group Country: Germany Market Value: $30.99 billion The Munich Re Group is one of the worlds leading risk carriers. It's business covers the whole value chain in insurance and reinsurance. 10. AEGON Country: Netherlands Market Value: $26.40 billion AEGON is an international business, providing life insurance, pensions and other long-term savings and investment products to millions of customers around the world. The company has major operations in the United States, the Netherlands and the United Kingdom as well as other businesses in Asia, the Americas and elsewhere in Europe. AEGON is listed on the stock exchanges of Amsterdam, London, New York and Tokyo.

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INSURANCE IN INDIA
The history of Life Insurance Companies in India began with the establishment of Oriental Life Insurance Company in the year 1818 in Calcutta. Later on, in the year 1870, Bombay Mutual Life Assurance Society was established. In 1906 National Insurance Company was also established. Life insurance was given a statutory status by Indian Parliament in the year 1912 by passing the Life Insurance Companies Act. After independence, in the year 1956, the Life Insurance Corporation of India was established which paved the way to spread the concept of insurance in India. Life Insurance Corporation has enjoyed a monopoly over life insurance market for over 50 years. In the year 2000, insurance sector was liberalized with private companies entering into life insurance sector. This is the brief history of life insurance companies in India. Life Insurance Corporation of India had a major role to play in Indian insurance sector with a monopoly over life insurance for 50 years. The Government of India had nationalized insurance sector with Life Insurance Corporation as the only life insurance company. During this period many of the small life insurance companies in India and general insurance companies had been nationalized and merged into Life Insurance Corporation of India and General Insurance Corporation of India. General Insurance Corporation of India was divided into four smaller companies namely, Oriental Insurance Company Limited, New India Assurance Company Limited, National Insurance Company Limited and United India Insurance Company Limited. Though Life Insurance Corporation of India had enjoyed monopoly for more than 50 years, not more than 30% of the total population in India possess some or the other kind of insurance. Out of which only 2% of the population subscribe for life insurance policies. It is a small number in comparison to the total population of India which stands at 1 billion. Despite this small number, Indian insurance sector is one of the fastest growing sectors, increasing in its buyers by 15% to 20% every year. At the same time Indian insurance sector has a long way to go. The history of life insurance companies in India took a great turn in the year 2000 as private insurance companies were permitted to enter into life insurance sector. With the advent of private and foreign companies into Indian insurance sector, life insurance agencies have mushroomed all over India in major cities and towns imparting knowledge about life insurance and its benefits and extending various life insurance policies to public. Life insurance agencies have existed even before private companies were here. These life insurance agencies have been instrumental in making Life Insurance Corporation of India earn majority of market share in Indian insurance sector.

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IDBI FEDERAL
IDBI Federal Life Insurance Co Ltd is a joint-venture of IDBI Bank, Indias premier development and commercial bank, Federal Bank, one of Indias leading private sector banks and Ageas, a multinational insurance giant based out of Europe. In this venture, IDBI Bank owns 48% equity while Federal Bank and Ageas own 26% equity each. IDBI BANK: IDBI was formed in 1956. They provided funding for major corporate, SEBI, NSE etc. Later on they merged with IDBI BANK in 1992. This is the only Government owned bank of our country, where the Government of India holds 61% stake in the company. The bank has zero account balance even for non-corporate entities. This bank was formed, to support Indias Industrial Financial sector. FEDERAL BANK: This is also known as Gods own bank, as their major operations are in Kerala. This is Indias first bank to have core banking service. They have a huge NRI base. Nearly 50% revenue of IDBI FEDERAL is from FEDERAL BANK. AGEAS: They have expertise in the know-how about Insurance business. They focused only on LIFE INSURANCE business. IDBI FORTIS: The merger between the three companies, started off as IDBI FORTIS, in association with FEDERAL BANK. FORTIS was initially a bank, who later ventured into insurance and mutual fund business. This had an international presence. Later on, BNP Paribas took over FORTIS and thus, FORTIS became AGEAS. This gave birth to IDBI FEDERAL LIFE INSURANCE CO. LTD. IDBI FEDERAL LIFE INSURANCE CO. LTD.: At IDBI Federal, they endeavour to deliver products that provide value and convenience to the customer. Through a continuous process of innovation in product and service delivery they intend to deliver world-class wealth management, protection and retirement solutions to Indian customers. Having started in 2007-2008, in just five months of inception they became one of the fastest growing new insurance companies to garner Rs 100 Cr in premiums. They chalked up the highest first year sales figures by any Insurance company. The company offers its services through a vast nationwide network across the branches of IDBI Bank and Federal Bank in addition to a sizeable network of advisors and partners. As on January 31st 2011, the company has issued over 3 lakh policies with over Rs15, 230 Cr in Sum Assured. There are many channels through which they sell. These include Agencies, Alliances, Bankers, Brokers, and so on.

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History

2006: IDBI Bank, Federal Bank and Belgian-Dutch insurance major Fortis Insurance International NV signed a MoU to start a life insurance company 2008: IDBI Fortis Life Insurance Co. Ltd., which started its operations in March 2008 2008: IDBI Fortis opens its second branch in Andhra Pradesh in Vijayawada 2008: IDBI Fortis Life positive on assured return products 2008: IDBI Fortis launches the Bondsurance Plan 2009: IDBI Fortis announces Rs 250cr capital infusion 2009: Nimbus ropes in IDBI Fortis as title sponsor of IndiaSri Lanka series 2009: 'IDBI Fortis' Boss-Ka-Boss receives PRCI Award 2009: IDBI Fortis launches Retiresurance Pension Plan 2009: IDBI Fortis scores with Goalsurance 2009: IDBI Fortis reaches the banks of Hoogly 2009: IDBI Fortis launches Incomesurance Immediate Annuity 2009: IDBI Fortis Life Insurance uses an interactive application to help users easily calculate their taxes 2009: IDBI Fortis reaches the City of Eastern Light 2009: IDBI Fortis receives bronze Dragon at 'PMAA 2009' 2009: IDBI Fortis Life Insurance introduces financial inclusion plan in rural Orissa 2009: IDBI Fortis launches Termsurance Protection Plan 2009: IDBI Fortis redefines endowment & money back with Incomesurance 2009: IDBI Fortis to open 65 more branches; raise headcount by 1,000 2010: IDBI Fortis now renamed as IDBI Federal Life Insurance Company

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Schemes Offered by IDBI Federal Life Insurance: 1. Childsurance:

IDBI federals childsurance is for the parents who are looking to make their childs future shock-proof is its powerful insurance benefits. Childsurance allows to you to protect your child plan with triple insurance benefits so that your wealth-building plan remains unaffected by unforeseen events and your child future remains secure. 2. Healthsurance:

IDBI federal Healthsurance Hospitalization and surgical plan offers host of features and benefits that is designed to help the customers to manage extra burden that comes with hospitalization.

3. Lifesurance:

IDBI feral Lifesurance Plan is a saving insurance plan that helps you to safeguard your wealth at the same time will present better opportunity to earning better return. 4. Bondsurance:

Bondsurance is designed for customer looking for guaranteed returns which will not get affected by financial market conditions. It offers guaranteed return on investment along with life insurance cover.

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5. Wealthsurance:

Wealthsurance plan enables the policyholder to save and build wealth to meet their financial goals. Wealthsurance plan comes up with a wide range of 13 investment option and 7 insurance benefits with low charge structure and unmatched flexibility.

6. Homesurance:

Homesurance protection plan provides full insurance cover for properties under construction, thus ensuring that beneficiary gets the full sanctioned amount in case of an unfortunate event. It also has an innovative fixed cover for those who would prepay their loans early.

7. Incomesurance:

Knowing customer helped us to combine the Endowment & Money Back plans into a single plan. It linked the returns to the G-sec rates, transparently declared by the government. Also, the Guaranteed Annual Payout and other benefits upon death are tax- free under Sec 10(10D).

8. Termsurance:

Teramsurance protection plan of IDBI federal offers unique increasing cover option that can automatically increase the cover every year without increasing the premium.

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INDUSTRY ANALYSIS
The pie chart represents the share of various companies at the end of first Quarter of 2012

Competitor analysis (March 2012) If we look at performance statistics of various life insurance companies in India, we can observe some of the top performing life insurance companies in India such as the LIC: LIC has the strongest market base in comparison with all the life insurance companies in India, with a total share of about 64% of market share. It is still the leader in life insurance market extending its services to more than 200 million people in India. SBI Life: State Bank of India holds around 4.4% of the total market share. It has the advantage of its large banking customers.

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Birla Sun Life: Birla Sun Life Insurance today holds the highest market share in private life insurance companies in India. Its market share is 2.5% with various life insurance policies to support. Bajaj Allianz: Bajaj Allianz is the second life insurance company to capture a market share of about 3%. The company provides various life insurance policies such as term life, whole life, ULIPs, Pension plans, children plans, etc. ICICI Prudential Life: ICICI Prudential Life is one of the top private life insurance companies in India with a market share of 5.9% offering various life insurance policies. HDFC Standard Life: HDFC Standard Life is yet another private life insurance company in India. Its current market share is 5.65% of the whole life insurance market in India. Tata AIG Life: Tata AIG Life is also one of the private life insurance companies in India. Its market share is 1.2% of Indian life insurance market. In all 23 companies are there in the life insurance market in India, who are fighting for their share in the vast Indian market where only 20 % of the masses are insured. Seeing the massive population of the country, the company can reap high premium if they are able to reach the masses and through their promotional strategy are able to win their trust. Players in insurance sector in India:
1.Bajaj Allianz Life Insurance Company Limited 2. Birla Sun Life Insurance Co. Ltd 3. HDFC Standard Life Insurance Co. Ltd 4. ICICI Prudential Life Insurance Co. Ltd. 5. ING Vysya Life Insurance Company Ltd. 6. Life Insurance Corporation of India 7. Max New York Life Insurance Co. Ltd 8. Met Life India Insurance Company Ltd. 9. Kotak Mahindra Old Mutual Life Insurance Limited 10. SBI Life Insurance Co. Ltd 11. Tata AIG Life Insurance Company Limited 12. Reliance Life Insurance Company Limited. 13. Aviva Life Insurance Co. India Pvt. Ltd. 14. Sahara India Life Insurance Co, Ltd. 15. Shriram Life Insurance Co, Ltd. 16. Bharti AXA Life Insurance Company Ltd. 17. Future Generali Life Insurance Company Ltd. 18. IDBI Federal Life Insurance Company Ltd. 19. Canara HSBC Oriental Bank of Commerce Life Insurance Co. Ltd 20. AEGON Religare Life Insurance Company Limited. 21. DLF Pramerica Life Insurance Co. Ltd. 22. Star Union Dai-ichi Life Insurance Comp. Ltd. 23.India-First

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There are worse things in life than death. Have you ever spent an evening with an insurance salesman?
Woody Allen (American Actor, Author, Screenwriter and Film Director, b.1935)

Selling insurance is one of the most difficult tasks

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Introduction
With an annual growth rate of 15-20% and the largest number of life insurance policies in force, the potential of the Indian insurance industry is huge. Total value of the Indian insurance market (2004-05) is estimated at Rs. 450 billion (US$10 billion). According to government sources, the insurance and banking services contribution to the country's gross domestic product (GDP) is 7% out of which the gross premium collection forms a significant part. The funds available with the state-owned Life Insurance Corporation (LIC) for investments are 8% of GDP. Till date, only 20% of the total insurable population of India is covered under various life insurance schemes which is very small, the penetration rates of health and other non-life insurances in India is also well below the international level. These facts indicate the of immense growth potential of the insurance sector. The year 1999 saw a revolution in the Indian insurance sector, as major structural changes took place with the ending of government monopoly and the passage of the Insurance Regulatory and Development Authority (IRDA) Bill, lifting all entry restrictions for private players and allowing foreign players to enter the market with some limits on direct foreign ownership. Though, the existing rule says that a foreign partner can hold 26% equity in an insurance company (The reason behind AGEAS having 26 % stake in IDBI Federal), a proposal to increase this limit to 49% is pending with the government. Since opening up of the insurance sector in 1999, foreign investments of Rs. 8.7 billion have poured into the Indian market and 21 private companies have been granted licenses. IDBI Federal Life Insurance Company was established in the year 2008. As this is primarily a service industry, the role of the consumer is of paramount importance. The preference of the consumer dictates the success of this industry. The best way to influence the consumer is by communicating with him or her in a clear and persuasive manner. This brings us to the aspect of Information search; how or from where does the consumer get his information. As we are well aware the most effective and widely used means is word-of-mouth which is a mode of direct communication. A buzz is created and spread in the manner of a grapevine.

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This though is not the only way. Integrated marketing communications (IMC) is a process for managing customer relationships that drive brand value primarily through communication efforts. Such efforts often include cross-functional processes that create and nourish profitable relationships with customers and other stakeholders by strategically controlling or influencing all messages sent to these groups and encouraging data-driven, purposeful dialog with them. IMC includes the coordination and integration of all marketing communication tools, avenues, and sources within a company into a seamless program in order to maximize the impact on end users at a minimal cost. This integration affects all firms business-to-business, marketing channel, customer-focused, and internally directed communications. Integrated Marketing Communications is a simple concept. It ensures that all forms of communications and messages are carefully linked together The consumer will no longer depend upon the television advertisement or the persuasions of an Insurance Agent. He is more careful now and would rather go through things himself. He will read the clauses which come under the purview of terms and conditions apply. He will calculate his own real gain rather than go by fixed tables and figures. He will in fact go to the extent of discussing with friends, relatives and even read up on pros and cons. The more knowledgeable consumer will then think about the suitability of the investment opportunity for him personally and whether he should take the risk of putting his money on it both literally and figuratively. Therefore it is important to distinguish between consumers not just on the basis of demographics like age and income but also in terms of his pattern of information search and communication receptiveness. Therefore for this study 3 samples have been taken namely the Urban, the Semi-Urban consumer and the rural consumer. Establish communication objectives

Develop brand awareness Increase category demand Change customer belief or attitude Enhance purchase actions Encourage repeat purchases Build customer traffic Enhance firm image Increase market share Increase sales Reinforce purchase decisions

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PURPOSE AND SCOPE The purpose of the project is to study the factors that affect and characterize consumer behavior in order to study its impact on the Integrated Marketing Communications of the insurance industry and especially IDBI Federal Life Insurance Co. Ltd. It aims to study consumer behavior and factors that affect the people taking insurance cover to come up with a communication strategy with a wide reach but a specific aim to increase visibility and knowledge of the products offered by IDBI Federal. The project is an approach to study consumer behavior specifically in the Insurance industry. It identifies specific aspects of consumer behavior and also tries to study the triggers of such behavior. This becomes clearer when the consumer segment is divided into urban, semi-urban and rural. The division is done to draw a line where the habits of the consumers differ whether it is taking insurance cover or channelizing savings to other investments. The division has been done because the medium of communication used by both these segments are overlapping but not identical and even sometimes different. In most semi-urban homes an internet connection is still not as common as the mobile phone. Thus such segregation on basis of means of information available and choice of population suiting their needs in the best way possible. They are still more dependent on traditional sources of information like the newspaper. This differentiation will also help while trying to design communication strategies for other segments like the rural segment. When such segmentation is done it will make clear which communication media should be taken into account where. For e.g. advertising only in national television leaves out people who only watch local vernacular television and hence are completely untouched by the advertising campaign similarly airing advertisements in hours having least view ability reaps no good as the aim of the advertisement to reach a target group is not achieved . The project tries to study behavior and attempts to bring in light the key factors to be kept in mind for different consumer groups. This differentiation will greatly impact the Integrated Marketing Communication. It helps us to understand what goes in mind of people of different income groups and regions while taking insurance cover and medium of information easily accessible to them thereby giving a clear picture to how to reach potential consumers. This study will provide an effective channel to be

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followed to reach and impact consumers. This will reduce wasted expenditure on ineffective communication and increase reach and impact. Since IDBI Federal is a sales organization the increase in sales is a very important goal that has to be achieved. The study tries to take a step by step approach, thereby evaluating consumer mind and also to familiarize them with term insurance and also to bring in light the different long and short time risks threatening our investment plans The aspect of Information Search will be specifically emphasized in the Five Stage Model of buying decision process. Information Search defines both the information sources and the search dynamics of the consumer. This will help in recognizing the receptiveness of consumers to different mediums of communication and see how consumers are guided towards decision making in terms of a particular Insurance product. This is because this stage is where marketing communication plays the largest and resource friendly role. This will be used to understand as to what actually drives a consumer to make a Purchase decision and to what extent marketing communication is responsible for it.

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METHODOLOGY AND LIMITATIONS The data for this purpose was collected using questionnaires and some specific one on one interaction to get a clear view of what triggers a certain consumers behavior and what would trigger him or her to make the purchase decision. The research was carried out by preparing questionnaire and taking interview (rural area). The urban consumer were provided questionnaire on internet and were from the city Hyderabad. The semi-urban sample was taken from Jodhpur (Rajasthan) and was asked to fill in the questionnaire. Rural sample was taken from Mathania, a tehesil 30 km apart from Jodhpur. For convenience video interview was taken. The main limitations were time and budget oriented, A wider area could not be surveyed for the same reason.

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LITERATURE SURVEY Each and every body is a consumer. India being a land of diverse diversity has different habits and approaches towards what forms the consumer behavior. Consumer Behavior in India has been studied and classified into different segments. While some prefer to go in for the socio-economic classification, others go in for the geographic version. The variability in terms of demography and culture make absolute classifications difficult. Researchers who have come up with classifications always warn that they cannot be used in the form of a rulebook. Not only a strict basis for studying consumer behavior cannot be laid down certainly a study done a long time back does not hold good. Tastes and preferences change drastically with time. The insurance sector is growing at an electric rate with more people accepting the joys of a secured future. The population of the country is large but so is the variability of income. Therefore customized solutions and tailor made policies are required and this is where the new generation of insurance companies are finding their success and striving and not leaving any stone unturned to woo the consumers by communicating the benefits of insurance. According to a report in the Hindustan Times a daily newspaper, Insurance penetration (i.e. premium as percentage of GDP) in India has increased from 2.3 in 2001 to 7 in 2012. In this scenario it has been the effort of emerging and established companies to break through the clutter. Competition has become intense along with the rise in for consumer awareness. Information Search in India has taken up an entirely new meaning with the advancement in technology. a marketer can most definitely influence the information search of a consumer. This means that the information search behavior helps the marketer to know what the consumer wants. He can then engineer the communication provided to the consumer in such a way that is works out to his own benefit.

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THE URBAN CONSUMER The Urban Consumer in India comprises of the population that lives in the metropolitan cities, capitals and commercial centres of the country. It comprises of people involved in occupations other than agriculture.Urban areas are characterised by high population density and the existence of Municipal Corporation along with other more advanced modern amenities and facilities at disposal. The total urban population of the country was approximately 386,119,689 according to the 2011 census. That is approximately 35 % of the countrys population. The percentage though small has more prospects and is a well reached group of consumers. The number has surely shoot up because of people migrating for a better and comfortable life. The sources of information available to this section of consumers comprise of the internet, the television, the radio, print media, hoardings and promotions. The kind of radio they mostly listen to here is FM Radio. The Urban youth and the common man are interested in listening to the latest Bollywood tunes. The corporate culture ensures time spent on the road while travelling to ones place of work and hence hoardings are noticed and are a means of distraction from the monotony of the daily transport. The television is in demand for a vast variety of programs ranging between the news, reality television, movies and all other national and international entertainment. This means the viewership is very wide. There is certainly a set of prominent channels which almost everyone watches. The urban consumers are surrounded by amenities such as vast retail bazaars and financial marketplaces offering rich variety both in terms of quality and services available. This exposes him to unconventional sources of masscommunication such as promotions, events and experiences and public relations. This surplus knowledge goes a long way in terms of Information search. The Urban consumer is more tech savvy and relies a lot on the internet and on social interactions. Observations till date, show a leaning towards social acceptance when it comes to taking investment decisions. This does not mean they do not rely on their own judgment. They are very knowledgeable and ask intelligent questions to challenge a services benefits. Basically they are go getters of information and do not rely solely on the information provided to them. Easy access to different modes of information
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has helped in bringing this revolution. A consumer today is aware of his needs and tries to study market to get the best possible deal his money can buy. The languages of choice in these urban areas are primarily English and Hindi. Even the semi-literate and those in the lower economic rungs pick up these languages for convenience. Therefore there is a scope of getting a wider audience for advertisements focusing on either of the two languages. The majority of one type in consumer class surely makes it easy to reach to the ultimate consumers. This poses challenge to marketing communication strategists. They need to ensure that every wall of information the consumer comes against is of good quality and highly persuasive. They need to respect that they are dealing with an intelligent and analytical consumer because this 21st century consumer is not willing to settle for anything less. They have to be innovative and improve traditional mediums like the print media and make information provided more comprehensive.

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THE SEMI URBAN CONSUMER A large number of countrys population, around 65% consist of the semi-urban and rural consumers. Urbanization is cited as one of the prime factors which have affected the flow of information positively and helped the larger section of society to have a greater access to information. The rural population is basically engaged in agriculture while the semi-urban population comprises of a mixture of highly educated and semi literate. Due to the difference in education and skill the income is unevenly distributed among the population. The rate of exposure though is still low because of the trend of receptiveness in these areas. In a semi-urban area once a brand makes its presence felt it becomes a trend. If an investment avenue gives out good returns there is an entire chain of people who will fall in to the pool like the domino effect. The sources of information here primarily comprises of the print media, the television and the radio. The internet still is used in a sporadic manner only for basic online formalities. The study shows difference between the consumers studied. The newspaper is what the common man depends upon for the daily news. The AM Radio is also prevalent here among the older generation mostly for news and old songs. They like listening to the news along with match commentaries. The television is mostly in demand for movies and soaps. A point to remember about semi-urban India is that the vernacular language of the state holds pre-eminence over common languages such as Hindi and English. India is a country comprising of 28 states and 7 union territories, each with at least one distinct language of its own. Now this poses a problem. There are people who might be educated in an English medium school but still prefer to communicate in their vernacular. This means that any communication in terms of marketing will be responded to in a better manner if it is in their own language. 6 Information about insurance here is mainly derived from door to door agents. People are not very affected by ads on popular channels. They trust what an agent tells them and are more receptive of persuasion. This makes it hard for companies who do not have a wide network of agents. Many of these areas then get monopolized by traditional companies and newcomers find it hard to turn loyal customers towards themselves. Special promotions generally never reach such areas and therefore the knowledge available to them is not very wide. In this context the main problem for a marketer is to spread wide enough a diverse web of information
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providers which can be customized in terms of language and culture and still ensure that the basic vision and mission of the company is fulfilled. The scope is very large but very difficult to make use of. India with its diversity sends out so many different messages in terms of services demanded that it is difficult to come out with a single core ideal service to satisfy all. Same is the case with the communication which is meted out to the wide populace. There just cannot be concentration on any one single medium or language if success on a national level has to be achieved.

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THE RURAL CONSUMER

The Indian rural consumer has the least knowledge about the product
As we know; India is still not a fully literate country, so television opens a new horizon in front of the advertising fraternity

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PRIMARY OBJECTIVES a) To study the consumer behavior in urban, semi urban and rural consumer. b) To study the aspects of Consumer Behavior in the insurance industry which affect the marketing strategy of IDBI Federal. SECONDARY OBJECTIVES a) To tap consumer response thus increasing sales. b) To know Customer Insight: Specific customer needs, aspirations, buying behaviors, usage patterns, decision models, preferences, favorability, intentions.
c) Advertising Research

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METHODOLOGY The methodology for the project involved both primary and secondary research. Since the objective of the project was to study consumer behavior in three segments namely urban, semi-urban and rural. PRIMARY RESEARCH SAMPLING It was decided that the research would be conducted through an appropriately selected sample. The sample had the following attributes: 1. The sample size taken is 100 for the urban segment ,100 for the semiurban segment and 15 for rural segment 2. The sample only included people between the age group of 22 49. 3. It only included those individuals who were employed and had regular income 4. The collection for the urban sample was done from Mumbai and Hyderabad 5. The collection for the semi-urban sample was done from a suburban locality in jodhpur 6. The rural sample were interviewed in mathania 30 km off jodhpur. QUESTIONNAIRE To collect data from the sample a questionnaire was designed. It was composed of 23 questions having closed as well as open ended response It gathered useful insight of the insurance scenario and the advertising policy STUDY As a part of the project I met several people to induce them to buy insurance by IDBI federal and was able to convince 10 people to purchase the policies of the company. It helped to gather vital information about the consumer thus enabling me to get better insight of the consumer mind sample.

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6.1.4 SCREENING AND CODING After the data was collected and the responses were screened and coded. Coding for semi-urban and urban data was done separately and fed into two different files. Rural data was not up to the mark as the consumer was devoid of any basic knowledge. 6.1.5 ANALYSIS The data after being coded was used to come to conclusions and was analysed understanding. 6.2 SECONDARY RESEARCH

Philip Kotler for theoretical insights. articles on consumer behavior and marketing in India.

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SAMPLE SIZE OF 100 PEOPLE IN AGE GROUP OF 23-30, urban consumers from Hyderabad.

When I say insurance what comes first to your mind?

25 20 15 10 5 0 Series1

Investment LIC Safety Unwanted goods Irritating insurance agent making false claims Money after death Security Savings Life insurance Future Protection from uncertain circumstances Tax saving Risk coverage That you are some Insurance agent When I understood the actual meaning of it Good but tries to cheat people

12 21 18 2 2 2 13 5 6 3 3 3 3 1 3 3

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Which is the first company that comes to your mind when you come across the word INSURANCE?

LIC IDBI FEDRAL ICICI PRUDENTIAL ICICI AXA HDFC Insurance

Here we can see that LIC is the market leader and is imprinted in everybodys mind. LIC has become a synonymous for Insurance.

1. Do you have an insurance policy?

yes no

yes no

76 24

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2.

(If YES) Mention the name of the company in which you have invested?

LIC Sbi life insurance Idbi federal Birla sun life insurance Mahindra

The majority of people have purchased the insurance from LIC, which shows the dominance of LIC.

3. What is your primary reason for purchasing Insurance?

Risk Coverage Investment Pension schemes Tax Benefit Any other (Please Mention)

Risk coverage is the major reason in contrary to the popular notion of tax saving.

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4. How did you come to know about your current insurance policy?

a. Newspaper b. Advertisement on television c. d. e. f. g. h. Online sources Billboard / Hoardings pamphlets Door to Door agents Friends/Relatives Other sources

In spite of the development in advertising strategies the insurance industry still rely on word of mouth marketing as we can respondents have heard about their policy from their friend or relatives.

5. Where do you channel your savings?

a. Fixed Deposit b. Savings Account c. Gold d. Forex e. Capital market f. Property g. Mutual Fund

Indians trust banks thus keeping their savings in FDS and Savings account

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6. Have you heard about IDBI Federal?

80 70 60 50 40 30 20 10 0 YES NO Dont remember Series1

The urban consumer is well versed with the company name. One of the major reason is the presence of federal bank in south.

7. How did you come to know about it?

a. Television Advertisements b. Newspaper or Magazine Advertisements c. Online Advertising

d. Billboard / Hoardings e. f. g. Pamphlets Door to Door agents Friends/Relatives

Here again the word of mouth plays an important role in the system to get the people know about the company

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8. Have you come across any advertisement by IDBI Federal?

no Yes

a large number of respondents have never seen an advertisement of IDBI Federal. This situation need to be addressed as WHAT PEOPLE SEE, PEOPLE BUY if the visibility of our product is less it is bound that the sales of that product will be less, and in a market place where 23 companies are fighting for market share, frequency of advertisement should be more.

If yes what was the advertising medium?

a. Television Advertisements b. Newspaper or Magazine Advertisements c. Online Advertising

d. Billboard / Hoardings Dont remember

The respondents who claim that they have seen the advertisement , majority is through television, newspaper comes second.

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9. Advertisements of IDBI Federal give sufficient information?

YES NO

Majority of the respondents who have seen the advertisement of IDBI Federal are satisfied with the content , but company can still work on the advertisements to provide more information about the company and product

10. Do you think that IDBI Federals advertising strategy is competitive enough in comparison with other insurance companies?

YES NO Cant say

the respondents didnt have any concrete answer to this question.

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11. Personality from which field would represent the Brand better?

a. sports b. showbiz c. politics d. AAM AADMI e. business personality

Insurance is something which is attached to the emotions of the general public, thus the advertisements having AAM AADMI, which people can relate themselves with, should represent the brand.

12. Which mode of advertisement attracts you the most?

a. Television b. Radio c. SMS d. Newspapers/magazines e. Hoardings/billboards f. Pamphlets g. Online Advertising

Television is the best medium for advertising as more than 65% of respondents have voted in favour of television. Newspaper and online advertising are also good way to attract customers.

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13. Which newspaper do you read

mint ET TOI Anand bazar Hindu HT Sandesh Samachar Mirror

times of India and Economic Times are the most read newspapers thus advertising in TOI and ET will fetch fruits more than any other newspaper.

14. What kind of television programs do you like?

a. news b. sports c. daily soaps d. reality shows e. movies f. music channels e. Informative

News channels and sports channels are liked by males, as in Indian context males have more say in capital expenditure, advertising on these kind of channels will catch the attention of males resulting in increased sales.

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15. What is your usual TV viewing hours?

Morning Noon Evening Night

The time best suited for advertising would be in morning 8-10 or in night 8- 11 .As the TV viewing hours of the urban citizens are in morning or in night. This is because of the life style of the urban consumer. This however changes in the week days as they want to relax in the noon and go out in the night, thus advertising should be done in noon during the weekends.

16. Do you listen to Radio? If yes, at what time?

No Yes

Timings

Morning Noon Evening Night

almost 50 % of the urban society doesnt hear Radio, and those who do usually do in late night. Radio is not very intelligent source of advertising as people hear radio for songs, and a person doesnt want to be disturbed during that hour of musical relaxation. Thus advertising on Radio will not be very successful.

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17. What is the average net usage time per day?

I seldom use internet once in a week Less than 30 minutes 30 minutes 1 hour 1 2 hour more than 2 hours

Online advertising is a form of promotion that uses the Internet and World Wide Web to deliver marketing messages to attract customers. Examples of online advertising include contextual ads on search engine results pages, banner ads, blogs, Rich Media Ads, Social network advertising, interstitial ads, online classified advertising, advertising networks and e-mail marketing, including e-mail spam. Urban masses are vicious users of internet. One major benefit of online advertising is the immediate publishing of information and content that is not limited by geography or time. To that end, the emerging area of interactive advertising presents fresh challenges for advertisers who have hitherto adopted an interruptive strategy . Research has proven that online advertising has given results and is growing business revenue. Thus online advertising is the way ahead, social networking sites, mailing sites are the best place to advertise in.

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SAMPLE SIZE OF 100 PEOPLE IN AGE GROUP OF 23-45, Semi urban consumers from Jodhpur.
1.
When I say insurance what comes first to your mind?
35 30 25 20 15 10 5 0 Series1

people of semi urban area connect insurance with safety and security, people were not aware of tax savings as the income generated by most of the people is not in the higher tax slabs. A few also thought that taking an insurance cover meant to provide their families a safety umbrella that would help them in instances of sudden death of the bread earner of the household. Many saw it as an investment opportunity but this thought was from the population which was well versed with the conditions relating to policy payouts. The population in large as aware of the benefits that can give favorable return and provide for a safety pad for the whole family.

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2. Which is the first company that comes to your mind when you come across the word INSURANCE?

LIC SBI life ICICI PRUDENTIAL HDFC Insurance

around 90 % answered LIC which shows the strong hold of LIC in semi urban area. Here a routine of people believing in LIC can be seen. though other companies have a lesser impact but here the population seem to follow a stereotype. trust what majority trusts seems to influence the insurance taking decision . as the major part of population has come to know about the insurance policy through friends and family so they have an eclipse effect on insurance decisions.

3. Do you have an insurance policy?

yes no

people in semi urban area are comparatively less insured than that of a urban consumer .but still majority is armed with insurance policies . a comparative part is not insured .

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4.

(If YES) Mention the name of the company in which you have invested?

LIC Sbi life insurance Birla sun life insurance Mahindra

LIC have captured the SEMI urban market.other like the urban area LIC holds a mammoth chunk of population .

5. What is your primary reason for purchasing Insurance?

Risk Coverage Investment Pension schemes Tax Benefit

risk coverage is the main reason stated for purchasing insurance. people believe that insurance policy is synonym of risk coverage.

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6. How did. you come to know about your current insurance policy?

a. Newspaper b. Advertisement on television c. Online sources

d. Billboard / Hoardings e. f. g. pamphlets Door to Door agents Friends/Relatives

here again friends and family are the main source of information. a few also relied on advertisement aired on television. Even people gained information from agents going door to door to make population aware of the insurance options available.

6. Where do you channel your savings?

a. Fixed Deposit b. Savings Account c. Gold d. Forex e. Capital market f. Property

the semi urban consumer have a huge inclination for FDs , property comes second. people here has a tendency to play safe . they even believe in investing in gold. Inclination of the population to fixed deposits show that they are more keen to get their future secured.

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7. Have you heard about IDBI Federal?

YES NO Dont remember

this is itself a question about the companys marketing strategy, when we come to know that majority of the people have not heard about the name of company. IDBI Federal is yet to reach the semi urban areas.

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8. How did you come to know about it?

a. Television Advertisements b. Newspaper or Magazine Advertisements c. Online Advertising

d. Billboard / Hoardings e. f. g. Pamphlets Door to Door agents Friends/Relatives

out of the total sample who have seen have seen through newspaper/ magazine. The information coming from friends and family has declined as compared to the above because they themselves have not come across the institutions enlightening others about the policies offered by IDBI Federal .

9. Have you come across any advertisement by IDBI Federal?

NO Yes

people claim that they have never come across any advertisement by the company. People were ignorant of IDBI Federal and people replied negative .

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If yes what was the advertising medium?

a. Television Advertisements b. Newspaper or Magazine Advertisements

the people who have seen have done through newspaper and television. They are the most viewed forms of media accessible and commonly used by the semi urban population.

10. Advertisements of IDBI Federal give sufficient information?

YES NO

here again the quality of the ADVERTISEMENT are in question where majority says the

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information provided was not enough .many who were not even aware of IDBI Federal replied negative to this question.

11. Do you think that IDBI Federals advertising strategy is competitive enough in comparison with other insurance companies?

YES NO Cant say

semi urban consumer is less aware about other private companies thus having little or no knowledge to comment on such topic.

12. Personality from which field would represent the Brand better?

a. sports b. showbiz c. politics d. AAM AADMI e. business personality

the Semi urban consumer want to see aam aadmi or someone from showbiz to represent the brand.they have the mindset that they would like to see someone among them to represent the brand.

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13. Which mode of advertisement attracts you the most?

a. Television b. Radio c. SMS d. Newspapers/magazines e. Hoardings/billboards f. Pamphlets g. Online Advertising

the most effective way to reach the consumer here is Television and newspaper.as people have more access to tv and newspaper.

14. Which newspaper do you read?

rajasrhan patrika dainik bhaskar TOI dainik navjyoti Hindu HT ET

the Hindi newspaper such as rajasthan patrika and dainik bhaskar are the most read newspapers with TOI not trailing too far.people here tend to choose regional newspapers .

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15. What kind of television programs. do you like?

a. news b. sports c. daily soaps d. reality shows e. movies f. music channels e. Informative

news sports and daily soaps get the major time of any semi urban consumer.mostly the female populations for daily soaps.

16. What is your usual TV viewing hours?

Morning Noon Evening Night

the time for watching Television is distributed all along the day with less viewers in evening. Morning was the time people said they sit to watch television .

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17. Do you listen to Radio? If yes, at what time?

No Yes

majority of people listened to radio. Timings

Morning Noon Evening Night

majority of population hear FM , so advertising it in morning or late night will have many receptors.

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18. What is the average net usage time per day?

I seldom use internet once in a week Less than 30 minutes 30 minutes 1 hour 1 2 hour more than 2 hours

youngsters are regular users of net but there are still many, who dont use internet, but nowadays people are having multimedia phones and they access net through mobile. Thus tapping the net for advertising is a very lucrative business idea.this mode may be useful for advertising

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SAMPLE SIZE OF 15 PEOPLE IN AGE GROUP OF 23-45, rural consumers from Mathania. It was disappointing to know the state of knowledge, initially the target for sampling was 100 but when the consumer had no idea about the product so the survey was stopped at a mere 10 people. The emphasis given by rural consumer was on small premium amount and flexibility is premium payment

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MAJOR FINDINGS
A very interesting fact came into light, Muslims are prohibited to earn through interest, and they view insurance similar to it, thus not purchasing insurance The brand IDBI federal was common for the southern India but semi urban consumer in north knew nothing about the company, but have heard about the IDBI Bank Urban population uses net everyday from 30 minutes to 2 hours . DD national channel was viewed in the rural areas as there is no availability of cable connection. Average rural household income is 40-60 thousand per annum, that too if the weather conditions are favorable for the crop. General prevalent notion Insurance agents are frauds.

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CONCLUSIONS The sources of information that the urban consumer is accessible and is perceptive to are different from that of the semi-urban consumer. Advertising online is not an option in semi-urban areas while in urban areas it has scope The urban segments are conversant with either English or Hindi; the Semi-urban and rural segments show strong leanings towards the Hindi or vernacular. There is still a wide gap in awareness about this company as reflected by the sample taken. The semi-urban population seems to be little aware about the company and rural area totally unaware. This is because the advertisements as not shown at frequent interval. Insurance in not a product people want to purchase, its all upon the selling strategy adopted by the company. (Insurance is sold under the SELLING CONCEPT i.e. the consumer is induced to buy through heavy promotions and personal buying pressure through Agent.) As insurance is related to life of a person, it is closely related to the sentiments of a human thus people want AAM AADMI to be the brand ambassador of the company. The people were not aware about the ads but when they were shown the ads they found them very interesting. The humor and the people advertising them were a perfect mix to be shown on television.

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RECOMMENDATIONS TRUST The most important word to be remembered by an insurance company. LIC is able to do monopoly business in lieu to this word. Thus IBDI Federal needs to spread its name among the masses as a trustworthy company. It should focus on a major issue of the parent company being a nationalized bank i.e. IDBI Advertising on National channel will help to tap rural consumer.

As the rural consumer does not have high income, they demand policies of low premium value thus policies of smaller denomination should be present. (As low as 3000 Rs in case of INCOMESURANCE.) Internet Advertising is a lucrative option as the urban consumer is vicious visitor of net. The semi-urban sample may be better reached through direct interaction in the form of events and experiences organized in schools and other institutions in the area. Camps should be organized in rural areas to develop the sense of trust and to make the people aware about the brand name. Advertising near hospitals will induce people to buy insurance as it is the place where people see battle between life and death on frequent bases thus making them aware about the value of their life and lives of their loved ones.
People who purchase policies from IDBI Federal should be given merchandise like pen, paperweight, pen stands and other merchandise; it will develop a bond between the customers to induce their relatives to buy insurance policies. Customers should be given stickers when they purchase policy and induce them to put on their vehicle; this is the best mode of advertisement as it is free of cost and has huge visibility.(if this would have been implied earlier; 3,00,000 happy costumers would have done the publicity which the company cant, with all its advertising budget.) Small transport companies/owners of transport vehicle should be approached and provide them with huge stick on banners emphasizing that this plastic banner will protect the outer layer of the transport vehicle, if we are able to convince them we will get free publicity. On the contrary a small amount will help the company to get the nod from those who didnt agree earlier.

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QUESTIONNAIRE 1. When I say insurance what comes first to your mind? ________________________________________________________________ ________________________________________________________________ 2. Which is the first company that comes to your mind when you come across the word INSURANCE? ________________

3. Do you have an insurance policy? Yes No 4. (If YES) Mention the name of the company in which you have invested? ________________ 5. What is your primary reason for purchasing Insurance? a. Risk Coverage b. Investment c. Pension schemes d. Tax Benefit e. Any other (Please Mention) __________________________

6. How did you come to know about your current insurance policy? a. b. c. d. e. f. g. h. Newspaper Advertisement on television Online sources Billboard / Hoardings pamphlets Door to Door agents Friends/Relatives Other sources _______________

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7. Where do you channel your savings? a. Fixed Deposit b. Savings Account c. Gold d. Forex e. Capital market f. Property g. Mutual Fund h. others _________________ 8. Have you heard about IDBI Federal? Yes No 9. How did you come to know about it? a. b. c. d. e. f. g. h. Television Advertisements Newspaper or Magazine Advertisements Online Advertising Billboard / Hoardings Pamphlets Door to Door agents Friends/Relatives Other sources_______________________

10. Have you come across any advertisement by IDBI Federal? Yes No If yes what was the advertising medium? -----------------------------------------------------11. Advertisements of IDBI Federal give sufficient information? Yes No

12. Do you think that IDBI Federals advertising strategy is competitive enough in comparison with other insurance companies? Yes No

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13. Personality from which field would represent the Brand better? a. sports b. showbiz c. politics d. AAM AADMI e. business personality 14. Which mode of advertisement attracts you the most? a. Television b. Radio c. SMS d. Newspapers/magazines e. Hoardings/billboards f. Pamphlets g. Online Advertising h. other____________________ 15. Which newspaper do you read? ___________________ 16. What kind of television programs. do you like? a. news b. sports c. daily soaps d. reality shows e. movies f. music channels e. Informative g. others________________ 17. What is your usual TV viewing hours? ________________ 18. Do you listen to Radio? If yes, at what time? Yes No

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Timings___________________ 19. What is the average net usage time per day? I seldom use internet once in a week Less than 30 minutes 30 minutes 1 hour 1 2 hour more than 2 hours 20. What are the major expenses you see in future? short term (5-10 years) : ____________________________________ medium term (10-20 years) : _________________________________ long term (>20 years) :______________________________________ 21. What measures have you taken to guard yourself from such expenses? ________________________________________________________________ ________________________________________________________________ __________ 22. Given a chance would you like to invest in IDBI Federal? Yes No If NO, Why? ________________________________________________________________ ________________________________________________________________ __________

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BUSINESS DATA

REFERENCES
Wikipedia.org Idbi federal official website Philip kotler

Indian Insurance Industry the task ahead- By Ernst and Young The Indian Insurance Industry: Challenges and Prospects- By Dr. Tapen Sinha

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