ADVERTISING IN INSURANCE

CHAPTER-1 INTRODUCTION - ROLE OF ADVERTISING IN

INSURANCE
The developments in the society encouraged the product development in the
insurance industry also. Insurance offer people the assurance of compensation in
the event of a specific contingency. It helps people fight against the evils of
poverty, unemployment, disease, old age, fateful accidents to person and property
and other calamities. Moreover it plays an important role in the mobilization of
savings of people especially from the lower and middle income group. Insurance
accumulates huge funds from small deposits of large number of investors which it
uses in the development of the society. Huge funds are made available as capital
for this purpose. The contributions in the form of premium are insignificant
independently but amount to millions in totality.
The Government took various steps to regulate the business of insurance. For
years, Life Insurance Corporation of India was the sole market player in India in
the field. As the Government permitted the private sector to enter the scenario, a
number of private sector companies have entered into life and other insurance
business in India. As per the guidelines of Insurance Regulatory and Development
Authority (IRDA) the Indian companies entered into joint ventures with the foreign
insurance companies to do business jointly. For eg. HDFC Standard Life Insurance
Company Ltd., Max New York Life Insurance Company Limited, ICICI Prudential
Life Insurance Company Limited, Om Kotak Mahindra Life Insurance Company
Limited, TATA AIG General Life Insurance Co. Ltd. Star Health and Allied
Insurance co. Ltd., and many others.

ADVERTISING IN INSURANCE
There was a time when insurance was looked with lots of apprehension but now
the industry is booming rapidly thanks to the entry of several private players and
their large scale advertising.No other sector has witnessed such intense competition
as displayed by the insurance sector in the past couple of years. This all
encouraged the entry of domestic giants like Tata, Birla, and reliance into the
industry. These giants have adopted every possible positive step towards the
promotion of the insurance sector. These insurance companies provide huge
chances to invest more in this area with their attractive schemes and products.

ADVERTISING IN INSURANCE

CHAPTER-2 GROWI NG IMPORTANCE OF ADVERTISING

IN INSURANCE.
Advertisements are sometimes spoken of as the nervous system of the business
world. As our nervous system is constructed to give us all the possible sensations
from objects, so the advertisement which is comparable to the nervous system must
awaken in the reader as many different kinds of images as the object itself can
excite" Advertising effectiveness means different things to the groups responsible
for its different effects. To the writer or artist, effective advertising is that which
communicates the desired message. To the media buyer, effective advertising is
that which reaches prospective buyers a sufficient number of times. To the
advertising or marketing manager, effective advertising is that which, together with
other marketing forces, sells his brand or product. To the general manager,
effective advertising produces a return on his firms expenditure. In fact,
effective advertising must achieve all four goals, delivering messages to the right
audience, thereby creating sales at a profit. Most advertisers have begun only
recently to set goals in all four areas and measure progress toward them. Some
advertisers have set communications and audience goals, and measured copy and
media effects, but few advertisers have set dollar goals and measured sales and
profit effects. The result is that advertising has rarely been a part of corporate
planning. Thirty years ago, management was asking the same questions they ask
today: Is my advertising working and what impact does it have on my sales? Can it
be measured? Can our advertising and promotion be made accountable in the same
manner as which one evaluates all of the other investments by our company? The
answer to all three questions is yes.

ADVERTISING IN INSURANCE
In fact, the techniques to deliver this degree of accountability and control have been
around for more than 50 years and are industry standards. A majority of Indian
customers being very conservative and averse to risk, trust was an extremely
important factor in the insurance business. Since LIC was a government owned
body, there was an element of security embedded in its services and products. This
proved to be the biggest hurdle for the new insurance companies as Indian
customers were reportedly rather skeptical about them.
Big boom has been witnessed in Insurance Industry in recent times. A large number
of new players have entered the market and are vying to gain market share in this
rapidly improving market. The study deals advertisement given by Insurance
Companies. The study then goes on to evaluate and analyze the findings of these
advertisements so as to present a clear picture of media strategy the Insurance
players.
Since 2001, when the insurance industry was privatized, various new services have
filled the market gaps. Before privatization in the insurance industry, there was
only a single player i.e. the Life Insurance Corporation of India in the market.
Therefore the volume and frequency of advertisements were low.
But the scenario has changed radically and the customers have become more
demanding as far as financial services are concerned. The scenario has led to a rise
in the volume and frequency of advertising for insurance products.
According to industry observers, one of the main reasons for the low insurance
penetration in India was the ineffective distribution and marketing strategies
adopted by LIC. The company reportedly never had any strategic marketing game
plan, and due to its monopolistic nature the need for serious marketing efforts was
never felt. The advertising initiatives were limited to some print and electronic
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ADVERTISING IN INSURANCE
media advertisements that typically talked about LICs products being great tax
saving tool for salaried individuals who came under the income-tax bracket.
Despite all this, LIC was synonymous with insurance in India and it had
established an enviable brand image for itself, especially in the rural areas and
small towns.
However, with the entry of new players, the insurance market changed almost
overnight. Analysts commented that the private insurers seemed all set to make the
industry marketing-driven, wherein technical and service excellence would be the
key factors of success. The private companies, in a bid to make their presence felt
and their brand noticed, initiated a series of aggressive marketing and promotion
initiatives, something that buyers of insurance were not accustomed to.
In July 2002, Indias state owned insurer, Life Insurance Corporation of India
(LIC) announced aggressive marketing plans with a budget of around Rs 1 billion.
The aim of this unusual decision was to woo customers across the country through
a multimedia campaign including advertisements on the radio and the press media,
the outdoor media and the television. However, this did not come as a major
surprise to industry observers who said that LIC did not have too many options.
With the insurance bill being passed in 2000, the Indian insurance sector saw a host
of private players enter the market with multinationals as their partners. These new
players resorted to aggressive marketing and advertisement strategies something
the market had never seen earlier.
This sudden spurt of advertisements and awareness programs was visible on all the
media channels. Print, electronic and outdoor advertisements of the new private
insurers flooded could be seen everywhere. This prompted many comparisons of
such behavior of insurance companies with the advertising frenzy of the dotcoms
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ADVERTISING IN INSURANCE
in India not too long ago with similar full-page advertisements, huge hoardings
and costly electronic media advertisements. According to reports, in the first
quarter of the year 2002, insurance companies spent 70% of what was spent in the
whole of 2001, on advertising and publicity.
Across the world, insurance, as a category was one of the largest spenders on
advertising. In India too substantial expenditure was being incurred due to
advertising.

Five Ms of Advertising
An advertiser has to take decisions on the following aspects:
1.

Mission :

This refers to the purpose/objective behind advertising. The objectives behind

advertising are varied in character. They include sales promotion, information and
guidance to consumers, developing brand loyalty, market goodwill, facing market
competition effectively, making the products popular/successful and introduction
of a new product. Decision in regard to mission is a basic one as other decisions
are to be adjusted as per the mission or objective or purpose of advertising decided.
For consumer products like chocolate, tooth paste, soap, the mission/objective
include facing market competition, sales promotion and making the product
popular in the market.

ADVERTISING IN INSURANCE

2.

Money :

This refers to the finance provided for advertising purpose (advertising budget). It
means the budget allocation made by the company for advertising. Money
provided is a limiting factor as effectiveness of advertising, media used, coverage
of advertising, etc. are related to the funds provided for advertising purpose.
Advertising is costly and companies have to spend crores of rupees for this
purpose. Advertising should be always within the limits of funds provided.
Naturally, decisions on advertising package should be adjusted as per the budget
allocation

for

advertising.

It may be noted that consumer products like tooth paste or chocolate are highly
competitive with many substitutes easily available in the market. Naturally,
extensive advertising on TV, newspapers, radio, etc. is required. These media are
costly. Naturally, the manufacturing/marketing company will have to provide huge
money for advertising purpose.
3.

Message :

Message is provided through the text of advertisement. The message is given

through written words, pictures, slogans and so on. The message is for the
information, guidance and motivation of prospective buyers. Attractive and
meaningful messages give positive results and the advertising becomes resultoriented. The services of creative writers, artists, etc. are used for giving attractive
message to the consumers. Here, the advertiser has to decide the message to be
given, the media to be used for communicating the message, the extent of
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ADVERTISING IN INSURANCE
creativity, the specific customer group selected for giving the message and so on.
The message is also related to the decisions taken as regards mission and money
provided

for

advertising.

For advertising consumer product like chocolate, the message is important. The
buyers are mainly children and others of lower age groups or for the benefit
(pleasure and satisfaction) of younger generation. The advertising message should
be simple and easily understandable with the help of picture or slogan. It should be
also attractive and agreeable to younger generation. The pictures or slogans used
should be short and impressive.
4.

Media :

Media of advertising are already noted previously. The advertiser has to take
decision about the media to be used for advertising purpose. Media differ as
regards cost, coverage, effectiveness and so on. The selection of media depends on
the budget provided, products to be advertised, and features of prospective buyers
and so on. Wrong decision on media may make advertising ineffective and money
spent will be wasted. This suggests that media should be selected properly and
decision

in

this

regard

is

important

and

critical.

For advertising popular and extensively used consumer items like chocolate, the
media should be selected properly. TV advertising particularly a cartoon channel,
advertising in children books or newspaper supplements for children, advertising
on radio programmes for children, etc.

ADVERTISING IN INSURANCE
5. Measure :
Measure relates to the effectiveness of advertising. An advertiser will like to make
evaluation of advertisement in order to judge its effectiveness. If an advertisement
is not effective /purposeful, it will be modified or withdrawn. This is necessary for
avoiding expenditure on the advertisement which is not effective or is not likely to
give positive results. An advertiser has to measure the effectiveness of his
advertisement programme/ campaign and take suitable decisions. This decisionmaking as regards effectiveness of advertising is equally important and essential.
Such testing facilitates introduction of suitable remedial measures, if required.
For measuring effectiveness of chocolate advertising, the post

advertising sale is

one major consideration. Demand creation in new market segments or in new age
groups is another consideration for the measurement of advertising effectiveness.
Even success of sales promotion programme is useful for measuring advertising
effectiveness.
In brief, like other areas of marketing management, decision-making is necessary
in advertising. This relates to Five Ms - mission, money, message, media and
measurement.

CHAPTER-3 CLASSIFICATION OF ADVERTISING

ADVERTISING IN INSURANCE
Virtually any medium can be used for advertising. Commercial advertising media
can include wall paintings, billboards, street furniture components, printed flyers
and rack cards, radio, cinema and television adverts, web banners, mobile
telephone

screens,

shopping

carts,

web popups,skywriting,

bus

stop

benches, human billboards, magazines, newspapers, town criers, sides of buses,

banners

attached

to

or

sides

of

airplanes

("logojets"), in-flight

advertisements on seatback tray tables or overhead storage bins, taxicab doors, roof
mounts and passenger screens, musical stage shows, subway platforms and trains,
elastic bands on disposable diapers,doors of bathroom stalls,stickers on apples in
supermarkets, shopping

cart

handles (grabertising),

the

opening

section

of streaming audio and video, posters, and the backs of event tickets and
supermarket receipts. Any place an "identified" sponsor pays to deliver their
message through a medium is advertising.
1. Product Related Advertising
It is concerned with conveying information about and selling a product or service.
Product advertising is of three types, viz.,
A. Pioneering Advertising
B. Competitive Advertising
C. Retentive Advertising
A. Pioneering Advertising:
This type of advertising is used in the introductory stages in the life cycle of a
product. Itis concerned with developing a primary demand. It conveys
information about, and selling aproduct category rather than a specific brand. For
example, the initial advertisement for black and white television and color
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ADVERTISING IN INSURANCE
television. Such advertisements appeal to the consumersemotions and rational
motives.
B. Competitive Advertising:
It is useful when the product has reached the market-growth and especially the
market-maturity stage. It stimulates selective demand. It seeks to sell a specific
brand rather than ageneral product category. It is of two types:
A. Direct Type: It seeks to stimulate immediate buying action.
B. Indirect Type: It attempts to pinpoint the virtues of the product in the
expectation that the consumers action will be affected by it when he is ready to
buy.
Example: Airline advertising.
Air India attempts to bid for the consumers patronage either immediately - direct
action-in which case, it provides prices, time tables and phone numbers on which
the customer may callfor reservations; or eventually indirect action when it
suggests that you mention Air Indiasname when talking to your travel agent.

C. Retentive Advertising:
This may be useful when the product has achieved a favourable status in the
market thatis, maturity or declining stage. Generally in such times, the advertiser
wants to keep his productsname before the public. A much softer selling approach
is used, or only the name may bementioned in reminder type advertising.
2. Public Service Advertising
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ADVERTISING IN INSURANCE

This is directed at the social welfare of a community or a nation. The effectiveness

ofproduct service advertisements may be measured in terms of the goodwill they
generate in favourof the sponsoring organization. Advertisements on not mixing
drinking and driving are a goodexample of public service advertising. In this type
of advertising, the objective is to put across amessage intended to change attitudes
or behaviour and benefit the public at large.
3. Functional Classification
Advertising may be classified according to the functions which it is
intended

to

fulfil.

(i) Advertising may be used to stimulate either the primary demand or the selective
demand.
(ii) It may promote either the brand or the firm selling that brand.
(iii) It may try to cause indirect action or direct action.
i. Advertising Based on Demand Influence Level.
A. Primary Demand Stimulation
Primary demand is demand for the product or service rather than for a particular
brand. Itis intended to affect the demand for a type of product, and not the brand of
that product. Some advertise to stimulate primary demand. When a product is new,
primary demand stimulation isappropriate. At this time, the marketer must inform
consumers of the existence of the new itemand convince them of the benefits
flowing from its use. When primary demand has beenstimulated and competitors
have entered the market, the advertising strategy may be to stimulatethe selective
demand.

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ADVERTISING IN INSURANCE
B.Selective Demand Stimulation
This demand is for a particular brand such as Charminar cigarettes, Surf
detergentpowder, or Vimal fabrics. To establish a differential advantage and to
acquire an acceptable sortof market, selective demand advertising is attempted. It
is not to stimulate the demand for theproduct or service. The advertiser attempts to
differentiate his brand and to increase the totalamount of consumption of that
product. Competitive advertising stimulates selective demand. Itmay be of either
the direct or the indirect type.
ii. Institutional Advertising
Institutional Advertising may be formative, persuasive or reminder oriented in
character.Institutional advertising is used extensively during periods of product
shortages in order to keepthe name of the company before the public. It aims at
building for a firm a Positive public imagein the eyes of shareholders, employees,
suppliers, legislators, or the general public. This sells only the name and prestige of
the company. This type of advertising is used frequently by largecompanies whose
products

are

well

known.

HMT

or

DCM,

for

example,

does

considerableinstitutional advertising of its name, emphasizing the quality and

research behind its products.
Institutional advertisements are at consumers or focus them upon other groups,
such asvoters, government officials, suppliers, financial institutions, etc. If it is
effective, the targetgroups will respond with goodwill towards, and confidence in
the sponsor. It is also a usefulmethod or introducing sales persons and new product
to consumers. It does not attempt to sell aparticular product; it benefits the
organization as a whole.
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ADVERTISING IN INSURANCE
It notifies the consumers that the company is a responsible business entity and
ispatriotic; that its management takes ecologically responsible action, is an affairmotive actionemployer, supports the socialistic pattern of society or provides
employment opportunities in thecommunity. When Indian Oil advertisements
describe the companys general activities, such aspublic service work, this may be
referred to as institutional advertising because it is intended tobuild an overall
favorable attitude towards the company and its family of products. HMT oncetold
the story of the small-scale industries supplying it with component parts, thus
indicating how it aided the development of ancillary industries.

iii. Product Advertising

Most advertising is product advertising, designed to promote the sale or reputation
of aparticular product or service that the organization sells. Indanes Cooking Gas
is a case in point.The marketer may use such promotion to generate exposure
attention, comprehension, attitudechange or action for an offering. It deals with the
non-personal selling of a particular good orservice. It is of three types as follows:A.Informative Product Advertising
B. Persuasive Product Advertising
C. Reminder-Oriented Product Advertising
A.

Informative Product Advertising:

This form of advertising tends to characterize the promotion of any new type of
productto develop an initial demand. It is usually done in the introductory stages of
the product lifecycle. It was the original approach to advertising.
B. Persuasive Product Advertising:
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ADVERTISING IN INSURANCE

Persuasive product advertising is to develop demand for a particular product or

brand. Itis a type of promotion used in the growth period and, to some extent, in
the maturity period ofthe product life cycle.
C. Reminder-Oriented Product Advertising:
The goal of this type of advertising is to reinforce previous promotional activity
bykeeping the brand name in front of the public. It is used in the maturity period as
well asthroughout the declining phase of the product life cycle.

4. Advertising based on Product Life Cycle

A. Consumer Advertising
B. Industrial Advertising
A. Consumer Advertising
Most of the consumer goods producers engage in consumer product
advertising.Marketers of pharmaceuticals, cosmetics, scooters, detergents and
soaps, cigarettes and alcoholicbeverages are examples. Baring a few, all these
products are all package goods that the consumerwill often buy during the year.
There is a heavy competition among the advertisers to establishan advantage for
their particular brand.
B. Industrial Advertising
Industrial executives have little confidence in advertising. They rely on this form
ofpromotion merely out of fear that their competitors may benefit if they stop their
advertisingefforts. The task of the industrial advertiser is complicated by the
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ADVERTISING IN INSURANCE
multiple buying influencecharacteristics like, the derived demand, etc. The
objectives vary according to the firm and thesituation. They are:
To inform,
To bring in orders,
To induce inquiries,
To get the advertisers name on the buyers list of sources,

To provide support for the salesman,

To reduce selling costs,

To help get items in the news column of a publication,
To establish recognition for the firm or its product,
To motivate distributors,
To recognition for the firm or its products,
To motivate distributors, to create or change a companys image,
To create or change a buyers attitude, and
The basic appeals tend to increase the rupee profits of the buyer or help in
achieving hisnon-monetary objectives. Trade journals are the media most generally
used followed bycatalogues, direct mail communication, exhibits, and general
management publications.Advertising agencies are much less useful in industrial
advertising.

5. Trade Advertising
A. Retail Advertising
B. Wholesale Advertising
A. Retail Advertising

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ADVERTISING IN INSURANCE
This may be defined as covering all advertising by the stores that sell goods
directly tothe consuming public. It includes, also advertising by establishments that
sell services to thepublic, such as beauty shops, petrol pumps and banks.
Advertising agencies are rarely used. Thestore personnel are usually given this
responsibility as an added task to be performed, togetherwith their normal
functions. The result is that advertising is often relegated to a secondaryposition in
a retail store. One aspect of retail advertising is co-operative advertising. It refers
toadvertising costs between retailers and manufacturers. From the retailers point
of view, co-operative advertising permits a store to secure additional advertising
that would not otherwisehave been available.
B.

Wholesale Advertising

Wholesalers are, generally, not advertising minded, either for themselves or for
theirsuppliers. They would benefit from adopting some of the image-making
techniques used byretailers the need for developing an overall promotional
strategy. They also need to make agreater use of supplier promotion materials and
programs in a way advantageous to them.
6. Advertising based on Area of Operation
It is classified as follow:
A. National Advertising
B. Regional Advertising
C. Local Advertising
A. National advertising
It is practiced by many firms in our country. It encourages the consumer to buy
their product wherever they are sold. Most national advertisements concentrate on
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ADVERTISING IN INSURANCE
the overall image and desirability of the product. The famous national advertisers
are:
HindustanLevers
DCM
ITC
JayEngineering
TISC
B. Regional advertising
It is geographical alternative for organizations. For example, Amrit Vanaspati
based inRajpura claims to be the leading hydrogenated oil producer in the Punjab.
But, until recently, itmainly confined itself to one of the vegetable oil brands
distribution to Malihabad district (inU.P. near Lucknow).

C. Local advertising
It is generally done by retailers rather than manufacturers. These advertisements
save thecustomer time and money by passing along specific information about
products, prices, location, and so on. Retailer advertisements usually provide
specific goods sales during weekends invarious sectors.
7. Advertising According to Medium
The most common classification of advertising is by the medium used. For
example: TV, radio, magazine, outdoor, business periodical, newspaper and direct
mail advertising. Thisclassification is so common in use that it is mentioned here
only for the sake of completeness

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ADVERTISING IN INSURANCE

CHAPTER-4 AIDA MODEL

AIDA is an acronym used in marketing that describes a common list of events that
may be undergone when a person is selling a product or service. The term and
approach are attributed to American advertising and sales pioneer, E. St. Elmo
Lewis. In 1898 Lewis created his AIDA funnel model on customer studies in the
US life insurance market to explain the mechanisms of personal selling. Lewis held
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ADVERTISING IN INSURANCE
that the most successful salespeople followed a hierarchical, four layer process
using the four cognitive phases that buyers follow when accepting a new idea or
purchasing a new product.

A - Attention (Awareness): attract the attention of the customer.

I - Interest: raise customer interest by focusing on and demonstrating

advantages and benefits (instead of focusing on features, as in traditional
advertising).

D - Desire: convince customers that they want and desire the product or
service and that it will satisfy their needs.

A - Action: lead customers towards taking action and/or purchasing.

Using a system like this gives one a general understanding of how to target a
market effectively. Moving from step to step one loses some percent of prospects.

We aim to introduce you to AIDA model marketing.

This is a marketing tool which has been used for over a century and sets out the
four different stages an effective marketing plan should follow when selling a
product or service.

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ADVERTISING IN INSURANCE
Attention: The object here is to get your potential customer to actually stop and
take notice of your offering. How do you attract their attention in just that split
second you have before they move on to the next web page?
One of the most effective tools a marketer can employ is using images think
about the pictures on the sides of buses or on billboards and how they grab your
attention. Similarly if you are creating a web page to market a product/service you
need to have clear, bold images that attract and hold the viewers attention. Another
effective tool is to use clear and strong typography, fonts and colors that
compliment the product/service. Keep a balance between the sizes of the images,
fonts and information you are expressing. Often less can be more!
Interest: Once you have captured your customers attention you have to proceed to
grow their interest in the product. Shoppers are becoming ever savvier and are no
longer appeased purely by being shown pretty pictures or lists of attributes. You
need to get in there and show and tell how the product/service you are selling is
going to help them.
Highlight the practical benefits how it will help reduce the need for repetitive
tasks or menial jobs that are time consuming. Explain how using a product will
free up time to spend with friends and family. Point out that the product you are
selling is made using high quality materials or if you are targeting an eco-friendly
audience use the opportunity to highlight the recyclable nature of the product.
Desire: A more difficult stage of the process in applying the AIDA model in web
based marketing is creating a real desire for the product. One of the most popular
applications is using image sliders or content switchers. By using these JavaScript
driven methods you are able to build the viewers desire for a product/service.
Again using images showing how the use of a product/service will move the
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ADVERTISING IN INSURANCE
potential customer from using time to perform menial tasks to being able to spend
that time with friends and family
Another effective tool is to ensure that you organize the content of your page. If a
viewer has to start searching for information because you have not provided a clear
menu, list of benefits or even a link to reviews you have lost your customer. Grab
the attention; make them believe that they cannot do without the product/service.
Action: This step in the process is where you can really use your creativity to get
the customer to take action, buying your product/service. You can provide the
option to buy your product or sign up for a service online. If you are selling an
application offer a free trial period download. Use visually attractive call-to-action
buttons that lead you customer to the next step.
No doubt you will by now have realized that an experienced designer would have
used the AIDA model marketing stages in some fashion in their web designs.

CHAPTER-5 DAGMAR Model

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ADVERTISING IN INSURANCE
DAGMAR is Defining Advertising Goals for Measured AdvertisingResults. It is
basically an approach to advertising planning and a precise method for selecting
and quantifying goals and for using those goals to measure performance.
An advertising objective involves a communication task, intended to create
awareness, impart information, develop attitudes or induce action. In the
DAGMAR approach, the communication task is based on a specific model of the
communication process, as shown below.

Communication Process in DAGMAR Approach

The model suggests that before the acceptance of a product by an individual, there
is a series of mental steps which the individual goes through. At some point of
time, the individual will be unaware of the product or offer in the market. The
initial communication task of the advertising activity is to increase consumer
awareness of the product or offer.

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ADVERTISING IN INSURANCE
The second step of the communication process is comprehension of the product or
offer and involves the target audience learning something about the product or
offer. What are its specific characteristics and appeals, including associatied
imagery

and

feelings?

In

what

way

does

it

differ

from its competitors? Whom is it supposed to benefit?

The third step is the attitude (or conviction) step and intervenes between
comprenension and final action. The action phase involves some overt move on the
part of the buyer such as trying a brand for the first time, visiting a showroom, or
requesting information.
The whole communication process is a bit more complex. And under different
circumstances, it may differ slightly, but the basic concept revolves around what is
mentioned in the paragraphs above. The DAGMAR approach emphasises the
communication task of advertising. The second important concept of the approach
is that the advertising goal be specific. It should be a written, measurable task
involving a starting point, a defined audience, and a fixed time period.
Now that the basic theory is told, how to apply in your specific situation?
We are mainly traders dealing with products from other reputed and not so reputed
companies and sitting here, we cannot dictate the company's advertising strategy.
So, we look forward to developing a model which can reasonably applied in our
case.
Let's build your scenario and have the advertising brief:
You are a dealer or distributor and want to sell products of a reputed company. You
don't have to worry about the image and perception of the brand. You are just
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ADVERTISING IN INSURANCE
worried that customers might not want to buy from you. And, instead, buy from a
competiting shop next to yours dealing with the same kinds of products. In such a
case, what should be done? What should be your advertising objective? Should you
have an advertising strategy? What would be the ingredients of such an advertising
plan? What should be the budget?
Let's discuss some of the issues related to your promotion/advertising related
activity. You must first distinguish between advertising from your marketing
objectives. And DAGMAR is aimed at setting your advertising goals/ plannings
and not marketing goals.
A Measurable Objective
The DAGMAR approach sounds impractical once we talk of measurements,
surveys, questionnaires and all that staff. After all, who'd go for a survey! But, as
the approach emphasises the importance of objectives, we must have some form of
measurement to indicate the effectiveness of the advertising/ promotional
campaign.
So if you are thinking of a promotional campaign, it must have an objective. And
an objective that is measurable.
For a yellow page advertisement, the measurement could be the number of phone
calls received before and after the ad was published or the number of referrals
through yellow pages. Many of our advertisers are pleasantly surprised by orders/
offers received through phone calls, which were later found to be through
advertisements in yellow pages.

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Now, the question is, if they did not advertise in the yellow pages, would they have
received those orders/ offers? That's another matter, though.
Your measurable objective must be written, clear and unambiguous. Goals like
'Improve store image'/Increase awareness of our store' etc are too vague and do not
lead to anywhere. A good starting point to work on the goal would be:
Increase awareness of our store by 10%
A Conceivable Benchmark
When we talk of measurement, its both current and future. We must, first, know
where we stand now, and know in quantitative terms. The current position is your
starting point which will help in establishing a goal and selecting a campaign to
reach it. Getting more customers into your store might not be an optimal goal, if
you already receive a large number of visitors. So, have an objective analysis of
where you are and then start working on your objective.
If you know that already many customers are visiting your store, you may probably
have some idea of their behaviour related to purchases. (If you don't, that's a pity).
Now you know that your advertising can be aimed at converting your visitors to
customers.
Let's reconstruct our goal now:
Increase awarenes of our store from the current level of 20% to 30%

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Well-Defined Target Audience
Perhaps, the first lession you should learn in marketing is target audience. Not
everyone is going to buy your product. Not everyone needs your product, its
another matter that some needs are latent and needs to be aroused. So, identify
your target audience, to whom you are going to aim your ad campaign. Most likely,
this is going to be your user segment as well.
As an example, if you are selling premium car accessories, you should target
customers who are either stylish, sophisticated or own premium cars.
Working further on the advertising goal, we now have:
Increase awarenes of our store from the current level of 20% to 30% among the
owner of product X.
Fixed time period
Your advertising campaign should not run for eternity, without having milestones
to achieve over the future time frame. You should have a fixed time period, six
months or a year, within which you should aim at attaining certain goals. There
should also be some time allocated td to test the campaign, make amendments, if
required to the campaign. A time should be fixed upon the arrival of which the
campaign can be evaluated. So, we finally have our advertising goal as follows:
Increase awarenes of our store from the current level of 20% to 30% among the
owner of product X before the launch of product Y which is expected within the
next six months.

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CHAPTER-6 IMC MODEL

Integrated Marketing Communications (IMC) is the coordination and

integration of all marketing communication tools, avenues, functions and sources
within a company into a seamless program that maximizes the impact on
consumers and other end users at a minimal cost.
What is IMC?
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.
IMC Component

The Foundation - corporate image and brand management; buyer behavior;

promotions opportunity analysis.

Advertising Tools - advertising management, advertising design: theoretical

frameworks and types of appeals; advertising design: message strategies and
executional frameworks; advertising media selection. Advertising also
reinforces brand and firm image.
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Promotional Tools - trade promotions; consumer promotions; personal

selling, database marketing, and customer relations management; public
relations and sponsorship programs.

Integration Tools - Internet Marketing; IMC for small business and

entrepreneurial ventures; evaluating and integrated marketing program.

Marketing Mix Component

The Internet has changed the way business is done in the current world. The
variables of segmentation, targeting and positioning are addressed differently. The
way new products and services are marketed have changed even though the aim of
business in bringing economic and social values remain unchanged. Indeed, the
bottom line of increasing revenue and profit are still the same. Marketing has
evolved to more of connectedness, due to the new characteristics brought in by the
Internet. Marketing was once seen as a one way, with firms broadcasting their
offerings and value proposition. Now it is seen more and more as a conversation
between marketers and customers. Marketing efforts incorporate the "marketing
mix". Promotion is one element of marketing mix. Promotional activities include
advertising (by using different media), sales promotion (sales and trades
promotion), and personal selling activities. It also includes Internet marketing,
sponsorship marketing, direct marketing, database marketing and public relations.
Integration of all these promotional tools, along with other components of
marketing mix, is a way to gain an edge over a competitor.
The starting point of the IMC process is the marketing mix that includes different
types of marketing, advertising, and sales efforts. Without a complete IMC plan
there is no integration or harmony between client and customers. The goal of an

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organization is to create and maintain communication throughout its own
employees and throughout its customers.
Integrated marketing is based on a master marketing plan. This plan should
coordinate efforts in all components of the marketing mix. A marketing plan
consists on the following steps:
1. Situation analysis
2. Marketing objectives
3. Marketing budget
Integrated marketing communications aims to ensure consistency of message and
the complementary use of media. The concept includes online and offline
marketing channels. Online marketing channels include any e-marketing
campaigns or programs, from search engine optimization (SEO), pay-per-click,
affiliate, email, banner to latest web related channels for webinar, blog, microblogging, RSS, podcast, Internet Radio, and Internet TV. Offline marketing
channels are traditional print (newspaper, magazine), mail order, public relations,
industry relations, billboard, traditional radio, and television. A company develops
its integrated marketing communication programmer using all the elements of the
marketing mix (product, price, place, and promotion). Integrated marketing
communications plans are vital to achieving success. The reasons for their
importance begin with the explosion of information technologies. Channel power
has shifted from manufacturers to retailers to consumers.
Using outside-in thinking, Integrated Marketing Communications is a data-driven
approach that focuses on identifying consumer insights and developing a strategy
with the right (online and offline combination) channels to forge a stronger brand-

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consumer relationship. This involves knowing the right touch points to use to reach
consumers and understanding how and where they consume different types of
media. Regression analysis and customer lifetime value are key data elements in
this approach.
Importance of IMC
Several shifts in the advertising and media industry have caused IMC to develop
into a primary strategy for marketers:
1. From media advertising to multiple forms of communication.
2.

From mass media to more specialized (niche) media, which are centered on
specific target audiences.

3.

From a manufacturer-dominated market to a retailer-dominated, consumercontrolled market.

4.

From general-focus advertising and marketing to data-based marketing.

5.

From low agency accountability to greater agency accountability,

particularly in advertising.

6.

From

traditional

compensation

to

performance-based

compensation

(increased sales or benefits to the company).

7.

From limited Internet access to 24/7 Internet availability and access to goods
and services.

4 Ps vs. 4 Cs

Not PRODUCT, but CONSUMER

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You have to understand what the consumer's wants and needs are. Times have
changed and you can no longer sell whatever you can make. The product
characteristics have to match the specifics of what someone wants to buy. And part
of what the consumer is buying is the personal "buying experience."

Not PRICE, but COST

Understand the consumer's cost to satisfy the want or need. The product price may
be only one part of the consumer's cost structure. Often it is the cost of time to
drive somewhere, the cost of conscience of what you buy the cost of guilt for not
treating the kids, etc.

Not PLACE, but CONVENIENCE

As above, turn the standard logic around. Think convenience of the buying
experience and then relate that to a delivery mechanism. Consider all possible
definitions of "convenience" as it relates to satisfying the consumer's wants and
needs. Convenience may include aspects of the physical or virtual location, access
ease, transaction service time, and hours of availability.

Not PROMOTION, but COMMUNICATION

Communicate, communicate, and communicate. Many mediums working together

to present a unified message with a feedback mechanism to make the
communication two-way. And be sure to include an understanding of nontraditional mediums, such as word of mouth and how it can influence your position
in the consumer's mind. How many ways can a customer hear (or see) the same
message through the course of the day, each message reinforcing the earlier
images?
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Effective Communication Analysis
The goal of selecting the elements of proposed integrated marketing
communications is to create a campaign that is effective and consistent across
media platforms. Some marketers may want only ads with greatest breadth of
appeal: the executions that, when combined, provide the greatest number of
attention-getting, branded, and motivational moments. Others may only want ads
with the greatest depth of appeal: the ads with the greatest number of attentiongetting, branded, and motivational points within each.
Although integrated marketing communications is more than just an advertising
campaign, the bulk of marketing dollars is spent on the creation and distribution of
advertisements. Hence, the bulk of the research budget is also spent on these
elements of the campaign. Once the key marketing pieces have been tested, the
researched elements can then be applied to other contact points: letterhead,
packaging, logistics, customer service training, and more, to complete the IMC
cycle.
One common type of integrated marketing communication is personal selling.
Personal selling can be defined as "face to face selling in which a seller attempts to
persuade a buyer to make a purchase."
Promotion Opportunity Analysis
A major task that guides the way in creating an effective Integrated Marketing
Communications plan is the promotions opportunity analysis. A promotions
opportunity analysis is the process marketers use to identify target audiences for a
companys goods and services and the communication strategies needed to reach
these audiences. A message sent by a marketer has a greater likelihood of
achieving the intended results if the marketer has performed a good analysis and
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possesses accurate information pertaining to the target audience. There are five
steps in developing a promotions opportunity analysis:
Conduct a communication market analysis

Competitors

Opportunities

Target markets

Customers

Product positioning

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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Create communications budget Several factors influence the relationship
between expenditures on promotions and sales:

The goal of the promotion

Threshold effects

Carryover effects

Wear-out effects

Decay effects

Random events

Prepare promotional strategies

Match tactics with strategies
Throughout these steps, marketers should consistently review and analyze the
actions and tools that major competitors are utilizing.

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CHAPTER-7 BRAND BUILDING

How a company does announced a name change especially when the old name was
well known? How does the company explain itself to constituents who may have
known the company quite well in an earlier incarnation but may be struggling to
figure out what the new organization stands for? How can the company create a
new image while retaining the strengths of the old one? And what role might
corporate advertising play in all this? Corporate advertising can tell a story about
a company as a whole, large organizations may need to use corporate ads to
simplify their image in the minds of key constituents and to show what unifies the
company, despite the geographical spread and variety of its businesses.

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We can very well understand the concept of corporate advertising by taking the
example of ICICI Prudential communication. When Company first began
operations, the task was to present the visiting card of the company to the public at
large and build credibility and stature and to give the consumer the confidence that
''here is a company that can be trusted to invest funds with.''

This required a

corporate campaign - to establish the brand, build awareness and give the brand a
larger-than-life image. The advertising idea, which was encapsulated in symbols
of protection from the initial print campaign, culminated in the corporate film
where sindhoor was used as an endearing and lasting symbol of protection. Once
the corporate image and brand identity were established, and as the company
expanded and its product range grew, the next phase of communication was to give
the consumer a rational and tangible reason to buy - first of all insurance and
secondly from ICICI Prudential Life.

This was tackled through product-specific advertising, such as for ICICI Prudential
Smart Kid, retirement solutions or Life Time.
Brand building through corporate advertising, defined generally as advertising that
benefits a companys image by emphasizing its own resources, skills and/or
character. Many astute business people now recognize corporate brands as
fundamental business assets, and have begun reaching out to customers, prospects,
and the financial community by advertising those brands.
Brand building advertising is synonymous with product advertising and is
commonly seen in traditional mass media, including TV, radio, magazine, and
newspaper. Brand building advertisements tend to be product/service- (or retailer-)
oriented with the purpose to establish a positive image and creating demand for a
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product or service that leads to eventual purchase. The communication route is
typically one-to-many and is designed to reach a mass audience by using a tactic of
at capturing the attention of users.

One can think of a number of advantages. Let me elaborate on a few of them.

Brand building drastically reduces marketing investments:
A strong brand needs lower and lower levels of incremental investment to sustain
itself over time. A new, unknown player will have to spend two to four times the
market leader to achieve the same share of mind. Given the huge difference in
business volumes, the pressure of the bottom line is much higher for an
unestablished player.

Brand building facilitates long range planning:

Ask any business manager at Hind Lever (HLL), Nestl or even homegrown
organizations like Wipro, Hero Cycles, or TVS Group. In an average year, his
ability to target and budget primary sales would be infinitely simpler than for
someone responsible for a relatively unestablished brand. The latter gentleman
would be targeting merely on desired volumes almost always dictated by top
management. Strong brands always account for more stable businesses.
Brand building commands a premium:
As long as there is a distinct value attached to your offering, the consumer will
always be willing to pay more for it. That is the only reason why an unknown
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brand called Titan could command a substantial premium over HMT. That is the
same reason why a brand like BPL at a higher cost beat the stuffing out of
companies like Akai, Sony and Phillips in the TV wars last year.
Brand building builds entry barriers:
Human beings as a species love status quo. Therefore, a brand, which is entrenched
in the consumers mind, is very difficult to dislodge. If for nothing else, the sheer
inertia will override any cooing and wooing noises that the new entrant would
create. This consequently implies stability of business and therefore stability of
revenue.
Brand building increases cash flow efficiency:
Today, an HLL distributor leaves signed checkbooks with the company to be filled
in on material dispatch. This is true for most brands with strong franchises even if
they be in the agarbathies or Hawai chappal businesses. What more can a small
business ask for.
Brand building increases value of the business:
Examples abound internationally and today even in India of businesses, which
were sold for several times their book value. Phillip Morris bought Kraft from
General Foods in 1991 for US $13 billion. More than three times its book value. A
little later at home, Coca-Cola paid US $60 M to acquire Thums-Up from Parles.
Neither buyer had any lacunae in manufacturing, finance or human resources. They
merely bought business with very powerful brand equities and therefore paid more
than the net worth of the businesses.

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In conclusion, it is amply evident that the brand is more than just a warm
comfortable feeling that is very expensive to create. It is without debate a
multifaceted, tangible, and most importantly, enduring commercial advantage for
any business however large or small. I cannot see how any entrepreneur can shy
away from investing time and money in building this advantage.

APPEALS ON THE EMOTIONS

In a world where we are all called upon to make choice, to pick one product from
12 similar items, one service from 16 others, and one lifestyle or another the
advertising of these products and service can make a huge difference to our
decision. Yes the product or service that is being offered must have a certain
quality and of course, the price or investment matters too. But most purchase
decisions assuming that price is not a major factor are not made in cold blood.
Rather we tend to buy or invest in the things that make us feel good about
ourselves or that touch us.
That is why the kind of advertising that works best is advertising that plays on an
emotion. Fear, affection, anger, security, humors, basic values. If a commercial

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manages to arouse any of these emotions in us chances are we will remember that
adverting and buy that product.
Advertising agencies are well aware of this phenomenon. India is a country is
very high on emotions. Most people here act and react more on instinct &
emotions than anything else. The feel factors is very strong. People not only
relate very well to emotions, but are also immensely entertained by them. But is
there any particular emotion that works better that other? Humor is easy to relate
to. We are more inclined to recall a joke than a moment of sadness. On the other
hand, we do have the reputation of being a rather sentimental nation, so does
poignant advertisement work best?

Here are some of the snapshots of the advertisements from the insurance sector that
appeals on the emotions of the target audience or viewer..
1. LIFE IS LIKE CRICKET

As one proceeds with his investment pattern, there are certain issues of dilemma
such as risk return, cumulative return versus intermittent returns, etc. Aviva life
insurance has directly hit the issues through an advertisement featuring cricketer
Sachin Tendulkar. One has to find the gaps to make the most from investment
made in an avenue. The life is beautifully compared with the cricket where the
expectations rest on the players. Similarly, the earning members have also to look
after the expectations of their family members. They have to balance between the
high return expectations and the risk attached to them. This advertisement also
reveals the stress one has to go through while taking investment decision. It gives a

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good insight into the investor mind. Moreover, Sachin Tendulkar, being a role
model for the present generation, makes it all more effective.
2. HEALTHY PLANS FOR HEALTHY LIFE

Humor in advertising, if appropriately used can make wonders with the target
audience. The Reliance General Insurance has come up with a hilarious
advertisement where a couple orders a pizza. While ordering they tell the waiter to
eliminate the high calorie ingredients, as the order is served what remains on the
plate are some cut vegetables. The advertisement ends with the narration. If you
can do so much for the health of yours then why not take out a health insurance?

This is a very preliminary introduction to the health insurance products. The health
insurance market is not ripe in India. This advertisement brings out this issue very
lucid.
3. SHELTER-HITTING ON THE BASIC NEED.

Indian Housing Finance Industry is driven by the ever growing housing needs of
the people. Building a house is a life time aim for everybody. With the ever
skyrocketing rates of real estates. Its far-fetched to think of buying a property
without housing finance.
Indian Housing Finance Industry is driven by the ever growing housing needs of
the people. Building a house is a life time aim for everybody. With the ever

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skyrocketing rates of real estates. Its far-fetched to think of buying a property
without housing finance.

In this context, the commercial of LIC HOUSING FINANCE is very appealing. A

son who is settling down in Bangalore is travelling with his parents. He remembers
how difficult it was for his father to educate him and bring him to this level. With
this retrospective thinking, he puts the nameplate with his fathers name to his
house. This reflects the cultural bond between the two generations, which is a
peculiarity of Indian society. It also fosters the image of LIC Housing as a
facilitator for an important milestone in ones life.

4. MAX NEW YORK LIFE IS FOR LIFE.

Indians avoid fear as much as possible and love to have a happy ending. They will
never understand the danger of unprecedented tragedies, believing strongly that
they will happen only to others. MNYL has addressed the same.
An ad of MNYL shows a woman reaching home and enquiring the watchman if her
husband had already arrived as she climbs the stairs in her flat. She rushes inside
and call hi Sanju and doesnt receive any response, she starts worrying and tries
to reach him on mobile only to see that it is ringing below the couch pillow. Panic
stricken she finds her husband in a chair in the terrace with coffee cup overturned
and spilling, she goes behind and nudges him. Her husband, who has been listening
to music since long gets startled. They hug each other with a sigh of relief. It ends
with a thought that Museebatien bataake nahin aati, and hence MNYL is here to
peoples rescue when such unforeseen events happen.
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Though in a bit scary manner, this ad tries to make the viewer understand the illeffects of not having insurance. However, it was given a happy ending so as to give
the viewer a sigh of relief at the end.

5. FUTURE GENERALI INSURANCEEK SHAGUN ZINDAGI KE NAAM

This television commercial of FUTURE GENERALI INSURANCE has come up

with a new idea i.e. EK SHAGUN ZINDAGI KE NAAM where a woman is
preparing for the pooja and her husband asks her for a name for their new house.
The lady says let us complete the pooja then we will decide upon it. She reaches at
the door for pooja and sees her name on the entrance and is overwhelmed with the
love of her family. This advertisement ends with a message that you do so much for
your beloved ones so why not present an insurance policy to them on special
occasions.
6. HDFC-THE KHUDDARI CAMPAIGN
In the face of tough competition, all insurance companies are adopting different
strategies and ideas to differentiate their products.
HDFC LIFE came up with the theme of self-respect. KHUDDARI is something that
has been taken as the genesis of their campaign. They have even taken it to higher
levels by talking about financial independence. The idea behind the campaign was
that an individual should be able to live with dignity at various stages of his life

CHAPTER-8 CREATIVITY IN INSURANCE ADVERTISING

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The Insurance market is typically overcrowded and ambiguous to an extent. There

is a major overlap of various products and hence, it is difficult to identify the
boundaries of products of various product offerings. Here is the analysis of the
advertisements of various Insurance Companies.
Different insurance companies have adopted different promotion policies to market
the variety of products they offer. The first step to touch the hearts of people is to
adopt a creative strategy in advertising. The success or failure of a message
depends on the marketers creativity and on the psychological make-up of the
prospects and their requirements. The insurance companies have adopted creative
strategies to educate and train people to help them understand the concepts behind
their products better.
Insurance Industry is booming. When the customer seeks protection of insurance,
he does not bargain. Companies need to build trust and complete confidence in the
minds of potential customers in order to expand their business. Insurance
Companies have realized that in order to beat the competition advertising can
become a crucial weapon and can help them achieve their objective.

Here are some of the examples which clearly focus on the creativity in the
advertisements of different insurance companies..

AVIVA LIFE INSURANCE CO-KAL PAR CONTROL

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Aviva Life Insurance co. has a customer base of 35 million and operates in more
than 25 countries. Its campaign is KAL PAR CONTROL. The company care
focus areas is on TAX BENEFITS GUARANTEE ON MATURITY AND
SECURITY AFTER DEATH.
In life insurance the insured is required to pay premium which is considered as an
Investment. AVIVA shows this investment plan in its print advertisement.
AVIVA INDIA that has signed up the cricketing legend SACHIN TENDULKAR as
its brand ambassador believes that it shares values like commitment, honesty,
forward thinking, security and trust typically associated with the cricketer. Sachin
is all time favorite across all age groups, as he can easily capture the attention of
the target audience in India. Moreover, the company has launched their new plan
LITTLE MASTER which is also endorsed by sachin.

IIFCO-TOKIO- THE LIFE YOU DESERVE.

IIFCO-TOKIO does its advertising through pamphlets that educate people about
various plans the company offers like safeguards against house breaking and
robbery, protection foe office and automobiles, etc.
It contacts people personally and emphasizes upon the complete peace of mind that
their insurance plans offers: We have made every effort to make our policies and
procedure simple, transparent and customer friendly to give you THE LIFE YOU
DESERVE.
LIC-ZINDAGI KE SAATH BHI, ZINDAGI KE BAD BHI
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LIC also emphasizes on the emotions through all its campaigns. Its messages in
the commercials like ZINDAGI KE SAATH BHI, ZINDAGI KE BAD BHI.,
TO SERVE WITH LOVE, WE KNOW INDIA BETTER attract Indian
customers by influencing their sentiments
ICICI PRUDENTIAL- Mr. Chintaman
ICICI PRUDENTIAL has come with an another creative idea of promoting
through animated advertisements and trying to influence the viewer through their
new brand ambassador Mr. Chintamani.
BIRLA SUN LIFE INSURANCE- EASY INSURANCE
BIRLA SUN LIFE has come up with a noble concept which stresses on the fact
that it is much more easier to get life insurance than arranging your daughters
wedding. It requires no medical test and other time consuming formalities and the
advertisement ends with a message LIFE INSURANCE FATAFAT.
MAX NEWYORK LIFE INSURANCE

The emotional trend is also witnessed in MAX NEW YORK LIFES print
commercial like YOUR PARTNER FOR LIFE, SECURE YOUR CHILDS
FUTURE, BENEFITS OF A BETTER LIFE AT LOW COST

SAHARA INDIA LIFE INSURANCE

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This television commercial has come up with a new and humors concept that after
getting his life insured from SAHARS LIFE, a person is so self confident that he
does not even fear GABBAR SINGH and calls him confidently in a very casual
manner. This ad ends with a tag line ATMA VISHWAS KI NAYI TAKAT

CHAPTER-9 LIC V/S PRIVATE PLAYERS

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According to a survey conducted by a leading marketing research firm, ORG

Marg, brand awareness of private insurers in India was increasing in the early 21st
century.

The difference in the level of awareness of these new players as

compared to the hitherto monopoly of LIC was decreasing fast because of the
aggressive advertising measures adopted by private insurers. The new companies
focused their campaigns primarily on building an image of trustworthiness and
reliability for themselves. Secondly, their advertisements focused on insurance as
an investment option and not a mere tax saving tool another first for the Indian
market. Most of these advertisements carried messages like the familys happiness,
human bonding, etc., with underlying emphasis on the security that insurance
could provide. Also, instead of projecting the idea, that an insurance policy actually
starts working only after the death of the insured, the new campaigns projected that
insurance protects people throughout their lives.

Various insurance ads:

In one of its TV commercials, ICICI Prudential showed a series of scenes

depicting the childhood, marriage and old age of an individual. The purpose of
using these visuals was to translate the companys message I will protect into
real-life incidents. In order to project its commitment towards consumers to
protect at every stage of life, the company brought in the concept of sindoor,
which symbolizes protection.

Sindoor was shown throughout the commercial as a mark of auspiciousness and

protection, and at the end, it became the red line below the ICICI Prudential logo.
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Max New York also resorted to depicting positive emotions such as trust and
protection in its print advertisements. The company released two print
advertisements.

While one of them carried an image of the revered deity Goddess Durga, the other
projected three teenagers standing together, with their faces painted green, white
and saffron like the Indian national flag. Reportedly, Max New York wanted to
convey the message that insurance is your partner for your life. In addition to
such TV commercials, the private insurance companies were trying to make their
presence felt by organizing blood donation camps, contests and sponsoring various
events social events through their agents.

ING Vysya tied up with leading US-based Columbia Pictures Indian arm to carry
out promotional activities using the blockbuster English movie Spiderman. In the
metros, ING Vysya distributed free movie tickets to its customers. The latter also
organized the Green Mumbai Drive and several blood donation camps in
association with the Red Cross, besides sponsoring the action replay of the IndiaWest Indies cricket match series in May 2002 and also in November 2002.

Om Kotak and Birla Sun Life took to sponsoring events in a major way, to attract
prospective customers. Om Kotak initially highlighted in its advertisements the
credibility and trustworthiness of individual partners (Old Mutual & Kotak
Mahindra) through its generic campaigns.

The TV commercials featured men and women meeting themselves in the future
happy, healthy and secure, thanks to insurance. Allianz Bajaj went a step ahead.
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Apart from bringing out TV commercials and putting up hoarding and billboards, it
entered into a two-month long contract with Shoppers Stop. According to the
contract, every Shoppers Stop outlet had an Allianz Bajaj kiosk that provided
information about policies in order to attract customers.

Allianz Bajajs entire communication package included print advertisements,

outdoor media campaigns and direct marketing methods. All its print
advertisements carried a visual of human hands, which symbolized partnership
and care to stress on the concept of care.

Similarly, Tata AIG entered into an agreement with Westside to set up information
kiosks in all its outlets in order to attract peoples attention. Also, Tata AIG was
one of the first insurance companies to adopt the celebrity endorsement
strategy. Tata AIG chose the Hindi movie star, Naseeruddin Shah, as its brand
ambassador for endorsing its personal accidental death insurance policy.

In

addition to all the above, private players in the insurance sector charted out various
innovative marketing plans to establish their products. For instance, ICICI
Prudential launched the TruLife Club for its high-value policyholders as part of
its marketing strategy. Through TruLife Club, the company offered a wide range of
health-related products, health and fitness equipment and membership in gyms,
health resorts and clinics in India. Policyholders with a sum assured of Rs 0.5
million or more were included into this club.

Another interesting development was regarding the punch lines used by private
insurance players that invariably tried to associate positive emotions with
insurance products. While ING Vysya said Adding life to insurance, ICICI
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Prudential said, We cover you at every step in life. Similarly, HDFC Standard
advertisements projected a happy man asserting; Now I can continue enjoying a
comfortable lifestyle even after I retire. Om Kotak highlighted its campaigns with
Jeene ki azaadi (Freedom to live) and Allianz Bajaj stated Allianz Bajaj, Life
insured by care. LIC came out with a corporate advertisement on TV with the
punch line, Zindagi Tumhari Roshan Rahe (May your life be glorious).

LIC V/S ICICI PRUDENTIAL

With private players paying much attention to advertising and promotional

activities, LIC, too, was forced to make efforts to increase its visibility and enhance
its brand image. The company commenced intense, systematic and well-focused
public relations and publicity activities both at the corporate and operational levels.

LIC upped its advertisement spend to tackle competition and succeeded in forging
way ahead. LIC has advertised in satellite channels as well as terrestrial channels.
LIC has to reach out to non-resident India policy holders as well as its other
corporate customers who are based abroad. ICICI Prudential has advertised on
several channels from the Star TV bouquet, Zee Network and Sony. The company
has spent about Rs 50 million on TV advertising last year. With the geographical
expansion, TV became a viable medium and the corporate campaign for ICICI
Prudential Life was run on TV, because the medium lends itself well to an
emotional type of films that strike a chord with the audience. Product advertising,
which needs to impart information, was largely done through print and outdoor
channels, as these are appropriate for rational type of messages, ICICI Prudential

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Life Insurance campaign was short-listed as one of the 12 most effective
campaigns for the year 2001 in the EFFIE awards.

According to an ORG MARG study, the ICICI Prudential brand name and
advertising had the highest recall amongst all private players, and was only
marginally behind LIC. ICICI Prudential Life was awarded the INDYs Award for
Excellence in Mass Communication in the category of Most Creative
Advertisement-Television.

ICICI Prudential Life Insurance reviews its media biz

ICICI Prudential Life Insurance is reviewing its media planning and buying
account. Two media agencies Lodestar and Carat India have already met the
client, according to industry sources.

The media planning and buying for TV and print is currently handled by Initiative
Media. The outdoor media buying is handled by Ogilvy Landscapes. The creative
account is handled by Lowe.Confirming the development, ICICI Prudential Life
Insurance marketing manager Abhishek Bhatia, said,

We are still in the process of reviewing the agencies and should make a decision
within a few weeks. He clarified that the review is part of the routine exercise.
Going by the latest developments, the incumbent is also expected to be in the fray.

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When short listing agencies to invite for the pitch, we are looking for those
(agencies) which can go beyond tools and techniques in terms of rigorously using
them, and implementing a robust monitoring system (for efficiency in terms of
planning and execution of the plan devised). Also, they should have some expertise
in handling the banking, financial services and insurance category. We would also
be looking at the capability to go beyond TV, outdoor and print, said Bhatia.

Over the last few months, ICICI Prudential has been advertising in outdoor, TV
and press. The company launched a corporate television campaign Saat Phere
which took the emotions and thoughts of initial Sindoor corporate film a few steps
further.

The film highlights the strength of promises that a husband makes to his wife,
through the depiction of everyday situations, and then goes on to emphasize that
ICICI Prudential will stand by the husband to help him fulfill all these promises.
The TV campaign has also been extended to outdoor.

The company has also undertaken press and internet campaigns to inform
customers about benefits of some of its products, particularly retirement solutions,
through the Chintamani campaign, said Bhatia.

After the hugely successful Chintamani (retirement) and Saat Phere (corporate)
campaigns, ICICI Prudential Life Insurance also introduced some innovations in
the category, such as: having a tax planner by the name of Chintamani on radio,
who would answer consumers queries about the role of insurance in financial
planning.
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Other initiatives included tie-up with the Dabbawalla Organization in Mumbai for
a direct marketing exercise, to talk to the customer through a non-cluttered route,
and thereby have a higher impact. The direct mailer was about ICICI Prudentials
retirement solutions and the tax benefits that one can avail of buy investing in any
of these. About 100,000 direct mailers were attached to the dabbas, in areas such
as Churchgate, Bandra and Andheri where there are mostly office-goers, said
Bhatia.

In addition to advertising, the company has also initiated several activities to raise
consumer awareness about life insurance and ICICI Prudential. It includes
seminars - ICICI Prudential regularly holds consumer awareness meets on the
need for retirement planning in different cities such as Pune, Aurangabad,
Coimbatore, Nagpur, Bangalore and Mangalore. These are very well attended and
have contributed significantly towards increasing awareness about the category and
the company. Apart from this, we have also entered into alliances with telecom
companies, as well as companies like BPCL and Dominos, concluded Bhatia.

CHAPTER-10 SLOGANS OF INSURANCE COMPANIES

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LIC
Zindagi ke saath bhi, Zindagi ke baad bhi

Max New York

Your partner for life

ICICI Lombard
Business Uninterrupted

Birla Sunlife
Your dreams, our commitment

ING Vyasya
Adding life to insurance

ICICI Prudential
We cover you at every step in life.

Aviva
Kal par control

MetLife - Metropolitan Life Insurance Company

Have you met life today?
Get Met. It Pays.
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AXA Insurance

AXA. Be life confident.

Go Ahead. You Can Rely on Us.

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